REQUIRED READING FOR THE GLOBAL OIL & GAS INDUSTRY SINCE 1975

Answering Azurite’s
FEBRUARY 2010

drilling challenge
Subsea cryogenics
back to the future
Drilling
OFFSHORE ENGINEER down under
oe.oilonline.com

PLUS: WHY THE INDUSTRY’S HEAVY HITTERS ARE CLOSING IN ON GREENLAND’S FROZEN ASSETS
 ([[OLMVYLMYVU[
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^^^HRLYZVS\[PVUZJVTZ\IZLH

OE_M_4_AkerSolutions_FP.indd 1 27/1/10 15:43:43

 FEBRUARY 2010
COVER
Deployment of Benthic Geotech’s Prod
(portable, remotely operated drill)
seabed drilling rig for its European
debut last year – obtaining continuous
cores and testing soils down to 100m
for foundation purposes at Statoil’s
Luva field location in the Norwegian
Sea (see page 42).

http://interactive.offshore-engineer.com Volume 35 Number 2

mailbag
FROM SCOTT RYAN (EMAIL):
As the senior reservoir engineer for one
of the world’s largest planned
contents
9/10 DIGEST Papa Terra FID; Gorgon gains; Davy
Jones’ locker; Black Sea push; Mexican
wave; Reinga ready; Thailand trap; Luno
carbon storage projects I have to take landing; future fuels.
umbrage at some of the assertions in Prof
Economides’ article ‘Carbon storage just 13-20 ANALYSIS Thought leader Matt Simmons pondered
doesn’t hold water’ (OE December 2009). the oil & gas industry’s sustainability
We have indeed done those simple at the Aon-sponsored Energy Risk
calculations, and substantially more since Symposium in Houston, reports OE
then, prior to jumping on this particular managing editor Jennifer Pallanich.
bandwagon. Plus: NOCs maintain recruitment tempo;
Firstly I am not convinced of any need Abu Dhabi energy summit; North Sea gas
to use a closed system (provided of course warning; New light on loop currents.
that any open system is sufficiently
understood). Nevertheless even if we 22-24 G&G NOTEBOOK Offshore Arctic seismic exploration is not
accept this as true then the storage getting quite such a cold reception these
capacity can be increased vastly by days. Andrew McBarnet explains why.
producing water to reduce the pressure
increase – as we have planned for our 26/27 MR BLUE SKIES Blue sky thinking and a bunch of new
project. Naturally this adds to the cost of patents have in recent years heralded
storage, granted, but it is scarcely new Fluor’s return with a vengeance to the
technology and certainly more likely to be subsea technology arena after a near
economic than requiring the state-sized two-decade lull. Jennifer Pallanich talks to
aquifers you speak of. FOS technology director Neal Prescott
I would agree that we can not all about the company’s latest offerings and
evaluate projects in isolation and each initiatives.
assume the right to an ideal infinite
aquifer. We certainly have to build in our 28/29 FLEXPIPE PRIDE Passionate about the product is how
own pressure management provisions, Technip’s Alain Marion sums up his
however that is achieved. Nevertheless I company’s feeling about supplying
am reluctant to believe that this is a fatal flexible pipe. Meg Chesshyre visits the
flaw for CCS. company’s Le Trait facility and talks
to senior management about upcoming
FROM: RON MASTERS (EMAIL) market opportunities.
Prof Economides is simply wrong when
he says that total storage capacity, well 30-35 FLOATING FIRST Brought onstream last year in the deep
cost, and injectivity have been ignored waters offshore Congo, the Prosafe-
by those who ought to know better. supplied floating facility on Murphy’s
Ironically, he disparages those who Azurite field marries drilling and
investigate what he considers peripheral production systems in a world-first
issues, while failing to recognize that FPDSO. Jennifer Pallanich checks the
injection costs are modest compared to development’s progress and learnings to
capture costs. date.

oe.oilonline.com 3
FEBRUARY 2010
37-40 LNG PORTS IN A STORM Lower prices, weak demand and
competition from vast onshore shale
plays helped put a damper on offshore
liquefied natural gas terminal projects
in the Gulf of Mexico, but plans for two
deepwater LNG ports are still very much
alive, reports Russell McCulley.

40-41 WELCOME ABOARD Continuing his Gulf Coast

coverage, Russell McCulley
joins the welcoming party
for BJ Services’ new
deepwater well stimulation
vessel, the Blue Dolphin, and reviews the
vessel’s first weeks on the job.

43/44 DRILL INSTRUCTOR An Australian-designed seabed drilling

rig got the thumbs up from Statoil after
completing a challenging geotechnical
assignment for the Luva development
in the Norwegian Sea. Jennifer Pallanich
reports.

46-51 COMPLETE SERVICE Single-trip multi-zone completions have

seen some changes over the years as
service companies put their own spin
on the technology. Jennifer Pallanich talks
to five completion specialists about
the distinguishing characteristics and
continuing evolution of their offerings.

52/53 PULLING THE PLUG Champion’s Jeremy Lee describes a flow

assurance approach for ultra-deepwater
that by reducing system pressure at
the wellhead allows hydrate blockage
remediation without intervention vessel
support.

54 20:20 PIPE VISION Continuing in flow assurance vein,

Kongsberg’s Amit Jain discusses the
improved accuracies made possible by his
company’s LedaFlow software solution,
employed on Snøhvit’s 143km multiphase
pipeline.

56-58 MARINE RENEWABLES With its third licensing round, the UK

last month heralded the biggest expansion
of offshore wind energy seen in the world
so far . . . as the US continued to debate
its first such facility, in the Nantucket
Sound offshore Massachusetts. Reports
by Meg Chesshyre and Russell McCulley. Plus:
SeaGen delivers.

74 EBB & FLOW The most telling evidence of the

disconnect between insinuations and
reality can be found in the results of the
first two auctions for operating Iraqi
oilfields, argues Professor Michael J
Economides.

SUPPLEMENT WINNE NIGERIA REPORT

REGULAR FEATURES OE contacts (6), Contracts (10), Rig
market (16), Offshore data (20), Products
in action (60-62), Firms & Faces (65/66),
Diary (68), Display advertisers index (70),
Bookshop (71-73).

4 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

OE_M_4_Interactive.indd 1 28/1/10 09:13:54

OE_M_4_Cameron_FP.indd 1 27/1/10 15:53:36
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OE_M_4_OOL_Drill_D_FP.pdf 1 28/1/10 20:29:10

 L I Q U I D L E V E L M E A S U R E M E N T

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OE_M_4_Magnetrol_FP.indd 1 27/1/10 18:06:35

 for updates and

DIGEST
MEXICAN WAVE: Despite severe winter weather conditions, CGGVeritas
vessel Alizé is reported to have notched up a one-day production record
further information on of 117km2 and significantly exceeded production targets on the first leg

Digest and Contracts

of the mega 3D seismic program currently being acquired for Pemex
in the deepwater Gulf of Mexico. The contractor attributed this strong

items go to OE’s website performance to the deployment of one of the industry’s largest areal
receiver arrays, with 12 Sercel Nautilus-Sentinel steered solid streamers in
http://oe.oilonline.com an 8km by 100m configuration reducing infill requirements. CGGVeritas
CEO Robert Brunck said this initial Han Sur-Oeste de Tamil survey,
covering a surface area of 12,300km2, was setting ‘a new benchmark for
safer operations, quieter data and better crew efficiency’.

BOLDLY GOING
‘A bold step-out which has
successfully proven the
FloaTEC design) connected
to an FPSO (BW Offshore’s
converted ULCC BW Nisa,
digest
northwest of Onslow, indicated
a gas column of 137m.
INTO THE BLACK
ExxonMobil and Petrobras
have teamed up with the
significant extent of a major renamed P-63). These choices REINGA READY TPAO, the Turkish national
new oil and gas-condensate were the result of a second One of New Zealand’s ‘most oil company, to explore the
field offshore Ghana’ was go-round on the bidding prospective frontier basins’ is deepwater Black Sea block
how Tullow Oil exploration process, after Petrobras and open for bids for the first time. 3922 (Sinop) offshore Turkey.
director Angus McCoss Chevron determined the first Six blocks covering 105,340km2 The exploration agreement,
summed up the Tweneboa-2 round offers were too high. are on offer in the Reigna subject to Turkish government
exploratory appraisal well in First oil from the facility, Basin, an area geologically approval, covers an area of
the Deepwater Tano block. with 140,000b/d production contiguous to the producing 30,000km2. Whereas Petrobras
Drilled by the Atwood capacity, is expected in 2013. Taranaki Basin. Energy & and TPAO originally shared
Hunter semi 6km southeast resources minister Gerry the block 50:50, under the new
of the Tweneboa-1 discovery . . . AS GORGON GAINS Brownlee said the area had deal ExxonMobil’s Turkish
to an interim depth of 3860m Hard on the heels of its Satyr-1 ‘all the elements required for affiliate takes a 25% equity
in 1321m of water, the well and Achilles-1 discoveries, an active petroleum system stake in the concession
encountered a gross reservoir Western Australia’s Greater present over a large area’. licence, with operator
interval of 153m containing Gorgon area yielded yet more The government acquired Petrobras holding 25% and
32m of net hydrocarbon pay in exploration drilling success 2026km of 2D seismic data TPAO the remaining 50%.
stacked reservoir sandstones, for operator Chevron last over the basin in early The ultra-deep waters of the
comprising a 17m oil bearing month. Results from the 2009; CGGVeritas holds an Black Sea are considered one
zone below a 15m gas- company’s Yellowglen-1 well, additional 3886km of 2D of the world’s last oil frontiers.
condensate bearing zone. drilled to a TD of 2760m in seismic over the area. Bidding Drilling operations, using the
the WA-268-P permit 250km closes on 18 August. Leiv Eiriksson, are expected to
PAPA TERRA PUSH . . . begin 1Q with the Sinop-1 well.
Chevron’s final investment LOTS IN THE LOCKER: Results
decision for the Papa Terra from the Davy Jones well drilled in NORWAY NEWCOMERS
project, the company’s second Marsh Island block 230 are ‘redefining Two newcomers to
deepwater development the subsurface geologic landscape Norwegian shelf operating
offshore Brazil following below 20,000ft on the shelf of the Gulf – Bridge Energy and Repsol
Frade, came through on of Mexico’, according to McMoRan Exploracion – were among
27 January. The company has Exploration co-chairman James the 19 companies offered
a 37.5% interest in the Moffett. The well, drilled by the Rowan operatorships in the 2009
$5.2 billion, Petrobras-operated Mississippi (pictured) in 20ft of water awards in predefined areas,
project which is estimated to to a depth of 28,263ft and logged with announced last month.
recover 380 million barrels. pipe-conveyed wireline logs to 28,134ft, Applications came in from
Situated in 1190m of water indicated 200ft of possible productive 44 companies vying for the
in southern Campos Basin net sands in four zones in the Wilcox mature acreage, and 43 were
block BC-20, the heavy oil section of the Eocene/Paleocene. successful. Twenty-five of the
subsea development will Further logging and testing is needed to confirm porosity and flow rates, but 38 new production licences
feature Brazil’s first tension McMoRan said the sands were of ‘exceptional quality’ and that Davy Jones could be one awarded are in the North Sea,
leg platform (a beefed up of the shelf’s largest discoveries in decades. ten in the Norwegian Sea and

oe.oilonline.com OFFSHORE ENGINEER | february 2010 9

DIGEST

COURTESY NEXANS
field and due to disconnect for
CONTRACT BRIEFS upgrading work in April 2011
®Cameron is to supply – on Baleia Azul for 18 years.
over $230 million in subsea ®Argas, the Saudi Arabian
production systems for the JV owned by CGGVeritas
Chevron-operated Jack & and Taqa, secured two
St Malo development in the ocean bottom cable 3D
deepwater Gulf of Mexico. data acquisition contracts
The contract scope includes for Saudi Aramco. With a
a dozen 15,000psi subsea combined value of
trees, production control $375 million, the contracts
systems, four manifolds cover an initial 6000km2 in
and associated connection 20-60m water depths over the
systems, engineering and next three years.
project management services. ®Compañía Mexicana De
Deliveries are scheduled to Exploraciones (Comesa)
begin in 3Q 2011 and continue awarded Technip a technical SKAGGERAK STRETCH: Resurgent UK shipyard Cammell Laird has been awarded a
through 2Q 2013. assistance contract to help in contract to lengthen the cable layer Nexans Skagerrak. The ship was due to arrive at the
®Smith International’s the development of the pre- yard in late January for conversion work, which includes inserting a new hull section to
PathFinder Energy Services FEED for the Pemex-operated lengthen the ship from 106m to 118.5m, installing an additional accommodation module
landed a contract worth Lakach field about 60km and supporting systems, as well as a new working deck complete with cable handling
$80-$100 million over three offshore Veracruz in 1000m equipment. The existing accommodation is also being upgraded and new deck cranes
years to provide Petrobras of water. Pemex anticipates installed to extend the service life of the vessel and improve its autonomy whilst at sea.
with directional drilling spending some $1.4 billion The vessel’s first task post-conversion is scheduled for April in Norwegian waters – cable
assets. between 2011 and 2015 on laying for BP on Valhall.
®A subsea service contract this project, which includes
with Petrobras is expected to a subsea tieback to shore three in the Barents. The areas The 16/1-13 appraisal well
result in an additional through dual flowlines and a available covered 55,319km2 on block 16/1 was drilled by
$80 million in revenue to new onshore gas plant. over 227 blocks or part-blocks. the semi Transocean Winner to
FMC Technologies. The scope ®Neptune Marine Services ‘It is clear that the oil 2275m TVD in 109m of water.
of supply includes storage, secured a diving, survey companies still find it
maintenance, commissioning and vessel support services interesting to explore for oil FUTURE FUELS
and offshore services for contract from Chevron for and gas in mature areas. The With global energy
subsea and topside control the Gorgon LNG project off North Sea is particularly consumption expected to
systems and drill pipe riser Western Australia. attractive even now, 40 years double over the next 40 years,
systems. In the North Sea, ®Aker Solutions won the after Ekofisk was discovered,’ Jennifer Holmgren, renewable
FMC signed a $40 million deal EPCI contract from BP Norge said NPD director of energy & chemicals VP at
with Statoil for the supply of for the 24km tieback from the exploration Sissel Eriksen Honeywell subsidiary UOP,
10 production risers, tieback Dong-operated Oselvar field told the World Future Energy
connectors and installation to the Ula platform in 70m THAILAND TRAP Summit in Abu Dhabi ‘it is
tools for the Snorre field, now of water in the Norwegian The Songkhla B-01 exploration hard to imagine how we will
undergoing modification to North Sea. Estimated contract well in Gulf of Thailand get there from here unless
extend its productive life span value is NKr450 million and block G5/43 was temporarily alternative fuels become an
through 2040. fabrication work will be abandoned by Coastal Energy important part of that future’.
®Amec teamed with Parsons carried out at the Egersund after encountering a breached Future fuels must be ‘drop-in
Brinckerhoff and Senergy yard. trap and logging just 10ft of net replacements,’ she said.
was appointed by Gateway ®Galp Energia signed pay in the Lower Oligocene ‘We cannot afford to
Storage Company to contracts with Saipem and formation. The well, drilled invest in recreating the
undertake the FEED for both the consortia of SBM/Chiyoda to 2758m MD, has substantial infrastructure. Instead, we
the offshore and onshore and Technip/JGC/Modec for hydrocarbon shows in the should focus our resources
elements of the proposed FEED work on the proposed Eocene formation but with low on creating the alternative
£600 million Gateway offshore FLNG unit to serve the pre- porosity and permeability. fuels.’
underground gas storage salt area in Santos Basin Coastal CEO Randy Bartley Abu Dhabi’s emerging role
scheme in east Irish Sea blocks BM-S-9 and BM-S-11 said the well still provided as a hub for renewable energy
caverns. The current phase offshore Brazil. Deadline for valuable information about was highlighted by January’s
of the project, targeting proposals is December. the structure. summit (see ‘Analysis’).
potential start-up in 2014, ®CSL has won a Already home to the
would provide 1.5bcm of £7.6 million turnkey contract LUNO LANDING International Renewable
storage capacity. from Silverstone Energy/ A second appraisal well Energy Agency, the Emirate
®SBM has a letter of intent MCX Exploration (UK) to at the 2007 Luno find in has set a goal of receiving 7%
from Petrobras for an FPSO decommission the Tristan the Norwegian North Sea of its energy consumption
for the Baleia Azul field North West development proved a 50m oil column from renewable sources
offshore Brazil, where first in UK Southern North Sea in Jurassic sediments by 2020 according to John
oil is expected in July 2012. block 49/29b. Helix Well with ‘excellent reservoir Perkins, provost of the Masdar
SBM will lease and operate Ops (UK) will provide well characteristics’, confirmed Institute, a graduate and
the existing FPSO Espadarte intervention, abandonment Swedish independent Lundin research institution, affiliated
– currently handling engineering and diving Petroleum, adding that no with the Massachusetts
production at the Espardarte services from the Seawell. production test was required. Institute of Technology.

10 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

  

OE_M_4_Allseas_FP.indd 1 28/1/10 20:34:02

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 ANALYSIS
‘“Houston, we have a problem”
is beyond question.’
Matt Simmons

analysis said, adding the industry

has only grown riskier over
the years. Additionally, the
85 million b/d through 2030
would require finding the
equivalent of four new Saudi
industry’s 20-year depression, Arabias, he said, and the
from 1982-2002, had created equivalent of six just to grow
a generation of risk-averse to 90 million b/d.
leaders. ‘I suspect the risk ‘None of this is remotely
factor today in this industry is possible,’ Simmons declared.
about four times what it was ‘“Houston, we have a problem”
when I entered the industry 40 is beyond question,’ he said,
years ago,’ he said. adding that a large-scale
A leading contributor to risk energy crisis could morph into
is the lack of transparency social chaos or war.
in numbers, according to Another risk ‘remains
Simmons. ‘We live in a hidden’, he said: rust. That
world of obtuse data.’ For is, he clarified, the industry’s
instance, he said, there are aging infrastructure,
no third-party audits for over especially because many
90% of the world’s proven companies ended ‘robust’
hydrocarbon reserves and no maintenance routines years
data on the same percentage ago.
of the most important oil and Finally, the unconventional
gas fields. For countries that reserves may not be the
refuse to make their field data blessing they were once
transparent, he suggested believed to be, for several
adding a tax per barrel of reasons. Some have
exported oil. At a $50/bbl considered these reserves to be

Risky business
surcharge – a number he said an energy bridge into the next
he made up on the spot – for century, he said. This notion,
lack of transparency on each he added, is based on belief in
exported barrel, he said, every a number of figures that aren’t
Investment banker and industry thought leader Matt Simmons country would post their verified.
pondered the sustainability of the oil & gas business at details ‘within a week’.
January’s Aon-sponsored Energy Risk Symposium in Placing additional strain Where are the facts?
on the world’s supply is the Simmons cited the US
Houston. Jennifer Pallanich listened in. International Energy Agency’s Geological Survey’s figures
estimate, from its World for reserves in the Bakken
oting how risky the oil wildcatting as ‘a game that Energy Outlook 2008, that the Shale in North America. In

N & gas industry is and

has been, Simmons &
Co International chairman
wouldn’t attract anybody in
Las Vegas’.
‘There’s no aspect of this
current production base of
85 million b/d will dwindle
to 25 million b/d by 2030.
2008, the USGS reported the
play held 3-4.3 billion barrels
of technically recoverable oil
Matt Simmons described business that’s low risk,’ he Simply to continue supplying assessed, which is 25 times

oe.oilonline.com OFFSHORE ENGINEER | february 2010 13

ANALYSIS
more than its 1995 estimate. ‘The privately-owned companies have
Also, many seem to think the
Canadian oil sands and tar reduced recruitment on average by 30%.’
sands will ‘last forever’ and Antoine Rostand
that the industry will soon
figure out ways to extract
kerogen from another shale
play in the US. ‘These “facts”
lack any data to verify these
beliefs. They’re just beliefs,’
he said.
An additional reason for

NOCs maintain
concern is water – and not just their graduation to managing
in the realm of unconventional a project themselves. Time to
reserves. In three and a half autonomy is longer in the oil
years, Simmons said, the industry than in most other
industry damaged 70 billion
barrels of potable water to
create the slurry necessary to
frac over 10,000 wellbores in
recruitment tempo
wo very different employers that are often part
industries.
Traditionally it took eight
to 10 years to create an
autonomous petrotechnical
the Fort Worth Basin. Water
scarcity will become a bigger
issue, he believes, especially
T reactions were
apparent in the latest
Schlumberger Business
of the social fabric.
‘If we have stop/go in the
recruitment campaigns it can
professional. Companies are
now coaching their people
to accelerate the time to
given that a 300,000b/d Consulting’s annual have a serious effect on the autonomy. ‘We have a sample
refinery uses nearly twice that benchmark survey of oil and university system and the of companies who have
in water. ‘Energy’s water use gas engineer recruitment, involvement of the students,’ worked with us, and they have
has traditionally been free, unveiled in Paris at the he warned. The pool of people on average moved from nine
and soon this wasteful practice energy sector management from which oil companies to six years, so we have gained
has to stop,’ he said. ‘Oil is consultant’s human resources recruit is a finite one. ‘There three years.’
precious, water is priceless.’ summit for energy leaders will be a surge of activity in This year’s survey results
If water is a resource to from some 60 companies. three to five years from now, identified a shortfall in
be saved, it also may be a Briefing OE on the results and we will need the people.’ the number of graduate
savior. ‘Ocean energy is our of the survey – now used Developing people takes engineers of around 8000, or
last energy frontier,’ he said, by the Society of Petroleum time, Rostand added. ‘When 6%, of the required number of
noting most renewables are Engineers as a reference we talk about developing an petrotechnical professionals.
more sustainable offshore point for the supply and oilfield, the longest lead time ‘I think just by putting the
than on land. ‘Offshore wind demand of graduates – SBC is not the rig, or the pipeline, numbers this will be a wake-
is infinitely more powerful president Antoine Rostand but the people.’ SBC coined the up call. If we don’t recruit we
and sustainable than onshore said: ‘Basically the state- phrase ‘time to autonomy’ to will not have the right people
wind.’ owned companies have kept describe the length of time it to develop the next generation
Right now, only 1% of their recruitment almost takes to train som
someone
eone from
omeon of projects,’ Rostand said.
the world’s wind power is unchanged, while the SBC’s previous survey had
generated offshore. But he’s privately-owned companies pointed up the geographical
keen enough on offshore wind have significantly reduced imbalance in where graduates
that he founded the Ocean recruitment. They have not are trained (OE January
Energy Institute in 2007 as a stopped recruitment, but they 2006). Subsequently, on the
think-tank and venture capital have reduced it on average by supply side, enrolment had
fund to address the challenges 30%.’ been increased in shortage
of US offshore renewable He pointed out that national countries such as the US
energy. That group has put oil companies were in a and the Middle East, with
together a project in the Gulf different position to privately- new universities being built,
of Maine – sometimes referred owned ones. Since their Rostand pointed out. On
to as the ‘Pickens Plan Plus’ planning horizon was much h t demand
th
the dem side, a lot of
– that will turn kilowatts and longer, their demand foror companies had
c
com
ocean water into hydrogen and people had not been ssubstantially
su
liquid ammonia, a transport affected in the same diversified
di their
fuel. way. They also had rrecruitment
e
‘We’re the only one we know a social agenda, portfolios.
p
po
of that has figured out all these he said, and Meg Chesshyre
M
Me
steps,’ Simmons later told companies such ch
h
OE. He expects to have three as Pemex
small turbines in the water for are big
testing by year-end. The state
of Maine is also expected to
award offshore wind tracts by
the end of the year, he said. OE
z ‘Cape Wind inches closer’, see
page 56.

14 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

OE_M_4_MTU_FP.indd 1 27/1/10 18:12:15
ANALYSIS
OE’s at-a-glance guide to ‘I think we have to see that our
current rig data is updated use of fossil fuel is as clean as
monthly using statistics
provided by Rigzone.com possible. We have to redesign
our processes.’
Rig Maria van der Hoeven,
Netherlands’ economic affairs
market
After declining about 14%
minister

over the last twelve months,

utilization for the worldwide
mobile offshore drilling fleet
posted its first monthly gain
in more than a year recently to
stand near 75%. Although the
gain was modest (less than 1%),
it is notable that utilization
declines have diminished, and
global utilization appears to
have flattened out near current
levels for now.
In the Gulf of Mexico
(including both US and
Mexican waters), overall rig
utilization currently stands
at 64%. It is worth noting that
the overall average is brought
down by jackup utilization,
which stands at 55% and
has recently been tracking
well below the global jackup
average. Currently, there
are just over 30 jackups cold
stacked in the region, and
roughly 30% of the contracted
jackups in the region will roll
off contract by the end of 1Q
2010.
In contrast, floater Delegates gather for
utilization in the region, near January’s Masdar-hosted
90%, is actually above the World Future Energy
global average. On the floating Summit in Abu Dhabi.
rig front, there are only handful
of units are available during

Climate change
1Q 2010. UK secretary of state for
energy & climate change
Worldwide rig utilization
Ed Miliband fell into the
100%
Drillship glass-half-full camp, saying the
90%

80%

70% Jackup
Semi bounces back
n array of world leaders, deter countries from seeking
Copenhagen talks had helped
put the carbon reduction
wheels in motion. ‘It is true of
many historic movements that
60%

50% A policy makers and energy

officials gathered in Abu
consensus in future meetings
or curtail energy efficiency or
they don’t do what they set out
to do at the outset,’ he said.
11/08
12/08
01/09
02/09
03/09
04/09
05/09
06/09
07/09
08/09
09/09
10/09
11/09
12/09

Dhabi last month to debate the development of alternative Miliband noted that not only
Gulf of Mexico rig utilization the response to global climate sources, World Future Energy would policy determine the
100%
Drillship change and to rehash the Summit 2010 delegates were course of events. ‘Business has
90% Jackup Semis
failures, and promise, of last told. been an important voice’ in
80% Semi December’s UN Summit in The event, the first the climate change agenda, he
Copenhagen. post-Copenhagen international said, because many companies
70%
The failure of industrialized gathering on the topic, was recognize the movement’s
60% Jackup and developing nations to hosted by the emirate’s inherent opportunities.
50% reach a legally binding accord sustainable energy company President Mohamed
11/08
12/08
01/09
02/09
03/09
04/09
05/09
06/09
07/09
08/09
09/09
10/09
11/09
12/09

on emissions should not Masdar. Nasheed of the Maldives

16 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

OE_M_4_Gardner_D_FP.indd 1 27/1/10 16:05:55
ANALYSIS
– where the prospect of ‘It must not be forgotten that gas from under
rising sea levels is not just a
matter of adaptation, but an the seabed surrounding our own coastline
existential crisis – said the
Copenhagen talks represented
should be our first line of defence.’
‘important steps forward’ David Odling, Oil & Gas UK
but that the international
community would be
challenged over the coming
two years to strengthen the
accord.
Unlike arms negotiations

Keep gas on the

or trade agreements, Nasheed
said, the world does not
have the luxury of time to
reach consensus on carbon
reduction. ‘We cannot cut a
deal with Mother Nature.’
Several speakers at the
summit emphasized the need
front burner
hile a nationwide freeze estimated to lie (OE January).
for developed nations to
commit more funds toward
bringing enough scale to
W and the world’s biggest
windfarm licensing
round hogged Britain’s
An extension of the allowance
would help to attract the
£2 billion investment required
alternative energies, such headlines last month, Oil & to bring this gas ashore,
as solar, to help bring down Gas UK energy policy manager said Odling. In addition, a
the cost of technologies and David Odling issued a timely broadening of the rules around
to pledge more for sharing reminder of the need to bolster the new field allowance
those technologies with poor indigenous gas production. would promote investment in
nations. Calling on the government technically difficult gas and
Ghana’s environment, to further incentivise gas field the reserves remaining in
science & technology minister, investment, Odling said: ‘Oil existing fields in the southern
Hanny Sherry Ayittey, called & Gas UK believes that up to North Sea.
technology transfer ‘a great 1.5 trillion cubic metres of ‘The ability of the UK
challenge’. The discovery and gas remain to be developed gas market to respond to
production of hydrocarbons in and produced from the UK the recent cold snap and
her country, she said, ‘won’t continental shelf. Assuming meet demand illustrates the
change our need for seeking domestic production and importance of diversity in
other forms of energy’. imports each satisfy half of our gas supplies, which are
The Netherlands’ economic our demand, this could last in fact the most diverse in
affairs minister, Maria van for some 30 years. However, the European Union,’ Odling
der Hoeven, acknowledged gas projects must prove noted. ‘While additional
that fossil fuels would competitive enough to attract storage capacity would play an
continue to be the main source the required investment important role in alleviating
of energy in coming decades if these volumes are to be any tightness in the gas
even if ambitious goals to cut recovered. market during periods of
emissions are adhered to. While the new field high demand, it must not be
‘I think we have to see that allowance announced in the forgotten that gas from under
our use of fossil fuel is as clean last UK Budget encouraged the seabed surrounding our
as possible,’ van der Hoeven investment in some difficult own coastline should be our
said. ‘We have to redesign our fields, Odling urged that it first line of defence.’
processes.’ be extended to apply more He called on the government
The task of the broadly – in particular to to work with the industry to
industrialized nations in the Snow covers the British Isles, the remote West of Shetland ‘rebalance the tax regime to
year ahead, said Miliband, is 10 January. PHOTO: NASA/GSFC, region where a fifth of the ensure we make full use of our
to come up with ‘sufficiently MODIS RAPID RESPONSE country’s gas resources are own resources’. Meg Chesshyre
tough targets’ for carbon
reduction and to make efforts
to gain the trust of developing
countries.
‘It’s got to be a prosperity
message’ that developed
nations bring to those whose
energy use and emissions are
on the upswing, rather than
a punitive one, he said. ‘But
it’s got to be a low-carbon
prosperity message.’
Russell McCulley

18 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

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ANALYSIS

SPACE OCEANOGRAPHY GROUP/

JOHN HOPKINS UNIVERSITY

Quick stats
OE’s at-a-glance guide to current offshore field data is updated monthly
using statistics supplied by data analysts Infield Systems.

