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May 2017
World Trends and Technology for Offshore Oil and Gas Operations
International
E&P report
Subsea
business models
Managed
pressure drilling
P&A in North Sea HP/HT equipment
OSV/PSV update
E : rds r
o e
S ID rec ost
p
IN ater pts
e pw nce
De d co
an
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1705OFF_C2 2 4/11/17 4:09 PM
experience talks -
ingenuity whispers
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International Edition
Volume 77, Number 5
May 2017
CONTENTS
Celebrating 60 Years of Trends, Tools, and Technology
UPSTREAM INVESTMENT DRILLING & COMPLETION

Evolving business models, concepts Managed pressure drilling helps
will drive offshore recovery .................................................... 30 address narrow pressure window .......................................... 48
The market downturn of the past two years has had a profound impact Narrow pressure windows are increasingly common when drilling in
across all aspects of the oilfield services and equipment sector, but the mature deepwater fields, posing a formidable challenge. This condition
deepest and longest lasting impact will ultimately be felt offshore. is characterized by a small difference between the pore pressure the
fluid pressure inside rock pores pushing out and the fracture gradient
Facility maintenance, modification market the fluid pressure needed outside the rock to fracture it.
set to rebound in 2018............................................................. 36
The offshore oil and gas industry has fallen on tough times since 2014, New drill bit designs aim to enhance efficiency .................... 50
however, market sentiments appear to be improving on the back of the Downhole service firms and drill bit manufacturers are continuing to
coordinated OPEC and non-OPEC production cuts. develop new products and technologies that can help operators and
drillers improve efficiency, even as the market downturn has slowed
INTERNATIONAL E&P REPORT drilling activity.
Gulf operators re-engineer projects

for lower price environment.................................................... 38 ENGINEERING, CONSTRUCTION,
E&P activity in the US Gulf of Mexico continues to be plagued with & INSTALLATION
uncertainty, even though oil prices seem to have stabilized around Integrated milling, underreaming approach
$50/bbl. That price environment has in turn engendered an economic streamlines P&A operations in the North Sea ........................ 52
climate in which operators and developers continue to be cautious. While operators accept that well abandonment is a necessary and in-
evitable stage of the asset lifecycle, they also want to ensure that every
African E&P recovers its footing after oil price crisis ............ 40 well is P&Ad as quickly, cost effectively, and safely as possible.
Even prior to the oil price crisis, the stability of Africas offshore oil and
gas industry had started to show some seams. As the cost of offshore Deepwater production outlook
projects began spiraling globally, the scale and complexity of the offers both challenges and opportunities .............................. 55
already expensive projects off the continents coastlines had become The production of oil and gas in deepwater appears to have rebounded
increasingly untenable. slightly in 2016 from its nadir in 2014. Unlike onshore production,
however, momentum for increasing the fleet of floating production units
North Sea cost measures paying off, is not immediate.
new players emerging following asset deals ......................... 42
Prospects for new projects are brighter across northwest Europe, and PRODUCTION OPERATIONS
two main factors are steering this development. One is the North Sea
industrys success in driving costs down, and the other is the recent Offshore supply vessel owners facing tough market ............ 57
surge in merger and acquisition activity. Over a period of 70 years, the offshore supply vessel (OSV) industry
has grown and evolved to meet the needs of ever-more challenging
Major projects approaching start-up offshore oil fields. But the cyclical nature of the oil and gas industry
in shallow and deepwater ....................................................... 43 generates a repeated succession of boom and bust business cycles,
During 2014-16, the Middle East was the only part of the world to which periodically roil the OSV industry.
weather the oil price shock, according to Bassam Fattouh, Director of
the Oxford Institute for Energy Studies. Fattouh, speaking at IP Week in SUBSEA
London, pointed out that capex for projects across the region declined
Subsea industry can learn
only nominally during this period.
from vessel classification to improve safety.......................... 60
While establishing classification requirements for subsea equipment is
Operators advancing major projects across Asia/Pacific...... 44 not imperative, following a systematic method that parallels vessel clas-
Several offshore projects that were sanctioned before the market
sification could produce guidelines that establish a similarly uniform
downturn have reached or are nearing first production throughout Asia
approach to design and fabrication that is safe, productive, and efficient
and Australia. The Ichthys LNG project off Western Australia, which is
for the offshore industry.
essentially three mega projects in one, is scheduled to start production
by the end of September.
Higher-pressure hoses broaden intervention options ........... 62
New technology developments are making deepwater reservoirs poten-
E&P activity heats up throughout Latin America ................... 46 tially viable that were previously considered inaccessible.
As the industry recovers from the downturn, operators are advanc-
ing exploration, development, and production projects across Latin
America, especially frontier areas.
Offshore (ISSN 0030-0608). Offshore is published 12 times a year, monthly, by PennWell Corporation, 1421 S. Sheridan, Tulsa, OK 74112. Periodicals postage paid at Tulsa, OK 74112 and at
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2017. All rights reserved. Reproduction in whole or in part without permission is prohibited. Permission, however, is granted for employees of corporations licensed under the Annual Authoriza-
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1705OFF_2 2 4/11/17 4:05 PM

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International Edition Volume 77, Number 5 May 2017
COVER: Several offshore projects that

were sanctioned before the market down-
turn have reached or are nearing first
production throughout the Asia/Pacific re-
gion. Shell has started oil production from
its Malikai TLP (cover), stationed in 500 m
(1,640 ft) of water, 100 km (62 mi) offshore
Sabah. The platform is designed to handle
up to 60,000 b/d of oil. Production is sent
50 km (31 mi) away to the Kebabangan
oil hub for processing before evacuation
INSTRUCTOR - Led to the onshore Sabah Oil & Gas Terminal.
Malikai is the first deepwater TLP offshore
COURSES Malaysia and the first Shell TLP outside of
IADC WellSharp the Gulf of Mexico. According to Shell, the
project features a cost-effective platform
Drilling/Workover design and a unique, industry-first set of
IADC WellCAP risers, or pipes that connect the platform
to the wells for oil production, which
Workover/Well Servicing required fewer drilling materials and lower
IWCF Drilling costs. (Photo courtesy Shell)
NOIA SUPPLEMENT
- Learning Policy changes in Washington provide basis for optimistic outlook........................ 64
COURSES Has the offshore industry found its Trump card? ..................................................... 66
NOIA represents all phases of offshore energy ......................................................... 67
IADC WellSharp NOIA board of directors and executive committee ................................................... 68
Drilling Operations
NOIA membership ....................................................................................................... 70
IADC WellCAP
Workover/Well Servicing FRANCE SUPPLEMENT
IWCF Drilling Level 2 Oil and gas association adapting to emerging energy priorities.............................. 74
WCS Certified Drilling Eiffage Mtal focuses on renewables ........................................................................ 75
Glycol regeneration technique limits flaring of gas at Culzean ............................... 76
WCS Basic Rig Math
Deepwater intake risers adapted for topsides needs on floating systems.............. 78
BV, Dassault progress digitization ............................................................................. 79
Bourbon adapts platform supply vessels for pipelay campaign offshore Gabon .... 80
New acquisition boosts Air Liquides offshore offerings .......................................... 82
EQUIPMENT & ENGINEERING

Dril-Quip selected for two OTC Spotlight awards ..................................................... 83
Low flow filter developed for deepwater well abandonment ................................... 83
Register today:
D E P A R T M E N T S
www.wellcontrol.com
Online .................................................... 6 Vessels, Rigs, & Surface Systems ...... 22
FOLLOW US
Comment ............................................... 8 Drilling & Production .......................... 24
TM Data ..................................................... 10 Geosciences ........................................ 26
Global E&P .......................................... 12 Regulatory Perspectives..................... 28
+1.713.849.7400 Offshore Europe .................................. 16 Business Briefs ................................... 84
www.wellcontrol.com Gulf of Mexico ..................................... 18 Advertisers Index............................... 87
Subsea Systems ................................. 20 Beyond the Horizon ............................ 88
4 Offshore May 2017 www.offshore-mag.com
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Available at
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Offshore-mag.com
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EDITOR ASSISTANT EDITOR The latest news is posted daily for the offshore oil and gas industry covering
Sarah Parker Musarra Jessica Tippee technology, companies, personnel moves, and products.
smusarra@pennwell.com jessicat@pennwell.com
EDITOR-EUROPE POSTER EDITOR

Jeremy Beckman E. Kurt Albaugh, P.E. New on-demand webcast
jeremyb@pennwell.com Kurt.albaugh@yahoo.com
Assessing the Impact of New Drilling Safety Rule
ART DIRECTOR The Bureau of Safety and Environmental Enforcement has published its final
Josh Troutman drilling safety rule to address a range of systems and equipment related to well
PRODUCTION MANAGER control operations. However, the new offshore drilling regulations designed to
Kimberlee Smith ksmith@pennwell.com improve the reliability of equipment may bring more downtime, increased costs,
MARKETING MANAGER and significantly more operator requirements for training and inspections. While
Myla Lowrance mylal@pennwell.com the full set of regulations will be phased in over a few years, many industry experts
AUDIENCE DEVELOPMENT MANAGER feel it is still too prescriptive and challenging to implement and too expensive.
Jesse Fyler jessef@pennwell.com Can the industry implement the new rule by the deadline and will the regulations
have the desired effect? In this webcast Chris Scheefer, principal industry advisor,
OFFSHORE EVENTS Capgeminis Oil & Gas, discusses the latest about this new rule and its impact.
David Paganie (Houston) davidp@pennwell.com http://www.offshore-mag.com/webcasts/offshore/2017/03/
Gail Killough (Houston) gailk@pennwell.com
assessing-the-impact-of-the-new-drilling-safety-rule.html
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1705OFF_7 7 4/11/17 4:02 PM
COMMENT David Paganie Houston
Annual global review finds encouraging trends

ARTICLES FOR Offshores annual global review and analysis inside this issue finds a number of en-
couraging trends, including one major offshore region that has maintained steady E&P
DISTRIBUTION activity throughout the downturn. Indeed, all regions have been impacted by the oil price
decline. But during 2014-16, capex for projects across the Middle East region declined
Use published editorial content to
only nominally during this period and did not translate into a fall in activity, writes Jeremy
validate your marketing initiatives.
Beckman, Offshore Editor-Europe. Most of the NOCs, led by Saudi Aramco, have
continued to increase spending year on year, apart from Iraq where the rig count has
been impacted by US shale. Kuwait plans to spend $12 billion on oil and gas field activity
ELECT
TRONIC REPRINTS over the next five years; Abu Dhabi will raise its production to 3.5 MMb/d in 2018, with
HIGH
HIGH-Q
GH-Q
-QUA Y GLO
ALITY GLOSS
SSY
SS HAND
Y HA NDOU
O TS offshore development contributing to most of that growth.
In Saudi Arabia, Aramco is laying the foundations for long-term sustainable oil produc-
ROSS ME
CR MED
DIA MA
MARK IN
NG
RKETIN
RK tion of 12.5 MMb/d, while continuing to develop its gas sector via incremental projects
PERSON
PER SONALI
ALIZED
ZED DIRECT M
MAIL
AIL PR
PRODU
ODUCTS
ODUCTS on very large associated and non-associated gas fields.
Meanwhile, Qatar Petroleum has ended its self-imposed moratorium on the North
LAQ
PLAQ
PL ES & FRAM
AQUE
UES
UE FRAMED
ED PRIINT
PR
R NTS field, announcing plans for a new gas project in the fields southern sector. Work should
begin over the next few months.
Articles are available in Beckmans full Middle East review begins on page 43.
In the US Gulf Mexico, a number of field development projects will move forward this
electronic (pdf) format
year, despite the malaise that continues to hang over the Gulf, writes Bruce Beaubouef,
and professional, high- Offshore Managing Editor. Perhaps most notable is BPs Mad Dog Phase 2 project,
quality prints. which was sanctioned last December. Estimated to cost some $9 billion to develop, the
deepwater Gulf of Mexico project calls for a new floating production platform with the
capacity to produce up to 140,000 b/d of crude oil from up to 14 production wells. Oil
Engage visitors on website production is expected to begin in late 2021. The second Mad Dog platform will be moored
Educate target audience about 6 mi (10 km) southwest of the existing Mad Dog platform, which is located in 4,500
ft (1,372 m) of water.
Enhance email campaigns Elsewhere, Shell and Mitsui (MOEX North America LLC) have announced that they
are moving forward with phase one of their Kaikias project in the deepwater Gulf. The
Instantly credible companies say that Kaikias has a competitive go-forward break-even price below $40/bbl.
conference materials The project will be developed in two phases. The first phase includes three wells tied back
using a single flowline to the nearby Shell-operated Ursa production hub. The wells are
Trusted sales presentations designed to produce up to 40,000 boe/d. Phase one is expected to start production in 2019.
content Beaubouefs complete US GoM report begins on page 38.
Add 3rd party In Latin America, ExxonMobil and its partners continue a string of drilling successes
on Guyanas deepwater block Stabroek, according to Jessica Tippee, Offshore As-
endorsement to social sistant Editor. The latest and third oil discovery, Snoek-1, hit pay similar to the Liza-1
media discovery well to the north. The discovery follows ExxonMobils recent Payara find and
Liza-3s uncovering of a new reservoir on the same block.
Professional recruiting and
Wood Mackenzie says its base case for Liza-Payara is 1.5 Bbbl of oil, while Snoek may
training materials add a further 220-370 MMbbl. The partners have also identified five more prospects on
Branded content marketing the block that they plan to drill through 2018. The three Stabroek discoveries are within
30 km (18.6 mi) of each other, so economies of scale could be achieved if associated
FPSOs and subsea infrastructure were shared.
The partners are taking a phased approach to the areas development. Wood Mackenzie
anticipates two large FPSOs to develop Liza and Payara and a further vessel for Snoek.
For additional information, It has drawn up two scenarios for Snoek: a high case with reserves of 370 MMbbl
please contact produced through a 120,000-b/d FPSO, and a base case of 220 MMbbl with an 80,000
b/d-FPSO.
Foster Printing Service, Tippees full Latin America review begins on page 46.

Meanwhile, Barclays discusses three prevailing themes that are emerging from the
provider for Offshore. industrys efforts to transform offshore operations. These include a movement toward
smaller projects; increasing focus on speed to market; and structurally lower offshore
development costs.
Barclays offshore market outlook begins on page 30.
Call 866.879.9144 or
sales@fosterprinting.com
To respond to articles in Offshore, or to offer articles for publication,
contact the editor by email (davidp@pennwell.com).
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G L O B A L D ATA
GoM recovery US and Mexico offshore investments by oil price sensitivity

likely at $60/bbl
Gulf of Mexico investments halved from 50 Above 80 USD/boe
the 2014 peak to 2016 following the oil 60-80 USD/boe
45
price collapse, as volumes from OPEC and 40-60 USD/boe
shale and tight oil flooded the market. Now 40
USD billion nominal

Below 40 USD/boe
that cost levels in the shale industry have 35 Sanctioned
adjusted to the new price regime, opera-
30 History
tors are accelerating drilling efforts and the
dawn of a new boom. The same effect is 25
about to emerge offshore; cost reductions,
20
standardization and simplification mea-
sures entail attractive breakeven prices, 15
and there are indications of increased 10
willingness to invest down the line.
Rystad Energy forecasts production 5
from US shale and tight oil to double from 0
around 5 MMb/d in 2017, to a remarkable 10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
MMb/d by 2022. Despite this growth from Source: Rystad Energy UCube
shale, and despite assuming 2 MMb/d of
incremental production from OPEC, the
analyst sees room for offshore oil to fill the
gap and meet the growing demand. Worldwide offshore rig count & utilization rate (April 2015 March 2017)
There are already signs of activity pick-
ing up in the Gulf of Mexico. BP and Shell 1,000 100
recently took final investment decisions
Total util % Total supply Total contracted Working
on developing Mad Dog Phase 2 and 900 90
Kaikias, respectively. Next year it expects
Fleet utilization rate %

Shell to greenlight the Vito project and 800 80
Anadarko to go ahead with the Shenan-
No. of rigs
doah and Phobos fields. 700 70

When analyzing sensitivities, the
analyst indicates a modest increase in in- 600 60
vestments over the next five years at $60/
bbl oil prices. When assuming oil prices at 500 50
$80/bbl or more, a new boom is likely.
Lars Lysdahl, 400 40
Senior Project Manager, Rystad Energy
300 30
il 15 15 15 15 15 16 16 16 16 16 16 17
ne g ct ec b il ne g ct ec b
Report finds deepwater pr Au O Fe pr Au O Fe
A Ju D A Ju D
emerging as competitor Source: IHS RigPoint Notes: Rig types included are jackups, semis, and drillships.
to tight oil plays
A leaner and more cost-competitive
deepwater industry is emerging from
the downturn, with the most attractive 1Q 2017 pre-FID deepwater vs. US tight oil
projects now competing with US tight oil
plays, according to Wood Mackenzie. This Q1 2017 pre-FID deepwater Q1 2017 projects with 20% capex cut
Project breakeven (NPV15), US$/boe
year should see a noticeable pick-up in 100

deepwater project sanctions, with three
major projects already fully approved. US tight oil plays, pre-drill
The analyst firm estimates that on aver-
80
age global deepwater project costs have
fallen just over 20% since 2014. Assuming
a 15% internal rate of return hurdle, 5 Bbbl
of pre-sanction deepwater reserves now 60
breakeven at $50/boe or lower.
While the deepwater industry is slowly
getting leaner, it is also getting smaller. 40
More than 70% of the 45 pre-FID projects
targeting sanction over the next few years
are operated by just eight companies 20
0 5 10 15 20 25 30 35
Brazils Petrobras and the seven majors
(ExxonMobil, Chevron, Shell, BP, Total, Total resource (billion boe)
Eni, and Statoil). Source: Wood Mackenzie. Note both tight oil and deepwater breakevens are run on a NPV basis,
which we believe is an industry standard screen criteria
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GLOBAL E&P Jeremy Beckman London
Gulf of Mexico operator Kosmos Energy. The location is 40 production capacity is 150,000 b/d of liquids
Eni has drilled the first well by an inter- km (25 mi) west of the Teranga discovery and 350 MMcf/d of gas,
national major in Mexican waters since the this is the first of multiple wells Kosmos and
countrys 2013 Energy Reform process. The new partner BP plan to drill in a continuous Odfjell Drilling has a conditional letter of
well, designed to appraise the shallow-water campaign offshore Senegal and Mauritania award from a major oil company to drill a well
Amoca discovery, intersected 110 m (361 to the north. offshore South Africa next year, using the
ft) of net oil pay from Pliocene sandstones, Elsewhere in Senegalese waters, the drill- semisubmersible Deepsea Stavanger.
some from a deeper, previously undrilled ship Stena DrillMAX has encountered oil with
horizon. Eni plans to follow up with further the VR-1 well, designed to appraise reservoir Caspian Sea
delineation wells on Amoca and the Miztn compartments on the west flank of Cairn En- Lukoil has completed the first dual-lateral, and
and Tecoalli fields ahead of a phased, fasttrack ergys deepwater SNE oil field and to examine fourth development well, at its V.Filanovsky field
development. deeper Aptian carbonate targets. in the Russian sector. This will deliver higher
Chevron and partners PEMEX and INPEX productivity than the three previous single-bore
have started exploration on deepwater block
3, awarded under last years bid round, after
signing a contract with Mexicos National
Hydrocarbons Commission. BHP Billiton
and PEMEX have done the same for blocks
AE-0092 and AE-0093, containing the giant
deepwater oil discovery Trion.

The Bahamian government has granted
Bahamas Petroleum Co. (BPC) a 12-month
extension to four offshore licenses south of
the islands. This will give BPC until 2Q 2018
to conclude funding discussions and other
preparations for a first exploratory well.
South America
The Dominican Republic is inviting propos-
als for a multi-client 2D seismic survey over
its territorial waters. Recently the government The newly onstream Moho Nord TLP/FPU. (Courtesy Total)
opened the countrys National Hydrocarbon
Database, compiled by Schlumberger, which Total has started production from the Moho designs, the company said. Work on the fifth
contains around 19,000 km (11,806 mi) of Nord deepwater project, 75 km (46.6 mi) off well, also a dual-lateral, got under way in March.
local seismic data acquired over the past five the coast of Republic of Congo. This involves
decades. drilling of 34 wells tied back to a new tension The quarters and utilities platform jacket
leg platform and to Likouf, a new floating pro- for the Shah Deniz 2 project in the Azeri sector
Anadarkos recent deepwater Purple An- duction unit. All oil is processed on the FPU should have been installed, following its jour-
gel-1 well in the deepwater Caribbean Sea and exported by pipeline to the Djeno termi- ney onboard the STB-1 barge from the Heydar
off Colombia has proven gas, according to nal onshore. All-electric systems optimize the Aliyev Baku Deepwater Jackets Factory. The
partner Ecopetrol. The location was close to power needed to run the installations, and all 12,084-metric ton (13,320-ton), 105-m (344-ft)
the two companies 2015 Kronos discovery produced water is re-injected into the reservoir. tall jacket will rest in 95 m (312 ft) of water.
based on results from the two wells, Ecopetrol Shah Deniz 2 operator BP said the project
estimates that Kronos has a gas column of at Erin Energy has contracted Pacific Drill- was now around 90% complete.
least 520 m (1,706 ft). The drillship Bolette ings drillship Pacific Bora to drill the Oyo-9
Dolphin, under contract with Anadarko until well next month on the deepwater Oyo field Mediterranean Sea
mid-2018, is due to drill at least four more off Nigeria, followed potentially by wells on Rockhopper has opened international ar-
wells in Caribbean waters. two more prospects in Miocene horizons. bitration proceedings against Italys govern-
Panoro Energy says proposals for a gas ment. This follows last years decision by the
Premier Oil has revised pre-first oil capex development at the deepwater Aje field in Ministry of Economic Development not to
for Phase 1 of the Sea Lion development in Nigerias OML 113 license the field cur- award a production concession covering the
the offshore North Falkland basin from $1.8 rently produces oil should go forward for Ombrina Mare oil field in the Adriatic Sea.
billion to $1.5 billion. Savings were achieved regulatory approval by mid-year. Rockhopper is looking to obtain damages and
in part by optimizing the subsea layout of the compensation claiming the action as a breach
planned single drill center, while anticipated Cabinda Gulf Oil Co. has produced first oil of the Energy Charter, which Italy adheres to
operating costs have fallen to $15/bbl follow- and gas from the Mafumeira Sul development as a member of the European Union.
ing work on transportation and shuttle tanker in block O, 24 km (15 mi) offshore Angolas
arrangements. Cabinda province in 60 m (200 ft) of water. Eni has formally agreed to farm into 50% of
This is the second-phase development of the block 11 offshore Cyprus, operated by Total.
West Africa Mafumeira field, involving the addition of a The block, awarded in 2013, covers 2,215 sq km
The drillship Atwood Achiever has spudded central processing facility, two wellhead plat- (855 sq mi) south of the island Eni expects
an exploration well on the Yakaar prospect on forms, 34 producer and 16 water injector wells, the first exploration well to spud later this year.
Senegals Cayar Offshore Profond block for and 121 km (75 mi) of subsea pipelines. The
1705OFF_12 12 4/11/17 4:02 PM

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1705OFF_13 13 4/11/17 4:02 PM

GLOBAL E&P
Asia/Pacific
Total will take a 50% share from PTTEP in the
deepwater MD-7 project in the Gulf of Moattama
off Myanmar, subject to government approval.
PTTEPs CEO Somporn Vongvutjipornchai said
Total had greater experience in deepwater and
would therefore help advance activity more ef-
fectively. The block, awarded in 2013, has been
undergoing 3D seismic evaluation.

Reports suggest Singapore-based KrisEn-
ergy will sign a revised production-sharing
contract with Cambodia to develop offshore
block A, containing the Apsara oil field. This
is the countrys sole commercial discovery
to date: KrisEnergy holds 95% of the block,
with Mitsui Oil and GS Energy agreeing to
exit the concession last October.

Energeans blocks offshore Montenegro. (Courtesy Energean)
Hoang Long Joint Operating Co. has resumed
Montenegros government has awarded En- sentatives from various ministries to deliver development drilling at the TGT field in the Cuu
ergean Oil & Gas an exploration and production an accord for the associated onshore LNG Long basin offshore southern Vietnam. The
concession contract for offshore blocks 4219-26 project. Once this and the legal framework jackup PVD VI has been drilling the TGT-H1-30P
and 4218-30. These are in water depths of 50- have been finalized, development can move well from the HI wellhead platform, targeting
100 m (164-328 ft) close to the coast and near forward. The partners in the two blocks are Miocene and Oligocene reservoir horizons. It
the town of Bar. Energean, which believes the working to complete pre-front-end engineer- was then due to transfer to the H5 wellhead
geology is similar to western Greece to the south ing design ahead of an investment decision. platform to drill two further wells.
where it is pursuing the offshore West Katakolo
development, will acquire 3D seismic and drill ExxonMobil will pay $2.8 billion in cash un- Saipems Karimum yard in Tanjung Balai
one well during the initial seven-year period. der an arrangement that will give the company Karimun, Indonesia, has held a naming cer-
25% of Mozambiques deepwater Area 4 block, emony for the new floating production unit
Israels Petroleum Commissioner has ap- operated by Eni, pending regulatory approvals. Jangkrik. The vessel was then due to head to
proved Noble Energys request to batch-drill Thereafter, Eni will continue to lead the Coral the Muara Bakau concession in the Kutei basin
the seventh development well for the deepwater floating LNG project, with ExxonMobil manag- in the Makassar Strait, for installation at the
Leviathan field with the Leviathan-5 well, to ing construction and operation of the onshore Jangkrik complex, operated by Eni. The FPU
streamline drilling costs. The ultra-deepwater gas liquefaction facilities. Area 4 contains esti- can process and export 450 MMcf/d of gas
drillship Atwood Advantage was due to spud Le- mated proven resources of 85 tcf. and will be connected to 10 deepwater subsea
viathan-7 after completing a well on the Tamar Anadarko, the other major deepwater operator wells, with production exported through a new
field, targeting Oligo-Miocene layers. off Mozambique, recently submitted a develop- 79-km (49-mi) pipeline to onshore reception
ment plan to the government for the Golfinho/ facilities for onward delivery to the Bontang
Middle East Atum discoveries, which it plans to connect to its LNG plant. There are numerous other gas
Saudi Aramco has contracted NPCC in Abu proposed Mozambique LNG project. discoveries nearby that can be tied in in due
Dhabi to build and install 17 platform jackets, course, Eni added.
nine for the Berri field and eight for the Marjan India
field. Work on the order, due to start by year-end, ONGC has awarded L&T Hydrocarbon Brunei Shell Petroleum (BSP) has commis-
falls under the scope of a long-term agreement Engineering a $245-million EPCIC contract for sioned Amec Foster Wheeler to revitalize its
that the two parties signed last October concern- the redevelopment of the Neelam field in the assets in Brunei, including oil and gas facilities
ing future new platforms offshore Saudi Arabia. Heera-Panna block in Mumbai Offshore, and in the South China Sea. The contract, which
Aramco also has signed a memorandum of the B173AC development, both off western runs initially for five years, includes provision
understanding with McDermott International India. The scope includes a new process plat- of conceptual studies, FEED, detailed design,
concerning the new maritime facility Aramco form with gas processing and compression, construction and fabrication management.
is developing. McDermott plans to construct a three new wellhead platforms, modifications Amec Foster Wheeler plans to transfer the
new fabrication facility at Ras Al Khair, which to 11 existing platforms, and installation of a More 4 Less lean engineering methodology
will gradually take on work currently handled 32-km (20-mi) subsea pipeline. it has applied in the North Sea to cut costs of
by the contractors Jebel Ali site in the UAE. In addition, ONGC has committed to three mature oil field projects.
further field developments in the area. One is
East Africa the marginal 1991 B-147 discovery, 110 km (68 New Zealands Energy and Resources Min-
Tanzanias government has decided to in- mi) from Mumbai, which the company says has istry has opened the countrys Block Offer
tervene to advance preparations for the coun- become economic thanks to the emergence of 2017 tender for petroleum exploration permits.
trys first deepwater gas field developments. new infrastructure in the area. ONGC will com- These include five offshore release areas and
According to Ophir Energy, a partner to Shell mission a new four-slot wellhead platform and one offshore/onshore release area, and takes
in offshore blocks 1 and 4, the government an initial three wells, with produced oil and gas in acreage totalling 481,735 sq km (186,000 sq
has formed a negotiating team with represent to onshore terminals at Uran and Hazira. mi). Closing date for bids is Sept. 6.
1705OFF_14 14 4/11/17 4:02 PM

1705OFF_15 15 4/11/17 4:02 PM
OFFSHORE EUROPE Jeremy Beckman London
well on its Gohta discovery in the Barents Sea, 185 km (115 mi)
northwest of Hammerfest, using the semisubmersible Leiv Eiriksson.
However, the countrys Petroleum Safety Authority was first seeking
assurances from Lundin on its planned application of a relatively new
managed pressure drilling technique involving use of the Controlled
Mud Level method. The associated, heavier equipment necessitates dif-
ferent operational procedures and therefore stricter risk assessments.
OGA awards frontier blocks

Britains Oil & Gas Authority (OGA) has offered 25 licenses to a total
of 17 companies under the 29th Offshore Licensing Round. This was
the UKs first round in two decades to focus on little-explored frontier
areas of the Rockall basin offshore western Scotland, the East Shetland
Platform in the UK northern North Sea, and the Mid-North Sea High.
Bids were in part based on new geophysical data resulting from the 2015
government-funded seismic acquisition campaign over some of the areas,
The Njord area redevelopment. (Courtesy Statoil)
and the license commitments include firm wells and in certain cases
targeting of new exploration plays. OGA expects to launch the much
Njord, Sverdrup set for expansion more extensive 30th Offshore Licensing Round later this spring, while
Statoil is spearheading two major new field expansion programs in further new government-funded seismic data offshore southwest Britain
the Norwegian sector. One is a proposed redevelopment of Njord in and the East Shetland Platform should be available to the industry by 4Q.
the Norwegian Sea to accommodate production from other discoveries Among the successful bidders to comment on their awards, Statoil
in the area. The other involves adding an extra processing platform gained five operated licenses in the UK northern North Sea, with the
to the Johan Sverdrup complex in the North Sea. company and partner BP committing to three firm exploration wells.
Njord, which original operator Norsk Hydro brought onstream in It will also join ExxonMobil in a license in Rockall. London-based The
1997, was taken offline last year to allow the fields semisubmersible Steam Oil Production Co., which has been looking to drum up indus-
platform to sail to Stord in Norway. Statoil has awarded the yards owner try interest in steam flooding to improve recovery from UK offshore
Kvaerner a $590-million contract for reinforcements and upgrades to heavy-oil accumulations, gained four blocks around the Pilot field.
the hull and topsides, with Aker Solution performing related design
engineering. The remodeled facility is due to return to the Njord loca-
tion in spring 2020, ready for a further two decades in service, and Night view
the Njord FSO is also undergoing life extension work at Kristiansund. of Tyra East platform.
The changes should allow Statoil to recover an additional 175 MMboe (Courtesy Maersk Oil)
from Njord and the satellite Hyme field, and to accommodate production
from Statoils 73-MMboe Bauge (ex-Snilehorn) field, 15 km (9 mi) to the
northeast, where the company plans the first application of Cap-X, a lower-
cost subsea production system. Bauge will require two oil production
wells and one water injector, with a pipeline to Njord and an umbilical
to Hyme, while the fields gas will be routed via the sgard Transport
System trunkline. In addition, provision will be made for a tie-in to the
platform of VNGs Pil discovery south of Njord. Statoils partner ENGIE
E&P Norge estimates the overall cost of the program at $2.32 billion.
At Johan Sverdrup, the commitment to another platform under a
Phase 2 development represents decision gate 2 of the project, with a
formal plan due to be submitted to the Norwegian authorities in the
second half of 2018. Aker Solutions is working on front-end engineer- DUC wins government
ing design (FEED) for the new facility and the connecting bridge to backing for Tyra overhaul
the Phase 1 riser platform, with Kvaerner managing the FEED for the Denmarks government has reached agreement with Maersk Oil, as
jacket. Under a third contract, Siemens is assessing arrangements for leader of the Danish Underground Consortium (DUC), on safeguarding
power supply from the shore that would also extend to other field centers the future of production from the Tyra field in the North Sea. Maersk had
in the Utsira High region, in line with the Norwegian governments warned that due to progressive subsidence of the fields chalk reservoir,
stipulation. This scheme should be operational in 2022, three years the platforms had sunk into the seabed by around 5 m (16.4 ft) over the
after start-up of Sverdrup Phase 1. Expansion of the complex will allow last 30 years, reducing the gap between the sea and the platform decks.
Statoil to add a further 29 wells, tying in production in stages from the Without approval for a full-field redevelopment, operations would have had
Avaldsnes (east), Kvitsoy (south), and Geitungen (north) satellite areas. to soon close down for good, with an attendant impact on production from
other Danish offshore fields which is routed through the Tyra complex.
Norway extends licensing farther north Maersk and its DUC partners plan a full redevelopment of the current
The Norwegian Energy Ministry is looking to offer 102 blocks infrastructure which comprises the gas processing hub and five satellite
under Norways 24th licensing round, including a record haul of 93 fields. The new facilities could also extend production of oil and gas
blocks in the Barents Sea, along with nine in the Norwegian Sea. More from the DUCs license area and allow tie-ins from various third-party
than half of the Barents Sea blocks are thought to be north of OMVs projects. This in turn should help protect Danish jobs, particularly
Wisting, the countrys northernmost oil discovery to date. The round around Esbjerg, the countrys offshore construction and logistics center.
is due to be formally launched by the end of June. Pending investment and Daaish parliamentary approval, Tyra will
Lundin Petroleum should by now have spudded its latest appraisal likely shut down in December 2019 and re-open in March 2022.
1705OFF_16 16 4/11/17 4:02 PM

Same Looks,
New Limits
Heerema Marine Contractors (HMC) is proud to introduce its new Semi-Submersible
Crane Vessel Sleipnir. Named after Odins eight-legged horse, known for its strength,
courage and speed, Sleipnir will enable HMC to support its clients within the
international Oil & Gas and Renewables market.
The new vessel has been specifically designed for the installation and/or removal of all
kinds of structures, whether these are small structures, complex field installations, or
fully integrated lifts. Sleipnir will become operational in 2019.
Sleipnir is an evolution of HMCs proven lifting concept introduced more than 40 years
ago. The vessel will be equipped with two fully revolving cranes of 10,000 tonnes each,
with the highest possible offshore operability. Sleipnir will also be the greenest vessel
in its class with, among other features, a dual fuel engine system, NOx reduction, re-use
of thermal energy, and LED lighting.
1705OFF_17 17 4/11/17 4:02 PM

GULF OF MEXICO Bruce Beaubouef Houston
With Lease Sale 247, the BOEM offered 9,118 unleased blocks, covering 48 million acres offshore Louisiana, Mississippi, and Alabama. (Courtesy Bureau
of Ocean Energy Management)
Lease Sale 247 yields more than $274 million in high bids
The Bureau of Ocean Energy Management (BOEM) reports that Talos Energy Offshore LLC submitted six high bids totaling
Lease Sale 247 garnered $274,797,434 in high bids for 163 tracts $2,319,000.
covering 913,542 acres in the Central Gulf of Mexico planning area. Red Willow Offshore, LLC submitted six high bids totaling
Twenty-eight offshore oil and gas companies submitted 189 bids. $1,489,454.
The sum of all bids received totaled $315,303,884. Each bid will go through a 90-day evaluation process to ensure the
Shell Offshore Inc. submitted 20 high bids totaling $55,856,380. Its public receives fair market value before a lease is awarded.
and the sales highest bid, $24,056,719, was for Atwater Valley block 64. BOEM offered 9,118 unleased blocks, covering 48 million acres,
Statoil Gulf of Mexico LLC submitted 13 high bids totaling located from 3 to 230 nautical miles (5 to 370 km) offshore Louisiana,
$44,500,688. Its highest bid, $21,237,976, was for Walker Ridge block 55. Mississippi, and Alabama, in water depths ranging from 9 to more
Hess Corp. submitted 12 high bids totaling $43,873,740. Its highest than 11,115 ft (3 to 3,400 m).
bid, $18,327,777, was for Green Canyon block 287. This is the final lease sale to be held in the Gulf of Mexico under
Chevron U.S.A. Inc. submitted 20 high bids totaling $35,566,603. the current Outer Continental Shelf Oil and Gas Leasing Program
Its highest bid, $11,307,829, was for Green Canyon block 642. for 2012-2017. BOEM estimates the lease sale could result in the
Exxon Mobil Corp. submitted 19 high bids totaling $21,910,475. Its production of 460 to 890 MMbbl of oil and 1.9 to 3.9 tcf of natural gas.
highest bid, $5,275,025, was for Green Canyon block 250. As of March 1, 2017, about 16.9 million acres on the US OCS are
Anadarko US Offshore LLC submitted 16 high bids totaling under lease for oil and gas development (3,194 active leases) and 4.6
$18,941,629. Its highest bid, $5,134,285, was for Mississippi Canyon million of those acres (929 leases) are producing oil and natural gas.
block 41. More than 97% of the leases are in the Gulf of Mexico; about 3% are
TOTAL E&P USA, Inc. submitted four high bids totaling $15,000,000. on the OCS off California and Alaska, according to BOEM.
Its highest bid, $12,600,227, was for Garden Banks block 1006. This US Secretary of the Interior Ryan Zinke said: Todays strong
block received the highest number of bids (five). sale reflects continued industry optimism and interest in the Gulfs
Other high bidders included: outer continental shelf, a keystone of the nations offshore oil and
Walter Oil & Gas Corp. submitted four high bids totaling gas resources and a vital part of President Trumps plan to make the
$6,268,088. United States energy independent.
Ridgewood Energy Corp. submitted eight high bids totaling The results of the lease sale were promising, said NOIA President
$4,773,962. Randall Luthi. The results not only reflect an improving offshore
LLOG Exploration Offshore, L.L.C. submitted four high bids oil and gas market, but also optimism for increased opportunities
totaling $3,279,524. for offshore leasing, exploration and development under the Trump
Houston Energy, L.P. submitted nine high bids totaling $2,082,090. administration.
1705OFF_18 18 4/11/17 4:02 PM

WELL ABANDONMENT
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After the inner casing is removed, on the next run specially
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2017 Weatherford. All rights reserved.
DRILLING & FORMATION EVALUATION

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1705OFF_19 19 4/11/17 4:02 PM

SUBSEA SYSTEMS Sarah Parker Musarra Houston
Siemens and Saipem will be partnering on qualifying and promoting an open standard subsea control system for Saipems Subsea Bus architecture,
which is based on Siemens Subsea DigiGrid. Shown here is Siemens Subsea Power Grid, which the company has called one of the key enablers for
large-scale subsea processing. (Image courtesy Siemens)
Saipem, Siemens to develop with the Department of International Trade als and proposed end-product meet quality
subsea control tech (DIT), the subsea-focused event included site and technical requirements.
Saipem and Siemens have signed a joint visits to companies including GE Oil & Gas, Some other subsea contractors on the proj-
development agreement aimed at qualifying Aker Solutions, Hydrasun, Wood Group, BP, ect include Technip, contracted in 2012 for the
and promoting an open standard subsea control and ROVOP. The mission provided a broad but subsea installation work, and DOF Subsea.
system for Saipems Subsea Bus architecture in-depth overview of the sector, covering how The latter was awarded a five-year inspection,
based on Siemens Subsea DigiGrid. Siemens, technology has evolved over the years to meet maintenance, and repair contract to provide
through its Subsea entity, will support Saipem the demands of exploration and production underwater services and a multi-purpose sup-
in realizing the Saipem Subsea Bus architec- companies as they move to harsher and more ply vessel last year.
ture, by adapting and further developing the complex environments in order to recover the
Siemens Subsea DigiGrid digitalization, con- worlds oil and gas reserves, Subsea UK said. JDR, Proserv form
trol, and communication portfolio into a cus- It continued by noting that PEMEX officials West Africa alliance
tomized subsea control system. This system is also gained an insight into the subsea industry Subsea cables and umbilicals supplier JDR is
one of the key enabling elements of Saipems from a UK perspective and as a global sector, expanding its presence in West Africa through a
technology platform for subsea processing looking at how subsea fields are developed, and strategic alliance with Proserv Instrumentation.
systems, and, the companies said, it will be the how subsea systems are designed, installed, JDR will establish a service and maintenance
first control system in the market promoting a operated and decommissioned around the base at Proservs operations center in Port
modularized and standardized subsea system world. Each year, Subsea UK works with DIT Harcourt, and the two companies plan to offer
through open framework architecture. to organize trade missions to Mexico in a bid combined subsea solutions and local content
The Saipem Subsea Bus is an extendable to increase business and trade opportunities. support to the West African market. In JDRs
open framework platform of software and hard- case, the offering will include maintenance and
ware components, including development and EnerMech to prep, test offshore installation services, product termina-
debugging tools, designed to ensure full sup- Prelude subsea kit tion and testing, and technical training.
port for and integration into all subsea applica- Technip Oceania has awarded EnerMech In recent years, the company has supplied
tions. The combined system will be capable of a pre-commissioning contract for Shells intervention/workover control systems to off-
controlling an all-electric configuration, ideally Prelude FLNG project, 230 km (143 mi) offshore projects including Totals Egina, Kaombo,
suited for subsea fields with long distances shore northwest Australia. The scope covers and Moho Nord off Nigeria, Angola, and Congo,
between wells and host facility. pre-installation filling of the risers, riser leak respectively. It also delivered a hybrid steel um-
Saipem CEO Stefano Cao said: This tech- testing, pressure monitoring of the umbilical bilical to the ABO 12 field offshore Nigeria, and
nology cooperation agreement with Siemens and electrical steel flying lead during pipelay, has since invested in a technical test and repair
marks a further step for Saipem along the road and electrical flying leads/umbilical testing. container for umbilical and reeler management.
to the development of Saipems subsea process- Works will be conducted at the offshore lo- The announcement came recently after news
ing systems. The open framework architecture cation, with engineering and project manage- that Proserv was awarded a multi-million dollar
will facilitate the unlocking of the supply chain ment handled from the companys Perth base. contract from Premier Oil for work offshore
and the achievement of cost savings through Last April, GE Oil & Gas announced it had Indonesia. The company will supply a subsea
an innovative technological approach. started manufacturing four high-pressure/ control system and associated equipment for
high-temperature dynamic flexible risers for the Bison, Iguana and Gajah Puteri develop-
PEMEX visits Aberdeen the Prelude vessel. GE has worked with Shell ment project in the Natuna Sea. The scope of
on subsea mission on the project since 2011, following an initial supply is a three-well subsea control system,
Senior officials from PEMEX recently com- order for turbomachinery equipment. The which includes the companys Artemis 2G
pleted a fact-finding mission to Aberdeen, visit- companies since collaborated on the subsea subsea electronics module, tied back to the
ing with Subsea UK. Organized in partnership flexibles scope to ensure that the raw materi- Naga and Pelikan platforms.
1705OFF_20 20 4/11/17 4:02 PM

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1705OFF_21 21 4/11/17 4:03 PM

VESSELS, RIGS, & SURFACE SYSTEMS Jessica Tippee Houston
Drilling rig contractors make major moves

