Petrobras sets new pre-salt production record

On 18 May, Petrobras set a new pre-salt production record, with output of 322,100 barrels of oil per day (bpd), 11,000 bpd up on the previous record of 311,500 bpd, set on 17 April.

In addition to encouraging figures for pre-salt production, the company also achieved record output in Espírito Santo, with a monthly average figure of 322,700 bpd, surpassing the previous record set in December 2011.

During May, the production of oil and LNG for all Petrobras fields in Brazil averaged 1.892 million bpd, 1.7% down on the April figure (1.924 million barrels). Including the share operated by Petrobras for partner companies, exclusive oil output in Brazil was 1.942 million bpd. This drop was partly offset by the increasing contribution from pre-salt areas to consolidated output results.

In May, total output of oil and natural gas from domestic fields was 2.267 million barrels of oil equivalent per day (boed), 2.1% down on the previous month. Including the share operated by Petrobras for partner companies, total output was 2.359 million boed.

Added to the company’s output abroad, Petrobras’ total oil and natural gas output in May averaged 2.500 million boed, 2% down on the April figure. The drop in output was due to scheduled maintenance shutdowns on platforms P-25 and P-31, in the Campos Basin’s Albacora field, and on FPSO Cidade de Angra dos Reis, operating in the Campos Basin’s Lula field pilot project.

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Baker Hughes drilling fluid system optimizes circulating pressures

Posted on 02 July 2013

The Baker Hughes MPRESS drilling fluid system was developed and tested using a rigorous quality assurance program at the Baker Hughes fluids labs in Houston.

Baker Hughes’ recently commercialized the MPRESS drilling fluid system, which enables operators to manage circulating pressure more efficiently by reducing stand pipe pressure and applying more horsepower to the bottomhole assembly and drill bit.

The shear-thinning rheological profile of the MPRESS system has a “rapid-set/easy-break” gel structure that minimizes the cuttings in the vertical section of the wellbore from settling into the curve during connections and trips. It also has elevated ultra-low-shear-rate viscosity (ULSRV) that minimizes the likelihood of the cuttings in the lateral section from agglomerating on the bottom of the wellbore “gluing down” during connections. Both the rapid-set gels and elevated ULSRV help keep the wellbore clean and minimize torque and drag associated with cuttings beds in the lateral section. In addition, the gels within the MPRESS system have the ability to break easily, reducing surge pressure when tripping in the hole so mud losses are reduced.

The MPRESS system  reduces viscosity in the drillstring, while optimizing viscosity in the annulus for more efficient cuttings transport. The pressure saved in the drillstring can be used to increase flow rate, provide more power to motors and bits, and save wear and tear on surface equipment. In combination with other Baker Hughes technologies, such as the Autotrak Curve rotary steerable system and Talon high-efficiency PDC bits, the pressure profile of the MPRESS system enables efficient drilling of challenging lateral sections in unconventional reservoirs.

MPRESS, Autotrak and Talon are a trademarks of Baker Hughes.

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Deloitte and NASA bring space-age risk management to oil and gas industry

In a move designed to bring advanced risk-management capabilities to America’s energy industry, the Deloitte Center for Energy Solutions and the NASA Johnson Space Center have entered into a strategic alliance to offer services, such as operational risk-management, to oil and gas companies.

“Activities like deepwater drilling, undersea production and pipeline operations all face the same kind of ‘black swan’ events that pose a threat to space exploration,” said David Traylor, a principal at Deloitte & Touche LLP.  “Ultimately, proactively identifying and mitigating low-probability yet high-impact events can save lives, resources, money, reputation and environmental disruption.”

Deloitte and NASA will jointly offer a range of services in the quickly evolving risk-sciences arena, such as risk modeling and simulation, to help oil and gas companies eliminate blind spots in their decision making. Such services apply sophisticated risk-modeling and simulation tools and techniques, like Bayesian networks and agent-based modeling to reduce uncertainties in engineering and operations at oil and gas companies – in much the same way NASA has done with its space program.

As part of NASA’s 135th and final space shuttle mission, for example, it used risk-modeling and simulation techniques to evaluate the potential risk scenarios of using a Soyuz spacecraft to rescue a stranded crew from the International Space Station – with no backup shuttle capability. This process identified risks linked with the Russian vehicle and helped drive a decision to extend crew time on the space station.

“NASA is a leader in applying risk strategy to highly complex systems that operate in extremely demanding environments, while Deloitte is a leader in providing valuable professional services to oil and gas companies,” said veteran astronaut William “Bill” McArthur Jr., director of Safety and Mission Assurance at the Johnson Space Center. “Energy companies facing catastrophic consequences from low probability risks will now have a range of tools and techniques to minimize the probability of these risks and improve their overall safety culture.”

Deloitte and NASA also expect that oil and gas companies will find Deloitte’s risk-sensing services valuable in emerging risk identification – a set of complex tools and techniques, like precursor analysis and event-occurrence trending, to highlight changes in risk likelihood.