Reserves in the Golden Triangle

by water depth 2010-14
Water Field Liquid Gas
depth numbers reserves reserves
(mmbbl) (bcf)
New discoveries announced Shallow 42 2156 6876

Brazil
Depth Deep 20 4234 2870
range 2007 2008 2009 2010 Ultradeep 18 3864 6030
Shallow (<500m) 157 140 78 1

New light on loops Shallow 32 53 1487

USA
Deep (500-1500m) 31 30 31 0 Deep 58 2924 4578
Ultradeep (>1500m) 25 22 25 0 Ultradeep 29 4261 4155

Total 213 192 134 1 Shallow 186 3616 16,904

W Afr
n a development that influence deeper currents in

I could have far-reaching

implications for oil & gas
operators in the deepwater
the region.
The study supplements
information gathered
Note: Operators do not announce discovery dates at the time of
discovery, so totals for previous years will continue to change.

Production systems worldwide

Deep
Ultradeep

(last month)
39
13
437
431
6304
2110
29,521
29,012
9900
1490
54,291
53,980
Gulf of Mexico, researchers during a previous three-year (operational and 2008 onwards (2010 for floaters))
(last
last month released the deployment. During the very Floaters: month)
findings of a two-year study active 2005 hurricane season, Operational 235
Greenfield reserves
that could help scientists scientists observed that rising Under construction/conversion 34 2010-14
better predict the behavior sea levels and pressure near Planned/possible 240
Water Field Liquid Gas
of the region’s powerful loop the center of tropical storms 509 (505) depth numbers reserves reserves
Fixed platforms: (mmbbl) (bcf)
current and its eddies. transmits energy in the form (last month) (last month)
The US Minerals of heat to deeper waters Operational 9252
Management Service (MMS) below, said Alexis Lugo- Under construction/conversion 131 Shallow 1360 74,2444 726.619
Planned/possible 1517 (1371) (74,854) (764,391)
sponsored study, Observation Fernandez, the MMS physical
10,900 (10,871)
of the deepwater manifestation oceanographer who led study Deep 192 16,326 83,539
Subsea wells: (192) (16,386) (83,613)
of the loop current and loop conducted under a joint
Operational 3737
current rings in the Eastern agreement with Louisiana Ultradeep 67 10,270 21,375
Under development 447
Gulf of Mexico, provides new State University’s Coastal (67) (10,270) (21,375)
Planned/possible 4486
information about the loop Marine Institute.
8670 (8640) 1619 101,840 831,533
current and its associated ‘The observations from this
eddies, the relation between study will help MMS and other
upper-layer and lower-layer scientists better understand
Global offshore reserves (mmboe) onstream by water depth
currents, and ‘the variability the loop current and improve
2008 2009 2010 2011 2012 2013 2014
of water mass characteristics our forecasting of its behavior
in deepwater’. in the Gulf of Mexico,’ Lugo- Shallow water 26,091.44 20,385.16 16,118.09 32,438.54 34,887.79 52,497.90 66,432.49
According to the MMS, Fernandez said. ‘This is (last month) (26,105.20) (20,405.86) (16,124.94) (32,519.70) (46,367.07) (75,437.00) (39,200.56)

data gathered during the important because oil and gas Deep 3302.37 5568.05 4027.02 3119.75 5398.80 6719.30 11,800.41
deployment of an eastern activities in the deepwater (last month) (3302.37) (5574.10) (4020.96) (3095.16) (4898.38) (6915.12) (12,208.71)

Gulf of Mexico mooring Gulf are affected by the Ultradeep 1494.42 1048.77 1338.57 550.26 2567.42 4614.34 4922.04
cable in 11,800ft of water presence of the loop current (last month) (1494.42) (1048.77) (1338.57) (550.26) (2688.58) (4493.19) (4922.04)

suggest the current and and the loop current eddies’ Total 30,888.23 27,001.97 21,483.67 36,108.55 42,854.02 63,831.54 83,154.94
eddies that dominate upper- (OE February 2004). All reserves figures are proven plus probable.

layer circulation there also Russell McCulley

20 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

OE_M_4_Bisso_FP.indd 1 27/1/10 15:48:03
G&G NOTEBOOK
‘The oil industry clearly remains largely unconvinced
that the moment has come to focus serious money and
resources unlocking the Arctic’s offshore hydrocarbon
riches, not that anyone doubts it will happen.’

by Andrew McBarnet
[email protected]

Circling around
Arctic prospects
Offshore Arctic seismic exploration is not getting quite such a
cold reception these days. Andrew McBarnet explains why.

rozen assets take on a whole of undiscovered, technically recoverable basis, undiscovered natural gas is

F new meaning when it comes to

considering the purportedly huge
oil and gas reserves in the Arctic Ocean
oil, 1670 trillion cubic feet of technically
recoverable natural gas, and 44 billion
barrels of technically recoverable natural
estimated to be three times more
abundant than oil in the Arctic, and more
than 70% of the undiscovered natural
region. The prize is potentially enormous gas liquids in 25 geologically defined gas will be found in three provinces – the
but so are the obstacles blocking the areas thought to have potential for West Siberian Basin, the East Barents
route to successful exploitation, of which petroleum. Basins and Arctic Alaska.
the environmental/climate challenges, As such the resources would account As of 2008, exploration for petroleum
available technology and the remoteness for about 22% of the undiscovered, had already resulted in the discovery of
from markets are the most obvious. technically recoverable resources in the more than 400 oil and gas fields north
The region as a whole also has some world. The Arctic on these estimates of the Arctic Circle, according to USGS,
fundamental sovereignty issues to resolve is said to account for about 13% of the made up of approximately 40 billion
between the competing claims of Russia, undiscovered oil, 30% of the undiscovered barrels of oil, more than 1100 trillion
the USA, Canada, Denmark and Norway natural gas, and 20% of the undiscovered cubic feet of gas, and 8.5 billion barrels of
which could take decades to sort out. natural gas liquids in the world. Some natural gas liquids.
Estimates of Arctic oil and gas 84% of the estimated resources are The USGS 2008 best guesses for the
resources almost always take their expected to occur offshore. More than Arctic were lower than its previous
cue from the US Geological Survey half of the undiscovered oil resources are figures issued in 2000, and followed a
Circum-Arctic Resource Appraisal, most likely to be located in just three geologic more sobering second opinion from
recently updated in 2008. It suggested provinces − Arctic Alaska, the Amerasia Wood Mackenzie and Fugro-Robertson
that the area north of the Arctic Circle Basin, and the East Greenland Rift in a 2006 study Future of the Arctic. The
contains an estimated 90 billion barrels Basins, says USGS. On an oil-equivalency headline message was that the US could

22 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 G&G NOTEBOOK
OCTIO Exploration’s has come to focus serious money and efforts to resuscitate industry enthusiasm
Geo Explorer in the resources unlocking the Arctic’s offshore in hydrocarbons prospects with its own
ice flows offshore hydrocarbon riches, not that anyone studies offshore Greenland to the extent
Greenland. doubts it will happen. One cynical that Statoil drilled a well (sub-Arctic) in
view is that the improving access to 2000.
the maritime Arctic afforded by the A number of exploration licences
impact of global warming on the ice pack have been awarded since with EnCana,
could be the determining factor in the ExxonMobil, Chevron, Dong, Husky
timing of the investment needed. The Energy and Cairn among the recipients.
oil companies had a good look in the Greenland is probably pushing its case
1970s and 1980s with seismic and drilling for unusually strong economic and
programmes and decided to spend their political reasons tied up with the tiny
money elsewhere. Because of the lack population’s desire for full independence
of infrastructure and market access, from Denmark, which would certainly
probably only a series of huge finds would be made easier if hydrocarbon revenues
persuade companies to change their were forthcoming.
mind. Devon Energy knows to its cost. In The response to recent licensing
2005 the company started an expensive initiatives has been patchy. Undeterred
drilling programme in Canada’s Beaufort the authorities are going ahead with
Sea hoping to find natural gas reserves; licensing rounds scheduled for 2010
but the Pak-toa C-60 well came up in the Baffin Bay area covering some
instead with a substantial oil discovery, 151,000km2 and rounds in 2012/13
estimated at roughly 240 million barrels, covering areas offshore Northeast
which because of its location could Greenland (the Greenland Sea). Thirteen
remain uneconomic to develop for many international oil companies are said to
years to come. have registered interest to be operators
Despite overall caution about major in the 2010 round, which appears to be a
Arctic offshore exploitation any time good omen. Greenland authorities have
soon, Wood Mackenzie/Fugro-Robertson been dangling the prize suggested by the
advised that there was ‘great potential most recent USGS estimates. The figure
for individual oil and gas companies with for undiscovered oil and gas resources
the advanced technology, money and in the subsurface in the sea north of the
time to develop the challenging resources Arctic Circle between west Greenland
and build the infrastructure required to and eastern Canada, which includes the
no longer consider the Arctic as a transport it’. Baffin Bay licensing area, is more than
long-term strategic energy supply source. 18 billion barrels of oil equivalents.
The report concluded that the Arctic First start Applicants for the first of the 2012
potential was significantly less than If there is going to be an early licensing rounds will have to be members
previous assessments suggested with breakthrough, the betting must be of, or partners with, the Kanumas
much less oil and more gas likely to be offshore Greenland where there has been Group, which is made up of most of
the mix. It could only confirm one quarter an unmistakeable build up of activity in the industry’s heavy hitters, such as
of the oil volumes previously assessed the last decade. In the early 1970s almost ExxonMobil, Statoil, BP, Japan National
in key North American and Greenland 21,000 line km of reflection seismic data Oil Corporation (JNOC), Chevron and
basins and insisted that the Arctic would were acquired. Then in 1975, six groups Shell. The publicly owned company
turn out to be a gas province with 85% headed by Amoco, Chevron, Arco, Mobil, Nunaoil is also a member.
of the discovered resource and 74% of Total and Ultramar were granted licences Among oil companies the pace of
the exploration potential being gas. and in the following two years, five offshore activity is being set by Cairn
Under the most optimistic case Wood exploratory wells (two low Arctic and Energy, the niche player which was ahead
Mackenzie/Fugro-Robertson projected three sub-Arctic) were drilled. Interest in of the field in spotting opportunities
that production from the Arctic would further exploration died when the wells offshore India. Subsidiary Capricorn Oil
contribute some 4.6mmboe/d liquids turned out to be dry and oil company was awarded six licences in 2008, and a
and 9.7mmboe/d gas at peak, with the operations were diverted to more year earlier than expected the company
proportion of production from US basins accessible offshore provinces, like the is bringing in two semisubmersibles,
lower than previously anticipated. north west European continental shelf. Stena Forth and Stena Don, for a drilling
The oil industry clearly remains In the late 1990s the Geological Survey programme in the Disko West area,
largely unconvinced that the moment of Denmark & Greenland (GEUS) began offshore Western Greenland. > overleaf

oe.oilonline.com OFFSHORE ENGINEER | february 2010 23

G&G NOTEBOOK
Greenland licensing round are known,
there is bound to be survey work required
to meet licence commitments. The US
Department of the Interior’s Minerals
Management Service (MMS) has a
number of lease sales north of Alaska in
the Chukchi and Beaufort Seas planned
between now and 2012 which may lead
to seismic if sensitive environmental
Polarcus Asima will be first of the issues can be over overcome. Norway PGS’ Atlantic Explorer conducted the first
company’s ICE-1A class. is gradually moving north with its 3D seismic survey offshore Greenland.
exploration programmes in the Barents
Progress or otherwise of exploration Sea, and Canada seems likely to consider regional geology and less explored basins
offshore Greenland depends in the further Arctic-related exploration in the of the Arctic. The survey covered the
first instance on the results of new not too distant future. Meanwhile there south Danmarkshavn Basin, Thetis Basin
data acquisition by the marine seismic have been mixed messages of late about and the northern section of the northeast
industry which is beginning to test the extent to which Russia might invite Greenland volcanic province and used a
the limits of carrying out surveys with international oil companies to assist Polar Class ice-breaker vessel to clear the
towed streamers in Arctic ice conditions. in the appraisal of its Arctic resources, floating ice ahead of the seismic vessel,
By far the biggest contributor of data believed to be massive, mainly gas. believed to be a first.
in recent years has been TGS-Nopec It all adds up to potential Purpose-built modifications were
Geophysical Company, the multi-client opportunities. The emerging Dubai-based made to fend off ice from the in-sea
seismic acquisition company. It has stuck marine seismic contractor Polarcus is recording equipment. In addition, OCTIO
to its guns in believing that Greenland one company which plans to exploit equipped Geo Explorer with virtually the
would eventually come back on to the them. It has even signalled its intent full suite of Intelligent Acquisition [IA]
radar of oil exploration companies. by including Polar in its name and is marine technology developed by ION
This year it will embark on its eleventh already marketing its vessels as the best Geophysical, GTX’s parent company to
year of consecutive 2D multi-client equipped for Arctic operations. Until help image under the polar ice in what
seismic programmes. As a result the someone comes up with a completely is a notoriously difficult area for towed
company which has worked closely revolutionary marine acquisition method streamer operations. This included
with the Greenland authorities boasts as cost effective as towed streamers, ION’s recently introduced DigiStreamer,
the best modern geoscientific database the technical challenge for seismic designed to provide continuous recording
for offshore Greenland. By the end of companies such as Polarcus is to find capability and an environmentally
the 2009 season its data library included ways of extending the period in which friendly, low-noise solid cable that
approximately 90,000km of 2D seismic they can operate in Arctic waters with enables operations in a wider weather
data and 300,000km of aeromagnetic and towed cable. In addition the permitting window. Also deployed were DigiFin,
gravity data in the Greenland area. authorities have to be satisfied that their DigiBird, and the Orca command and
Last year TGS acquired 9600km increasingly stringent environmental control system to actively steer around
of 2D seismic data off the west coast and safety requirements for seismic and beneath any ice encountered. During
of Greenland in the Baffin Bay. The operations are met. the seven week survey OCTIO says that
survey was intended to infill previous Polarcus believes that its customised downtime for the whole operation was
2D programmes to provide a continuous vessels will have an edge. For example, an impressive 4%, and early data quality
regional grid of data designed to assist the soon to be launched Polarcus Asima, reports are believed to be favourable. It is
in the evaluation of the Baffin Bay area is being built to DNV ICE-1A certifying now at work developing a system which
prior to the major bid round closing in standards equipped with, among other would allow for multiple towed streamer
May 2010. things, a double hull for vessel integrity 3D seismic acquisition in similar
TGS has not been particularly and mitigation of pollution in the event conditions, but admits this could be
adventurous from a technical point of of a hull rupture. It will tow up to several years into the future. Meantime
view in its Greenland surveys. That’s to 12 solid streamers, which are best for the company expects more takers for its
say, it has simply made use of the short, high quality data acquisition and least current configuration.
late summer weather window when the threat to the environment compared with A first 3D seismic survey offshore
ice breaks up sufficiently to operate. Its the liquid filled alternative. Numerous Greenland but not in such an extreme
technique has been to deploy a fairly other winterisation measures have been environment was in fact acquired last year
conventional single long offset 2D towed incorporated to enable its vessels to for Canadian company Husky Energy by
streamer in order to resolve some of the arrive earlier at survey locations and the Petroleum GeoServices vessel Atlantic
imaging issues in a region characterised leave later providing a more cost effective Explorer towing six 7000m cables. It was a
by volcanic rock. This is not to understate window compared with less well equipped chance for PGS to prove the benefits of its
the logistical challenges in operating in competitors. new GeoStreamer design in terms of being
such remote and potentially hazardous The most adventurous approach to able to tow deeper thereby avoiding flows of
conditions which TGS has successfully extending actual seismic operations sea ice, handle harsher sea conditions and
overcome. in waters complicated by free ice was thus extend the survey window.
A number of the marine seismic demonstrated last year by OCTIO One thing that can be said about these
companies are beginning to acknowledge Exploration’s Geo Explorer. Recently various efforts being made to improve
that the search for Arctic hydrocarbon upgraded to ICE-1A standard, the vessel the technology and logistics of seismic
reserves, not just off Greenland, could carried out a 5300km 2D seismic survey off exploration in offshore Arctic regions
present a significant opportunity and north east Greenland. This was the latest is that they may help to overcome oil
as a result are beginning to polish their addition to GXT’s ArcticSPAN multi-client company reluctance to at least revisit
credentials. Once the results of the programme designed to understand the some vast frozen assets. OE

24 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

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BUSINESS
LEFT TO RIGHT:
Fluor’s subsea
LNG pipeline
configuration,
cryogenic pipeline
test facility with
flowline LNG, and
cryogenic pipeline
end manifold and
riser for stress
management.

Back to subsea’s
used for LNG tanks. Prescott says the
two companies worked together for five
years to develop the 9 nickel pipeline
manufacturing system needed to make

blue skies the subsea LNG pipeline. ‘The advantage

of this 9 nickel over the 36 nickel is that
it’s stronger. It gives us toughness for the
pipeline,’ he says. That extra strength
Blue sky thinking and a bunch of new patents have in recent
happens even when the alloy gets colder,
years heralded Fluor’s return with a vengeance to the subsea he adds.
technology arena after a near two-decade lull. Jennifer Fluor looked to the issues surrounding
Pallanich talks to Fluor Offshore Solutions technology director the US National Aeronautics & Space
Administration operational use of
Neal Prescott about the company’s latest offerings and initiatives. vacuum insulated cryogenic pipelines
003 was a year of returns for Fluor: there has been no need, Prescott notes. and recruited industry experts who

2 the company re-dedicated itself to

the subsea world with the creation
of a specialist division, and it brought oil
Normally, LNG is transferred onshore
or through lines installed on trestles
above water. One of the most exciting
were familiar with the work on vacuum
pipelines. ‘It became pretty obvious
that we needed to do something that
& gas sector veteran Neal Prescott – an developments since FOS formed, Prescott would cut down the operation and
engineer well versed in subsea, offshore says, is the patenting of an LNG subsea maintenance issues,’ Prescott says. Fluor
infrastructure, production and drilling pipeline in 2004. also worked with Cabot Corporation
matters – back to run it. The company has some history in on a high-efficiency thermal insulation
Prescott was originally a component of dealing with cryogenic products. In the expansion pack system featuring Nanogel
the Fluor Ocean Services team from its 1970s, Fluor was involved in a gasification technology, which allows the use of a
1968 inception with five people until his project in Saudi Arabia; Prescott, pipe-in-pipe design, sidestepping the need
mid-1980s departure from the company. involved with the project, said the to have a vacuum.
Following his return, the subsea division proposed solution involving the world’s He says a DNV comparison of the
began concentrating on deepwater longest trestle structure was expensive subsea LNG pipeline to a trestle pipeline
technology solutions that might be needed and suggested a subsea cryogenic line. indicated the subsea line carried less
in the industry as part of a blue sky effort. ‘They told me I was too young and didn’t risk. ‘That confirmed what I had thought
‘We identified about 40 topics and know what I was talking about,’ he for the last 30 years,’ Prescott says.
narrowed it down to six,’ Prescott says. recalls. Now, he says, when someone With the design’s ‘fitness for service’
The process was straight-forward, he mentioned wanting to install an LNG certification now finalized with ABS and
says: ‘We look at an area where we pipeline on a long trestle and he suggested DNV, the concept is considered ready for
feel there is a need that exists. We do a subsea LNG pipeline, ‘they told me I commercial use. Fluor is ‘now considered
a background check on what solutions was too old and didn’t know what I was one of the prime companies that can offer
there are out there and we come up with talking about.’ that solution,’ Prescott notes.
one we feel could be competitive.’ Engineering a subsea LNG pipeline Fluor has talked with three companies
The group has since filed for patents on meant trying out several solutions. While about using the technology at various
a number of its solutions, ranging from 36 nickel may have been an obvious LNG terminals, he says. In one case, he
a subsea LNG pipeline to an intelligent steel choice for the pipe for its minimal adds, Fluor has been selected – ‘if the
choke for deepwater production control to expansion and contraction properties, project does go forward.’
retrofitting components for hybrid riser Prescott says, nickel prices were rising. Production chokes got some attention,
towers, among others. A German company, EisenBäu Kramer, Prescott says, with the company
To date, no subsea LNG pipeline has was able to make high-strength 9 nickel patenting a dual choke for HPHT
been installed, due largely to the fact steel alloy pipe from plate that has been deepwater reservoir production and
an intelligent choke – one that uses a
EisenBäu Kramer’s multiphase flow meter – is also getting
9 nickel cryogenic interest, he says. Beyond that, the
pipe. company is looking to clean up produced
fluids through some subsea separation
efforts.
‘We’re taking that concept of subsea
separation to the next step, which is to
get the separated material, like water
and sand . . . to the point where it’s clean

26 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 BUSINESS
‘We’re taking that concept of subsea
separation and taking it to the next step,
which is to get the separated material, like
water and sand … to the point where it’s
clean enough to release it to the sea.’
Neal Prescott
Cabot’s Nanogel Expansion-Pack
high-efficiency Aerogel insulation system.

enough to release it to the sea,’ Prescott floater. There’s been some problems in Global providing equipment. ‘We see
says. Being able to discharge cleaned the recent past where the use of flexible that as a growth market and one that
water directly to sea is a keen pursuit lines to go up to a floater have met with we want to focus our attention on,’ he
in the industry because it will reduce failure,’ he says. ‘You have to address says. In January the UK’s Crown Estate
the floater and pipeline sizes needed as the weight and the buoyancy. You let awarded Fluor and Scottish & Southern
well as minimize pumping, he notes, and the water work for you by buoying Energy (SSE) exclusive rights to develop
Research Partnership to Secure Energy everything.’ the Round 3 offshore wind farm zone
for America (RPSEA) is looking into the Additionally, he says, Fluor’s solution in the Firth of Forth, off the coast of
technology. Fluor is working on a patent relies on existing technology applied in Scotland (see page 56). This same Fluor-
for a third stage polisher for subsea a different manner. The trick, according SSE partnership is developing the 500MW
processing in ultra deepwater. ‘It will to Prescott, was to modify existing ROV Greater Gabbard wind farm off the coast
achieve a water quality level that would clamps, connectors, jumper systems, of Suffolk, which is currently the first of
be permissible to inject back into the sea etc, that could be modified to achieve the Round 2 projects under construction
without an environmental issue,’ he says. Fluor’s goals. It can be maintained, he and is on schedule for completion in 2012.
The new design builds on an existing adds, by disassembling it. The system Fluor also has been working on a
subsea separation system, used by Fluor can be installed at a lesser cost than what carbon capture system that will sequester
in the 1985 Highlander field tieback exists in the market, he adds. Part of the the carbon in the form of liquid CO2
to Tartan field in the North Sea (OE solution lies with connector systems that offshore in a saline aquifer in a zone
July 1985). Fluor and Siemens are now tend to be lighter than normal, he says. below the seabed. ‘This could be a growth
working together to develop systems He expects Fluor will start speaking industry for us, depending on how the
necessary to bring the third stage more openly about the technology in world accepts the discussions going on
polisher and the Fluor subsea separation the upcoming months. The new design about carbon capture,’ Prescott says.
and processing system to fruition. is expected to be commercial in 3Q 2010. The project, he says, will be the world’s
‘The philosophy that we’re following The expected first application would largest for offshore carbon sequestration
will allow the extension of production depend on operational needs in deepwater if it is implemented.
in fields and will allow you to get rid of production centers around the world, he Fluor has also been focused on flow
water,’ Prescott says. says. assurance, especially in deepwater and
Fluor expects the new system to be As most of the world considers Arctic environments. Over the last five
commercial in the near future, and will alternative energy sources and pollution years or so, Prescott says, the company
initially target deepwater production by greenhouse gases. Prescott notes has developed algorithms for predicting
applications where there is a need to Fluor has a patent on wind tower support and controlling hydrates and condensate
minimize or eliminate the footprint of structures. Fluor and Global Industries, slugs. The system predicts hydrate, wax
floating production facilities. he says, have been working together on and slug formation as part of a real-time
A concept study on hybrid riser towers how to best install offshore wind farms monitoring system. ‘We do see the Arctic
for a major oil company around 2000 with Fluor handling engineering and investment intensifying,’ he adds. OE
eventually prompted Fluor to look at how
to retrofit components during the life of
a system, Prescott notes. Historically, he
adds, there has been no easy way to easily
replace components during maintenance.
‘That’s what our patent addresses,’
he says, adding the design is meant to
avoid having anything that could have
an operational issue. Fluor is working
with companies that handle connections
and coatings on the design, he says. ‘The
concept is similar but a little different
than what’s been built in the past. We
tried to answer some of the issues that
surround the overall design flaws that
have been identified in the past.’
Problems have arisen with weight and
the buoyancy needed to hold the tower
up. ‘This is a direction that we’re going. Fluor’s patented deepwater
The deeper that you get, you have to solve Typical subsea slug catcher for intermediate subsea hybrid riser tower concept
the issue of getting the product up to the separation. with removable components.

oe.oilonline.com OFFSHORE ENGINEER | february 2010 27

BUSINESS
‘Seamless business model.’ IPB – a step change
Dominique de Soras in flow assurance
for ultra-deepwater
developments.
Alain Marion

Flexpipe
Lobito, Angola, with a steel umbilical
capacity of 100km – along with spool bases
at Mobile, Alabama; Barra do Riacho,
Brazil; Evanton, UK; Orkanger, Norway;

passion and Dande, Angola.