Borr Drilling Ltd. has signed a letter of intent with Transocean
for the acquisition of 15 high-specification jackup rigs. The transac-
tion is expected to total around $1.35 billion, and consists of all of
Transoceans jackups, comprising 10 rigs in its existing fleet and five
newbuilds under construction at Keppel FELS Ltd. The consideration
for the transaction also includes the remaining contract backlog and
yard instalments to Keppel FELS for the newbuilds, whose board of
directors has pre-approved the novation of the newbuilding contracts.
The transaction is subject to the parties executing definitive agreements
and satisfying formal closing conditions, including a final approval from
the boards of directors of both companies. It is expected to be completed
by the end of the month. Borr said that a deposit in line with what has
been agreed between the parties has been paid to Transocean. Financ-
ing has been secured through a private placement of equity securities,
and the company also announced an $800 million equity offering to fund
the acquisition.
On Monday, March 27, Ocean Rig UDW Inc. filed for Chapter 15 bank-
ruptcy protection in the United States Bankruptcy Court for Southern The NG-5500X-LD is designed for light drilling and well intervention in the
District of New York. The next day the drilling rig contractor announced Southern North Sea, Middle East, and Southeast Asia. (Courtesy GustoMSC)
that it entered into an agreement with creditors representing more than 72%
of its outstanding consolidated indebtedness for a financial restructuring. by water depths of up to 80 m (262 ft) except for the Southern North
Noble Corp. plc and GE have formed a partnership to collaborate on Sea, which reaches up to 50 m (164 ft).
an advanced data analytics system for offshore drilling rigs known as Until now this was the domain of classic drilling jackups and tender
the Digital Rig solution, which aims to improve operational productivity. barges with associated day rates and operational restrictions. Gus-
By using data analytics to make asset management more efficient, the toMSC claims the new design bridges the gap between the successful
solution will allow the drilling contractor to better manage the asset shallow to midwater service units and the full-fledged drilling rigs.
lifecycle and provide more productive drilling for customers. The unit can remain offshore when adverse weather conditions occur,
The agreement calls for GE to initially deploy its latest digital asset resulting in more workable days, improved efficiency, and reduced
performance management system on four Noble drilling rigs as part non-productive hours during operational charters. Other features
of a fleet pilot program. The expected efficiencies captured through include good maneuverability (DP-2), diagonal pre-loading, a transit
the implementation of the solution target a 20% reduction in repair speed of up to 8 knots, and added safety and accuracy when using
and maintenance expenditures across the pilot rigs. the variable frequency drive controlled jacking system.
The partnership will allow data-driven operations intelligence to The 1,200-sq m (12,917-sq ft) main deck allows for flexible use while
provide benefits that include: the cantilever featuring the X-Y skidding system provides a large drilling
Enhanced drilling process efficiency Foresight of asset anoma- envelope of 18.3 m x 7.9 m (60 ft x 26 ft) and additional deck space as
lies and drilling process deviations to reduce operational disrup- it raises the entire cantilever and drill floor structure above the main
tions and enhance performance consistency. deck by around 3.6 m (12 ft). This envelop ensures access to a vast
Shift to predictive asset management Redefinition of mainte- majority of brownfield platform layouts, the company claims. With 250
nance strategies, with a focus on predictive asset management to tons of hook load at 60 ft and up to 350 tons (770 kips) at 50 ft the rig
achieve long-term, sustainable opex reductions across the fleet. can perform light drilling operations with a drilling depth of 12,000 ft
Reduction of third-party service costs Anytime, anywhere rig (3,658 m). The hull measures 87.5 m (287 ft) in length, 42 m (138 ft) in
visibility and insights that leverage the one-to-many impact of width, and 8 m (26 ft) in depth. It can accommodate 90 persons on board.
shore-based experts to reduce third-party service costs.
David W. Williams, chairman, president and CEO of Noble Corp. plc, Jan De Nul taking delivery
said: With shifting market dynamics, the offshore industry is on the of twin subsea construction vessels
cusp of change. Drilling contractors must seize the moment to enhance AVIC shipyard in Weihai, China, has launched Jan De Nul Groups
their competitive edge. We believe the shift to data-driven decisions will new multi-purpose vessel Adhmar de Saint-Venant. Sister vessel Daniel
have a significant effect on drilling efficiencies. It is imperative for our Bernoulli was expected to be launched from the same yard in late March.
industry to embrace the digital revolution Both have been designed to perform a va-
to stay efficient and nimble riety of functions: subsea rock installation
through an inclined fall pipe or a flexible fall
GustoMSC debuts pipe; subsea trenching, installation of cables
latest self-propelled and umbilicals; and installation works by
cantilever jackup design means of a heave compensated crane. Other
GustoMSC has unveiled the NG-5500X- features are DP-2, a fully diesel-electric ma-
LD, the latest in the NG series of self-pro- chinery arrangement, and accommodation
pelled jackup designs. Based on the proven for 60 crew members.
NG-2500X and NG-1800X designs, the NG-
5500X-LD is a solution for light drilling The Adhmar de Saint-Venant has a
and well intervention in a large number STRENGTHBOTTOM class notation: this
of mature fields in the Southern North allows the vessel to be beached, enabling
Sea, Middle East, and Southeast Asia. The cable installation works in very shallow
conditions of these fields are characterized waters. (Courtesy Jan De Nul)
1705OFF_22 22 4/11/17 4:03 PM

Eternal bond
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2017 National Oilwell Varco | All Rights Reserved
1705OFF_23 23 4/11/17 4:03 PM

DRILLING & PRODUCTION Bruce Beaubouef Houston
Industry continues to advance digitization

In the midst of a market that remains cau- in operational expenditure and
tious at $50/bbl, some of the industrys key enhance competitiveness even
players are continuing to make progress on in the current down market en-
digital solutions that will reduce costs and vironment, Franco added.
increase the efficiency of offshore drilling GE says that its marine APM
and production technologies and systems. solution combines digital twin
Recently, GE and Noble Corp. jointly an- data models and advanced ana-
nounced a partnership to collaborate on the lytics to detect off-standard
Digital Rig solution, which will be designed behavior often a sign of po-
to enable data-driven operational efficiency tential failure or performance
through the use of data analytics. The target degradation of target assets
is a 20% reduction in operational expenditure on the rigs. This can sometimes
across Nobles fleet of rigs. be detected weeks ahead; and
Within the agreement, GE will initially in such cases, it can provide
deploy its latest marine Asset Performance an early warning to operators
GE and Noble Corp. will work to advance the Digital Rig solution
Management (APM) system on four of Nobles so they can mitigate a problem
on rigs such as the Noble Sam Hartley. (Courtesy GE)
drilling rigs. GE says that the APM system is before it occurs.
powered by its Predix software, a cloud-based As the system continues to learn, GE and partnership the two companies announced
software that is designed to enable industrial- Noble Corp. say that the ability to predict the fu- in January.
scale analytics. ture condition of rig-wide assets will also enable BP gravitates toward new technologies, espe-
GE and Noble say that the partnership a shift from planned to predictive maintenance. cially digital, and that makes working with them
will allow data-driven operations intelligence With modern software-based analysis, mainte- particularly exciting, said Lorenzo Simonelli,
to provide broad-ranging benefits for the nance is exercised only when there is evidence president and CEO, GE Oil & Gas. We are
selected assets on the programs rigs. The of need. Compared to planned maintenance, taking a big step forward together during this
companies say that these benefits will include: this approach avoids unnecessary maintenance time of digital transformation, deploying what
Enhanced drilling process efficiency. This whiel also mitigating the risk of maintenance- weve co-created over the past year to drive the
will include foresight visibility of equipment induced problems. The effect of all this, the kind of productivity improvements that the oil
anomalies and drilling process deviations to companies say, will be to reduce unplanned and gas industry needs. At that time, Simonelli
reduce operational disruptions and enhance downtime and create significant cost savings. said that the global deployment is expected to
performance consistency. In addition, the companies said that the be the largest-scale deployment of GEs Predix-
Shift to predictive maintenance. This will re- ability to provide actual rig asset data to on- powered APM technology to date.
define maintenance strategies with a focus on shore experts globally will provide insights GE says that Plant Operations Advisor is
predictive maintenance to achieve long-term, into asset health, allowing experts to remotely designed to help prevent unplanned downtime
sustainable opex reductions across the fleet. diagnose problems and advise on next steps and improve facility reliability by helping en-
Reduction of third-party service costs. This from a central location, potentially reducing gineering teams respond quickly to issues as
will provide anytime, anywhere rig visibility third-party service costs. This capability will they occur in real-time.
and insights that leverage the one-to-many also help optimize the offshore maintenance By bringing together some of the best
impact of shore-based experts to reduce third- teams manpower and structure, as engineers minds at GE and BP, we were able to develop
party service costs. will be able to focus on the drilling activity, not this innovative digital product and are confident
With shifting market dynamics, the off- fault finding unnecessary problems. that it will have a significant impact on our
shore industry is on the cusp of change. It is time for the industry to rethink the business, said Ahmed Hashmi, BPs Head of
Drilling contractors must seize the moment drilling ecosystem, said Tim Schweikert, Upstream Technology. When fully deployed,
to enhance their competitive edge, said David president and CEO of GEs Marine Solutions these advanced digital technologies will change
W. Williams, chairman, president and CEO division. Offshore companies must adapt to the way we work and improve the integrity and
of Noble Corp. We believe the shift to data- industry disruptions by leveraging digital performance of our assets around the globe.
driven decisions will have a significant effect solutions to counteract the current down- Using GEs Predix and APM capabilities,
on drilling efficiencies. It is imperative for our swing, and for readiness to scale during a the POA system is designed to rapidly in-
industry to embrace the digital revolution to market upswing. Industry-wide collaboration tegrate operational data from producing oil
stay efficient and nimble, and Noble is leading underpins a solid digital future. and gas facilities to deliver notifications and
the way. We look forward to developing our The GE/Noble Corp. partnership follows analytical reports to engineers so they can
Digital Rig solution with GE. another digital solution launched last fall. In identify operational performance issues before
Sluggish oil price, market volatility and November, BP and GE introduced Plant Opera- they become significant.
geopolitical complexity are shaking the off- tions Advisor (POA), a digital solution designed GE says that the system provides simplified
shore landscape, said Francesco Falco, chief to improve the efficiency, reliability, and safety access to a variety of live data feeds and in-
commercial officer, GE Energy Connections of BPs oil and gas production operations. Plant cludes visualization capabilities including a real-
Power Conversion. The industry is challenged Operations Advisor is already helping BP man- time facility threat display. It also incorporates
with the increased pressure of cost reduction age the performance of one of its platforms in an extensive case management capability to
and need for productivity gains. The impend- the Gulf of Mexico and, subject to a successful support learnings from prior operational issues.
ing retirement of many experienced work- pilot, is expected to be deployed this year to GE says that this technology combines big
ers widens skills gaps and leads to further other BP facilities around the world. data, cloud hosting, and analytics on both
industry-wide uncertainties, he added. GEs The tool, built on GEs Predix operating individual pieces of equipment as well as the
digital APM solution would unlock reductions system, was created as part of a development entire production system.
1705OFF_24 24 4/11/17 4:03 PM

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1705OFF_25 25 4/11/17 4:03 PM

GEOSCIENCES Sarah Parker Musarra Houston
ing (PAM) for seismic survey operations in the US Gulf of Mexico.

In a further milestone, Sercel also confirmed that QuietSea was
deployed commercially for the first time on a proprietary 3D seismic
survey CGG conducted offshore Morocco late last year. The integrated
architecture was used for a continuous three-month period during the
operation.
The monitoring system was specifically designed to provide mam-
mal detection and localization information to PAM operators during
seismic surveys. Used by an operator during the night or at times of
poor visibility, QuietSea also provided automatic mammal detection
during the day, which complemented the regular visual sightings by
the marine mammal observer.
Anna Katarzyna Leszczynska, PAM operator with Hydenlyne, who
operated QuietSea on CGGs Geo Caspian vessel, said that no downtime
was experienced as a result of PAM equipment failure or human errors.
Pascal Rouiller, Sercel CEO, said that the two milestones confirmed
the effectiveness of the system for environmentally responsible marine
Fugro will train Ground Structures soil technicians and the companies seismic acquisition.
will work together on a marine site characterization project onboard the
Fugro Explorer. (Image courtesy Fugro) OGA joins TNO for cross-border JIP
The UKs Oil & Gas Authority (OGA) joined the Netherlands Orga-
Fugro boosts geotechnical nization for Applied Scientific Research on an on-going joint industry
presence in Guyana research project (JIP), called Hypo-Lias, to explore the hydrocarbon
Fugro has entered into a strategic alliance with Ground Structures potential of Jurassic rock formations across the Southern North Sea.
Engineering Consultants Ltd. in the Republic of Guyana. The new This research project, executed as part of the Dutch TKI Upstream
relationship will facilitate training for Guyanese citizens and support Gas program, is already sponsored by EBN, NAM, and Statoil. Upon
local economic development. joining the project, the OGA will specifically sponsor additional re-
Fugro says that those employed by Ground Structures have experi- search, focused on the Southwestern Approaches and East Shetland
ence in conventional geotechnical engineering and its services include Platform areas. These are also the subject of the UK government-
site reconnaissance and geologic mapping, subsurface exploration, funded 2016 seismic acquisition program.
data analysis and engineering design, specification review and on-site Hypo-Lias was originally defined as a project which covers not only
monitoring. Principal consulting fields include environmental manage- the UK and Netherlands, but also parts of Norway and Denmark.
ment, geotechnical engineering and groundwater hydrology and the With the OGA joining the project, Hypo-Lias further extends its col-
companys expertise is complemented by a full-service soil laboratory. laborative reach. All outcomes from the research sponsored by the
As part of this new working relationship, Fugro will provide onsite OGA will become publicly available after completion, substantially
training at its accredited laboratory in Houston to cross-train soil boosting future joint research opportunities with a consistent focus on
technicians to meet industry standards. It will also provide offshore sustainable and competitive offshore gas exploration and production.
experience to Ground Structures certified soil technicians who will Jo Bagguley, Principal Regional Geologist at the OGA, said: The
support a geotechnical campaign recently awarded to Fugro by Esso OGA is committed to promoting exploration opportunities in the
Exploration and Production, Guyana Ltd. The marine site charac- UK through both regional and targeted approaches. The Hypo-Lias
terization project was expected to begin in April, and the Ground project enables us to collaborate with our Dutch colleagues and share
Structures technicians will work alongside Fugro personnel onboard cross-border learnings.
its deepwater geotechnical vessel, Fugro Explorer. The results of the UK part of the Hypo-Lias project will complement
the seismic data that has been acquired by the OGA in the southwest
PAM system authorized for GoM use Britain and East Shetland Platform areas, Bagguley noted. OGA says
The US Bureau of Safety and Environmental Enforcement (BSEE) that this will further its understanding of the exploration potential in
has authorized the use of Sercels QuietSea passive acoustic monitor- these frontier areas of the UK continental shelf.
COSL updates on Gabon survey

China Oilfield Services Ltd. (COSL) said in
March that its seismic vessel Hai Yang Shi You 720
(HYSY 720) was on schedule to complete a survey
off Gabon in early April. The company noted that
a contract for the subsequent survey was under
negotiation with an unnamed client. Separately,
in its annual results 2016, COSL confirmed that
HYSY 720 completed two 3D seismic acquisition
contracts in the North Pole Barents Sea. Within
its fleet, COSL operates and manages six seismic
vessels, two ocean bottom cable teams, and five
engineering survey vessels (as of 2016).
(Image courtesy COSL)
1705OFF_26 26 4/11/17 4:03 PM

1705OFF_27 27 4/11/17 4:03 PM
OE
R FG
FSUH
LOAT
ROE RAYU P
TEOR
MSAPTEI O
CNTIV
SEOSL U T I O N S
BSEE promoting safe deepwater production uses for all deepwater operations plan approv-
through advanced technology review als, asking questions such as: Will the system
operate safely during worst-case conditions?
Lars Herbst and completion; (2) design and fabrication Does the system have suitable barriers? Are
Bureau of Safety and information for each riser system; (3) a descrip- the materials being used appropriate for the
Environmental Enforcement tion of the surface/subsea safety system and conditions to which they are exposed? In other
emergency support systems that describes words, is the facility ready for an emergency,
The same ingenuity that has marked explo- what valves will close at what times and for what and if one occurs can a shut-in be successfully
ration and production in the Gulf of Mexico reasons; (4) a discussion of any new technology carried out?
throughout the 20th century takes a modern that affects hydrocarbon recovery systems; (5) Many of Americas oil deposits lie miles
form when one considers the approaches and 11 other general categories of informa- below the seafloor of the Gulf of Mexico, re-
now being used in deepwater environments. tion. BSEE engineers carefully review every quiring operations that must first overcome
Throughout the Gulfs outer continental shelf, component of the plan in order to make sure the challenge of working in up to 10,000 ft
recent projects involve new technologies or that the operation will be conducted safely with (3,048 m) of water. As new deepwater pro-
non-conventional applications of technologies minimal risk to the environment. duction platforms, such as Hess soon-to-be
from other aspects of the industry. There is Over the years, the bureau has earned a deployed Stampede, continue to advance
no doubt that these advances have helped reputation of being thorough in its reviews through construction and production phases,
America secure energy resources that were while also applying common sense to its de- BSEE works to coordinate pre-production
previously unreachable. For ex- inspections within operator time-
ample, from 2014 to 2016, eight tables. That is one reason the bu-
of the worlds most advanced reau successfully completed the
production facilities became op- pre-production inspection of the
erational in the deepwater Gulf, Stampede topsides at the Kiewit
including Shells Olympus and shipyard in Ingleside, Texas. Any
Stones, Chevrons Jack/St. Malo, changes that might be needed
and Anadarkos Lucius and Hei- can be accomplished more ef-
delberg. Together, these eight ficiently while the structure is
production facilities are expected still in the shipyard.
to produce in excess of 600,000 One of the most exciting re-
b/d of oil. Each of these opera- view efforts that BSEE is cur-
tions has overcome challenges rently engaged with involves
related not only to reser voir Shells Appomattox project, one
conditions, but also water depth, of the largest Gulf of Mexico
subsea pressure, extreme tem- projects ever commenced, with
peratures, and strong currents. production capacity of more than
The same challenges that 120,000 boe/d. Almost every
energy companies face in deep- A rendering of a HIPPS. (Courtesy Clarus) piece of Appomattoxs produc-
water operations are felt by the tion equipment is being designed
Bureau of Safety and Environmental Enforce- cision making. One recent situation reveals for first-time use. The equipment must be
ment (BSEE) as it strives to efficiently review the way it will work with industry to conduct capable of handling temperatures of more than
each operators conceptual and operations reviews in a timely manner. ExxonMobil ap- 350F (177C). Reservoirs that exceed tem-
plans. After the exploration phase ends, deep- proached BSEE about the possibility of pre- peratures of 350F trigger additional reviews
water offshore lessees that plan to proceed approving a technology that the company was by the bureau because conventional equip-
will submit the conceptual plan of their pro- not sure they would employ on the Julia field, ment is not rated to handle intense heat. Much
duction approach to BSEE. It typically takes a deepwater Tertiary reservoir. ExxonMobils of the technology Shell is employing for the
a few months or less before those plans are plan was to tie subsea wells into Chevrons Appomattox project will be used for the first
approved. Soon thereafter, the industry opera- Jack/St. Malo platform. time in subsea environments. To maximize
tor submits a much more detailed deepwater Desiring to reach full production as quickly safety reviews, BSEE is requiring that many
operations plan. That is when the real work as possible, ExxonMobil asked the bureau of the systems be reviewed by independent
begins, and BSEE engineers begin review of to preapprove use of a high integrity pres- third parties with sufficient technological ex-
the plan and various permits. Other bureau sure protection system, or HIPPS. Such a pertise. Throughout the process, the bureau
program engineers integrate reviews of other system had never been deployed in the Gulf continues its longstanding approach of listen-
aspects of the project. For example, the Pipe- of Mexico before in a subsea environment ing, evaluating, and making safety-focused,
line Section reviews pipeline permits. and the operator was not sure that it would common-sense decisions.
The deepwater operations plan is the com- be used; the need to use it would depend on Since its formation, the bureau has been
panys description of how the prospect will be whether a well has a shut-in tubing pressure committed to an efficient review and inspec-
developed, including all equipment and tech- that exceeds the maximum allowed operating tion program. Once its engineers and inspec-
niques. BSEE engineers will review the plan pressure for the pipeline and riser systems. tors conclude that adequate steps have been
to, among other things, make sure it adheres The bureau did not hesitate to undertake taken with regard to safety and minimizing
to the barrier concept, which means there the review of something that might never risk to the environment, it proceeds with proj-
are two independent mechanical barriers that be deployed for this project: Engineers were ect approval. As a result, BSEE feels confident
can prevent safety breaches. Examples of the assigned and the reviews began promptly. that Americas offshore energy industry is
information in the plan include (1) a description In assessing the use of a subsea HIPPS, safer and our nations incredible natural re-
and schematic of the typical wellbore, casing, BSEE applied the same common sense logic it sources are being properly stewarded.
1705OFF_28 28 4/11/17 4:03 PM

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1705OFF_29 29 4/11/17 4:03 PM

UPSTREAM INVESTMENT
Evolving business models, concepts

will drive offshore recovery
J. David Anderson, PE, CFA
Mick Pickup, PhD
Barclays TechnipFMC enhanced horizontal subsea tree
(Image courtesy TechnipFMC)
T
he market downturn of the past two
years has had a profound impact across
all aspects of the oilfield services and
equipment sector, but the deepest and
longest lasting impact will ultimately
be felt offshore. The decline in onshore US
activity was most severe, but that market is
also the most cyclical, having been through
this as recently as 2009. On the other hand,
offshore development had never really seen
a downturn since the deepwater era began in
2006; the industry was building capacity non-
stop in rigs, subsea equipment, and vessels
until peaking in 2014. Since then, the offshore
industry has been in freefall. While the North
American and Eastern Hemisphere land mar-
kets have turned the corner, the Barclays
2017 E&P Spending Survey shows offshore
spending down another 20-25% this year as
international oil companies (IOC), continue
to withhold spending. However, with recent
IOC data points showing a number of offshore
projects now economic at levels below $50/ that leave oil prices range-bound between (of course, every project is different) com-
bbl, Barclays is increasingly optimistic for an around $50 and $70/bbl or by the emergence prised of offshore rig costs; spread costs (or
offshore rebound in 2018. of a material global oil supply gap which sends other services including materials, labor, etc.);
This downturn has been extremely pain- oil prices skyrocketing, operators see speed to subsea costs; and FPSO costs, with three of
ful for the offshore industry, but ultimately, market as crucial to making decisions, requiring the four likely to be structurally lower in the
it will prove to be cathartic with leaner cost standardization of equipment, modular designs, coming cycle with spread costs being the
structures, flatter organizations, and more ef- and integrated packages for equipment and exception. Offshore rig costs have declined
ficient designs that will structurally lower the installation. A great deal of progress has been precipitously and will likely remain at break-
cost of development. Three prevailing themes made on this front over the past several years as even levels for rig contractors for at least the
dominate Barclays thoughts of a recovery. lead times on subsea packages have fallen from next several years (we forecast a contracted
The first is a movement toward smaller 24 months down to 12-16 months, in concert floater rig count of 120 at YE 2017 vs. industry
projects, and a smaller pie as well. A reduction with a remarkable reduction of around 50% in capacity of around 320); FPSOs are becoming
in workforces and asset bases is leading to a subsea systems costs. more standardized and modular; industry sub-
smaller, nimbler industry. The recent Wood Finally, offshore development costs are sea tree capacity is more than 800 trees (even
Mackenzie survey shows 128 subsea tree or- now structurally lower, with many projects higher when factoring in shorter cycle times).
ders in 2017 versus 83 in 2016, of which 42 are now effectively competing with shale. To cite
expected to be one- to five-tree awards. This is some examples of this, the Johan Sverdrup New models
a far cry from the 550 peak in 2013. Though development offshore Norway is being quoted A crisis can create opportunities for those
it is possible to see some larger awards (i.e. at $26/bbl breakeven; Royal Dutch Shell re- who adapt. Downturns have historically led
10 or more subsea tree projects) in 2H 17, cently stated that its deepwater portfolio is to a change in the corporate landscape of the
Barclays believes the era of mega-projects is now breakeven in the range of $35-45/bbl (vs. oil service industry, either through distressed
over, as operators are now considering more $60-70/bbl in 2014); and the total estimated situations or amalgamation. European service
phased-in developments to capture first oil cost of BPs Mad Dog Phase 2 development in investors recall the seismic shifts that occurred
earlier and minimize project risk. the Gulf of Mexico has been revised down by at the start of the last decade following the 1998
Secondly, customers are increasingly focused more than 50% from $20 billion to $9 billion. downturn, when the subsea construction com-
on speed to market. Regardless of whether or Barclays thinks about offshore develop- panies seen today were formed through a series
not the next cycle is defined by shorter cycles ment costs in four roughly equal quadrants of acquisitions. Already this downturn has led to
1705OFF_30 30 4/11/17 4:00 PM

Connecting Whats Needed with Whats Next
STRENGTHEN YOUR
CONNECTIONS
Copyright 2017 Oceaneering International, Inc. All rights reserved.
To safely and cost-effectively solve your deepwater challenges in these dynamic market conditions,
choose from our portfolio of advanced technologies and innovative subsea tieback solutions. As your
trusted field-development partner, our unmatched experience and advanced engineering enable us to
adapt and evolve to safely meet the current and future demands of the oil and gas industry.
By working together, we will safely and reliably re-shape the future of the oil and gas industry.
Connect with whats next at Oceaneering.com/WhatsNext
1705OFF_31 31 4/11/17 4:00 PM

UPSTREAM INVESTMENT
the creation of OneSubsea, the merger of Tech- Cameron International married a leading sub- into more of a solutions provider across the
nip and FMC Technologies, and the announced sea equipment supplier with Schlumbergers various offshore phases. In drilling, new au-
combination of GE Oil & Gas and Baker Hughes, unmatched reservoir expertise and technology tomated cementing skids take people off the
each with a unique approach to navigating the pedigree to create what is called a pore-to- rig, and cementing technologies reduce time
coming upcycle. The announced mergers sit on process approach. This wellhead-to-subsurface to drill. In completions, the ESTMZ multi-zone
top of a series of alliances (Saipem/Aker Solu- focus has a greater emphasis on increasing packer tool is now well proven, with Chevron
tions; Baker Hughes/Aker Solutions; OneSub- reservoir recovery (and hence project net pres- citing an 18-day improvement in rig time on
sea/Subsea 7/Helix) with the current landscape ent value, or NPV) by using SLBs reservoir the first five wells of a recent project. In sub-
jostling for position at the start line, almost trying and well construction knowledge to optimize sea, Halliburton actuator technology appears
the influence the direction of travel. For now, well placement and design with the subsea to be a final piece to electric subsea trees.
there is no clear answer as to which model will infrastructure. OneSubsea views tiebacks and National Oilwell Varco. NOV has a number
win out: Each offer savings and unique benefits, brownfield as the biggest near- to medium-term of products and solutions to cut down the
however, the answer could very well be the com- opportunity, well positioned with the largest time to first oil, through both enhanced res-
mercial models that offer the greatest flexibility installed base of subsea pumps, new interven- ervoir recovery and early production facilities,
to allow whatever the client feels is necessary. tion technology, and an alliance with Helix. such as the HoneyBee FPSO concept. This is
TechnipFMC. A result of the recent merger GE Oil & Gas/Baker Hughes. It is no longer designed to be a bridge solution for longer-
between Technip and FMC Technologies, com- just a two-horse race between TechnipFMC term offshore production facilities, allowing
bining the premier players in subsea equip- and OneSubsea with the new Baker Hughes operators to bring on production a year or
ment, SURF, and topsides engineering. The as a wildcard. Bakers drilling and reservoir two earlier from a larger field, or it could be
TechnipFMC offering focuses on the wellhead- expertise will build on GEs broader view of used to produce a series of marginal fields.
to-topside portion of an offshore development. offshore that extends into pipelines, power SBM Offshore. As one of the largest lessors
Overall project costs can be lowered by as systems, and turbomachinery. Overall, the of FPSOs, SBM Offshore management has
much as 30% through standardization of equip- new Baker Hughes offshore offering feels noted for years that the biggest impact on
ment, connections, and installation. Services is closer to OneSubsea than TechnipFMC, NPV in oil projects is delays to start-up. With
FMCs fastest growing business, which is just though we would expect a greater focus on its new Fast4Ward design, SBM Offshore can
starting to ramp up as the industrys largest projects that extend toward midstream and reduce the delivery time of an FPSO by six-12
installed base (2,500 trees) goes through the downstream based on product mix. months from the typical schedule of around 40
intervention/workover phase. Halliburton. Halliburton has not tradition- months. Indeed, SBM Offshore is already in
OneSubsea. Schlumbergers acquisition of ally been a player in subsea, but is evolving the process of selecting yards to ensure that
it has a head start on the basic components
of new units as and when they are required.
The offshore cost curve is moving struc-
turally lower. The two-year duration of the
downturn resulted in a massive unwind of
oilfield service inflation that has meaningfully
Oil Spill Monitoring for Offshore Platforms reduced the cost to drill and complete wells.
InterOcean
But while Barclays expects the majority of an

estimated 40% reduction in onshore US well
Optical Oil Detection costs to return from service pricing, supply
Real-Time Alerts chain inflation, and inverse high-grading, off-
shore is a different story. A combination of an
Continuous Monitoring acceptance of standardization, technological
Wireless Connectivity leaps in flow assurance, untapped offshore
intervention, and phased-in developments has
Explosion-Proof structurally lowered the offshore cost curve.
Submergible
Installation & Maintenance Standardization is real
An ongoing theme among equipment sup-
Services Included pliers during the downturn, standardization
Minimize Risk & Maximize Safety is viewed as the key enabler in bringing down
development costs and getting projects to
final investment decision. Without a doubt,
standardization reduces costs and cuts project
complexity along with reducing manufacture
time and improving safety. Perhaps the best
analogy is buying a new car where the base
model is pre-defined and pre-engineered but
the buyer can select which options are wanted,
See a live demonstration at OTC Booth 901 and how much more it will cost.
Subsea trees. Perhaps the most obvious ex-
ample, subsea trees were ground zero for the
InterOcean Systems, LLC offshore standardization movement, which can
now be delivered in 10 months from 24 months
www.interoceansystems.com www.slicksleuth.com previously, and now at 50% of the cost. Tech-
An affiliate of Delmar Systems, Inc.
1705OFF_32 32 4/11/17 4:00 PM

UPSTREAM INVESTMENT
nipFMC noted that new orders (though there equipment across an operator is one thing, but Successful tiebacks are all about flow as-
are not many) have all the bells and whistles to standardize across multiple operators is surance, which has long been a challenge in
removed and many are now off the shelf. another challenge. Safety tolerances narrowed deepwater. Fluid streams leave the wellbore
Schlumberger is taking this a step further with and specifications increased, particularly in at elevated temperatures and are subjected
its HyFleX Subsea Tree System, combining the metallurgy, where operators typically have to rapid cooling in the flowline. As such the
benefits of a vertical tree (flexibility allows for unique, specific guidelines. TechnipFMC is higher molecular weight components of crude
easier intervention) at the cost of a horizontal trying to solve this in its 20,000 psi workgroup can start to crash out and hydrates can form
tree (typically 30-40% less than a vertical). consortium, which includes Anadarko, BP, to restrict flow with trenching, electrical trace
Standardized fittings and connections. A ConocoPhillips, and Shell, which have agreed heating, chemical injection and insulation all
logical extension of the equipment and E&C on a standard metallurgy (albeit a very high used to ensure flow. But the biggest need for
mergers and alliances is to standardize all the standard). Nevertheless, it is a step in the operators has been the ability to bring more
connections between subsea infrastructure, right direction. energy to the subsea system to not only move
flowlines, and SURF equipment, in fact, it was hydrocarbons over longer distances, but to
a core rationale behind the FMC Technolo- Flow assurance extract more out of the reservoir itself. As the
gies/Technip merger. In order to increase an operators project distance of tiebacks to existing infrastructure
FPSO standardization. One of the biggest NPV, the re-use of existing infrastructure gets longer, more energy needs to be added
sources of cost overrun and delays has been represents a cost efficient method to bring- to the system by way of boosting (for oil) or
the construction and delivery of the FPSO. ing on new supplies. These tiebacks typically compression for gas by removing back pres-
Going forward, FPSO hulls will be standard involve a small number of trees and a flowline sure on the reservoir and enabling higher
after all, it is only a moored workspace and to existing infrastructure and have a time-to- flow rates.
storage unit. The key is to introduce standard- market considerably shorter than a greenfield Subsea boosting. The concept of subsea
ization in topsides processing, which has typi- project. TechnipFMC believes the entire sub- boosting is to use pumps to relieve the back-
cally been a bespoke design using the specific sea tieback can be standardized, leading to a pressure on reservoirs, allowing flow to be
characteristics of a field, but could be better 50% reduction in delivery times. The success maintained (or increased) as the reservoir
addressed through modular equipment. In (or limitation) on subsea tiebacks have often pressure declines over time. Put another
SBM Offshores Fast4ward design, it offers been the ability to move hydrocarbons in way, in order to produce, reservoir pressure
a standardized hull combined with topsides the deepwater, both out of the reservoir and needs to overcome the weight of the column
modules which can be chosen from a catalogue. back to infrastructure, more broadly known of fluids in the well (oil, gas, water), which
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UPSTREAM INVESTMENT
pumps to alleviate this backpressure, the cost effective ways to enter a well for light
reservoir has less force to overcome and workovers. Once the OWIRS is lowered to
can produce more at a lower reservoir the seabed by a rig or vessel, coiled tub-
pressure. OneSubsea is the dominant ing or wireline is run through the unit,
market leader in subsea boosting, with controlled by an intervention workover
an installed base of over 90 Framo units control system (IWOCS). Historically,
installed across 30 offshore projects. the OWIRS system has been owned and
Each system is unique and was gener- maintained by the operator, with about 30
ally in the $250-300 million total project units believed to be in the market, and
cost range, many of which relying on TechnipFMC is operating several of
multi-phase systems to accommodate these units for customers. But the big-
a wider range of flow variables (light ger opportunity is for the company to
oil, heavy oil, gas, water). OneSubseas take this off the hands of the majors, put
newer systems are designed as lower
cost alternatives to enable better tieback National Oilwell Varcos Seabox (shown left),
economics using single pump systems, reduc- and a rendering depicting seafloor water
ing the project cost down to around $100 mil- treatment vs topsides treatment.
lion with Subsea 7 as its installation partner. (Both images courtesy NOV)
TechnipFMC now has a toehold in this highly
underutilized market for boosting technology
having recently commercialized its pump,
winning two awards in early 2016.
Seawater injection systems. Instead of pull-
ing oil out of a reservoir, a new take on an old
concept is to increase recovery by pushing
on the reservoir by injecting seawater. After
drilling injection wells along the perimeter of
an offshore field, self-contained units installed
to pump seawater into the injection wells allow
operators to sweep out the hydrocarbons in
a reservoir with monitoring through process
and control systems. The Seabox concept
is one of several forays by National Oilwell
Varco into the subsea market (first prototype
to be installed in 2017), offering which also
include subsea storage for processed water, tion have been worked over in the past decade.
tiein structures, and a more robust SURF With intervention requiring a deepwater rig, it on its balance sheet, and then perform the
offering. the economics simply did not make sense as work on service contracts.
Electric subsea systems. Although the base day rates skyrocketed during the 2007-2014 In 2015, a Subsea Services Alliance between
technology has been around since 2008, elec- deepwater boom. According to TechnipFMC, OneSubsea and Helix was formed to develop
tric trees have never gained traction since be- offshore wells typically require a workover technologies and deliver services to optimize
ing used in a Dutch North Sea pilot program on average every seven years, which would the cost and efficiency of subsea well interven-
for Total, but momentum has picked up again imply an inventory of approximately 3,000 tion systems, which is now starting to bear
following a technological breakthrough. One- trees based on that math. fruit. Not only is Helix the only other service
Subsea (Cameron) has been at the forefront of The fastest growing business within Tech- company with an OWIRS unit, but equipment
designing electric subsea systems, but it was nipFMC is Offshore Services, where the com- has been designed to be utilized by vessels,
Halliburtons electrical safety actuation valve pany is adding layers of revenue streams driv- not rigs, including a new piece of equipment
that appears to be the final piece to creating en primary by intervention. Services is more called a Riserless Open-water Abandonment
a reliable system. than just installation work on orders as the mix Module (ROAM) that is currently being de-
Subsea compression. The Gullfaks field in is quickly shifting toward intervention work veloped. The ROAM system is designed to
the Norwegian North Sea (Statoil) represents with a focus on recurring revenue streams. support open water well abandonment opera-
a technological leap forward in increasing The company has the largest installed base tions, providing well control from a well inter-
gas recovery rates. Similar to boosting on oil of subsea trees, with 2,300 trees globally. The vention vessel that allows tubing to be pulled
fields, compression adds energy to the well- subsea tree itself is designed for the life of the safely from a well at a substantially lower cost
stream when reservoir pressure falls below field and failure is extremely rare, but every than rig-based solutions. This technology is
a critical level. Using wet gas compression well needs to be worked over at some point targeting a large, untapped market with an
technology designed and built by OneSubsea, and when it is intervened, the tree is brought inventory of as many as 1,600 wells globally
production has increased between 40-100% in for maintenance. for plugging and abandonment.
with Statoil estimating the recovery rate of Another service revenue stream Technip-
the reservoir will increase from 62% to 74%. FMC is targeting is an Open Water Inter- Phased developments
vention Riser System (OWIRS), which is a One of the bigger industry shifts is the de-
Intervention potential large, complex pressure control device that sire from oil companies to get to early first oil,
Currently, there are approximately 7,000 is placed on the wellhead once the subsea not early full capacity on new developments.
subsea trees installed globally, yet only a frac- tree is removed, considered one of the most Perhaps the Mad Dog Phase 2 project is the
1705OFF_34 34 4/11/17 4:00 PM

UPSTREAM INVESTMENT
ultimate example, once designed to be future cost and quicker delivery, the HoneyBee is offer the cost competitiveness of horizontal
proof and now, on its fourth iteration, likely ideal for multiple deployments on stranded as- trees, with the intervention capabilities of
to be built for a phase one development with sets, but could also allow operators the ability vertical. Similarly, TechnipFMC champions
the potential to tie-in future phases. As such to produce from a larger development more its new manifold, which can be built internally,
first oil is quickened, NPVs are improved quickly by deploying the HoneyBee initially. is 50% lighter, has a significantly reduced lead
and future expansions are set should they Not only will this bring forward NPV for the time, and can be connected in series, should
be required. With a more standardized and operator, but also allows for more compre- bigger capacity be needed.
adapted approach to developments, many hensive well testing while a larger, bespoke
aspects will become more modular. FPSO is being built.
National Oilwell Varcos HoneyBee FPSO SBM Offshores Fast4ward concept is a The authors
concept is aimed at smaller marginal fields similar concept, but on a larger scale. It is J. David Anderson is the senior North America Oilfield
(stranded assets) that can be used in multiple targeting its more normal project size, 150,000 Services and Equipment Analyst at Barclays Capital.
deployments or to achieve early production b/d or more, and has standard modules al- Prior to Barclays, he spent five years at J.P. Morgan
in a similar capacity, preceded by 10 years at UBS.
on larger developments. NOV is the lead of ready designed to form the basis of a plug-and-
He earned a B.S. in electrical engineering at Lehigh
an industrial alliance with GE Oil & Gas to play topsides, with conceptually standardized University, a M.S. in ocean engineering at the Univer-
build smaller FPSOs with a capacity of 20- modules tailored to suit the required crude sity of Connecticut, and a M.E. in civil engineering at
40,000 b/d with processing capability in a specifications, yet delivered six-12 months Stevens Institute of Technology. Prior to a career in fi-
plug-and-play modular design that can be earlier than standard FPSOs. Both solutions nance, Anderson was a registered professional engineer
customized depending on the parameters have the same goal. They enable fields to be specializing in the design of ports and harbors, offshore
of the field. Between NOV, GE, and Fjords exploited quicker, enable easier construction, mooring systems, and underwater inspection as an
(NOVs recent acquisition), this alliance can with repetition breeding familiarity within engineer-diver. Anderson is also a CFA charterholder.
provide the entire topsides kit. While the over- a fabricator and with it better deliverability
Dr. Mick Pickup is the senior European Oilfield Ser-
all cost was not disclosed, the concept is to and safety.
vices Analyst at Barclays Capital. Prior to Barclays,
approach the operator with a design that is The concept of lighter and modular also he was at Lehman Brothers beginning in 2000, which
70% standardized (hulls are 25% cheaper to fits into the subsea sector. OneSubsea has he joined after a brief time at Commerzbank. Prior to
build), topsides processing for as little as 30- already reduced manufacturing times and 2000, Pickup worked in a consultancy role as a senior
60% of the cost of typical FPSO facilities, and costs on its standard trees, but with its new analyst for Evaluate Energy. He earned a B.A. from
construction within three years. With lower HyFLeX trees (previously discussed) it can Oxford University and a Ph.D. in Chemistry from UCL.
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1705OFF_35 35 4/11/17 4:00 PM

UPSTREAM INVESTMENT
Facility maintenance, modification Matt Adams

Douglas-Westwood
market set to rebound in 2018

T
he offshore oil and gas industry has fallen on tough times since
2014, however, market sentiments appear to be improving on the
back of the coordinated OPEC and non-OPEC production cuts. The
first major floating production system (FPS) order since mid-2015
was made in early January 2017, with several other high-profile
orders expected to be made in the coming months. However, despite
an anticipated uptick in expenditure in 2017, the market still has a long
way to go to offset the effects of one of the worst downturns in recent
memory, according to Douglas-Westwoods (DW) latest outputs.
The combined capex outlook from DWs oilfield equipment (OFE)
and drilling and well services (DWS) data shows a persistent decline
in expenditure through to 2021, after adjusting for double counting,
following a 6% increase in spend in 2017. Much of this decline in ex-
penditure can be attributed to a poor outlook for new mobile offshore
drilling unit (MODU) orders. A significant build cycle in the years
prior to the downturn saw a total of 211 MODU orders across jackups,
semisubmersibles, and drillships. Associated expenditure for these rigs,
phased equally over the period from order to delivery, peaked at $27
billion in 2014, but fell away rapidly as new orders dried up as oversup-
ply and low utilization swept the rig market. Despite an improvement
in market sentiments, the analyst is not expecting any increases in
MODU construction related capex through to 2021 in its base case
as drilling activity remains suppressed throughout the forecast period.
Consequently, the rigs and rig equipment market, formerly accounting
for 19% of total DWS and OFE capex in 2014, will account for just 5% of
total capex by 2021 should DWs base case materialize. BP approved the $9-billion Mad Dog Phase 2 project in the Gulf of Mexico
A similar story can be seen in the analysts fixed and floating pro- in December 2016, which will see a second floating production platform in
addition to the original, shown here in 2013. DW believes this significant
duction capex outlook, which also sees expenditure by asset phased
order will contribute to the 16% jump it has found in 2017s Fixed & Float-
equally between order and installation year. Due to a dearth of new ing Production capex. (Image courtesy BP)
project sanctioning over 2015-2016, expenditure in the segment fell
from $33 billion in 2014 to just $23 billion in 2016. However, as a result of sustained deflationary pressure on MODU day rates. The combined
of the improving macroeconomic climate and a handful of projects effects of falling drilling activity and the vast number of deliveries of
having been ordered or expected to be ordered in 2017, DWs MODUs ordered prior to the downturn have resulted in severely de-
fixed and floating production capex figure will increase 16% this year. pressed rig utilization rates. Consequently, DW expects a continued
A significant proportion of this increase can be attributed to a large squeeze on day rates to be felt by rig contractors, with the average
number of fixed platforms which form part of Saudi Arabias brownfield day rate of rigs on contract likely to fall consistently through to 2021.
re-development plans in the Arabian Gulf, while high profile orders Despite an anticipated uptick in deepwater drilling in the early 2020s,
such as Mad Dog Phase II also contribute. this is unlikely to result in an increase in overall rig and crew capex,
Post-2017, however, the analyst expects fixed platform ordering given the strong competition for contracts which is likely to be seen.
activity to once again dry up, on the back of an anticipated increase in Away from the drilling-led markets, the prospects for global main-
the crude oversupply which will continue to dog the industry over the tenance, modifications and operations (MMO) expenditure through
coming years. An additional 2.4 MMb/d of crude is expected to come to 2021 are notably more positive, according to DWs World Offshore
online in 2018 42% of which from offshore fields pushing the oil Maintenance, Modifications and Operations Market Forecast. The MMO
market from a balance in 2017 to a 1 MMb/d oversupply in 2018. Ap- market is driven by ongoing operations at the global population of
proximately 1.7 MMb/d of additional production is expected to come offshore fixed and floating production platforms. While the downturn
from OPEC member states such as Iran, Nigeria, and Saudi Arabia. hit the market both through headcount reductions and supply chain
Meanwhile, 0.7 MMb/d will come from non-OPEC states, with large pricing pressures, the scope of these were notably less severe than in
additions from Brazil, the UK, and Kazakhstan. Consequently, DWs out- drilling-led operations particularly onshore.
look for new offshore infrastructure orders will remain bearish through The global modifications market looks set for a particularly prosperous
the rest of the decade, particularly in more mature oil focused regions. period of growth through to 2021, due to the anticipated return of previously
For the analysts rig and crew market segment, the capex allocated delayed workscopes. This service line includes the necessary replacement
to the rental of drilling rigs and their crew is also set for a decline in and/or modification of accommodation blocks, communications units,
expenditure through to 2021, although only a -2% CAGR is expected. gas treatment modules and other key production phase facilities. Much
While the offshore drilling outlook remains suppressed, relative to 2014 of these workscopes have seen deferral since 2014 as operators tightened
levels, the majority of the decline in expenditure is due to expectations budgets in order to maintain positive cash flow. However, with the improv-
1705OFF_36 36 4/11/17 4:00 PM

UPSTREAM INVESTMENT
ing PoB on producing assets, thus driving a

revival in support services expenditure through
to 2021, with an expected year-on-year growth
rate of 1%. While an anticipated return of the
crude market oversupply may threaten this out-
look, the analyst deems it unlikely that further
headcount reductions will be seen, particularly
as operators will look to consolidate cash flow
from existing operations before investing in
large scale greenfield developments.
In conclusion, the improvement in market
sentiments in 2017 will undoubtedly have much
needed positive impacts on the offshore oil
and gas industry. However, the pain is not
over yet. A persistent oversupply of MODUs
Source: Sectors/courtesy Douglas-Westwood will continue to suppress new rig orders and
maintain the extreme pressures on rig and crew
ing macroeconomic environment, the analyst chain. These pressures are expected to remain costs. While there is expected to be further
expects such works to now go ahead, with a surge in place for the rest of the forecast period, fixed and floating production orders this year,
in modifications expenditure expected in 2018. with DW expecting operators to maintain cost a return of the crude oversupply in 2018 will
Other MMO services, such as asset services pressures on the supply chain regardless of limit the scale of new fixed platforms orders
(which include the maintenance of electrical, the improving macroeconomic environment. being placed with phased expenditure in this
mechanical, process and rotating equipment, On support services, which comprises opex sector to continue to decline after an uptick
fabric maintenance and specialty services) have associated with deck crew, hotel services (ca- this year. Despite this, the oilfield services
been relatively sheltered to the headwinds of tering, cleaning, etc.) and admin and other supply chain can be cautiously optimistic on
the downturn, due to their necessary nature. services, reductions in persons on board (PoB) the MMO sector, which is expected to see a
As a result, declines seen over 2014-2016 was fixed and floating platforms have dented rev- marked recovery in fortunes over the coming
predominantly driven by contract renegotia- enues. However, a return of confidence in the five years as operators look to consolidate and
tions and other cost pressures on the supply oil market this year is likely to lead to increas- improve returns from existing assets.
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1705OFF_37 37 4/11/17 4:00 PM