NASA used these techniques when it was having problems with the space shuttle’s attitude-control thrusters, which could limit the ability to control the position of the shuttle while in orbit. Because the thrusters could not be tested on the ground, precursor analysis was used to determine leading indicators and surrounding events preceding thruster usage – allowing the space agency to resolve the problems before future missions.

Deloitte and NASA’s offerings will also include what Mr Traylor calls “dynamically improving risk-management techniques,” such as artificial-intelligence tools applied to remote decision-support systems.

In addition, Deloitte and NASA will offer services aimed at helping oil and gas companies measure and monitor the effectiveness of their risk culture among their employees and contractors – enabling them to detect whether their work environments and processes are increasing the likelihood of a risk occurring.

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Baker Hughes’ new gravel-pack, frac-pack system completes job in Gulf of Mexico

Posted on 28 June 2013

Baker Hughes completed the first commercial frac-pack job with its SC-XP system in the GOM for a major operator in the South Timbalier field.

Baker Hughes recently performed the first commercial frac-pack job with the SC-XP system in the Gulf of Mexico (GOM) for a major operator in the South Timbalier field. The system was used to frac pack a completion in 7 ?-in. casing at a depth of 12,600 ft (3,840 meters).

The new gravel-pack and frac-pack system is designed to increase operational efficiency by withstanding higher bottomhole temperatures and to improve production ratings compared to previous sand control systems. The SC-XP gravel-pack and frac-pack system combines field-proven technology and design enhancements in a single package. Its new design provides advanced performance in extreme environments, as recently demonstrated during the frac-pack completion of a well in the GOM.

The single-platform SC-XP system can be used for both frac packing and openhole gravel packing. The system incorporates the critical features of field-proven Baker Hughes gravel pack systems coupled with engineering design enhancements onto a single optimized platform. It can be run into the well up to 30% faster than previous systems. Available in 7 ?-in. and 9 ?-in. sizes, the SC-XP system can operate reliably at temperatures up to 400°F (204°C), treating pressures of 15,000 psi, and can convey proppant volumes up to 1,600,000 lb at a rate of 65 bpm, while still preserving casing integrity.

The system has undergone extensive erosion and stack-up testing at Baker Hughes technology centers and test wells. The SC-XP system is a Baker Hughes PayZone solution, designed to help operators maximize recovery from their reservoirs.

SC-XP is a trademark of Baker Hughes.

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New Energy in Depth website consolidates shale information

Posted on 26 June 2013

A new Energy in Depth (EID) website has been launched that brings together EID’s various state and regional programs.

A new Energy in Depth (EID) website has been launched that brings together EID’s various state and regional programs and leverages social and digital media tools to engage and educate various stakeholders. ?“Back when we first launched EID, most reporters thought ‘hydraulic fracturing’ was an injury you got while water skiing, and I don’t even want to tell you what they thought ‘fracking’ was,” said Jeff Eshelman, VP of public affairs and communications for IPAA and executive VP of EID. “EID today is viewed by journalists, policymakers, the public and our industry colleagues as a critical, credible and timely source of news, views and research on all things shale. It’s our hope that the launch of this new online platform strengthens that reputation moving forward.”

With the launch of EID’s new web portal, several state and regional efforts are being consolidated into one program, and readers can filter and access content according to specific needs, broken down by state or region. The new EID site hosts state-specific tabs for Ohio, California, Illinois, Michigan and Texas, as well as regional pages for the Marcellus (Pennsylvania, New York and West Virginia) and the Mountain States (Colorado, Nevada, Montana and Utah). Additional tabs are expected in the coming months.

A new web-video series has also been launched to address and correct common and pervasive myths impacting the debate over the development of oil and natural gas from shale. The first video explains the truth behind the myth of high radon content in the Marcellus Shale, a talking point that opponents of a pipeline project in New York frequently cite as a reason to stop development. Additional videos in a similar format will be released on the website every couple weeks.

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New representatives to enhance IADC presence in Europe

By Amy Rose, director of external relations

John Atkinson will serve as regional director – North Sea, based in Aberdeen.

John Boogaerdt will serve as regional director – Europe, based in The Netherlands.

To more effectively represent members in Europe and the North Sea, IADC recently appointed John Boogaerdt and John Atkinson as regional representatives. Mr Boogaerdt will serve as regional director – Europe, based in The Netherlands, and Mr Atkinson will serve as regional director – North Sea, based in Aberdeen; they join IADC’s Denmark-based representative Jens Hoffmark, regional vice president – European operations.

“At the heart of everything that IADC does is a commitment to enhancing operational integrity and championing better regulation. Our regional representatives are based in the same areas across the globe that our members are, allowing IADC to truly represent industry interests internationally,” said Stephen Colville, IADC president and CEO.  “IADC regional representatives, who have deep knowledge and understanding of the regulatory and legislative environment in their assigned area, are invaluable to achieving those goals.”

Besides its three Europe-based representatives, IADC also has a team of regional representatives in Australia, Asia Pacific, the Middle East and Africa.