Reviewing the current subsea market,
Technip’s subsea division president
Dominique de Soras notes that the North
Passionate about the product is how Sea market is down, but the future looks
Technip’s SVP subsea assets and better; the Gulf of Mexico is currently
technologies Alain Marion sums up his steady, but the future looks good; in
Africa there are delays, but Nigeria is
company’s feeling about supplying flexible showing signs of improvement; Egypt
pipe. Meg Chesshyre visited Le Trait, in is still moving; Brazil is steady, but the
Normandy, to see the Flexi France plant in impact of Tupi etc has yet to be felt; and
the Asia Pacific market is also steady
action and hear senior management’s views with deepwater coming.
on upcoming market opportunities and De Soras sees 2010 being a reasonable
current technological trends. year revenue-wise, but not a top one.
Execution-wise it is mainly from backlog.
he workforce at Le Trait comprises He expects the North Sea market to pick

T 950 people, including 650 for the

factory, 110 for the R&D and 85
for the offshore base, explains Flexi
up in the second half of the year, with
more tenders now coming in. The North
Sea saw a higher level of repair and
France CEO Phillippe Enxeriéan. Recent maintenance activity in 2009, but this
additions to the facility, which currently could possibly soften in 2010. Le Trait’s
handles around 50 projects and 100 work is all non-standard and tailor-made,
different pipe structures per year, include stresses de Soras. ‘It is not a sausage
a new 3500t storage carousel and a 400t, or car factory. The more complex the
40m crane. fluid, the more a flexible pipe solution is
Since 1974, Le Trait has produced appropriate.’
over 7000km of risers and flowlines and Technip is a subsea leader in terms
15,000 connectors. Diameters range from of performance, with a robust track
11/2in to 19in ID; pressure can be up to record over the past 10 years, and with
up to 20,000psi; temperature to 130°C and its vertical integration and project
operating depth to 3000m. management capabilities, commitment
According to Enxeriéan, West Africa, to top-of-the-range technology and state-
India and the Middle East comprise 68% of-the-art assets supported by a massive
of Flexi France’s market today, followed investment programme (OE November
by the North Sea (19%), North America 2009) the company wishes to remain
(7%), Asia (5%) and Brazil (1%). ‘Number 1’, says de Soras. The company
In addition to Flexi France, Le Trait, has a subsea staff of 7500 and a permanent
Technip has the Flexibrás’ flexible pipe presence in all key markets (Europe and
manufacturing plant at Vitória, Brazil, Africa 4500, North America 500, Brazil
with a workforce of 1200 and a flexible 200, Asia Pacific 500).
pipe capacity of 380km. The company He cites Tullow Ghana’s Jubilee field
also expects to start up its new Asiaflex as a good example of his company’s
plant in Tanjung Langsat, Malaysia, with ‘seamless business model’. Project
a flexpipe manufacturing capacity of execution for Jubilee’s risers and
150km, at the end of 2010. flowlines involves Technip’s centres in
Technip also has three umbilical Paris, Houston and Africa, with flexpipe
Illusional ‘knot’ of manufacturing locations – Duco in fabrication taking place in Le Trait and
flexible lines in the Newcastle, UK, with a steel/plastic PLET fabrication in the Pori yard in
Flexi France carousels umbilical capacity of 300km; Duco in Finland, and the Deep Blue and Deep
building. Houston, US, with a steel umbilical Pioneer vessels booked to lay the field’s
capacity of 300km, and Angoflex in rigid and flexible flowlines respectively.

28 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 BUSINESS
Deep Pioneer with
portable pipelay system
onboard alongside
the new-look Le Trait
quayside.

Offshore installation is scheduled early offices in Houston, Brazil, Paris, Canada Alain Marion, Technip SVP subsea assets
this year in 1200-1700m water depths. and the UK, with fabrication of buoyancy & technologies, outlines the various
Another current project, fabrication cans, stress joints and suction piles issues and requirements associated with
and installation of hybrid free standing undertaken at Pori and flexible pipe at Le the key flexpipe markets:
riser towers for Petrobras’ Cascade/ Trait. Installation was completed recently z North Sea: corrosive fluids, ageing
Chinook project in the deepwater Gulf of in record 2500-2640m water depths. infrastructure and flow assurance;
Mexico, has an even broader geographical z the Arctic: concerns over materials,
reach, notes de Soras. It involves Flexpipe challenges large diameter riser and winterisation;
engineering teams from offshore and Providing a regional overview of z Gulf of Mexico: ultra-deep water,
subsea divisions from Technip’s technological challenges and trends, HP/HT, hybrid systems;
z Africa/Egypt: large diameters,
A finished integrated ultra-deep water, flow assurance,
production bundle corrosive fluids;
(IPB) being loaded in a z India/Middle East: ultra-deep water,
Le Trait carousel and low cost designs;
(inset) Pazflor IPB z Brazil: flow assurance, ultra-deep
assembly. water, monitoring systems, corrosive
fluids, hybrid systems; and
z Asia Pacific: large diameters, deep
water coming, shallow water risers,
corrosive fluids.
According to Marion, Technip’s subsea
R&D expenditure reached €36 million last
year, 70% of it devoted to flexible pipe
and the remainder to rigid pipe (12%),
umbilicals (7%), hybrid technologies
(6%) and offshore installation (4%).
He cites ultra-deep water (with 3000m
developments now in sight), HP/HT,
corrosive fluids, enhanced recovery
systems and flow assurance as the
industry’s new frontiers and challenges.
Deep immersion tests are currently
underway in the Gulf of Mexico using
Deep Pioneer with the following technical
objectives: qualifying 11in sweet service
flexpipe for 3000m of water; determining
the water depth limit for 11in sour service
flexpipe – 7in sour service is currently
considered okay for 3000m; improving
prediction of lateral buckling of armour
wires; and validating caisson tests.
Marion sees integrated production
bundles (IPB) as a step change in
flow assurance for ultra-deepwater
developments. Integration of gas lift tubes
in the production riser offers definite
benefits, he says, taking advantage of
heat from produced fluid and obviating
the need for extra insulation of the gas
lift lines, with fewer risers and simplified
seabed connection. Following successful
implementation on Total Dalia (OE
August 2007) the IPB technology is now
Million-cycle fatigue testing of prototype being applied on another major project
HP/HT flexible lines. A loaded carousel aboard Deep Pioneer. offshore Angola, Pazflor. OE

oe.oilonline.com OFFSHORE ENGINEER | february 2010 29

WEST AFRICA

Azurite puts it all together

In the deep waters offshore Congo, the Azurite floating facility marries drilling and production
systems – functions that are typically carried out with separate and dedicated units. The world-first
floating, production, drilling, storage and offloading (FPDSO) vessel, brought onstream last August,
was Murphy’s solution for early production while final wells in the field were still being drilled.
Jennifer Pallanich checks project progress.

n 2006 as Murphy evaluated plans Paul Illingworth, SVP for business take these oil tankers and cut these huge

I for producing the Azurite field, the

challenge was to bring oil onstream
as quickly as possible without spending
development, says. ‘We had no idea if it
could be done until we had done some
serious engineering.
holes in them. There was no rule that tells
you how to cut a 9m by 7m hole through
the center of the hull,’ Illingworth notes.
much capital at the outset, says Ken ‘The biggest challenge was just the As the owner of the vessel, Prosafe
Hampshire, Murphy’s manager for the fact that it had never been done before,’ chose to have DNV class the unit.
field’s development. It would be a bonus Illingworth says. ‘It was literally back of ‘DNV became an integral part of the
to do so while carrying out a portion of the cigarette packet engineering. We had engineering team,’ Illingworth says.
the field’s drilling program. A traditional a blank piece of paper, and we basically The society had two sets of rules – one
drilling rig wouldn’t do, he says: ‘Rig had to start from scratch.’ for drilling rigs and one for production
rates were just skyrocketing at that time.’ In 2007, Murphy looked up Nabors, vessels – ‘that didn’t fully integrate, but
The operating company briefly which had put rigs on spars in the past, as integrated well enough for our purposes,’
considered using a spar to produce with the Boomvang development. It came Illingworth says. The rules were, he adds,
Azurite in the Mer Profonde Sud block off down to figuring out how to safely put a interpreted in a manner that allowed the
the Republic of the Congo, ‘but we didn’t drilling rig on the FPSO. At one point, project to go forward.
feel the reserves justified putting a spar says Padira Reddy, SVP of engineering Integrating the safety rules governing
out there,’ Hampshire says. At the heart at Nabors International Management, production and drilling caused a few
of it, he adds, Murphy wanted a mobile someone recommended putting it over hiccups. ‘The rules did change because
drilling and production solution. ‘We a 30ft by 30ft moonpool. ‘From there it it’s the world’s first,’ Hampshire notes. He
wanted to start making money while we started, the basic concept.’ says combining the safety systems took
were doing the rest of the drilling.’ The VLCC Europe, built in 1988, was some effort, such as one common system
When Murphy was negotiating with chosen for the FPSO conversion, which for gas and fire detection. One reason
Prosafe over the FPSO lease contract Keppel carried out. ‘We had to cut a huge is the dueling philosophies associated
in 2006, the operator inquired about hole right in the middle of this VLCC, with different tasks. It’s not standard,
the possibility of putting a deepwater which was where the moonpool was going Hampshire notes, for a drilling rig to
drilling rig aboard the FPSO, Prosafe’s to go,’ Illingworth says. ‘You just don’t shut down power when there’s a problem.

30 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 WEST AFRICA
‘You just don’t take these oil tankers and cut these huge
holes in them. There was no rule that tells you how to
cut a 9m by 7m hole through the center of the hull.’
Paul Illingworth, Prosafe

Instead, maintaining well control is a assessments and experience to generate CFD analysis to model vapor cloud
priority on a rig. On an FPSO, however, practical engineering solutions, was explosions, Risknology showed the blast
‘they have gas detection and they want all founded in 2005 as successor to load on the drilling cabin would be lower
power shut down,’ Hampshire says about AJ Wolford & Associates, which formed than the conservative levels set through
the mission to avoid sparks when ‘you’re in 2001. ‘There were philosophical the traditional safety analysis, he says.
sitting on potentially a million barrels of differences on what powered equipment ‘It did avoid a costly redesign and costly
oil’. was allowed to continue running in the delays on sail out,’ Stahl says.
Murphy needed to manage well face of a confirmed release,’ Wolford says. Doris Engineering helped with some of
control in a blackout situation. One The key was to ensure there was both the engineering work and the interface
solution came in the form of a system adequate safety and redundancy for every management for the design, construction,
that allowed lowering of the blocks scenario anticipated on the rig, he adds. and installation part of the project.
manually, Hampshire says. Nabors and ‘We did some analysis that addressed
their draw works supplier developed a the potential scenarios emanating Moving targets
backup pneumatic system that allows from the production side that would Prosafe ‘went into the engineering with
manual control of the draw works brake. allow conditional shutdowns of certain very limited information,’ Illingworth
If the vessel has an emergency shutdown equipment’ such as drawworks or mud says. The premise of the engineering
situation that requires a power shutdown pumps while still allowing equipment work was to allow space on the deck for
while the rig is tripping, the driller can serving downhole and BOP activities the drilling package and move forward
manually lower the blocks with this access to power, Wolford says. with the conversion work, he adds. Once
system so that the floor crew can safely Another element that Risknology the VLCC had been converted into an
install a safety valve on the drillpipe. worked on was the blast analysis for the FPSO, it was time to allow Nabors to
Risknology weighed in on some of drilling cabin. Some scenarios from the turn the vessel into an FPDSO. ‘Now
the risk assessments for managing production side were shown to affect that is not the ideal way to do things,’
the emergency shutdown situation for the windows in the drilling cabin with Illingworth says, noting the order of
the combined drilling and production high overpressures, says Mike Stahl, work on the vessel probably added two or
activities. The company, which uses risk Risknology’s VP of operations. By using three months to the overall conversion

oe.oilonline.com OFFSHORE ENGINEER | february 2010 31

WEST AFRICA
‘We like the idea. We’re not afraid ‘The biggest challenge was meeting DNV
specifications because we didn’t start our
to go out and do this again.’ project with DNV specifications,’ Reddy
Ken Hampshire, Murphy says.
Under DNV requirements, the rig
couldn’t be placed directly on the main
deck, so 15ft panels were used on the
main deck to elevate the rig and its
components. ‘We actually created more
space for them to use,’ Reddy says about
the panel solution. Nabors and William
Jacob Management collaborated on the
schedule. Since the FPDSO was the first dismantled. Nabors opted to build it like a rig design with WJM focused on pipe and
of its kind, he adds, it was a known risk of land rig, Reddy says, but with the motion deck design.
not starting with enough information at compensator. These panels, along with the drilling
the outset. Reddy said initially Nabors designed rig, were built at in Batam, Indonesia. In
‘The moonpool size changed as we the rig to API standards, but the Prosafe- Singapore, Keppel Benoit fully assembled
developed the design,’ Illingworth says. owned vessel was being classed by DNV. and installed the derrick on the FPDSO in
Because engineering work began on the
vessel before the drilling package was Nabors built Rig 804 like
finalized, Prosafe was working without a land rig but added a
details like how large the moonpool would motion compensator.
need to be. As a result, Illingworth says,
Prosafe estimated the moonpool would be
about 5m by 6m. Factoring in hookload
details later obtained from Nabors along
with vessel movements and excursion
requirements meant Prosafe needed to
jump the moonpool size up to about 9m by
7m. The pre-conversion vessel, 330m long
by 50m wide, featured center tanks and
wing tanks.
‘We knew we were going to have to
put the moonpool in one of the center
tanks,’ which normally holds the cargo,
Illingworth says. As a result, the unit
would lose some oil storage capacity,
dropping from 1.8 million barrels to 1.4
million barrels. In the end, Prosafe opted
to place the moonpool in the the No.5
center tank.
Once the location for the rig’s
placement was selected, Nabors’ Reddy
says, the next step was to provide motion
compensation on the floating unit.
The Nabors team opted against two of
the three likely solutions – with the
drawworks and atop the derrick – and
went with an inline motion compensator
to be provided by NOV. Reddy says the
team opted against motion compensation
atop the derrick because there would
be no crane available to remove it and
against the drawworks because of the
long-lead nature of the item. Using the
in-line compensator, he says, would allow
dismantling of the unit with the crane
onboard.
In June 2007, Nabors received a letter of
intent from Murphy, and on the strength
of that ordered the drawworks and
motion compensator, both of which are
long-lead items.
Rig 804, intended to work on the
Azurite FPDSO for about a year and a half
to complete the drilling program at the
Azurite field, would need to be something
that could be used elsewhere after being

32 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

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WEST AFRICA
‘We actually created more space Prosafe can use the Prosafe engineering
as it chooses – and is selling the idea
for them to use.’ of the FPSO with the moonpool and
Padira Reddy, Nabors room for a derrick – but the Nabors rig
work belongs to Murphy and Nabors,
Illingworth notes.
For now, he adds, Prosafe isn’t
putting too much thought into what a
drilling package should look like on
Serial No.2.
Prosafe has not yet been asked to bid
on another FPDSO, Illingworth says,
4Q 2008, Reddy said. output at the first two wells. ‘The goal ‘but there’s been a huge amount of
The spread-moored Azurite FPDSO was here is to have plateau of 40,000b/d for a interest from numerous oil companies
installed in March 2009 in 1400m of water couple of years,’ Hampshire says of the with regards to the FPDSO idea. That’s
and began drilling activities in June. On field where production is expected for what we’re working on at the moment.’
9 August 2009, the game changed, and the about 15 years. The company has identified over
FPDSO began carrying out dual drilling FMC provided the central 10-well 60 projects coming up in which the
and production activities. Until then, manifold, which accommodates six FPDSO technology would be applicable,
Hampshire noted, DNV had allowed the producers and four water injectors. The Illingworth says.
rig to function simply as a drilling rig and FPDSO is using gas for power or flaring Those projects would need to meet
not a combined drilling and production as needed. Because of the reservoir’s low three fairly significant criteria posed by
facility. gas-to-oil ratio, the need to flare is low, the drilling activities: a field where the
Prosafe is leasing the FPDSO to Hampshire says. reservoir can be accessed from a single
Murphy under a seven-year contract Some of the wells are smart wells, and location (within a 50m-radius) through
with eight optional one-year renewals. some are standard wells. directional drilling, a field with limited
In general, Hampshire says, Murphy Framo supplied two multiphase pumps, areal extent on the seabed and a water
believes the FPDSO has been performing and Technip supplied the 8in risers and depth ranging from 800m to about 2000m
as expected. umbilical. due to the riser system and bottom of the
Drilling began in June 2009 and is moonpool. Such fields would likely exist
The field expected to continue into 4Q 2010. Once in Brazil, West Africa and the Far East,
Murphy is developing Azurite’s two the drilling is complete, ‘we have the he adds.
pay sections with six producing wells ability to take the rig off and let it become Environmental conditions would also
and four injectors, with the wells in a standard FPSO with a big hole in be a consideration.
the Western Fault block targeted in the the middle of it,’ Hampshire says. The ‘It could stay out in hurricane force
first phase of the drilling. The first well company is evaluating options, including winds, but it wouldn’t be able to drill,
onstream has been ‘doing really good,’ developing the Turquoise development in obviously,’ Illingworth says.
producing about 15,000b/d. A second well the same area with the FPDSO. ‘We like Hampshire says: ‘With this concept,
is due onstream early this year (2010). the idea’ of the FPDSO, Hampshire says. you really wouldn’t want to drill
When the third well goes onstream in ‘We’re not afraid to go out and do this exploratory wells. It’s for development,
February, Murphy plans to back off again.’ and it’s for fields of the right size.’ OE

On 9 August 2009, the Azurite field Rig specifications

became the site of the first drilling Derrick 170ft x 40ft x 40ft,
work performed from an FPDSO. 89ft racking board
Drawworks 3000HP x 15/8in wireline
Mud storage 8 tanks 750 barrels and
1 tank 500 barrels;
6500 barrels total capacity
Mud processing 4 shakers, 1 mud cleaner,
1 centrifuge, 1 cuttings dryer
Mud pumping 3 1600HP triplex,
71/2in x 12in x 5000psi

FPDSO specifications
Processing capacity 60,000b/d of fluids,
40,000b/d of oil,
30,000b/d of produced water,
17mmcf/d of gas
Storage capacity 1.4mmb
Injection capacity 60,000b/d of water
Dwt 259,999t
Length 311.77m
Width 56m
Depth 39.5m
Moonpool 9m by 7m

34 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

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OE_M_4_Oceanology_FP.indd 1 27/1/10 15:39:09

GULF OF MEXICO
‘A solution like this adds plenty of ‘It’s comforting to say I’m
reliability and flexibility to power 63 miles offshore and not
generators in this area.’ along the coastline, five
German Castro, Port Dolphin Energy or ten miles from your
community.’
Joe Berno, Torp Terminal

But two operators are proceeding

Deepwater LNG double with plans to establish LNG terminals

in the Gulf of Mexico. Port Dolphin
Energy, a subsidiary of Heogh LNG of

on the horizon Norway, received final permission late

last year to establish an import facility
28 miles offshore Tampa, Florida.
And an application is pending for the
Lower prices, weak demand and competition from vast onshore shale plays helped
Bienville Offshore Energy Terminal,
put a damper on offshore liquefied natural gas terminal projects in the Gulf of Mexico. a regasification facility off the coast of
Russell McCulley talks to companies that are bucking the trend and pushing Alabama. Bienville is a project of Torp
through with plans for deepwater LNG ports. Terminal, a subsidiary of privately held
Norwegian company Torp LNG, which
ot so long ago, when the world expanded LNG importing capacity cooled is also developing a receiving terminal

N economy was humming and

growing energy demand seemed
assured, there was considerable interest
about the same time that US shale gas
plays, and the technology necessary to
exploit them, began to heat up, raising
offshore Italy.
Torp’s proposal includes a floating
regasification unit using a closed-loop
in the US for the installation of liquefied the prospect of large domestic reserves. ambient air vaporization system located
natural gas (LNG) terminals off the A tanking world economy further 63 miles offshore Alabama in about 450ft
nation’s coast. Yet to date, only two complicated the financial case to be made of water. For offloading, the terminal will
have been built – Excelerate Energy’s for offshore LNG ports. Gulf Gateway, use the HiLoad terminal, an unmanned
Northeast Gateway, offshore Boston, and completed in 2005 with a peak capacity floating ‘forklift’ with three thrusters
its Gulf Gateway Energy Bridge of 690mmcf/d, has been dormant since that can attach to the bottom and side
(OE April 2005), a submerged turret Hurricane Ike damaged the offshore of an LNG carrier. The technology was
loading buoy system offshore Louisiana, pipeline infrastructure in 2008. Excelerate originally developed by Remora, which
which is operational but not in use – senior VP operations Capt Mark Lane like Torp is part of the Norwegian Hitec
while Suez LNG’s Neptune project ten says ‘better market access into the Industries group.
miles off the coast of Massachusetts domestic natural gas distribution system’ Torp had initially proposed an ‘open
is nearing completion. In all, the US through the Northeast Gateway terminal loop’ regasification system for the
Maritime Administration, also known was also a factor in the company’s Bienville project, but withdrew the
as MARAD, has approved eight of 16 decision to let the Gulf of Mexico license application in October 2008 after
applications for deepwater LNG offshore installation remain inactive for now. Alabama governor Bob Riley and activists
port licenses. Prospects appear to have
dimmed, however, as a number of
operators have withdrawn plans for LNG
terminals or put them on indefinite hold.
Shell subsidiary Gulf Landing last year
surrendered a deepwater port license
for a proposed gravity-based structure
offshore Louisiana; Freeport McMoRan’s
application for the Main Pass Energy Hub
has been held up because of financing
issues; Chevron pulled out of the planned
Port Pelican deepwater port in 2005,
opting instead to increase its capacity at
Cheniere Energy’s onshore Sabine Pass
LNG terminal from 700mmcf/d to 1bcf/d.
Also in 2005, ExxonMobil withdrew
its application for the proposed Pearl
Crossing facility offshore Louisiana; the
following year, ConocoPhillips formally
bowed out of the Beacon Port project ABOVE: Artist’s impression of proposed Port Dolphin installation in around 100ft of
offshore Louisiana and the Compass Port water offshore Tampa Bay, Florida, with shuttle and regasification vessel (SRV).
proposal off the coast of Mississippi and
Alabama. FACING PAGE: The HiLoad floating regas unit at the Bienville facility off Alabama
Not coincidentally, enthusiasm for would remain onsite, but partially submerged when not in use.

36 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 GULF OF MEXICO
The GDF Suez Neptune
(pictured) and another
newbuild SRV to be
delivered this year
will serve the Neptune
LNG port offshore
Massachusetts. Hoegh
may order similar vessels
for Port Dolphin.

voiced concerns about the technology’s Berno points out the company is also something onshore you run into that
possible adverse environmental effects. proposing an alternative method of Nimby issue: not in my back yard,’ Berno
The company resubmitted the application regasification that would bypass the need says. ‘It’s comforting to say I’m 63 miles
last year with blueprints for a completely to circulate intermediate fluid between offshore and not along the coastline, five
floating system featuring closed loop the FRU and the HiLoad. ‘When there’s or ten miles from your community.’
vaporization technology. Torp Terminal an available flexible cryogenic hose, we Torp is targeting Alabama and
CEO Joe Berno says the final hearing for would simply move the LNG straight neighboring Gulf Coast states as its
the permit process should take place early from the LNG carrier over to the ambient primary market, he says. But the Mobile
this year; the company hopes to have a air vaporizers, and rather than circulate Bay location gives the project access to
record of decision in hand by an intermediate fluid through those we’d an extensive network of pipelines that
mid-summer and will then spend a year circulate the LNG and re-gas it at those can get gas to markets throughout the
or more lining up financing and contracts vaporizers,’ he explains. ‘It would be a US, including Florida, where gas-fueled
before construction begins in 2012. more efficient operation, and more simple electricity demands are expected to rise
According to Berno, the facility could be because you’d eliminate one set of hoses over the coming years.
operational as early as 2014. and reduce the size of the vaporizers That demand growth is behind the
Engineers spent more than six months required, because it would be a direct Port Dolphin project, which cleared a key
on the new design, Berno says, and came vaporization instead of an indirect one.’ federal regulatory hurdle last October
up with an ambient air system that with the signing of a record of decision
includes ‘an array of forced-draft ambient Offshore advantages on its deepwater port license application,
air vaporizers on a floating offshore An offshore terminal allows a number paving the way for the installation of
vessel’ to be moored at Bienville. The new of advantages, he says, including easy a deepwater LNG port offshore Tampa
design let Torp avoid ‘the conventionally access for large LNG carriers and Bay. The project, which has the backing
submerged combustion vaporizers, where less regulatory hurdles than bringing of Florida governor Charlie Crist, will
you’re just burning gas to provide heat,’ a carrier into port. There’s also the have a peak capacity of 1.2bcf/d: enough
he says. The floating regasification unit permitting issue: getting new permits gas, the developers say, to meet 15% of
(FRU) will be anchored to the seabed via for onshore terminals is increasingly the state’s energy demand. Hoegh has
a detachable turret mooring system, and difficult on the Gulf Coast, particularly scheduled construction to begin in 2012
will serve as a metering station as well in places like Alabama that have limited and hopes to have the port operational
as provide electrical power, utilities, shoreline, much of which is off-limits to the following year; at the start, Port
safety equipment and crew quarters. Torp development. Environmentalists have Dolphin officials say daily throughput
expects Bienville to have the capacity to also raised concerns about the safety will be 400mmcf/d and ramp up to a daily
process 1.4bcf/d. of LNG operations. ‘Any time you do average of double that figure.
The port will be set up to temporarily
moor two shuttle and regasification
vessels (SRVs) using a submerged turret
loading system with buoys located about
three miles apart. Last November Hoegh
took delivery of the SRV GDF Suez
Neptune from Samsung Heavy industries
and the company has another SRV, the
Suez Cape Ann, scheduled for delivery
in 2Q 2010 from the same shipyard; both
were built specifically for work at the
Neptune LNG port in Massachusetts Bay,
and Port Dolphin has indicated that two
or more newbuild SRVs could be added to
the fleet to serve the Florida site.
Port Dolphin Energy’s project
development manager German Castro
says Hoegh’s LNG vessels, originally
designed to meet Massachusetts’
stringent environmental rules, can
connect to the buoys in wave heights of
up to 12ft and, once connected, can send
out product in wave heights of up to
38ft, ‘which in the Gulf of Mexico, you’re

oe.oilonline.com OFFSHORE ENGINEER | february 2010 37

GULF OF MEXICO
‘A lot of that stuff that’s targeting region has scuttled many LNG projects
that seemed assured a few years ago, he
Alabama and Mississippi has says. ‘When some of these were proposed,
the Florida market in mind.’ even three, four, five, six years ago, we
were up in arms – the US is going to need
Ken Medlock, Rice University LNG! The US is going to need LNG! And I
think it’s safe to say that now the US does
not necessarily need it. It might still get
it, but it doesn’t need it. That’s with our
assumptions, again, that shale gas doesn’t
get majorly derailed. Even if shale gas
slows down, you’re still not going to need
not going to see’. In the event of severe Any new LNG terminal project in the LNG in the sense that the market was
tropical weather – a persistent concern in Gulf of Mexico faces economic hurdles thinking five years ago.
the region – the buoys can be submerged in the current climate, says Rafael ‘So I think for future projects, what
and the vessels removed to safe harbor. McDonald, associate director, global they have to look at is, there’s already a
One of the project’s biggest challenges, gas for IHS Cambridge Energy Research substantial amount of existing capacity
Castro says, was finding the right spot for Associates (IHS Cera). ‘A lot of these that somebody could use,’ McDonald
the project in the gently sloping Gulf. ‘The projects look pretty good on paper, but notes. ‘So if they’re going to start
buoy technology needs to be placed in at you have to compare that with land-based construction and put a bunch of money
least 100ft water depth,’ he says. ‘Finding [terminals], which are already existing,’ into an offshore regas facility, they have
that perfect spot required some intensive he says. ‘Obviously the first question that to have a good idea of where they’re
research and investigation on our side. comes to mind is, is it going to be needed?’ taking that business away from.’
We ended up choosing a location that is Developers can provide the cost of
28 miles south-southwest off the mouth of constructing such a project, he says. ‘But Florida focus
Tampa Bay. It’s perfect for our purposes, in calculating things like rate of return, Florida has become a focus for gas
and at the same time works very well for you have to make assumptions about producers in recent years, with many
minimizing risk concerns related to this the throughput. And that’s where it gets operators in the shale plays looking for
type of project.’ really tricky. Most of our calculations, ways to get product to the Mobile Bay
Port Dolphin ran into a few snags we do it assuming 100% throughput just area, where it can easily be transported
getting permission to run a 36in gas so we can keep it constant throughout. via existing pipelines to utilities in
transmission line from a Y connecting But if you’re making money on a dollars- Florida, says Ken Medlock, a fellow
the two buoys to onshore pipelines per-mmbtu basis, and you’re not sending in energy and resource economics at
that would tie in to the Gulfstream many mmbtu’s through, it’s not going to Rice University’s James A Baker III
Natural Gas System and Tampa Electric be an economic project.’ Institute for Public Policy. ‘There have
Company. The company submitted two Offshore installations, because they been several proposals in the Mobile
separate proposals to modify the pipeline usually have lower up-front capex costs Bay-Pascagoula area,’ he says. ‘A lot of
route before clearing the environmental than land-based terminals and are not that stuff that’s targeting Alabama and
impact phase: the first to ensure that the as dependent on high throughput rates, Mississippi has the Florida market in
project avoided an aquatic preserve, and can make sense in places where demand mind. And one of the nice things that
the second in response to concerns over is ‘extremely seasonal,’ McDonald says. can be said about Florida – if you need to
the possible loss of beach-quality sand That could play well in warm Florida, deliver gas in summer, you need to find a
resources. where energy demand peaks in summer, market that rises in summer.’
A bigger hurdle, perhaps, is finding a unlike colder states that see demand rise Energy-gobbling industries along the
market for LNG in the midst of economic in winter. Gulf Coast have traditionally relied on
turmoil. Castro says Hoegh ‘investigated But ‘events of the last two years, offshore Gulf of Mexico production, which
many places on the east coast of the US’ specifically shale gas developments, have has been in decline, Medlock says. ‘That
and chose Florida because the state has certainly dampened our forecasts for makes that area hungry for imported
no indigenous gas production to speak regas utilization in the United States as sources,’ he says. ‘Now that could be
of, is in the process of converting from a whole,’ he says. ‘Our outlook is slightly imported from a neighboring state, or it
coal to cleaner power generation and is darker than it was a couple of years ago.’ could be imported from an international
expecting significant population growth Excess gas capacity in the Gulf of Mexico location via LNG. But the bottom line is
in coming years. ‘A solution like this
adds plenty of reliability and flexibility to
power generators in this area,’ he says.
With the record of decision in hand,
Port Dolphin recently released a
marketing prospectus seeking contracts
with upstream gas companies. But the
company has ‘no ambition to participate
in the gas transaction,’ says Castro. ‘That
is not our business. Having said that, we
are a company with a very industrious Layout of Torp LNG’s proposed
outlook, and we have a mandate from Bienville Offshore Energy
our upper management and our board to Terminal in 450ft of water with
bring the two or three projects we have on floating regasification unit (FRU),
the table to fruition before we move on to HiLoad and LNG carrier.
other initiatives.’