I N T E R N AT I O N A L E & P R E P O R T
GULF
Gulf operators re-engineer
OF
MEXICO projects for lower
price environment
E
&P activity in the US Gulf of Mexico Bruce Beaubouef will also focus on project design to bring costs
continues to be plagued with uncer- Managing Editor down, Sandeen observed. Over-engineered
tainty, even though oil prices seem to facilities will become a thing of the past as opera-
have stabilized around $50/bbl. Still, tors right-size projects, he continued. Reduc-
that is less than half of the price of oil ing well count, by high-grading development
in mid-2014, and that price environment has from the 2015 peak and the lowest since 2011. well locations and completing exploration and
in turn engendered an economic climate in However, the heavy investment from earlier appraisal wells, will further help as companies
which operators and developers continue to this decade will lead to a new post-Macondo prioritize lowering breakevens instead of in-
be cautious. production peak of 1.75 MMboe/d this year. creasing ultimate recovery. As an example,
A number of field development projects While E&P activity costs and pricing are Sandeen notes that Shells Vito project has been
have been brought online, and a few are mov- expected to creep up in 2017, the GoM is still redesigned with a smaller facility and lower well
ing forward, but drilling activity is expected searching for a bottom says Sandeen. This count, which has helped bring the breakeven
to stay low this year. is largely due to the softened rig market. down from $60s/bbl to the low $40s/bbl.
That trend may continue through the year, Although leading-edge day rates are averag- Exploration will remain low priority, the
according to a recent report from Wood Mack- ing $250,000, the overall average for rigs in report observes. The decline in wildcat wells
enzie entitled US Upstream: Five things to GoM is still $450,000 a legacy of contracts has been partially offset by the increase in
look for in 2017. The report offers a fairly signed during the days of $100/bbl. While infrastructure-led exploration by independents,
pessimistic view of the exploration and drill- smaller players have taken advantage of the albeit with a decrease in discovered reserves.
ing activity in the US Gulf for this year. The softer rig market, bigger players have been Thirty-five E&A wells were drilled in 2016, com-
merging of lower oil prices and the gradual left behind. This $200,000 gap between the pared with 39 in 2015, but discovered reserves
end of a major investment cycle in deepwater leading-edge and average contracted rates will declined from 650 MMboe to 250 MMboe. In
Gulf of Mexico will finally take its toll on the be the key driver for contract cancellations or 2017, we reckon the independents will focus
region in 2017, said author Jackson Sandeen, renegotiations in 2017, Sandeen said. their limited budgets on development activi-
Senior Research Analyst Lower 48 Upstream Lower rig rates will help bring well costs ties resulting in fewer wildcat wells, Sandeen
Oil and Gas for Wood Mackenzie. down, but operators can only squeeze service commented. We estimate less than 15 E&A
According to the report, investment in 2017 companies so much more, the report notes. wells will be drilled in 2017.
is expected to drop to $10 billion, a 36% decline Consequently, we expect [that] operators Still, a number of field development projects
will move forward this year, despite the mal-
aise that continues to hang over the Gulf. Per-
haps most notable is BPs Mad Dog Phase 2
project, which was sanctioned last December.
Estimated to cost some $9 billion to de-
velop, the deepwater Gulf of Mexico project
calls for a new floating production platform
with the capacity to produce up to 140,000 b/d
of crude oil from up to 14 production wells. Oil
production is expected to begin in late 2021.
The second Mad Dog platform will be
moored about 6 mi (10 km) southwest of the
existing Mad Dog platform, which is located
in 4,500 ft (1,372 m) of water about 190 mi (306
km) south of New Orleans. The current plat-
form has the capacity to produce up to 80,000
b/d of oil and 60 MMcf/d of natural gas.
In 2013, BP (operator with 60.5% working
interest) and co-owners, BHP Billiton (23.9%)
and Union Oil Company of California, an affili-
ate of Chevron U.S.A. Inc. (15.6%), decided to
re-evaluate the project after an initial design
proved too complex and costly.
The $9-billion Mad Dog Phase 2 project calls for a new floating production platform with the capac- Since then, BP has worked with co-owners
ity to produce up to 140,000 b/d of crude oil from up to 14 production wells. (Courtesy BP) and contractors to simplify and standardize the
1705OFF_38 38 4/11/17 3:59 PM

platforms design, reducing the overall project

cost by about 60%. Today, the project, which
also includes capacity for water injection, is
projected to be profitable at or below current
oil prices. Bob Dudley, BP Group CEO, said
that the revised project design shows that big
deepwater projects can still be economic in
a low price environment in the US if they are
designed in a smart and cost-effective way.
BP discovered the Mad Dog field in 1998
and began production there with its first plat-
form in 2005. Continued appraisal drilling in
the field during 2009 and 2011 doubled the
resource estimate of the field to more than 4
Bboe, spurring the need for another platform
at the field.
Mad Dog Phase 2 has been one of the most
anticipated projects in the US deepwater and
underscores our continued commitment to
the Gulf of Mexico, said Richard Morrison,
president of BPs Gulf of Mexico business.
The project team showed tremendous dis-
Phase one of the Kaikias project calls for three wells to be tied back using a single flowline to the
cipline and arrived at a far better and more nearby Shell-operated Ursa production hub. (Courtesy Shell)
resilient concept that we expect to generate
strong returns for years to come, even in a low Project management, including engineer- by optimizing field production and minimizing
oil price environment. At the time of the an- ing, fabrication, installation support and life of lead times.
nouncement, BP said it planned to add about field activities will be managed by US-based This includes the first application of Tech-
800,000 boe/d of new production globally from resources and operations in Houston and nipFMCs compact pipeline end manifold and
projects starting up between 2016 and 2020. Louisiana. Teams from both companies will be horizontal connection system technologies
In recent months, BP has begun to award co-located to better support project objectives. with flexible jumpers in the deepwater GoM.
contracts for the development of the project. Elsewhere, Shell and Mitsui (MOEX North Andy Brown, upstream director of Royal
In March, Wood Group announced that it America LLC) have announced that they are Dutch Shell, said: Kaikias is an example of
had won two separate contracts for Mad Dog moving for ward with phase one of their a competitive and capital-efficient deepwater
Phase 2. Samsung Heavy Industries contract- Kaikias project in the deepwater Gulf. The project using infrastructure already in place.
ed Wood Group to provide detailed engineer- companies say that Kaikias has a competitive The team has done a great job [of reducing]
ing and procurement services for the topsides go-forward break-even price below $40/bbl. the total cost by around 50% by simplifying
for the projects floating production unit. The The project will be developed in two phases. the design and using lessons learned from
$80-million contract follows the December The first phase includes three wells tied back previous subsea developments.
2016 completion of interim agreement period using a single flowline to the nearby Shell- In addition, two other Shell-operated projects
early work, which was valued at $4.5 million. operated Ursa production hub. The wells are in the Gulf of Mexico are currently under con-
Additionally, as part of the recently signed designed to produce up to 40,000 boe/d. Phase struction or undergoing pre-production com-
global services agreement with BP, Wood one is expected to start production in 2019. missioning: Coulomb Phase 2 and Appomattox.
Groups specialist technical solutions busi- Discovered in August 2014, Kaikias is lo- Meanwhile, Hess is moving forward with its
ness was awarded a $4.89-million contract for cated in about 4,575 ft (1,395 m) of water in Penn State Deep (PSD) project, located in the
subsea engineering and project management the Mars-Ursa basin about 130 mi (210 km) Garden Banks 216 block in approximately 1,500
services for the project. This includes gas lift offshore Louisiana. It is estimated to contain ft of water. In March, McDermott reported that
system interface design, geospatial informa- more than 100 MMboe recoverable resources. it had been selected perform subsea tieback
tion system support, subsea controls engineer- Shell is the operator and has an 80% working work for the project. Discovered in 1996, the
ing, and geotechnical engineering support. interest. MOEX NA, a wholly owned subsid- PSD field first began production in 1999.
Also in March, BP selected OneSubsea to iary of Mitsui Oil Exploration Co. Ltd., has Indeed, in the current price environment, a
design and build a subsea production system the remaining 20% working interest. number of operators are selecting tiebacks as
for the project. The scope includes subsea Recently, TechnipFMC reported that it had their preferred development option. Anadar-
manifolds, trees, control system, single and been awarded a contract by Shell Offshore Inc. ko has recently said that it expects to invest
multi-phase meters, water analysis sensors, for the delivery, integration, and installation of around $1.1 billion in its deepwater Gulf of
intervention tooling, and test equipment for the subsea production system (SPS) and sub- Mexico, Algeria, and Ghana assets, and that
producer and water injection wells associated sea riser, jumper and flowline (SURF) equip- subsea tiebacks will feature prominently in
with the project. ment for phase one of the Kaikias project. this campaign.
In addition, Subsea 7, which collaborates TechnipFMC says it collaborated with Shell In the Gulf of Mexico, the company plans to
with OneSubsea through the Subsea Integra- during the front-end planning and design for continue leveraging its infrastructure position
tion Alliance, was awarded an engineering, Kaikias phase one to engineer solutions and and drill approximately seven development tie-
procurement, construction, and installation efficient execution opportunities that were de- backs during the year. In addition, Anadarko
contract for subsea controls, flexible risers, signed to improve the overall cost and pace of noted that it expects to benefit from a full year
pipeline systems, umbilicals, and associated development. Under the terms of the contract, of production from the recently acquired Free-
subsea architecture. TechnipFMC will manufacture, install and port-McMoRan properties, which doubled its
Offshore installation activities are sched- integrate proprietary SPS and SURF equip- sales volumes to more than 160,000 boe/d at
uled for 2019 and 2020. ment designed to improve project economics the end of last year.
www.offshore-mag.com May 2017 Offshore 39
1705OFF_39 39 4/11/17 3:59 PM

AFRICA
African E&P recovers its
footing after oil price crisis
E
ven before the oil price crisis, the stability Sarah Parker Musarra Of the other major projects already fired
of Africas offshore oil and gas industry Editor up in African waters, two were announced
had started to show some seams. As the about a week apart from each other in March.
cost of offshore projects began spiraling Chevron Corp. subsidiary Cabinda Gulf Oil
globally, the scale and complexity of the Co. Ltd. has started oil and gas production
already expensive projects off the continents have changed now and it is this confidence from the Mafumeira Sul project offshore An-
coastlines had become increasingly untenable. that will help to push projects forward. gola. Located 24 km (15 mi) offshore Cabinda
Bonga South West was considered too ex- Operators in Africa and elsewhere have also province in 60 m (200 ft) of water, Mafumeira
pensive with oil over $100, Douglas-Westwood worked to lower development costs. To this Sul is the second stage of development of the
(DW) Analyst Ben Wilby told Offshore, high- point, Shell has streamlined and revised Bonga Mafumeira field in block 0. It includes a central
lighting the severity of the issue. Operator Shell South West with a smaller FPSO Wilby places processing facility, two wellhead platforms,
postponed making a final investment decision the capacity at 150,000 b/d, rather than 225,000. about 121 km (75 mi) of subsea pipelines, 34
(FID) on the project last February, after rumors This has helped to reduce the costs to a level producing wells, and 16 water-injection wells.
had been swirling for the previous years that Shell are happy with, while the downturn in The production facility has a design capacity
the project had been shelved entirely. orders has made everything from subsea com- of 150,000 b/d of liquids and 350 MMcf/d of
Africa was carried somewhat through the ponents to drilling a lot cheaper, he explained. natural gas. Early production from the project
earlier years of the oil price crisis by projects The firm now expects an FID in 2018. began in October 2016 through a temporary
that were already under development. How- production system. Ramp-up to full production
ever, 2016 saw E&P development offshore A promising start is expected to continue through 2018.
Africa grind to a halt when oil prices had Not yet halfway into 2017, several projects Shortly thereafter, Total started production
dropped to levels unseen in decades. Beyond have come onstream offshore Africa. Prolific from the Moho Nord deepwater project, 75
the fiscal, policy issues further eroded inves- explorer Eni produced first oil from the deep- km (46.6 mi) offshore Pointe-Noire. Arnaud
tor confidence. Nigerias Petroleum Industry water Cabaa South East field in block 15/06 Breuillac, president, Exploration & Production
Governance and Institutional Framework Bill offshore Angola five months ahead of schedule at Total, claimed it to be the biggest oil develop-
(formerly the Petroleum Industry Bill), es- and three years from the development plan. ment to date in the Republic of the Congo. The
tablishing legal and regulatory framework for The East Hub development project includes development involves drilling of 34 wells tied
the industry, has been frozen in front of the nine subsea wells, five producers and four back to a new tension leg platform, the first
National Assembly since 2000. Nigeria Extrac- water injectors, in waters depth ranging from for Total offshore Africa, and to Likouf, a new
tive Industries Transparency Initiative said in 450 to 550 m (1,476 to 1,804 ft). It is about 350 floating production unit. Oil is processed on
September 2016 that the countrys oil and gas km (218 mi) northwest of Luanda and 130 km Likouf then exported by pipeline to the Djeno
industry had experienced huge losses to the (81 mi) west of Soyo. It produces through the onshore terminal, also operated by Total.
tune of about $200 billion due to failure to pass Armada Olombendo FPSO, which can gener-
an enabling law for the petroleum industry. ate up to 80,000 b/d of oil and compress up No shortage of activity
Some of these losses are projected investments to 3.4 MMcm/d of gas. The new flow will DWs most recent World Deepwater Market
due to regulatory uncertainty which experts add to production from the existing West Forecast listed several more reasons for a
have put at $120 billion ($15 billion yearly). Hub project, which includes the Sangos, Cin- brighter outlook offshore Africa. It sees that
If some projects offshore Africa were in- guvu, Mpungi, Mpungi North, Ochigufu, and global deepwater expenditure is expected to
capable of producing at triple-digit-oil prices, Vandumbu fields connected to the NGoma total $120 billion over the 2017-2021 period,
they were not going to be profitable when FPSO. In total, block 15/06 will reach a peak with traditional deepwater countries in Africa
oil fell below $30/bbl early last year. Wilby, of 150,000 b/d of oil this year. and the Americas expected to drive near-term
who tracks floating production sys- capex. Furthermore, several African
tems and other indicators, said that offshore developments are forecast to
no such systems were ordered for support expenditure during the latter
African countries last year. Things years of the forecast period, including
seemed fairly bleak for a region that Senegals SNE, as well as increased
had both well-established and promis- activities offshore East Africa, among
ing plays, he said. other areas.
However, a year has made quite a
difference, and there are indicators
present that activity offshore Africa Total says that Moho Nords produc-
is picking up once again. tion facilities are designed to minimize
This time last year, there was no their environmental footprint. There will
real guarantee that $50 oil would be be no routine flaring on the all-electric
seen for a number of years; OPEC design, and all produced water will be
was not cutting production; and US reinjected into the reservoir. Heerema
output was not as affected as people installed the TLP and its moorings. (Im-
had thought, Wilby said. Things age courtesy Heerema)
1705OFF_40 40 4/11/17 3:59 PM

That assertion is reflected so far in the Although all eyes are on the splashy FLNG ers a total area of about 2,850 sq km (1,100 sq
exploratory activity seen off Africa in recent development, Ophirs last update detailed mi). It also recently offloaded a 25% indirect
months. several programs around Africa. Seadrills interest in the natural gas-rich Area 4 block,
Operated by Cairn Energy, SNEs resourc- West Saturn drillship will start drilling the offshore Mozambique to ExxonMobil in a
es have been upgraded several times, and Ayame-1X well on block CI-5113 offshore March sales and purchase agreement worth
Marchs results from the VR-1, combined Cte dIvoire during 2Q. about $2.8 billion.
with the outcome from the SNE-5 appraisal The data has been processed and geosci- However, in further signs of possible trou-
well, could lead to a revision of the fields ence teams for both blocks are assessing ble offshore Nigeria, Shell and Eni recently
contingent resource estimate, said partner prospectivity ahead of a decision on whether to saw deepwater prospect OPL 245 seized by
FAR Ltd. Wilby said the project will also be drill a well. The well, likely to cost $30 million, the government over corruption charges.
an FPS unit with trees tied back to it. FID is will test an extension of a proven petroleum The decision was later reversed following an
expected in 2019, with production to follow system in the adjacent block, the main risk appeal, and the two partners retained control
between 2021 and 2023. being trap effectiveness. of the field, which is home to the Etan and
Kosmos Energy has begun the second phase Off Gabon, Ophir extended its Nkouere and Zabazaba discoveries.
of its multi-well exploration drilling program Nkawa licenses and is using the Olumi Rouge Off Cameroon, Bowleven is holding devel-
offshore Mauritania and Senegal. The Atwood 3D seismic data to mature a new outboard opment discussions concerning the Etinde
Achiever drillship was drilling as of the time play, which it believes has multi-billion-barrel gas field, at the time of this writing. Operator
of this writing in the Cayar Offshore Profond potential. Here too it is seeking to bring in a NewAge had staged a technical workshop
block, targeting the Yakaar prospect (formerly partner for a second-phase of exploration. to review options for Etinde, with a view to
Teranga West). Yakaar is located about 40 km Another development of high interest is the gain agreement from all stakeholders on
(25 mi) west of the Teranga discovery. Offshore Cape Three Points (OCTP) project, the preferred development solution(s). The
Ophir Energys high-profile block R For- offshore Ghana. Wilby said the project was choices include floating LNG, gas-to-power,
tuna LNG project, said to be the first FLNG one of the few FPS developments to move and others. Participants at the meeting agreed
development offshore Equatorial Guinea, is forward in the downturn and is due to start that a commercially viable FLNG scheme
on track for an FID during 1H, the company next year. Eni held a naming ceremony for with domestic gas offtakes as they become
confirmed in March. The company also said the FPSO John Agyekum Kufuor, which will available could represent a credible forward
that the southwest portion of offshore block R operate in the Sankofa-Gye Nyame field in the development plan. Bowleven says there are
contains a potential extension of an oil play in Tano basin for OCTP. sufficient resources to support one initial gas
the neighboring block over which the opera- Eni also recently secured 90% operated offtake solution more if planned appraisal
tor acquired 3D seismic survey last year that stakes in two new exploration blocks in the drilling targeting up to 2 tcf of gas and associ-
extended into block R. eastern part of the Tano basin. The pair cov- ated liquids proves successful.
1705OFF_41 41 4/11/17 3:59 PM

North Sea cost measures

EUROPE
paying off, new players
emerging following asset deals
Jeremy Beckman
Editor, Europe
P
rospects for new projects are brighter across northwest Europe,
and two main factors are steering this development. One is
the North Sea industrys success in driving down costs over
the past two years; the other is the recent surge in merger
and acquisition (M&A) activity.
At the IP Week conference in London earlier this year organized
by the Energy Institute, Maersk Oil CEO Gretchen Watkins, said the
slump in investments following the initial oil price shock exposed deep
inefficiencies in the North Sea, forcing the industry to become more
competitive. Operators and suppliers have managed to achieve this,
she added, through improved collaboration on reassessing projects
real needs and a greater willingness to accept standardized designs.
In the case of the HP/HT Culzean development in the UK central
North Sea, Maersk as operator found that meticulous front-end loading Johan Castberg FPSO/wells. (Courtesy Statoil)
of the design was essential to de-risking the execution phase, Watkins
said. As a result, the overall investment has come down by $500 million region of the Norwegian North Sea. This facility will be linked in the
since the project was sanctioned in 2015. And Maersk, like numerous next decade to an area wide power-from-shore scheme as part of the
other North Sea operators, has re-evaluated its well engineering ap- Johan Sverdrup Phase 2 development. Statoil and its various partners
proach, both to cut costs and improve production. One example she are also expected to submit development plans for the Johan Castberg
cited was stronger recovery at the companys Halfdan field offshore project in the Barents Sea, based around an FPSO with subsea well
Denmark, following a switch to horizontal water injection wells. completions, and the North Sea Snorre 2040 life extension program.
At the same conference, Trond-Eril Johansen, President, Europe Exploration drilling is ramping up in the Barents Sea, following the
& North Africa, ConocoPhillips said his company was looking to limit Norwegian Energy Ministrys award of the first-ever licenses last year
its North Sea project costs to around $30/bbl. A lot of that can be in the previously off-limits southeastern Norwegian sector Statoil
achieved through collaboration with the supply industry and contrac- plans its first well here this summer, targeting at least 500 MMboe
tors on alternate solutions, he said, for instance, rather than building from one prospect. In UK waters, securing financial backing for either
a big platform, going instead for a smaller platform. frontier or near-field wells has proved much harder, although the few
Watkins also claimed the upsurge in North Sea M&A deals was wells drilled over the past year have brought results. The most active
indicative of the sectors renewed competiveness, and the value that driller in exploratory terms has been Hurricane Energy, which claims
remains in the North Sea. Last years main movers were BP Norge and to have proven an extension of the Lancaster oilfield west of Shetland
Det norske oljeselskap, which combined their interests to form Aker via its nearby well on the Halifax structure. Hurricane believes this
BP, the second-largest player on the Norwegian shelf behind Statoil. could be the UKs largest undeveloped offshore discovery to date:
The new company is pushing ahead with incremental developments how much can be produced remains to be seen, as the reserves are
at its main field centers, the latest involving new wells to extend the contained wholly in fractured granite basement.
life of the Tambar platform and infrastructure by another 10 years. Interest in UK frontier offshore licensing, however, remains strong,
In March, Point Resources, formed last year from the merger of three with Shell and ExxonMobil, both of which have virtually deserted the UK
small Norwegian independents, arranged to acquire all ExxonMobils and Norwegian North Sea, awarded over 10 block operatorships under
Norwegian offshore operations, which will make it one of the main the recent 29th licensing round, many being in the little-drilled Rockall
players on the shelf, with production heading toward 80,000 boe/d. Big basin west of Scotland. Continuing down the Atlantic Margin, Cairn En-
deals in the UK sector so far this year have been headed by Chrysaor ergy subsidiary has agreed to farm into and co-fund an ultra-deepwater
agreeing to pay up to $3.8 billion to Shell for the latters interests in 10 exploration well this June on the Druid/Drombeg prospects in the
field developments, with combined net production of 115,000 boe/d. southern Porcupine basin, 220 km (137 mi) offshore southwest Ireland.
Under an $85-million transaction, EnQuest is set to replace BP as opera- The plan for development and operation (PDO) for the DEA-operated
tor of the Magnus oilfield in the East Shetland basin. More recently, Dvalin development has been approved by the Ministry of Petroleum
Israeli E&P company Delek Energy made an offer for Ithaca Energy, and Energy. Development costs are estimated at 1.1 billion Euros (10
the cash-strapped operator of the Greater Stella Area gas-condensate billion Norwegian Kroner).
project in the UK North Sea, which came onstream in February. Just after the PDO was handed over in October 2016, major contracts
Among the big projects set to start up later this year are EnQuests were awarded to Aibel, Aker Solutions, and Technip Norge AS. Cur-
Kraken and Premiers Catcher, two FPSO/oilfield developments in the rently, engineering and detailed planning are carried out. Production
central UK sector; BPs Quad204, a redevelopment of the Schiehal- of the new modules to be placed at the Heidrun platform and the
lion field West of Shetland; and Statoils Gina Krog in the Utsira High subsea production systems are expected to start later this year.
1705OFF_42 42 4/11/17 3:59 PM

Major projects approaching

MIDDLE
start-up in shallow EAST
and deepwater
Jeremy Beckman
Editor, Europe
D
uring 2014-16, the Middle East was the only part of the world
to weather the oil price shock, according to Bassam Fattouh,
Director of the Oxford Institute for Energy Studies. Fattouh,
speaking at IP Week in London in February, pointed out that
capex for projects across the region declined only nominally
during this period and did not translate into a fall in activity, with
increased numbers of drilling rigs in fact in operation.
Most of the NOCs, led by Saudi Aramco, have continued to increase
spending year on year, he added, apart from Iraq where the rig count
has been impacted by US shale. Kuwait plans to spend $12 billion on
oil and gas field activity over the next five years; Abu Dhabi will raise
its production to 3.5 MMb/d in 2018, with offshore development con-
tributing to most of that growth. In Saudi Arabia, Aramco is laying the
foundations for long-term sustainable oil production of 12.5 MMb/d,
while continuing to develop its gas sector via incremental projects on
very large associated and non-associated gas fields. Leviathan field location offshore Israel. (Courtesy Noble Energy)
This year, Aramco has contracted McDermott International, one
of its longest-serving offshore fabricators, to build and install nine is in the process of increasing production from the Upper Zakum field
new platforms for Safaniya, the worlds largest offshore oil field, 125 from 550,000 b/d to 750,000 b/d.
mi (201 km) north of Dhahran, and another platform for the Zuluf As of early last month, Total was the sole IOC to sign a heads of
field. One of Aramcos priorities is to step up Saudi involvement in its agreement for an Iranian offshore development project under Irans
offshore projects with this in mind, McDermott has committed to new contract model. The agreement is the first step toward a 20-year
establishing a new fabrication yard at Ras Al Khair. Another example contract covering Phase 11 of the South Pars gas field in the Persian
of growing local content is the STAR yard in Dammam port, a joint Gulf, which Total and the National Iranian Oil Co. plan to develop in
venture between Saipem and Saudi Enterprises, which late last year two stages. The first, with an estimated price tag of $2 billion, involves
completed work on the Marham TP-9 deck, the largest offshore tie-in drilling 30 wells, connected to two wellhead platforms linked by two
platform constructed to date in Saudi Arabia. subsea pipelines to an existing onshore treatment center. During the
RasGas, the joint venture between Qatar Petroleum (QP) and second stage offshore compression facilities will be added, depending
ExxonMobil, will likely start up the $10-billion offshore/onshore on reservoir conditions.
Barzan Gas project this year, boosting Qatars gas production capac- In the eastern Mediterranean Sea off Egypt, Eni aims to start pro-
ity by up to 2 bcf/d. duction at the end of this year from the giant deepwater Zohr field, 93
The offshore facilities on the North Field include three wellhead mi (150 km) offshore in the Shorouk license. Initial-phase investments
platforms, a living quarter platform and 186 mi (300 km) of subsea are thought to be around $4 billion, with OneSubsea responsible for
pipelines, with a new associated gas processing plant at Ras Laffan the subsea production system. Recently Eni brought onboard BP and
Industrial City. However, QP has decided to shake up its long-standing Rosneft as partners to share the cost burden.
arrangements with various major operators, with RasGas and Qatargas Noble Energy and its partners have sanctioned the $3.75-billion
to be combined to form a new company, retaining the name Qatargas, first phase of the deepwater Leviathan gas project offshore Israel.
which will operate all of Qatars LNG ventures. Development includes four subsea wells, each capable of flowing
The companies involved are ConocoPhillips, ExxonMobil, Mitsui, more than 300 MMcf/d, sending their production through two 73-mi
and Shell. And in July, the new North Oil Company will take over (117-km) flowlines to a fixed platform with full processing capabilities,
operatorship and development of the giant Al-Shaheen offshore oil 3.7 mi (6 km) offshore. First gas is targeted by end-2019. Greek E&P
field from previous incumbent Maersk Oil. This will be a partnership company Energean also has Israeli government approval to develop
owned 70% by QP and 30% by Total. 2.5 tcf from the deepwater Karish and Tanin fields, which it acquired
Similar moves are under way in the Emirates, where ADNOC has from the Noble-led partnership, via the eastern Mediterraneans
decided to merge Abu Dhabis two main offshore operating companies first FPSO. To the north, Lebanons government has reopened the
ADMA-OPCO and Zakum Development Co. (ZADCO) both joint countrys first offshore licensing round, with first awards due to be
ventures with IOCs claiming synergistic benefits. ADMA-OPCO confirmed later this year.
produces around 650,000 b/d of oil from the Lower Zakum, Nasr, Finally, in the Caspian Sea, BP says construction is nearing comple-
Umm Lulu, and Umm Shaif fields in the Persian Gulf, while ZADCO tion of the Shah Deniz 2 offshore facilities in the Azeri sector.
1705OFF_43 43 4/11/17 3:59 PM

ASIA-
PACIFIC
Operators advancing major
projects across Asia/Pacific
Ichthys LNG project nearing first production
S
everal offshore projects that were sanc- Jessica Tippee SHI says construction of the 488-m (1,600-
tioned before the market downturn Assistant Editor ft) long and 74-m (240-ft) wide Prelude FLNG
have reached or are nearing first pro- vessel is 95% complete and is expected to be
duction throughout Asia and Australia. delivered in 2Q. The FLNG facility will be
The INPEX-operated Ichthys LNG moored in about 250 m (850 ft) of water in
project off Western Australia, which is essen- the Browse basin about 200 km (124 mi) off
tially three mega projects in one, is scheduled northwest Australia. According to operator
to start production by the end of September. across 400 sq km (154 sq mi) in the Browse Shell, once operational, the Prelude FLNG
Samsung Heavy Industries (SHI) expects to basin about 220 km (137 mi) offshore, the facility will produce at least 5.3 mtpa of liq-
deliver the projects central processing facility subsea gathering system features a 110-m uids: 3.6 mtpa of LNG, 1.3 mtpa of conden-
(CPF) soon. At the shipyard in Geoje, South (361-ft) high riser support structure, five mani- sate (equivalent to 35,000 b/d) and 0.4 mtpa
Korea, Australian Minister for Foreign Affairs folds, 139 km (86.4 mi) of flowlines, 49 km of liquefied petroleum gas. It is expected to
the Hon. Julie Bishop MP recently christened (30 mi) of umbilicals and flying leads, 2,640 remain permanently moored at the location
the CPF Ichthys Explorer. The 130-m (427-ft) by metric tons of production and MEG spools, for 20-25 years before needing to dock for
120-m (394-ft) Ichthys Explorer is said to be the five subsea distribution units, and a subsea inspection and overhaul.
worlds largest semisubmersible platform. The distribution hub. At the Chevron-operated Wheatstone LNG
CPF will receive well fluids from project off Western Australia, part-
a subsea gas gathering system, ner Woodside Energy Ltd. reports
located at a water depth of about that construction of LNG Train
250 m (820 ft), within the Ichthys 1 is nearing completion, with all
gas/condensate field. TheIchthys modules on-site and final hook-up
Explorerwill be linked to the on- and commissioning under way.
shore production facilities in the The LNG storage tanks and ex-
Northern Territory via the longest port loading jetty are complete,
subsea pipeline in the Southern while the storage and loading
Hemisphere, 42 in. in diameter system are ready for commis-
and 890 km (553 mi) in length. sioning. Woodside expects first
At the Daewoo Shipbuilding LNG from Train 1 in mid-2017 and
& Marine Engineering shipyard from Train 2 six to eight months
in Okpo, South Korea, former later. The project comprises the
Chief Minister of the Northern Wheatstone and Iago fields, an
Territory of Australia the Hon. offshore platform, a pipeline to
Clare Martin officially named Above: The Ichthys LNG projects FPSO under construction at the Daewoo shore and the onshore plant lo-
the projects FPSO facility Ich- Shipbuilding & Marine Engineering shipyard in Okpo, South Korea. (Cour- cated near Onslow.
thys Venturer. Most liquids will tesy INPEX Australia) Below: The Prelude FLNG is said to be the biggest As for Woodsides other on-
be transferred from the CPF to floating production facility in the world. (Courtesy Shell) going Australian projects, at the
the 336-m (1,102-ft) long Ichthys Greater Western Flank 1 develop-
Venturer for offshore processing ment on the North West Shelf, the
and condensate offloading. final GWF-1 wells on the Tidepole
Once all commissioning activi- structure delivered first gas late
ties in the South Korean shipyards last year. The Persephone proj-
are finished, the offshore facilities ect remains on budget and on
will be towed 5,600 km (3,479 mi) schedule for start-up in 3Q, with
to the field and moored for their subsea installation under way. For
40-year operational life by 40,000 Greater Western Flank 2, the off-
metric tons of chain secured to shore campaign has started with
more than 25,000 metric tons of the installation of mooring piles
foundation piles. at two drill center locations, and
Subsea infrastructure and reser voir drilling in progress.
equipment installation was com- Subsea equipment manufacturing
pleted in early January. Spread has started for the Greater Enfield
1705OFF_44 44 4/11/17 3:59 PM

tieback, due to deliver first oil in mid-2019.

The company and its partners in the Browse
project are evaluating alternative development
options and are looking to select a concept
later this year.
Farther north, the newbuild Jangkrik
floating production unit (FPU) was recently
christened at the Saipem Karimun Yard in
Tanjung Balai Karimun, Indonesia. Accord-
ing to operator Eni, the vessel will serve the
Jangkrik Complex project in the offshore
Muara Bakau concession in the Kutei basin
in the Makassar Strait. It will soon sail to its
final destination: once in position, mooring
and hookup operations will get under way.
The project takes in the Jangkrik and Jangkrik
Northeast fields in 400 m (1,312 ft) of water,
100 km (62 mi) east of Balikpapan.
Eni is targeting first gas in June, within
three and half years of project sanction. The
FPUs location will allow fasttrack develop-
ment of nearby discoveries in this gas-rich
region.
The FPU has a gas processing and export
capacity of 450 MMcf/d, and will be connected
to 10 deepwater subsea production wells. Fol- Malikai is the first deepwater TLP in Malaysia. (Courtesy Shell)
lowing processing, the gas will be exported
through a new 79-km (49-mi) pipeline to (also Malaysian deepwater development follow- sovpetro manages operations on behalf of the
new) onshore reception facilities, then on ing Gumusut-Kakap in 2014. The platform license partners PetroVietnam and Russias
through the East Kalimantan Transportation is designed to handle up to 60,000 b/d of oil. AO Zarubezhneft Oil and Gas Co.
System to the Bontang gas liquefaction plant. Production is sent 50 km (31 mi) away to the Off eastern India, Reliance Industries has
The gas volumes will supply the local domestic Kebabangan oil hub for processing before contracted TechnipFMC subsidiary Genesis
market, the Indonesian LNG market, and LNG evacuation to the onshore Sabah Oil & Gas to perform a front-end engineering and design
exports. Eni operates the Muara Bakau PSC, Terminal. study for the deepwater MJ gas/condensate
in partnership with Engie E&P and PT. Saka Malikai is the first deepwater TLP in Ma- field in block KG-DWN-98/3 in the Bay of
Energi Muara Bakau. laysia and the first Shell TLP outside of the Bengal. Reliance plans seven wells from two
Offshore Malaysia, operator Hess Corp. Gulf of Mexico. The TLP was designed and subsea drill centers tied back to an FPSO.
and partner Petronas Carigali expect first gas built in Malaysia. It is also the companys first Genesis will manage the work from its head
in 3Q from the North Malay Basin full field TLP coupled with a tender assisted drilling office in London.
development. Installation of four wellhead rig. According to Shell, the project features Off western India, Oil & Natural Gas Corp.
platform topsides and jackets, intra-field and a cost-effective platform design and a unique, (ONGC) has awarded L&T Hydrocarbon En-
export pipelines and associated subsea iso- industry-first set of risers, or pipes that con- gineering Ltd. a $245-million EPCIC contract
lation valve skids, the floating storage and nect the platform to the wells for oil produc- for the Neelam re-development and B173AC
offloading unit (FSO) mooring systems and tion, which required fewer drilling materials project.
drilling of 13 shallow production wells were and lower costs. The scope includes one new process plat-
all completed by 4Q 2016. The completion Vietnams government has approved Hoang form having gas processing and compression
and installation of the FSO and the central Long Joint Operating Co.s updated full field facilities, three new wellhead platforms, 32-km
processing platform topsides and drilling of development plan for the Te Giac Trang field (20-mi) pipeline, clamp-on on three existing
the remaining Phase 1 wells are in progress, in the Cuu Long basin. According to partner platforms, and modification work on eight
according to Hess. SOCO International, this was formally submit- existing platforms. The project is expected
Late last year Petronas floating liquefied ted to the relevant authorities in 4Q 2016. The to be completed by April 2019. The Neelam
natural gas vessel PFLNG SATU produced approval covers up to 18 additional wells, with field is in the Heera-Panna block in Mumbai
its first LNG from the Kanowit gas field off- locations to be firmed up at a later date, and Offshore, about 45 km (28 mi) southwest
shore Sarawak. This followed the introduction installation of additional processing equipment of Mumbai. ONGC is targeting cumulative
of gas from the KAKG-A central processing on the H1 wellhead platform. This will be production through 2034-35 at 2.76 million
platform on Nov. 14, 2016. The vessel, the designed to handle 90,000 b/d of liquids with metric tons of crude oil and 4.786 bcm of gas.
worlds first FLNG vessel in operation, can a water handling capacity of up to 65,000 b/d. Offshore China, so far this year CNOOC
produce 1.2 MM metric tons/yr (1.32 MM Vietsovpetro has produced first gas and has brought onstream new production from
tons/yr) of LNG, and is designed for future condensate from the TU-6 well of the BK-TNG the Penglai 19-9 oilfield comprehensive adjust-
redeployment on other shallow-water fields platform at the Thien Ung field. Production ment project and the Enping 23-1 oilfields.
offshore Malaysia. heads the Bach Ho field pipeline system to Later this year it expects Phase two of the
Also last December, Shell started oil pro- mainland Vietnam. Thien Ung is in license Weizhou 12-2 oilfield project to start produc-
duction from the Malikai TLP, stationed in 04-3 in the Nam Con Son basin, southeast of tion. Last year the company achieved 14 com-
500 m (1,640 ft) of water, 100 km (62 mi) the Bach Ho field, in a water depth of 120 m mercial discoveries and successfully appraised
offshore Sabah. This is the companys second (393 ft) and 270 km (168 mi) offshore. Viet- 25 oil and gas structures.
1705OFF_45 45 4/11/17 3:59 PM

L AT I N &
SOUTH
E&P activity heats up
AMERICA
throughout Latin America
ExxonMobil to fasttrack Liza offshore Guyana
Jessica Tippee
Assistant Editor
A
s the industry recovers from the downturn, operators are
advancing exploration, development, and production projects
across Latin America, especially frontier areas.
Development of the giant deepwater Liza field offshore
Guyana got under way late last year. In November, ExxonMobil
informed the Guyanese government of its intent to fasttrack the Liza
discovery on the 6.6-million acre (26,800-sq km) Stabroek block. The
company and project partners Nexen Energy and Hess Corp. officially
gave Minister of Natural Resources Raphael Trotman notice of the
discoverys commercial quantities. Under the countrys Petroleum
Act, the ministry must be notified by letter, and Trotman noted that
it was the first time in Guyanas 50-year history that the Section 31 of
the Petroleum Act has been activated.
This is a profound and watershed moment in the development of
our country, he said.
In early December, ExxonMobil submitted to the Guyana Ministry
of Natural Resources an application for a production license and its
initial development plan for the Liza field that includes development
Discoveries and exploration prospects offshore Guyana.
drilling, operation of the FPSO, and subsea, umbilical, riser, and
(Courtesy ExxonMobil)
flowline systems. Later that month ExxonMobil subsidiary Esso
Exploration and Production Guyana Ltd. (EEPGL) awarded SBM
Offshore a front-end engineering and design contract for the FPSO.
In addition, subject to a final investment decision in 2017, SBM will
receive the contract to construct, install, and operate the vessel.
ExxonMobil aims to start production from Phase 1 in 2020, less than
five years after the initial discovery well.
Discovered in May 2015 about 120 mi (193 km) offshore, the Liza
field has a potential recoverable resource estimate in excess of 1
Bboe. EEPGL is the operator and holds 45% interest in the Stabroek
block. Hess Guyana Exploration Ltd. holds 30% interest, and CNOOC
Nexen Petroleum Guyana Ltd. holds 25% interest.
At the beginning of the year, ExxonMobil discovered another
deepwater oil field in the Stabroek block, according to partner Hess.
The drillship Stena Carron drilled the Payara-1 well roughly 10 mi (16
km) northwest of the Liza discovery, encountering more than 95 ft (29
m) of good-quality, oil-bearing sandstone reservoirs. Drilling started
on Nov. 12, 2016, with a TD of 18,080 ft (5,512 m) in 6,660 ft (2,030 m)
of water, followed by two side tracks. The partners plan a production
test to evaluate the find and further appraisal drilling later this year.
Hess added that the Liza-3 appraisal well, completed in November,
identified another good-quality, deeper reservoir directly below the
Liza field that is estimated to contain 100-150 MMboe. This resource
will likely be part of the full Liza field development.
Elsewhere off Guyana, Eco Atlantic Oil & Gas and operator Tullow Oil
have completed a detailed review of regional 2D seismic data over the
shallow-water 695-sq mi (1,800-sq km) Orinduik block. This has estab- The Juniper platform is installed in 360 ft (110 m) of water, 50 mi (80 km)
lished significant leads in the Block Canyon Play fairways. The partners offshore southeast Trinidad. (Courtesy BP)
1705OFF_46 46 4/11/17 3:59 PM

now plan a more extensive 3D seismic development plan to the Falkland Islands
survey than originally anticipated, likely government, and discussions are set to
to be acquired during June-July. This continue on a range of operational, fiscal,
should improve understanding of the and regulatory matters.
potential drilling targets. BP expects to produce first gas later
In addition, Tullow Oil is assessing this year from its $2-billion Juniper proj-
potential in frontier basins across Latin ect, 50 mi (80 km) offshore Trinidad &
America. Off Suriname, the company is Tobago. Heerema Marine Contractors
in a license that contains the potentially deepwater construction vessel Thialf in-
high-impact Araku prospect, which the stalled the platform, built by TOFCO in
partners are looking to drill during the Trinidad and Gulf Marine Fabricators in
second half of 2017. Araku is a large Texas. It will produce 590 MMcf/d from
structural trap with a resource potential the Corallita and Lantana fields, exported
of more than 500 MMbbl, which has through a 6.2-mi (10-km) flowline to the
been de-risked by a 3D seismic survey Above: The FPSO P-66 will be deployed in the Lula Sul field in Mahogany B hub.
shot in 2015 that identified geophysi- the deepwater Santos basin. (Courtesy Petrobras) Offshore Brazil, Spectrum recently
cal characteristics consistent with po- Below: FPSO Cidade de Caraguatatuba MV27 is in operation at completed the 10,998-mi (17,700-km) San-
tential oil or gas effects in the target the Lapa field in the presalt Santos basin. (Courtesy MODEC) tos Campos Phase 2 2D seismic survey.
reservoirs. A 965-sq mi (2,500-sq km) The new acquisition program is an out-
3D seismic survey is under way over board extension of the companys 2012
block 15 in the Pelotas basin offshore Santos Campos Phase 1 survey, and ties
Uruguay. Offshore Jamaica, following other programs in the Santos, Campos,
the completion of a drop core and seep and Espirito Santo basins. The survey
study in the Walton Morant blocks that was acquired with a 39,369-ft (12,000-
identified a live oil seep, the company m) cable to record data necessary to
will acquire a further 422 mi (680 km) understand basin architecture as well as
of 2D seismic data before determining to image prospective zones in the presalt
whether to follow up with a 3D survey. section. Data processing is under way
Offshore Colombia, Anadarko Pe- in Spectrums Houston processing cen-
troleum Corp. discovered gas with the ter. Pre-stack time migration, pre-stack
Purple Angel-1 exploration well in the depth migration (Kirchhoff and RTM)
Caribbean deepwater, located less than and broadband products are expected
3 mi (5 km) from 2015s Kronos-1 dis- to be available in 2Q 2017. The comple-
covery. According to partner Ecopetrol S.A., the Kronos field is now tion of this campaign provides new long-offset data over prospective
estimated to have a gas column of at least 1,706 ft (520 m). Anadarko presalt basins in time for an anticipated round in 2017. The new data
also operates offshore blocks COL1, COL2, COL6, and COL7 where extends coverage over an under-explored area of the presalt explora-
it has identified numerous prospects from the 11,583-sq mi (30,000- tion province.
sq km) Esmeralda 3D seismic survey. The company is preparing to Earlier this year, Keppel FELS Brasils BrasFELS shipyard delivered
evaluate drilling locations for possible wells during 2018. the FPSO P-66 to the Petrobras-led Tupi BV consortium. The vessel
Off the Falkland Islands, operator Premier Oil continues to work will be deployed in the Lula Sul field in the deepwater Santos basin. The
with its four main contractors and prospective well services and logis- FPSO has a production capacity of 150,000 b/d of oil and 6 MMcm/d
tics providers to optimize facilities design for the proposed Sea Lion of gas, and an oil storage capacity of 1.6 MMbbl. BrasFELSs work
oil field development in the offshore North Falkland basin. Recent scope included fabrication, integration, testing, and commissioning
achievements include optimization of the single drill center subsea of topsides modules.
layout to lower installation costs. As a result of this work, the company The shipyard has two other ongoing FPSO projects: P-69, a looka-
has downgraded its pre-first oil capex estimate from $1.8 billion to like to the P-66, and Cidade de Campos dos Goytacazes MV29. When
$1.5 billion. Field support services costs are also decreasing, includ- completed, the FPSO Cidade de Campos dos Goytacazes MV29 will
ing supply boats, helicopters, and shuttle tankers. As a result, field have the capacity to process 150,000 b/d of oil and 5 MMcm/d of
operating costs for Sea Lion are now estimated at $15/bbl, down from gas. The units storage capacity is 1.6 MMbbl of oil. Slated to depart
more than $20/bbl previously, while the total project breakeven cost the shipyard in 3Q 2017, the FPSO will be deployed at the Tartaruga
has dipped below $45/bbl (against an earlier estimate of $55/bbl). Verde and Tartaruga Mestia fields in the Campos basin.
Premier has put together bid packages for the drilling and subsea Not only did Petrobras oil production in Brazil set a record by
production systems and various logistics items, which it plans to issue averaging 2.14 MMb/d in 2016, but also the company achieved its
to the market when appropriate in order to enter into binding agree- production targets for the second successive year. Plus, its operated
ments. Its overall strategy remains a phased development of its North production in the presalt layer increased 33% to an average of 1.01
Falklands basin discoveries, starting with Sea Lion Phase 1 which MMb/d. For 2016, the company reported production growth from the
will recover 220 MMbbl from license PL032. The subsequent Phase Lula field (Iracema Norte and Iracema Sul areas, via the FPSOs Cidade
2 development will recover a further 300 MMbbl from the remaining de Itagua, Cidade de Mangaratiba, Cidade de Maric, and Cidade
reserves in the license and satellite accumulations in the north of the de Saquarema), from the Sapinho field (FPSO Cidade de Ilhabela),
adjacent PL004. A further 250 MMbbl could be attained from low-risk, and from the Lapa field (FPSO Cidade de Caraguatatuba), all in the
near-field exploration prospects any discoveries might be included presalt Santos basin. Plus, there was strong growth at the Parque das
in either of the first two phases. Phase 3 will entail development of the Baleias area (P-58) in the Esprito Santo sector of the Campos basin.
Isobel/Elaine fan complex in the south of PL004, subject to further After a two-year hiatus, Petrobras is expected to resume ordering
appraisal drilling. Premier and partner Rockhopper Exploration have FPSOs, according to analyst Energy Maritime Associates. One for
submitted an environmental impact statement and revised draft field the Libra pilot project and the other for Sepia.
1705OFF_47 47 4/11/17 3:59 PM