With more than 35 years of experience with Shell, OMV, Parker Drilling and Schlumberger Business Consulting, Mr Boogaerdt is a senior oil industry professional. His experience encompasses a wide range of E&P subjects, with specific expertise in management of major oil and gas projects. In 2005, he became senior vice president of production at OMV. In 2009, he was named managing director at Parker. From 2011, he served as wells committee manager at the International Association of Oil and Gas Producers.

He has worked and lived in the UK, Austria, Norway, Malaysia, Egypt, Oman, China and the Netherlands.

Mr Atkinson has more than 40 years of experience in the industry. He previously served as vice chairman and chairman of the IADC Australasia Chapter and as vice chairman of the IADC North Sea Chapter. He began his career with Ben Line Group before joining Ben Odeco and later Atlantic Drilling. He joined Diamond Offshore Drilling UK in 1992 as technical services and safety case manager. Over the next 18 years, Mr Atkinson held various positions within Diamond across the world, including Malaysia, Singapore, Australia and Scotland.

“John Boogaerdt and John Atkinson bring with them valuable experience with which to positively impact industry interests in Europe and the North Sea, and I am proud to welcome them to our team,” Mr Colville said.

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Maersk Drilling: Angola and Nigeria are focal points in strong West African market

By Astrid Wynne, contributing editor

The Maersk Deliverer deepwater semi is contracted to Chevron in Angola into 2014. Angola and Nigeria are two of Maersk’s biggest target areas, where the company sees robust growth continuing for the coming years.

Significant development campaigns, particularly in Angola and Nigeria, continue to drive aggressive growth in West Africa, and Maersk Drilling sees the region as a market that could overtake the two other Golden Triangle markets over the next few years. “If we look at the last six months, Brazil is on a downward trend, with rigs being released, and the US GOM hasn’t really picked up on activity yet, although it remains a very strong market. West Africa has had by far the most activity,” Michael Reimer Mortensen, director of the deepwater team, commercial department at Maersk Drilling, told Drilling Contractor. “We’re seeing more exploration work by both the big oil majors and smaller independents.”

“If we look in our crystal ball towards 2025 to 2030, Angola and Nigeria have the biggest acreage that is known to be developed by the oil companies. They are in the middle of a massive increase in rig activity and development activity,” Mr Mortensen continued. To illustrate his point, he noted that Total has an outstanding tender for two new floaters in Nigeria and two in Angola. ExxonMobil in Nigeria is also carrying out an evaluation on tenders for two semis for two-year contracts. Then there are the extensions on existing contracts. In Angola, Cobalt International has an outlook for longer-term contracts, and other oil companies are carrying out surveys on rig availability and indicative pricing and pre-qualifications on fields slated for development in the next year or two, Mr Mortensen added. “Our focus is linked to our customers’ focus, and our customers are targeting Angola and Nigeria. Other markets have great potential, though exploration activity is higher than development activity. We’re seeing Ghana with some huge discoveries and some big developments.”

As testament to Ghana’s up and coming status, Hess announced in February its seventh successive exploratory well on the Deepwater Tano/Cape Three Points Block with the Pecan North 1 well. Just a month earlier, Eni had reported the successful drilling of the first oil delineation well in the Sankofa East oil discovery. They estimated the discovery has approximately 450 million barrels of oil in place, with recoverable resources of up to 150 million barrels.

The other side of the continent, East Africa is also one to watch. Several discoveries have taken place in the region over the past year, such as Statoil’s third discovery in Block 2 offshore Tanzania of 4-6 trillion cu ft, announced in March. Mr Mortensen said East Africa is an area that is often brought up in client meetings and conferences; however, he sees no “hard focus” on the part of oil companies in the near term. This is more likely a result of companies prioritizing resources in a heated market rather than a lack of attractive opportunities, he explained.

Maersk Drilling currently has two floaters in Africa. The Maersk Deliverer semi is contracted to Chevron in Angola until Q3 2014 with a 12-month option. Another semi, the Maersk Discoverer, is contracted to BP in Egypt until Q3 2016. The company also has two uncontracted newbuild drillships that could find their way to Africa upon delivery – the Deepwater Advanced III and IV are due out of Samsung’s yard in Q2 and Q3 2014, respectively. No contracts are finalized at this point, but Mr Mortensen said he sees an extended presence in West Africa for the company’s deepwater arm.

“We have a definite strategy to reach 30 rigs (total) by 2018. Short term, in the next five years, I would like to see four or more of these rigs added to our West Africa operations,” he said. “We feel it’s an exciting place to work, and we think that our way of doing business is well suited to the area.”

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Rig briefs: Atwood orders new drillship, KCA Deutag wins new contracts

Atwood orders ultra-deepwater drillship for 2015 delivery

The newly ordered Atwood Archer will be identical in design to the Atwood Achiever (rendering pictured). DSME is scheduled to deliver the Atwood Achiever ultra-deepwater drillship by 31 December 2015.