38 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 Oil / Gas Wells – Onshore, Offshore, Deep Water
Pressure Control / Kick Resolution
Well Recovery Operations
Engineering Services
Risk Management
Well Control Training
Worldwide Response Capability

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OE_M_4_Wee_Wild_FP.indd 1 27/1/10 18:15:18

GULF OF MEXICO

The first HiLoad, developed by Remora,

sailed from Norway in November 2009.

if those industries are going to continue

to thrive there, they are going to have to
find sources of supply that are not native
to that area.’
Blue Dolphin gets down
Nevertheless, he says, ‘over the next
ten to 15 years, I don’t see a whole lot
of opportunity in terms of strong load
factors on [LNG terminals]. I say that
to business
BJ Services’ new stimulation vessel built for deepwater wells, the Blue Dolphin, made
because, if you do start to see a need
to grow LNG imports, there’s a ton a recent stop in Houston on its way to Louisiana, where it will be based while doing
of unused capacity on the Gulf Coast short-term contract work in the Gulf of Mexico. Russell McCulley was on hand for the
already. It is a very physically liquid
welcoming party and follows up with BJ on the vessel’s first weeks on the job.
market’ – if you can get gas to the pipeline
infrastructure, no matter what type chilly wind and steady rain greeted By BJ’s reckoning, the 300ft Blue Dolphin
it is or where it came from, it can be
transported to just about anywhere in the
region. Beyond the next decade or so, he
A employees and clients who showed
up at a dock on the Houston Ship
Channel to get a first-hand look at the
is the largest vessel of its type, capable
of providing 20,000psi working pressure
for wells in the Gulf of Mexico’s Lower
says, ‘a lot depends on what happens on Blue Dolphin. But the dreary weather Tertiary and other deepwater formations.
the regulatory side. If we see really strong wasn’t enough to dampen the celebratory BJ designed Blue Dolphin specifically
carbon abatement policies adopted, then mood, or to keep BJ’s David Dunlap from to service wells in the Lower Tertiary,
you could see natural gas demand take bragging a little. where conditions are marked by long,
a really strong move up. That could ‘This boat is more capable, from a multiple pay zones and high pressure and
actually open the door for some new horsepower standpoint and from a temperature variations. And that’s right
developments.’ pressure standpoint, than any vessel in where the company would like to keep it,
LNG importers’ ‘best hope’, according the Gulf of Mexico today,’ says Dunlap, as much as possible. ‘We tried to predict
to Medlock, ‘is that the coal lobby is executive VP and chief operating officer. where it would be needed,’ Dunlap says.
successful only to the point that they
don’t see their industry shrink, and
kind of hold their breath that no carbon
sequestration technology is proved to
be viable and competitive. Because if it
is, then coal will grow, and that’s at the
expense of everything else.’
Market conditions, as the past couple
of years have shown, can change quickly,
and in unexpected ways; offshore
LNG could be in for a long slog, or the
companies pushing ahead with plans in
the Gulf of Mexico could be rewarded for
their persistence.
Torp Terminal’s Berno says the focus
on greenhouse gas reduction ‘bodes well
for LNG’: the technological challenges
are not as great as wind, solar or nuclear
power, and the resource is abundant. And
it’s crucial for producers to have a range
of markets, including the Gulf Coast, he
says.
‘LNG is one of these things that’s
produced on a regular basis; you always
have to find a home for it, it’s not turned
off, so [operators] look around the world
and see where’s the best place to go. The
US because of its infrastructure and
storage opportunities, is always a market
that’s open.’ OE

40 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 GULF OF MEXICO
The DP2 vessel was designed to Dunlap says Blue Dolphin is versatile BJ Services Gulf Coast regional sales
minimize downtime at deepwater job enough to work elsewhere over its manager Ben Weber says crews had spent
sites. Accommodations for 45 allow projected 25-year lifespan, but for now the previous weeks running trials on the
around-the-clock well stimulation plans call for spot work in the deepwater vessel’s equipment and conducting pump
services; eight skid-mounted 3000 Gulf and at sites along the continental tests. ‘And we should be on our first job
brake horsepower Gorilla fracturing shelf. ‘We don’t see other places where any day now.’
units combined total a potential 23,000 operators are requiring high pressure The vessel is currently working out
hydraulic horsepower and 80b/min and temperature [capability],’ Dunlap of BJ’s facilities in Port Fourchon,
blending rates. It’s the first time, Dunlap says. ‘But it’s just a matter of time.’ Louisiana, where the company has 300ft
says, that 3000hp pumps have been Edison Chouest owns the ship’s hull of dock space. BJ also has port facilities
installed on a stimulation vessel. and will provide crew, while BJ owns in Cameron and Galveston.
Blue Dolphin can store 11,800 barrels the stimulation equipment. Blue Dolphin While Blue Dolphin is capable of work
(1875m3) of fluids or completion brines, has not been signed to any long-term in ultra-deepwater – and could give BJ a
12,600 gallons (47.7m3) raw acid, 6300 gallons contracts as yet, but that’s characteristic leg up on the competition when work in
(23.8m3) solvent and up to 2.75 million of the Gulf market, says Dunlap. ‘The those water depths heats up – the vessel
pounds of proppant above and below deck. Gulf of Mexico is not a market that lends is also suited to smaller jobs in the Gulf of
The enhanced storage capacity and itself to long-term contracts,’ he said, Mexico spot market, Weber says.
expanded accommodations let the vessel because the number of service providers Customers, and potential clients, are
stay on location and minimize downtime operating in the region encourages taking note. ‘[Blue Dolphin] has allowed
for multizone or multiwell operations. customers to shop around. But Blue us to open some doors to customers that
BJ’s stimulation fleet comprises eight Dolphin’s enhanced capabilities ‘ought we weren’t working with before,’ he says.
vessels; in addition to Blue Dolphin, to put us in a very strong position from a ‘Especially in the Lower Tertiary, where
three others are currently in the Gulf of competitive standpoint’. you’re talking travel times of 25 to 35
Mexico, three are on long-term contract By mid-January, the vessel was gearing hours – with rigs costing a million dollars
in Latin America and one is at work in up to go out on its first mission to a a day plus, these operators can’t afford
India. Lower Tertiary well for a major operator. any downtime.’ OE

oe.oilonline.com OFFSHORE ENGINEER | february 2010 41

NORTH SEA
‘They use a lot of ROV thinking
with the umbilical going down
to the seabed, and they have the
control units and power units. You
could call it crossover between an
ROV and a standard drilling rig.’
Tor Inge Tjelta, Statoil

Prod probes Statoil’s

faster than a drillship because there’s
no drillstring in the water. ‘You get your
survey done in a third of the time and
it costs a lot less,’ he says. Then again,

seabed soils he adds, operators often take advantage

of the time savings to have the unit
gather other data, often staying as long
as a drillship would but gathering more
An Australian-designed seabed drilling rig got the thumbs up from Statoil
information.
after completing a challenging geotechnical assignment for the Luva development ‘We do tests that are much closer to
in the Norwegian Sea and has now moved on to West African waters. what is actually going to be happening
Jennifer Pallanich reviews the provenance and performance of the ‘Prod’ system. during the installation process,’
Williamson says.
aking its European debut, Benthic An umbilical from the surface powers and Benthic Geotech’s work – focused

M Geotech’s seabed drilling spread

operated 1300m below the water
line to obtain continuous cores down to
controls this system, which is said to be
unaffected by ship movement once landed
on the seabed.
on the top 100m or so of the seabed – is
aimed at describing in detail the seabed
soil in order to reduce installation risk
100m at Statoil’s Luva field. ‘We really wanted to see, “Can we use by allowing the client to better design
Statoil marine geotechnics and this technology in our soils?”’ Tjelta installation techniques.
geohazards specialist Tor Inge Tjelta explains. ‘One of the advantages of what we do
says his company first started thinking The concern boiled down to the unit’s is we don’t mess the seabed up while
about using such a unit for continuous ability to handle different rock types, as we’re testing,’ Williamson claims. This
coring and testing of downhole soils for boulders are a feature of the shallower often happens with other systems, he
foundation purposes a couple of years water sediments off Norway. ‘When this says, because deepwater soil is very
ago. Carrying out shallow geotechnical rig hits a boulder, it switches to coring,’ soft and heavy testing equipment will
drilling programmes from surface vessels Tjelta says, adding it could handle sink when deployed, thereby changing
raises a number of issues, he says, granite, among other rock types. the composition of seabed. ‘That’s a big
notably the time required to run the pipes According to Benthic Geotech, Prod problem for most traditional technologies.
through the water column and exposure can switch between diamond bit rotary The top few meters is destroyed by every
to weather. drilling, piston sediment sampling and other testing technology,’ he says.
Placing the equipment on the seabed in situ testing in the same hole. To Peter
instead, he adds, makes everything Williamson, the company’s CEO, the logic How it works
much more efficient – a highly desirable of using Prod rests on three legs – safety, The Prod unit’s two carousels hold about
outcome for Statoil given it samples control and efficiency – just as the unit 260m of drilling tubular and testing tools
every meter or so, which translates into itself sits on three legs. in total and two manipulators are used to
lots of winching. Using a seabed drilling ‘Drilling is a dangerous activity when make up the drillstring.
package would drop the distance winched there are roughnecks working on a deck,’ It takes one to two hours to lower Prod,
from 1300-1400m in this case down to 50m he notes. ‘Benthic’s operators are sitting with its various cameras and sensors,
or 100m, he notes, and the distance is in a climate-controlled control room, to the seabed from the vessel. The arms
even greater in deeper water. According operating it with a mouse.’ extend as the unit nears the seafloor,
to Tjelta, it becomes ‘between five and ten To make the design work, Tjelta says, at which point operators can view the
times faster than the traditional work we ‘they use a lot of ROV thinking with the landing zone and orient the system
do’. umbilical going down to the seabed, and using thrusters so it lands in the desired
Once the company bought into the they have the control units and power location. On landing, more cable is paid
seabed drilling idea, it conducted a units. You could call it crossover between out, a catenary is formed and the unit
survey of available systems in the market an ROV and a standard drilling rig.’ settles on a central base plate lowered to
that might be up to the task. ‘We scanned Prod, which at 6m tall could almost the mudline.
everything that was available around the be referred to as a mini-rig, is easier to Williamson, who has a geology
world and we found four systems that control, Williamson says; that’s partly background, says Prod’s positioning
potentially would be able to do it.’ because of its proximity to the area to be capability – to an accuracy of 25mm
After comparing the four systems, drilled and partly because of its size. ‘The relative to the mudline – and the data it
Statoil opted to go with Australian bigger the equipment, the harder it is to collects remove a lot of the uncertainties
contractor Benthic Geotech, which control it delicately,’ he says. from flowline and riser design, which
largely had experience working in Efficiency, Williamson adds, comes inaccurate data has traditionally made
the Australasia region, and its Prod through the increased productivity of into a headache to design around.
(portable, remotely operated drill) unit. Prod, which can be three to five times For positioning, the rig sits on three

42 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 NORTH SEA
Benthic Geotech’s
Prod operators in
the control room.

Deployment of
the Prod seabed
drilling unit at the
Luva location in the
Norwegian Sea.

Prod specifications
Height, excluding main sheave wheel: 5.8m
Deck footprint (vertical, legs raised): 2.3m x 2.3m
Weight in air: 10t
Weight in water: 6t
Max operating depth below sea level: 2000m
Max sampling penetration depth: 125m
Max casing depth: 40m

oe.oilonline.com OFFSHORE ENGINEER | february 2010 43

NORTH SEA
‘Making and breaking a thread sounds in mid-2009, the Prod working prototype
– which did the Statoil job – has made
relatively simple, but making and its first strides into the West African
breaking a thread safely and reliably offshore market. It has started work for
Total in 1400m of water off Angola.
was a complex engineering exercise.’ According to Williamson, two
Peter Williamson, Benthic Geotech additional Prod units, both incorporating
improvements on the working prototype,
are now available for work. The design
didn’t come easy, Williamson notes.
Difficulties, he asks? There were ‘about
four or five thousand . . . it’s not that
legs, a result of working in challenging University of Sydney came up with the easy’. Some of the rough spots came with
conditions around an escarpment with original concept while working out how figuring out how to provide adequate
steep inclines. ‘It is actually capable of to acquire high-quality scientific samples control and communication during the
staying vertical even if the seabed is at a lower cost. Prototype development complex task of making and breaking
sloping or has undulations,’ explains began in 1997 and sea trials got underway drillstring. ‘Making and breaking a
Tjelta, pointing out that the unit can work in 2000. Following early applications in thread sounds relatively simple, but
on a 20° slope. Puget Sound and the Great Barrier Reef, making and breaking a thread safely
‘When we take a sample at seabed, we Australian oil & gas companies started and reliably was a complex engineering
know it’s within a fraction of an inch,’ showing an interest. The Prod unit’s first exercise,’ he says.
Tjelta adds. ‘It promotes a kind of control offshore trial was for Origin Energy in To accomplish the task of creating
which is unusual and unheard of in the 80m of water in the Bass Strait in 2001 a fully functional geotechnical
business.’ and the following year it went to work for investigation rig, Benthic Geotech had to
Today’s Prod systems are handling Woodside in similar water depths on the design its own suite of downhole sampling
a wider range of testing and sampling North West Shelf. and testing tools since, Williamson says,
activities than was originally envisaged ‘The technology by about 2002 was existing tools simply weren’t up to the
at the prototype stage. During the Luva proved,’ says Williamson, who joined the job. Another design constraint came with
project, for example, Benthic Geotech also company that year. From then until 2004, the limitations of operating remotely with
installed a series of deepwater monitoring the company raised capital and continued power. Here again the company opted
sites for Statoil. ‘We never considered 10 its R&D into oil & gas applications. By to develop the required software and
years ago that there was a need for that,’ 2005, Benthic Geotech was operating electronics in house.
Williamson says. commercially. The bulk of the company’s ‘I can’t say we’re at the end of our R&D
The original driver for the concept was 22 commercial deployments to date road at all,’ Williamson says. ‘We’re
the expense to scientists of using drillship have been oil & gas related, mostly in a long way down the path, but we’re
technology to work in the deep ocean. A Australasian waters. Since breaking into improving our technology every day. We
professor in the geology department at the the European market on the Luva project have a significant R&D budget.’ OE

Before its European breakthrough at Luva

last year, Prod system applications centred
mainly on Australian waters. Here the
working prototype is pictured undergoing
wet tests in Sydney Harbour and (right)
during the unit’s launch at Browse.

44 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

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OE_M_4_Fugro_FP.indd 1 27/1/10 16:02:53

COMPLETIONS
First used about a quarter century ago, ‘Being involved in the creation
single-trip multi-zone completions have of it, and seeing first-hand how
seen some changes as service companies efficient and simple it was, I
put their own spin on the technology. couldn’t understand why it
Over the next five pages, Jennifer
Pallanich looks at the technology,
wasn’t mainstream.’
how it evolved, and the distinguishing Brad Baker, Baker Hughes
characteristics of each company’s offering.

Beta and
developments in the Bohai Bay and by from value driven inland waters to
completing wells faster, further realized performance driven ultra-deepwater,
substantial savings and dramatically according to the company. The system
accelerated their production curves,’ will be able to deliver the million plus

beyond ime is money, and deepwater

Baker says of the work, which entailed
completing nearly 2000 zones from the
late 1990s through 2006.
While Baker Hughes was carrying out
pounds of proppant at 60+ b/min type
of extreme treatments required for
ultra-deepwater while providing total
zonal isolation during installation, well

T means more time and more money.

Operators, keen to minimize rig
time, have been pushing for more
completions for all those zones offshore
China, a request for increased capability
came through from other operators.
treatment, and the production life of
the well, the company says. The new
MZ production packer in standard
efficient ways to complete wells with ‘Eventually they wanted to use the tool trim is rated to 12,000psi differential
multiple zones. One method is to carry to frac,’ Baker says. The first multi-zone production pressure at 400°F and
out multiple completions in one trip, a single trip completion solution that came 15,000psi differential treating pressure.
technology developed by Baker Hughes with fracking ability, he says, offered a A system design that provides positive
that has been around for about 25 years. rate of 10 to 12b/min. About 2002, Baker tool positioning addresses service
That initial job, notes Brad Baker, Hughes came out with a way to frac with tool operation at extreme depths from
Baker Hughes product line director, rates of 20-30b/min, he adds. floating rigs, the company adds. To
sand control systems, was done on ‘It’s not really that high-tech . . . it’s the ensure operational integrity, all isolation
unconsolidated zones in Shell’s Beta way it’s put together,’ Brad Baker says systems are pressure testable. All zonal
field offshore California in water depths of the technology the company called MZ isolation packers can be hydraulically
ranging from 270ft to 700ft. The tool Baker FRAQ. Over the past two decades, the tested individually after setting and are
Hughes developed for the job became technology remained primarily on the retrievable with a straight-pull retrieving
known as the Beta tool, after the field. sidelines. ‘Being involved in the creation tool.
‘It wasn’t isolated, and it wasn’t a full of it, and seeing first-hand how efficient Baker Hughes says its next-generation
system,’ Baker says. It was able to gravel and simple it was, I couldn’t understand MZ-XP system moves the limits of multi-
pack multiple zones on the way up out why it wasn’t mainstream,’ he adds. zone frac treatments away from the
of the hole. Beta left the zones fully open As the tool evolved, it has become sand face completion tools to the up-hole
during and after treating, which allowed ‘more forgiving’, according to Baker. Past delivery systems. OE
zones to cross-flow between each other. iterations, he says, needed 50ft between
A later version of the tool emerged zones, but now the tool can handle zones
around 1990 when Conoco became as close as 5ft apart.
interested in the technology for the Gulf ‘The irony of all this is the industry is
of Mexico. However, Baker says, because pushing the service sector for this tool
of higher formation pressures, Conoco to handle the world’s most challenging
wanted a version that could ensure full deepwater environments with technology
isolation. Baker was on the team that that is primarily a tweak of a system that
worked to develop the Beta tool into is over 25 years old and was not widely
one that could provide isolation. He ran used or accepted at the time,’ Baker says.
the first version – called the Mini-Beta Looking forward, Baker sees sand
Tool – on Conoco’s Marquette project control growing even more as an area
in the Green Canyon section of the Gulf for significant focus. ‘Sand problems
of Mexico. It was later deployed from are huge in the industry. If not handled
floaters in the North Sea for Shell Gannet, correctly, sand is actually catastrophic,’
where it was said to have saved up to Baker says.
two-thirds rig time from the conventional Baker Hughes’ new solution for the
means of completing multiple zones. ultra deepwater has been tested onshore.
‘It’s really a time-saving tool, and that’s Baker says the tool did not show any
really how it started,’ Baker notes. erosion at 60bbl/min. ‘We think we’re on
The advent of horizontal drilling to something.’
prompted the temporary shelving of Soon Baker Hughes expects to launch
the technology at Baker Hughes until a new flexible modular MZ system with
the company was tapped to run the multi-tiered performance options. The
Mini-Beta offshore China. CNOOC, ‘the MZ system is configurable to different
Chinese national oil company applied combinations and number of zones in
the time savings benefits to entire field varying lengths suitable for applications

46 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 COMPLETIONS
‘As completion interval lengths
increased, the reduced ID of the
inner string and the restricted
flow area of concentric return path
resulted in increased fluid friction
during pumping and reversing.’
Tommy Grigsby, Halliburton

Enhanced
post-packing, are designed for fracking, incorporate interval control valves as
and do not require lower washpipe except part of the screen assembly. ‘Ideally they
to space shifting tools for the bottom will be operated remotely without the
circulating sleeve. use of control lines that are currently

optionsalliburton entered the picture with

Halliburton was due to complete its
first Lower Tertiary well early last year
with the ESTMZ system; however, the
operator pushed installation back to
required,’ Grigsby adds.
‘This will be a tough task due to the
requirement to maximize equipment ID
and minimize equipment OD.’ OE

H its technology commercially in 1993

and employed its first Single-Trip
Multizone (STMZ) system and Single-
1Q 2010. Halliburton carried out system
integration tests (SIT) in late 2007 for
the project. Two trial wells in Colorado
Trip Dual Zone (STDZ) system in the followed to validate the equipment,
South China Sea. The company’s Otis pick-up and running procedures, then
Engineering subsidiary, through its sand in 2009 a third SIT was carried out to
control tools group, began developing the validate additional system components
STMZ system to meet the requirements and provide more hands-on training
of the China project. Tommy Grigsby, experience.
Halliburton’s sand control tools product Three ESTMZ installations are
manager, notes the STMZ tool has over scheduled in Southeast Asia this year.
300 installations to its credit and is still Grigsby notes two fourth generation
being run in China, Indonesia, and Italy. systems are available today. These
These second-generation systems systems were designed to meet specific
could handle acid pre-packing and project requirements that represent
viscous gravel packing to provide zonal opposite ends of the completion spectrum.
isolation from the annulus above and ‘[BJ’s] MST was designed to accommodate
improved operational efficiency over gravel packing and low-rate fracking
earlier systems, Grigsby says. Like the for a gas field development, while
first generation, the second generation [Halliburton’s] ESTMZ system was
used dual concentric strings to facilitate designed for aggressive frac packing in
gravel placement and return flow. ‘The the ultra deep Lower Tertiary. In time,
dual concentric string design remains these systems will be optimized and will
the limiting factor,’ Grigsby says. ‘As evolve for multiple market segments,’ he
completion interval lengths increased, says.
the reduced ID of the inner string and the Grigsby believes the technology could
restricted flow area of concentric return go in several directions as it evolves. One
path resulted in increased fluid friction of those options is to use it in an open
during pumping and reversing.’ hole environment, a possibility being
He notes this created issues like planned as a contingency if a casing
limited pump rates, higher surface pump string fails to reach the total well depth,
pressure and sand out pressures required
quired he says. Secondly, he says, it may
the upgrade of all system components nts to be possible to
handle the higher pressure.
Halliburton’s next version of
the tool – fourth generation – is the
Enhanced Single-Trip Multizone
(ESTMZ) system, designed to meet
requirements for an operator’s
Lower Tertiary acreage in the Gulf
of Mexico (OE September 2009). Thiss
generation, Grigsby says, have 10,000psi
00psi
differential pressure rating of all
downhole hardware, single concentric ric
string extending from the hydraulic c
setting tool down to the lower service ce seal Halliburton completion crew
assembly containing the gravel packing king run the ESTMZ tool, and (left)
ports, isolation of each zone pre- and d Halliburton’s ESTMZ tool.

oe.oilonline.com OFFSHORE ENGINEER | february 2010 47

COMPLETIONS
‘Really, where the technology today has been
successful is the lower-risk, lower-tier environments
… but as we get into higher risk applications, one of
the areas we’re going to get into is overall reliability.’
Bryan Stamm, Schlumberger

Express
MZ-Xpress falls into what the industry Stamm says. And finally, for testable
defines as a fourth-generation tool packers, it’s possible to verify the dual
category. element packer is set before running
The MZ-Xpress combined an innovative operations, he adds.

service ultiple zone single trip completion

anchoring system to maintain position
with more debris-tolerant features and
a use-testable isolation packer design.
The service string can be anchored into
Currently this system, which provides
a selective completion by using sliding
sleeves between the screens, is available
in 7in casing. Development is under

M systems have been out there for

quite some time. It wasn’t until the
1990s that Schlumberger started to invest
the BHA using a device similar to that
used in a hook wall packer. For debris-
tolerance, the system ‘upsets and reverses
way for 95/8in casing, with deployment
expected in 1Q 2011.
The deployment of specific technologies
in the time-saving aspects of single-trip out housing that allows us to expel any can makes the difference in what can
multizone completions, Bryan Stamm, gravel and debris around the service tool be done in different well environments
technology manager for Schlumberger’s prior to the next zone up’, while minimizing intervention
sand control division, says. Schlumberger expenses, according to Lilian
first deployed the multizone Alternate Izquierdo, Schlumberger’s
Path (MZ-APS) technology, licensed from senior completion engineer/
Exxon, for single trip multizone packer project manager. Different
technology in the late 1990s. technologies can provide
‘The previous way of completing the ability to control and
the lower completion in a sand-prone understand the reservoir,
environment was to perform individual mitigate flow assurance
frac pack or gravel pack treatments and issues, and provide well data
work your way up the hole,’ Stamm says, information, she adds. With
describing this approach ‘time consuming that comes the need to manage
and expensive’. the well performance knowledge and
Stamm classifies the MZ-APS as data. ‘Everybody’s trying to develop their
unique because it completes all zones own technologies,’ she says.
with one pumping treatment, rather than One technology Schlumberger has
requiring the repositioning of the service in its arsenal is WellWatcher Neon,
tool. The gravel or frac pack is applied which is used as a permanent real-
over all the intervals at the same time. time reservoir monitoring system with
In 1996, the service company began multizone single-trip applications. In
deploying the paired MZ-APS technology dry-tree environment, WellWatcher
offshore and in 2000 began deploying Neon runs a WellWatcher fiber-optic, a
it in deepwater. As of the end of 2009, distributed temperature survey line with
the company lays claim to having a permanent downhole electric cable,
employed the technology globally more enabling simultaneous acquisition of
than 170 times, with about 40% of those pressure gauges data and distributed
applications offshore and 15 of them in temperature data. The system expands
deepwater. to help improve well productivity and
In 2003, Schlumberger began working injectivity by using inflow and outflow
on a repositionable service tool similar temperature profiles throughout the
to what the industry accepts as a single- producing life of a well or field.
trip multizone tool to treat lower, middle, ‘As we get into different basins,
and/or upper zones for work offshore we see the need to increase pressure
China. ratings in all our systems, also the
Looking to evolve the system, pumping capabilities,’ concludes Stamm.
Schlumberger in 2007 started work on ‘Eventually we’ll have some applications
the MZ-Xpress system for performing in open hole, not just cased hole. Really,
multizone frac and gravel packs in a where the technology today has been
single trip. ‘It was designed to get us into successful is the lower-risk, lower-tier
more of the offshore deepwater market, environments . . . but as we get into
addressing some of the limitations of Installation of the MZ-Xpress gravel pack higher risk applications, one of the
the generation, both in the pump rate, extension, and (inset) of the MZ-Xpress areas we’re going to get into is overall
testable packers,’ Stamm explains. The service tool crossover. reliability.’ OE

48 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

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paul_M_4_test.indd 1 31/3/09 11:49:05

COMPLETIONS
‘Knowing where the tool is
is critical to job success.’
David Walker, BJ Services

adds. The ComPlete MST system has of the intelligent well systems,’ Walker

Complete one primary indicating point to prevent

confusion about its location downhole.
‘Knowing where the tool is is critical to
says. Included in this, he notes, is the
capability for remote data acquisition
systems. ‘That’s what we’ve been

treatment
J Services entered the multizone
job success,’ Walker says.
BJ’s system carries out a process called
pre-treatment isolation that involves
running the isolation components into
requested by the operators to work on for
the future.’ OE

B single trip completion market in

2005, when it began designing its
ComPlete Multizone Single Trip (MST)
the wellbore along with the rest of the
sand control equipment. ‘Once we install
the system and set the packers, each
system in response to a pair of operator zone in the well is isolated,’ Walker says.
requests. The ComPlete MST system gives five-
‘One operator had multiple reservoirs zone selectivity. ‘The current system
that were of similar pressure but provides individual selectivity for all
separated by numerous shale layers,’ says the zones. Right now that selectivity is
David Walker, BJ’s director of completion mechanical,’ Walker says, noting that the
technology. Still, the operator wanted to process involves running a shifting tool
complete the zones cost-efficiently and to mechanically open the zones as needed.
still individually control production from In general, time savings is considerable,
each zone. A second operator had tight where working on five zones before would
reservoirs and long zones in a deepwater take a week and a half, it now takes half
project that needed large stimulation that or less, with pumping occupying
treatments to flow economically. ‘The most of that time, Walker says.
required rates got to a point where BJ’s 95/8in x 33/4in ComPlete MST
they didn’t think they could effectively system can handle frac or gravel packs
stimulate these long zones in a single pumped at 40b/min while its 95/8in x 51/8in
treatment,’ Walker says. system can handle rates to 50b/min.
In January this year, the company ‘The next features to be incorporated
marked the 25th installation of the into this system will be the integration
system. Fifteen of those applications have
been in Indonesia, primarily with dry
trees. The remaining uses have been in
the Gulf of Mexico and offshore India in a
mix of deepwater and shelf environments.
Globally, the system has been used to
treat over 100 zones.
The ComPlete MST system, which
went commercial in 2007 and for which
the company received a patent in July
2009, is a closed system that controls
treating and production zone by zone,
with tubing and a sleeve isolating each
screen section, Walker notes. ‘So when
you remove the service tool and you’re
ready to run production, the wellbore is
completely isolated,’ he says. ‘That’s the
same feature that gives us the individual
zone selectivity during production.’
Mechanical simplicity and reliability
are also key in completing the installation
successfully, Walker notes. Simple
operations such as correctly positioning
the service tools prior to treatment BJ Services completion crew members run one of the screens in a ComPlete MST system
become more complex when treating offshore Indonesia, and (inset) a ComPlete MST system isolation packer offshore
multiple zones over long distances, he Indonesia.