DRILLING & COMPLETION
Managed pressure drilling helps

address narrow pressure window
Derrick Lewis
Halliburton
N
arrow pressure windows are increasingly common when drill-
ing in mature deepwater fields, posing a formidable challenge.
This condition is characterized by a small difference between
the pore pressure the fluid pressure inside rock pores
pushing out and the fracture gradient the fluid pressure
needed outside the rock to fracture it. When using conventional drilling
techniques, a small change in wellbore pressure can represent the
difference between profitable success or costly failure. Common risks
include borehole instability, pressure cycles that require breakouts,
downhole mud losses, surge and swab effects, and even kicks. When
market conditions are difficult, the thin margin for error means the
risks are even more pronounced.
Fortunately, narrow pressure windows can be addressed using
managed pressure drilling (MPD), a technique to precisely control the
annular pressure throughout the wellbore. MPD is basically a tool to
manage equivalent circulating density. It has revolutionized drilling in
the major deepwater and ultra-deepwater areas, such as Brazil, West
Key components of the MPD system: high-pressure Coriolis meter in flowline
Africa, the North Sea, and the Gulf of Mexico, where it has been used
between rotating control device and choke manifold. (Courtesy Halliburton)
for more than 10 years. Coupled with early kick detection, the technique
helps operators avoid issues caused by narrow pressure windows. Maintaining control of the operating hydraulic window during trips
One recent instance occurred when Halliburton completed W&T was crucial to controlling fluid losses and kicks. The hydraulic model
Offshores MPD operation in the Gulf of Mexicos Mahogany field, where enabled real-time changes to the equivalent mud weight, as well as
the water depth is approximately 370 ft (113 m). The operator encoun- pumping and spotting the kill mud in stages, thereby reducing the
tered a narrow pressure window of one pound per gallon resulting from amount of mud needed to pull out of the hole. These efficiencies re-
depletion of the upper reservoir. It was necessary to drill serval intervals duced drill time and mud volume, thus reducing costs for the operator.
safely and effectively, and the operators main drivers for requesting MPD By design, the well penetrated the known producing intervals,
were risks of borehole instability, mud losses, and drilling challenges. the P and Q sands, in the highest structural position in the fields
The solution entailed use of Halliburtons latest GeoBalance man- history, enabling a future attic-recovery project in an area of the field
aged pressure drilling services. The suite of solutions includes the GB with good water drive and recovery efficiency.
Setpoint hydraulic control system, which provides precise, real-time While drilling the depleted P sands, losses were briefly encoun-
monitoring of multiple points and fluid properties along the wellbore, tered but quickly mitigated, avoiding a potentially costly event. The
enabling accurate control of bottomhole pressure. The system allows rapid mitigation was a result of the operators detailed knowledge of
for automated control and pressurized circulation during the displace- the field and the Halliburton teams experience in early event detec-
ment process and the operational phase of drilling. tion a testament to the value of close collaboration.
The GB Setpoint control system is powered by DFG drilling fluids graph- After drilling and casing the Q and T sand sections, an explor-
ics software, which provides a hydraulic model to track the density and atory tail of approximately 950 ft (290 m) was drilled beneath the
rheology of the fluids in real time, enabling immediate calculation of the main well target; this led to the discovery of an additional pay interval
proper surface pressure for maintaining the required downhole fluid density. called the U sands and extended the vertical column to previously
For this operation, fluid densities were designed to be slightly higher unpenetrated reservoirs. Ultimately, the MPD operation achieved the
than pore pressure, with the control system ensuring constant bot- operators well objectives in the primary target zone, logging 149 ft
tomhole pressure for safe and efficient drilling of the intervals without (45 m) of pay in a total of five reservoirs.
losses or kicks. The solution required that the borehole pressure at the Looking ahead, the success of the operation is expected to generate
point of control remain constant while circulating and when pumps were additional drilling opportunities, including extension of the main T
off. This approach also helped eliminate nonproductive time associated sand section, a crestal development well for the western P and Q
with borehole instability and mud losses. attic areas, and deeper drilling to exploit the new U sands.
The MPD solution proved successful. The team safely drilled four sec- In addition to the GeoBalance service solutions, equally important
tions totaling 7,172 ft (2,186 m) in subsalt strata, reaching a total measured for the operations success were careful planning, solid design of
depth of 19,494 ft (5,942 m). Overcoming formidable risks, the project service, and meticulous documentation.
helped the operator maximize the asset value by not only achieving the Drilling the well without this particular MPD system would have
scoped objectives but also reaching a new pay zone in the formation. been extremely difficult, risky, and costly.
1705OFF_48 48 4/11/17 4:05 PM

The operator noted that because of the correct application of measures density and rheology in real time. To maintain a well within
technology and the proper expertise, the operation exceeded expec- the hydraulic window, modeling a MPD scenario entails calculating
tations and helped clarify the abundant potential of the Mahogany surface pressure using an algorithmic equation:
field. Tom Murphy, W&T Offshores COO, noted that the A-18 suc-
Borehole Pressure
cess exceeded our pre-drill expectations and underscores the large
potential in the prolific Mahogany T sand. It achieved our main well (Hydrostatic Pressure + Friction + Surface Pressure Loss + Surge/Swab)
objectives in the primary target zone and logged 149 ft of pay in a total =
Surface Pressure
of five reservoirs. By design, the well penetrated the fields historic
producing intervals the P and Q sands in the highest structural Hydrostatic pressure is based on corrections for thermal effects on
position in the fields history. This sets up an attractive attic recovery the fluids downhole, which is crucial in deepwater and high-pressure/
project in an area of the field with good water drive characteristics high-temperature operations, where actual bottomhole densities vary
and recovery efficiency. significantly resulting from fluid heat transfer.
Murphy continued: Our exploratory tail has confirmed the presence Creating an accurate model requires precise measurement of mud
of hydrocarbon-bearing sands in a trapped position beneath our cur- temperature, density, and rheology data that are crucial for accurate
rently productive T sand and further extends the vertical column in calculations, modeling, and decision-making, particularly when time
the field to these previously unpenetrated reservoirs. The wells success is of the essence.
is expected to generate several high-quality additions to our organic Consider the converse: the lower temperature of a mud sample
drilling inventory, including a future extension of the main T sand measured sometime after it has been drawn can lead to inaccurate
based on this most recent penetration, a crestal development well op- thermal correction in hydrostatic calculations. Moreover, mud systems
portunity to exploit the western P and Q attic area, and deeper drilling are constantly being treated, diluted, or weighted, significantly altering
opportunities to exploit and target the newly discovered deep U sand. overall mud properties, which then impact downhole pressures. An
Tracy Krohn, W&T Offshores chairman and CEO, said that the A-18 unaccounted pressure variance of 100 psi in a MPD operation could
well allowed the company to acquire its first core data from this impor- lead to undesirable influxes or losses.
tant reservoir with rock permeability estimated to exceed one darcy, As such, timing is key. Automating fluid property tests in real time
confirming the excellent flow potential of this exceptional reservoir. yield more precise and dependable measurement of drilling fluid
To provide even more automation and control to MPD, Halliburton properties, which enable more immediate modeling and decision-
is pairing the GeoBalance service solution with its BaraLogix ap- making. BaraLogix service facilitates this accurate acquisition of
plied fluids optimization service density and rheology unit (DRU). data, and paired with the GeoBalance service suite, is expected to
The DRU itself is a fully automated, compact skid-mounted unit that significantly improve MPD operations.
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1705OFF_49 49 4/11/17 4:05 PM

New drill bit designs

aim to enhance efficiency
Manufacturers look to increase ROP, tool life
Staff Report
D
ownhole service firms and drill bit
manufacturers are continuing to de-
velop new products and technologies
that can help operators and drillers
improve efficiency, even as the market
downturn has slowed drilling activity. These
new technologies are designed to offer faster,
more consistent rates of penetration (ROP),
longer tool life, and improved well efficiency.
One recently announced technology is the
TerrAdapt adaptive drill bit developed by Left: The Cruzer depth-of-cut rolling element is designed to increase tool face control without reduc-
Baker Hughes. The company says that this ing drilling efficiency. (Courtesy Halliburton) Right: The TerrAdapt adaptive drill bit is designed to
new bit can deliver dramatic improvements automatically adjust to changes in geological formations. (Courtesy Baker Hughes)
in drilling economics by using automation to
mitigate downhole dysfunctions that cause dramatically increase drilling costs by reduc- veloping to help operators address various
inefficient drilling and costly tool failures. ing ROP, and can seriously damage the bit and drilling dysfunctions, improve performance,
Baker Hughes says that with the industrys other expensive mechanical and electrical and reduce costs.
first self-adjusting depth-of-cut (DOC) control bottomhole assembly (BHA) components. Last year, Schlumbergers Smith Bits re-
elements, the TerrAdapt bit automatically When this happens, operators have to make leased the AxeBlade ridged diamond element
changes its aggressiveness based on the for- extra trips to replace the bit/BHA, or continue bit, which incorporates new geometry Axe-
mation through which it is drilling to mitigate to drill with diminished performance. ridged diamond elements across the bit face.
vibrations, stick-slip and impact loading. The TerrAdapt bit incorporates self-ad- The company says that AxeBlade bits improve
The company notes that while the vast justing DOC elements that autonomously ROP in a wide range of formations and steer-
majority of well intervals are drilled through extend to create an optimal DOC based on the ing response in directional applications. The
a variety of formations containing layers of formation, preventing vibrations and stick-slip company says that the AxeBlade offers a PDC
different rock types, in many cases polycrys- when the bit transitions between rock bit that provides differentiated performance
talline diamond compact (PDC) types or sections. When the risk in ROP. The cutting efficiency delivered by
drill bit designs feature a fixed of stick-slip has passed, the ele- the bit is designed to help reduce the cost of
DOC control setting that is op- ments retract, enabling drilling drilling operations.
timized for only a single rock to resume at a maximum ROP. The latest generation of Smith Bits three-
type. A fixed-DOC bit will drill The elements also absorb any dimensional cutting technologies, Schlum-
smoothly in some areas but sudden shock to the bit face, berger says that the Axe elements have a
will perform erratically and significantly reducing damage specially designed ridge shape that combines
inefficiently in others due to to the TerrAdapt bits cutters the shearing action of a conventional PDC bit
vibrations that occur when the and other BHA hardware and with the crushing action of a roller cone bit.
bit transitions between different electronics. The company also says that the geometry of
rock types, causing stick-slip. Baker Hughes says that the the element breaks rock more efficiently, re-
During stick-slip events, Baker TerrAdapt bit is the first in a new quiring 30% less force; and delivers improved
Hughes explains, the bits bite be- line of adaptive bits that it is de- control compared with conventional PDC
comes too aggressive, causing it cutters when drilling directionally.
to stick and stop rotating, while Earlier this year, Halliburton released its
the drillpipe behind it continues to The ReedHycalog Tektonic drill bit Cruzer depth-of-cut rolling element, a drill
platform can be employed in both
wind up like a spring until the bit re- bit technology that is designed to increase
shale and deepwater applications.
leases, or slips, and begins spinning (Courtesy NOV)
tool face control without reducing drilling
uncontrollably. These stick-slip events efficiency. The company says that this design
1705OFF_50 50 4/11/17 4:05 PM

provides operators with the ability to increase

their ROP at a lower cost per foot for improved
economics. The AxeBlade ridged diamond
The feature is available on Halliburtons element bit incorporates new-geometry
PDC drill bits which are designed for high Axe ridged diamond elements across
the bit face. (Courtesy Schlumberger)
abrasion and impact resistance in challenging
formations. When Cruzer technology is incor-
porated, depth-of-cut control is maintained
throughout the bit run, Halliburton says. The
rolling element is designed to be especially Technical Standard (BITS). The firm says
effective in applications that require more that the new standard provides inspection
stabilized control of the directional drilling procedures and acceptance criteria for fixed-
process. cutter bits, including PDC, diamond, coring,
Additionally, the rolling elements small size drilling-with-casing, and bi-center bits.
allows this feature to be incorporated into new The firm says that the DS-1 BITS standard
or existing designs that enable easy repair of will benefit any company that is affected by
bits with Cruzer technology. Operators will the inspection and use of bits for drilling ap-
realize lower friction levels and heat genera- plications. For bit manufacturers, products will
tion for greater efficiency and reliability, the bit platform combines advanced bit body ge- undergo reliable inspection each time, increas-
company says. ometry and a cutter layout with enhanced ing the quality of end products and ensuring
Halliburton also notes that its drill bits are hydraulic design and the latest generation of consistency in the procedures used by each
developed through a proprietary process PDC cutter technology, to maximize drilling inspector. For bit users, a quality inspection
called Design at the Customer Interface which efficiency. process will provide confidence that each bit
customizes each bit for an operators specific Meanwhile, standards-setting firms have has undergone the same rigorous inspection
application. been working to advance new guidelines for program.According to T H Hill Associates,
NOV continues to advance its ReedHycalog drill bit inspection and acceptance. On this this standard will give bit inspectors a one-stop
Tektonic drill bit platform, which it says can front, T H Hill Associates, a Bureau Veritas source for the entire bit inspection process,
be deployed for both shale and deepwater company, has introduced a new drilling stan- one that simplifies training of new employees
applications. The company says that the drill dard in the DS-1 group: the Bit Inspection and provides consistent service.
Advertorial
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Atlas Professionals provides services across 17 separate business lines in the

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personnel.
We are acutely aware that over the past two years, over 200,000 energy sector
workers have been laid off, and that less than 15% have been re-hired in the sector,
explains Atlas Vice President in Houston, Laura Smith. There will be a greater focus
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For more information, please contact Laura Smith.

Email: lsmith@atlasprofessionals.com
Tel. +1713-425-0194
1705OFF_51 51 4/11/17 4:05 PM

E N G I N E E R I N G , C O N S T R U C T I O N , & I N S TA L L AT I O N
Integrated milling, underreaming approach

streamlines P&A operations in North Sea
David Stokes
Schlumberger
A
combination of aging fields with dwindling production
and government regulations around environmental
sustainability is driving a significant increase in well
abandonment activities around the world. This is
particularly true in the North Sea, where in the UK
and Norway alone, more than 1,800 wells are being consid-
ered for abandonment over the next 10 years.
While operators accept that well abandonment is a neces-
sary and inevitable stage of the asset lifecycle, they also want
to ensure that every well is P&Ad as quickly, cost effectively,
and safely as possible. To address this challenge, Schlum-
berger recently introduced the ProMILL trip-saving milling
and underreaming system to provide the technologies that
increase economic feasibility and innovation to this sector.
Managing North Sea compliance

Cost and regulatory concerns weigh heavily on each well
decommissioning project. A recent survey in the Oil & Gas
UK Decommissioning Insight 2016 found that the average
P&A expenditure in the northern North Sea is estimated
to be nearly $4.1 million per platform well.
Abandonment regulations in the UK sector call for a Potential leak paths, including channeling, microannuli, and mudcake occur due to
permanent abandonment barrier that effectively mimics a poorly executed cementing operations. (Images courtesy Schlumberger)
restoration of the cap rock. Best practices require a height
of at least 329 ft (100 m) measured depth of quality cement, which the well in situ and a rigless, thru-tubing P&A operation to be used
extends across the full cross section of the wellincluding annuli to perforate and squeeze cement.
to seal both vertically and horizontally. Such a barrier must ensure In the event the well contains subsurface safety valve control lines,
long-term stability and strength to isolate the formation and contain chemical injection lines, or electrical transmission cables strapped
any future formation pressure buildup. to the tubing, the possibility of a rigless thru-tubing intervention is
Due to the age of many of these wells, operators have to contend subsequently ruled out. This, coupled with a lack of cement logs to
with uncertainties regarding the quality and structural integrity of the determine cement quality, can necessitate a more complex level of
casing string and the existing cement. Failure to understand these remediation from a rig and recovery of wellbore tubulars for access
issues and account for them in the plugging operation could lead to and logging purposes.
the creation of several leak paths, such as microannuli or channels at To remove the tubulars ahead of subsequent plugging operations,
the interface between the casing and the cement, corrosion-induced several North Sea operators have collaborated with Schlumberger
cracks in the casing, and flow channels at the cement and rock wall to deploy various fishing, milling, and cutting technologies that open
interface. access to the isolation zone of interest.
If these issues are not addressed during the initial P&A operation, In one instance, collaboration enabled the development of a standard
the operator would have to return to the well in the future to remediate abandonment procedure for the operators wells, many of which required
the issue and permanently seal off the formation. This comes at a cost full tubular recovery due to the presence of multiple over-pressured
and regulatory burden that is much higher than it was the first time. zones that called for a primary and secondary cement barrier.
The impact of a leaking abandoned well includes clean-up costs, steep The general abandonment steps include:
regulatory non-compliance fines, and reentry costs that are typically 1. Complete the lower abandonment and reservoir isolation.
several multiples higher than initial P&A costs. 2. Cement bond log (CBL) of the zone of interest for subsequent
barriers. In the event poor annular cement in a critical area is
Ensuring efficient abandonment identified, an increased level of remediation is required.
The level of work required to properly abandon a well is driven by 3. Set a 958-in. bridge plug.
a combination of the well design, current well status, and regulatory 4. Section mill the 958-in. casing for an 85-150-ft (26-46-m) zone.
requirements. Wells with simpler designsand high-quality cement as 5. Underream the hole section beyond the original drilled hole size
confirmed by cement bond and the USI ultrasonic imager logsmay to remove all cement and expose virgin formation, thus eradicat-
allow for a simpler abandonment strategy that would keep most of ing all interfaces where the abandonment plug will be placed.
1705OFF_52 52 4/11/17 4:05 PM

6. Set cement plugs, conduct mechanical and pressure tests.

7. Cut, pull, and mill the 958-in. casing to gain access to the 1358-in.
casing for logging the annular cement.
8. In the event that the CBL identifies a poor annular cement job
in a critical area, set a 1338-in. bridge plug.
9. Section mill and underream the 1338-in. casing in a similar man-
ner to the 958-in.
10. Set cement plugs, conduct mechanical and pressure tests.
11. Cut and pull the 1338-in. casing for removal of surface infra-
structure.
Applying ProMILL system

The industry standard for placing a bridge plug, milling, and under-
reaming a section is a three-step process requiring the separate deploy-
ments of the mechanical plug, the milling tool, and then an underreamer
in subsequent trips. Not only does this method add time to the overall The ProMILL trip-saving milling and underreaming system combines
P&A process due to extra trips in and out of hole, it also increases HSE a bridge plug assembly, a section mill, and a high-ratio underreamer.
risks due to the additional tubing-handling steps required on surface.
As an alternative solution to the conventional multi-trip P&A approach, of 32 hours of rig time associated with tripping in and tripping out to
Schlumberger introduced the ProMILL milling and underreaming change out tools on the drillstring.
system that combined the setting of a bridge plug, milling and under-
reaming steps in a single dedicated bottomhole assembly to achieve the Case studies
remediation operation in one trip. The approach incorporates a bridge In one recent offshore platform well in the northern North Sea,
plug kit, a section mill, a hydraulic downhole tool specially designed the integrated offering and close collaboration between the client
for milling casing to set rock-to-rock well abandonment cement plugs, and Schlumberger enabled the operator to stay 3.5 days ahead of
and an underreamer to clean out the zone of interest. the planned time, eliminating $600,000 from planned rig P&A costs.
The section milling tool has six arms dressed with WavEdge ridged The integrated P&A solution objectives achieved were:
milling elements that have been optimized through a lifecycle of re- A 958-in. bridge plug successfully set on the ProMILL BHA,
search and development and product engineering development. Each eliminating a dedicated trip.
milling element features a concave shape,
which has been demonstrated to enhance
cutter durability and stability during milling
operations.
The benefits included an increase in mill
control and a reduction in harmful dynamic
vibrations and stress. With energy losses
better managed and mill stability improved,
there is a step-change in the swarf quality
produced. With an improvement in swarf
quality, the wellbore cleaning is enhanced,
which has also led to an increase in the rate of
penetration (ROP) during milling operations.
Once milling is complete, a high-ratio un-
derreamer (HRU) is activated in the same
bottomhole assembly (BHA) via ball-drop
activation from surface. The HRU has a high
blade reach relative to the tool body diameter.
This allows the underreamer to easily drift
through the narrow casing restriction and
then open the hole to minimum of 0.5 in. over
the original hole size, while cleaning out any
old cuttings, contaminants or mudcake from
the original well construction. Moving energy made easy:
The efficiency of the milling and under- DNV GL certification, from stock, from 1 m!
reaming process is further enhanced by de- World's first offshore and shipboard approval for cables in permanent use in e-chains .

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1705OFF_53 53 4/11/17 4:06 PM

milling elements had considerable milling capabil-

ity beyond the job requirements of 150 ft (46 m).
The window was completed in 50 hours and set
two important records: the longest single-run win-
dow milling, section undereaming and bridge plug
setting, and the longest single-run milled window.
This high performance and success was repeated
on a subsequent well whereby the objective consist-
ed of section milling two windows of approximately
100 ft (30 m) in the 1338-in. casingacross two shale
formations. Each openhole section would then need
to be underreamedin a single tripto enable the
placement of a rock-to-rock abandonment cement
plug against the original formation.
The integrated P&A solution effectively displaced
The tandem milling and underreaming method avoids the steps of retrieving the section mill and conditioned the well and delivered each of the
BHA, making up the underream BHA and running back in hole, which equates to an average two formation windows in a single trip as required:
of 32 hours of rig time saved for the milling and reaming operation alone. the first at 109 ft (33 m) in length and the second
at 100 ft (30 m) in length.
Displaced and conditioned the well to a milling fluid program with During milling, the operator achieved an ROP of 4.2 ft/h (1.3 m/h),
the WELL COMMANDER ball-activated drilling circulating valve. representing a 40% increase compared with 3 ft/h (0.9 m/h)the aver-
Section milled 150-ft (46-m) of 958-in. casinga global record to age ROP of the operators jobs completed in the field. In this well, the
complete this in a single trip. operator recorded an overall cost reduction of 7.5 days and $1 million.
Underreamed 140-ft (43-m) to a hole diameter of 13.5-in. The ProMILL systems efficacy played an integral role in this
During milling, the operator achieved an ROP of 4.5 ft/h (1.4 m/h), achievement. For the fourth consecutive well, the operator experienced
representing a 50% increase compared with 3 ft/h (0.9 m/h), the aver- zero HSE events during the abandonment. The efficiency gains of the
age ROP of the operators jobs completed in the field. The knife wear new system and the WavEdge milling elements were clear and evident,
on the ProMILL system was 20%-30%, which was lower than had been which led to continual growth into new well abandonment operations
previously seen in similar operations and demonstrated the WavEdge in the North Sea and beyond while remaining HSE incident-free.
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1705OFF_54 54 4/11/17 4:06 PM

Deepwater production outlook offers

both challenges and opportunities
Christopher M. Barton
Wood Group
Aaron Osborn
Wood Mackenzie
T
he production of oil and gas in deepwa-
ter appears to have rebounded slightly
in 2016 from its nadir in 2014. Unlike
onshore production, however, momen-
tum for increasing the fleet of floating
production units (FPUs) is not immediate. A
global supply inventory has kept oil prices from
increasing to pre-downturn levels and budgets
for new floating facilities are modest, at best.
Pre-FID deepwater project breakevens have
come down 20% since mid-2014, but it is still
Jack/St Malo was the last major semisubmersible FPU to reach first production in December 2014.
not enough for most developments to move
(Courtesy Wood Group)
forward. High capital costs are prevalent as are
the longer cycle life of deepwater FPU devel- delayed from 2016. Statoils Aasta Hansteen spar, genuity and perseverance, now operates in
opment from field discovery and its validity originally projected for late 2016 operation, has 9,500 ft (2,896 m) of water, approximately 1,000
through appraisal drilling, to project sanction, been shifted to first production in 2018. When ft deeper than the next deepest floating facility
to multi-year FPU construction and installation it reaches that milestone, it will be the first spar of any kind. Three Petrobras FPSOs reached
for reaching first production. This evolution- operating in Norwegian North Sea waters. In first production as well. The Cidade de Marica,
ary process can take a decade or longer. With late 2016, the industry sanctioned the first new Cidade de Saquarema, and Cidade de Caragua-
those obstacles in place, forward movement, in floating production unit in 18 months, Mad Dog taratuba are now all operating offshore Brazil
unsure market conditions, can lead to hesitancy. Phase 2. The semisubmersible will operate in in the Lula and Lapa fields in water depths ex-
the US Gulf of Mexico beginning in 2022. ceeding 6,900 ft (2,104 m). Another significant
Minor year-to-year growth FPSO startup in 2016 was the Professor John
Since publication of the last Deepwater Solu- FPSOs lead the way Atta Mills operating for Tullow Oil in the TEN
tions and Concept Selection poster in May 2016, As expected, the major growth during 2016 development offshore Ghana. In early 2017,
there have been few notable deepwater startups. in floating production systems was in FPSOs. Bumi Armadas Armada Olombendo started
The Malakai tension leg platform (TLP) reached Shells much anticipated FPSO Turritella producing offshore Angola for Eni.
first production in December, becoming the first reached first production in September in the
such facility offshore Malaysia. Totals Moho Gulf of Mexicos Stones field. This vessel, Delays are inevitable
Nord TLP went onstream in March after being demonstrating the industrys engineering in- Unstable market conditions during the
past two-plus years have necessitated post-
ponements, cancellations and extension of
projected first production dates for FPUs
previously sanctioned. The FPSO Armada
Kraken, originally scheduled for first produc-
tion in late 2016, just reached that milestone,
some six months later than planned. Petrobras
has been a prime example of this negative low
price impact. Its original plan of constructing
eight replicated FPSOs has been significantly
scaled back with the cancellation of three
vessels. Of the remaining five, fabrication has
been moved from a local Brazilian fabricator
Wood Groups Project Intrepid applies lean prin-

ciples to engineering work processes and project
execution. (Courtesy Wood Group)
1705OFF_55 55 4/11/17 4:06 PM

One Wood Group. One Choice.
Full asset life cycle solutions.
We provide smart technical solutions which create

and sustain value for our customers. www.woodgroup.com
World Record Subsea Tiebacks Sanctioned, Installed, Operating or Future Tiebacks (Water Depth vs. Tieback Distance) As of March 2017 CHART 1: OFFSHORE DEEPWATER FLOATING PRODUCTION FACILITIES SUPPLIER MATRIX Past & Present (Proven & Qualified Companies as of March 2017) COURTESY:
DEEPWATER SOLUTIONS
(0 km) (8.05 km) (16.1 km) (24.1 km) (32.2 km) (40.2 km) (48.3 km) (56.3 km) (64.4 km) (72.4 km) (80.5 km) (88.5 km) (96.6 km) (104.6 km) (112.7 km) (120.7 km) (128.7 km) (136.8 km) (144.8 km) (152.9 km) (160.9 km)
2017 DEEPWATER SOLUTIONS &

69.8 km 149.7 km SPARS & SPAR ALTERNATIVES (2) SEMI FPSs / FPUs TLPs FPSOs
0' (0' m)
US MMS Definitions:
BPs Machar
Statoils Mikkel
Shallow
22.0 (35.3 km) TOPSIDES
24.3 (39.2 km) HULL TOPSIDES FABRICATORS FABRICATORS TOPSIDES FABRICATORS FABRICATORS HULL TOPSIDES FABRICATORS FABRICATORS CONVERSION NEW BUILD PROJECT MGMT & TURRET
738.1' (225 m)
738' (225 m) HULL DESIGNERS FABRICATORS/
DESIGNERS ENGINEERING (9) HULL TOPSIDES ENGINEERING (9) HULL TOPSIDES DESIGNERS ENGINEERING (9) HULL TOPSIDES SHIPYARDS SHIPYARDS - HULLS ENGINEERING SUPPLIERS
RECORDS FOR CONCEPT SELECTION

ATPs Ladybug Record Distance for INTEGRATORS
1,000' 18.0 (29.0 km)
1,355' (413 m)
Oil SS Tieback
Statoils Snhvit
(304.80 m) Aker Solutions (1) Aker Solutions (1) Gulf Marine Fabricators Daewoo Shipbuilding Aker Solutions Aker Solutions BraFELS (5) BraFELS (5) Aker Solutions Aker Solutions (1) BraFELS (5) Dragados Offshore BraFELS (5) Atlantico Sul Shipyard Aibel AS Bluewater
World Record for Gas Compression SS Tieback: Shells Penguin A-E BG Internationals Sapphire Norway Norway Ingleside, Texas & Marine Engineering Norway Norway Brazil Brazil Norway Norway Brazil Altirmira, Mexico Brazil Brazil Aibel AS Thailand & Norway Houston, Texas
43.4 (69.8 km) 89.0 (143 Km) (DSME)
Asgard (Midgard & Mikkel) 70.8 (114.0 km) Thailand & Norway
Mariners Pluto 574' (175 m) 1,131.9' (345 m) Bennett Offshore AMEC Foster Wheeler Hyundai Heavy Geoje Island, South Korea Bennett Offshore Audubon Engineering CIMC Raffles DYNA-MAC Doris Engineering Audubon Engineering COSCO Shipyard Group DSME Chengxi Shipard BraFELS (5) Aker Solutions LMC (London Marine
23.3 (39.2 Km) 1,640' (500 m)
Shells Manatee 984' (300 m) 28.6 (46.0 km) BG Internationals Scarab/Saffron Houston & New Orleans Houston, Texas Industries (HHI) Houston & New Orleans Solutions China Singapore Paris & Houston Solutions Qidong Shipyard Geoje Island, South Korea (Xinrong) Co., Ltd Brazil Atlantico Sul Shipyard Norway Consultants)
17.0 (27.4 km) 2,900' (884 m) 55.9 (90.0 km) Ulsan, South Korea Dragados Houston, Texas Houston, Texas Jingjiang City, China Brazil London, England
2,000' Shells Habanero 1,940' (591 m) Nobles Lost Ark 2,040' (622 m) BG Internationals Simian/Sienna Totals Laggan-Tormore
(609.60 m) FloaTEC Audubon Engineering Cadiz, Spain Doris Engineering COSCO Shipyard Group DSME FloaTEC (3) DSME Gulf Island Fabricators COSCO Goup Shiyard Bechtel
11.5 (18.5 km) 27.0 (43.5 km) Houston, Texas Solutions Malaysia Marine & Heavy Paris & Houston CB&I Dalian Shipyard Geoje Island, South Korea Houston, Texas CB&I Geoje Island, South Korea Houma, LA COSCO Shipyard Group Nantong, China BraFELS (5) Houston, Texas NOV-APL
Enabling Technologies for Deepwater Production May 2017

70.8 (114.0 km) 88.9 (143 km)
2,015' (614 m) 2,700' (823 m) Pioneers Falcon Houston, Texas Engineering (MMHE) Dragados Offshore Houston, Texas Qidong Shipyard Houston, Texas Dalian Shipyard Brazil Houston, Texas
2,133' (650 m) 1,980' (603.5 m) Pasir Gudang, Malaysia Altirmira, Mexico Qidong Shipyard
30.0 (48.3 km) Houston Offshore Exmar Offshore Gulf Island Fabricators HOE Keppel FELS Gulf Marine Fabricators COSCO Shipyard Group Blackstone Process
Deepwater
3,400' (1,036 m) Engineering (4) CB&I Houston, Texas Doris Engineering DSME Houma, LA Houston, Texas Doris Engineering Singapore Ingleside, Texas Dalian Shipyard COOEC Solutions Orwell Offshore
Houston, Texas Houston, Texas McDermott Gulf Island Fabricators Paris & Houston Geoje Island, South Korea Paris & Houston Drydocks World Qidong Shipyard Kuala Lumpur, Malaysia UK, Malaysia, Singapore
3,000' Shells Oregano Shells Macaroni
11.8 (19.0 km)
Pioneers Tomahawk (914.40 m) Batam Island, Indonesia Houma, LA Friede & Goldman, Ltd. Gulf Marine Fabricators MODEC MMHE HHI Dubai, UAE
China
8.0 (12.9 km) Chevrons Gemini 35.0 (53.1 km) Shells Ormen Lange TechnipFMC KBR Jebel Ali, UAE KBR HHI KBR DSME Bluewater Offshore SBM Offshore
3,685' (1,123 m) Houston, Texas Ingleside, Texas Houston, Texas Johor, Malaysia Ulsan, South Korea Dragados Offshore
Prepared by: Christopher Barton and Heather Hambling of Wood Group; E. Kurt Albaugh, P.E. Consultant; 3,400' (1,036 m) BPs Aspen
16.0 (25.8 km)
28.0 (45.1 km)
3,488' (1,063 m)
3,500' (1,067 m) Pioneers Raptor
40.0 (64.4 km)
62.0 (100.0 km)
3,608' (1,100 m) Norsk Hydros Ormen Lange
Houston, Texas Houston, Texas
TechnipFMC
Gulf Marine Fabricators
Ingleside, Texas FloaTEC
Houston, Texas Ulsan, South Korea
HHI SBM OFFSHORE
Houston, Texas
SembCorp Keppel FELS
Hantong Shipyard
China
Geoje Island, South Korea Altirmira, Mexico Hoofddorp, Netherlands Houston, Texas
Pori, Finland
Water Depth Feet/(m)

3,150' (960 m) WorleyParsons McDermott Kvaerner Kvaerner Stord AS McDermott Dalian Shipbuilding BW Offshore SOFEC
Bob Mahlstedt of RamMark Services; and David Davis of Offshore Magazine. 4,000' ExxonMobils Marshall Shells Europa
20.0 (32.2 km)
3,500' (1,067 m) 74.6 (120.0 km)
3,609' (1,100 m) (1,219.2 m) INTECSEA (8) Houston, Texas Heerema Fabrication
Group
Houston, Texas
Oslo, Norway Stord, Norway
Ulsan, South Korea Houston, Texas
Houston, Texas
Singapore Singapore
Inhauma Shipyard
Brazil
Industry
Oshore Co., Ltd. (DSIC)
DSME
Geoje Island, South Korea Oslo & Arendal, Norway Houston, Texas
7.0 (11.26 km) Shells Crosby ExxonMobils Mica Pioneers Harrier Houston, Texas GustoMSC Kiewit TechnipFMC SHI Kiewit
4,356' (1,328 m) 3,900' (1,189 m) 47.0 (75.6 km) TechnipFMC Holland Schiedam, The Netherlands McDermott Samsung Heavy Ingelside, Texas Houston, Texas TechnipFMC Geoje Shipyard, South Korea Ingelside, Texas Dalian, China DYNA-MAC CB&I Teekay Petrojarl
10.0 (16.1 km) 29.0 (46.67 km)
Graphics by: Chris Jones of Xenon Group, Inc. and Graphic Support by: Jom Kirkland of Wood Group 4,393' (1,339 m) 4,200' (1,280 m) Huskys Liwan Houston, Texas Houston, Texas Industries (SHI) Houston, Texas Jurong Aracruz Singapore Houston, Texas Production & Onesubsea
4,350' (1,326 m) Hyundai Heavy Geoje Shipyard, South Korea Shipyard (6) Ecovix-BG
62.0 (100.0 km) GVA Kvaerner Stord AS Technip MHB Hull Signal Shipyard Kvaerner Stord AS Houston, Texas
ExxonMobils Madison Record Distance for Wood Group Industries (HHI) Goteborg, Sweden TechnipFMC Stord, Norway Engineering (TMH) Wood Group Orange, Texas Stord, Norway Vitoria, Brazil Brazil Estaleiro Rio Grande COOEC
Future Record for Longest Deepwater 4,921' (1,500 m)
Special Thanks to Energy Maritime Associates and World Energy Reports & Wood Mackenzie for supplying reference data. 5,000' 7.0 (11.26 km) Shells Keppler
11.8 (18.96 km) BPs King Multiphase Boosting SS Tieback
Gas SS Tieback
Noble Energys Tamar
(1,524.0 m) Houston, Texas Ulsan, South Korea Houston, Texas SembCorp
Singapore
Kvaerner Verdal AS Kuala Lumpur, Malaysia Houston, Texas Kvaerner Verdal AS
Jurong Shipyard (6) HHI
Brazil Qingdao, China
4,851' (1,479 m) Kvaerner Verdal, Norway Verdal, Norway
5,759' (1,755 m) 17.0 (27.4 km) Murphys Dalmation Shells Mensa 93.0 (149.7 km) WorleyParsons Kiewit Wood Group WorleyParsons WorleyParsons Singapore Ulsan, South Korea Doris Engineering
Nobles Dantzler 13.7 (22.0 km) Ingelside, Texas Oslo, Norway Keppel FELS Shipyard
For additional copies or comments, please e-mail: posters@woodgroup.com or posters@pennwell.com 9.0 (14.00 km) Shells Massa
5,334' (1,626 m)
5,823' (1,775 m)
68.0 (109.4 km)
5,300' (1,615 m)
5,446' (1,660 m) Houston, Texas Houston, Texas
Tampico; Batam, Indonesia;
McDermott INTECSEA (8)
Houston, Texas
Houston, Texas
McDermott
Keppel FELS IHI Corp.
Singapore Paris & Houston
Kvaerner Stord AS MODEC Singapore
6,581' (2,006 m) 11.0 (17.77 km) Houston, Texas WorleyParsons Jebel Ali, UAE Jebel Ali, UAE Japan Kiewit Deltamarin, Ltd
6,000' Shells Ariel 6,561' (2,000 m) Shells East Anstey Shells Herschel Legend: Oil Subsea Tiebacks (1,828.8 m) Stord, Norway Houston, Texas
MMHE Corpus Christi, Texas Turku, Finland
4.74 (7.628 km) 11.0 (17.77 km) SBM Offshore SHI MMHE Jiangnan Shipyard
12.8 (20.7 km) Nobles Gunflint Mariners Bass Lite Future Oil Subsea Tiebacks McDermott Geoje Shipyard, South Korea Johor Baru, Malaysia Pasir Gudong, Malaysia Shanghai, China Friede & Goldman, Ltd.
6,240' (1,902 m) 6,590' (2,009 m) 6,739' (2,054 m) 23.6 (38.0 km) 56.0 (90.1 km) Tampico; Batam, Indonesia; Houston, Texas ONGs
Hadrian Shipyard Houston, Texas
Shells Fourier
6,102' (1,860 m) 6,750' (2,057 m) Gas Subsea Tiebacks Jebel Ali, UAE
TechnipFMC SHI ONGs Jiangsu Hantong Ship Wallsend, UK
Ultra Deepwater
ExxonMobils Hadrian Geoje Shipyard, South Korea Hadrian Shipyard Heavy Industry Co., Ltd. (HT) Global Mariner Offshore
7,000' 10.0 (6.6 km) 16.8 (27.1 km) Anadarkos Spiderman Future Gas Subsea Tiebacks (2,133.6 m) MMHE
Malaysia
Houston, Texas Wallsend, UK Nantong, China OSX Shipyard Services (GMOS)
6,889' (2,100 m) Statoils Q 6,950' (2,118.2m) 24.0 (38.6 km)
11.2 (18 Km) 8,113' (2,473 m)
Dominion Expl.s San Jacinto Oil Subsea Tieback Experience Limit WorleyParsons PT Karimun Keppel FELS
Brazil Kuala Lumpur, Malaysia
Anadarkos Callisto Anadarkos Merganser 34.0 (54.7 km) Totals Canyon Express INTECSEA
Gas Subsea Tieback Experience Limit Samsung Heavy Sembawang Shipyard
5.6 (9.0 Km) Shells Perdido 7,960' (2,427 m) 14.7 (23.7 km) 7,868' (2,399 m) 57.0 (91.7 km)
7,210' (2,198 m)
Industries (SHI) Houston, Texas FPS Systems Awarded from 1997-2016 Karimun Island, Indonesia
Singapore Profab
Singapore
KBR
Houston, Texas
7,900' (2,408 m) 6.2 (10.0 km) 7,934' (2,418 m) Denotes Current World Record for Installed Tiebacks Geoje Shipyard, South Korea (Excludes MOPUs, FSOs, and FSO [LNG]; Production Barges included in FPSO count) L & T Ship Building Ltd
8,000' (2,438.4 m) Notes
M A G A Z I N E 8,008' (2,441 m)
Anadarkos Mondo 20.6 (33.1 km)
Anadarkos Jubilee
Anadarkos Vortex
Record Water Depth
for Gas SS Tieback 1. Aker Solutions contract party is Aker Engineering & SembCorp
SembCorp
Singapore
Kattupalli Shipyard, India Rio Grande 1 Shipyard
Brazil
L & T Valdel
Engineering Ltd.
24.5 (39.4 km) Shells Coulomb Anadarkos Cheyenne Technology AS. Singapore 30 Legend: 100 Mitsui Engineering &
Average Yearly WTI Spot Price ($/bbl)a

12.0 (19.3 Km) 7,868' (2,675 m) 29 India
Record Water Depth ENIs San Jacinto 8,381' (2,555 m) 27.0 (43.5 km) 44.7 (72.0 km) CLASSIFICATION 2. The MinDOC concept is considered as a SPAR alternative. FPSO 27 Shipbuilding Co., Ltd. SAIPEM
9.3 (15.0 km) 8,340' (2,542 m) 7,570' (2,307 m) 26 90 Chiba Works, Japan
9,014' (2,748 m) Semi FPU Karimun Facility MODEC
1455 West Loop South, Suite 400 for Oil SS Tieback 8,300' (2,530 m) 2,748 m SOCIETIES & CVAs 3. ABB Lummus Global sold their eTLP design to FloaTEC in 2005.
25 25 Tamano Works, Japan
9,000' Shells Tobago Anadarkos Atlas NW 9,014' (2,743.2 m) 4. Houston Offshore Engineering, LLC is owned by WS Atkins plc. TLP 24 80 Indonesia Houston, Texas
Houston, TX 77027 6.0 (9.6 km) Shells Silvertip
9.0 (14.4 km)
22.0 (35.4 km)
8,856' (2,700 m) Anadarkos Atlas
93.0 ABS 5. BraFELS is a wholly owned subsidary of Keppel Offshore & Marine in Singapore. Spar
20 70 Qingdao Beihai Sembmarine SLP SBM Offshore
9,627' (2,934 m) 20 FSRU 20
Number of Units
Eagle.org 6. Jurong Shipyard is a wholly owned subsidiary of Sembcorp Marine Ltd. 19 19 China Houston, Texas
Tel: 713-963-6200; Fax: 713-963-6296 9,627'
9,356' (2,852 m) 24.9 (40.1 km) 2,934 m 7. Shanghai Waigaigiao Shipbuilding Co., Ltd is a wholly owned subsidiary of China CSSC Holding Ltd. FLNG 17 60
Lowestoft, UK
9,005' (2,745 m) Bureau Veritas Group Rio Grande 1 Shipyard
www.offshore-mag.com www.woodgroup.com 43.4 8. INTECSEA is a subsidiary of WorleyParsons. 15 WTI Spot Price 15 15 50 Brazil
SMOE SEVAN MARINE ASA
10,000' (3,048.0 m) bureauveritas.com
9. Companies listed under Topsides Engineering include companies that do Front End Engineering and Detail
14 14 Jurong Shipyard (6)
Singapore
Arendal, Norway
ClassNK Engineering. Many can do Front End Engineering, but not all can do Detail Engineering. 11 11 11 40 SHI
10 10 Sembmarine SSP Inc. (6)
0 Miles 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0 75.0 80.0 85.0 90.0 95.0 100.0 classNK.com 10. Companies are listed in alphabetical order. They are not shown in any ranking order. 9 30 Geoje Shipyard, South Korea TH HEAVY ENGINEERING Houston, Texas
For videos on Deepwater Projects please go to: www.offshore-mag/learning-center.html World Record for SS compression tieback distance 24.3 Miles (39.2 Km) World Record for SS compression tieback distance 24.3 Miles (39.2 Km) DNV GL
8
20 Shanghai Waigaigiao
BERHAD
Pulau Indah Yard TechnipFMC
Information Accuracy: Every attempt has been made to evaluate and list all of 5 Shipbuilding Co., Ltd. (7) Wood Group
Oil Subsea Tiebacks: Short Conventional Long Distance Tieback (LDT) dnvgl.com Malaysia
For PDF copies of Posters please go to: www.offshore-mag.com/maps-posters the shipyards, fabrication yards, and engineering companies actively operating 10 China
UTC Engenharia
Gas Subsea Tiebacks: Short Conventional Long Distance Tieback (LDT) Lloyds Register and or marketing their capabilities worldwide for the Offshore Oil & Gas industry. 0 0 TeeKay WorleyParsons
Lg.org The capabilities include: design, construction, fabrication, and quality control for the Brazil Oslo, Norway Houston, Texas
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
RS design and construction of Spars, TLPs, FPUs, and FPSOs. Any omission is inadvertent.
Industry Acronyms
CT Compliant Tower
Notes Information Accuracy: Every attempt has been made to identify, locate, and
establish the most current and correct information for all the various types Notes: 1. Assistance from Quest Offshore Resources, Inc. (www.questdf.com) Tieback Distance Miles (km) COURTESY: Rs-class.org We welcome your corrections or additions to this Supplier Matrix. Courtesy of: Energy Maritime Associates; www.energymaritimeassociates.com.
1. Though referenced throughout the poster, Hutton and Typhoon TLPs, and Red Hawk Spar have
DDCV Deep Draft Caisson Vessel been decommissioned. of deepwater production solutions either sanctioned, installed, operating or
decommissioned worldwide. No facility was intentionally excluded from this
DDS Deep Draft Semi 2. World Records are noted in red throughout the poster or with the symbol adjacent to the poster. In some cases the most current information was not included because TLPs Sanctioned, Installed, Operating or Decommissioned As of March 2017 COURTESY: Number of Production Floaters in Service or Available at the Beginning of Each Year TLP Cycle Time Analysis Discovery to First Production (shown in months) As of March 2017
FDPSO Floating Drilling, Production, Storage and Offloading System record. information was not supplied in time or the project was not sanctioned at MC Offshore 350 ing a TLP as the host facility.
Record: Fastest field development Cycle Time using
FLNG Floating Liquefied Natural Gas Vessel W&T Energy
3. Throughput Capacity Chart gas processing capacity is converted to barrels of oil equivalent press time. We make no guarantee that this list is all inclusive. We have Petroleum, LLC
VI, LLC (3)
FPS Floating Production System summarized the capability and operating experience by acting as a neutral
Typhoon 24.4 17.1 41.5 COURTESY:
as follows: 6 MMscfd = 1 MBOE/D. Legend:
FPSO Floating Production, Storage and Offloading Vessel party and integrator of information. We have collected the information from Hutton (4) Oveng Snorre A Heidrun Prince Okume/Ebano Morpeth Jolliet Malikai Typhoon (3) Moho Nord Matterhorn Auger Mars Brutus Olympus Ram Powell Marlin Kizomba B Allegheny West Seno A Stampede Ursa Papa Terra P-61 Kizomba A Neptune Marco Polo Shenzi Magnolia Big Foot 312 Marco Polo 19.4 31.0 50.4
50 4
2014 FPSO
FPU Floating Production Unit 4. The Moss Maritime Octabuoy is qualified for at least 2 locations: the UK North Sea and the company brochures, interviews, press releases, industry publications, contractor 1984 2007 1992 1995 2001 2007 1998 1989 2016 2001 2017 2003 1994 1996 2001 1997 1999 2005 2003 2003 2017 1999 2014 2004 2007 2004 2009 2005 2018 303 Legend:
Gulf of Mexico. Well capability for the Cheviot designed facility is noted for both locations. Semi FPU Matterhorn 27.8 27.7 55.5
supplied information, and websites. Neither Wood 300 Discovery to Sanction (2)
2017 Offshore
MinDOC Cross between a semisubmersible and a truss spar 290