An Atwood Oceanics subsidiary has entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering (DSME) to construct a fourth ultra-deepwater drillship to be named the Atwood Archer. Delivery is anticipated by 31 December 2015 at a total cost of $635 million. The rig will feature two blowout preventers and will be identical in design to the previously ordered Atwood Advantage, Atwood Achiever and Atwood Admiral. All four drillships are DP-3 with dual derricks and will be rated to operate in water depths up to 12,000 ft and drill wells to 40,000 ft.

Upon delivery, the Atwood Archer will become the company’s 17th mobile offshore drilling unit.

Further, the company has secured an option to construct a fifth ultra-deepwater drillship at a similar cost to the Atwood Archer and with an expected delivery in September 2016. This option must be exercised by 31 March 2014.

KCA Deutag secures work in Myanmar, Gabon

KCA Deutag has been awarded two offshore contracts for work in Southeast Asia and Gabon. The first is a two-year operating and maintenance drilling services contract for the Shwe Platform based in Myanmar with Daewoo International. The second contract, with Tullow Oil Gabon, is for the provision of KCA Deutag’s Ben Rinnes jackup. The contract scope is for two wells, and there is an option for an additional well. Work will commence in July, operating for 80 days.

“The West African market continues to be a major hub of activity for the oil and gas industry and one where we have an established presence. Establishing new relationships in countries such as Gabon demonstrates how vibrant this area continues to be,” Rune Lorentzen, president of offshore at KCA Deutag, said.

“This contract with Daewoo International Corporation is our second contract in Myanmar and strengthens our position in the region. With existing projects under way and a number of further opportunities identified, we are in a good position to continue to develop KCA Deutag in an emerging market which offers extensive oil and gas potential,” he continued.

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EIA report: North American growth helps boost global oil production to record levels

This animated map shows how world crude oil and lease condensate production, measured in millions of bbl/day, has changed since 1980 in key oil-producing regions. Growth in North American crude oil production and recovery in African and Asian markets contributed to a record global production of 75.6 million barrels bbl/day in 2012, according to an agency brief.  Source: US Energy Information AdministrationBy Katie Mazerov, contributing editor

The Middle East still ranked as the world’s No. 1 crude oil producer in 2012, but growth in North American crude oil production and recovery in African and Asian markets, specifically China, contributed to a record global production of 75.6 million bbl/day, according to a brief released on 17 June by the US Energy Information Administration (EIA). Eclipsing the Middle East, it was the strength of the North American, African and Asian markets that drove an overall 2% increase over 2011 levels in global crude oil production, including lease condensate, the brief stated.

In 2012, the Middle East produced 24.1 million bbl/day of crude oil, a basically flat number over 2011 production. Gains in several Middle Eastern nations were offset by declines in Syria and Qatar. Sanctions also contributed to a 17% decline in Iranian production.

This EIA chart shows how crude oil and condensate production has changed year on year since 2007.

The EIA report synthesized recent figures with historical data on regional production trends between 1980 and 2010, EIA analyst Stacy MacIntyre, who compiled the statistics, explained. The data came from the agency’s International Energy Statistics database, with additional trend information compiled from EIA country analysis briefs or other energy briefs published by the EIA, she said.

The former Soviet Union ranked second in global production, with 12.7 million bbl/day, followed by North America, Africa, Asia and Oceania, Central and South America and Europe. Russia, the world’s second-largest crude oil and lease condensate producer, has seen production gains since 2009 due to development of eastern Siberian oilfields, use of advanced technologies and improved recovery techniques in mature fields in western Siberia, and development of a new export infrastructure, the report stated.

In North America, average annual production rose to 12.2 million bbl/day, a reflection of increasing production in unconventional oil plays in the US and rising bitumen and synthetic crude oil production in the Canadian oil sands. North American production had dropped to 10.4 million bbl/day in 2008.

Trends in other global markets reported by the EIA include:

Africa: Recovery of Libyan production was the main driver behind a 6% increase in African production in 2012, to 9.1 million bbl/day. New production in some non-OPEC countries, such as Ghana, also has boosted oil production in the region since 2010. Ms MacIntyre also cited Niger, a landlocked nation in West Africa, as having gone from zero production in 2010 to 20,000 bbl/day in 2012.Asia and Oceania: A 2% decline in oil production in most of the region in 2011 has not recovered, with production remaining at 7.6 million bbl/day. Offsetting that, China, the region’s largest producer, saw production rise after the Peng Lai field in the Bohai Bay was brought back online. It is China’s largest offshore crude oilfield and had been shut down following a spill in 2011. “China’s production declined 0.5% 2011 and grew 1.7% in 2012,” Ms MacIntyre said. “China accounts for 57% of Asia’s production and 54% of Asia & Oceania combined.” Prior to shut-in, production rates at Penglai 19-3 had peaked at roughly 130,000 bbl/day, according to an EIA Country Analysis Brief for China, revised in April.Central and South America: Market contractions throughout the region, notably Brazil and Argentina, contributed to a 1% decline in 2012, following an increase of 3% in 2011. Production in 2012 was 6.6 million bbl/day.Europe: Continued declining production in the North Sea is the primary reason for a downward trend in Europe. Production declines averaged 9% in both 2011 and 2012, in part due to unplanned outages in the UK and a 12% tax rate increase implemented in 2011 by the British government.