50 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 COMPLETIONS
‘There’s nothing that RFID cannot
operate. As long as you’ve got a
function downhole, it will work.’ ENGINEERING PLASTIC SOLUTIONS

Keith Parry, Weatherford

LEADING
system is a modular open hole completion
THE WAY
Select suite of isolation and frac selection
components that are mixed and
matched according to well conditions
ENGINEERING POLYMER
SOLUTIONS FOR THE
OFFSHORE INDUSTRY
model hen it comes to single trip
and objectives. With a tool kit full of
frac selection and isolation devices, as
well as several exclusive and patented
innovations, this system offers unique

W multizone completions,
Weatherford is ‘looking at four
specific types of completions’ in its
flexibility Parry says.
‘In North America, what we’re focused
on – and we’re doing well on – is our Zone
current offering, says Keith Parry, the Select Model system’ to isolate zones
service company’s global director of and frac in a single trip, Parry says.
business development. These are: the Weatherford has been using the system
Advanced Reservoir Management System in the North Sea, and is deploying it
(ARMS); Reservoir Management System globally. OE
(RMS); Advanced Deployment System
(ADS) and Keystone. Typical applications:
One of the enablers, Weatherford
iPipe-in-Pipe Centralisers
believes, is RFID technology
(OE January). In July 2008, Weatherford iROV Components
paired up with UK engineering firm iPiggy-Back Clamps
Petrowell to offer RFID technology in
iThruster Nozzles
downhole completions. Petrowell handled
engineering and prototypes while iBundle Spacers
Weatherford came in on the marketing iPulley/Sheaves
and manufacturing side. The RFID
iWear-Pads
method had been used offshore for about
five years by Marathon, Parry notes, but iBushes
it was not being actively marketed. iRollers
‘They’ve come up with an RFID
methodology where basically you can
set packers, maintain well control, and
operate sliding sleeves,’ Parry says.
‘There’s nothing that RFID cannot
operate. As long as you’ve got a function
downhole, it will work.’ At the very
least, he says, RFID is the company’s
differentiator, and it makes up a
component of what Weatherford refers to
as its Advanced Completion Technology.
‘Noise doesn’t affect it, fluids don’t Nylacast Ltd (UK)
affect it, distance doesn’t affect it, which t: 0044 (0) 116 276 8558
can make this technology virtually f: 0044 (0) 116 274 1954
e: [email protected]
infallible,’ he says. ‘The actual [RFID] w: www.nylacast.com
tag itself is about the size of a headache
capsule. It costs about a dollar.’ It is Nylacast LLC (USA)
pumped in past an antenna, and when the t: 001 717 2705600
antenna picks up a signal, a motor is then f: 001 717 2709760
e: [email protected]
available to open a sleeve and if required w: www.nylacastusa.com
another motor to close a different valve.
Weatherford is looking at additional Nylacast South Africa (PTY)
technologies that may be able to take A section of t: 00 2711 3977077
advantage of RFID. Weatherford’s f: 00 2711 3977017
ZoneSelect applications cover single RMS system. e: [email protected]
w: www.nylacast.com
trip multizone work. The ZoneSelect

oe.oilonline.com OFFSHORE ENGINEER | february 2010 51

FLOW ASSURANCE

a significant danger to personnel and the

Remediating plugged environment, alike. Paraffin plugs, by

contrast, are more predictable because
accumulations typically occur over long

subsea flowlines
time periods.
The low-cost method of remediating
blockages in subsea production
systems derives from the exhaustive,
Remediating plugged subsea lines in deep and ultra-deepwater is dangerous and comprehensive analytic processes
time-consuming and can become extremely costly if coiled tubing or wireline intervention developed by Champion to thoroughly
is required to resolve the problem. Champion Technologies’ Jeremy Lee describes a diagnose the factors affecting oil and gas
recovery rates of a given project, so as
process that can reduce the system pressure at the wellhead, thereby remediating hydrate to assure selection of the best possible
blockages without requiring the support of an intervention vessel. The process also chemistry for each application. Key
provides information on the composition and location of a production system blockage. factors guiding the successful diagnosis
and dissociation of plugs in subsea
low assurance is the lynchpin of in subsea production systems pose systems include:

F profitability for most offshore oil

and gas projects. That is especially
true for developments in deep and
significant risks to employees, equipment
and the environment. With subsea
tiebacks being designed to traverse ever
z characteristics of production stream
components, including all hydrocarbon
and non-hydrocarbon fluids and gases
ultra-deepwater, where myriad types of greater distances, the possibility of plugs and contaminants produced from
blockages can form in subsea flowlines, forming beyond the reach of coiled tubing the reservoir or introduced through
jumpers, wellheads, or even wellbore or wireline intervention is increasing production operations;
tubing as a result of such fundamental daily. z well set-up, including piping
factors as the composition of the configuration and diameters, equipment
production stream, operating conditions, Removing subsea blockages designs and capacities, and production-
errors in operating procedures, Identifying the type of material creating component materials of construction;
evolving well conditions, or countless a blockage and determining the size of z field layout, including water depths
combinations thereof. Even in wells that the plug and where it is located in the traversed, tie-back distance, and
are being treated for hydrates, paraffin, production system is fundamental to bathymetry of the flowline;
scale or asphaltenes, it is still possible for developing an effective remediation z operating parameters, including
plugs to occur in the production system strategy. However, so many factors can rates of production, production-stream
if the correct treatment amounts are not play roles in creating blockages that composition, processing pathway,
injected and the required injection rates developing an effective remediation temperature and pressure regimes, and
continuously monitored. strategy is no easy matter. producers’ operating strategies; and
Deepwater producers know that Typically, plugs in deepwater are z encyclopedic knowledge of oilfield
removing plugs in subsea production composed of hydrates and/or paraffin, chemistry acquired from over five
systems can be extremely time- although accumulation of sand/sediment decades of researching, designing,
consuming. Remediation costs, which or build-up of scale or asphaltenes can manufacturing, and deploying specialty
include both the cost of intervention also cause blockages. In deep and ultra- chemical formulations for the upstream
and the implied value of lost production, deepwater, blockages can occur due oil and gas industry.
easily can run into millions of dollars. to instability of production chemicals
More importantly, some types of plugs injected subsea that have not been Recent application
designed for temperatures and pressures Champion recently used the low-cost
on the seafloor. If the chemical products plug remediation method to locate and
About the author are not tested and qualified for subsea identify the composition of a blockage
Jeremy Lee is a project engineer at injection, they can cause blockage in the in the flowline of a subsea well in about
Champion Technologies, where he has umbilical system, thereby preventing 2800ft of water in the Gulf of Mexico tied
acquired considerable knowledge and injection of the chemistry required to back to a steel-jacketed platform facility
expertise in flow assurance, corrosion treat the well fluids and keep it flowing. over 20 miles away in 450ft of water. The
management, scale inhibition, and Hydrate plugs are especially procedures and techniques used to lower
other production chemistry. Lee has a strong technical troublesome, in part because they can the wellhead pressure, thus remediating
background and six years of hands-on experience in field form rapidly – in just a few hours – or the hydrate plug, were described in a
applications offshore. He is a graduate of Louisiana Tech take weeks or even months to form. technical paper presented at the 2009
University with a BSc in chemical engineering. In addition, hydrate plugs can become Offshore Technology Conference (OTC
mobilized and burst piping, which poses 20171).

52 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 FLOW ASSURANCE
Figure 1. Hydrate curves.
Figure 2. Well set-up.

In that intervention, Champion first well head, which provided a basis for in other well designs and for dissimilar
gathered information about the well’s estimating the pressure on both sides of production streams.
operating parameters before the blockage the hydrate blockage. For example, in a well designed with
occurred and its condition after the plug Once the location of the plug, its perforation sleeves, the sleeves could
forced cessation of production operations, approximate size, and part of the be closed to isolate reservoir pressure
including the type of chemicals and composition was known, informed from the well, providing a larger gas
produced fluids involved, the piping and decisions could be made about the path volume for pressure bleed-down and
valve configuration of the production forward in the remediation process. allowing significantly more volume into
system, production rates, chemicals Based upon the parameter values which flowline pressure could expand.
being used to treat the well, and the calculated and configuration of the well In a well with a lower gas-to-liquid ratio
diameters, lengths, volumes, pressures set-up, Champion was able to formulate and higher bubble point, the greater
and temperatures of the system and its a process to dissociate the blockage by fluid volume exposed to the pressure
components. using the tubing volume between the reduction, once below the bubble point,
Among other factors, Champion production system’s process choke valve would generate more gas volume to be
determined the salinity of produced and the surface-controlled subsurface bled down.
water in the subsea flowline was safety valve as a means of bleeding off As tie-back lengths increase and their
only 6% and that reservoir gas was pressure on the flowline (Figure 2). undulations across the seafloor become
saturated with water vapor – a worst- To successfully lower pressure in the more dynamic, it will be beneficial
case water chemistry scenario for water flowline upstream of the plug, Champion to consider modifying subsea system
condensation and hydrate formation. had to repeat the process numerous designs to include spare chemical
Calculations indicated that for the times. The bleed-back operations were treatment and service lines at the
system to be outside hydrate-formation somewhat time-consuming because of wellhead and possibly at other critical
conditions at the deepwater temperature the size of the bleed back line utilized, points in the flowline.
of 40°F, flowline pressure would have but remediating the blockage using this If consulted early in the project
to be reduced to about 650psi for 6% process does not require the more costly development process, chemical treating
salinity water and 150psi for condensed intervention. experts with significant flow-assurance
water (Figure 1). The temperature and experience and an engineering
pressure profile of the system prior to the Thoughts for the future background can recommend alternative
appearance of the blockage indicated the The procedures implemented to remove subsea-system designs for a given
hydrate initiation point was within the the plug were successful due to the well application, based upon the expected
first 1000ft of the flowline. set-up and produced fluid characteristics. composition of produced fluids.
In addition, a series of procedures But pre-planning for a worst-case In many cases the additional capital
were performed to determine such blockage scenario – for example, by cost of adding chemical treatment
parameters as the volume of liquid slightly increasing the size of chemical lines and service lines at critical
remaining in the flowline, the gas and treatment or service lines or adding lines locations to prepare in advance for an
liquid volume percentage occupying the at critical locations – would have enabled inevitable flowline plug could result in
well, and pressures remaining on various remediation to occur more quickly, significant cost savings, compared to
segments of well piping. Fluid height especially in a single-flowline system. the cost of mobilizing a service vessel
and liquid density was used to calculate Similarly, the method could be used for coiled tubing or wireline
the hydrostatic head pressure at the with modification to remediate blockages intervention. OE

oe.oilonline.com OFFSHORE ENGINEER | february 2010 53

FLOW ASSURANCE
LedaFlow still enables a ‘window-into-the-pipeline’,
only now ‘it’s closer to 20:20 vision’.
Amit Jain

20:20 vision in sight

fidelity, flexibility and accuracy for
reduced risk, better performance and
improved return on investment,’ says
Jain. ‘Aside from the operational
A new flow assurance solution promises improved accuracy as part of a improvements enabled by LedaFlow,
next-generation integrated production management system and as a standalone it also positions Kongsberg Oil & Gas
engineering tool. OE looks at LedaFlow’s performance to date and future potential. Technologies as the only player able to
offer proprietary integrated solutions
t 143km, the Snøhvit multiphase Total, ConocoPhillips and Norwegian consisting of flow assurance and dynamic

A pipeline in the Barents Sea is one

of the longest of its kind in the
world and according to Kongsberg Oil &
research group Sintef, LedaFlow has been
further developed and commercialised by
Kongsberg as an innovative integrated
process simulations,’ he claims.
Jain says that Kongsberg Oil & Gas
Technologies’ new dynamic process
Gas Technologies, the developer of the tool for oil & gas engineers. simulation tool, K-Spice, is the perfect
production management system in use According to Kongsberg Oil & Gas fit for LedaFlow. Integrated, they will
there, it demonstrates how important Technologies’ Amit Jain, LedaFlow still perform highly accurate data in real-time
the integration of flow assurance and enables a ‘window-into-the-pipeline’, only for production management in addition to
dynamic process simulation tools is for now ‘it’s closer to 20:20 vision’. a planning mode for production planning.
daily operation. LedaFlow is closer to the actual ‘The level of integration and the
The simulator’s DPM (dynamic physics in the pipeline, rather than accuracy of the real time data surpass
production model), which has developed empirical data, and provides accurate 1D previous integrated solutions as the
from project feasibility through or quasi 3D simulation. It uses detailed flow assurance and dynamic process
pre-engineering, commissioning and 3D physical modelling and has been simulation have been designed in-house
start-up to daily operation, is used as a validated against the best available, with integration between the two high
‘window-into-the-pipeline’ and acts as a most comprehensive experimental on the agenda,’ explains Jain. ‘We like
dynamic simulation model of the pipeline data. It is designed to exploit the power to think of LedaFlow as the engine and
conditions. of high-performance computing to K-Spice as the car that harnesses its
The pipeline calculations are support decisions in real time and offers power. However, integration is important,
performed by a flow assurance tool, a application possibilities that cover all but LedaFlow has been designed to be
dedicated multiphase pipeline modelling engineering aspects including design, flexible and we are working towards
software. The onshore and offshore commissioning, operation and training. releasing it as a standalone engineering
equipment is modelled using the dynamic ‘It’s a step change in flow assurance, tool for pipe calculations and front-end
process simulation tool and both run on offering vastly improved functionality, engineering design also,’ he adds. OE
the same interface in order to provide
the operator with a clear view of what is
going on in the pipe.
Although the integration of flow
assurance with dynamic process
simulation to form a complete production
management system is not a new concept
– Kongsberg has been making similar
deliveries now for over nine years and
Snøhvit has been operational since
August 2007 – there is a considerable
industry demand for improved tools
and technology to overcome the
growing challenges of 21st century oil
& gas production, such as longer and
larger diameter flowlines, deeper field
developments and harsher environments.
Kongsberg Oil & Gas Technologies has
been working to meet this demand and to
build on the lessons learnt from extensive
projects such as Snøhvit through the
development of LedaFlow, its proprietary
flow assurance software. The product of
nearly a decade of collaboration between

54 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

OE_M_4_Bayou_FP.indd 1 27/1/10 15:45:50
MARINE RENEWABLES
‘A major tipping point for the ‘There could be a problem
future of offshore renewables.’ with skill shortages.’
Andrew Mill, Narec Martin Grant, Atkins

renewables
Round 3 ups the windfarm ante
The Crown Estate, owner of the UK’s coastal seabeds, last month granted rights in Round 3 to energy companies in
nine coastal zones to develop the biggest expansion of wind energy seen in the world so far. Meg Chesshyre reports.

ound 3 has the potential (1.3GW), Moray Offshore consortium equally owned by and the Irish Sea Zone

R to add 32GW of offshore

wind energy to the UK
grid, on top of 8GW from
Renewables owned 75% by
EDP Renovaveis and 25%
by SeaEnergy Renewables;
Mainstream Renewable Power
and Siemens Project Ventures
and involving Hochtief
(4.2GW), Centrica Renewable
Energy and involving RES
Group.
previous rounds. The next Firth of Forth Zone (3.5GW), Construction; Norfolk Bank Welcomed by offshore
generation of offshore wind SeaGreen Wind Energy, 50:50 Zone (7.2GW), East Anglia industry commentators as a
farms will require larger owned by SSE Renewables Offshore Wind 50:50 Scottish shot in the arm in difficult
and more efficient turbines, and Fluor; Dogger Bank Power Renewables and economic times, the UK’s
capable of generating 5MW Zone (9GW), the Forewind Vattenfall Vindkraft; Hastings Round 3 windfarm licensing
of power apiece. The 32GW Consortium equally owned Zone (0.6GW), Eon Climate round could be worth
target equates to an extra 6400 by SSE Renewables, RWE and Renewables UK; West of £75 billion and support up to
turbines. Npower Renewables, Statoil Isle of Wight Zone (0.9GW), 70,000 jobs claims UK prime
The developers who have and Statkraft; Hornsea Zone Eneco New Energy; Bristol minister Gordon Brown.
signed exclusivity zone (4GW), Siemens Project Channel Zone (1.5GW), RWE Andrew Mill, CEO of
agreements with The Crown Ventures and Mainstream Npower Renewables, the UK Narec, technology advisor to
Estate are: Moray Firth Zone Renewable Power, a subsidiary of RWE Innogy; the Crown Estate, described

56 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 MARINE RENEWABLES
Round 3 as ‘a major tipping monitoring technology is Site of the
point’ for the future of offshore already in use in a variety proposed Cape
renewables. The scale of the of other motor applications Wind wind farm.
round, he said, requires a new – honing this technology to
approach from industry across meet the unique demands of
the supply chain to ensure turbines will be critical to
delivery. As such, proving making offshore wind farms
the technologies in the new economically viable.’
larger turbines required for Nicholas Pincott , energy
Round 3 will be a critical partner at international legal
factor in accelerating the rate practice Norton Rose, which
of installations and reducing advised The Crown Estate

Cape Wind closer

the lifetime costs of new wind on Round 3, commented: ‘In
farms. addition to making the UK
Narec is already working the leader in offshore wind
with manufacturers generation, it is anticipated
developing large turbines. It is
an independent development
partner to Clipper Windpower
and Mitsubishi Power Systems
that Round 3 will act as
a massive stimulus to all
elements of the supply chain
for offshore wind farms. This
to a decision
ore than eight years help the US reduce greenhouse
Europe for its new machines,
and has supported Siemens
Power Transmission &
will include not only wind
turbines, but also foundations
and steel work, cabling and
M after the project was
announced, the Obama
administration is pushing for
gas emissions.
But opponents, including
some business leaders,
Distribution in the technical installation vessels.’ a final resolution that would politicians and local Native
development of advanced new Meanwhile, Andy Cox, allow installation of the first American tribes, have held
designs for the deployment of energy partner at KPMG, major offshore wind farm in the project up with charges
offshore sub-stations issued a reminder of the the US. that it would be unsightly,
Narec is creating a national importance of tidal energy Threatening to ‘take the environmentally damaging
technology advancement hub as an area for development. steps necessary to bring the and a threat to historical
for the industry in North ‘While our European permit process to conclusion,’ and culturally significant
East England, to prove and counterparts are much Interior Secretary Ken Salazar property.
accredit new machines. more advanced in the set a 1 March deadline for Salazar called for a meeting
The consultant has recently manufacturing base for wind, supporters and opponents of 13 January between the
secured public investment I believe tidal energy presents the Cape Wind project to reach developers, supporters and
of £15 million to build on its an opportunity for the UK an agreement. The department the project’s opponents to help
current 70m turbine blade to steal a march on the rest could issue a ruling if the hasten an agreement.
testing capability with a new of the world. Tidal is still parties remain deadlocked. In a conference call after the
100m facility to test the largest an unproven, nascent green Cape Wind Associates wants meeting, Cape Wind president
of offshore blades. energy source but, with the UK to install 130, 3.6MW wind Jim Gordon deemed the
Martin Grant, managing having access to a potent level turbines in the Nantucket meeting ‘very constructive’
director of Atkins’ energy of tidal forces, the opportunity Sound offshore Massachusetts. and praised Salazar’s decision
division, said the UK has to lead the way should not be The installation is claimed to become ‘personally engaged’
the engineering expertise ignored: both for improving capable of generating enough in the issue.
necessary to succeed in the our green energy usage and electricity to supply about ‘We understand that the
wind farm arena, but there boosting employment in a 75% of the energy demand secretary has to balance the
could be a problem with skill range of sectors including in Cape Cod and the islands need for renewable energy,
shortages. ‘While we have the traditional manufacturing.’ of Martha’s Vineyard and greater energy independence,
engineering expertise in the z Burntisland Fabrications Nantucket, or about 200,000 action on climate change and
UK, these skills are in short (BiFab) and Tees Alliance households. the desire for a new, green
supply and the engineering Group (Tag) will each receive Supporters say the project’s economy . . . with the need
sector will need to continue £1.5 million UK government approval would clear the way for historic preservation,’ he
to work hard to attract and funding for wind farm for more offshore wind power said. ‘We’re convinced that
develop the engineers of the component manufacture. along the Atlantic coast and after the secretary weighs all
future.’ BiFab aims to set up a
Mark Roberts, head manufacturing facility at the
of QinetiQ’s energy and Energy Park in Fife, Scotland,
environment business stream, with capacity to deliver over
saw the announcement as 100 jacket substructures
‘a fantastic opportunity for per year for 12-80m water
the UK to become a centre of depths, beginning 2011. Tag
excellence in offshore wind is developing an automated
technologies, particularly in tubular production facility
the vital area of monitoring for the rolling and welding of
and maintenance’. He added: large diameter tubulars and
‘Systems will be needed that the construction of monopole
not only identify defects in foundatons, tripods, jackets
equipment, but also predict and transition pieces at its
future degradation. Predictive Teesside facility. OE Computer simulation of the wind farm seen from the closest coast.

oe.oilonline.com OFFSHORE ENGINEER | february 2010 57

MARINE RENEWABLES

COURTESY DR IJ STEVENSON
the benefits and the impacts
of this project that Secretary
Salazar will approve the Cape
Wind project.’
Backers have ruled out
moving the wind farm to an
alternative site, as opponents
have requested.
The project’s defeat or
further delay would be an
embarrassment for the Obama
administration in its efforts
to promote clean energy September that consent was
initiatives at home and project
a more environmentally
sensitive US image abroad.
SeaGen delivers given to operate it without
having to have environmental
scientists (marine mammal
Gordon said Cape Wind had he technical director and Northern Ireland at speeds of observers) on board and
offered a number of mitigation
measures to try to placate
opponents, including reducing
T co-founder of Marine
Current Turbines (MCT),
the Bristol-based company
up to 10 miles per hour. We
are getting more energy than
expected mainly because the
onshore. This was an initial
requirement under the
licensing arrangements to
the number of turbines from that designed and developed resource is more energetic ensure that SeaGen did not
170, as initially proposed, to the world’s only commercial- than originally predicted adversely affect the marine
130. Developers also agreed scale tidal stream turbine – during earlier surveys.’ mammals that are a protected
to alter the color scheme SeaGen – reports that it is now SeaGen had already feature of the local waters
and lighting to reduce the running at full power and fully delivered over 350MWh of and restricted SeaGen’s
turbines’ visibility from shore, automatically, as planned power into the Northern Irish uninterrupted running.
reconfigured the site plan to (OE August 2003). electricity grid, he said. The However extensive experience
avoid sensitive archeological Peter Fraenkel told a Lisbon twin generators typically gained so far suggests the seals
areas and offered money for ocean power conference: ‘We produce an average of 5MWh and porpoises are not at any
historic preservation efforts. are delighted with SeaGen’s of electricity during the 61/4 significant risk and as a result
So far, he said, opponents performance. It is running hours of each ebb and each SeaGen is now permitted
have not responded to the reliably and delivering flood tide, enough energy to to operate unattended and
concessions. more energy than originally meet the average electricity by remote control, as was
‘We have engaged in good expected in an extremely needs for 1500 homes. originally intended.
faith in this stakeholder aggressive environment. It The SeaGen turbine, with For the time being, an
process,’ he said. ‘We have should be remembered it is its twin 16m diameter rotors, operator onshore will continue
put a number of mitigation being driven by a wall of water is officially accredited as a to monitor a sonar image of
elements on the table, and 27m deep that surges back and ‘UK power station’. Although the passing flow which can
we look forward to either forth with every tide through it was operational for most show up any seal that ventures
obtaining a memorandum the Strangford Narrows in of 2009, it was not until too close to the rotors, and
of understanding from the operator has the facility
the parties or, if that’s to stop the machine. As
not possible, we’d like the confidence and the body of
secretary to terminate the evidence grows, it is expected
consultation and make a that full running will be
decision.’ permitted in the near future.
At stake, Gordon said, is no MCT managing director
less than the future of offshore Martin Wright said his team
wind in the US. are working to deploy tidal
‘The offshore wind industry turbine arrays in UK and
is watching this,’ he said. overseas waters. ‘We are
‘As a result of Cape Wind’s working on new scaled-up
efforts in helping to evolve developments from SeaGen
the regulatory framework for that promise to generate
offshore wind in America, power at a lower cost,’ he said.
there have been other offshore ‘The expectation is that
wind developers that are also this radical new technology
proposing offshore wind farms can be developed within
up and down the Atlantic five to ten years to make a
coast.’ significant contribution to
Approval of the project gives future energy needs. Given
the Obama administration an suitable market incentives,
opportunity to ‘jump start the SeaGen demonstrates that
offshore wind industry in the marine renewable energy is at
United States,’ he said. ‘And the cusp of forming the basis
folks, you know, we’re twenty for a new UK industry with
years behind Europe.’ considerable worldwide export
Russell McCulley potential.’ OE

58 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 Liquids to Value

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PRODUCTS IM ACTION

Geomagnetic referencing
g
aid for drillers
A means of enhancing geomagnetic
referencing by increasing the accuracy y of
measurement-while-drilling in directional
onal
drilling applications has been introduced
ced
by Fugro Gravity & Magnetic Services..
The new MagCube technology utilizes es
the magnetic intensity measured at
the surface from an airborne, marine
For further information on companies or land magnetic survey. The surface
and their products featured in this review, magnetic data is geomagnetically referenced
renced
please go to http://oe.oilonline.com to the magnetic survey data measured in the
wellbore to provide a finer subsurface anomaly real-time data
vector, which provides a more accurate e well on well position while
path to avoid costly side tracks. corrections to trajectory are
Geomagnetic referencing is frequentlytl usedd still
till possible,
ibl minimizing
i i i i th the need
d tto side
id

products by drillers. When enhanced by MagCube, says

Fugro, it can lead to significant savings in
track; and minimizing the costs of extra rig
time required to run a post-drilled gyroscopic

in action overall project costs by: providing accurate, survey.