POSTER TLP West Seno A 14.3 45.2 59.5
129
Group nor Offshore Magazine guarantees or assumes Estimated Sanction to First Production
MODU Mobil Offshore Drilling Unit 5. Canyon Express subsea tieback well capability is based on the same flow line loop. Spar 278
any responsibility or liability for any reference on the Oveng 37.0 29.6 66.6 Sanction to First Production
Semi-FPU Semi-Submersible Floating Production Unit 6. Data for these comparison charts have been derived and updated by Wood Group using information presented. If any information is found to Barge 262
SSTB Subsea Tieback internet research, Wood Mackenzies data, and Energy Maritime Associates and World be incorrect, not current, or needs to be added, please FSRU 254 Magnolia 31.0 36.6 67.6
250 248
TLP Tension Leg Platform Energy Reports. send your comments to posters@WoodGroup.com. FLNG 243 Neptune 34.4 36.1 70.5
238
World Record: Okume/Ebano 36.5 37.9 74.4
Deepwater System Types Deepest 212
Installed TLP Kizomba A 38.0 36.8 74.8
197 AVERAGE TOTAL TIME: 98.77 Months (8.2 Yrs.)
200 Shenzi 42.3 33.6 75.9
Discovery to Sanction: 59.2 Months (4.9 Yrs.)
179 Marlin 43.2 34.1 77.3 Sanction to First Production: 39.6 Months (3.3 Yrs.)
172
Auger 25.5 51.9 77.4
156
150 143 Kizomba B 50.0 35.6 85.6
FLNG FPSO Notes: 135
Project
Prince 68.9 16.8 85.7
1. Pre-FID TLP Ca Rang Do is not shown on this chart until it becomes a sanctioned project.
116 121 Mars 52.9 33.7 86.6
2. Big Foot TLP has not been installed yet.
3. Typhoon TLP was damaged in a GOM hurricane and the hull later reefed. 96 Allegheny 73.9 20.3 94.2
100
4. Hutton TLP has decomissioned in 2002. The topsides were reused and installed on the Prirazlomnaya platform. 84 Jolliet 54.4 45.3 99.7
World Records: 69 Ursa 68.3 31.7 100.0
61
Fixed First TLP - Hutton (Designed by Brown & Root) 52 Papa Terra P-61 49.1 53.8 102.9
Platform Morpeth TLP - First New Generation Wet Tree TLP (Seastar: Designed by SBM Atlantia) 50 45
Compliant 37 39 Moho Nord 74.0 47.7 113.2
New Generation First Generation Dry Tree TLP - Prince (A WorleyParsons Sea/MODEC Design) 30 34
Tower Conventional Semi-FPU
TLP Truss MinDOC Worlds Deepest Installed TLP - Magnolia 4,674 ft (1,425 m); Operator: ConocoPhillips 20 22 24 Heidrun 71.0 53.0 124.0
TLP 14 16
Spar Classic Spar Cell Control Subsea
1 2 4 4 4 6 6 7 10 Hutton 91.8 47.6 139.4
Spar Buoy Tieback
Subsea Manifold 147 m 271 m 335 m 345 m 454 m 503 m 518 m 536 m 565 m 639 m 780 m 858 m 872 m 894 m 910 m 945 m 980 m 986 m 1,006 m 1,009 m 1,021 m 1,021 m 1,158 m 1,180 m 1,200 m 1,280 m 1,311 m 1,333 m 1,425 m 1,581 m 0 Stampede 99.9 44.0 143.9
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
COURTESY: 482 ft 889 ft 1,100 ft 1,132 ft 1,490 ft 1,650 ft 1,699 ft 1,759 ft 1,854 ft 2,097 ft 2,559 ft 2,816 ft 2,862 ft 2,933 ft 2,985 ft 3,100 ft 3,216 ft 3,236 ft 3,330 ft 3,310 ft 3,349 ft 3,350 ft 3,800 ft 3,872 ft 3,937 ft 4,200 ft 4,300 ft 4,373 ft 4,674 ft 5,187 ft Malikai 99.1 47.3 151.9
UK Equatorial Norway Norway US GOM Equatorial US GOM US GOM Malaysia US GOM West Africa US GOM US GOM US GOM US GOM US GOM US GOM US GOM Angola US GOM Indonesia US GOM US GOM Brazil Angola US GOM US GOM US GOM US GOM US GOM (1)
Note: FSRU count excludes regas carriers not in terminal service. Source: IMA World Energy Reports Olympus 95.6 51.0 146.6
Guinea Guinea COURTESY: World Energy Reports LLC
Worldwide Progression of Water Depth Capabilities for Offshore Drilling & Production (Data as of March 2017) Ram/Powell 115.8 31.6 147.4
Present
Spars, DDFs, DDCVs Sanctioned, Installed or Operating As of March 2016 COURTESY: Semi-FPS/FPUs Deepest Facilities Sanctioned, Installed or Operating As of March 2017 COURTESY:
Brutus 117.3 30.2 147.5
(4)
13,000 (3,962.4 m) Big Foot 59.2 90.3 149.5
Legend: Platform/Floater
Snorre A 101.0 50.5 151.5
12,000 (3,657.4 m) Neptune Medusa Genesis Gunnison Front Runner Boomvang Nansen Titan Tahiti Aasta Hansteen Tubular Bells Holstein Kikeh Mad Dog Hoover/Diana Constitution Red Hawk(1) Heidelberg Horn Mountain Devils Tower Lucius Perdido Who Dat P-40 Gumusut P-51 Mad Dog 2 Delta P-56 P-55 Roncador P-52 Thunder Thunder Na Kika Blind Faith Jack/St Malo Atlantis Appomattox Independence
Exploration
Subsea 1997 2003 1999 2003 2004 2002 2002 2010 2009 Spar FPSO 2014 2004 2007 2005 2000 2006 2004 2016 2002 2004 2015 2010 2011 2004 Kakap 2009 2021 House 2011 Module III Roncador Hawk Horse 2003 2008 2014 2007 2018 Hub
2018 2012 2015 2013 2007
0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264
11,000 Denotes Current World Record World Record Current World DP (3,352.6 m) 2009 2008 2007
Deepest Subsea Tree
9,627' (2,934 m)
Drilling Record for 2016 & 2017 Months
Raya-1 exploration well offshore Notes:
10,000 US GOM, Tobago
Operator: Shell
Uruguay for Total. Spudded (3,047.9 m)
1. Olympus is the second TLP in the Mars Field and the discovery to first oil time period is not a representative comparison to the rest of the chart.
April, 2016 in 3,400 m (11,155'),
Rig: Maersk Venturer drillship. 2. Sanction - Is the date or milestone event when the Operator and/or the Partners authorize the project to proceed into the Project Execution Phase.
9,000 Operator: Total (2,743.1 m) 3. Typhoon TLP was reefed as result of overturning due to Hurricane Rita in Sept., 2005.
World Record: World Record: 4. Big Foot - First Production is estimated to occur in mid-year of 2018. The Operator has not indicated a specific target date in 2018.
5. Project Sanction is also referred to as FID - Final Investment Decision.
8,000 (2,438.3 m) Deepest Spar Deepest

6. Morpeth TLP was eliminated from the cycle time analyis because it is an outliner.
Semi-FPS
7,000 (2,133.5 m)
Spar Cycle Time Analysis Discovery to First Production (months) As of March 2017
6,000 World Record (1,828.7 m) Record: Fastest Cycle Time for field development using a Spar for the host facility.
Deepest Floating Facilty in 2016 Red Hawk 10.6 24.2 34.8 COURTESY:
9,500' (2895.5 m)
5,000 US GOM - Stones Field (1,523.9 m) Horn Mountain 14.6 25.1 39.7 Legend:
Turitella FPSO
Operator: Shell Gunnison 16.8 25.5 42.3 Discovery to Sanction (2)
4,000 (1,219.1 m) Estimated Sanction to First Production
Front Runner 11.2 34.7 45.9 Sanction to First Production
3,000 (914.4 m)
Notes:
Medusa 16.6 32.3 48.9
1. Year indicates first year of oil/gas production. Devils Tower 17.5 33.6 51.1 TOTAL TIME AVERAGE: 76.1 Months (6.34 Years)
2,000 (609.6 m) 2. Operator named is the current Operator of record. Discovery to Sanction: 42.1 Months (3.51 Years)
Constitution 26.2 26.4 52.6
Sanction to First Production: 34.0 Months (2.83 Years)
1,000 (304.8 m) World Records: Lucius 23.9 37.0 60.9
First Spar - Neptune (Deep Oil Technology Classic Spar) World Records:
First Truss Spar - Nansen (Technip) First Semi-FPU - Argyll (Converted MODU) Kikeh 25.4 36.5 61.9
0 0
First Cell Spar - Red Hawk (Technip) First Wet Tree DDS - P-51 (Aker DDS)
Holstein 31.0 38.8 69.8
Project
1950 1960 1970 1980 1990 2000 2010 2017 First Drilling/Production Spar - Genesis (Technip) First Dry Tree DDS - Cheviot (Moss Octabuoy)
Worlds Deepest Semi-FPU and FPS - Independence Hub (SBM Atlantia DDS) Mad Dog 37.4 34.9 72.3
World's Deepest Spar - Perdido (Technip)
Year COURTESY:
Heidelberg 51.8 31.4 83.2
588 m 678 m 792 m 960 m 1,015 m 1,053 m 1,121 m 1,220 m 1,250 m 1,300 m 1,311 m 1,324 m 1,330 m 1,348 m 1,463 m 1,515 m 1,616 m 1,616 m 1,653 m 1,710m 2,165 m 2,383 m 945 m 1,080 m 1,189 m 1,255 m 945 m 1,379 m 1,700 m 1,707 m 1,795 m 1,845 m 1,849 m 1,933 m 1,980 m 2,134 m 2,156 m 2,222 m 2,414 m Tahiti 40.1 44.6 84.7
1,930 ft 2,223 ft 2,599 ft 3,150 ft 3,330 ft 3,453 ft 3,678 ft 4,000 ft 4,100 ft 4,265 ft 4,300 ft 4,344 ft 4,364 ft 4,420 ft 4,800 ft 4,970 ft 5,300 ft 5,300 ft 5,423 ft 5,610 ft 7,100 ft 7,817 ft 3,100 ft 3,542 ft 3,900 ft 4,117 ft 3,100 ft 4,524 ft 5,576 ft 5,599 ft 5,888 ft 6,050 ft 6,065 ft 6,340 ft 6,494 ft 7,000 ft 7,072 ft 7,333 ft 7,918 ft
Worldwide Locations of Deepwater Facilities and Status - As of March 2017 Deepwater Asset Totals by Location US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM Norway US GOM US GOM Malaysia US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM Brazil Malaysia Brazil US GOM US GOM Brazil Brazil Brazil US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM
Perdido 55.6 41.0 96.6
Neptune 84.8 26.9 111.7
Brazil 66 MAJOR LOCATION ENVIR. Hoover/Diana 84.1 32.9 117.0
(3, 5, 7) Deepwater Field Development INSTALL RISERS EXPORT OPTIONS
Total MBOE/D Production Throughput Capacity By Deepwater Facility Type as of March 2017 Water Depth Range Comparison (2, 3) CAPABILITY APPLICATION CONDITIONS
& PRODUCTION
By Deepwater Facility Type as of March 2017
AREAL EXTENT
US GOM 55 Titan 78.2 39.8 118.0
COMPLETION
Concept Selection Matrix
RESERVOIR
TREE TYPE
PAYLOAD SENSITIVITY (HIGH/MEDIUM/LOW)
West Africa 53 OIL GAS Genesis 80.2 44.4 122.0
North Sea 47 0 50 100 150 200 250 300 350 400 0' 1,000' 2,000' 3,000' 4,000' 5,000' 6,000' 7,000' 8,000' 9,000' 10,000' Tubular Bells 95.7 37.0 132.7
Deepwater Facility Type Deepwater Facility Type
35 Legend:
AREA WITH HURRICANES/TYPHOONS

Southeast Asia Boomvang 145.0 23.0 168.0
DECK/HULL MATING W/ FLOATOVER

27 253
J
Legend: 1,025' 1,353' 1,700' Legend:
DECK/HULL MATING @ FAB. YARD

Australasia 17 1. Conventional Fixed Platform Installed Aasta Hansteen 190.1 60.7 250.8
FIELD APPLICATION EXPERIENCE

1. Conventional Fixed Platform
J
Field Proven Indicates Installed Facility (Proven) Field Proven Indicates Installed Facility (Proven)
DECK/HULL MATING OFFSHORE

China 16 Amberjack Bullwinkle Qualified Indicates Sanctioned Facility (Qualified) Cognac Bullwinkle Qualified Indicates Sanctioned Facility (Qualified) Qualified
China
Canada
J
Mexico GOM 5 77 94 165 277 Conceptual Not Sanctioned/Sanction Pending Conceptual Not Sanctioned/Sanction Pending 0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264
NEARBY INFRASTRUCTURE
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 1,000' 1,280' 1,742' 3,000'
Conceptual
HYBBRID RISER CAPABLE
LNG TANKER TRANSPORT

STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 2. Compliant Tower Decommissioned or Removed Facility
2. Compliant Tower Decommissioned or Removed Facility
FLEXIBLE PIPE CAPABLE

India/Middle East 4 S/UC 0 0 0 0 0 0 0 Lena,
S/UC 0 0 0 0 0 0 0 Baldpate Tombua Landana
Months
See Water Depth Range Graph WATER DEPTH RATING
GAS EXPORT PIPELINE

OP 12 1 0 0 0 0 13 Petronius BBLT Lena BBLT Petronius
OIL EXPORT PIPELINE

OP 2 0 0 0 0 0 2 North Sea N. Africa/Med. 3 AVAIL/AB 3 0 0 0 0 0 3
10 50 200
1,000' 4,526' 10,000'
SMALL FOOTPRINT
AVAIL/AB 0 0 0 0 0 0 0 3. FDPSO (SBM, Prosafe, OPE SSP)
GAS REINJECTION
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL Canada 2
SHUTTLE TANKER
Totals 15 1 0 0 0 0 16
Totals 2 0 0 0 0 0 2 S/UC 2 0 0 1 0 0 3 Azurite
3. FDPSO (SBM, Prosafe, OPE SSP) Semi FPS Cycle Time Analysis Discovery to First Production (months) As of March 2017
4. FPSO
SCR CAPABLE
13 35 60 75 130 160 179 200 203 236 243 287 300 313 317 Azurite 4,592' Mustang Estimate
PRODUCTION
OP 23 14 2 0 0 0
SMALL AREA
39
LARGE AREA
AVAIL/AB 3 1 1 0 0 0 5 A. New Build 4. FPSO 66' 298' 2,510' 3,937' 4,461' 4,796' 5,260' 6,500' >10,000' Record: Fastest field development cycle time using a Semi-FPS as the host facility.
WET TREE
DRY TREE
COURTESY:
DRILLING
STORAGE
Totals 28 15 3 1 0 0 47 San Jacinto Dalia Girassol Cidade de Usan Egina Schiehallion Akpo A. New Build Delta House 8.6 28.0 36.6
REMOTE
BW Catcher Cidade de Campos dos Goytacazes Ansuria
BENIGN
Caraguatatuba MV27 Erha, Kizomba A BW Catcher Agbami 7,053'
HARSH
Sea Eagle Cidade de Campos dos Goytacazes Kizomba A, Seillean 7,021' 7,218'
13 30 35 51 80 108 119 130 150 169 185 197 212 220 Norne Hai Yang Shi You 113 Girassol Egina 7,050' Argyll 17.4 22.9 40.3
US GOM Triton 1,640' 2,198' 3,396' P-63 Dalia 4,856' 4,920' 5,260' 5,838' 6,561' 6,995' 7,349' 8,530' >10,000'
50' 299' 328' 9,500' Legend:
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL
B. Conversion 360' Espirito Santo PSVM Cidade de Itaguai Green Canyon 29 23.1 23.9 47.0
Cyrus FPF1 Espirito Santo, P-48 P-66 Yuum K'ak'Naab B. Conversion COURTESY: Discovery to Sanction (2)
H H H H H H H H H H H H H H H H H H
S/UC 0 2 2 0 0 0 4 New Orleans Cidade de Sao Paulo, Cidade de Marica P-54, Agbami Aje Armada Kraken Fluminense P-48 Xikomba
Dynamic Producer Brazil Capixaba Armada Perkasa Cyrus 394' Armada Olombendo Cidade de Margaratiba BW Pioneer Who Dat 31.1 16.2 47.3 Estimated Sanction to First Production
OP 2 9 15 19 3 0 48 10 30 40 Armada Kraken Armada Olombendo 120
Cidade de Angra dos Reis Cidade de Itaquai MV26
200 400 Prof John Evans Atta Mills
Kaombo GGC,CLM Cidade de Paraty, Cidade de Saquarema,
Cidade de Angra Dos Reis Turitella Conventional Fixed Platform (>1,000') L
H H H H H H H H H H H H H H H H H
North Africa/Med. Kaombo GGC, CLM 80' 292' 512' 1,312' 3,575' Cidade de Marica, Cidade de Sao Vicente P-66 Cidade de Ilhabela >11,000' Sanction to First Production
Compliant Pile Towers L Independence Hub 21.0 27.9 48.9
AVAIL/AB 0 0 2 1 0 0 3 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL C. Unconventional C. Unconventional
Totals 2 11 19 20 3 0 55 S/UC
OP
0
3
0
0
0
0
0
0
0
0
0
0
0
3
(Sevan SSP, Petrobras MonoBR,
Global SSP SSP320 & SSP PLUS)
Piranema
Goliat
Western Isles
Voyageur
Sevan Sevan (Sevan SSP, Petrobras MonoBR,
Global SSP SSP320 & SSP PLUS) Sevan
Western Isles
Hummingbird
Goliat Piranema Spirit Sevan Global SSP FDPSO H H H H L H H H H H H H H H H H H Thunder Hawk 28.0 33.9 61.9
Hummingbird Voyageur Spirit Cooper 33.5 43.9 77.4
AVAIL/AB 0 0 0 0 0 0 0 Southeast Asia 10 40 43 60 90 122 155 175 193 217 231 251 366 1,132' 1,933' 2,862'
FPSO
482' 3,800'
Mexico GOM Totals 3 0 0 0 0 0 3 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 5. Conventional TLP Neptune 4,200' Spread Moored L Buchan A 42.1 38.4 88.7
5. Conventional TLP AVERAGE TOTAL TIME: 118.7 Months (9.9 Yrs.)
India/Middle East
S/UC 0 0 1 0 0 1 2 Moho Nord Jolliet Malikai Marlin Hutton Brutus Auger Ram/Powell Ursa Mars Heidrun Snorre A Hutton(1) Heidrun Mars Auger Ursa Marco Polo 4,300'
Shenzi 4,970'
Turret Moored H H H L H H H H H H H H H H H H H H H H Blind Faith 51.7 37.0 88.7 Discovery to Sanction: 80.7 Months (6.7 Yrs.)
S/UC 0 0 0 0 0 0 0 OP 25 2 1 1 0 1 30
3,937' Sanction to First Production: 38.0 Months (3.2 Yrs.)
OP 4 0 0 0 0 0 4
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL AVAIL/AB 3 0 0 0 0 0 3 42 48 58 63 75 80 93 108 199 250
889' 1,699' 2,816' 3,300' 3,350' 3,863' 4,674' 5,187' 8,000' Round L Gomez (ATP Innovator) 82.0 24.2 100.9
S/UC 1 0 0 0 0 0 1 Totals 28 2 2 1 0 2 35 6. Proprietary TLP (SBM Atlantia SeaStar,
AVAIL/AB 1 0 0 0 0 0 1 OP 3 0 0 0 0 0 3 FourStar UltraDeep, MODEC Moses, FloaTEC ETlp) Shenzi 6. Proprietary TLP (SBM Atlantia SeaStar, TLP Gumusut Kakap 45.4 56.9 102.3
Totals 5 0 0 0 0 0 5 AVAIL/AB 0 0 0 0 0 0 0
Matterhorn Prince
Morpeth Neptune
Big Foot Stampede
Magnolia
Marco Polo Kizomba A, Kizomba B FourStar UltraDeep, MODEC Moses, FloaTEC ETlp)
Oveng
Morpeth Matterhorn
Kizomba B
P61
Stampede Kizomba A 4,344'
Magnolia Big Foot
SBM Atlantia UltraDeep Conventional H H H H H H H H H H H H H H H H H H H H H Kristin 55.4 47.0 102.4
Project
Totals 4 0 0 0 0 0 4 135 155 4,300' 4,364' 5,423'
20 45 58 67 73 78 90 103 133 137 154 1,930' 2,599' 3,453' 3,678' 4,100' 4,420' 4,800' 4,970' 5,300' 5,610' 7,100' 7,816' 10,000' Proprietary H Veslefrikk B 75.3 30.8 106.1
7. Spar/DDCV (Technip, FloaTEC) 7. Spar/DDCV (Technip, FloaTEC) Spar Atlantis 34.0 72.1 106.1
H H H H H H H H H H H H H H H
Neptune Genesis Boomvang Nansen Mad Dog Devils Tower Lucius
Tahiti Lucius
Brazil Red Hawk Neptune, Genesis Mad Dog Constitution 3,300' Tahiti
Holstein Kikeh Constitution Heidelberg
Horn Mtn Perdido Dry Tree M Thunder Horse 23.9 85.3 109.2
STATUS FPSO
S/UC 6
FPU
0
TLP SPAR CT FLNG TOTAL
0 0 0 0 6 West Africa
Tubular Bells Medusa
Gunnison, Boomvang, Nansen
Front Runner Perdido Holstein Hoover/Diana 8. Semi-FPU
A. Wet Tree Conventional
262' 984' 1,116' 2,986' 3,353' 4,101' Tubular Bells Hoover/Diana 5,599' 5,904' 6,298' 6,340' 7,072' 7,333'
Wet Tree H H H M H H H H H H H H H H H H H H Appomattox 65.9 49.9 115.8
8. Semi-FPS 11 98 118 140 170 175 181 230 245 283 315 352 Janice A Troll C Innovator Gumusut P-40 P-51 Mad Dog II P-55 P-52 Na Kika Atlantis Appomattox Semi-FPS/FPU
OP 40 14 1 0 0 0 55 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL Jack St. Malo 83.5 49.3 132.8
A. Wet Tree Conventional Aasgard B Thunder Horse
S/UC 4 0 0 0 0 2 4,500'
AVAIL/AB 3 2 0 0 0 0 5 6
B. Wet Tree Deep Draft
1,223' 6,494' 7,000' 7,920' 12,000' Conventional M Balmoral 109.8 25.0 134.8
OP 39 0 5 0 2 0 46 Australasia Gumusut P-40 Na Kika Troll C
Totals 49 16 1 0 0 0 66 P-22 Moho Bilondo P-26 Atlantis Thunder Horse Troll B sgard B
AVAIL/AB 1 0 0 0 0 0 1 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 53 72 85 Mad Dog 2 156 167 Appomattox 215 (SBM Atlantia DeepDraft Semi, Aker Solutions DDP, Deep Draft Wet Tree M 137.0
H H H H H H H H H H H H H H H H
Exmar OPTI-EX, FloaTEC DeepDraft Semi, Moss Maritime P-51 Blind Faith Jack/St. Malo Independence Hub SBM DDS, Horton Wison MCF, Njord A 109.6 27.4
Totals 44 0 5 0 2 2 53 S/UC 1 1 0 0 0 1 3 (SBM Atlantia DeepDraft Semi, Aker Solutions DDP, Octabuoy, Horton Wison Multi-Column Floater) Moss Octabuoy Deep Draft Dry Tree M
OP 10 1 0 0 0 0 11 Exmar OPTI-EX, FloaTEC DeepDraft Semi, Moss Maritime 500' 557' 1,000' 12,000' Visund 120.2 36.7 156.9
AVAIL/AB 3 0 0 0 0 0 3 Octabuoy, Horton Wison Multi-Column Floater) Blind Faith Thunder Hawk Who Dat Jack/St. Malo Independence Hub P-51, P-52 Subsea Tieback
Totals 14 2 0 0 0 1 17 C. Dry Tree Deep Draft 33 91 190
C. Dry Tree Deep Draft
(SBM Atlantia DTS, FloaTEC Truss Semi & E-Semi, Cheviot Horton Wison MCF SBM DTS, Horton Wison MCF, Gas Tiebacks H H H H H H H H H H H H H H Na Kika 155.5 38.8 194.3
H H H H H H H H H H H H H H
Aker Solutions DDP, Technip EDP, Moss Maritime Moss Octabuoy Moss Octabuoy Asgard B 173.8 51.5 225.3
(SBM Atlantia DTS, FloaTEC Truss Semi & E-Semi,
Aker Solutions DDP, Technip EDP, Moss Maritime Octabuoy, Horton Wison Multi-Column Floater)
3,608' 5,300' 6,102' 6,750' 7,570' 8,008' 8,381' 9,014' 9,301' 9,627'
Oil Tiebacks
Cheviot Horton Wison MCF Horton Wison MCF 738' Dai Hung 1 221.6 21.4 243.0
Octabuoy, Horton Wison Multi-Column Floater)
9. Subsea Tiebacks Buoy
World Totals 9. Subsea Tiebacks
26 32 52 86 133 412
Mikkel
Ormen Lange Mensa GunFlint Bass Lite Coulomb Perdido Vortex Cheyenne
ShadowCat
Tobago Wellhead Production Buoy H H H H H H H H H H H Snorre B 221.5 36.2 257.7
S/UC 14 3 3 1 0 4 25
%
8.6%
King Kong
Falcon Mensa Canyon Express Scarab Saffron
Ormen Lange Well Control Buoy H H H H H H H H Gjoa 198.6 61.1 259.7
Legend: FLOATING LNG
OP 163 41 24 20 5 1 254 83.5% 0' 1,000' 2,000' 3,000' 4,000' 5,000' 6,000' 7,000' 8,000' 9,000' 10,000'
AVAIL/AB 17 3 3 1 0 0 24 7.9% Sanctioned/Under Const.
0 50 100 150 200 250 300 350 400
(304.8 m) (609.6 m) (914.4 m) (1,219.1 m) (1,523.9 m) (1,828.7 m) (2,133.5 m) (2,438.3 m) (2,743.1 m) (3,047.9 m) Spread Moored H H H L H H H H H H H H H H H 0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264
Totals 194 47 30 22 5 5 303 100.0%
% Total 64.0% 15.5% 9.9% 7.4% 1.7% 1.3% 100.0% 100.0% Numbers are based upon: Energy Maritime Associates and World Energy Reports
Operating
Available or Abandoned
US MMS Definitions:
Turret Moored H H H L H H H H H H H H H H H Months
Shallow Deepwater Ultra Deepwater
(www.worldenergyreports.com) and research by Wood Group. COURTESY: MBOE/D Throughput Round L
1705OFFDWSRPoster_1 1 4/11/17 4:12 PM

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World Record Subsea Tiebacks Sanctioned, Installed, Operating or Future Tiebacks (Water Depth vs. Tieback Distance) As of March 2017 CHART 1: OFFSHORE DEEPWATER FLOATING PRODUCTION FACILITIES SUPPLIER MATRIX Past & Present (Proven & Qualified Companies as of March 2017) COURTESY:
DEEPWATER SOLUTIONS
(0 km) (8.05 km) (16.1 km) (24.1 km) (32.2 km) (40.2 km) (48.3 km) (56.3 km) (64.4 km) (72.4 km) (80.5 km) (88.5 km) (96.6 km) (104.6 km) (112.7 km) (120.7 km) (128.7 km) (136.8 km) (144.8 km) (152.9 km) (160.9 km)
2017 DEEPWATER SOLUTIONS &

69.8 km 149.7 km SPARS & SPAR ALTERNATIVES (2) SEMI FPSs / FPUs TLPs FPSOs
0' (0' m)
US MMS Definitions:
BPs Machar
Statoils Mikkel
Shallow
22.0 (35.3 km) TOPSIDES
24.3 (39.2 km) HULL TOPSIDES FABRICATORS FABRICATORS TOPSIDES FABRICATORS FABRICATORS HULL TOPSIDES FABRICATORS FABRICATORS CONVERSION NEW BUILD PROJECT MGMT & TURRET
738.1' (225 m)
738' (225 m) HULL DESIGNERS FABRICATORS/
DESIGNERS ENGINEERING (9) HULL TOPSIDES ENGINEERING (9) HULL TOPSIDES DESIGNERS ENGINEERING (9) HULL TOPSIDES SHIPYARDS SHIPYARDS - HULLS ENGINEERING SUPPLIERS
RECORDS FOR CONCEPT SELECTION

ATPs Ladybug Record Distance for INTEGRATORS
1,000' 18.0 (29.0 km)
1,355' (413 m)
Oil SS Tieback
Statoils Snhvit
(304.80 m) Aker Solutions (1) Aker Solutions (1) Gulf Marine Fabricators Daewoo Shipbuilding Aker Solutions Aker Solutions BraFELS (5) BraFELS (5) Aker Solutions Aker Solutions (1) BraFELS (5) Dragados Offshore BraFELS (5) Atlantico Sul Shipyard Aibel AS Bluewater
World Record for Gas Compression SS Tieback: Shells Penguin A-E BG Internationals Sapphire Norway Norway Ingleside, Texas & Marine Engineering Norway Norway Brazil Brazil Norway Norway Brazil Altirmira, Mexico Brazil Brazil Aibel AS Thailand & Norway Houston, Texas
43.4 (69.8 km) 89.0 (143 Km) (DSME)
Asgard (Midgard & Mikkel) 70.8 (114.0 km) Thailand & Norway
Mariners Pluto 574' (175 m) 1,131.9' (345 m) Bennett Offshore AMEC Foster Wheeler Hyundai Heavy Geoje Island, South Korea Bennett Offshore Audubon Engineering CIMC Raffles DYNA-MAC Doris Engineering Audubon Engineering COSCO Shipyard Group DSME Chengxi Shipard BraFELS (5) Aker Solutions LMC (London Marine
23.3 (39.2 Km) 1,640' (500 m)
Shells Manatee 984' (300 m) 28.6 (46.0 km) BG Internationals Scarab/Saffron Houston & New Orleans Houston, Texas Industries (HHI) Houston & New Orleans Solutions China Singapore Paris & Houston Solutions Qidong Shipyard Geoje Island, South Korea (Xinrong) Co., Ltd Brazil Atlantico Sul Shipyard Norway Consultants)
17.0 (27.4 km) 2,900' (884 m) 55.9 (90.0 km) Ulsan, South Korea Dragados Houston, Texas Houston, Texas Jingjiang City, China Brazil London, England
2,000' Shells Habanero 1,940' (591 m) Nobles Lost Ark 2,040' (622 m) BG Internationals Simian/Sienna Totals Laggan-Tormore
(609.60 m) FloaTEC Audubon Engineering Cadiz, Spain Doris Engineering COSCO Shipyard Group DSME FloaTEC (3) DSME Gulf Island Fabricators COSCO Goup Shiyard Bechtel
11.5 (18.5 km) 27.0 (43.5 km) Houston, Texas Solutions Malaysia Marine & Heavy Paris & Houston CB&I Dalian Shipyard Geoje Island, South Korea Houston, Texas CB&I Geoje Island, South Korea Houma, LA COSCO Shipyard Group Nantong, China BraFELS (5) Houston, Texas NOV-APL
Enabling Technologies for Deepwater Production May 2017

70.8 (114.0 km) 88.9 (143 km)
2,015' (614 m) 2,700' (823 m) Pioneers Falcon Houston, Texas Engineering (MMHE) Dragados Offshore Houston, Texas Qidong Shipyard Houston, Texas Dalian Shipyard Brazil Houston, Texas
2,133' (650 m) 1,980' (603.5 m) Pasir Gudang, Malaysia Altirmira, Mexico Qidong Shipyard
30.0 (48.3 km) Houston Offshore Exmar Offshore Gulf Island Fabricators HOE Keppel FELS Gulf Marine Fabricators COSCO Shipyard Group Blackstone Process
Deepwater
3,400' (1,036 m) Engineering (4) CB&I Houston, Texas Doris Engineering DSME Houma, LA Houston, Texas Doris Engineering Singapore Ingleside, Texas Dalian Shipyard COOEC Solutions Orwell Offshore
Houston, Texas Houston, Texas McDermott Gulf Island Fabricators Paris & Houston Geoje Island, South Korea Paris & Houston Drydocks World Qidong Shipyard Kuala Lumpur, Malaysia UK, Malaysia, Singapore
3,000' Shells Oregano Shells Macaroni
11.8 (19.0 km)
Pioneers Tomahawk (914.40 m) Batam Island, Indonesia Houma, LA Friede & Goldman, Ltd. Gulf Marine Fabricators MODEC MMHE HHI Dubai, UAE
China
8.0 (12.9 km) Chevrons Gemini 35.0 (53.1 km) Shells Ormen Lange TechnipFMC KBR Jebel Ali, UAE KBR HHI KBR DSME Bluewater Offshore SBM Offshore
3,685' (1,123 m) Houston, Texas Ingleside, Texas Houston, Texas Johor, Malaysia Ulsan, South Korea Dragados Offshore
Prepared by: Christopher Barton and Heather Hambling of Wood Group; E. Kurt Albaugh, P.E. Consultant; 3,400' (1,036 m) BPs Aspen
16.0 (25.8 km)
28.0 (45.1 km)
3,488' (1,063 m)
3,500' (1,067 m) Pioneers Raptor
40.0 (64.4 km)
62.0 (100.0 km)
3,608' (1,100 m) Norsk Hydros Ormen Lange
TechnipFMC
Gulf Marine Fabricators
Ingleside, Texas FloaTEC
Houston, Texas Ulsan, South Korea
HHI SBM OFFSHORE
Houston, Texas
SembCorp Keppel FELS
Hantong Shipyard
China
Geoje Island, South Korea Altirmira, Mexico Hoofddorp, Netherlands Houston, Texas
Pori, Finland

3,150' (960 m) WorleyParsons McDermott Kvaerner Kvaerner Stord AS McDermott Dalian Shipbuilding BW Offshore SOFEC
Bob Mahlstedt of RamMark Services; and David Davis of Offshore Magazine. 4,000' ExxonMobils Marshall Shells Europa
20.0 (32.2 km)
3,500' (1,067 m) 74.6 (120.0 km)
3,609' (1,100 m) (1,219.2 m) INTECSEA (8) Houston, Texas Heerema Fabrication
Group
Houston, Texas
Oslo, Norway Stord, Norway
Ulsan, South Korea Houston, Texas
Houston, Texas
Singapore Singapore
Inhauma Shipyard
Brazil
Industry
Oshore Co., Ltd. (DSIC)
DSME
Geoje Island, South Korea Oslo & Arendal, Norway Houston, Texas
7.0 (11.26 km) Shells Crosby ExxonMobils Mica Pioneers Harrier Houston, Texas GustoMSC Kiewit TechnipFMC SHI Kiewit
4,356' (1,328 m) 3,900' (1,189 m) 47.0 (75.6 km) TechnipFMC Holland Schiedam, The Netherlands McDermott Samsung Heavy Ingelside, Texas Houston, Texas TechnipFMC Geoje Shipyard, South Korea Ingelside, Texas Dalian, China DYNA-MAC CB&I Teekay Petrojarl
10.0 (16.1 km) 29.0 (46.67 km)
Graphics by: Chris Jones of Xenon Group, Inc. and Graphic Support by: Jom Kirkland of Wood Group 4,393' (1,339 m) 4,200' (1,280 m) Huskys Liwan Houston, Texas Houston, Texas Industries (SHI) Houston, Texas Jurong Aracruz Singapore Houston, Texas Production & Onesubsea
4,350' (1,326 m) Hyundai Heavy Geoje Shipyard, South Korea Shipyard (6) Ecovix-BG
62.0 (100.0 km) GVA Kvaerner Stord AS Technip MHB Hull Signal Shipyard Kvaerner Stord AS Houston, Texas
ExxonMobils Madison Record Distance for Wood Group Industries (HHI) Goteborg, Sweden TechnipFMC Stord, Norway Engineering (TMH) Wood Group Orange, Texas Stord, Norway Vitoria, Brazil Brazil Estaleiro Rio Grande COOEC
Future Record for Longest Deepwater 4,921' (1,500 m)
Special Thanks to Energy Maritime Associates and World Energy Reports & Wood Mackenzie for supplying reference data. 5,000' 7.0 (11.26 km) Shells Keppler
11.8 (18.96 km) BPs King Multiphase Boosting SS Tieback
Gas SS Tieback
Noble Energys Tamar
(1,524.0 m) Houston, Texas Ulsan, South Korea Houston, Texas SembCorp
Singapore
Kvaerner Verdal AS Kuala Lumpur, Malaysia Houston, Texas Kvaerner Verdal AS
Jurong Shipyard (6) HHI
Brazil Qingdao, China
4,851' (1,479 m) Kvaerner Verdal, Norway Verdal, Norway
5,759' (1,755 m) 17.0 (27.4 km) Murphys Dalmation Shells Mensa 93.0 (149.7 km) WorleyParsons Kiewit Wood Group WorleyParsons WorleyParsons Singapore Ulsan, South Korea Doris Engineering
Nobles Dantzler 13.7 (22.0 km) Ingelside, Texas Oslo, Norway Keppel FELS Shipyard
For additional copies or comments, please e-mail: posters@woodgroup.com or posters@pennwell.com 9.0 (14.00 km) Shells Massa
5,334' (1,626 m)
5,823' (1,775 m)
68.0 (109.4 km)
5,300' (1,615 m)
5,446' (1,660 m) Houston, Texas Houston, Texas
McDermott INTECSEA (8)
Houston, Texas
Houston, Texas
McDermott
Keppel FELS IHI Corp.
Singapore Paris & Houston
Kvaerner Stord AS MODEC Singapore
6,581' (2,006 m) 11.0 (17.77 km) Houston, Texas WorleyParsons Jebel Ali, UAE Jebel Ali, UAE Japan Kiewit Deltamarin, Ltd
6,000' Shells Ariel 6,561' (2,000 m) Shells East Anstey Shells Herschel Legend: Oil Subsea Tiebacks (1,828.8 m) Stord, Norway Houston, Texas
MMHE Corpus Christi, Texas Turku, Finland
4.74 (7.628 km) 11.0 (17.77 km) SBM Offshore SHI MMHE Jiangnan Shipyard
12.8 (20.7 km) Nobles Gunflint Mariners Bass Lite Future Oil Subsea Tiebacks McDermott Geoje Shipyard, South Korea Johor Baru, Malaysia Pasir Gudong, Malaysia Shanghai, China Friede & Goldman, Ltd.
6,240' (1,902 m) 6,590' (2,009 m) 6,739' (2,054 m) 23.6 (38.0 km) 56.0 (90.1 km) Tampico; Batam, Indonesia; Houston, Texas ONGs
Hadrian Shipyard Houston, Texas
Shells Fourier
6,102' (1,860 m) 6,750' (2,057 m) Gas Subsea Tiebacks Jebel Ali, UAE
TechnipFMC SHI ONGs Jiangsu Hantong Ship Wallsend, UK
Ultra Deepwater
ExxonMobils Hadrian Geoje Shipyard, South Korea Hadrian Shipyard Heavy Industry Co., Ltd. (HT) Global Mariner Offshore
7,000' 10.0 (6.6 km) 16.8 (27.1 km) Anadarkos Spiderman Future Gas Subsea Tiebacks (2,133.6 m) MMHE
Malaysia
Houston, Texas Wallsend, UK Nantong, China OSX Shipyard Services (GMOS)
6,889' (2,100 m) Statoils Q 6,950' (2,118.2m) 24.0 (38.6 km)
11.2 (18 Km) 8,113' (2,473 m)
Dominion Expl.s San Jacinto Oil Subsea Tieback Experience Limit WorleyParsons PT Karimun Keppel FELS
Brazil Kuala Lumpur, Malaysia
Anadarkos Callisto Anadarkos Merganser 34.0 (54.7 km) Totals Canyon Express INTECSEA
Gas Subsea Tieback Experience Limit Samsung Heavy Sembawang Shipyard
5.6 (9.0 Km) Shells Perdido 7,960' (2,427 m) 14.7 (23.7 km) 7,868' (2,399 m) 57.0 (91.7 km)
7,210' (2,198 m)
Industries (SHI) Houston, Texas FPS Systems Awarded from 1997-2016 Karimun Island, Indonesia
Singapore Profab
Singapore
KBR
Houston, Texas
7,900' (2,408 m) 6.2 (10.0 km) 7,934' (2,418 m) Denotes Current World Record for Installed Tiebacks Geoje Shipyard, South Korea (Excludes MOPUs, FSOs, and FSO [LNG]; Production Barges included in FPSO count) L & T Ship Building Ltd
8,000' (2,438.4 m) Notes
M A G A Z I N E 8,008' (2,441 m)
Anadarkos Mondo 20.6 (33.1 km)
Anadarkos Jubilee
Anadarkos Vortex
Record Water Depth
for Gas SS Tieback 1. Aker Solutions contract party is Aker Engineering & SembCorp
SembCorp
Singapore
Kattupalli Shipyard, India Rio Grande 1 Shipyard
Brazil
L & T Valdel
Engineering Ltd.
24.5 (39.4 km) Shells Coulomb Anadarkos Cheyenne Technology AS. Singapore 30 Legend: 100 Mitsui Engineering &
Average Yearly WTI Spot Price ($/bbl)a