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Onshore-tested MHA drilling fluid seeks offshore applications

By Katherine Scott, associate editor

ViChem’s MHA drilling fluid undergoes lubricity testing using an OFITE Extreme Pressure and Lubricity Meter at the company’s lab in Conroe, Texas.

As regulations around handling and disposal of drilling fluids get tougher around the world, ViChem Specialty Products believes its multi-hydroxyl alcohol (MHA) drilling fluid system can fill a niche need. The fluid, which was launched in 2011, is a “hybrid between OBMs and WBMs,” Dr Buddy Gaertner, ViChem director of research and development, said.  The multi-hydroxl alcohols in the system are short-chain hydrocarbons similar to oil, allowing for performance and stability comparable to oil-based muds. However, unlike petroleum products, the MHA molecule contains hydroxyl groups on each of the carbons in the chain, allowing it to be soluble in water and remain non-toxic to the environment.

So far, the MHA has been field-tested and commercially deployed onshore only, primarily in the US Marcellus and Eagle Ford plays, but ViChem is working to take the fluid system offshore for additional field testing. The company notes that lab tests have shown its L-20 lubricant, which is a non-petroleum based organic vegetable oil, will work well with the seawater used in offshore drilling. “It turns out that our lubricant is more effective in saltwater and helps it work well with multi-hydroxyl alcohols,” Dr Gaertner said.

The best application for the MHA system, he continued, is in areas where environmental drivers are strongest, such as Pennsylvania, West Virginia, Colorado and New York. “We’re working with an environmental consulting agency, Tox Strategies, on our overall strategy to quantify environmental claims and will submit our product to several companies to be tested for offshore use in the Gulf of Mexico but also to expand that to make sure that we meet North Sea regulations, as well.”

ViChem’s MHA fluid was field-tested on Nabors’ Rig 716 in Madison County, Texas. So far, the fluid system has been tested and commercially deployed primarily in the Marcellus and Eagle Ford.

In a December 2011 field trial in the Eagle Ford/Woodbine, the MHA system was used to compare the toal depth versus days in the surface-hole sections of two horizontal wells, one using the MHA and one using a conventional WBM. The MHA system drilled without incident to 13,500 ft in less than 18 days, while the offset well drilled with the conventional WBM took 29 days to reach 10,800 ft and routinely pulled tight, taking reaming upon completion to run the final string of casing. The MHA system not only saved time but also increased the production potential of the well because of the additional length of the horizontal in the payzone, according to ViChem.

The MHA system does have its limitations, particularly around cost and temperatures. “For your conventional water-based muds, where you’re operating in very shallow, easy wells, there’s still a target for it because they are very inexpensive. And because our system is natural, there’s a temperature limit of about 350°F, so in those places that are really deep and really hot, OBMs are still needed,” he said.

Dr Gaertner attributes the success of the MHA system so far to the three years of research that was done at ViChem’s Conroe, Texas, lab before it was rolled out. “That’s why we were able to take this giant leap from what has been traditionally used in the oilfield and what we’re proposing to use right now, because we started in a laboratory, backed it up with research and then combined that with field application.”

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Huisman opens 380-meter quayside in China

Posted on 26 June 2013

Huisman has opened a new 380-meter quayside in Zhangzhou, China, that was designed for loading and installation of heavy-steel construction onboard offshore vessels.

Huisman has opened a new 380-meter quayside at its production facility in Zhangzhou, China, under its subsidiary Huisman China. The quayside features a Huisman-designed and produced 2,400-mt traveling quayside crane and direct deepwater access, making it suitable for loading and installation of heavy-steel construction onboard offshore vessels, including semis.

The traveling quayside crane, “Skyhook,” has two main lifting configurations. The heavy-lift configuration is capable of lifting 2400 mT at 30-meter outreach, with a maximum lifting height of 100 meters. The extended-reach configuration enables placing a 200-mT load at 90-meter outreach, with a maximum lifting height of 140 meters. The crane can travel along the quayside while carrying maximum load in its hooks.

The quayside application and design started in 2009, and construction via reclamation started early 2011. In total, 100,000 sq meters of land was reclaimed and converted into the 380-meter-long quayside, which has a load-bearing capacity up to 40 mT/sq meter, and a storage yard of 86,000 sq meters. To facilitate transport of heavy project cargo, the quay has also been equipped with special Ro-Ro hinge foundations more than 130 meters.

The quayside was launched this week during a naming ceremony for BigLift’s new heavy-lift vessel Happy Sky. The vessel, built by Larsen & Toubro in India, features two 900-mT heavy-lift Huisman mast cranes, which were the first to be commissioned at the new quayside.

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2nd OSRL capping system delivered to Singapore base

All four of OSRL’s capping stacks are designed into a standard configuration, with common pipework, valves, chokes and spools all rated to 15kpsi. The common framework gives greater flexibility by using interchangeable gate valves and rams.