Brage boost for to work collaboratively on a It has now been extended combines a slim mandrel with
project that encompasses both for deepwater scale squeeze 18 pad sensors that can run
rotary steerable the drilling and completion operations up to 600m with through tubing to produce
well construction processes’. further plans for extending the a quantitative scan of the
liner-while-drilling In conventional drilling technology to 1500m. interior surface and thickness
system operations, it is necessary
to pull the drillstring before
Chevron plans to use
the system on 13 specially
of the production casing.
Schlumberger Wireline
Statoil has successfully tested the casing or liner can be modified wells within the marketing and technology
The world’s first rotary run into the borehole. Liner same asset to maximize manager Zied Ben Hamad
steerable liner-while-drilling drilling systems eliminate the production throughout the said the scanner’s ability
system – jointly developed by need to pull the drillstring to life of field. The total scope of to measure corrosion in
Statoil and Baker Hughes – run casing, saving time and supply from Mars Production production casing without
has been successfully tested drilling costs by minimizing Systems (Mars-PS) included having to pull completion
on the Brage platform in the the risk of borehole collapse the deployment and chemical tubing would save customers
Norwegian North Sea. and reducing non-productive handling interfaces in addition significant cost. ‘The service
The innovative system, time. The addition of rotary to the Mars hardware. provides a first line of defense
which gives operators the steerable capabilities helps Chevron subsea in flow assurance. It has been
ability to accurately drill overcome the challenges of superintendent Roger Bradley used to identify the precise
and log 3D well profiles with drilling in zones with lower said: ‘The ability to use this location of generalized tubing
a liner attached directly to pressure and unstable shale/ technology in deepwater has corrosion, grooves and splits,
the drillstring, is designed to coal layers and in formations a significant impact on our and to monitor corrosion rates
withstand high circulation with varying flow and ability to undertake subsea to optimize remedial action
rates and high torque loads pressure regimes. well scale squeezes to mitigate planning.’
while providing liner connect scale formation from a MSV The EM Pipe Scanner has
and disconnect capabilities. support vessel, and allows us to date been deployed by
A rigorous development Deepwater scale to undertake the work without wireline, tractor and coiled
process and extensive onshore
testing, coordinated by a
squeeze for Mars the use of a drilling rig.’
Mars-PS vice president Ian
tubing at well deviations up
to 90° on more than 100 jobs
research group in Statoil’s Chevron recently completed Donald added: ‘The Lobito around the world. Operating
technology and new energy its first deepwater scale Tomboco project is our largest in liquid or gas environments,
division (TNE) working with squeeze treatment using export order to date and the tool makes a high-speed
Baker Hughes, preceded the Cameron’s Mars (Multiple confirms the Mars system’s reconnaissance run as it
breakthrough Brage platform application re-injection ability to provide cost-effective descends into the well. This
run. Now, following a second system) on well LDN4 in the deepwater liquid intervention run is used to identify places
deployment in January at Lobito Tomboco field offshore from an MSV.’ of interest where diagnostic
another Statoil field, Statfjord, Angola. scans are made as the tool
the new technology will be Hailed as ‘a USB port for ascends to produce images
commercialized. wellheads’, the Mars system EM casing that identify the exact
Gary Rich, president,
Europe region, for Baker
has previously been used on
for deepwater subsea pumping
inspection tool severity and nature of the
corrosion. In time-lapse mode,
Hughes, said this development and metering projects for BP The EM Pipe Scanner it can provide corrosion rate
‘highlights the advantages of and Total and on chemical electromagnetic casing estimates, identify casing
bringing together experts from injection operations for Shell inspection tool recently corrosion behind tubing and
several different disciplines in North Sea (OE April 2005). released by Schlumberger determine inner tubular

60 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 PRODUCTS IN ACTION
radius behind scale. downhole for the purpose of
Just 21/8in in diameter, the reconfiguring, or controlling
tool easily passes through downhole devices – opening
tubing to evaluate casing the path to the radical
below the tubing shoe redesign of downhole
and quantify metal loss in completions.
percentage and average ID CaTS mandrel systems were
of casing ranging from 27/8in installed in Ormen Lange
to 95/8in OD. In double casing wells A5 and B7 early last year
strings a continuous log of and commissioned in October.
average casing ID and total A further four systems are
metal thickness is recorded. planned for installation during
2010/11.
Steve Hudson, Expro’s
Petrobras pilot wireless well solutions’
raises GTL hopes technology manager, said
described delivering the
Having now secured funding duplex communications
from Petrobras for the capability from ‘reservoir to
construction and testing beach’ as ‘the most challenging
of a pilot plant in Brazil, engineering project that we
CompactGTL believes have performed to date’. Brian
it may be well placed to Champion, general manager of
become the first company to Expro’s wireless business unit,
commercialise modular said: ‘The logical next step is
gas-to-liquid plant production. to apply the duplex wireless
The company says it is on communications capability to
schedule to deliver a 20b/d selectively command inflow
pilot plant to Brazil in time for control devices that are
onshore testing in the second located remotely across the SCALING UP: Having already demonstrated its suitability for a wide range of vessel
half of 2010. producing reservoir interval.’ types, Alfa Laval’s chemical-free system for ballast water treatment is now heading for
CompactGTL has already Shell commented: ‘Having the top end of the offshore scale. The Swedish company has received its first order for
completed 18 months of access to high-accuracy PureBallast 2500, the largest version of the system, to be installed aboard the arctic
continuous testing of a fully sandface flowing pressure ice-class drillship Stena DrillMax Ice.
integrated pilot plant at its data allows determination Featuring a flow rate of 2500m3/h, this system will provide more than double the
Wilton, UK, facility and under of damage skin and the capacity of any previous PureBallast version. The system was ordered by Samsung
the terms of its development possibility of monitoring Heavy Industries on behalf of Stena Drilling and is slated for delivery to the Geoje
and licence agreement with the sand face completion shipyard in June 2010.
Petrobras recently completed a efficiency and integrity.
conceptual engineering study Actual sand face pressure data
for a 2000b/d commercial plant also reduces the uncertainty metering issue, allowing us to ConocoPhillips production
to be installed on an extended of the drawdown at the continue ramping up the well.’ engineering advisor John
well test vessel. sand face in constrained Patterson said ALC had
wells, compared to using been ‘flexible and responsive
multiphase flow correlations. Leg up for to our specific needs, and
Ormen Lange An improvement of 1-2% in
artificial lift provided us complete access
cool for CaTS the calculated drawdown can
improve production by 1-2% in The Artificial Lift Company
in the technical development
process’. He added: ‘We believe
Successful installation of drawdown constrained wells. (ALC) confirmed recently ALC’s Rigless ESP technology
Expro’s new large-bore CaTS ‘The CaTS data has allowed that its Rigless ESP solution is a cost-effective solution for
mandrel system in Ormen us to fine-tune our multiphase developed in cooperation companies facing challenging
Lange phase two wells off flow correlations that are with ConocoPhillips had been ESP applications with high
Norway was confirmed last used to calculate the frictional approved by the operator for intervention costs and in
month, marking the first pressure drop throughout commercialization following areas where securing a rig can
introduction of two-way the completion, resulting in final acceptance tests last require a long downtime. Our
communications functionality non-CaTS wells also being September. main driver for Alaska was to
into the company’s wireless operated at their full potential The artificial lift service have a Rigless ESP system to
pressure/temperature (maximum drawdown company has been working allow replacement of sanded
monitoring and control limitation) as well. In addition, closely with ConocoPhillips pumps and to clean out sand
products portfolio. the CaTS data has already for more than five years to bridges in the casing below the
With a growing track record proven its value on one of develop this technology ESP without using a rig.’
in wireless data transmission the newly commissioned (OE May 2006). The system ALC president Geoff
from reservoir to surface, wells where produced water will undergo additional testing Kimber-Smith said: ‘The
Expro said the introduction measurements at the xmas with ConocoPhillips in Q1 2010 commercialization of this
of duplex communications tree were outside the normal in West Texas, with the first technology will allow us
functionality in CaTS now operating range. By having the commercial installation for to introduce the product
enabled commands to be CaTS data available, we were the operator scheduled for to markets where there is
transmitted from surface to able to demonstrate this was a Q2/Q3 2010 in Alaska. real demand for alternative

oe.oilonline.com OFFSHORE ENGINEER | february 2010 61

PRODUCTS IM ACTION
POWER PLAY: Under a contract
worth around £200,000 from
Now in operation, the ATEX Zone 1
certified unit delivers
Space-saving SPS
Diamond Offshore Drilling, Aberdeen- 378lpm/3000psi. Providing fluid evacuation chute
based DE Hydraulics built and power for the rig’s top drive system
installed a new hydraulic power and casing stabbing arm, as well Close collaboration between
unit on Ocean Guardian as part of as its torque and rider spiders, it Norway’s Brude Safety and
the semisubmersible drilling rig’s replaced two units previously required Ulstein Design has resulted
recent upgrade at Invergordon before to power the machinery. Pictured in a new type of space-saving
heading for the Falkland Islands during commissioning of the new unit marine evacuation system
to drill for Desire Petroleum and is DE Hydraulics’ operations manager, (MES) designed to fit offshore
Rockhopper Exploration. Stewart Dalgarno. support vessels and other
special purpose ships. The
ESP solutions, especially in subsidiary’s president, Sammy chute has already been
areas where workover costs Russo, explained that in this Current meter ordered for all six of the new
consume a large part of the
budget. We believe that there
instance the rig was having
problems when breaking drill
package improves Polarcus vessels currently
being built at Drydocks World
will be many worldwide pipe with WT-56 threads. If it drilling control Dubai.
opportunities in key global were not perfectly centered The Brude MES Chute
regions as this system will when picked up, it would hang A new system developed SPS is designed for safe and
radically change the costs on the thread in the box. by Kongsberg Maritime efficient evacuation from a
incurred in deploying ESPs.’ Keeping a 100ft stand of for measuring sea current ship in international waters
57/8in drill pipe stabilized speed and direction at given with an evacuation height
when it is full of drilling mud points on a drilling riser from 3m to 20m. The system
Multipurpose is problematic, hence the call can be integrated with the consists of the evacuation
roughneck set for to Stabil Drill. The company
responded by installing
company’s High Precision
Acoustic Positioning and
chute and mooring system, life
rafts for 65 and 150 personnel
Sakhalin service . . . stabilization bars inside its underwater navigation as well as optional additional
Pneumatic Mud Bucket, using system, HiPAP. The first such life rafts for 10, 30, 50 and 150
Parker Drilling has ordered a configuration employed in sea current meter package personnel.
a JIM 20 multipurpose the Gulf of Mexico for several has already been delivered According to Brude, the
roughneck from Norway’s TTS years with documented to an unspecified user, new chute is easy and cost
Sense for deployment on a new success. These bars cover the with Kongsberg Maritime effective to install and offers
ExxonMobil rig built for work length of the box and pin and sales manager Roar Hansen improved safety compared
at Sakhalin in the Russian far are precisely milled to engage enthusing that it will be ‘very to davit solutions. All the
east. The Kristiansand-based the tool joint OD at the same useful’ in improving control of system’s operations are can be
firm had earlier also been time the mud bucket seals and drilling operations ‘especially carried out manually by two
contracted to provide the rig’s locks. in deep water or where heavy people, obviating the need for
drilling control systems and When the drill pipe is picked current may cause problems’. electrical or hydraulic supply
mud equipment package. up, the tool joint slides up the The new package consists of and keeping service costs to a
Designed to optimise stabilization bars, but cannot a Doppler Velocity Log (DVL) minimum. All components are
drill floor safety, the JIM swing off center. interfaced to a telemetry made of marine aluminium.
20 is a four-in-one machine transponder, which sends
embracing regular roughneck, the 3D sea current data via
casing roughneck, mud bucket acoustics to the onboard
and dope robot, all served HiPAP system. ‘There are
by an easy-to-use control virtually no limits to the
system. Slated for delivery number of sea current
in November, this is the first packages that a single rig may
such unit sold to Parker and utilise, ensuring that drilling
Exxon in the US market. teams are able to receive
It can handle the full accurate current data from as
range of pipe up to 20in wide an area as required.’
casing and support a 15-ton Hansen added that
stand. Available torque is the Kongsberg Maritime
185,000ftlbs. development team had taken
account of the fact that sending
sea current telemetry takes
. . . as modified time, which will influence the
mud bucket brings HiPAP update rates. ‘However,
sea current does not change
drill pipe relief in direction or speed over
short periods of time, so the
Stabil Drill has sent one of HiPAP DVL update rate can be
its patented Pneumatic Mud set to read current data only
Buckets to Sakhalin to assist every 5-30 minutes, therefore
on a rig with problems while mitigating impact on the update
breaking drill pipe. The rates and ensuring integrity of
Superior Energy Services position data.’

62 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

OE_M_4_SubseaUK_HPH.indd 1 28/1/10 10:36:00

Kommende Tekna-konferanser / upcoming Tekna events

Registration/information: www.teknakurs.no – [email protected] – tel + 47 22 94 75 60 / 61

Tekna offers international conferences and seminars covering important technological

areas. Our conferences are developed by some of Norway´s most prominent
professionals in their fields. This is the program for the next months:

February 10.-12. Geilo Seabed mapping and Inspection

March 14.-17. Geilo Oil Field Chemistry Symposium
June 3.-4. Nesbru Floating Production 2010
September 30.-1. Stavanger Separation Technology Oil and Gas

Tekna – The Norwegian Society of Graduate Technical and Scientific Professionals

OE_M_4_Tekna_HPH.indd 1 28/1/10 10:49:16

 2010 Offshore Technology Conference
("+B6N//G:A>6CIE6G@//=DJHIDC!I:M6H

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^hi]ZldgaYÉh[dgZbdhiZkZci[dgi]Z
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mmm$ejYd[j$eh]%(&'&

H[]_ij[hDem
OE_M_4_OTC_HPH.indd 1 28/1/10 09:10:30
3rd Annual Global
6th Global Annual Education and Education & Training
in Energy Awards
Training Event for Upstream Oil & Gas 23rd March 2010 - Kuala Lumpur, MALAYSIA
‘Celebrating excellence in Education
23rd - 24th March 2010 - Kuala Lumpur, Malaysia and Training for the Oil & Gas Industry.’
The Getenergy Awards offer a high profile
Our annual event is the only place where oil and gas New for 2010! The 22nd March is only open for Learning
platform for the success stories that your
companies can meet and build partnerships with education Arena Exhibitors, who will have the opportunity to make a efforts drive and provide a framework to
and training providers from over 40 countries. connection with up to three Training Directors from measure, record and recognise
NOC/IOC to discuss ongoing opportunities and ways world-beating achievement in 7 areas of
Executive responsible for education and training and staff of working together in the future. Few stands remain- critical importance to the global oil and gas
business.
development in exploration & production companies will ing in the Learning Arena, contact us today for
meet to address the training needs of the oil/gas industry. further information. Awards Categories
Companies already invited include:
Who should attend? (I) ‘Learning at the core’
- Petronas - Saudi Aramco - NOCs / IOCs & major Service Companies: (II) ‘Mentor/Coach of the Year’
- Pertamina - NNPC - Heads of Learning & Development (III) ‘Education/Training Provider of the
Year’
- PTT E&P - Total - New Business Development Directors
(IV) ‘The Rejuvenation Award for
- Sonangol - Shell - Heads of Human Resources Outstanding Progress in Local
Content’
- Regional Country Managers
- Petrochina - ExxonMobil
(V) ‘Education Partnership 2009’
- Education and training providers
- NOC Libya - ENI (VI) ‘Corporate Social Responsibility in
- Qualification awarding bodies Education’
For further programme information visit our website:
(VII) ‘Special Association Award:
www.getenergyevent.com Book your delegate pass online! Advancing Education for the
Oil/Gas Industry’.
For Sponsorship and Exhibiting Opportunities, contact us: Tel: +44 (0)207 0965600 Email: [email protected]

Sponsors: How to enter

LAST CALL FOR NOMINATIONS!
There is no fee to make a nomination.
Complete your nomination online at:
www.getenergyawards.com

OE_M_4_Getenergy_HPH.indd 1 27/1/10 16:08:55

 FIRMS
PRE-SALT PROGRAM: Petrobras has signed a technological
cooperation agreement with Halliburton for pre-salt reservoir R&D. The
three-year plus options deal covers three research projects: technologies
to determine contamination in bottom hole fluid samples; well production
behavior simulations in the laboratory; salt and CO2 formation cementation.
A dozen other projects are still under negotiation. Petrobras expects to invest
$15 million in the projects and they are expected to lead to the creation,
in 2011, of the Halliburton Brazil Technologies & Solutions Center in
Rio de Janeiro, to be located on Fundão Island. Petrobras E&P director
Guilherme Estrella (left) and Halliburton’s president for global business and
technology, Tim Probert, are pictured during the signing ceremony in Rio.

analysis and independent 2H Offshore but a standalone Marine Subsea, the Aberdeen-
quality control of production entity is thought to offer based firm is responsible for
and reservoir fluid samples. greater focus and growth the operational management
The duo are already providing potential. The new company’s of Sarah, a newbuild
the joint service to a client Woking, UK operations will be multipurpose offshore subsea
offshore Africa. managed by Sandip Ukani and construction and light well
those in Houston by Wolfgang intervention vessel that is
J Ray McDermott has teamed up Ruf. capable of operating in depths
with Oceanteam for a vessel of 3000m.

firms
Devon Energy is selling its
transaction on existing
subsea construction vessel
SMD has completed the
acquisition of the business Wood Group has opened a new
North Ocean 102 and the and assets of Hallin Robotics office in Rio de Janeiro’s
interests in three Lower newbuild North Ocean 105, from Hallin Marine Subsea Barra de Tijuca area to offer
Tertiary projects in the Gulf of to be delivered by Spanish International for an operations and maintenance,
Mexico to Maersk Oil for yard Metalships in 2011. undisclosed sum. The business commissioning and other
$1.3 billion, the first in a J Ray, which will have an will become known as SMD technical services. ‘Most oil
series of divestitures designed approximate 50% stake in the Robotics. & gas companies operating
to refashion the Oklahoma North Ocean 102 ownership in Brazil have offices in Rio
City-based company as an company and a 75% stake Oceaneering International is to de Janeiro,’ said Alexandre
exclusively onshore operator. in that of North Ocean 105, build a purpose-built, 200ft x Quadrado, Wood’s country
The deal covers Devon’s 50% will charter the vessels for 46ft dive support vessel in a US manager. ‘This new office will
working interest in Cascade five years, after which it will Gulf Coast shipyard to replace allow us to be closer to them,
and its 25% interest in the have the option to purchase the Ocean Project, built in 1972. providing a quicker response
Jack and St Malo projects, all Oceanteam’s shares in both The new vessel, which will than from our operational
in the deepwater Walker Ridge vessel owning companies. cost an estimated $17 million base in Macae.’
area offshore Louisiana. J Ray president and CEO and is slated for delivery
Robert Deason said the in 4Q 2010, will ‘allow us to Foster Wheeler is relocating
Alliance Engineering has signed two vessels would provide continue to support demand its operating headquarters
a frame agreement with ‘versatile subsea and deepwater for our shallow water IRM and from New Jersey to Geneva,
Statoil USA E&P to provide installation equipment to construction support services’, Switzerland. Chairman and
engineering and design support our growing subsea said Oceaneering president CEO Raymond Milchovich
services for Statoil’s upcoming capabilities across a range of and CEO T Jay Collins. ‘There said the decision was due to
Gulf of Mexico prospects. The water depths worldwide’. are over 3500 platforms and the increasing prominence
agreement includes topsides approximately 20,000 miles of international business
engineering, design, and Acteon has created a new pipelines in use in the Gulf plays in the Foster Wheeler
project management services business unit, to be known as of Mexico that we believe portfolio. ‘Nearly 85% of our
for production facilities and Pulse Structural Monitoring and will need servicing for the business is currently outside
field development studies. headed by Pei An, specifically to indefinite future.’ of North America,’ he noted,
provide structural monitoring adding that the relocation
SGS and Halliburton have equipment, systems and Following a management would ‘significantly increase
entered a joint cooperation services to the offshore buyout with support of Marine management effectiveness by
agreement to combine industry. The business was Subsea, TSMarine Subsea is having our senior executive
formation fluid sample previously embedded within now operating under the name team in much closer proximity
acquisition and analysis the portfolio of group company Marine Subsea UK. As part of to our markets’.
services. Under the deal,
Halliburton will provide DELMAR STEPOUT: A technical/sales office has been opened
solutions for acquiring by Delmar Systems in Aberdeen to serve MODU and subsea
fluid samples, and SGS’ oil, customers in the North Sea. The Scottish office is the first
gas & chemicals division international expansion in the company’s 41-year history. ‘The
will deliver fluid analysis North Sea is an established MODU market with considerable
services. Halliburton said the activity between the UK and Norwegian sectors,’ said Delmar
agreement will give clients EVP Brady Como (pictured second left). ‘Delmar looks forward
access to the most complete to extending our capabilities by offering technical planning,
and innovative solutions, operational assistance, specialized mooring foundations, mooring
including portable laboratory systems rentals, proprietary installation methods, tools, and
services, for the acquisition, MODU mooring/subsea installation capabilities.’

oe.oilonline.com OFFSHORE ENGINEER | february 2010 65

FACES
managing director for Apache $2.4 billion. Saltiel joins from offshore construction manager
Energy. He will be succeeded Transocean, where he had is a 40-year veteran of the oil
in that position by Tom Maher, recently stepped up from EVP and gas industry.
formerly exploration manager performance to COO.
for Apache Egypt Companies James Pryor has joined the WGP
in Cairo. Kent Nelson has joined Frontier Group as sales & business
International Resources as VP development executive,
Dutchman Jaap business operations. bringing with him 11 years’
Huijskes (pictured) upstream oil & gas sector
will succeed Helmut Danish civil experience of geophysical and
Langanger when he engineer Dr wellsite operations with Baker
retires as EVP, Jan Behrendt Ibsø Hughes and Seismic Micro-
exploration and production, (pictured) joined Technology.
at OMV in September. ABS Consulting as
Huijskes spent four years in VP renewable energy services Justin Manley
Russia as project director and at its Houston headquarters (pictured) is the
technical director of Sakhalin last month. Since 2006, he Marine Technology
Energy before becoming EVP, has served as global director Society’s new
upstream major projects, of renewable energy at SGS VP government
for Royal Dutch Shell in The Industrial in Germany and and public affairs. Manley,
Hague last year. prior to that worked for director of scientific and

faces
Zhou Shouwei
Richard D’Souza has been
appointed VP global business
DNV and Cowi Consulting
Engineers.
commercial business at
Liquid Robotics, succeeds
Karen Kohanowich, director
(pictured), one of the operations for KBR subsidiary Sergio Zubelli of the National Oceanic &
pioneers of China’s Granherne. D’Souza, who (pictured) has been Atmospheric Administration’s
offshore industry, joined KBR as VP deepwater named as Expro’s (NOAA) undersea research
has accepted an in 1999 and organically built regional director, program.
invitation to chair DNV’s a deepwater engineering Latin America.
recently established Greater group, served most recently He joined the oilfield service Mark Kalman has been named as
China Offshore Committee. as director of Granherne company in 2006 and served VP engineering at DeepFlex,
He is vice general manager Americas. Another recent as Latin America South have previously served as
of CNOOC and a member Granherne appointment is general manager and business intellectual property manager
of the Chinese Academy of that of Jim Cattanach development/technical at Halliburton and led the
Engineering. (pictured) as regional manager in Brazil. engineering and technology
subsea business groups at Wellstream’s UK, US
Mark Hurley takes office as development Malcolm Greener and Brazil offices.
SVP, crude oil and offshore, manager for Europe, (pictured) has
at Enterprise Products Africa and Asia, located in joined Reservoir Iuri Valmorbida
Partners on 1 March. He the consultancy’s UK offices. Group as managing (pictured) has been
joins Enterprise from Shell, Cattanach was previously director of its hired by Stabil
where he served most recently with IntecSea, having recently launched XDT Drill, a Superior
as president of its pipeline earlier worked for Cooper downhole drilling tools and Energy Services
division. Cameron, Coflexip Stena services division. He was company, to manage sales
Offshore, Mentor Engineering, with Anderguage for 14 years, and business development
TM (Mitch) Little Multiflex, FSSL and Vetco serving as managing director in Latin America. Based in
(pictured) has been Gray in a 30-year career. at the time of its sale to Rio de Janeiro, he previously
appointed managing SCF Partners and served as a commercial
director of Foster Wheeler USA president subsequently Grant-Prideco. representative for Christensen
Marathon Petroleum Robert Flexon will become Roder.
Norge. Little, who succeeds CEO of the parent company David Cooke has stepped
Kristin Færøvik, served most on 1 June, replacing Raymond up from deputy regional Brian Kinkead
recently as general manager Milchovich, who will stay on as supervisor to regional (pictured) has joined
of Marathon’s worldwide non-executive chairman of supervisor for resource Oil & Gas UK in
drilling & completions the board and a consultant to evaluation in the Minerals the newly created
department, having earlier the company through October Management Service’s Gulf role of supply chain
held engineering posts with 2011. Region office. He began his director. He has over three
the corporation’s production career with the agency’s decades of upstream oil and
operations units in the US, Robert Saltiel predecessor, the US Geological gas experience, primarily with
Equatorial Guinea, Gabon and (pictured) has been Survey, in 1978. Halliburton.
Libya. named as president
and CEO of Atwood Serge Geraud Terry Nilsen has been appointed
John Bedingfield has been named Oceanics following (pictured) is DOF Seychelles country manager
VP, worldwide exploration the retirement of John Irwin, Subsea’s new West for Black Marlin Energy. He
and new ventures, at Apache. under whose 17-year rein Africa operations joined the Dubai-based oil
He joined the corporation in Atwood grew from a market and business & gas exploration company
1998 and was most recently capitalization of development director, based in as chief explorationist in
Australia region VP and $50 million to around Angola. The former Technip January 2009. BMEL recently

66 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 FACES
completed 1200km of 2D engineering consultancy Rex Tillerson, chairman and Centre for Energy, Petroleum
seismic off the southwest coast Atkins. CEO of ExxonMobil, and & Mineral Law and Policy at
of the Seychelles, with major former Texas governor William Scotland’s Dundee University.
leads reported in 15-1500m Gary Thirkettle has been P Clements Jr, are scheduled to
water depths. appointed business collect awards for corporate Dr John Evans
development manager for citizenship and public (pictured) has been
Colin Erskine has been Gardline Marine Sciences’ service, respectively, from appointed general
appointed sales manager for metocean capability. Tasked the Smithsonian Institution’s manager of ESR
Aberdeen-based UTEC Survey with managing international Woodrow Wilson International Technology’s
Construction Services, tasked growth and product Center for Scholars at a dinner Aberdeen operations. He was
with developing new growth development, one of his first in Dallas on 16 February. previously with Germanischer
opportunities in northwest moves has been to establish Lloyd and prior to that was
Europe, the Mediterranean a metocean facility in the Sir Robert Wilson, chairman of with Advantica for 15 years,
and West Africa. He was company’s existing Perth, the BG Group since 2004, has at one point managing its
previously director of sales for Western Australia office. become the first patron of the Spadeadam test site.
Ashtead Technology.