12.0 (19.3 Km) 7,868' (2,675 m) 29 India
Record Water Depth ENIs San Jacinto 8,381' (2,555 m) 27.0 (43.5 km) 44.7 (72.0 km) CLASSIFICATION 2. The MinDOC concept is considered as a SPAR alternative. FPSO 27 Shipbuilding Co., Ltd. SAIPEM
9.3 (15.0 km) 8,340' (2,542 m) 7,570' (2,307 m) 26 90 Chiba Works, Japan
9,014' (2,748 m) Semi FPU Karimun Facility MODEC
1455 West Loop South, Suite 400 for Oil SS Tieback 8,300' (2,530 m) 2,748 m SOCIETIES & CVAs 3. ABB Lummus Global sold their eTLP design to FloaTEC in 2005.
25 25 Tamano Works, Japan
9,000' Shells Tobago Anadarkos Atlas NW 9,014' (2,743.2 m) 4. Houston Offshore Engineering, LLC is owned by WS Atkins plc. TLP 24 80 Indonesia Houston, Texas
Houston, TX 77027 6.0 (9.6 km) Shells Silvertip
9.0 (14.4 km)
22.0 (35.4 km)
8,856' (2,700 m) Anadarkos Atlas
93.0 ABS 5. BraFELS is a wholly owned subsidary of Keppel Offshore & Marine in Singapore. Spar
20 70 Qingdao Beihai Sembmarine SLP SBM Offshore
9,627' (2,934 m) 20 FSRU 20
Number of Units
Eagle.org 6. Jurong Shipyard is a wholly owned subsidiary of Sembcorp Marine Ltd. 19 19 China Houston, Texas
Tel: 713-963-6200; Fax: 713-963-6296 9,627'
9,356' (2,852 m) 24.9 (40.1 km) 2,934 m 7. Shanghai Waigaigiao Shipbuilding Co., Ltd is a wholly owned subsidiary of China CSSC Holding Ltd. FLNG 17 60
Lowestoft, UK
9,005' (2,745 m) Bureau Veritas Group Rio Grande 1 Shipyard
www.offshore-mag.com www.woodgroup.com 43.4 8. INTECSEA is a subsidiary of WorleyParsons. 15 WTI Spot Price 15 15 50 Brazil
SMOE SEVAN MARINE ASA
10,000' (3,048.0 m) bureauveritas.com
9. Companies listed under Topsides Engineering include companies that do Front End Engineering and Detail
14 14 Jurong Shipyard (6)
Singapore
Arendal, Norway
ClassNK Engineering. Many can do Front End Engineering, but not all can do Detail Engineering. 11 11 11 40 SHI
10 10 Sembmarine SSP Inc. (6)
0 Miles 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0 75.0 80.0 85.0 90.0 95.0 100.0 classNK.com 10. Companies are listed in alphabetical order. They are not shown in any ranking order. 9 30 Geoje Shipyard, South Korea TH HEAVY ENGINEERING Houston, Texas
For videos on Deepwater Projects please go to: www.offshore-mag/learning-center.html World Record for SS compression tieback distance 24.3 Miles (39.2 Km) World Record for SS compression tieback distance 24.3 Miles (39.2 Km) DNV GL
8
20 Shanghai Waigaigiao
BERHAD
Pulau Indah Yard TechnipFMC
Information Accuracy: Every attempt has been made to evaluate and list all of 5 Shipbuilding Co., Ltd. (7) Wood Group
Oil Subsea Tiebacks: Short Conventional Long Distance Tieback (LDT) dnvgl.com Malaysia
For PDF copies of Posters please go to: www.offshore-mag.com/maps-posters the shipyards, fabrication yards, and engineering companies actively operating 10 China
UTC Engenharia
Gas Subsea Tiebacks: Short Conventional Long Distance Tieback (LDT) Lloyds Register and or marketing their capabilities worldwide for the Offshore Oil & Gas industry. 0 0 TeeKay WorleyParsons
Lg.org The capabilities include: design, construction, fabrication, and quality control for the Brazil Oslo, Norway Houston, Texas
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
RS design and construction of Spars, TLPs, FPUs, and FPSOs. Any omission is inadvertent.
Industry Acronyms
CT Compliant Tower
Notes Information Accuracy: Every attempt has been made to identify, locate, and
establish the most current and correct information for all the various types Notes: 1. Assistance from Quest Offshore Resources, Inc. (www.questdf.com) Tieback Distance Miles (km) COURTESY: Rs-class.org We welcome your corrections or additions to this Supplier Matrix. Courtesy of: Energy Maritime Associates; www.energymaritimeassociates.com.
1. Though referenced throughout the poster, Hutton and Typhoon TLPs, and Red Hawk Spar have
DDCV Deep Draft Caisson Vessel been decommissioned. of deepwater production solutions either sanctioned, installed, operating or
decommissioned worldwide. No facility was intentionally excluded from this
DDS Deep Draft Semi 2. World Records are noted in red throughout the poster or with the symbol adjacent to the poster. In some cases the most current information was not included because TLPs Sanctioned, Installed, Operating or Decommissioned As of March 2017 COURTESY: Number of Production Floaters in Service or Available at the Beginning of Each Year TLP Cycle Time Analysis Discovery to First Production (shown in months) As of March 2017
FDPSO Floating Drilling, Production, Storage and Offloading System record. information was not supplied in time or the project was not sanctioned at MC Offshore 350 ing a TLP as the host facility.
Record: Fastest field development Cycle Time using
FLNG Floating Liquefied Natural Gas Vessel W&T Energy
3. Throughput Capacity Chart gas processing capacity is converted to barrels of oil equivalent press time. We make no guarantee that this list is all inclusive. We have Petroleum, LLC
VI, LLC (3)
FPS Floating Production System summarized the capability and operating experience by acting as a neutral
Typhoon 24.4 17.1 41.5 COURTESY:
as follows: 6 MMscfd = 1 MBOE/D. Legend:
FPSO Floating Production, Storage and Offloading Vessel party and integrator of information. We have collected the information from Hutton (4) Oveng Snorre A Heidrun Prince Okume/Ebano Morpeth Jolliet Malikai Typhoon (3) Moho Nord Matterhorn Auger Mars Brutus Olympus Ram Powell Marlin Kizomba B Allegheny West Seno A Stampede Ursa Papa Terra P-61 Kizomba A Neptune Marco Polo Shenzi Magnolia Big Foot 312 Marco Polo 19.4 31.0 50.4
50 4
2014 FPSO
FPU Floating Production Unit 4. The Moss Maritime Octabuoy is qualified for at least 2 locations: the UK North Sea and the company brochures, interviews, press releases, industry publications, contractor 1984 2007 1992 1995 2001 2007 1998 1989 2016 2001 2017 2003 1994 1996 2001 1997 1999 2005 2003 2003 2017 1999 2014 2004 2007 2004 2009 2005 2018 303 Legend:
Gulf of Mexico. Well capability for the Cheviot designed facility is noted for both locations. Semi FPU Matterhorn 27.8 27.7 55.5
supplied information, and websites. Neither Wood 300 Discovery to Sanction (2)
2017 Offshore
MinDOC Cross between a semisubmersible and a truss spar 290

POSTER TLP West Seno A 14.3 45.2 59.5
129
Group nor Offshore Magazine guarantees or assumes Estimated Sanction to First Production
MODU Mobil Offshore Drilling Unit 5. Canyon Express subsea tieback well capability is based on the same flow line loop. Spar 278
any responsibility or liability for any reference on the Oveng 37.0 29.6 66.6 Sanction to First Production
Semi-FPU Semi-Submersible Floating Production Unit 6. Data for these comparison charts have been derived and updated by Wood Group using information presented. If any information is found to Barge 262
SSTB Subsea Tieback internet research, Wood Mackenzies data, and Energy Maritime Associates and World be incorrect, not current, or needs to be added, please FSRU 254 Magnolia 31.0 36.6 67.6
250 248
TLP Tension Leg Platform Energy Reports. send your comments to posters@WoodGroup.com. FLNG 243 Neptune 34.4 36.1 70.5
238
World Record: Okume/Ebano 36.5 37.9 74.4
Deepwater System Types Deepest 212
Installed TLP Kizomba A 38.0 36.8 74.8
197 AVERAGE TOTAL TIME: 98.77 Months (8.2 Yrs.)
200 Shenzi 42.3 33.6 75.9
Discovery to Sanction: 59.2 Months (4.9 Yrs.)
179 Marlin 43.2 34.1 77.3 Sanction to First Production: 39.6 Months (3.3 Yrs.)
172
Auger 25.5 51.9 77.4
156
150 143 Kizomba B 50.0 35.6 85.6
FLNG FPSO Notes: 135
Project
Prince 68.9 16.8 85.7
1. Pre-FID TLP Ca Rang Do is not shown on this chart until it becomes a sanctioned project.
116 121 Mars 52.9 33.7 86.6
2. Big Foot TLP has not been installed yet.
3. Typhoon TLP was damaged in a GOM hurricane and the hull later reefed. 96 Allegheny 73.9 20.3 94.2
100
4. Hutton TLP has decomissioned in 2002. The topsides were reused and installed on the Prirazlomnaya platform. 84 Jolliet 54.4 45.3 99.7
World Records: 69 Ursa 68.3 31.7 100.0
61
Fixed First TLP - Hutton (Designed by Brown & Root) 52 Papa Terra P-61 49.1 53.8 102.9
Platform Morpeth TLP - First New Generation Wet Tree TLP (Seastar: Designed by SBM Atlantia) 50 45
Compliant 37 39 Moho Nord 74.0 47.7 113.2
New Generation First Generation Dry Tree TLP - Prince (A WorleyParsons Sea/MODEC Design) 30 34
Tower Conventional Semi-FPU
TLP Truss MinDOC Worlds Deepest Installed TLP - Magnolia 4,674 ft (1,425 m); Operator: ConocoPhillips 20 22 24 Heidrun 71.0 53.0 124.0
TLP 14 16
Spar Classic Spar Cell Control Subsea
1 2 4 4 4 6 6 7 10 Hutton 91.8 47.6 139.4
Spar Buoy Tieback
Subsea Manifold 147 m 271 m 335 m 345 m 454 m 503 m 518 m 536 m 565 m 639 m 780 m 858 m 872 m 894 m 910 m 945 m 980 m 986 m 1,006 m 1,009 m 1,021 m 1,021 m 1,158 m 1,180 m 1,200 m 1,280 m 1,311 m 1,333 m 1,425 m 1,581 m 0 Stampede 99.9 44.0 143.9
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
COURTESY: 482 ft 889 ft 1,100 ft 1,132 ft 1,490 ft 1,650 ft 1,699 ft 1,759 ft 1,854 ft 2,097 ft 2,559 ft 2,816 ft 2,862 ft 2,933 ft 2,985 ft 3,100 ft 3,216 ft 3,236 ft 3,330 ft 3,310 ft 3,349 ft 3,350 ft 3,800 ft 3,872 ft 3,937 ft 4,200 ft 4,300 ft 4,373 ft 4,674 ft 5,187 ft Malikai 99.1 47.3 151.9
UK Equatorial Norway Norway US GOM Equatorial US GOM US GOM Malaysia US GOM West Africa US GOM US GOM US GOM US GOM US GOM US GOM US GOM Angola US GOM Indonesia US GOM US GOM Brazil Angola US GOM US GOM US GOM US GOM US GOM (1)
Note: FSRU count excludes regas carriers not in terminal service. Source: IMA World Energy Reports Olympus 95.6 51.0 146.6
Guinea Guinea COURTESY: World Energy Reports LLC
Worldwide Progression of Water Depth Capabilities for Offshore Drilling & Production (Data as of March 2017) Ram/Powell 115.8 31.6 147.4
Present
Spars, DDFs, DDCVs Sanctioned, Installed or Operating As of March 2016 COURTESY: Semi-FPS/FPUs Deepest Facilities Sanctioned, Installed or Operating As of March 2017 COURTESY:
Brutus 117.3 30.2 147.5
(4)
13,000 (3,962.4 m) Big Foot 59.2 90.3 149.5
Legend: Platform/Floater
Snorre A 101.0 50.5 151.5
12,000 (3,657.4 m) Neptune Medusa Genesis Gunnison Front Runner Boomvang Nansen Titan Tahiti Aasta Hansteen Tubular Bells Holstein Kikeh Mad Dog Hoover/Diana Constitution Red Hawk(1) Heidelberg Horn Mountain Devils Tower Lucius Perdido Who Dat P-40 Gumusut P-51 Mad Dog 2 Delta P-56 P-55 Roncador P-52 Thunder Thunder Na Kika Blind Faith Jack/St Malo Atlantis Appomattox Independence
Exploration
Subsea 1997 2003 1999 2003 2004 2002 2002 2010 2009 Spar FPSO 2014 2004 2007 2005 2000 2006 2004 2016 2002 2004 2015 2010 2011 2004 Kakap 2009 2021 House 2011 Module III Roncador Hawk Horse 2003 2008 2014 2007 2018 Hub
2018 2012 2015 2013 2007
0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264
11,000 Denotes Current World Record World Record Current World DP (3,352.6 m) 2009 2008 2007
Deepest Subsea Tree
9,627' (2,934 m)
Drilling Record for 2016 & 2017 Months
Raya-1 exploration well offshore Notes:
10,000 US GOM, Tobago
Operator: Shell
Uruguay for Total. Spudded (3,047.9 m)
1. Olympus is the second TLP in the Mars Field and the discovery to first oil time period is not a representative comparison to the rest of the chart.
April, 2016 in 3,400 m (11,155'),
Rig: Maersk Venturer drillship. 2. Sanction - Is the date or milestone event when the Operator and/or the Partners authorize the project to proceed into the Project Execution Phase.
9,000 Operator: Total (2,743.1 m) 3. Typhoon TLP was reefed as result of overturning due to Hurricane Rita in Sept., 2005.
World Record: World Record: 4. Big Foot - First Production is estimated to occur in mid-year of 2018. The Operator has not indicated a specific target date in 2018.
5. Project Sanction is also referred to as FID - Final Investment Decision.
8,000 (2,438.3 m) Deepest Spar Deepest

6. Morpeth TLP was eliminated from the cycle time analyis because it is an outliner.
Semi-FPS
7,000 (2,133.5 m)
Spar Cycle Time Analysis Discovery to First Production (months) As of March 2017
6,000 World Record (1,828.7 m) Record: Fastest Cycle Time for field development using a Spar for the host facility.
Deepest Floating Facilty in 2016 Red Hawk 10.6 24.2 34.8 COURTESY:
9,500' (2895.5 m)
5,000 US GOM - Stones Field (1,523.9 m) Horn Mountain 14.6 25.1 39.7 Legend:
Turitella FPSO
Operator: Shell Gunnison 16.8 25.5 42.3 Discovery to Sanction (2)
4,000 (1,219.1 m) Estimated Sanction to First Production
Front Runner 11.2 34.7 45.9 Sanction to First Production
3,000 (914.4 m)
Notes:
Medusa 16.6 32.3 48.9
1. Year indicates first year of oil/gas production. Devils Tower 17.5 33.6 51.1 TOTAL TIME AVERAGE: 76.1 Months (6.34 Years)
2,000 (609.6 m) 2. Operator named is the current Operator of record. Discovery to Sanction: 42.1 Months (3.51 Years)
Constitution 26.2 26.4 52.6
Sanction to First Production: 34.0 Months (2.83 Years)
1,000 (304.8 m) World Records: Lucius 23.9 37.0 60.9
First Spar - Neptune (Deep Oil Technology Classic Spar) World Records:
First Truss Spar - Nansen (Technip) First Semi-FPU - Argyll (Converted MODU) Kikeh 25.4 36.5 61.9
0 0
First Cell Spar - Red Hawk (Technip) First Wet Tree DDS - P-51 (Aker DDS)
Holstein 31.0 38.8 69.8
Project
1950 1960 1970 1980 1990 2000 2010 2017 First Drilling/Production Spar - Genesis (Technip) First Dry Tree DDS - Cheviot (Moss Octabuoy)
Worlds Deepest Semi-FPU and FPS - Independence Hub (SBM Atlantia DDS) Mad Dog 37.4 34.9 72.3
World's Deepest Spar - Perdido (Technip)
Year COURTESY:
Heidelberg 51.8 31.4 83.2
588 m 678 m 792 m 960 m 1,015 m 1,053 m 1,121 m 1,220 m 1,250 m 1,300 m 1,311 m 1,324 m 1,330 m 1,348 m 1,463 m 1,515 m 1,616 m 1,616 m 1,653 m 1,710m 2,165 m 2,383 m 945 m 1,080 m 1,189 m 1,255 m 945 m 1,379 m 1,700 m 1,707 m 1,795 m 1,845 m 1,849 m 1,933 m 1,980 m 2,134 m 2,156 m 2,222 m 2,414 m Tahiti 40.1 44.6 84.7
1,930 ft 2,223 ft 2,599 ft 3,150 ft 3,330 ft 3,453 ft 3,678 ft 4,000 ft 4,100 ft 4,265 ft 4,300 ft 4,344 ft 4,364 ft 4,420 ft 4,800 ft 4,970 ft 5,300 ft 5,300 ft 5,423 ft 5,610 ft 7,100 ft 7,817 ft 3,100 ft 3,542 ft 3,900 ft 4,117 ft 3,100 ft 4,524 ft 5,576 ft 5,599 ft 5,888 ft 6,050 ft 6,065 ft 6,340 ft 6,494 ft 7,000 ft 7,072 ft 7,333 ft 7,918 ft
Worldwide Locations of Deepwater Facilities and Status - As of March 2017 Deepwater Asset Totals by Location US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM Norway US GOM US GOM Malaysia US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM Brazil Malaysia Brazil US GOM US GOM Brazil Brazil Brazil US GOM US GOM US GOM US GOM US GOM US GOM US GOM US GOM
Perdido 55.6 41.0 96.6
Neptune 84.8 26.9 111.7
Brazil 66 MAJOR LOCATION ENVIR. Hoover/Diana 84.1 32.9 117.0
(3, 5, 7) Deepwater Field Development INSTALL RISERS EXPORT OPTIONS
Total MBOE/D Production Throughput Capacity By Deepwater Facility Type as of March 2017 Water Depth Range Comparison (2, 3) CAPABILITY APPLICATION CONDITIONS
& PRODUCTION
By Deepwater Facility Type as of March 2017
AREAL EXTENT
US GOM 55 Titan 78.2 39.8 118.0
COMPLETION
Concept Selection Matrix
RESERVOIR
TREE TYPE
PAYLOAD SENSITIVITY (HIGH/MEDIUM/LOW)
West Africa 53 OIL GAS Genesis 80.2 44.4 122.0
North Sea 47 0 50 100 150 200 250 300 350 400 0' 1,000' 2,000' 3,000' 4,000' 5,000' 6,000' 7,000' 8,000' 9,000' 10,000' Tubular Bells 95.7 37.0 132.7
Deepwater Facility Type Deepwater Facility Type
35 Legend:
AREA WITH HURRICANES/TYPHOONS

Southeast Asia Boomvang 145.0 23.0 168.0
DECK/HULL MATING W/ FLOATOVER

27 253
J
Legend: 1,025' 1,353' 1,700' Legend:
DECK/HULL MATING @ FAB. YARD

Australasia 17 1. Conventional Fixed Platform Installed Aasta Hansteen 190.1 60.7 250.8
FIELD APPLICATION EXPERIENCE

1. Conventional Fixed Platform
J
Field Proven Indicates Installed Facility (Proven) Field Proven Indicates Installed Facility (Proven)
DECK/HULL MATING OFFSHORE

China 16 Amberjack Bullwinkle Qualified Indicates Sanctioned Facility (Qualified) Cognac Bullwinkle Qualified Indicates Sanctioned Facility (Qualified) Qualified
China
Canada
J
Mexico GOM 5 77 94 165 277 Conceptual Not Sanctioned/Sanction Pending Conceptual Not Sanctioned/Sanction Pending 0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264
NEARBY INFRASTRUCTURE
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 1,000' 1,280' 1,742' 3,000'
Conceptual
HYBBRID RISER CAPABLE
LNG TANKER TRANSPORT

STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 2. Compliant Tower Decommissioned or Removed Facility
2. Compliant Tower Decommissioned or Removed Facility
FLEXIBLE PIPE CAPABLE

India/Middle East 4 S/UC 0 0 0 0 0 0 0 Lena,
S/UC 0 0 0 0 0 0 0 Baldpate Tombua Landana
Months
See Water Depth Range Graph WATER DEPTH RATING
GAS EXPORT PIPELINE

OP 12 1 0 0 0 0 13 Petronius BBLT Lena BBLT Petronius
OIL EXPORT PIPELINE

OP 2 0 0 0 0 0 2 North Sea N. Africa/Med. 3 AVAIL/AB 3 0 0 0 0 0 3
10 50 200
1,000' 4,526' 10,000'
SMALL FOOTPRINT
AVAIL/AB 0 0 0 0 0 0 0 3. FDPSO (SBM, Prosafe, OPE SSP)
GAS REINJECTION
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL Canada 2
SHUTTLE TANKER
Totals 15 1 0 0 0 0 16
Totals 2 0 0 0 0 0 2 S/UC 2 0 0 1 0 0 3 Azurite
3. FDPSO (SBM, Prosafe, OPE SSP) Semi FPS Cycle Time Analysis Discovery to First Production (months) As of March 2017
4. FPSO
SCR CAPABLE
13 35 60 75 130 160 179 200 203 236 243 287 300 313 317 Azurite 4,592' Mustang Estimate
PRODUCTION
OP 23 14 2 0 0 0
SMALL AREA
39
LARGE AREA
AVAIL/AB 3 1 1 0 0 0 5 A. New Build 4. FPSO 66' 298' 2,510' 3,937' 4,461' 4,796' 5,260' 6,500' >10,000' Record: Fastest field development cycle time using a Semi-FPS as the host facility.
WET TREE
DRY TREE
COURTESY:
DRILLING
STORAGE
Totals 28 15 3 1 0 0 47 San Jacinto Dalia Girassol Cidade de Usan Egina Schiehallion Akpo A. New Build Delta House 8.6 28.0 36.6
REMOTE
BW Catcher Cidade de Campos dos Goytacazes Ansuria
BENIGN
Caraguatatuba MV27 Erha, Kizomba A BW Catcher Agbami 7,053'
HARSH
Sea Eagle Cidade de Campos dos Goytacazes Kizomba A, Seillean 7,021' 7,218'
13 30 35 51 80 108 119 130 150 169 185 197 212 220 Norne Hai Yang Shi You 113 Girassol Egina 7,050' Argyll 17.4 22.9 40.3
US GOM Triton 1,640' 2,198' 3,396' P-63 Dalia 4,856' 4,920' 5,260' 5,838' 6,561' 6,995' 7,349' 8,530' >10,000'
50' 299' 328' 9,500' Legend:
B. Conversion 360' Espirito Santo PSVM Cidade de Itaguai Green Canyon 29 23.1 23.9 47.0
Cyrus FPF1 Espirito Santo, P-48 P-66 Yuum K'ak'Naab B. Conversion COURTESY: Discovery to Sanction (2)
S/UC 0 2 2 0 0 0 4 New Orleans Cidade de Sao Paulo, Cidade de Marica P-54, Agbami Aje Armada Kraken Fluminense P-48 Xikomba
Dynamic Producer Brazil Capixaba Armada Perkasa Cyrus 394' Armada Olombendo Cidade de Margaratiba BW Pioneer Who Dat 31.1 16.2 47.3 Estimated Sanction to First Production
OP 2 9 15 19 3 0 48 10 30 40 Armada Kraken Armada Olombendo 120
Cidade de Angra dos Reis Cidade de Itaquai MV26
200 400 Prof John Evans Atta Mills
Kaombo GGC,CLM Cidade de Paraty, Cidade de Saquarema,
Cidade de Angra Dos Reis Turitella Conventional Fixed Platform (>1,000') L
North Africa/Med. Kaombo GGC, CLM 80' 292' 512' 1,312' 3,575' Cidade de Marica, Cidade de Sao Vicente P-66 Cidade de Ilhabela >11,000' Sanction to First Production
Compliant Pile Towers L Independence Hub 21.0 27.9 48.9
AVAIL/AB 0 0 2 1 0 0 3 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL C. Unconventional C. Unconventional
Totals 2 11 19 20 3 0 55 S/UC
OP
0
3
0
0
0
0
0
0
0
0
0
0
0
3
(Sevan SSP, Petrobras MonoBR,
Global SSP SSP320 & SSP PLUS)
Piranema
Goliat
Western Isles
Voyageur
Sevan Sevan (Sevan SSP, Petrobras MonoBR,
Global SSP SSP320 & SSP PLUS) Sevan
Western Isles
Hummingbird
Goliat Piranema Spirit Sevan Global SSP FDPSO H H H H L H H H H H H H H H H H H Thunder Hawk 28.0 33.9 61.9
Hummingbird Voyageur Spirit Cooper 33.5 43.9 77.4
AVAIL/AB 0 0 0 0 0 0 0 Southeast Asia 10 40 43 60 90 122 155 175 193 217 231 251 366 1,132' 1,933' 2,862'
FPSO
482' 3,800'
Mexico GOM Totals 3 0 0 0 0 0 3 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 5. Conventional TLP Neptune 4,200' Spread Moored L Buchan A 42.1 38.4 88.7
5. Conventional TLP AVERAGE TOTAL TIME: 118.7 Months (9.9 Yrs.)
India/Middle East
S/UC 0 0 1 0 0 1 2 Moho Nord Jolliet Malikai Marlin Hutton Brutus Auger Ram/Powell Ursa Mars Heidrun Snorre A Hutton(1) Heidrun Mars Auger Ursa Marco Polo 4,300'
Shenzi 4,970'
Turret Moored H H H L H H H H H H H H H H H H H H H H Blind Faith 51.7 37.0 88.7 Discovery to Sanction: 80.7 Months (6.7 Yrs.)
S/UC 0 0 0 0 0 0 0 OP 25 2 1 1 0 1 30
3,937' Sanction to First Production: 38.0 Months (3.2 Yrs.)
OP 4 0 0 0 0 0 4
STATUS FPSO FPU TLP SPAR CT FLNG TOTAL AVAIL/AB 3 0 0 0 0 0 3 42 48 58 63 75 80 93 108 199 250
889' 1,699' 2,816' 3,300' 3,350' 3,863' 4,674' 5,187' 8,000' Round L Gomez (ATP Innovator) 82.0 24.2 100.9
S/UC 1 0 0 0 0 0 1 Totals 28 2 2 1 0 2 35 6. Proprietary TLP (SBM Atlantia SeaStar,
AVAIL/AB 1 0 0 0 0 0 1 OP 3 0 0 0 0 0 3 FourStar UltraDeep, MODEC Moses, FloaTEC ETlp) Shenzi 6. Proprietary TLP (SBM Atlantia SeaStar, TLP Gumusut Kakap 45.4 56.9 102.3
Totals 5 0 0 0 0 0 5 AVAIL/AB 0 0 0 0 0 0 0
Matterhorn Prince
Morpeth Neptune
Big Foot Stampede
Magnolia
Marco Polo Kizomba A, Kizomba B FourStar UltraDeep, MODEC Moses, FloaTEC ETlp)
Oveng
Morpeth Matterhorn
Kizomba B
P61
Stampede Kizomba A 4,344'
Magnolia Big Foot
SBM Atlantia UltraDeep Conventional H H H H H H H H H H H H H H H H H H H H H Kristin 55.4 47.0 102.4
Project
Totals 4 0 0 0 0 0 4 135 155 4,300' 4,364' 5,423'
20 45 58 67 73 78 90 103 133 137 154 1,930' 2,599' 3,453' 3,678' 4,100' 4,420' 4,800' 4,970' 5,300' 5,610' 7,100' 7,816' 10,000' Proprietary H Veslefrikk B 75.3 30.8 106.1
7. Spar/DDCV (Technip, FloaTEC) 7. Spar/DDCV (Technip, FloaTEC) Spar Atlantis 34.0 72.1 106.1
H H H H H H H H H H H H H H H
Neptune Genesis Boomvang Nansen Mad Dog Devils Tower Lucius
Tahiti Lucius
Brazil Red Hawk Neptune, Genesis Mad Dog Constitution 3,300' Tahiti
Holstein Kikeh Constitution Heidelberg
Horn Mtn Perdido Dry Tree M Thunder Horse 23.9 85.3 109.2
STATUS FPSO
S/UC 6
FPU
0
TLP SPAR CT FLNG TOTAL
0 0 0 0 6 West Africa
Tubular Bells Medusa
Gunnison, Boomvang, Nansen
Front Runner Perdido Holstein Hoover/Diana 8. Semi-FPU
A. Wet Tree Conventional
262' 984' 1,116' 2,986' 3,353' 4,101' Tubular Bells Hoover/Diana 5,599' 5,904' 6,298' 6,340' 7,072' 7,333'
Wet Tree H H H M H H H H H H H H H H H H H H Appomattox 65.9 49.9 115.8
8. Semi-FPS 11 98 118 140 170 175 181 230 245 283 315 352 Janice A Troll C Innovator Gumusut P-40 P-51 Mad Dog II P-55 P-52 Na Kika Atlantis Appomattox Semi-FPS/FPU
OP 40 14 1 0 0 0 55 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL Jack St. Malo 83.5 49.3 132.8
A. Wet Tree Conventional Aasgard B Thunder Horse
S/UC 4 0 0 0 0 2 4,500'
AVAIL/AB 3 2 0 0 0 0 5 6
1,223' 6,494' 7,000' 7,920' 12,000' Conventional M Balmoral 109.8 25.0 134.8
OP 39 0 5 0 2 0 46 Australasia Gumusut P-40 Na Kika Troll C
Totals 49 16 1 0 0 0 66 P-22 Moho Bilondo P-26 Atlantis Thunder Horse Troll B sgard B
AVAIL/AB 1 0 0 0 0 0 1 STATUS FPSO FPU TLP SPAR CT FLNG TOTAL 53 72 85 Mad Dog 2 156 167 Appomattox 215 (SBM Atlantia DeepDraft Semi, Aker Solutions DDP, Deep Draft Wet Tree M 137.0
H H H H H H H H H H H H H H H H
Exmar OPTI-EX, FloaTEC DeepDraft Semi, Moss Maritime P-51 Blind Faith Jack/St. Malo Independence Hub SBM DDS, Horton Wison MCF, Njord A 109.6 27.4
Totals 44 0 5 0 2 2 53 S/UC 1 1 0 0 0 1 3 (SBM Atlantia DeepDraft Semi, Aker Solutions DDP, Octabuoy, Horton Wison Multi-Column Floater) Moss Octabuoy Deep Draft Dry Tree M
OP 10 1 0 0 0 0 11 Exmar OPTI-EX, FloaTEC DeepDraft Semi, Moss Maritime 500' 557' 1,000' 12,000' Visund 120.2 36.7 156.9
AVAIL/AB 3 0 0 0 0 0 3 Octabuoy, Horton Wison Multi-Column Floater) Blind Faith Thunder Hawk Who Dat Jack/St. Malo Independence Hub P-51, P-52 Subsea Tieback
Totals 14 2 0 0 0 1 17 C. Dry Tree Deep Draft 33 91 190
C. Dry Tree Deep Draft
(SBM Atlantia DTS, FloaTEC Truss Semi & E-Semi, Cheviot Horton Wison MCF SBM DTS, Horton Wison MCF, Gas Tiebacks H H H H H H H H H H H H H H Na Kika 155.5 38.8 194.3
Aker Solutions DDP, Technip EDP, Moss Maritime Moss Octabuoy Moss Octabuoy Asgard B 173.8 51.5 225.3
(SBM Atlantia DTS, FloaTEC Truss Semi & E-Semi,
Aker Solutions DDP, Technip EDP, Moss Maritime Octabuoy, Horton Wison Multi-Column Floater)
3,608' 5,300' 6,102' 6,750' 7,570' 8,008' 8,381' 9,014' 9,301' 9,627'
Oil Tiebacks
Cheviot Horton Wison MCF Horton Wison MCF 738' Dai Hung 1 221.6 21.4 243.0
Octabuoy, Horton Wison Multi-Column Floater)
9. Subsea Tiebacks Buoy
World Totals 9. Subsea Tiebacks
26 32 52 86 133 412
Mikkel
Ormen Lange Mensa GunFlint Bass Lite Coulomb Perdido Vortex Cheyenne
ShadowCat
Tobago Wellhead Production Buoy H H H H H H H H H H H Snorre B 221.5 36.2 257.7
S/UC 14 3 3 1 0 4 25
%
8.6%
King Kong
Falcon Mensa Canyon Express Scarab Saffron
Ormen Lange Well Control Buoy H H H H H H H H Gjoa 198.6 61.1 259.7
Legend: FLOATING LNG
OP 163 41 24 20 5 1 254 83.5% 0' 1,000' 2,000' 3,000' 4,000' 5,000' 6,000' 7,000' 8,000' 9,000' 10,000'
AVAIL/AB 17 3 3 1 0 0 24 7.9% Sanctioned/Under Const.
0 50 100 150 200 250 300 350 400
(304.8 m) (609.6 m) (914.4 m) (1,219.1 m) (1,523.9 m) (1,828.7 m) (2,133.5 m) (2,438.3 m) (2,743.1 m) (3,047.9 m) Spread Moored H H H L H H H H H H H H H H H 0 12 24 36 48 60 72 84 96 108 120 132 144 156 168 180 192 204 216 228 240 252 264
Totals 194 47 30 22 5 5 303 100.0%
% Total 64.0% 15.5% 9.9% 7.4% 1.7% 1.3% 100.0% 100.0% Numbers are based upon: Energy Maritime Associates and World Energy Reports
Operating
Available or Abandoned
US MMS Definitions:
Turret Moored H H H L H H H H H H H H H H H Months
Shallow Deepwater Ultra Deepwater
(www.worldenergyreports.com) and research by Wood Group. COURTESY: MBOE/D Throughput Round L
1705OFFDWSRPoster_1 1 4/11/17 4:12 PM

to Cosco in China for deferred completion of FLNG enters the picture the PFLNG Satu, began operating for Petronas
the hulls and subsequent topsides integration. The increase in global natural gas demand offshore Malaysia in 650 ft (198 m) of water. It
Other casualties include the Kaombo FP- has encouraged the development of a floating has the capability to liquefy natural gas at a ca-
SOs destined for operation offshore Angola liquefied natural gas (FLNG) market. A recent pacity of 1.2 mtpa. This historic accomplishment
for Total. The initial Kaombo Norte vessel, outlook report from Royal Dutch Shell indicates is expected to be followed later in 2017 with
although more than 75% complete, has been that LNG demand could rise as much as 50% first production offshore northwest Australia
delayed by at least six months and will not from 2014 to 2020, double that of natural gas. from Shells Prelude FLNG vessel which will
reach first production in 2017 as expected. This market has prompted an increase in both have the largest designed capacity at 3.6 mtpa.
The second, Kaombo Sur is also expected to floating LNG (FLNG) vessels and floating stor- There is hesitancy in this market as well, given
be delayed presently from its expected late- age and regasification units (FSRUs). In De- cost and market uncertainty. The PFLNG2,
2017 first production into 2Q 2018. cember 2016, the industrys first FLNG vessel, sanctioned by Petronas to follow Satu, is now
deferred. Similarly Golar LNGs conversion of
Production & Drilling Chokes \ Compact Ball & Check Valves
three vessels to FLNG service have only its first
API Piping Accessories \ Pressure Relief Valves \ Valve Manifold Packages two Hilli and Gimi on target for installation
in 4Q 2017, while the third Gandria is being
deferred until at least 2019.
Compact Manifold Solutions Lower cost programs
being implemented
A proven track record of delivering The industry has responded to longer-term
superior turnkey designs prospects for project sanctioning by negotiating
lower costs between the owner and engineering
firms, fabrication contractors, and vendors. Two
Gulf of Mexico semisubmersible facilities on order
indicate this change. Shells Appomattox project,
sanctioned in 2015, is reported by the operator as
being sanctioned at a 20% lower cost using fewer
wells and design modifications. In December
2016, BP sanctioned the Mad Dog Phase 2 proj-
ect with a semisubmersible after abandoning its
earlier choice of a spar concept. The FID came
in at approximately 50% of its original budget.
CORTEC MPD manifold system In addition to leverage that can be applied
featuring electrically operated 6
orifice drilling chokes and 8 metal to fabrication yards because of reduced work
seated compact double ball valves. there, producers are heavily relying on the
ingenuity of design engineering firms that has
Visit us at OTC brought the industry to its current advanced
105
Booth 4
state of technology. Those firms are responding
By utilizing an extensive line of with innovations in project execution and work
engineered valve products combined with processes that dramatically reduce costs, elimi-
considerable manifold design experience, nate unnecessary deliverables, and streamline
overall project execution.
CORTEC offers a complete solution Initiatives are being undertaken with a focus
that maximizes weight and space on standardizing with proven designs and ex-
savings while providing the highest perience, increasingly automating the informa-
level of performance. tion flow, and streamlining interfaces among
project participants. Improved efficiencies in
CORTEC has the manifold design procurement, tracking, and other critical areas
and manufacturing experience are also leading to cost reductions that should
you can rely on. offer future project breakevens that match
anticipated oil prices.
This year will see a pick-up in deepwater proj-
ect sanctions. However, a rising tide will not lift
all boats. The US Gulf of Mexico, Brazil, Guyana,
and Senegal appear well placed for a rebound.
CORTEC vertical
API 6AV1 rated BSDV system
Nigeria, Angola, East Africa, and Australia are
The Standard impeded by high costs, local content, and/or pu-
in Non-Standard Valve Production
nitive fiscal terms. The slowdown has no doubt
changed the structure of the industry resulting
w w w . us co rt e c. c om \\\\\\\\\\\\\\\\\ in meaner and leaner, but also shrinking in size
Houma 985.223.1966
and scale. In addition, the pool of operators has
CORTEC proudly designs,
manufactures, assembles,
shrunk eight firms now operate ~70% of 40+
Port Allen 225.421.3300
and tests all products in
Houma 6A 0700
16C 0314
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pre-FID deepwater projects. This will certainly
Houston 713.821.0050 the USA. Port Allen 6A 1866 ISO 3101 Q1 3130
slow the flow of new developments.
1705OFF_56 56 4/11/17 4:06 PM

P R O D U C T I O N O P E R AT I O N S
Offshore supply vessel owners Richard Sanchez
facing tough market

IHS Markit
O
ver a period of 70 years, the offshore marked the foundation of Tidewater, which It is a grand story full of people who had the
supply vessel (OSV) industry has went on to become a leader in offshore supply imagination to identify a particular need and
grown and evolved to meet the needs transport. However, the boatmen of Louisiana the force of will to fulfil that need. The story
of ever-more challenging offshore oil had been supporting oil fields in the bays has been repeated over the decades, with OSV
fields. The cyclical nature of the oil and inland waterways as early as the 1940s. companies rising and falling in parallel with
and gas industry generates a repeated succes- By the mid-1950s, competition among the the global demand for oil.
sion of boom and bust business cycles, which US fleet of workboats had grown to include The oil service industry is always at the
periodically roil the OSV industry. many crew boats and tugs. Minor Cheramie mercy of E&P spending budgets. Supply and
At the present time, the value of offshore of L&M BoTruc Rentals had a fleet of oil demand for OSVs drives utilization and day
equipment is down, the value of oil service service boats, but he wanted to offer his cli- rates for the oil service sector. Excess capacity
companies is down, and stock values are ents even better boats. He learned about a drives down utilization and day rates. Insuf-
down. Such a profound market-driven fall shipbuilder in Rhode Island, Luther Blount, ficient capacity drives up rates and creates de-
in values, paired with an apparent imminent who had already designed a workboat with the mand for the construction of new equipment.
recovery, creates significant opportunities cabin located at the front and an open deck at
for investors and entrepreneurs. According the rear, which he called the Botruc. As often OSVs are sticky
IHS Markits Global Supply Vessel Forecast, happens with technological innovation, Blount OSVs have a knack for sticking around in the
demand for platform supply vessels (PSVs) and Laborde almost simultaneously took a market well past their technological obsoles-
greater than 3,000 deadweight tonnes in the significant leap forward in OSV design with cence. With proper maintenance, an OSV can
Americas will bottom out in 2017 with gradual the forward-positioned cabin and an open continue to work for over 40 years. However, the
increases in demand through 2018. clear deck aft. While the two designs were vessels marketability decreases as competitors
Looking back to when the OSV industry different, they were both a major evolutionary offer newer vessels with better technological
first began in the Gulf of Mexico can be very step in the development of modern PSVs and solutions, like faster pumps, fuel efficiency, or
instructive in understanding how the industry anchor handling tug supply (AHTS) vessels. dynamic positioning. OSVs have a relatively low
came to be so oversupplied. The history of offshore supply vessels is negative carry when compared to their earning
one born out of cycles of prosperity and ruin. potential in a reasonably balanced market.
Where it all started
Many think that the OSV industry started Remnants of the past
in 1955 with Alden J. Labordes Ebb Tide, Running up to the infamous 1980s
one of the worlds first purpose-built offshore downturn, US shipyards delivered over 280
supply vessels. The launch of that vessel also OSVs between 1977 and 1983. Of those 280
vessels, only 116 have been scrapped or
The BoTruc built for L&M BoTruc Rentals retired, while 164 (58%) are still in service
was one of the first workboats to have today in West Africa, the Middle East, Mex-
a cabin at the front and an open deck
ico, Southeast Asia, South America, and the
at the rear. (Courtesy L&M BoTruc)
US Gulf (Source: IHS Markit MarineBase).
Of those 164 PSVs and AHTS vessels in
service, 17 continue to work term charters,
62 are trading on the spot market, and 85
are either stacked, inshore, or idle.
OSV construction cycle

The current downturn in offshore services
began in the middle of a major OSV construc-
State of the art: tion cycle which started ramping up in 2011.
the Timbalier Island
While the US drilling moratorium of 2010
platform supply vessel.
(Courtesy Edison Chouest)
and subsequent changes in drilling permits
slowed activity for many months, rig and OSV
demand came roaring back in 2011.
But the OSV market had changed during
the moratorium. According to IHS Markits
Offshore Marine Monthly, over 50 Jones Act
vessels had left the US Gulf, creating a short-
age of workboats. Many of the OSVs involved
in the exodus found long-term charters in
Mexico, Brazil, and West Africa. In 2011, oil
1705OFF_57 57 4/11/17 4:06 PM

companies in the US Gulf led the charge for new capacity with a
surge in rig demand, building up a substantial backlog of long-term
rig contracts stretching out past 2020 (Source: IHS Markits RigBase).
The market for Jones Act OSVs was tight with utilization in the
90-100 percentiles for the larger market categories. The other factor
which led to a major increase in new vessel construction was easy
money. The success of the offshore supply vessel industry attracted
bankers and financiers who added fuel to the fire.
Pile on the debt

US vessel owners took on large amounts of debt as they strove to
meet demand and grow their market share. Hornbeck Offshore Ser-
vices and Edison Chouest Offshore entered into a virtual arms race to
capture more of the fast-growing deepwater supply vessel market. In
December 2011, Hornbeck Offshore Services ordered 16 large PSVs
(5,500-6,200 dwt) plus 16 newbuild options, as was reported by IHS
Markits Petrodaily Marine Newswire Americas Edition.
The PSV orderbook kept growing in 2012 with GulfMark, Tidewater,
Bordelon Marine, Thoma-Sea Shipyard, Gulf Offshore Logistics, and
Abdon Callais Offshore all placing multi-vessel orders for PSVs ranging
from 3,500-6,200 dwt. The icing on the cake came in July 2013 when
Edison Chouest Offshore announced that its US orderbook had surged
to 17 newbuilds plus 20 newbuild options. Later in October, Harvey Gulf
International Marine embarked upon an acquisition campaign, amass-
ing much of the newer shallow-water tonnage under its own banner.
This was also the time when supply vessel owners began to build up
the fleet of Jones Act MPSVs (multi-purpose supply vessels) and subsea
construction vessels. Supported by strong oil prices, shipyards were
sprinting to complete new vessels as soon as possible. The new PSVs were
invariably finding long-term contracts at attractive day rates, often before
they left the shipyard. In the first half of 2014, the market outlook contin-
ued to look favorable, but everything was about to change for the worse.
Market downturn
In mid-2014, at the peak of OSV construction in the United States, the
industry began a downward slide through the latter half of the year as oil
prices began to fall. Oil companies dramatically pulled back from investing
in offshore exploration and production. US shipyard capacity peaked in 2014
with 37 OSV deliveries. By 2015, owners with a large backlog of newbuilds
began to seek ways to slow or delay vessel delivery, in part because taking
delivery of a newbuild triggers financial responsibilities. Some large PSVs
close to delivery were sent back to the yard to be repurposed to support
subsea construction. Several PSVs were outfitted with large cranes, ROV
spreads, accommodation packages and/or helipads. The latest orderbook
for US shipyards has been whittled down to 13 PSVs; and some owner-
operated shipyards are in even less hurry to finish vessel construction.
State of the market

The US Gulf is currently saturated with excess OSV capacity. Further-
more, the foreign markets like Mexico, Brazil, and West Africa, which
once absorbed excess capacity, are also suffering from their own oversup-
ply of available equipment. As of February 2017, IHS Markits RigBase
reported six jackups and 28 floating rigs contracted in the US Gulf, and
those figures are more likely to fall in 2017. Oilfield service markets are
expected to bottom out in 2017, followed by a gradual rise in activity in 2018
(assuming oil prices continue to improve going forward). The recovery
in oilfield demand is expected to be slow, and OSV markets will continue
to face strong headwinds, in the form of excess capacity competing for
the same pool of term charters.
Structural changes
The US Gulf of Mexico is one of the most mature oil provinces in the
world. Historically speaking, the region has consisted of both shallow and
deepwater drilling. However, the future of the US Gulf is in its deepwater
1705OFF_58 58 4/11/17 4:06 PM

mercially viable at current prices. Further-

more, the success of unconventional drilling
is likely to keep North America natural gas
prices depressed well past 2020. The US Gulf
oil service providers will face very different
challenges for shallow and deepwater opera-
tions going forward. IHS Markits Global Supply
Vessel Forecast indicates that OSV demand for
deepwater work will rebound with rising oil
prices; however, shallow-water demand is not
projected to rebound. This creates a rather
dismal forecast for the massive fleet of shallow-
water OSVs, which were built to support robust
jackup demand over a period of 70 years.
Desperate vessel owners have been forced
to fight over the remaining charters, driving
day rates below break-even costs. While many
analysts say that this is an unsustainable situa-
regions; shallow-water exploration and produc- and production. The US Gulf has a long history tion, most shallow-water vessel owners have little
tion are expected to play a much smaller role of robust activity on the continental shelf. At its to no debt on their boats, and are able to run
going forward. This structural change in the peak in 1984, there were over 160 jackups and their companies with extremely low overhead.
demand for oilfield services presents a major nearly 40 floaters working in the US GoM. By What is unsustainable for a corporate service
problem for the industry, which has built up way of contrast, the top of the market in 2014 had company might just be enough to keep some
significant capacity to support shallow water 19 jackups and 53 floating rigs under contract. of these small, family run companies going. It is
operations over the last 70 years. The economics of offshore drilling have simply not in their interest to scrap their boats
Today, the US GoM OSV market is severely changed with the rise of onshore unconven- so that newer tonnage can earn a sustainable
oversupplied with both large and small PSVs. tional oil and gas production. The resources day rate. Some small OSV companies have even
The current fleet of PSVs of less than 2,999 dwt that are left out on the continental shelf are gone dormant; tying up their boats and simply
were largely built to support shallow exploration largely natural gas, and that gas is not com- waiting for better market conditions.
Discover better
designs, faster.
Virtual design exploration increases safety
and innovation while reducing costs
siemens.com/mdx
1705OFF_59 59 4/11/17 4:06 PM