By Astrid Wynne, contributing editor

Oil Spill Response Ltd (OSRL) unveiled the Subsea Well Intervention Service (SWIS) at its new facility in Singapore on 13 June. It is the second of four OSRL systems to be delivered this year, following the delivery of the first capping system in Norway in March. A third system is expected in South Africa in the next few weeks and a fourth in Brazil by Q4. “Each of the centers was chosen because of their strategic location in relation to the major drilling regions. This one covers Asia Pacific,” said Robert Limb, OSRL chief executive officer. The location of the facility in Singapore’s Loyang area was selected for its proximity to the deepwater harbor and to Seletar airport, where a dedicated aircraft that can be used for aerial dispersant is on permanent standby.

A capping stack toolbox and a subsea dispersant hardware toolbox are the main components of the SWIS. Both were developed by the Subsea Well Response Project (SWRP), a consortium of experts from nine oil and gas companies that worked to improve the industry’s subsea well control incident intervention capabilities outside of the US Gulf of Mexico. Houston-based Trendsetter Engineering  was selected to manufacture the four capping systems, which were designed to be adaptable to a range of well and metocean conditions. The 7 1/16-in. stack in Singapore is currently set up in a 10,000-psi configuraton but can become a 15,000-psi stack by changing out a central gate valve system with the dual-ram system.

“The connectors are similar to those in use in the US GOM in that they are provided with H4 and HC connectors, but we needed our system to be modular to accommodate the different well scenarios,” Keith Lewis, project manager for SWRP, said. “The rams were included to deal with gas volume and expansion, and the 7-in. gate valves offer lower weight and faster closing time, providing benefits for oil wells with a lower gas/oil ratio.”

Singapore is also a strategic location for storage of the subsea dispersant hardware kits. Manufactured by Oceaneering, the kits are designed for the subsea application of dispersant if the rig fails to close off the BOP. They include tools for site surveys, such as 2D and 3D sonar debris-clearing equipment with cutting, grappling and dragging tools, flying leads, distribution manifold and dispersant wands to inject dispersant at multiple locations, and high-pressure, high-volume accumulators for closing the existing BOP.

The new SWIS forms part of the permanent “Tier 3” preparedness and response capability of OSRL, a not-for-profit industry-owned cooperative with 18 deepwater capping members worldwide. The tiered approach integrates the contingency plans of the operator, government agencies and other stakeholders to ensure sufficient capabilities are in place. “Tier 3 is global response “big guns.” Tier 2 is regional or occasionally for a specific oilfield/installation, and Tier 1 is equipment at or very close to the location of the activity,” Mr Limb said.

In addition to the capping stack and a subsea dispersant hardware, OSRL’s Singapore facility has a Hercules aircraft on standby 24/7 at Selatar Airport, sea access for its two 20-meter catamarans and other specialized response equipment. The center employ two incident managers and 28 spill response specialists, all full-time, with additional response backup by 53 technical staff trained in oilfield response.

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Cimarex enters joint development agreement with Chevron

Posted on 25 June 2013

Cimarex Energy has entered into an agreement with Chevron USA, a subsidiary of Chevron Corp, for the joint development of their combined Delaware Basin acreage in Culberson County, Texas. Cimarex will act as operator of the joint development, which covers 104,000 acres.

Chevron will contribute acreage and pay Cimarex approximately US $60 million for a 50% interest in the Cimarex-built Triple Crown gas gathering and processing system and wells drilled on the acreage in 2013.  The contract has an eight-year term.

“Collaborative development of this ‘checkerboard’ acreage ownership makes perfect sense. Optimal well placement for both Second Bone Spring wells and longer-lateral Wolfcamp shale tests can now be achieved,” Tom Jorden, CEO of Cimarex, said.

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BP/Maersk look outside industry to develop HPHT drilling technology

By Astrid Wynne, contributing editor

A main challenge in Maersk’s project with BP will be to create a full package for HPHT, particularly with well control, Maersk Drilling chief technical officer Frederik Smidth said.

A partnership between BP and Maersk Drilling to develop conceptual engineering designs for HPHT drilling technology is looking beyond industry norms. “Higher pressure can be taken care of with more steel, to put it in simple terms, but the high temperatures have implications on the seal technology within the risers, the material technology inside the BOP and the rams to take the high temperatures. That’s where we might have to look a little bit outside our industry for solutions,” Frederik Smidth, chief technical officer at Maersk Drilling, told Drilling Contractor.

As the project is just beginning – the two companies announced their partnership agreement in February – much still needs to be explored. However, Mr Smidth said he already sees that one major challenge will be to create a reliable package for HPHT, even if certain technology components are already available. Major vendors, for example, have development of 20,000-psi well control equipment and driller risers under way.

“I see the main challenge is to get the full well control package safe and efficient to operate. We will need a hookload capacity beyond the current 2.5 million lbs for these types of wells, but the challenge is finding the well control and lifting structure equipment and the flexible hoses and connections used in the drilling system.”