Des Swart (pictured)

has joined Dubai-
based Specialist
Services as sales
engineer, focusing
on the company’s fire-rated
products, including doors,
windows and wet units, for the
offshore industry.
WINC
WI NCH
NC H LIINEES | TETTHE
H RS | HE
HEAV
AVY
AV Y LIF
LIFT SLI
LI SLI
LING
N S | WORKIN
NG I G LINE
NES
NE S
Neil Hibbert has been appointed
key account manager for
safety and control at systems Winch lines that solve problems,
integration specialist Hima-
Sella. Other new appointments instead of creating them.
include Nathan George as sales
applications engineer and John
Chadwick as technical support RETIRE THE WIRE
group supervisor. You know the drawbacks of using wire in deepwater:
heavy, bulky, power-hungry equipment, and at some point,
Dr Chris Tierney has joined wire can’t support its own weight. Samson lightweight,
unmanned underwater vehicle high- performance synthetic ropes overcome the
software specialist SeeByte obstacles of wire rope.
as a senior development > Work faster, cut days off movements/installations
engineer. Two new > Light weight reduces deck load for winches
development engineers, Birgir and hardware
Thorgeirsson and Tom Anderson, > Neutrally buoyant, allows work at
have also joined the company. deeper depths
Samson offers more than just a rope.
Jim Land has stepped up from We work directly with customers to
MD to CEO at Aberdeen- meet project specific challenges by
based consultancy, training, designing appropriate, reliable,
e-learning and multimedia enabling synthetic ropes
services company Cresent solutions. We call it
to focus more of his time on The Samson Advantage,
the international market, our customers call
particularly in South America. it peace of mind.
His successor
e prooduct.
u

as MD, Tracie www.samsonrope.com/

de k of Royal DSM N.V.
N.V
N
olyethylen

Watson (pictured), offshore

ethyl
nce polyeth

previously HR &
formance

finance director,
h performa
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takes responsibility for the

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Aberdeen office focusing on

M s hhig
Dyneema® is a registere
Dyneema is DSM’

the UK, Africa and the Middle

East.

Paul Glendinning has been

appointed chief electrical
engineer within the offshore
renewables business of

oe.oilonline.com OFFSHORE ENGINEER | february 2010 67

EVENTS
5/6 October Deepwater drilling 12/13 October Dynamic positioning. 1-4 November ADIPEC.
Call for papers & completions. Conference, Conference, Houston. Conference, Abu Dhabi.
Galveston. Abstracts by 15 April. Abstracts by 1 April.
Abstracts by 22 March. z www.dynamic-positioning.com z www.spe.org/events/adipec
z www.spe.org/events/ddc

Please send conference, 2-4 Subsea tieback. Forum & 24-26 St Petersburg energy forum.
exhibition and meeting entries, exhibition, Galveston. Forum, St Petersburg.
Looking ahead
and also calls for papers to: www.subseatiebackforum.com www.restec.ru z Oil & Gas UK, in
[email protected] 3-6 Oceantex. Conference & 24-27 CAPE IV – African Petroleum. conjunction with Step
exhibition, Mumbai. Congress & exhibition, Kinshasa, Change in Safety, is to
www.chemtech-online.com/ DR Congo. www.cape-2010.com hold the first ever UK Oil
events/oceantex & Gas Industry Safety Awards,
9-11 OI 2010. Conference & April acknowledging significant
exhibition, London. 12-14 HSE in E&P. SPE contributions to safety by

diary www.oceanologyinternational.com
9-11 Offshore West Africa.
conference, Rio do Janeiro.
www.spe.org/events/hse
individuals and companies
within the industry.
February Conference & exhibition, 13/14 Well control Europe. IADC The lunchtime event
9/10 E&P information and data Accra, Ghana. conference & exhibition, will take place 21 April in
management. SMi conference, www.offshorewestafrica.com Aberdeen. www.iadc.org Aberdeen and recognises
London. 10 Bundles vs pipe-in-pipe. SUT 13-15 Offshore Australasia. the importance of exemplary
www.smi-online.co.uk/events evening meeting, Aberdeen. Conference, Perth. behaviour by individuals
9-11 Underwater intervention. www.events.sut.org.uk www.neoventurecorp/2010/oac and companies in creating a
Conference, New Orleans. 11/12 International standards. 14 IRM. SUT evening meeting, safety culture that is based
www.underwaterintervention.com OGP/PTT workshop, Bangkok. Aberdeen. www.events.sut.org.uk on the concept of personal
11/12 Subsea 2010 – Riding the next www.ogpstandardsworkshopbkk.com 14/15 Global marine renewable responsibility for safety, pro-
wave. Subsea UK exhibition & 12 Annual dinner. IMarEST/SUT, energy. Conference, Seattle. active and vigilant behaviour
conference, Aberdeen. London. www.events.sut.org.uk www.globalmarinerenewable.com and open communication.
www.subsea2010.com 16-18 Offshore Asia. Conference 21 UK oil & gas safety awards. Awards will be presented
17 Renewables. SUT evening & exhibition, Kuala Lumpur. Oil & Gas UK/Step Change for several categories:
meeting, Aberdeen. www.offshoreasiaevent.com in Safety luncheon, Aberdeen. Safety Leadership; Safety
www.events.sut.org.uk 16-18 Oil & Gas Africa. www.oilandgas.org.uk Representative of the Year;
18 Global offshore prospects. SUT Conference & exhibition, 21/22 UTC – Underwater Preventative Safety Action;
evening meeting, London. Cape Town. Technology. Conference, Most Promising Individual;
www.events.sut.org.uk www.oilandgasafrica.co.za Bergen. www.utc.no and Award for Innovation in
22-24 Oil & gas pipeline integrity 22/23 LNG. Conference, London. 23/24 LNG16. Conference & Safety – Company.
management & maintenance. www.smi-online.co.uk/events exhibition, Oran, Algeria. In addition an award will
Marcus Evans conference, 22-24 Getenergy E&P. Conference www.lng16.com be presented for Services to
London. & exhibition, Kuala Lumpur. Safety, which recognises an
[email protected] www.getenergyevent.com May outstanding contribution by
23/24 OilTech Baku. ITE 23/24 Coiled tubing & well 11-13 Uzbekistan international oil an individual towards the
conference, Baku. intervention. SPE/ICoTA & gas. ITE Group conference & Step Change in Safety vision:
www.oilgas-events.com conference, Houston. exhibition, Tashkent. to make the UK the safest
23-25 MPC2010 – Mediterranean www.spe.org/events/ctwi www.ite-group.com/events place to work in the oil and
petroleum. Conference & 23/24 Drilling HSE Asia Pacific. 12 Enhanced recovery. SUT gas industry.
exhibition, Tripoli. www.ief.ly IADC conference & exhibition, evening meeting, Aberdeen. For further details, go to
24/25 Safety. IMCA seminar, Singapore. www.iadc.org www.events.sut.org.uk www.oilandgas.org.uk
Singapore. 23/24 SUT technical. SUT 17-19 Heavy oil world. z The Houston-based
www.imca-int.com/events conference, Rio de Janeiro. Conference, Bahrain. Offshore Technology
24/25 Managed pressure drilling www.events.sut.org.uk www.terrapinn.com/2010/howm Conference will be adding
and underbalanced operations. 23-25 Intelligent energy. SPE 20/21 India drilling & exploration. two new conferences to its
SPE/IADC conference & conference & exhibition, Utrecht. Conference, Mumbai. portfolio of events: Arctic
exhibition, Kuala Lumpur. www.intelligentenergyevent.com www.idec2010.com Technology Conference to be
www.iadc.org 23-25 Deepwater development. 23-26 Middle East Petrotech. held in February 2011 in
24/25 Utilising associated gas. SMi MCE conference & exhibition, Exhibition & conference, Houston and OTC Brazil in Rio
conference, London. Amsterdam. www.dd2010.com Bahrain. www.mepetrotech.com de Janeiro during October
www.smi-online.co.uk/events 24/25 Oil & gas satcoms. 24/25 Oilfield corrosion. SPE 2011. Registration is now
Conference, London. conference, Aberdeen. open for OTC 2010 to be held in
March www.smi-online.co.uk/events www.spe.org/events/ofcs Houston, 3-6 May.
2/3 Deepwater drilling. IADC 24-26 Australasian oil & gas. 26/27 Oilfield scale. SPE For further details go to
conference & exhibition, Rio Conference & exhibition, conference, Aberdeen. www.otcnet.org
de Janeiro. www.iadc.org Perth. www.aogexpo.com.au www.spe.org/events/oss

68 OFFSHORE ENGINEER | february 2010 http://oe.oilonline.com

Western Africa
Energy Week
2 - 4 June 2010, UPSTREAM * MIDSTREAM * DOWNSTREAM
La Palm Royal Beach Hotel, Accra, Ghana Oil/Gas-Energy-Future Fuels

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DISPLAY ADVERTISERS

display advertising
Advertising representatives Display advertisers February 2010
Australia: Aker Solutions As 2
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Tel: +61 8 9443 9712 Allseas 11
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EBB AND FLOW
‘The most telling evidence of the disconnect
between insinuations and reality are the results of
the first two auctions for operating Iraqi oil fields.’

by Prof
Michael J Economides

War. What was it good for?

t was, and still is, an unassailable dogma throughout the Last December the second bidding of Iraqi oil fields was

I Middle East, among barely beneath-the-surface

anti-American European intellectuals, and certainly, the
American left: the United States went to war in Iraq in 2003 just
conducted and the two supergiant fields on the block went to
Royal Dutch Shell (with Malaysia’s Petronas) and the second
went to Russia’s largest oil company, Lukoil (with Norway’s
for oil. For those people, including many in the Barack Obama StatoilHydro.) The fields, Majnoon and West Qurna Phase 2, are
administration and its supporters, the idea has been quite world class, each holding more than 12 billion barrels of oil.
convincing. America’s intervention, augmented by the fiasco A group headed by China’s CNPC won the Halfaya, the third-
of the never found weapons of mass destruction had little to do largest field, with over 4 billion barrels in reserves. Other
with the war of ideologies and world views that precipitated the smaller fields went to companies from Japan, Russia (Gazprom),
carnage of September 11, 2001, but was motivated by a George Turkey and even Angola, some of which are not particularly
W Bush administration cynical and self-serving motive: oil. The friendly to the United States and, certainly, not to its Iraqi war
notion was also very convenient to transfer blame and ignore effort.
very real problems in the Middle East, where there is virtually Showing a marked independence from the expectations of the
no democracy in the Arab world and where militant Islam has conspiracy and the war-for-oil theorists, the Iraqi government
become a crutch for many disaffected youth, trying to cope with put enormous demands on the would-be-winners of the oil
societies chronically unable to absorb modernity. contracts and allowed very small margins for profits. The
As usual, the reality, burdened by truisms, is quite different. sizes of the projects and the risks that will be present, even in
As early as 2005 I did a simple calculation and wrote about it. the best of cases, are so demanding that only Big Oil, namely
If America went to war in Iraq just for its oil it would be one of ExxonMobil (already operating the West Qurna Phase 1),
the stupidest decisions in geopolitical history. Based on the cost Chevron and ConocoPhillips could have realistically been
of the war, if the United States were to take all Iraqi oil, sell it to interested. The very thin margins offered by the Iraqis made
the open market and give no money back to the Iraqis, it would their oil bids not very attractive for the US supermajors.
take 30 years to pay for the cost of the war. That number now Even so, the Iraqi oilfields, languishing for years, first
has escalated to about 100, based on current Iraqi production because of the draconian sanctions during the Saddam Hussein
and oil prices. years and the ravages of war since then, are perhaps the most
The most telling evidence of the disconnect between potentially prolific in the world. Over the next decade Iraqi
insinuations and reality are the results of the first two auctions oil production is expected to top 11 million barrels per day,
for operating Iraqi oil fields, done by the Baghdad government. quadrupling the current production of 2.5 million barrels per
Of 16 awarded, only two were won by American companies, both day and vying to surpass Saudi Arabia as the world’s biggest oil
in the first round. producer. In the process it will make a mockery of constantly
re-surfacing Peak Oil talk.
One should not count American companies out of Iraq yet.
While foreign oil companies, such as Chinese and Russian are
far lower-cost and risk-taking operators, American companies,
and not just the big three, have clearly set the standard for
difficult or technically challenging to produce fields. It is very
likely that after the initial and cumbersome but less challenging
steps are taken, American companies will enter the fray as
minority operating partners and important stakeholders.
But the transparency of the post-war oil bid rounds and the
resulting winners show quite an independent Iraqi government
from the interests of its occupiers.
And if Iraq emerges as a relatively stable country and a
reliable provider of the world’s most important commodity, the
future historian may give the George W Bush Administration
and its war effort some credit, no matter how conventional
ideological orthodoxy has preached and almost assuredly will
continue to do so in the future. OE
z Michael J Economides is a professor at the Cullen College of
Engineering, University of Houston, and editor-in-chief of the
Energy Tribune. The views expressed in this column do not
necessarily reflect OE’s position.

74 OFFSHORE ENGINEER | february 2010 oe.oilonline.com

 SPE Intelligent Energy
Delivering Value – Creating Opportunities
Conference & Exhibition 23–25 March
Jaarbeurs Centre, Utrecht, The Netherlands

HIGHLIGHTS

• Record number of submissions SPE Intelligent Energy provides the Oil & Gas E&P
– 331 from 120 companies industry with a platform to debate fully integrated
• 139 technical papers operations and the issues of people, process and
• 18 Technical sessions change management in a collaborative conference
• 3 Plenary sessions and exhibition environment.

Confirmed Plenary Speakers for 2010

Andy G Inglis, Chief Executive Officer, BP Exploration & Production
Jon Rigby (Moderator), Managing Director, UBS European Oil and Gas Research
Andrew Gould, Chairman and Chief Executive Officer, Schlumberger
Amin H. Nasser, Senior Vice President, Exploration & Producing, Saudi Aramco
Pieter Kapteijn (Moderator), Director Technology and Innovation Maersk Oil and Gas AS
Timothy Probert, President, D&E and Corporate Development, Halliburton
Ashok Belani, Chief Technology Officer, Schlumberger
Margareth Øvrum, Executive Vice President, Technology and New Energy, StatoilHydro
Samer AlAshgar, Manager EXPEC Advanced, Research Center Saudi Aramco
Melody Meyer, President, Chevron Energy Technology Company
John Brantley, General Manager for Chemicals and Petroleum, IBM
Denis Lemarchal, Director of Block17, Total
Bernard Looney, Managing Director, BP North Sea
Gerbert Schoonman, Asset Manager – East (EM), Brunei Shell Petroleum Co Sdn Bhd

THE OPPORTUNITY

Contact us today to discuss how working with SPE Intelligent Energy 2010 can deliver high quality
leads to support your business development plans

E [email protected] T +44 (0)20 8439 8890 F +44 (0)20 8439 8897

Registration now open, visit

www.intelligentenergyevent.com/register
Organised by:

OE_M_4_SPE_InteLEng_FP.indd 1 27/1/10 18:30:15

 ERD World Records
Longest well, highest ratio
g 10-DR-0006

Record-breaking well
Putting the nose on the dog
g © 2010 Schlumberger.

10:1

6:1
4:1
p is a mark of Schlumberger.

3:1

2:1
Measurable Impact

Redefine extended-reach drilling boundaries by 2,000 ft. Schlumberger experience, workflows,

and reliable tools are redefining what’s drillable. The step-out, TVD ratio plot, also known as
a dog’s head diagram, got a new nose thanks to an operator in Qatar and Schlumberger,
who drilled the longest, highest-ratio well ever. The 40,320-ft well set 10 world records,
including the highest step-out ratio of 10.485.

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Global Expertise | Innovative Technology | Measurable Impact

OE_M_4_Schlum_ERD_FP.indd 1 27/1/10 18:25:27

 Special section produced by World Investment News

environmentally-sensitive Niger Delta.

Security has become a watchword for
the Niger Delta, home of the Movement

NIGERIA
for the Emancipation of the Niger Delta
(MEND), a militant group that has been
linked to attacks on foreign-owned
petroleum companies in Nigeria.
As petroleum is such a large part of the
country’s economic base, the govern-
ment has been working to stop attacks in
the region. Part of those efforts included
a ceasefire and an offer from the govern-
ment of amnesty. The amnesty program
offered monetary support to help
members of MEND and other Niger
Delta militant groups finance a new life
and seek lawful employment.
The government is working to ensure the
country receives its dues from the petro-
leum riches that lie within its borders
and maritime limits. It is considering
a Petroleum Industry Bill, backed by
President Umaru Yar’Adua, that would
restructure state-owned Nigerian
Energy ball

National Petroleum Corporation as a

for-profit company. The bill also would
redistribute un-produced fields that are
under permit to foreign oil companies,

NIGERIA
raise taxes and royalties, and increase
employment of Nigerians in the sector.
The country itself has about 150 million
inhabitants, which provides a large pool

The new era of energy from which to draw local talent.

The Nigerian government set goals for
local content of oil projects at 70% by
2010. During their bidding process,
petroleum companies must include a
Nigeria confirmed its importance to the global petroleum economy in 1971 with Nigerian content percentage as part of
its entry into OPEC and hasn’t looked back. According to OPEC’s 2008 figures, the bid. Companies operating in Nigeria
Nigeria exports about $76.8 billion worth of goods, with petroleum exports have several ways they pave the path
comprising $74.7 billion of that figure. toward local content, but they all point
to experience-building through hiring
Production rates are just over 2 million Beyond that, operators seem to be and training indigenous employees,
b/d, with most of that exported, and frequently reporting finds in the deep- education through providing scholar-
32.8bcm of marketed natural gas water area offshore Nigeria, which will ships, or a combination of the two.
production, with 20.5bcm exported. drive those figures up. Chevron features prominently in
The country has around 37.2 billion The country is ranked seventh glob- Nigeria’s oil-rich history: in 1963,
barrels of crude oil reserves and 5.2 tcm ally in terms of proven natural gas Chevron found the Okan field, the
of natural gas reserves. reserves, although much of that lies in first offshore oil-producing field in the

AMANA Amana Consortium, a consulting projects on Amana’s reference list is doing FPSO integration in the country,’
agency, has helped pave the way for ExxonMobil’s Erha project, where Amana Amana says. About this last endeavor, he
many large projects – in the oil industry provided technical support services for adds, the company is ‘obviously open to
and out and for local and foreign the FPSO activities. new partnerships regarding the steel
interests – to come to completion. Dr. ‘We are now targeting the fabrication for the offshore vessels.’
Edet J. Amana, chairman and CEO, says establishment of a steel fabrication Within the next five years, Amana aims
the company’s involvement has ranged facility for production of items needed to become an effective player in the steel
in projects from oil infrastructure in offshore oil & gas exploration and fabrication and vessel manufacture and
like FPSOs to national projects like production, and the service and services areas. He says, ‘This is very
Dr. Edet J. Amana highways, university campuses and maintenance of vessels and offshore important because it will help us make
Chairman CEO hospitals in the course of its 35 years. production platforms, to the extent a mark and be competitive with other
AMANA
CONSORTIUM When it comes to oil, one of the main that in the very near future we will be companies in the industry.’

Full interviews and company profile at www.winne.com OFFSHORE ENGINEER I febr u a r y 2 0 1 0 

 Special section produced by World Investment News

country, and later ”The daily consumption of petroleum for our population alone is 30 million
built the first gas litres per day and currently our refineries are not producing more than 12
processing plant million. We are doing very well in the upstream sector, but Nigeria needs
in Nigeria, which businessman to come and invest in the downstream sector, I mean, to invest
supplies pipeline in refineries and petrochemicals”
quality gas for Mr. Babatunde Ogun
domestic use. President of PENGASSAN (Petroleum and Natural Gas Senior Staff Association of Nigeria)
Mr. Andrew
Fawthrop Currently, says
Managing Director, Andrew Fawthrop, Chevron Nigeria adopted a new approach He graduated with excellent grades
Nigeria/Mid-Africa SBU Chairman and (described as the Global Memorandum of and subsequently Chevron hired him.
CHEVRON NIGERIA LTD
MD for Chevron’s Understanding – GMOU) to community ‘The good thing about it is that when
Nigeria/Mid-Africa engagement in the Niger Delta, in order to you enter the company after it, you
Strategic Business better address the needs of the people in feel you owe the company something
Unit(SBU),Chevron the areas where the company operates. and you work harder to show them
is executing over Chevron’s commitment to Corporate you are grateful and deserved it. There
10 large proj- Social Responsibility (CSR) is organic are many Nigerians like me, out there,
ects in Nigeria.
For example, the
Mr. Femi Odumabo Agbami deepwater
General Manager, Policy, field project was
Government and Public completed and
Affairs Department
CHEVRON NIGERIA LTD commenced opera-
tions in mid 2008,
with peak production attained earlier than
originally scheduled.
‘We have had several successes in our deep-
water exploration activities,’ Fawthrop
says. The company’s gas program is
making good strides with the Escravos
Gas-to-Liquid project, employing about
6000 people.
In 2008, Chevron’s gross production was
about 300,000b/d and in 2009 that figure
was 550,000b/d.
Chevron expects to bring several large-
scale projects to completion over the
next five years. In doing so the company
expects to increase local content on each
of the projects.

“Chevron employs One of Chevron’s trainning sessions

that the company had sent to school
about 3000 staff; and they are now succeeding in their
counting contractors and
“Odumabo says he respective professional lives.’
found an ad in a local Chevron is also focusing some of its
suppliers, the company
paper for scholarship CSR dollars on health, a critical issue
indirectly employs nearly in Nigeria and the Niger Delta where
funding, applied and
20,000 in Nigeria.” healthcare services are not normally
won the funding in available due to swamps and rivers.
The supermajor, which operates onshore the late 70s to study ‘We have been using the riverboat
and in the Niger Delta’s near-offshore engineering.” clinic, which is an innovative system
areas as well as in the country’s deepwater we use to deliver medical care to
areas, works to keep its enterprise closely to the company culture and it is roughly 3000 indigenes every month
linked with the community and has a commendable, Fawthrop believes. For in 33 different communities along the
strong commitment to local content. example, the company has a large schol- creeks, that otherwise would not have
‘Our operation in the swamp and shallow arship program that benefits over 8000 had easy access to medical facilities,’
waters offshore is very closely linked to Nigerians annually. Femi Odumabo, Odumabo says about one of Chevron’s
our community stakeholders through now an Executive Director and the health-related CSR programs. In 2009
economic empowerment or local commu- GM for policy, government and public Chevron Corporation donated $30
nity content patronage. Gas produced affairs of Chevron Nigeria, himself is million to the Global Funds, to health-
from those leases is primarily sent an example of a local beneficiary of that care initiatives in the fight against HIV/
into the domestic gas sector,’ In 2005, educational assistance program. AIDS, malaria and tuberculosis.
 O F F S H O R E ENGINEER I februar y 2010 www.winne.com
 Special section produced by World Investment News

NETCO
With an engineering pedigree that includes work on Chevron’s Onshore Gas Plant for Phase
1 of the Escravos Gas Project and topsides modules for Chevron’s Agbami project, National
Engineering & Technical Company Limited (NETCO) has ambitions to become responsible
for up to 80% of the petroleum-related engineering work carried out in Nigeria.
NETCO, a wholly-owned subsidiary companies to come to Nigeria to invest
of Nigerian National Petroleum and open up the industry for more
Corporation (NNPC) since 1996, involvement by NETCO and other
Mr Samuel O. Babatunde
originated as a 1988 joint venture indigenous engineering companies in Executive Director of Operations
between NNPC and Bechtel in an effort the execution of engineering projects.’ Engr. Kenneth Ejuoneatse
to provide local engineering talent Ejuoneatse says it’s important that the Managing Director
NATIONAL ENGINEERING & TECHNICAL
for petroleum engineering projects. National Assembly approves the PIB COMPANY LIMITED (NETCO)
Currently, NETCO carries out about half because doing so will not only benefit
of all the Nigerian oil & gas engineering contractors, oil & gas companies and the and participation of the people from
design activities. nation as a whole, but it will also restore the oil production area in turn will
‘NETCO staff strength stands at 250 with confidence to potential investors.’ NETCO translate into the development of the
NNPC contributing 100 employees. The is fully committed to the domestication local communities,’ he says, stressing
annual turnover of the company in 2007 engineering capacity and capability within that stability is paramount if the country
was four billion naira and five billion the oil & gas industry in order to grow and wants to see more investment funds.
naira in 2008. This shows a 25% growth export these services to other countries ‘Nigerian crude oil is largely a sweet
in one year,’ says Samuel O. Babatunde, within and outside the West African sub- grade, which is in high demand which
the company’s executive director of region’ Netco’s MD reinforces. is why everybody wants to come to
operations. In May 2000, NETCO Nigeria has been working to restore Nigeria and invest in our activities. The
became the first indigenous Nigerian that confidence in another way as well investment opportunities in Nigeria
company to receive the BVQI ISO 9001 – through an amnesty offer to miltants guarantee high profit expectations for
Quality Management System Certificate. in the Niger Delta region, an effort anyone who is willing to invest in this
‘The PIB (Petroleum Industry Bill) Ejuoneatse calls laudable. ‘Stability in market’ he adds. So, don’t give up on
provides opportunities and directives that region would guarantee security and Nigeria yet, stay tuned as we are about
that will enable more international oil increase oil production; and involvement coming up by God’s grace!’

SWIFT
Mrs. Pat Otrofanowei
Managing Director
Mr. Aya Otrofanowei
Operation Director
SWIFT RENTAL CARS LTD.

Formed in 2004 to meet ‘We are very particular about

the growing demand for getting quality vehicles,
transportation, especially well-trained manpower
among oil and gas that would run the business
companies, Swift Rental taking safety as core to our
Cars set a goal of redefining operations,’ she says.
service standards in the car
rental industry in Nigeria. The company employs
Pat Otrofanowei, Swift’s over 300, and annual
MD, notes the company turnover exceeds N250
offers rental cars, million. Swift operates out
provides manpower, and of four locations –Ikoyi,
handles logistics for many the Muritala International
companies in Nigeria. Airport, Abuja, and Port
About 60% of Swift’s clients Harcourt – and plans to
come from the oil and gas expand to new locations.
industry, she says. Some potential areas for
Swift’s fleet includes over 100 expansion, Otrofanowei
vehicles that include economy says, are Calabar, Bayelsa,
vehicles, luxury vehicles, and the new international
saloon cars, vans and buses. airport in Asaba.

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LEASING PLC

Engr. Gabriel Oseloka Engr. Charles A. Osezua

OWEL-LINKSO GROUP Group Executive Director Chairman/CEO
OWEL-LINKSO GROUP OWEL-LINKSO GROUP

Mr. Christian
Chigbundu
Country Manager
West Africa Gas Pipeline aiming
HERTZ NIGERIA

Mr. Emeka Ndu

to promote regional development
Managing Director Since 2006, Linkso Nigeria Ltd has been working with the West Africa Gas Pipeline, among
LEASING PLC.
other projects. The WAGP – a 678km-long pipeline reaching from Nigeria’s Escravos region of
The oil & gas industry may the Niger Delta area to Benin, Togo and Ghana – is the first regional natural gas transmission
keep vehicles in motion,
but Hertz aims to keep the
system in sub-Saharan Africa.
industry itself going. Hertz
Nigeria is part of C&I Leasing The country is seeing the With those plans for growth Oseloka Group Executive
Plc, which began operating introduction of major pipe- the management is keeping Director says.
in Nigeria in 1990. Together, line networks stemming the doors open for making Linkso is involved in two
they cover both short-term from the implementation of mutually beneficial part- partnerships: Audubon
(Hertz’s specialty) and long- Nigeria’s gas master plan. nerships. ‘We are willing Engineering of Houston for
term (C&I’s focus) vehicle ‘We plan to support the pipe- to go into partnership with engineering and Marking
leases in Nigeria.
line compa-nies with pipe- foreign companies espe- Services International of
About a decade ago, Hertz’s
Nigeria business was 85% line integrity manage- cially in new areas we Milwaukee, Wisconsin,
to 90% oil related. Emeka ment services,’ says Engr. intend to go into like asset for the local manufacture
Ndu, C&I’s MD, says that Gabriel Oseloka, group integrity management, of safety markings and
number has dropped so that Executive Director of pipeline integrity, etc.,’ signage.
oil & gas clients represent Owel-Linkso Group.
about 40% of the company’s In the anticipation of seeing
customers. ‘We felt that we more pipeline networks
were unduly exposed to the related to the master plan,
vagaries of the oil industry
Linkso is positioning itself
which is traditionally
cyclical,’ he says. ‘One of to be able to provide pipe-
the objectives we have in line integrity management to Linkso Nigeria Ltd.
the short-term strategy is to international partner compa-
grow this number again.’ nies. ‘In view of these areas
While Hertz serves well- of endeavor, technical part-
known multinational nerships would be of great
companies, it also invests Linkso Nigeria Limited is the
benefit to our company and Services Division of the Owel-
its focus on small and we are very open to them,’
medium-sized Nigerian Linkso Group that provides
Oseloka says. multidisciplinary service to the
companies that are clients. Nigerian Oil and Gas industry
In addition to that project,
‘We know their business spanning Engineering &
will grow in the future, and Osezua notes, Linkso Nigeria
Consultancy Services, Technical
we will be there to assist is involved in about seven Manpower Service, NDT/DT
them with a privilege fleet projects, including several Inspections & Certifications and
management program,’ for Addax, Shell and Total. Project/Quality Management
Services. LAGOS HEAD/OFFICE
Christian Chigbundu, country Linkso’s management capa- Plot 23 Akin Olugbade Street,
manager for Hertz, says. bilities support the onshore The core Business strategy Victoria Island, Lagos State.
‘All our vehicles are and offshore oil industry by remains to continue providing Tel.: 234 - 1 - 4616570,
brand new and part of the bringing together employees these same services while 7410677, 7406659, 7405937
company fleet for no longer retaining and expanding the
and technical expertise in Fax: 234 - 1 - 4616569
than 2 or 3 years. They are company’s share of the market in
related fields from around E-mail: [email protected]
controlled and inspected Nigeria and the Gulf of Guinea.
in regular times and our the world. The company
employs about 450. Linkso Nigeria Ltd. is NIS ISO Branches at
chauffeurs receive a special
Linkso boasts an annual 9001:2008 Quality Management PORT HARCOURT
and rigorous training to
System Standard certified, WARRI
be able to offer a quality, turnover close to $35 million
ensuring total compliance to LONDON
personalized service,’ Ndu and has contracts booked international standards and
says. ‘In Hertz we don’t play exceeding $150 million for meeting Customer satisfaction.
with security.’ over three years, Osezua adds.
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OE_M_4_NP_p008_NIGERIA.indd 1 29/1/10 15:55:12

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Lee Engineering and Construction Co. Ltd.