SUBSEA
Subsea industry can learn from vessel

classification to improve safety
Although not required, component verification could prove valuable
T
he advantages of subsea systems Alan Yu The oil and gas industry is using more
have made subsea production a top John Upchurch effective equipment and is focusing on find-
choice for developments in many en- ABS ing better and smarter ways of doing things.
vironments around the world. Inno- Streamlining operations and minimizing down-
vations and improvements are being time are universal objectives, particularly for
introduced that will increase the reliability grow at an estimated 4% compounded annual companies that are looking for ways to thrive
and robustness of these systems, which will growth rate over the 2017-2021 period. During in the current business environment. The
be used in even more developments over that time, drilling and completion expenditure effort expended to improve and enhance pro-
time. Clarksons Research data show that as is expected to total $41.6 billion, accounting cesses during this period of limited activity
of February of this year, 629 fields were us- for 35% of capex. Estimates indicate subsea will be particularly valuable when the market
ing subsea systems. Today, 21% of producing umbilicals, risers, and flowlines, subsea pro- rebounds and the industry resumes a higher
fields employ them. duction equipment, and pipelines will repre- level of activity.
According to analysts at Douglas-Westwood sent a combined 38% of total expenditure. It As the search progresses for value-added
(DW), subsea tree installation activity will is clear that this sector is expanding. offerings, it could be worthwhile to evaluate
As the search progresses for value-added offerings, it could be worthwhile to evaluate what can be learned from vessel classification and how those
lessons can be applied to the subsea sector. (All images courtesy ABS)
1705OFF_60 60 4/11/17 4:06 PM

SUBSEA
what can be learned from vessel classification

and how those lessons can be applied to the
subsea sector.
Classification societies have provided third-
party safety surveys and assessments for a
very long time. In fact, the original members of
the International Association of Classification
Societies (IACS) can trace their history back
more than 150 years. Classification Societies
formed the IACS in 1939, which expanded
over time to include the current 12 member
organizations, which apply their expertise to
promote safety in the marine industry.
Today, classification societies class ships, mo-
bile offshore drilling units and many floating oil
and gas production facilities. In some instances,
when an owner determines not to class a unit,
classification societies often provide third-party
services, verifying that the asset meets certain
applicable safety requirements.
Subsea components including the ris-
er, pipeline and subsea hardware systems It could be worthwhile to evaluate what can be learned from vessel classification and how those
physically connected to the production plat- lessons can be applied to the subsea sector.
forms typically are not subject to the same
process, but it might be valuable for subsea on engineering and analysis. The fabrication the likelihood of keeping the project schedule
components to undergo verification follow- and installation review and verification most and can improve overall project safety, which
ing a similar process to that of the floaters to often are performed by other contractors helps reduce project cost.
which they are attached. because design firms usually do not have Subsea systems are expected to deliver ex-
an in-house survey and inspection system ceptional operational reliability, but the way
Classification process in place. This process places a premium on the subsea industry uses third-party inspec-
To determine whether the classification engineering a proper solution and can miss tors might not support the desired outcome.
process would be beneficial, it is important the fact that not all offshore problems are Leveraging established classification societies
to outline what classification entails at the caused by engineering errors. Manufacturing, processes for hiring and training surveyors or
process level. Class societies develop rules, fabrication, and installation errors can play inspectors could deliver significant benefits. It
guides, guidance notes and standards for the a part as well. Because different operators also could be advantageous to have access to
design and construction of vessels, offshore and contractors have different processes, the an established global network of surveyors
assets, and related equipment and machinery. level and type of review and validation vary and inspectors. Additionally, if it is possible
They review designs and survey the assets widely. And since multiple organizations are to standardize design/fabrication and instal-
during and after construction to verify compli- involved, the records for design, fabrication, lation under a common set of rules like those
ance with the appropriate class rules. They as- and installation often are not consolidated. classification societies have used for vessels,
sign class notation when the unit is verified as The way subsea verification is managed is inspection also will become more standardized.
compliant and record that the unit is classed, very different from the classification process,
and they issue renewable class certifications which assigns engineers and surveyors to Subsea applications
with annual endorsement for five years. carry out the review and survey functions as There might be a question of whether ap-
Vessel classification can be separated broad- part of an integrated process. A centralized plying classification principles to the subsea
ly into design and fabrication and operation system tracks design, fabrication, and instal- industry produces any tangible improvement.
and maintenance. They are generally built to lation verification data, thereby streamlining In fact, doing so delivers several significant
class (and receive a class notation) and then the process and allowing easy data retrieval benefits, including:
undergo periodic survey and inspection by a in a consistent way that saves time and money Consistent application of related rules
societys surveyor to maintain class certifica- and promotes safety. and guidelines
tion. While maintaining class may be required Classification societies develop rules and Qualified personnel to carry out design
in different parts of the world for vessels, guidelines based on knowledge, experience, review and surveys
maintaining class of a permanently moored or and industry input. The rules and guides Robust and reliable recordkeeping sys-
stationed vessel is not required everywhere. form a foundation for developing thorough tems
processes that can be followed consistently Cost savings through the employment
Subsea systems to carry out asset reviews to verify safety. of a global network of surveyors and
Applying the classification process as it is Guidelines and rules are used to develop a inspectors.
followed for asset design, fabrication, and in- complete list of engineering activities that While establishing classification require-
stallation makes sense for subsea equipment. need to be followed to achieve compliance. ments for subsea equipment is not imperative,
Following todays common practice, the opera- This roadmap provides a compilation of major following a systematic method that parallels
tor performs internal reviews or for the Gulf of engineering activities that need to be reviewed vessel classification could produce guidelines
Mexico, chooses a design certified verification by the operator and contracting firms before that establish a similarly uniform approach to
agent (CVA) from an engineering firm. Review being presented for CVA review. design and fabrication that is safe, productive,
work, especially CVA review, generally focuses Having a roadmap and following it increase and efficient for the offshore industry.
1705OFF_61 61 4/11/17 4:06 PM

SUBSEA
Higher-pressure hoses
broaden intervention options
Lightweight construction
suited to reel deployment
James Young
JDR
A
s the industry emerges from the recent period of capital
constraints, conversations about the future are taking on a
more positive tone. It is still early days, but with the need for
more power to be delivered to the seabed for subsea process-
ing, innovation in this field has a more secure place on the
strategy agenda.
New technology developments are making deepwater reservoirs
potentially viable that were previously considered inaccessible. One
example is the emergence of higher-pressure hoses for intervention
work-over control systems (IWOCS) umbilicals and well-bay risers.
IWOCS umbilicals, which have been around for more than 30 years,
contain hydraulic control and chemical injection lines and electrical
A working braider at JDRs Littleport facility in Cambridgeshire, UK.
cables. They perform a vital role in initiating and then improving
(Photos courtesy JDR)
well performance.
Over the past 15 years, industry-standard IWOCS umbilicals have The potential advantages of the new generation of high-pressure
been used to maintain control of valves at the seabed on christmas hoses are wide-ranging. They can be stored and transported on reel-
trees during various stages of start-up operations for a well or field, ers that themselves are smaller and lighter, occupy a much smaller
or throughout the fields life to perform well access activities. These deck footprint and require much less infrastructure to support their
lightweight, highly flexible umbilicals rely on control lines that can weight. That increases the range of vessels that can be used and
withstand up to 15,000 psi (1,034 bar) internal pressure in the flex- consequently assists in reducing the cost of vessel operations. Opera-
ible hoses. tors can therefore cut the overall cost of offshore rigs and platforms.
However, as the industry sets its sights on reserves in ever-deeper Next-generation hoses will also help unlock reservoirs that have not
waters or locations with much greater step-out distances, the 15K previously been accessible, and they can be used topside as well as
industry-standard is becoming one of the constraining factors for new subsea, as well-bay jumpers that connect different parts of a dry tree
well development. Operators now need IWOCS umbilicals that can and the control manifold.
open a valve against much higher reservoir back pressures typically Eventually, the development will likely be extended to use of these
encountered in deeper waters, or to handle the pressure required new hose lines at 20,000 psi in self-supporting high-pressure IWOCS
to pump oil across much longer distances. Demand has therefore umbilicals. In current deployments IWOCS umbilicals are typically
been growing for 20,000 psi (1,379 bar) pressure functionality within clamped to a work-over riser pipe, whereas a self-supporting IWOCS
IWOCS umbilicals. umbilical removes the need for the clamp. In the Gulf of Mexico,
JDR is working to meet this requirement with a new-generation hose where umbilicals can be deployed at 3,000 m (9,842 ft) water depth,
design that is currently in the final stages of critical testing. Last year the process of clamping the umbilical to a riser or wireline becomes
the company successfully qualified a hose capable of withstanding the deployment constraint. A conventional clamped IWOCS umbili-
17,500 psi (1,206 bar) as an intermediate pressure class. cal can take up to eight hours to deploy to full depth, whereas a self-
The key to making both 17,500 and 20,000 psi hoses viable has supporting IWOCS umbilical could take closer to 2.5 hours to deploy,
been in materials development. While high-pressure spiralized, steel- providing significant time and cost reductions. Adding the 20,000-psi
reinforced hoses have been used in intervention and workover control hose solution to the self-supporting set-up would provide even greater
applications in the past, these steel-reinforced solutions inevitably flexibility and opportunity for operators to exploit the cost savings
resulted in a heavier umbilical, increasing the deck-weight required attainable when using high-pressure intervention umbilicals.
for the umbilical and its deployment reeler or winch.
In contrast, the new generation of high-pressure hoses consist of a
polymer liner reinforced with a woven material made of strong, high The author
performance synthetic fibers, with an extruded nylon or polyethylene James Young joined JDR in 2000 as senior design engineer for
new product development. He was appointed Chief Technology
jacket to complete the lighter-weight hose construction. There have
Officer in 2016 after a series of technical management roles
also been significant improvements to the design of end couplings within the business. Previously, he worked for BICC and
in order to maximize pressure containment and achieve the higher Dowty. He has a degree in mechanical engineering, is a Char-
working pressures. tered Engineer and has an MBA from Cranfield.
1705OFF_62 62 4/11/17 4:06 PM

Houston London Paris Stavanger Aberdeen Singapore Moscow Baku Perth Rio de Janeiro Lagos Luanda
May 2017
World Trends and Technology for Offshore Oil and Gas Operations
NOIA National Ocean

Industries Association
Special Report
Photo courtesy McDermott International, Inc.
1705OFF_63 63 4/11/17 3:58 PM

Policy changes in Washington
provide basis for optimistic outlook
T
he seasons are not the only thing Randall Luthi NOIA is calling for a new, and expedited,
changing in Washington, D.C., President Five Year Program; however, President
where this author serves as National Ocean Obamas permanent withdrawal of Arctic
President of the National Ocean Industries Association waters under Section 12(a) of the Outer
Industries Association (NOIA), a Continental Shelf Lands Act (OCSLA) must
trade group representing the interests of be addressed. Under Obamas pen, more
the offshore energy industry. After a year already been used several times than 23 Bbbl of oil and 104 tcf of
(2016) that felt as if it might never end, in 2017. Congress has applied natural gas were rendered inac-
we are now racing through 2017 and not the CRA to take up resolutions cessible. Fortunately, what one
looking back. One of the most welcome on, coal regulations, Bureau of president can do, another presi-
changes in our nations capital, aside Land Management onshore gas dent can undo. A new executive
from the weather, is that both US energy rules, and SEC disclosure rules order reversing the withdrawal
security and regulatory certainty are now for oil companies. would finally give voice to the
in vogue. With President Trumps budget There has also been welcome nearly three-quarters of Alaskan
emphasizing cost-cutting and efficiency progress on the Bureau of Ocean residents and native Alaskans
on the federal side and economic growth Energy Managements (BOEM) who support oil and gas develop-
on the private side, the offshore industry Financial Assurance and Bond- ment offshore Alaska, and would
has the chance to regain ground as a major ing Notice to Lessees (NTL). A Luthi give credence to our nations
economic driver for America. prime example of premature top military commanders who
This is not our first rodeo. Between regulation, the NTL is based on incom- believe such development is a vital piece
2008 and 2013, during the doldrums of the plete data and unrealistic assumptions, and of our national security puzzle. While we
global economic crisis and through the ane- would cost companies an astounding $14.6 stand idle, countries like Norway and
mic recovery, the oil and gas industry was billion, while providing few, if any, safety Russia are upping their presence in Arctic
responsible for nearly 40% of the overall or environmental benefits. Fortunately, waters. These countries are developing
US GDP growth. The offshore sector was after extensive efforts by NOIA and sister infrastructure and projecting their power in
an integral part of this success, contribut- trades, the Obama administration issued the Arctic region. At a time when Russia is
ing $32 billion to the US economy in 2011 a six-month stay of the rule, allowing widely recognized as the top US geopoliti-
alone. Time and time again, the offshore industry more time to provide regulators cal foe, it would seem prudent to at least try
industry has been our nations economic data useful to finding a solution that is to keep up with them in the Arctic.
engine. cost-effective and provides assurance that Finally, we seek approval for seismic
The offshore industry supports more no longer used platforms are timely decom- survey permits in the Atlantic that were
than 240,000 jobs across the country, and missioned. The Trump administration blocked by the previous administration.
in 2016, generated more than $22 billion in subsequently withdrew a sole liability order Claiming environmental concerns, the
direct revenue. And, our industry could do tied to the NTL. outgoing Obama administration issued
even more with the right policies in place, Even with these successes, there is a blanket denial of the permits, despite
an objective regulatory environment, and much to be done, and undone, if the US is BOEMs own top scientists statement that
more access to our offshore resources. to retain its mantle of global energy leader. there has been zero evidence of seismic
After eight long years, we are beginning to First, the 2017-2022 Outer Continental surveys harming marine life. This obvi-
make progress in the right direction. Shelf (OCS) Oil and Gas Leasing Program ously political decision keeps the American
Despite a contentious confirmation is woefully inadequate to meet our energy public in the dark about the true resource
process in the Senate, Congress has been needs. The bottom line is that nearly 94% potential of the Atlantic OCS, because
active in rescinding many of President of our OCS is still off limits to oil and gas existing resource estimates are based on
Obamas midnight regulations. Using the exploration. Crafted under the specter of surveys that are more than 30 years old.
Congressional Review Act (CRA), a legisla- the Keep it in the Ground movement, the While the new administration brings hope
tive tool that allows Congress to roll back current leasing program willfully places for the future, NOIAs work on behalf of the
11th-hour regulations, Congress has sent thousands of jobs and billions of dollars in offshore industry is still clearly cut out for
one resolution after another to President revenue out of reach. Our nation desper- us. NOIA looks forward to working with
Trumps desk to block harmful rules. An ately needs a new Five Year Oil and Gas the administration and Congress to help the
obscure act that had previously been suc- Leasing Program that offers more access offshore industry be the fountainhead of
cessfully utilized just once, the CRA has to our OCS. growth and development that it should be.
1705OFF_64 64 4/11/17 3:58 PM

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1705OFF_65 65 4/11/17 3:58 PM

Has the offshore industry
found its Trump card?
T
his industry executive is honored to David H. Welch economic lifeline of Alaska, US energy
chair the National Ocean Industries Chairman, leadership, and US national security. Three-
Association (NOIA) for the 2017- National Ocean quarters of Alaskans who support offshore
2018 term. This will be a very busy Industries Association access, as well as US military leaders who
time in Washington, D.C., for issues argued that offshore access is the ticket
important to Americas energy industry. President & CEO, to developing vital Arctic infrastructure,
After eight years of many short-sighted, Stone Energy Corp. were denied credence. Instead, the Obama
politically-driven anti-fossil fuel policies and administration opted to gain points with the
a barrage of harmful regulations, the new anti-fossil fuel crowd and showcase Alaska
administration and Congress could make ing weeks of the Obama admin- as a political snow globe.
gains toward getting Americas energy istration, which were marked by These issues underscore a
industry back on track. However, if the a flurry of harmful rule makings larger challenge; nearly 94% of
United States is to maintain its role as the and executive actions. In one of our offshore areas are off limits
global energy leader, there is much work to their final salvos, the administra- to offshore exploration and
be done and undone. tion issued a blanket denial of development. In March, Interior
So far, President Trump has made seismic survey permits for the Secretary Zinke made the most
good on his election promises to reduce Atlantic outer continental shelf of this constricted situation by
the regulatory fiat in Washington. The (OCS). After citing concerns including all available unleased
president signed a one-in-two-out order about marine mammal safety, areas in the Gulf of Mexico
that requires agencies to eliminate two the administration pinned this in the first offshore lease sale
regulations for every new one they imple- decision, in part, to the lack of Welch of the current Five Year OCS
ment, and another order that establishes an Atlantic lease sale in the Final Leasing Program. However, the
regulatory task forces to determine which 2017-2022 Five Year Plan. One could drive bottom line is the current Five Year Plan is
regulations should be kept, repealed, or a cargo vessel through the gaping holes a shortsighted and narrow legacy of anti-
revised. These executive orders and others in this flawed logic. First, the administra- fossil fuel activists, such as the politically
may finally give businesses the opportunity tions own scientists have stated that there driven keep it in the ground movement.
to work with the regulatory agencies to is zero documented evidence of seismic Fortunately, we are now seeing some
promote regulations that provide a safe and surveys harming marine mammals or the major attitude changes toward offshore en-
stable environment, without hamstring- environment. Second, blocking the permits ergy development in Washington, D.C. And
ing efforts to develop safe and affordable keeps Americans, including those with the as we well know, what happens in Wash-
energy for US consumers. most at stake from any potential oil and ington does not stay in Washington. For
There has also been progress on Capitol gas exploration and development, in the the first time in years, we appear to have
Hill. Congress has sent multiple Congres- dark about the true extent of our offshore an administration that will at least listen to
sional Review Act (CRA) measures to resources. Since most of the Atlantic area what the offshore industry has to say. This
President Trumps desk, with more poised seismic data is over three decades old, alone is a very significant change from the
to follow. In addition, important measures the decision unwisely takes these areas previous eight years.
have been introduced to provide a path to- off the table without even really knowing Energy, particularly fossil fuel-based
ward increased access to the OCS and rev- what resources are out there. Finally, it was energy, is the cornerstone of our economy
enue sharing for coastal states. While the the administrations decision to remove and most experts predict it will remain
Senate moved slowly through consideration the Atlantic sale from the Five Year Plan, so for at least the next 25 years. Nothing
of President Trumps cabinet nominees, thus providing a self-fulfilling basis for the moves and nothing gets made without
with the debate taking an unusually conten- seismic decision. energy. Having an administration that
tious tone, in March, Representative Ryan Unfortunately, this was not the only body actually understands this and engages with
Zinke (R-MT) was confirmed as Interior blow the administration struck on the way the energy industry, instead of issuing
Secretary by a rare bipartisan showing. As out of town. Along with dropping potential arbitrary and harmful politically-expedient
a member of the House Natural Resources lease sales in the Beaufort and Chukchi rules and regulations, should be a comfort
Committee, Representative Zinke has been seas off Alaska, the Obama administration to every company and every employee in
an advocate for an all-of-the-above energy withdrew the entire Chukchi Sea Planning the offshore energy industry. As the Chair-
strategy for our country. Furthermore, Area and the majority of the Beaufort Sea man of NOIA, this industry official looks
as a former Navy SEAL commander, he Planning Area from future leasing consid- forward to the possibilities of 2017-2018, in-
understands the national security benefits eration, claiming authority under Section cluding new opportunities for the offshore
of American energy production. 12(a) of the Outer Continental Shelf Lands oil and gas industry, a critical contributor to
What a welcome contrast from the wan- Act (OCSLA). This decision threatens the Americas economic and energy security.
1705OFF_66 66 4/11/17 3:58 PM

NOIA represents all phases
of offshore energy
The National Ocean Industries Association (NOIA) is coalition that achieves positive results in Washington,
the only national trade association representing every D.C.
segment of the offshore energy exploration and produc-
tion industry. Tradition of service
Comprising more than 275 companies, NOIA represents offshore NOIAs staff wields the combined clout of every one of the mem-
drillers, producers, supply vessels, air transport, geophysical survey, ber companies as it advocates before Congress and the Executive
shipyards, offshore construction, wind power, equipment manufac- Branch, and influences industry-related policy decisions.
ture and supply, telecommunications, financiers, insurers, and much NOIA:
more. Facilitates member access to regulatory and legislative
NOIA focuses on two core issues: processes, provides customized advice on policy issues, and
1. Securing reliable access to the nations valuable offshore energy works to favorably impact policy decisions relating to the
resources in order that they may be developed, produced, and offshore industry
supplied in an environmentally responsible manner Engages the media and the general public in a constructive
2. Improving the economic climate for NOIA members to con- dialogue on energy issues, showcasing the industrys techno-
duct business in the United States. logical pioneering and environmental performance
Hosts the two largest annual gatherings of senior executives
About NOIA in the offshore oil and gas industry
In 1972, industry leaders joined together to form NOIA a Legislative Strategy Group facilitates the cooperative devel-
unique organization interested in expanding the federal offshore opment of industry-wide strategies for effectively impacting
leasing program by promoting the safe and efficient development legislative and regulatory decision-making
of outer continental shelf lands. NOIAs advocacy relies on the Promotes and supports outreach programs that educate the
guidance of the entire spectrum of the offshore energy and related public about energy issues and help the nation make informed
industries. Today, more than 250 companies have united in support decisions concerning the use of energy, such as the National
of reliable access to offshore energy resources, forming a powerful Energy Education Development project.
The latest Offshore news,

when you want it!
Download Offshores Mobile App now!
1705OFF_67 67 4/11/17 3:58 PM

NOIA Board of Directors
and Executive Committee*
Chairman Mark Hatfield Mark Meunier
*David H. Welch Vice President Gulf of Mexico Vice President
President & CEO Chevron North America Kiewit Offshore Services, Ltd.
Stone Energy Corporation
Todd Hornbeck William New
Vice Chairman Chairman, President, CEO President
Hornbeck Offshore Services New Industries
*John Gellert
President Paul Howes Erik Oswald
Seacor Marine President & CEO Vice President, Americas
Newpark Resources Inc. ExxonMobil Exploration Company
*Bob Abendschein
Vice President, Deepwater Americas Lee Jackson Doug Pferdehirt
Anadarko Petroleum Company Chairman & CEO CEO
Jackson Offshore Operators TechnipFMC
*Erik Bartsch
Exploration Manager Kenny Lang Matt Ralls
Gulf of Mexico President & COO Retired
Shell Energy Resources Ridgewood Energy Corporation Rowan Companies
Christian Beckett Cliffe Laborde David De Roode
Chief Executive Officer Managing Member Senior Vice President, Member
Pacific Drilling, S.A. Laborde Marine Management, LLC Lockton Marine & Energy
Beau Blake Carri A. Lockhart Donald Ross
President & CEO Senior Vice President US Vice President, General Manager
Blake USA Rigs, LLC Statoil Canada, Gulf & Caribbean Offshore
Schlumberger
Stuart Brightman *Richard Lunam
President & CEO President, Exploration *John Rynd
TETRA Technologies BD, & Other International Ex-Officio
ConocoPhillips NOIA Chairman
*Richard Clark
President *Matt McCarroll Douglas Stephens
Deep Gulf Energy President & CEO President & CEO
Fieldwood Energy LLC Franks International N.V.
Galen Cobb
Vice President Mike McCauley *Cindy Taylor
Industry Relations Operations General Manager President & CEO
Halliburton Arena Offshore Oil States International
Gene Coleman *Kevin McEvoy Jamie Vazquez
Executive Vice President CEO Houston, Texas
Global Offshore Operations Oceaneering International
Murphy Exploration & Production Co James Wicklund
Kirk Meche Managing Director
Paul Danos President, CEO, Director Credit-Suisse LLC
Executive Vice President Gulf Island Fabrication, Inc.
Danos *David Williams
Richard Morrison Chairman, President, CEO
Cornelius Dupre Regional President, GOM Noble Corporation
Chairman BP
Dupre Energy Services, LLC Richard Williams
Lee Orgeron Global Business Line Manager
*Robb Erickson President Construction Support
Vice President Sales Montco Offshore, Inc. Fugro, Inc.
Heavy Marine Transport
Boskalis Offshore William Pecue, II Robert Workman
President President & CEO
*William F. Flores, Jr. Taylor Energy Inc. DistributionNOW
Houston, Texas
*Jeff Platt
*Bruce Gresham President & CEO
President, North America Tidewater, Inc.
Heerema Marine Contractors U.S. Inc.
1705OFF_68 68 4/11/17 3:58 PM

Making the Offshore
Industry Great Again!
As the new Administration
and Congress heat things up in
Washington, DC, there are signs of a
thaw in the regulatory environment
that has chilled the offshore industry
in recent years.
The National Ocean Industries
Association (NOIA) is seizing this
energy moment to fight even harder
for increased access and a fair and
stable regulatory environment
offshore.
For over 40 years, NOIA has
advocated on behalf of the offshore
industry. Join us today to make
your voice heard and help make the
offshore industry great again!
For information about joining NOIA, visit www.noia.org
or email membership@noia.org
1705OFF_69 69 4/11/17 3:58 PM

NOIA Membership
DRILLING CONTRACTORS Bechtel Corporation Red Willow Production

Atwood Oceanics, Inc. Bisso Marine Company, Inc. Ridgewood Energy Corporation
Blake International Rigs, LLC Boskalis Offshore Shell Exploration & Production Company
Diamond Offshore Drilling, Inc. Cal Dive International, Inc. Shell Energy Resources Company
ENSCO plc Danos Shell Oil Company
Noble Corporation plc Delmar Systems, Inc. Statoil
Pacific Drilling, S.A. Gulf Copper Manufacturing Corp. Stone Energy Corporation
Rowan Companies, plc Gulf Island Fabrication Southern Ute Indian Tribe Growth Fund
Transocean Management Ltd. Heerema Marine Contractors U.S. Inc. Talos Energy LLC
Intermoor, Inc. Taylor Energy Company
Kiewit Offshore Services, Ltd. Venari Resources
EQUIPMENT
Kiewit Energy Company W&T Offshore
MANUFACTURERS McDermott International Walter Oil & Gas Corporation
& SUPPLIERS Chet Morrison Contractors
Cameron New Industries SERVICE
Cameron Drilling Systems Oceaneering International, Inc. Acteon Group Limited
Cameron Subsea Systems Subsea 7 American Bureau of Shipping (ABS)
Cameron Surface Systems TechnipFMC American Pollution Control Corporation
Cameron Valves & Measurement Group (AMPOL)
Chickasaw Distributors Inc. PROUDUCING/OPERATORS Baker Hughes Incorporated
DistributionNOW Anadarko Petroleum Corporation Baker Hughes US Region
Dril-Quip Inc. ANKOR Energy LLC Baker Hughes US Land
Flowserve Pressure Pumping Region
Apache Corporation
GE Oil & Gas Baker Hughes Gulf of Mexico Geomarket
Arena Energy, L.P.
Hoover Container Solutions, Inc. Baker Hughes Global Products & Services
Arena Offshore, L.P.
Hunting plc Baker Hughes Drilling & Evaluation
BP
JDR Cable Systems (Holdings) Ltd. Baker Hughes Completions & Production
Cape Wind Associates LLC
National Oilwell Varco Baker Hughes Industrial Portfolio
Castex Energy, Inc.
Oil States International Baker Hughes Pressure
Chevron U.S.A. Inc. Pumping Product Line
RSC Bio Solutions Chevron North America E&P
Serimax North America, LLC Booz Allen Hamilton
Cobalt International Energy, LP Cenergy International Services LLC
TechnipFMC ConocoPhillips
Vallourec USA Corporation CGI Solutions
Cox Operating CGI Technologies & Solutions
Vallourec Star, LLC Deep Gulf Energy LP
Vallourec Tube Alloy, LLC Continental Shelf Associates
Deepwater Wind CORE Laboratories
VAM Drilling, USA Ecopetrol America Inc.
VAM USA LLC CSA International
EnVen Energy Ventures LLC CSA Ocean Sciences
ExxonMobil Exploration Company Delta Subsea
GEOPHYSICAL/ ExxonMobil Corporation Dupre Energy Services
SEISMIC SERVICES ExxonMobil Production Company Excelerate Energy
Fairfield Nodal Fieldwood Energy LLC Exmar Offshore Company
Fugro (USA) Inc. Hess Corporation Franks International N.V.
Fugro Chance Inc. Houston Energy, LP Gauthiers A MODEX Company
Ion Island Operating Company, Inc. GH Services, LLC
Sonardyne Inc. LLOG Offshore Exploration, LLC Gibson Applied Technology Engineering
Spectrum Geo, Inc. Murphy Exploration (GATE)
& Production Company Greater Lafourche Port Commission
TGS
Murphy Oil Company Greenwell Energy Solutions
Nexen Petroleum USA Inc. Halliburton
MARINE CONSTRUCTION/ Noble Energy Inc. Marine Spill Response Corporation
CONTRACTORS Petro-Hunt LLC (MSRC)
Aker Solutions PetroQuest Energy, Inc. Newpark Drilling Fluids LLC
Aqueos Corporation Petsec Energy Inc.
continued on page 72 ...
1705OFF_70 70 4/11/17 3:58 PM

One Wood Group.
One Choice.
Full asset life cycle solutions
We provide smart technical solutions which
create and sustain value for our customers.
www.woodgroup.com
1705OFF_71 71 4/11/17 3:58 PM

NOIA Membership
Newpark Resources, Inc. PROFESSIONAL Haynes & Boone LLP

Ocean Specialists Inc. GROUPS: Perkins Coie LLP
Offshore Energy Services, Inc. BANKING & INVESTMENT Venable LLP
OGRS, LLC Vinson & Elkins
Blackhill Partners
Pegasystems, Inc.
Capital One Bank
Pharma- Safe Industrial Services Inc. ALLIED TRADE
Credit Suisse, LLC
Preng & Associates LLC ASSOCIATIONS
First Reserve Corporation
The Reach Group
Global Energy Capital Alaska Oil & Gas Association (AOGA)
RYCO Energy Solutions
Iberia Capital Partners American Exploration
Schlumberger & Production Council (AXPC)
Intervale Capital
Stress Engineering Services American Petroleum Institute (API)
Raymond James & Associates
Superior Energy Services, Inc. Association of Diving Contractors
JP Morgan Chase Bank
Technology Systems Corp Center for Offshore Safety (COS)
OFS Energy Fund, LLC
Teledyne Marine Consortium for Ocean Leadership
PPHB
TETRA Technologies, Inc. Consumer Energy Alliance
Phelps Dunbar LLP
Texas Institute of Science The Energy Council
Regions Bank
Upstream Engineering, LLC Gulf Economic Survival Team (GEST)
Scotiabank
Wellsite Rental Services Independent Petroleum Association
SCF Partners
Wood Group Mustang, Inc. of America (IPAA)
Simmons & Company International
International Association
Telos Resources LLC
SHIPYARDS of Drilling Contractors (IADC)
Wells Fargo Energy Group International Association
Edison Chouest Offshore
of Geophysical Contractors (IAGC)
COMMUNICATIONS International Marine Contractors
TRANSPORTATION Association (IMCA)
Foster Marketing
Aries Marine Corporation International Petroleum
Gulf Publishing Company Museum & Exposition
Bristow Group, Inc. Hart Energy
Bristow U.S. LLC Louisiana Mid-Continent
Offshore PennWell Publishing Company Oil & Gas Association (LMOGA)
C&G Boats, Inc. Sea Technology Compass Publications Louisiana Oil & Gas Association (LOGA)
Canal Barge Company
Natural Gas Supply Association (NGSA)
Otto Candies LLC CONSULTING Offshore Marine Service Association
Crosby Tugs LLC (OMSA)
ABS Group
Crowley Maritime Corporation Offshore Operators Committee (OOC)
HCMC Group, LLC
Crowley Solutions Petroleum Equipment Services
Tata Consultancy Services Limited
ERA Group, Inc. Association (PESA)
Westney Consulting
Gulf Logistics, L.L.C. South Central Industrial Association
Gulfmark Offshore, Inc. (SCIA)
Hornbeck Offshore Services, Inc.
INSURANCE UNDERWRITERS Texas Oil & Gas Association (TXOGA)
Jackson Offshore Operators Aon Risk Services US Energy Association (USEA)
Kilgore Marine Ellsworth Corporation US Oil & Gas Association
Laborde Marine Management Arthur J. Gallagher & Co.
MNM Boats, Inc. Lockton Marine & Energy INDIVIDUALS
Dale Martin Offshore McGriff Seibels & Williams of Texas, Inc. George Boyadjieff (Past NOIA Chairman)
B & J Martin, Inc. Upstream Brokers Lawrence E. Dickerson (Past Chairman)
Montco Offshore, Inc. William F. Flores, Jr.
Montco Oilfield Contractors, LLC LAW FIRMS Marc A. Lawrence
PHI, Inc. Beveridge & Diamond, P.C. William Sears
SEACOR Holdings Inc. Blank Rome LLP Chris Seaver (Past NOIA Chairman)
Sea Tran Marine, LLC Bracewell & Giuliani LLP Carroll Suggs (Past NOIA Chairman)
Tidewater Inc. Brownstein Hyatt Farber Schreck LLP Robert E. Warren
Tidewater Marine Fowler Rodriguez
United Vision Logistics, LLC Galloway, Johnson, Tompkins,
Burr & Smith, PLC
1705OFF_72 72 4/11/17 3:58 PM

Visit us Booth 3145
1705OFF_73 73 4/11/17 3:55 PM

FRANCE
Oil and gas association adapting

to emerging energy priorities
E
VOLEN is the new name for GEP-AFTP, Jeremy Beckman appointed and he is putting together the re-
the association created in July 2011 fol- Editor, Europe quirements for this industry. It is not difficult
lowing the merger of the French oil and to find companies willing to discuss big data
gas supplier council GEP and AFTP, the and the ramifications of digitization to the oil
organization for oil and gas technicians and and gas sector, and there have been many
professionals. Offshore spoke to Chairman underground. And there are other suggestions from our members.
Dominique Bouvier about how the association emerging offshore markets, not Our CLAR-OM committee,
and its members are adjusting as the industry just floating and fixed wind farms, which brings together research in-
emerges from its recent downturn. but tidal energy and also thermal stitutes, oil companies, contractors
energy taking cold water from and suppliers, also organizes semi-
Offshore: What prompted the association under the sea to produce electric- nars for our members on emerging
to change its name last summer? ity. themes. One staged recently was
Bouvier: There were two main factors. The Offshore: How do you assess on opportunities for cost reduction
first was the need to underscore the evolution prospects for recruitment among in the subsea industry.
of our trade association to adapt to the chang- your member companies?
ing priorities of global energy. Second, it had Bouvier: Obviously many Dominique Bouvier.
Offshore: Can you explain and
been five years since the merger had been had to cut staff in response to the (Courtesy EVOLEN) provide an update on the work of
fully completed between GEP, formed in 1953, downturn in offshore. As a result, the OG2P In-Country Value Part-
and AFTP, the association for petroleum pro- we have decided to place a focus on two as- nering Platform (www.og2p.com)?
fessionals founded in 1935. We thought it was pects. One is to offer oil and gas professionals Bouvier: It is now technically ready, and
time to show that the assimilation process was in France that have been made redundant the we are making progress. OG2Ps main goal is
over and that we are building something new. opportunity to stay in the system by participat- to facilitate building of relationships between
ing in our conferences and other networking companies interested in creating in-country
Offshore: Have there been any other chang- events. We have set up specific groups to help value (local content) partnerships. There is real
es to the organization, its committees, and them find jobs in the midstream or down- interest in this service from European compa-
its goals? stream and also created partnerships with nies and from others in oil and gas-producing
Bouvier: Nothing major, the structure is the aerospace and naval sectors, where they countries, with around 100 companies currently
very much as it was, but we are following the can find jobs that make use of their skills in, registered on the OG2P database, although we
evolution of our sector. We are now clearly for instance, inspection, project management, still have to finalize how much this operation
an association with a group of companies and quality assurance. costs, in order to determine the economic vi-
working all the way across the value chain, Another major issue that has to be ad- ability. As an example, an NOC putting out a
from upstream to downstream, and they are dressed is what happens when offshore ac- tender to build a new platform may be keen to
responding to new aspects of the energy mix tivity re-starts how do we ensure that our receive offers from contractors that promote
such as CO2 [carbon-dioxide] sequestration engineering schools continue to attract young integration with their local industry, but at the
and storage and biomass fuels. At the same people to our industry. We have responded same time, the NOC wants assurance of the
time, it is important to acknowledge that our by establishing a committee for younger respondents technical and management capa-
members can do this thanks to the expertise members, and are in the process of forming bility. This platform is designed to help bring
they have built up in the oil and gas business, a new CLAR, or think tank, aimed at attracting together European energy, supplier and logis-
which we remain very much focused on. younger people to the industry. Even though tics companies to submit an efficient tender.
young boys and girls in Frances engineering
Offshore: How strong is EVOLENs current and technical schools tend sometimes to favor Offshore: Can you provide other examples
membership? careers in banking, it is not difficult to explain of how EVOLEN is advancing R&D among
Bouvier: There are currently 250 member to them that many technologies used in other its member companies?
companies and 1,100 personnel, the same as sectors came from our industry. And in the Bouvier: The association leads the CITEPH
under GEP-AFTP last year. That doesnt mean future, if renewables account for 50% of the program, designed to provide SMEs in partic-
the companies are the same: smaller ones in energy mix, these students can see that our ular with funding of promising R&D projects
particular have suffered over the past two companies will play a role in this. And even in the energy sectors. Each year EVOLEN
years. Some have left the association due to if oil is a word that many people do not ap- awards four prizes to talented SMES-SMIs:
financial difficulties, although others have preciate, gas has more favorable connotations. one is for innovation. Last years winner was
replaced them as we enlarge our activities. Spotlight, a small start-up company based
But despite the struggles in the upstream, Offshore: Has EVOLEN created any other near Paris, which is working on spot detec-
there are opportunities in the midstream new CLARs? tion technology for seismic data acquisition.
with pipelines and underground storage. Bouvier: Aside from the 15 that already This provides instant detection of useful data
For strategic reasons various countries are exist, we have committed to a CLAR research from sources and reflectors and develops
thinking of storing their oil and gas reserves club on digitization. A chairman has been algorithms that work faster.
1705OFF_74 74 4/11/17 3:55 PM

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Eiffage Mtal focuses on renewables

E
iffage Mtal has taken a five-year lease of based in Antwerp, is managing the seafastening As the water depths in the Mediterranean
part of OGNs fabrication yard in Wallsend construction program - 5,000 metric tons (5,511 Sea off the coast of southwest France are much
on the River Tyne in northeast England. tons) in total - at different locations on behalf of deeper, future renewable projects here call for
The company is using the site, which it is client TechnipFMC. Altogether, Fos employed floating wind farms. The engineering team at
upgrading with a new crane, to support com- 250 personnel for its part of the campaign. Fos is presently performing basic engineering
ponent construction for a wind farm offshore The yard has also been fabricating 56 anode for a prototype floating wind farm based on a
Aberdeen. In time, it could also include the cages that will be placed around the monopile concept developed by PPI (Principal Power), an
location in its bids for new field developments foundations for the 336-MW Galloper wind engineering company with bases in Berkeley
in the North Sea, where the market looks set farm project, 30 km (18.6 mi) off the Suffolk in the US and Aix en Provence in southern
to pick up from next year onwards. coast in eastern England. The foundations France. The wind farm will be installed in wa-
Since 2015, when Eiffage Mtal delivered are monopile type and this market is drawing ters near Perpignan, close to the border with
manifold/separator modules for the FPU on the experience of the oil and gas sector, Spain. This is a co-operative program with
Alima for Totals Moho-Bilondo project off said Arnaud de Villepin, Managing Director of ENGIE detail engineering should follow next
Republic of Congo, offshore oil and gas project Eiffage Mtals Industrial Division. The cages year, with fabrication due to get under way in
activity globally has been quiet. Like other were constructed in series we built equipment Fos in 2019-20 for four floaters, each with a total
fabricators, the company has sought alter- specially designed to facilitate this process. weight of around 1,800 metric tons (1,984 tons).
native work to sustain its principal yard in Another new project for the yard is the wind Offshore Nigeria, SNEPCO (Shell) is look-
Fos-sur-Mer, southern France, and the facility farm in Aberdeen Bay off northeast Scotland. ing to revive the deepwater Bonga Southwest
currently has a full order book until early 2018. Eleven windmills will be installed on fixed jack- development. If requirements stipulate that the
Last month, it was due to complete fabrica- ets Fos is fabricating the transition pieces living quarters for the FPSO are built locally,
tion of 1,000 metric tons (1,102 tons) of grillage between the jackets and the masts, while the Eiffage Mtal may seek to participate in the
and seafastening for various modules built in site at OGN and Smulders yard in Hoboken, tender as the first contractor to have undertaken
China for the Yamal LNG terminal on the north- Belgium, are working on other structures for the fabrication of offshore platform living quarters
ern Russian coast. The modules are being sent jackets. Offshore windmills are getting larger in Nigeria. Another recently reactivated project
to Zeebrugge on the Belgian coast for onward and larger to deliver higher power output, de the company is monitoring is Totals Ikaka in the
transportation on a new vessel to the Arctic Villepin explained, consequently the founda- Nigerias OML 100 license, likely to feature a
location. Eiffage Mtal subsidiary Smulders, tions and supports must also be stronger. standalone, shallow-water wellhead platform.
Challenging conventional
thinking in todays cost
driven market
www.doris-engineering.com
1705OFF_75 75 4/11/17 3:55 PM

FRANCE
Glycol regeneration technique

limits flaring of gas at Culzean
P
rocess equipment from Prosernat
is assisting recovery of gas from
two new harsh environment proj-
ects and one remote, deepwater
field development.
The companys Drizo process is a
method of glycol regeneration that in-
volves stripping solvent from produced
natural gas, usually obtained from the
BTEX present in the gas. The process
is said to achieve higher glycol purities
than the alternative approach of fuel gas
stripping, resulting in much larger water
dew point depressions at up to 100C Drizo system for Maersks Culzean project. (Images courtesy Prosernat)
(180F) or more.
For Maersk Oils Culzean HP/HT gas- All equipment was transported to the Caspian should by now be installed on the FPU, which
condensate development in the UK central location by road and boat, and the various underwent a naming ceremony in March at
North Sea, Drizo technology has been chosen systems are currently in the start-up phase as the yard in Indonesia.
to address the low flaring capacity on the production builds at the Filanovsky complex. Later this year, Prosernat is due to deliver
central production platform. In this case, the Prosernats third delivery is a monoethyl- two fully modularized SmartSulf sulfur re-
process will make use of hydrocarbons pres- ene glycol (MEG) regeneration and reclama- covery trains, each with a capacity of 100
ent in the inlet gas for glycol regeneration tion module for the Eni-operated Jangkrik gas t/d of sulfur, for an early production facility
instead of stripping gas, with the result that field development, 70 km (43 mi) offshore in Kuwait. SmartSulf is a process developed
overhead gases sent from the glycol regenera- Borneo, Indonesia. The 410-metric ton (452- originally by Linde in the 1980s, later owned
tion column to the flare will be reduced. The ton) module, built in Batam to satisfy local by ITS Reaktortechnik in Germany which
associated water dew point is -31C (-23.8F), content requirements, will purify MEG that Prosernat subsequently acquired in 2014.
which is easily attained with the Drizo, ac- will be injected at the wellhead to inhibit the The process involves treating hydrogen sul-
cording to Prosernat, as the technology is formation of hydrates and associated freezing- fide (H2S) for conversion to sulfur: typically
designed for dewpoints down to -60 to -70C up of the subsea flowlines. It will treat the it achieves a sulfur recovery rate of 99.5%
(-76 to -94F), or 1-2 ppm V water content. mixture of MEG, salts and formation water without the need for a tail gas treatment instal-
In 2014, the company supplied three TEG returning to the Jangkrik FPU, removing the lation. It is suited to reservoirs with high H2S
dehydration systems and a fuel gas module salts and water and recovering over 99.5% of content acid gas streams and those with low
for Lukoils Vladimir Filanovsky field devel- the MEG. This should reduce the risk of cor- H2S content in the latter case, the process
opment in the northern Caspian Sea, where rosion in the subsea pipelines, with smaller operates in direct oxidation mode.
production started last September. All were circulating volumes in the glycol loop due to Although the Kuwait application is onshore,
installed on the central processing platform. the reduced quantities of water, salt and other Prosernat believes the equipment has strong
The dehydration packages, manufactured in injected chemicals. The completed module potential for offshore reservoirs with high
France, comprised three contactors and three
regeneration units, with a total capacity of 49
MMcf/d per package, and two low-pressure
and three high-pressure compression trains
operating at up to 3.5 MMcm/d combined.
The 17 skids for the Balance of Plant (BoP)
all process items to be installed around
the compressors, mainly intercoolers and
scrubbers and the two skids for the fuel
gas module were all assembled at Heurtey
Petrochems manufacturing site in Romania.
Prosernats Drizo process is

a method of glycol regeneration
that involves stripping solvent
from produced natural gas.
1705OFF_76 76 4/11/17 3:55 PM