Under Maersk’s agreement with BP, the initial studies will outline the basic design criteria, such as hookload capacity and the vessel size and type that will be capable of operating in a 20,000-psi and 350?F environment, as well as the safety systems needed to protect and train crews. Phase 1 of the project is expected to last approximately one year, with a potential extension into a contract for a finalized design that could culminate in an order by late 2015 or early 2016.

“The first units would begin drilling the US Gulf of Mexico (GOM) in 2018 or 2019, with possible additional requirements in Egypt and Azerbaijan if a contract is awarded,” Mr Smidth said.

He added that this joint project with BP is also providing Maersk Drilling with valuable insight into the deepwater cost structure from an operator’s perspective. Knowledge found within BP’s deepwater well database, for example, is helping Maersk to design systems to reduce nonproductive time.

“The total cost of drilling a deepwater well in the US GOM is around $1.2 to $1.3 million a day. We, as the drilling company, account for only 50% of the costs for an oil company,” Mr Smidth explained. “It is interesting to understand the other half of those costs, like for example the 30% to 40% nonproductive time when drilling deepwater wells. We expect to gain a knowledge that can be used in more traditional rig designs. The aim of the process is to build rigs which are safer, faster and cheaper to operate.”

Going forward, Mr Smidth sees the potential for more collaborative technical projects between drilling contractors and oil companies. “For the new frontiers – 20k, Arctic Sea, Barent Sea, the high H2S drilling in the northern Caspian – I think this kind of cooperation is essential. Drilling costs are increasing, and we can only reduce them by understanding each other’s cost structure.”

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Maersk Drilling hires DNV for software quality assurance

Posted on 21 June 2013

Maersk Drilling and DNV have entered into a contract to quality assure the software for Maersk Drilling’s new CJ70 jackups to be delivered at the end of the year by Keppel in Singapore.

DNV will carry out software-version control audits of key equipment, with a focus on software integrity, on the CJ70 jackups during the commissioning of the units. The work started this month and will continue until the units are delivered.

The contract includes a review of the suppliers’ procedures for software change management and an assessment of how the suppliers follow the procedures during the commissioning of the equipment.

“We are experiencing increasing demand from the drilling market for services related to the safety and reliability of integrated software-dependent systems. These services are now becoming an industry standard for offshore drilling units,” said Knut Ording, manager of DNV’s systems and software reliability section.

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Seadrill orders two high-spec jackups for delivery in 2015 and 2016

Posted on 20 June 2013

Seadrill Limited has entered into contracts for the construction of two high-specification jackups at Dalian Shipbuilding Industry Offshore (DSIC Offshore) in China. The newbuild rigs are scheduled for delivery during Q4 2015 and Q1 2016. The total project price per rig is approximately US $230 million, including project management, capitalized interest, drilling and handling tools, spares and operation preparations, with tail-heavy payment terms.

The two new units will be based on the F&G JU2000E design, with water depth capacity of 400 ft and drilling depth of 30,000 ft. Seadrill now has eight jackups in total under construction at DSIC Offshore of which two are scheduled for delivery in 2013, five in 2015 and one in 2016.

“These two additional orders highlight our commitment to growing our high-specification jackup fleet.  The jackup market has traditionally been a shorter-term market; however, we expect longer-term contracts to be executed going forward.  In addition to increased terms, we expect to see rising dayrates as attrition accelerates amongst an aging global fleet,” Fredrik Halvorsen, CEO of Seadrill Management, said. “These two new orders will increase Seadrill’s jackup fleet to 29 units and strengthen our position as the largest operator of modern high specification drilling units.”

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Dolphin Drilling unveils new deepwater drillship

Posted on 19 June 2013

Dolphin Drilling recently unveiled its new deepwater drillship, the Bolette Dolphin. The rig is equipped to operate in 12,000 ft of water with a maximum drilling depth of 40,000 ft.

Aberdeen-based Dolphin Drilling, one of the oldest and largest independent drilling contracting companies in the North Sea, unveiled its new 751-ft ultra deepwater rig, Bolette Dolphin, at a naming ceremony at the Hyundai Heavy Industries Shipyard in Ulsan, South Korea, where it is currently being built.

The drillship, designed for efficient deepwater drilling and completion activity, will start work for Anadarko Petroleum Corporation later this year and has been contracted for a four-year international campaign.

“The naming ceremony of the Bolette Dolphin hails a key step in the company’s strategic development with a deepwater focus, directly in line with industry demands as exploration and production continues to push to ever deeper depths. The ship marks a significant investment for the group and will be one of the most advanced deepwater drillships in the market,” Graeme Murray, managing director at Dolphin Drilling, said.

“Equipped to operate within 12,000 ft of water, with a maximum drilling depth of 40,000 ft, we are confident it will deliver favorable results for Anadarko and its major exploration campaign.”