Lee Engineering and Construction

Company recently celebrated 1
million LTI free work manhours
on its West Africa Gas Pipeline
(WAGP) Gas Supply project for
Shell Petroleum Development
Company. With those hours, Chief L. A. Ikpea
the Nigerian engineering, Managing Director & CEO

procurement and construction

company has moved the pipeline
project closer to completion. of the project, commissioned by the Nigerian he was doing administrative work
National Petroleum Company. ‘We are sure for multinational engineering and
The project – being carried out in two to complete the project in line with specifica- construction companies.
phases – is intended to achieve stringent tion, quality and on schedule,’ Ikpea says. Lee Engineering employs 1000 people
WAGP gas specification, metering, moni- Additionally, the company is also across Nigeria and has an annual turn-
toring, and integrity-related work to renew working on the Ewekoro Power Plant over ranging from $30 million to $50
plant design life for another 20 years construction project at Ewekoro million. Ikpea says the company has had
and debottleneck the Utorogu gas plant Cement Factory in Ogun State in a growth rate of 50% since 2005.
from 270mmcf/d to 360mmcf/d, says Western Nigeria and the Ughelli East As Lee Engineering’s managing director,
L.A. Ikpea, Managing Director and Chief Heater Rehabilitation and Hot Water Ikpea won an award from the American
Executive of Lee Engineering. Embassy, citing Lee
The first phase included integrity and Engineering as a trans-
dew point related modifications at the parent and honest company.
Utorogu and Oben gas plants to meet The company has also been
the terms of the gas supply agreement. involved in several corporate
Phase 2 work includes installing online social responsibility proj-
metering, a quality monitoring system ects, including the building
and VSAT data transmission facilities of an orphanage, providing
at five Shell inlet points: Oben NAG, skill acquisition for the local
Utorogu NAG, Jones creek NGC, Odidi and host communities and
NGC and Escravos Beach NGC. a scholarship program. The
Chief Ikpea says Lee Engineering is company’s commitment to
commissioning the Utorogu gas plant social responsibility and
and the Oben plant. ‘The Utorogu gas philanthropy has won him
plant is the major gas hub for Nigeria’s recently the Peace Award
economy, and every eye in the country is from the Nigerian Television
looking at this project for its importance Authority, a popular government-
in economical terms,’ he adds. owned TV station in Nigeria.
To carry out its work on the WAGP
project, Lee Engineering has been “Nigeria’s poor image abroad is largely due to the media painting a negative
working with companies around view of the country by covering certain aspects of Nigeria and not emphasizing
the world, including Shell, ABB and the actions the federal government is taking to fight corruption, stabilize the
Frames Process Int., B.V. Holland. The situation in the Niger Delta, develop the economy and portray the investment
project is projected to be complete in opportunities the country has to offer” Chief L. A. Ikpea
June 2010.
The company, founded nearly two decades Pump Change-out for Shell Petroleum The company has also received
ago, is also busy at work on a second project Development Company. awards from the Warri South Local
– the rehabilitation and reconstruction of An administrator by background, Government of Delta state in the
Okrika Jetty, bombed by militants in 2005. Ikpea decided to found the company Niger Delta region for contributing
The company has completed the engineering in the early 1990s when he saw room immensely to the socio and infrastruc-
phase and has entered the procurement stage for an indigenous EPC company while tural development of the society.

PORT HARCOURT SITE OFFICE LAGOS OFFICE OPERATIONS BASE

LEE Engineering Site, 99, Opebi Road, Valley View Plaza, P. O. Box 9331, Ikeja, House 4, Crystal Palace Estate,
Port Harcourt Refining Co. Ltd. (PHRC Yard) Lagos. Nigeria GSM: +234-80-39600100 CORPORATE Along N.N.P.C. Housing Complex Road, Edjeba P. O. Box 3101,
Alesa - Eleme, Rivers State. EMAIL: [email protected] Warri, Delta State. GSM: +234-80-34497685,
UNITED KINGDOM LIAISON OFFICE ITALY LIAISON OFFICE - LEE International Services S.R.L 80-34103812, 80-38388330
FullBingley
126, interviews
Court,and companyClose,
St. Andrews profile at www.winne.comViale Matteotti, 39 22012 Cernobbio (Como)
Canterbury, OFFSHORE
EMAIL: ENGINEER I febru a r y 2 0 1 0
[email protected] 
Kent CT1 2SX. Mobile: +44-79-57390130 TEL: +39 331 9361668
EMAIL: [email protected]
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ORGITAL

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advantages of the free zone, MANSFIELD “By focusing

INTELS as a hub for all of the Gulf of on innovative
Guinea, Cortesi says. ‘Nigeria solutions to the

Operating in the delta

gives us the better and widest challenges
business opportunities and faced by our
clients, we
the facilities of Onne gives us achieve
Thanks to its relevant experience in the West Africa logistics, the possibility to extend such better results,
shipping and transportation sectors, Intels Nigeria Ltd. managed opportunities, for example to improve profitability of our
, the Join Development Zone customers and enable new
successfully the petroleum industry s' ' biggest challenges. technology to be deployed in
of Sao Tomè and Principe,
our country. This enhances the
‘Our idea was to develop a Despite the years of strife or we can serve areas in opportunity to train Nigerians,
“one stop base concept” in and unrest in the Niger Angola such as Cabinda. The provide employment and
Nigeria, similar to other Delta, Intels has remained next step is to continue our contribute to the transfer of
regions of the world like committed to the region, Volpi growth in all West Africa,’ technology with the development
of the Nigerian content.”
Aberdeen, Peter Head and says, adding the company he says. For now, though,
Stavanger in the North Sea continued ‘investing and the company will be concen- Mansfield Energy, providers
for example,’ Volpi, MD of developing during the diffi- trating on the OML58 of drilling and well
Intels and Orlean Invest, cult years when the industry contract it recently received. completion solutions for
explains. ‘Since the material seemed to want to move out ‘Most of the valves for this companies operating in West
for the oil industry is widely of the Niger Delta area. We project will be assembled, and South Africa, is working
imported from overseas, we believed tested and painted locally. on technology that improves
saw a strategic advantage in in the In order to meet the highly the performance and
developing our concept of people demanding project’s tech- profitability of reservoirs.
‘One of our services we are
oil service center within the and we nical requirements, the plant
very excited about at the
Nigerian Port Authorities decided has been upgraded with a gas moment is a simple robust
premises. This way each to stay.’ testing bunker,’ Cortesi says. and reliable sand control
company operating in When it While Cameron gets to work on screen with a nozzle based
the sector has a regional comes the OML58 contract, Orbital inflow control device (ICD)
Mr. Andrea Cortesi
distribution center where Managing Director to local and Oranges is awaiting designed for optimization
all services are available.’ CAMERON VALVES c o n t e n t , installation on a project for of production and increase
‘Our commitment to the & MEASUREMENT
Cameron Addax. Akin Awomodu, MD recovery from wells in
WEST AFRICA LTD
Nigerian oil industry has Valves & of Orbital and Oranges, says reservoirs by generating a
been to develop the plat- Measure-ment West Africa Addax Petroleum awarded the controlled pressure drop
between annulus and base
form (through ports and has hit levels exceeding 80% company the work on an BW
pipe and hereby achieve a
camps) so to allow an oper- in terms of human resource Offshore vessel being deliv- uniform inflow profile along
ator to establish in the involvement. While the raw ered to Addax. Installation, he the well,’ says Dapo Oshinusi,
country without having materials have been sent to notes, is slated for 1Q 2010. managing director and CEO of
to invest heavily in infra- Nigera pre-machined due to The company is on standby Mansfield Energy Nigeria Ltd.
structure,’ Volpi says. ‘Each local lack of availability, the for an ExxonMobil project. Since its 2002 founding,
company can concentrate company has increased the ‘We would be doing mainte- Mansfield has provided
on their core business, while capa-city of the size of valve it nance work on two of their completions and related
outsourcing facilities tailor can make, Andrea Cortesi, MD platforms,’ Awomodu says. ‘At oilfield services to clients
such as Agip, Chevron, Shell
made for their needs in term of Cameron V&M West Africa, says. the moment we are waiting
and Total as well as marginal
of offices, houses, storage Cameron plans to use for a go ahead and that will field operators. Oshinusi
areas and warehousing.’ Onne and its facilities and be a major work for us.’ says Mansfield is open to
forming partnerships with
O & O Nigeria Ltd. provides high multinational and foreign
ORBITAL & ORANGES quality technical and expert services companies, especially those
in the areas of project management for with a similar ‘approach to
procurement, welding, electrical and instrumentation logistic, professionalism, providing
crane and heavy duty and environmental services to the oil and innovative solutions without
gas industry. Please tell us more about the company services and compromise to quality, health,
safety and environment
how are they improving the Nigerian economy?
(HSEQ) requirements.’ In fact,
Mr. Akin Awomodu Oshinusi says, HSEQ is one
Managing Director Mr. Akin Awomodu: We are doing our business in line with the local content of the company’s prime focal
ORBITAL & ORANGES policy because right from inception we adopted a 100 per cent participation points. In the next five years,
NIGERIA LTD
of local engineers and technicians and have successfully blended all of them he says, ‘Our goal is to be the
to form Orbital and Oranges Ltd. In 2005, we had the first major project for Addax involving preferred indigenous service
one of the IPSOs that belongs to EW Offshore. It was a two-year project which involved offshore company in the oil and gas
equipment fabricated in Singapore that we brought to Nigeria to modify it to suit the purpose for sector in Nigeria known
which they intended to use it here. We were involved right from the fabrication, welding, piping, for professionalism with
commitment to quality, health,
instrumentation and the electrical aspect and the offshore installation of this Minimally Fruit.
safety and environment.’
We were about the second company to handle such a project in Nigeria after Nigerdock.
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 Special section produced by World Investment News

Oildata sees its future in gas. The company, which

OILDATA concentrates on providing rigless workover services In the drive for Emval
in brownfields, marginal fields and isolated fields, Holdings Ltd to become
Mr. Emeka C. Ndu a complete well services
Managing Director aims to do 20 modular gas plans in the next decade, company, the company
OILDATA LOGGING
SERVICES says Emeka C. Ene, MD of Oildata. has embraced advanced
slickline services.
‘We intend to be
‘Currently, the company focuses on its roots do many things like horizontal wells, tractor Chief Uche Obidi able to use slickline
with workover services. ‘We are able to come a thing among many others.’ Managing Director methods to render
in and resuscitate a well in a matter of days Emeka views Oildata as ‘a service EMVAL
HOLDINGS LTD.
services that electric
and weeks instead of months,’ says Ene. company without borders.’ As such, he and Vice-Chairman line companies do.
‘We do not have a deployment challenge; says, Oildata deploys services wherever PETAN We intend to be able
we can deploy all possible techniques to the need is, ‘be it South America, South- to use tools that will
acquire data and solve the problem. We can East Asia or in Europe.’ enable us operate in highly deviated wells.
Also, in the wellhead area, we are developing
our own shutdown system,’ says Chief Uche
CISCON HYPROPS Obidi, Emval’s MD.
The company, founded in 1983 and now
Mr. Shawley J. Coker Ciscon started with tubular and rental employing about 80, entered the world of
Managing Director
CISCON NIGERIA LTD. services before moving into fishing tools wellhead maintenance in 1985 and was in
and Chairman PETAN and a machine shop. charge of the well services maintenance
workshop of Shell Petroleum Development
‘The multinational companies were Engineering and procurement specialists Company of Nigeria Limited, Western Division.
able to provide more services under Hyprops have been focused on a project The company, which has about a $7 million
one umbrella while we were a small to boost electricity generation in the annual turnover, has evolved into providing
indigenous one line service provider. country. For this project, says Okezie mainly mechanical slick line services, electric
line activities,wellhead supply and maintenance
This was our biggest challenge,’ Shawley Akwiwu, MD and CEO of Hyprops,
and valve instrumentation services.
Coker, president of Ciscon Nigeria and the company is providing engineering Looking forward five years, Obidi also sees
chairman of Petroleum Technology and project management services for the company as being able to assemble or
Association of Nigeria (PETAN), recalls, gas supply pipelines and facilities on build equipment in Nigeria. ‘We are also
comparing the company’s survival to the National Integrated Power Project building our own test unit and are making
the biblical tale of David and Goliath. (NIPP) where some pipelines are being plans to build our own sub-surface safety
‘We took on the challenge by providing run to some power stations in Delta valve control unit,’ he says.
different services so that when there is a and Edo states.
downturn in one service area, we focused In addition to NIPP, Akwiwu says, the
on the other areas.’ The company now company is finalizing other projects
EMVAL
has five key service lines and counts that entail procurement and facilities HOLDINGS
Chevron, ExxonMobil, Shell and Total maintenance. Akwiwu hopes to see the LIMITED
among its clients. company grow from its current size – it
Prompt, Reliable, Efficient
Coker has been focused on cleaning up the posted $32 million in turnover in 2008
HQ WARRI OFFICE
image outsiders have of Nigeria. ’One of – to five times its size in the next five No. 60 Sedco Road, EnerthenP.O. Box 852 Warri, Delta
(PETAN’s) desires is to tell those beyond years. International expansion is also a State, Nigeria Tel/Fax: +234 53 257965, 251042
our shores that there are still some honest plan, he adds.
people in Nigeria. Secondly we hope to One of the challenges in the industry, PORT HARCOURT
Emval Close, Off Shell Location Road Elelenwo,
educate the West that if they do business Akwiwu notes, is the duration of the K.M 16 PH/ABA Expressway Port-Harcourt, Rivers
with us, we can deliver effectively. We also tendering cycle for projects, an average State, Nigeria Phone: +234 84 793 903
seek to tell foreigners that if we can live in of two years. ‘This implies that you E-mail: [email protected]
their parts of the world, they can also live in cannot afford to be selective in your Website: www.emval.net
our part of the world, in peace,’ he says. tendering,’ he adds.

Ajamy Oil and Gas is building supplies, and installs safety equipment such as
AJAMY Nigeria’s largest incinerator extinguishers, environmentally-friendly incinerators,
for Chevron. Destined for fire blankets, and trains people on using the equipment.
the Escravos facility as part ‘Safety is a very critical issue; therefore, we
of Chevron’s commitment ensure that projects are begun and concluded in
to a healthy environment, a safe environment ’ he says.
the incinerator is the sixth In addition, the company provides oil spill clean
that Ajamy has delivered to out services. A major source of conflict between
the supermajor. the oil industry and the local communities in which
Mr. Adjarho The company, formed it operates is oil spills, Mohammed says, so his in training. As Mohammed says, the aim is to ‘train
Mohammed Oyibo in 1998, focuses on company works to clean those up and ‘give the people on local fabrication, so that we only buy in
Chairman and CEO providing services in environment a clean look.’ the foreign market what we cannot manufacture
AJAMY OIL & GAS LTD Ajamy, also firmly believes in training and developing
the environmental in the country. By so doing, we are creating job
sector. As such, says Adjarho Mohammed Oyibo, local talent. One step the company has made it to opportunities for the people and training them on
Chairman and CEO, the company produces, acquire a large property in Jesse, Delta State, to use relevant skills that would create jobs for them.’

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Weafri Well Services Company Ltd, founded

in 1988, is the Nigerian leading indigenous
well construction and well intervention
servicing giant in the oil and gas industry. Its
aim is to expand its activities and become a
leader in deepwater services. To reach this
goal, says Cletus Onyekwere, the company’s
Engr. Sir Okezie
MD, ‘we have standardized our equipment
Akwiwu to be able to render services with the depth
Managing Director requirements in deep offshore services.’
HYPROPS
Weafri was the first Nigerian company to offer
primary well construction and coiled tubing
well intervention capability, Onyekwere says,
‘Weafri is perceived to be at the forefront
of technology among the indigenous well
services companies because we try to bring
into Nigeria all technological innovations
in all the areas of services we offer to our
Mr. Cletus
customers, and we have stood competitively
Onyekwere with other multinational companies.’
Managing Director Over the years, it has completed projects for
WEAFRI WELL
SERVICES LTD Shell Petroleum Development Company,
Addax Petroleum, Agip, Total, PanOcean,
Chevron and ExxonMobil.
Warri-based Weafri, with an annual turnover of $135 million,
employs about 200 people and has new offices in Warri,
Port-Harcourt and Houston. ‘The strategic importance of our
overseas office is simply to help in the purchase of equipment
and sourcing of materials that we require to do our business
here,’ Onyekwere says.

In 2003, the Nigerian government Petro-Energy, which specializes

put marginal, non-productive fields in well services, completion
up for bid by indigenous exploration and pipeline construction, has
companies. One of those beneficiaries been busy installing permanent
was Midwestern Oil & Gas. The downhole gauges for ExxonMobil.
company teamed up with a partner to Incorporated in 1998, the company
successful bid on the Umusadege field, focuses on local content. ‘We
formerly operated by Elf Petroleum, used to hire experts for most of
and in 2005 began developing the field. the specialized services we were
It went onstream in 2008. Another well offering to the oil industry, but
– the UMU-5 well – at the field began now the number of experts have
production last year. reduced and the number of
Producing and selling oil is clearly indigenouspersonnelinthoseareas
a contributory factor to the Nigerian has increased,’ Effiong Ekpeyong,
economy, notes Okoene, MD of MD of Petro-Energy Resources,
Midwestern .‘Our economy is almost says. ‘We are eliminating over-
totally dependent on the production dependency on foreign labor and
and sale of oil and gas products are trying to focus on local labor.’
and anyone who is contributing to The proposed PIB, which
that is obviously contributing to the outlines local content and
economy of the country.’ Locally, investment standards, should be
he notes, Midwestern is busy encouraged, Ekpeyong says. It
developing the field in Kwale, Delta ‘clarifies the rules of engagement’
State. Another well is expected to be for investors, he says. ‘It is very
drilled soon. important to recognize that we
Midwestern paired up with Mart really should incentive local,
Resources for the field about five capable indigenous oil and gas
years ago. ‘This partnership is for companies to participate so as to
the long haul and we are not looking come to the table and take their
for another partner at the moment,’ rightful place in the development
Okoene says. of the Nigerian oil and gas sector.’
Full interviews and company profile at www.winne.com OFFSHORE ENGINEER I febr u a r y 2 0 1 0 15
 Special section produced by World Investment News

16 O F F S H O R E ENGINEER I Februar y 2010 www.winne.com

Special section produced by World Investment News

Supplying and Servicing Blue Chip Companies

DAMAGIX As industries evolve, particularly in With respect to community affairs, DAMAGIX remains mindful
developing countries, the unavailability of of the environment in which it operates. ‘We always carry along
the required raw materials for the industries the host communities, through finding out the issues that
immediately creates huge challenges. affect the people living around proposed project area.
Consequent on the desire to address some
of these challenges, Mr. D. Mohammed, “I am very excited about the Total’s OML 58 - O.U.R.
the Managing Director and CEO of Pipeline Upgrade Project, which involves the supply
DAMAGIX Group – a former frontline of 25,000 tons (46km) of 42” line-pipes. We won this
Mr. D. Mohammed senior manager of the Nigerian National contract through a strenuous International Bidding
MD & CEO Oil Company, the NNPC – founded Process. Thus, we became the first indigenous company
DAMAGIX GROUP
DAMAGIX in 2000. to win a contract of this magnitude in the industry. We
Mr. Mohammed’s sole aim was that of improving the are just rounding up this contract – and ahead of the
participation of the Nigerian Indigenous Companies in the stipulated Delivery Time too”, Mohammed says.
activities of the Oil Industry.

NADABO
Marketing and Trading of Petroleum order to bridge the gap, a vision of taking petroleum products
Product is the name of the game for to homes, offices, industries and blue chip Companies such
Nadabo Energy Limited. The motivation as ExxonMobil, Addax, NNPC, SPDC, Total E & P came into
and inspiration to become one of the play”, says Ali Peters MD/CEO, Nadabo Energy Limited.
major suppliers of petroleum products “Our drive in customer satisfaction led us into identifying
to the end users came to fore when we other opportunities in Power generation. Hence, the company
noticed a gap between the end users and ventured into Engineering designs, Project management
the Major Importers. “There was always and related services. “Since its inception five years ago, the
Mr. Ali Abubakar complaint from the end users about lack company has grown to directly employ about 100 regular and
Peters of customer-oriented services, product contract workers both locally and internationally, and posts an
Managing Director
NADABO ENERGY
adulteration, and irregular supplies. In annual turnover of about $50 million USD”, Ali Peters says.

Midis Energy Services Point Engineering carried out the

Ltd., incorporated in 2005, first subsea engineering project
is focused on providing whollyperformedinNigeria.Point
manpower services and alsohandledtheengineeringwork
technical support. Atamuno on the subsea manifold work for
calls the company’s strategic the Usan project.
alliances ‘very peculiar’. ‘We have shown that it is possible
For manpower services, to do serious engineering
Midis depends on partners in Nigeria and for the first
to provide technically time subsea engineering was
qualified expatriates that completely done here in Nigeria.
the company is unable to We had the opportunity of doing
source locally. ‘In the area of a project in Houston but we
offshore construction support insisted that it must be done here
services we also depend on inNigeria.Atthattime,wehadnot
our partners to assist us in done subsea engineering before
cases where we are unable to but we believe that exposure is
source for the right personnel, what we require so local content
equipment and materials. development is a key principle in
That is why we have very which our company believes in,’
specialized technical partners says George Okoyo, MD of Point
in key areas,’ Atamuno, Engineering.
MD of Midis says. Strategic Point holds MoUs and
partners include SWG Group, agreements with some foreign
which specializes in offshore, companies for specific projects,
construction, installation and Okoyo says Point is ‘hoping
maintenance services, and to get new partnerships with
Global Projects Consultants, companies that will treat us on an
which specializes in providing equal basis, impart knowledge
construction support services and transfer technology to our
and project management. local engineers.’
Full interviews and company profile at www.winne.com OFFSHORE ENGINEER I febr u a r y 2 0 1 0 17
 Special section produced by World Investment News

conceptual design, FEED, detailed engi-

Success in details, services redefined and neering, and upgrade and revamp of oil and

Understanding the community needs gas facilities. The company also provides
technical maintenance services and condi-
tion monitoring of industrial equipment
The economic crisis that swept across Appart from having and facilities, QHSE/Analytical Laboratory
the globe over the last couple of years passionate plans for Services, Solar and Power Engineering, QA/
did not spare the oil industry. Some the Gulf of Guinea, QC inspection and non-destructive testing.
projects were delayed by months or in terms of invest- Cakasa, another Nigerian company, has
years. Such was the picture also in ments, DeltaAfrik’s moved upstream from its 1974 origins
Nigeria, where the economic situ- vision remains local, providing equipment and maintenance to
ation paired with a troubled Niger and the company the midstream and downstream sectors
Delta region to decrease the overall Mr. Akin recruits people from into a company that largely deals with EPC
Odumakinde
number of projects underway in this Managing Director the communities in services in the upstream industry. The major
West African country. Despite this, DELTAAFRIK which it operates. shift happened between 2002 and 2009,
ENGINEERING LTD
Nigerian companies are optimistic Other investments go says Engr. Yaro, when the company saw that
2010 will be a year of recovery, as proj- to local universities outsiders were performing most of the engi-
ects are beginning to move forward. within the communi- neering services and the government had
In a country where local content is a priority, ties to mentor poten- started focusing on Nigerian content. Yaro
DeltaAfrik has been on the forefront of the tial engineers-to-be classes Cakasa as midway into its vision of
local talent movement. ‘We, combined with as well as to NGOs to being an EPC company. It has done some
our partners, believe in regional development ‘train the trainers,’ or work for the heavy-hitters in the industry:
and for that reason, we did not need the local train teachers. Cakasa personnel worked on the FEED and
content policy to retain the indigenous know- Dr. Diran Fawibe While times may be detailed engineering for Total’s Usan FPSO,
Chairman & CEO
how and capability within the country.’ IESL tough globally and in Chevron’s Agbami FPSO and Shell’s Bonga
Our engineering capability extends to carrying INTERNATIONAL Nigeria, because of Northwest projects respectively. FPSOs are
out engineering design projects like concept ENERGY SERVICES the economic crisis, currently built elsewhere in the world and
LIMITIDED
development, front end engineering design Dr. Diran Fawibe, brought into West Africa for use in producing
(FEED), detailed engineering design, procure- Chairman and CEO of International Energy offshore fields. ‘Over the years through stra-
ment, project management and construction Services Ltd, believes now is the perfect tegic relationships with other international
management for the oil majors like Exxon- timing to invest in the country. IESL, estab- partners, Cakasa has successfully executed
Mobil, Chevron, Shell and Total etc... lished in 1990, carries out engineering for engineering, procurement and construction
18 O F F S H O R E ENGINEER I februar y 2010 www.winne.com
Special section produced by World Investment News

projects. As Cakasa’s history repair and maintenance of Shell’s

shows quite a growth, Yaro flowstation facilities.
sees its future full of expansion. Euroflow, founded in 1996,
Yaro says has ISO 9001:2000 certifica-
he’d like tion in addition to indigenous
to see the certificates, such as COREN
company and DPR, which cover the
p o s i - company’s core operations
tioned as and services, such as engi-
an EPC neering, project management
Engr. Yaro P. Balami
company and technical support services
MD/CEO CAKASA
COMPANY LIMITED in both to the upstream sector of the
the down- Nigerian oil & gas industry.
stream and the upstream Chairman Godwin O.
sectors. While Cakasa seeks to Adamolekun has plans for
grow into an EPC future, Euro- growth. ‘Our vision is to be the
flow Designs Ltd is looking to foremost company offering
continue its solid base of engi- engineering, project manage-
neering and project manage- ment and technical support
ment services. The firm recently services to the upstream sector
wrapped up a five-year engi- of the oil & gas industry in
neering and project manage- Africa, providing efficient
ment services project that world-class quality service
started in 2004 for Chevron to our customers around
Nigeria Ltd. The company is the African continent and
also carrying out inspection, beyond,’ he says.
Produced by WINNE. Producer: Pascal Belda.
Executive Director: Jochen Schell,
Project Manager: Sonia Bras, Project Coordinator: Francesca Rosset,
Creative Director: Laure Barthelemy.
We would like to thank the cooperation of Mr. Nduka Francis.

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 Special section produced by World Investment News

20 O F F S H O R E ENGINEER I februar y 2010 www.winne.com