FRANCE
Despite the fact that handling of H2S offshore has historically

presented major operating difficulties, the SmartSulf
Equipment can be designed for incorporation into the
process facilities of an offshore fixed or floating platform.
Eiffage Mtal
Our name represents
more than a hundred
years of experience
acknowledged
worldwide in the eld
of steel construction
and civil engineering
structures.
The experimental hexapod.
levels of acidic gas. And despite the fact that

handling of H2S offshore has historically Oil & Gas
presented major operating difficulties, the For over fty years, our platforms,
SmartSulf Equipment can be designed for
modules and living quarters enable
incorporation into the process facilities of an
offshore fixed or floating platform.
petroleum companies to explore
As for new developments, Prosernat, in and exploit petroleum elds on the
co-operation with Total, IFPEN, and Heriot- worlds seas and oceans in excellent
Watt University in Edinburgh, Scotland, has technical conditions of safety and
conducted a detailed study of the influence of comfort for their operators.
the motions of the FPSO on the performance
of amine units installed on the topsides. The
program involved deployment of a hexapod,
the item on which the experimental gas/liquid
(G/L) contactor is installed. In contrast to the
single-axis rotating apparatus normally used to
Quality Safety Environment
simulate an FPSOs induced motions on G/L These are the essential priorities of our company, based on the
contactors, the hexapod, with its six feet, is said expertise, competence, adaptability and dedication of our teams.
to reproduce exactly the movements, accel-
erations sustained by the amine units and their
inclination. Results from the study should help
optimize sizing of future amine systems while
also ensuring the strict performance guarantees www.eiffage.com
for these upstream liquefaction units.
1705OFF_77 77 4/11/17 3:55 PM

FRANCE
Deepwater intake risers adapted

for topsides needs on floating systems
F
PSOs and floating liquefied natural gas Pierre Gurin the HDPE mechanical characteristics.
(FLNG) units incorporate various and Bardot Group WIRs are designed to fit requirements of
complex systems for oil and gas process- water depth, temperature, flow rate, and to ac-
ing and liquefaction operations. Water commodate the hydrodynamic stresses of the
intake risers (WIRs) are designed to supply operational environment. The company per-
the necessary volume and flow of cold water forms different analyses during the engineer-
to cool down the topsides process. ing process. The dynamic analysis includes
Traditionally, WIRs have been made from global behavior, structural and hydrodynamic
steel, which introduced numerous constraints assessments and focuses on dynamic per-
such as weight, diameter limitations and stiff- formance under extreme conditions; fatigue
ness of the line. In addition, the technology damage caused by waves and vessel motions;
would limit the pumping depth to 150 m (492 vortex-induced vibrations; interference with
ft), where the water temperature does not go other risers; and installation analysis.
below 15C (59F). An extreme analysis is performed to check
However, there are growing requirements the suitability of the proposed WIR configura-
in the offshore sector to increase the effi- tion, assess the WIRs dynamic response to
ciency of the topside process, the power gen- environmental loadings (wave and currents),
eration, and to reduce the overall footprint of and to determine the WIR interface loads.
the processing facility. To do this, WIRs must Fatigue analysis will assess the in-place fa-
reach colder water at a temperature of 5-7C tigue damage along the WIR sections under
(41-45F), which requires pumping at a depth operational wave loads (for HDPE and steel),
of 600-1,000 m (1,968-3,281 ft). Bardot has as well as the curvature versus occurrence
designed a WIR with a sufficiently low weight spectrum for rubber hose.
to be able to pump water as deep as 1,000 m, The company has access to a worldwide
while withstanding the potential mechanical network of qualified manufacturing sites that
stresses built up over 30 years by a combina- can deliver WIR solutions as close as possible
WIR arrangement from FPSO hull.
tion of vessel motion, currents, vibration, and (Images courtesy Bardot Group) to the final offshore destination, which is im-
the WIR structures own mass. The materials portant to satisfy local content regulation, but
employed (the High Density Polyethylene for material is non-corrosive, inert, sustains high also saves on project logistic costs. In addition,
the pipes has been qualified for use offshore and low temperatures, is resistant to marine its experience working with composite mate-
by most major oil companies) have been se- growth, of low density (around 0.9) and can rials allows it to devise customized solutions
lected for their good behavior over time. In be easily welded. Finally, a strainer, made of where applicable.
addition, the design conservatively considers HDPE or steel, is attached to the end of the The WIRs are modular and lightweight,
end-of-life properties, and guarantees that no line to prevent unwanted particles or other facilitating a quick on-board installation,
maintenance will be necessary, aside from matter from being sucked in the flow. through the vessels hull or aside the hull,
routine inspections. Bardot Group has engineered the WIR to with Bardot Group also designing and sup-
Main features of the deepwater WIR are: fulfil critical design criteria such as a maximum plying the installation aids. Ease of handling
HDPE pipes acceptable top tension, maximum acceptable is another feature. A customized installation
New type of flexible connection compression, maximum bottom excursion, procedure is provided for each WIR project
Riser seats maximum pressure loss, acceptable minimum and adapted to the FPSO/FLNG configuration
Strainer and ballast bending radius, stress use factors, and service to ensure correct assembly of the equipment.
Polymeric tapers. life requirement, with special attention paid to Bardots engineers can in addition provide
The top connector ensures the training and on-site monitoring of
link between the floating unit and the installation.
the riser. Its purpose is to withstand All the companys WIRs are engi-
the static and dynamic loads, limit neered to comply with international
the load transfer between the ves- offshore standards, with a high-level
sel and riser, and to ensure continu- qualification performed on material,
ous inner flow. The HDPE line is technical design, process, and instal-
composed of segments flanged or lation methods. HDPE WIRs are a
welded together to achieve the de- field-proven and cost-effective solu-
sired length. Segment length will tion that reduces opex on process and
depend on the FPSO/FLNGs instal- capex on FPSO/FLNG equipment.
lation constraints, and can vary from Finally, the systems offer significant
a few meters (typically 12 m, or 39.4 improvements in terms of reduced
ft) to more than 100 m (328 ft). HDPE HDPE hoses. carbon-dioxide (CO2) emissions.
1705OFF_78 78 4/11/17 3:55 PM

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BV, Dassault progress digitization

C
ontinuing its journey toward the digitization with a pilot program planned in 4Q. It will be
of the offshore and maritime sectors as it implemented in phases, with the first phase
announced last year, Bureau Veritas has now scheduled for completion next year. The EPCI
realized its ambition to completely overhaul giant claims to be the first such company to
its asset integrity management (AIM) system. implement an advanced data solution to improve
In parallel, the company has developed mo- schedule certainty for its customers.
Screenshot from Dassaults
bile applications for clients and class surveyors, BVs new asset integrity management solu- 3DEXPERIENCE. (Image courtesy BV)
which are now being used worldwide. Further tion and service, launched publicly in April,
development of new mobile applications contin- enables operators to manage risk and maximize type of marine asset from small and specialized
ues; additional applications for survey planning, value and return on their assets through the vessels to large bulk carriers, tankers, contain-
as well as, services for digital certification will digital transformation of inspection, mainte- erships and offshore industry assets, such as
also be available shortly. This work is the digi- nance, and repair processes, connected as- FPSOs, floating liquefied natural gas vessels,
tization of existing processes and provides the sets, and connected surveyors. From a class floating storage regasification units, and rigs.
benefits of efficiency and accuracy. perspective this opens the door to risk-based BVs solution-based service is designed to
In early 2016, Bureau Veritas formed a partner- inspection and condition-based maintenance bridge the gap between available technology and
ship with Frances Dassault Systmes to integrate regimes to be integrated with: classification industry needs, providing the environment for
Dassaults 3DEXPERIENCE platform with BVs and certification requirements; procurement; safety, risk and operational management to move
existing VeriSTAR suite of tools to become the ship management software and ERPs. beyond traditional reporting structures. The
heart of its new AIM system. Initially based on the The service looks to provide offshore clients service addresses the challenge of fragmented
concept of digital twinning, the partnership with with total solutions connecting assets, from IT environments to provide an overall picture, or
Dassault has now developed further and matured the design process, through construction, with dashboard, of the data related to assets and fleet
into a platform for an AIM service designed to non-stop asset analysis. This enables predic- of assets. Asset adaptable, offshore operators
leapfrog current fragmented IT solutions. tive maintenance and reduced costs related to were identified as the first users but interest is
In March, McDermott signed a multi-year periodic surveys and inspections. The service now being seen from traditional ship owners,
agreement with Dassault to integrate this plat- will also be available to ships as well as offshore especially if classification and statutory require-
form into the companys existing processes, sector assets, allowing operators to manage any ments, as well as shipmanagement systems.
Weve grown a little

taller lately
Air Liquide is transforming and has grown
in size following the acquisition of Airgas.
Air Liquide now serves over 3 million
customers and patients globally. The Group
has strengthened its presence in the United
States, the worlds largest market for industrial
gases. By combining Airgas strong customer
mindset and advanced digital capabilities
with Air Liquides operational excellence and
innovation, the Group delivers greater value
to all its stakeholders. Air Liquide, the world
leader in gases, technologies and services for
Industry and Health. airliquide.com
#AirLiquideistransforming
1705OFF_79 79 4/11/17 3:55 PM

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Bourbon adapts platform supply vessels

for pipelay campaign offshore Gabon
B
ourbon is adapting one of its multipur-
pose platform supply vessels (MPSVs)
for a pipelay program due to start in May
offshore Gabon. This is a first for the
companys subsea division which has previ-
ously laid subsea cables, but more typically
undertakes tasks such as subsea tree and
jumper installation and retrieval, intervention
and stimulation.
Under the EPCI program awarded by Total,
the company will mobilize one of its Bour-
bon Evolution 800 MPSVs to install a 25-km
(15.5-mi), 6-in. rigid water injection pipeline
between two platforms at the shallow-water
Hylia field offshore Gabon. Bourbon in turn
has subcontracted Cortez Subsea to provide
the pipelay equipment, which involves use of
NOVs patented weld-free Zap-Lok technology,
and Wood Group for the pipeline design and
pipelay engineering.
Offshore pipeline sections are normally
welded together onboard large specialist pipe-
lay vessels. With Zap-Lok, a process commonly
applied to onshore pipelines in the US, the pipes
are connected via a hydraulically-operated pro- View from the deck of the Bourbon BE802.
cedure that is said to be faster and less costly
to implement as it dispenses with the need water injection pipeline, he added. Installation the vessels are not designed to accommodate
for specialist welders. The system relies on a will be performed via the S-lay method, with a a 350-metric ton [86-ton] J-lay tower.
mechanical interference connection between 20-m (65.6-ft) stinger fitted to the 100-m (328-ft) The Bourbon Evolution 800 series feature
a cold-expanded bell-end and an opposing, long vessels stern which was reinforced when it 1,200 sq m (12,916 sq ft) of deck space and
larger pin-end. The strength of the process was originally constructed in anticipation of such two active heave compensation cranes with
is said to derive from the metal-to-metal fric- tasks. The vessel, equipped with the purpose- respective lifting capacities of 150 and 40 met-
tion generated as the two ends are hydrauli- built spread, including pipe racks, ramps and ric tons (165 and 44 tons) the former suited
cally pressed together and highly compressive tensioners, should take five to seven days to to subsea deployments in water depths down
forces are transferred from the bell-end to the mobilize to the offshore location and will transit to 3,000 m (9,842 ft) and one or two ROVs.
pin-end, holding it permanently in place with the stinger up. Earlier this year the Bourbon Evolution 802
According to NOV, by eliminating the weld- Another Bourbon PSV, the Bourbon Jade, undertook installation of four wellheads for
ing requirements of exposed bare steel and will install the crossings and the associated Totals deepwater Egina project offshore Nige-
high heat, the resultant connections also allow 20-25 m (65.6-82-ft) pipeline spool and the ria. Last summer, the same vessel performed
for a continuous external coating layer free 2.7-m (8.9-ft) vertical riser Bourbon/Cortez an acid treatment operation on another Total
from a heat-affected weld zone. And without the have subcontracted the welding qualification well for stimulation purposes, with a pump,
heat of welding, internal coatings can be applied for this task and the pipeline flanges. The tanks and chemicals supplied by Schlumberger
with no risk of damage to the connection area. same vessel will support ROV survey and air and an injection pipe provided by Bourbon
Each length of pipe is constructed to deliver diving operations. Following completion of OneSubsea was responsible for the wellhead
a fully continuous coating layer by creating the installations, Bourbon will also undertake interface. Using the vessels crane, the running
an overlapping, dual-layered coating section. pre-commissioning of the pipeline, including tool was lowered onto the wellhead and the
Cortez teamed up with NOV to propose pigging and pressure tests, by mid-June. pipe subsequently attached to the running tool
Zap-Lok and the pipelay spread, said Patrick We are interested in replicating this arrange- via the Bourbon-supplied connection system.
Belenfant, Bourbons Senior VP, Subsea Ser- ment for other pipelay jobs, Belenfant said. One Following testing of the valves and wellheads
vices, and they devised the resultant set-up. advantage of the 800 series is the deck space, to check for leaks, the chemicals which had
Bourbon convinced Total that the process could which allows the vessels to accommodate a full been prepared onboard the vessel were
be adapted to work on one of its vessels with only pipeline length of up to 27 km [16.8 mi], rather injected. The pumping operation took eight
three connecting stations onboard as opposed than having to return to shore for re-loading. We hours to complete: the chemicals were then
to the much larger, conventional welded and could also lay flexible pipes as the vessels can retrieved and the equipment brought back to
field jointing spread. Total was looking to test support 2,000-metric ton [2,204-ton] reels, but this surface piece by piece, after which production
its first offshore application on a small-diameter would have to be for shallow, not deepwater jobs was able to resume.
1705OFF_80 80 4/11/17 4:39 PM

Owned & Produced by:
SAVE THE DATE
Subsea Tieback Forum & Exhibition is scheduled for March 13-15, 2018 in Galveston, Texas
at the Moody Gardens Hotel & Convention Center. As our industry changes, the sharing
of knowledge and collective experiences becomes more and more crucial to improving the
quality, safety, and economics of the subsea tieback industry. The conference content addresses
new operational issues, challenges, and solutions associated with global deepwater subsea
operations. Dialog among strategic decision makers is facilitated through focused presentations,
extended question and answer sessions, and networking. This exchange of knowledge represents
experiences, applications, and current, real-world project examples. The Subsea Tieback exhibit
hall floor is the largest display of subsea equipment in the world.
MARCH 13-15, 2018

MOODY GARDENS HOTEL & CONVENTION CENTER
GALVESTON, TX USA
WWW.SUBSEATIEBACKFORUM.COM
1705OFF_81 81 4/11/17 4:39 PM

FRANCE
New acquisition boosts

Air Liquides offshore offerings
I
n May 2016, Air Liquide completed its Sarah Parker Musarra integrated upstream-downstream model, Air
acquisition of the US-based industrial gas Editor Liquide has said.
company Airgas. The companies comple- It is through these new synergies that the
mentary businesses prior to the merger company believes it will be able to improve
resulted in full supply chain integration follow- its existing offerings and enter new markets,
ing the combination, expanding Air Liq- particularly by leveraging digital tech-
uides service offerings and allowing it to nologies. Air Liquide maintains that
develop new markets, such as maritime. its new products and technologies will
Headquartered in Aberdeen, Air Liq- continue to be guided by its customer
uide Maritime develops gas to be used needs, as was the case when Air Liquide
by oil and gas platforms, offshore wind Maritime developed QUAD+, a piece of
turbines, and cryogenic transportation. equipment used to store a set of intercon-
The company says it provides a range of nected cylinders and distribute the gases
gases and supply equipment, from cylin- they contain.
ders and containers to nitrogen genera- For our clients, space management on
tion systems. platforms and price pressure are crucial
Air Liquide Maritime, part of its Global factors, explained Maria Bonikowska,
Markets & Technologies unit, aims to Air Liquide Maritime North Sea & United
develop the use of gases by customers Kingdom.
in the maritime sector throughout the With 450 bar (6,527 psi) of pressure,
world. It credits the Airgas acquisition which Air Liquide says is a world first
with enabling it to expand its range of over the standard 300 bars (4,351 psi),
products for offshore operations by pro- QUAD+ claims over 40% more storage
viding welding consumables, such as capacity than regular bundles, achieving
electrodes, cables, and others, as well a 22% reduction in the space the equip-
as safety equipment, to its customers. Through its recent acquisition of Airgas, Air ment occupies. By taking up less room on
To address this market segment, one that Liquide has expanded its services and of- platforms, the company explains, it delivers
ferings, including in the maritime sector. Air
calls for cutting-edge expertise, Air Liquide savings on transport costs.
Liquide Maritime has developed the QUAD+,
has developed an all-in-one offer with high QUAD+ can be used during construction
which stores interconnected gas cylinders. The
added value: welding gas, assistance with product is said to offer a reduced footprint and and maintenance; subsea works; and well
defining the gas mix and welding processes, 40% more storage than other offerings. (Images services.
as well as training and deployment of best courtesy Air Liquide) The company has also developed a new
practices relating to safety, said Nathalie range of gaseous stable isotope pure gases
Mangeot-Gehin, Americas Vice President of and mixtures to enhance the reliability of
Air Liquide Maritime. petroleum analysis when it is critical to mea-
Our strength in the market lies in our abil- suring delta values accurately.
ity to meet client needs throughout the entire Air Liquide looks to benefit from Airgas
value chain, from products to engineering national presence and its existing customer
and services. base of more than 1 million customers in
Prior to the merger, Air Liquide was present the US, as well as from its customer-facing
in the US upstream sector primarily through platform, including e-commerce and telesales
its Large Industries segment, with more than capabilities.
2,200 mi (3,540 km) of pipelines located mostly Airgas will still serve its clients under its
along the Gulf Coast. On the other hand, Air- name, but as an Air Liquide company.
gas was primarily focused on downstream The company placed its combined annual
distribution with 300 fill plants and direct company sales at around $20 billion, with
delivery of packaged gas and hardgoods around $6.8 billion in the Americas. Following
through 900 branches / retail stores, telesales, the merger, Air Liquide employs more than
e-commerce, or next-day direct deliveries 67,000 people globally and serves more than
from national warehouses. By combining this three million customers and patients.
coverage, Air Liquide says that it will have Prompted by the merger, Air Liquide began
a more robust market offering through the The combined entity is able to better serve the year with a January announcement that
integration of the full supply chain, allowing customers with the most advanced multi- it was changing its visual identity with a new
the generation of synergies and improved channel distribution networks in the US and logo, the fifth since the company was founded
overall customer service. more competitive product offerings with an 115 years ago.
1705OFF_82 82 4/11/17 3:57 PM

EQUIPMENT & ENGINEERING
New tools and technology for the offshore industry

Dril-Quip selected
for two OTC Spotlight awards
Dril-Quips DXe wellhead connector and
BigBore IIe wellhead system have been selected
by the Offshore Technology Conference (OTC)
as winners of the Spotlight on New Technology
awards for 2017. This award recognizes new
technologies that are on the forefront of innovation
in offshore exploration and production.
The DXe wellhead connector is a blowout
preventer (BOP)/tree/tieback connector that is
suitable for high-pressure/high-temperature (HP/
HT) service in severe bending and high fatigue en-
vironments. A highly engineered locking wellhead
profile and self-aligning gasket design allows for
increased structural bending capacity. The con-
nectors high fatigue-resistance provides extended
The GFI model 740 CFH 300 S4 cartridge filter
housing. (Courtesy Greig Filters)
service life. The technology of this critical connec-
tion is validated to the latest editions of API 16A
Low flow filter (4th Edition) PR2 classification, and the recently is-
sued API 17TR7 requirements. Based on full-scale
developed physical testing, Dril-Quip says the connector has
for deepwater demonstrated that it delivers reliable performance Dril-Quips DXe wellhead connector is a
BOP/tree/tieback connector suitable for
and longer service life. Deployed at the base of
well abandonment a subsea BOP, the wellhead connector provides
high-pressure/high-temperature (HP/HT)
service. (All images courtesy Dril-Quip)
Greig Filters, Inc., has recently completed a the only barrier between the well bore and the
Low Flow Filter 740 Cartridge Housing Filter environment.
Skid for subsea umbilical flushing during deep- The BigBore IIe is a fully qualified wellhead system consisting of a DXe connection top
water well abandonment. The filter will use locking profile, an integral 2 million-lb high-capacity hanger lockdown annular seal assem-
a single pleated absolute or a nominal string bly, extended fatigue life, and what Dril-Quip says is the industrys highest capacity running
wound cartridge size 6-in. OD x 38-in. L. tools. The systems hanger and seal assembly
The Pleated Absolute 740 cartridge has 110 eliminates the need for secondary lockdown
sq ft of filter service area and exhibits high sol- devices during drilling and production phases
id holding capacity. The nominal string-wound and reduces rig time by eliminating trips into the
cartridge has large dirt holding capacity and well for installation and retrieval of such devices.
available in 2 to 75 micron, with an efficiency of This reduces associated installation risks and
80%. The Low Flow Filter is rated at 10 gpm to HSE exposure. The BigBore IIe provides the
60 gpm, with a working pressure of 300 psi. ability to reduce the number of casing strings by
Required flushing of the umbilical tube dur- increasing loads and pressure capacities of the
ing deepwater production well abandonment casing hangers and associated installation tools.
is performed with seawater that is normally Wellhead component designs have been verified
filtered to 30 micron or larger to remove parti- and validated to AsPI 17D and API 6A PR2 Group
cles that would contribute to plugging or pump 4 industry standards. Additional dynamic seal
damage. Nominal cartridge filter with large endurance testing has also been performed,
dirt capacity is best for this work, and does not exceeding industry specs, the company said.
require change out with normal flushing. Technologies awarded must be original and
Presently, the string-wound 6-in. OD x groundbreaking technology that is less than
38-in. L cartridge filter is available in various two years old, be proven through full scale
micron sizes and media material. application or prototype testing, demonstrate
The work is often performed on remote broad interest across the industry, and provide
platforms with little floor space. Flowrate significant benefit over existing technologies.
through the umbilical tube is gallons per The BigBore IIe provides the ability to reduce Representatives from the OTC board and pro-
minute, and thereby performed with low rate the number of casing strings by increasing gram committee evaluate papers to determine
pumps and filters. loads and pressure capacities of the casing which technologies will receive the award.
The company says that equipment with hangers and associated installation tools. Dril-Quip will display a full scale model of the
smaller footprints is more suited for remote Both technologies were awarded OTC Spot- BigBore IIe high pressure wellhead at its 2017
platforms and supply boats. light awards. OTC booth #3775.
1705OFF_83 83 4/11/17 4:09 PM

BUSINESS BRIEFS
People ing from March 16, 2017. and natural gas in 2001. Thereafter, crude oil,
Chow Yew Yuen has retired from Keppel Pura Vida Energy NL has reported that natural gas and liquid petroleum gas develop-
Offshore & Marine Ltd. after more than 36 Damon Neaves is no longer CEO. Simon ment and production activities were extended
years of service. The company has appointed Eley, non-executive chairman, will assume to multiple oil and gas fields in the block. How-
Chris Ong as CEO. an interim role in the day-to-day management ever, the resultant income and cash flow are
Mubadala Petro- of the company with the assistance of the declining, hence the sale, which is designed to
leum has appointed remaining directors and management team. optimize the companys global asset portfolio.
Dr. Bakheet Al Stuart Ferguson has resigned from the GE Oil & Gas has opened a new branch in
Katheeri as CEO. He Aker Solutions board of directors. Takoradi Port, Ghana. The facility, which the
succeeds Musabbeh SH Group has employed Bjoern Joensen company claims, will be the primary service
Al Kaabi, who was as business development coordinator and center for deepwater projects offshore Ghana,
recently appointed Hardy Jeremiassen as head of business has a 1,600-sq m (17,222-sq ft) indoor test area
to lead the new development for offshore, wind and marine with the capability to test three subsea trees
Petroleum and Petro- service in a new department in Esbjerg, simultaneously, and 4,000 sq m (43,055 sq ft)
chemicals portfolio of Denmark. of indoor and outdoor storage.
Mubadala Investment Al Katheeri
Global Maritime has appointed Egil Shell Offshore Inc., a subsidiary of Royal
Co. Kvannli as CFO and Hannah Crutchley as Dutch Shell, has contracted Bristow U.S.
Polarcus Ltd. has group health, safety, environment and quality LLC for medevac and search and rescue
appointed Duncan manager. (SAR) services in the Gulf of Mexico. As part
Eley as CEO. He suc- Orwell Offshore of the contract, Shell will also join the new
ceeds Rod Starr. Ltd. has appointed SAR consortium formed by Bristow, which
Shearwater Nigel Clark as a aims to provide unrivaled service and lifesav-
GeoServices has ap- director. ing capability to members while simultane-
pointed Irene Waage Restrata has hired ously reducing overall costs associated with
Basili as CEO. Botan Osman as SAR. Bristow will deploy a Sikorsky S-92 and
Bowleven plc has managing director. a Leonardo AW139 to provide SAR response
named Joseph Darby Aderco Pte. Ltd. services. An advanced dispatch system staffed
as a non-executive di- has named Philippe by registered EMTs will provide pre-arrival
rector and Eli Chahin Eley Lecloux as managing medical instructions over the phone and
as acting CEO. director. Osman
efficiently prioritize and manage response
MODEC Inc. has appointed Yuji Muraka- Greensea has hired efforts in the event that multiple, simultane-
mi as executive managing officer; Teruhisa Kevin Wingart as ous call-outs are received. The company will
Konishi, director, executive managing officer; quality control engineer and Morgan Gomez operate the new service from its standalone
and Masaki Habu as executive managing as engineering technician. SAR facility at the South Lafourche Airport in
officer. Gerard Cooke has joined Salunda Ltd. as Galliano, Louisiana.
Nicholas Garrett has joined the Lamprell sales director. Subsea cables and umbilicals supplier
board of directors as a non-executive director. Novara GeoSolutions has hired Jake Op- JDR is expanding its presence in West Africa
UTEC has appointed Stuart Cameron dahl as director of sales. through a strategic alliance with Proser v
as CEO. He succeeds its founder Martin Instrumentation. JDR will establish a service
OCarroll, who has and maintenance base at Proservs opera-
retired. Company News tions center in Port Harcourt, and the two
Philippe Donche- Shell has opened a new major technology companies plan to offer combined subsea solu-
Gay has been hub in Bangalore, India, expanding its R&D tions and local content support to the West
promoted to senior ex- activities in Asia. The 52-acre Shell Technol- African market. In JDRs case, the offering will
ecutive vice president ogy Centre Bangalore brings together R&D include maintenance and offshore installation
of Bureau Veritas. He staff who previously worked at separate loca- services, product termination and testing, and
also retains his role tions in Bangalore. It can house up to 1,500 technical training.
as president of the people. Global Maritime is celebrating 10 years
Marine & Offshore Aker Solutions is set to acquire Rein- of providing marine warranty survey services
Division. Matthieu de ertsens Norwegian oil and gas maintenance/ to the West Delta Deep Marine concession
Tugny has been ap- de Tugny modifications business for NOK212.5 million offshore Egypt. Burullus Gas Co., a joint
pointed as COO of the ($25 million), subject to approval from operating company of Egyptian General
Marine & Offshore Norways competition authorities. Reinertsen Petroleum Corp., Shell, and PICL (Egypt),
Division. is the third largest maintenance and modifica- operates the concession.
The Gazprom tions supplier offshore Norway with around MacGregor, part of Cargotec, has opened
board of directors 700 employees, and main offices in Trond- a new facility in Arendal, Norway, which
has reelected Sergey heim and Bergen, where Aker Solutions also houses a training academy for customers. It
Khomyakov, deputy has a solid presence. specializes in advanced simulation training
chairman of the Man- INPEX has decided to sell its shares and has a purpose-built virtual reality show-
agement Committee, in INPEX Natuna to PT Medco Daya room.
as a member of the Sentosa (Medco). The transaction involves Fugro has entered into a strategic alliance
Gazprom Manage- a 35% interest in South Natuna Sea block B with Ground Structures Engineering Con-
ment Committee for a offshore Indonesia. INPEX entered into the sultants Ltd. in the Republic of Guyana. As
five-year period start- Donche-Gay block in 1977, producing first crude oil in 1979 part of this new working relationship, Fugro
1705OFF_84 84 4/11/17 4:09 PM

BUSINESS BRIEFS
will provide onsite training at its accredited water contact without the need to drill through Rosneft shipbuilding facility. In addition, the
laboratory in Houston to cross-train soil tech- it. CSS and the University of Strathclyde are companies plan joint production of specialist
nicians to meet industry standards. currently working on proof of concept, leading floating craft, equipment for oil spill recovery
Vr yhof and its business unit Deep Sea ultimately to development of a functioning at sea and on land, oil containment booms, and
Mooring (DSM) have launched a new tool. other items.
engineering unit to support the companys Finally, Subsea Deployment Systems will Total E&P UK has renewed and revised
offshore oil and gas, renewables and aqua- work with the University of Strathclyde on its crane operation and maintenance arrange-
culture operations across the globe. The unit a system for installing large subsea structures ment with EnerMech in the North Sea. The
will provide hydrodynamic and vessel motion in hostile environments using small crane new three-year contract, with two one-year
analysis; advanced mooring analysis (includ- vessels. The aim is to cut the cost, extend the options, includes services for up to 19 gantry
ing for offshore wind turbines and offshore operating window, improve safety, and reduce cranes.
fish farms); dynamic positioning analysis; the environmental impact of subsea instal- Schlumberger has opened a new purpose-
flexible and rigid riser analysis; complex lation operations. The subsea deployment built Production Technologies Center of
marine operations (including offshore crane system will involve use of a fully submersible Excellence in Houston aimed at solving
operations and subsea operations); and proba- deployment vessel comprising buoyancy customers global challenges related to oil and
bilistic and deterministic stability analysis for modules mounted on structural steel frames, gas production chemistry, particularly those
all ship types and floating structures. in order to provide sufficient buoyancy to ren- encountered in deepwater, heavy oil and other
Danos completed 2016 with a total record- der the vessel and payload neutrally buoyant. extreme environments. Supporting worldwide
able incident rate of 0.11, the lowest since the Tank tests are under way with the University operations, the center features nine laborato-
company began tracking the data in 1979. The of Strathclyde to validate the basic concept. ries that combine the best of the companys
company credits this record to its compre- Nippon Kaiji Kyokai (UK) Ltd., a subsid- process systems, production software, and
hensive safety management system and the iary of ClassNK, has become an accredited advanced chemistry. Forty research scientists
dedication of employees at every level. certification body. The accreditation was are dedicated exclusively to product develop-
Fuel treatment manufacturer Aderco has granted by the UK national accreditation body ment and formulation activities that maintain
opened an operational base in Singapore. United Kingdom Accreditation Ser vice asset integrity, address flow assurance chal-
Shell Marine has become the first com- and covers the certification of companies ap- lenges, and remedy production issues such
pany involved in the development, supply, plying the ISO9001 Management Standard. as deposit formation and naturally occurring
and support of marine lubricants to receive SH Group has opened an office in Esbjerg, gases.
accreditation under the International Ma- Denmark. Saudi Aramco has signed a memorandum
rine Purchasing Associations IMPA ACT SpeedCast International Ltd. has opened of understanding with ADNOC. The two
Sustainable Maritime Suppliers scheme. an office in Port Moresby, Papua New Guinea. companies plan to collaborate on identifying
The Oil & Gas Innovation Centre Baku Shipyard LLC has contracted Sub- technologies that could deliver improved
(OGIC) has signed four new offshore project marine Manufacturing and Products Ltd. operational performance and efficiency across
agreements involving grants totalling 230,000 to supply a hyperbaric life support package. the oil and gas value chain.
($285,000). Develop Training Ltd. has opened a train- Eni has started up a new HPC3 (high
Under the latest project, Exnics will work ing center in Lisburn, Northern Ireland. performance computing) service at its Green
with Heriot-Watt University in Edinburgh to Phoenix International Holdings, Inc. Data Center in Ferrera Erbognone, support-
develop a Thermoelectric Generator (TEG) and Infinity Offshore Pty Ltd have formed ing all the companys E&P activities. The
to support its Hot Rings system, which har- a joint venture, Infinity Phoenix Subsea, to HPC3 and existing HPC2 system will provide
nesses the heat from subsea pipelines and provide inspection, maintenance, repair and Eni with a sustained 5.8 PetaFLOPS, and 8.4
converts it to DC electrical power. The plan decommissioning works in the Australasia PetaFLOPS of peak computing capacity. Enis
is to improve performance of the product for region with the atmospheric diving system HPC philosophy is based on hybrid architec-
future deployment and to increase the range Hardsuit. The joint venture will be based in tures, using top-end GP-GPUs as computa-
of applications where power from waste heat Perth, Australia. tional accelerators. The cluster design is said
can be used. Bureau Veritas (BV) has acquired Marine to target the most efficient energy solution
In the second project, Iron Ocean is Assurance & Consulting (MAC). The trans- and delivery of the maximum computa-
developing a compression fit garment to boost action is said to be in line with BVs recent tional power required by the most advanced
the chances of survival of offshore personnel developments in the North Sea offshore mar- proprietary algorithms. HPC3 has an energy
submerged in the sea. This would be worn un- ket, where it is looking to strengthen its local efficiency consumption of 3.66 gigaFLOPS/
der current offshore survival suits and would presence and service capabilities for clients. Watt: this is said to be maximized by the direct
improve heat retention, be slash-resistant, MAC was established in Aberdeen in 2010 free-cooling solution provided by the hosting
generate heat, and resist fire. A coating will and currently has 30 employees and more Green Data Center. Next step in the process,
be designed to deliver a thermal reaction that than 40 associates. The company provides the HPC4, should be ready at the start of next
will provide warmth to the wearer with the dynamic positioning assurance and consulting, year, designed to exceed the current limit of
reaction lasting at least one hour. Iron Ocean engineering assurance and consulting, marine 10 PetaFLOPS of computing power.
will work with Heriot-Watt Universitys warranty, marine assurance and consulting, OEG Offshore has won a five-year rental
School of Textiles and Design to construct and project assurance and consulting. contract to supply DNV 2.7-1 cargo units and
a prototype which should be tested, certified, Rosneft has signed a cooperation agree- helifuel tanks in support of hookup, commis-
and ready for use within a year. ment with Lamor Corp. They will assess sioning, and production from the Ichthys LNG
Core Specialist Ser vices (CSS) and prospects of localized production of oil spill project offshore northwest Australia.
partner Hydrophilic AS are working with response equipment and machinery for Rus- Craig International has signed a five-year
the University of Strathclyde in the third sias Arctic region. The plan is to have at least procurement contract with Premier Oil for
project to develop a pressure probe. This 70% of production performed locally by 2025, all of its maintenance and repair operations in
will enable estimation of the depth to the oil/ with the equipment to be manufactured at a the UK North Sea.
1705OFF_85 85 4/11/17 4:09 PM

Offshore SEE RESULTSAsk me how!
GRACE JORDAN
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1705OFF_86 86 4/11/17 4:09 PM

ADVERTISERS INDEX
A K
SALES OFFICES AFGlobal Corporation .......................... 11 Karmsund Maritime Offshore

afglobalcorp.com/drilling Supply.................................................... 13
PENNWELL PETROLEUM GROUP Air Liquide .............................................79 www.kamos.no
1455 West Loop South, Suite 400, Houston, TX 77027 airliquide.com
PHONE +1 713 621 9720 FAX +1 713 963 6228 Aker Solutions ......................................21
David Davis (Worldwide Sales Manager) www.akersolutions.com L
davidd@pennwell.com Allseas Group ...................................C2-1
allseas.com LAGCOE 2017 ........................................58
Grace Jordan (Classified Sales) www.lagcoe.com
gracej@pennwell.com APS Anti-Corrosion Protective
Systems LLC .........................................41 Louisiana CAT ...................................... C3
www.infieldliner.com www.louisianacat.com
GREATER HOUSTON AREA, TX
Aramco Services Company .................29
David Davis davidd@pennwell.com
www.aramco.jobs/om N
Atlas Professionals ..............................51
USA atlasprofessionals.com National Oilwell Varco ..........................23
David Davis davidd@pennwell.com www.nov.com
NOIA.......................................................69
UNITED KINGDOM SCANDINAVIA B www.noia.org
THE NETHERLANDS MIDDLE EAST
10 Springfield Close, Cross, Bastion Technologies ...........................37
Axbridge, Somerset, United Kingdom BS26 2FE www.HiConTraining.com O
PHONE +44 1934 733871 www.BastionTechnologies.com
Graham Hoyle grahamh@pennwell.com Oceaneering ..........................................31
Oceaneering.com/WhatsNext
C Oil States Industries, Inc. .....................27
FRANCE BELGIUM PORTUGAL
www.oilstates.com
SPAIN SOUTH SWITZERLAND CORTEC Fluid Control .........................56 OneSubsea, A Schlumberger
MONACO NORTH AFRICA www.uscortec.com Company .................................................3
961 Camp Redon, 83830 Callas, France onesubsea.slb.com
PHONE +33 (0) 4 9470 8263
FAX +33 (0) 4 8981 9982 D
Stefania Piciotti Thompson stefaniat@pennwell.com P
DORIS Engineering ..............................75
www.doris-engineering.com PennWell
GERMANY NORTH SWITZERLAND
Draeger ..................................................25 Subsea Tieback Forum &
AUSTRIA EASTERN EUROPE www.draeger.com Exhibition .........................................81
RUSSIA FORMER SOVIET UNION www.subseatiebackforum.com
BALTIC
Sicking Industrial Marketing E
Kurt-Schumacher-Str. 16, 59872 Freienohl, Germany R
PHONE +49 (0) 2903 3385 70 Eiffage Metal..........................................77
FAX +49 (0) 2903 3385 82 www.eiffage.com REPSOL .................................................35
Andreas Sicking wilhelms@pennwell.com Enventure Global Technology..............49 www.repsol.com
www.EnventureGT.com/SameDrift Rolls-Royce ...........................................33
Era Helicopters .....................................65 rolls-royce.com
ITALY TURKEY GREECE
erahelicopters.com
CYPRUS MALTA
Evolen ....................................................73
SILVERA MEDIAREP www.evolen.org S
Viale Monza, 24 - 20127 Milano, Italy
PHONE +39 (02) 28 46716 FAX +39 (02) 28 93849 S. Himmelstein and Company .............86
Ferruccio Silvera info@silvera.it F www.himmelstein.com
Saipem ................................................... 15
JAPAN Fincantieri S.p.A. ....................................7 www.saipem.com
e.x.press Co., Ltd. fincantieri.com Siemens PLM Software ........................59
AIOS Gotanda 606, 1-10-7 Higashi-gotanda Fugro........................................................9 siemens.com/mdx
AskFugro.com
Shinagawa-Ku, Tokyo 141-0022, Japan
T
PHONE +81 3 6721 9890 FAX +81 3 6721 9891
Masaki Mori masaki.mori2@ex-press.jp H
TechnipFMC ......................................... C4
CHINA SOUTHEAST ASIA Heerema Marine Contractors ............... 17 TechnipFMC.com
AUSTRALASIA hmc.heerema.com
19 Tanglin Road #05-20
Tanglin Shopping Center W
Republic of Singapore 247909 I
Weatherford....................................... 5, 19
PHONE +65 9616 8080 igus GmbH ............................................53 weatherford.com
FAX +65 6734 0655 igus.eu Well Control School................................4
Michael Yee yfyee@singnet.com.sg InterOcean Systems LLC .....................32 www.wellcontrol.com
www.interoceansystems.com Wood Group ..........................................71
FOR ASSISTANCE WITH MARKETING www.slicksleuth.com www.woodgroup.com
STRATEGY OR AD CREATION, PLEASE IPLOCA ..................................................54
CONTACT: www.iploca.com
PennWell Marketing Solutions The index of page numbers is provided as
a service. The publisher does not assume
David Davis
any liability for error or omission.
PHONE +1 713 963 6206
EMAIL davidd@pennwell.com
1705OFF_87 87 4/11/17 4:09 PM

BEYOND THE HORIZON
How autonomous technologies

can transform the offshore industry
The oil and gas industry has learned yet again some painful les- People
sons. Among the most important is that it must transform the way it Autonomation allows the industry to leverage expertise and let peo-
operates if it is to remain sustainably profitable during growth cycles ple focus where they add the most value. Engineers on location can
and resilient during downturns. The industry must become radi- provide insight and answers versus performing rote tasks. This is par-
cally more efficient, productive, reliable, and safe. Nowhere is this ticularly important in our cyclical industry. We cannot hire and train
more important than in the offshore market, where risks and costs people fast enough in growth markets, and by the time we return to
are exponentially higher than in other operating environments. previous efficiency levels, activity decreases and we are forced to down-
Positive transformation requires breakthroughs in technologies size. Autonomation enables us to operate with fewer experts on loca-
that can think, act, and heal without added human intervention. In tion, which will become increasingly important as many of our current
the mining industry, autonomous systems and processes enable sig- experts retire in the next 10 to 15 years. Workforces of the future will
nificant efficiency improvements while protecting workers in opera- have skills that accustom them to using automation in various aspects
tions where their lives might be put in danger. These systems can of their lives. To attract choice talent, the industry needs to adopt auto-
be managed in real time from data centers 1,000 mi (1,609 km) from mation in workflows and practices. Finally, reducing the number of peo-
the mining site. ple needed to perform high-risk jobs reduces HSE exposure and cost.
In our industry, autonomy is gaining momentum to add signifi-
cant value to processes, people, and production. A few of the key Production
enablers and drivers for the transformation include the following. The ability of autonomous technologies to enable products and
systems to think, act, and heal themselves has started to demon-
Process strate significant improvements in production. Intelligent produc-
Automated processes that use defined workflows instead of in- tion systems already use data from smart monitoring systems to
dividual experience deliver more reliable, repeatable performance, make adjustments. This same methodology can be used to identify
while saving time and offering more consistent results. and shut off nonproductive zones, boost and adjust pump rates, and
Closed-loop drilling systems are currently capable of gathering identify, adjust, and deploy chemical treatments when neededall
incredible amounts of data during the well construction process without direct human interaction.
that is used to automate steering. While these systems significantly Today, downhole sensors are used to remotely monitor pressure
reduce NPT and place wells more precisely than before, more can and temperature for various purposes, including extending life in
be done. Future automated drilling systems will use digitization, ad- electrical submersible pumping (ESP) systems. The industry is al-
vanced data compression, decoding, and even wired-pipe telemetry ready making huge gains in efficiency by monitoring data and us-
to communicate more data in real time. Expanding tie-in to surface ing it to identify, predict, and correct potential problems before they
networks will allow us to build better wells and place them more ef- become failures. In the future, autonomous systems will enable ESP
ficiently. The result will be faster, more reliable drilling operations operations to deliver radically improved production results without
requiring fewer human interventions. Human input and interaction the need for monitoring personnel.
will move further upstream and to safer points to plan and execute To be more profitable and resilient going forward, the industry
the workflow. must scale up efficiency, productivity, and defenses without scaling
Plug and abandonment (P&A) currently costs offshore operators up the need for human capital on site. It will do this through a clear
billions of dollars. Uncertainties around the location of cement bar- focus on autonomous technologies that enable tools and systems to
riers and the integrity of wellbores constructed decades ago adds to think, act, and heal themselves. The more we can automate, predict,
cost and risk. But, we will soon have the capability to design P&A- and prevent, the more successful we will become at reducing shut-
ready wells with instrumentation that provides accurate information downs, costly intervention operations, and potential harm to people,
about the downhole environment. This added understanding will equipment, and the environment.
help operators control costs and risks more effectively. Tauseef Salma
Not every autonomous tool uses digital technology. Smart de- Vice President, Enterprise Technology
signs and materials enable adaptive drill bits to automatically adjust Baker Hughes
to the earth to mitigate vibrations, stick-slip, and impact loading.
This means faster, more consistent rates of penetration, longer bit/ Mathias Schlecht
tool life, significantly reduced NPT, and the ability to drill a section Chief Engineer
in one run. Baker Hughes
This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore
Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@pennwell.com.
1705OFF_88 88 4/11/17 4:09 PM

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Redefine economic viability with a new

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COVER: Several offshore projects that

EQUIPMENT & ENGINEERING

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DRILLING & FORMATION EVALUATION

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EDITOR-EUROPE POSTER EDITOR

New tools and resources

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Annual global review finds encouraging trends

8 Offshore May 2017 www.offshore-mag.com

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If you want to know how

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GoM recovery US and Mexico offshore investments by oil price sensitivity

USD billion nominal

Fleet utilization rate %

doah and Phobos fields. 700 70

year should see a noticeable pick-up in 100

10 Offshore May 2017 www.offshore-mag.com

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Agile thinking. Engineering change.

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KaMOS Patented Kammprofil

KaMOS Patented Portable Air-driven Valve Actuator

- time, cost & safety efficient -

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14 Offshore May 2017 www.offshore-mag.com

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OGA awards frontier blocks

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PLUG AND ABANDON

Save time and reduce risk with the Endura dual-string

DRILLING & FORMATION EVALUATION

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Building on 175 years of technological and engineering excellence, our

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Drilling rig contractors make major moves

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Industry continues to advance digitization

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