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UK HSE report: Reportable hydrocarbon releases nearly halved over three years

Posted on 14 June 2013

The UK oil and gas industry has achieved a 48% reduction in the number of reportable hydrocarbon releases over three years, the annual Health & Safety report published on 13 June by Oil & Gas UK found. The study also showed that the oil and gas sector has the third-best performance in the UK in terms of non-fatal accidents, with a better safety record than the public sector and the retail and general manufacturing sector. “This year’s Health & Safety report shows that the industry’s unwavering commitment to continuous improvement in the safety of offshore workers is bearing fruit,” Oil & Gas UK’s health and safety director Robert Paterson said.

Other findings of the report included:

• A noticeable and steady reduction in the incidence of over-three day injuries to an all-time low;

• No fatalities and a reduction in combined fatal and major injury rates, and in all types of dangerous occurrences; and

• An all-time low in Level 3 verification non-compliances that relate to performance standards of safety-critical equipment identified by an independent competent person.

“In all this progress, our industry’s safety organization, Step Change in Safety, has played a leading role, and most of the improvement is down to the focused, collaborative effort of companies, workforce representatives, trade unions and the Health and Safety Executive in Step Change,” Mr Paterson said. “However, there is no room for complacency. While the review that followed the Piper Alpha disaster provided the foundation for what is now one of the most robust offshore health and safety regimes in the world, the approaching 25th anniversary of that tragedy only serves to remind us that we must never stop at striving to make things safer. Continued engagement of all parties through Step Change in Safety will be crucial in that effort.”

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Atwood Oceanics secures contract for Atwood Achiever ultra-deepwater drillship

Posted on 12 June 2013

Atwood Oceanics has been awarded a drilling services contract for the ultra-deepwater drillship Atwood Achiever by a subsidiary of Kosmos Energy for an exploration program commencing in Morocco.

The Atwood Achiever is a sixth-generation ultra-deepwater, dynamically positioned drillship with enhanced offline capabilities and two BOP systems. The rig’s capabilities include drilling to total depths up to 40,000 ft and in water depths up to 12,000 ft. The drillship is under construction at Daewoo Shipbuilding and Marine Engineering (DSME) shipyard in South Korea. The Atwood Achiever is scheduled for delivery from the DSME shipyard in June 2014, after which it will mobilize for a period of approximately 65 days to its first location in Morocco.

The signed agreement covers an initial period of three years at approximately $595,000 per day, with an option to extend the contract for an additional three-year term.

This contract adds $652 million in revenue backlog, bringing Atwood’s total revenue backlog to approximately $3.9 billion as of 10 June 2013.

“We are very pleased to have contracted the Atwood Achiever, our second ultra-deepwater drillship, with Kosmos Energy,” Rob Saltiel, Atwood’s president and CEO, said. “Our companies have always worked well together, and the Achiever will provide  an excellent platform for delivering safe and reliable drilling services for Kosmos’ exploration program.”

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Ensco orders its eighth Samsung DP3 ultra-deepwater drillship

Ensco has ordered an additional advanced-capability DP3 ultra-deepwater drillship based on the Samsung GF12000 hull design. The vessel, ENSCO DS-10, will be the eighth Samsung DP3 drillship in the Ensco fleet. It will be built at the Samsung Heavy Industries shipyard in South Korea, with delivery scheduled for Q3 2015. The agreement includes an option for an additional drillship of the same design.

Measuring 755 ft in length and 125 ft in width, ENSCO DS-10 will offer a 1,250-ton hoisting system with enhanced offline capability. Like ENSCO DS-8 and ENSCO DS-9, the new unit will have advanced capabilities to meet the demands of ultra-deepwater drilling in water depths up to 12,000 ft and a total vertical drilling depth of 40,000 ft. It will be initially outfitted to work in water depths up to 10,000 ft. Including commissioning, systems integration testing, project management and tubulars, the construction cost is expected to be approximately $625 million.

ENSCO DS-8 and ENSCO DS-9, also based on the GF12000 hull design, are scheduled for delivery in 2014. Ensco is currently the only drilling contractor offering the advanced features of the GF12000 hull design. Features of the drillship include: retractable thrusters; enhanced safety and environmental features; improved dynamic positioning capabilities; and advanced drilling and completion functionality, including below-main-deck riser storage, triple fluid systems and offline conditioning capability. The drillship also incorporates enhanced client and third-party facilities with living quarters for up to 200 personnel.

A 165-ton active heave compensating construction crane allows for deployment of subsea production equipment without interference with ongoing drilling operations. ENSCO DS-10 includes a 15,000-psi subsea well control system with seven rams and can accommodate a second BOP stack.

“We continue to see very strong demand for rigs in existing deepwater markets, along with growing demand from emerging exploration areas. Operators are also showing high interest in this iteration of the Samsung DP3 drillship, due to its advanced design and capabilities that improve drilling productivity and fuel efficiency – two key factors that affect the operator’s project costs,” said Ensco chairman, president and CEO Dan Rabun.

Ensco’s four active DP3 drillships are currently working in the US Gulf of Mexico, Brazil and West Africa. Three are contracted into 2016, and the fourth is contracted into 2018. A fifth drillship, ENSCO DS-7, scheduled for delivery later in 2013, is contracted to Total into 2016.

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