GEC Petroleum Development Co. (GPDC) is delaying a deal with MX Oil to acquire 5% interest in the Aje field offshore Nigeria in order for the company to gather the appropriate funds for the sale.

GPDC is in the process of finalizing its funding to cover both the payments to secure its option and the initial payment due.

While the funding is taking longer than expected, GPDC has informed MX Oil that it is committed to this transaction and expects to have funds available in the coming days. 

Despite the delay, MX Oil said that it continues to believe that selling the asset to GPDC is an attractive option for the company's shareholders as the level of proceeds envisaged equates to a significant premium over the company's current market capitalization, and will allow GPDC additional time to put its financing in place. 

"GPDC has informed us that they are committed to this transaction and, despite interest from a number of other parties, GPDC's offer remains attractive.  Now that the final development expenditure to first oil has been fully covered, the company is well positioned to take the time to achieve the best result for this asset.  We are very pleased with the operational progress made in Nigeria and, given that first oil is now imminent, we are comfortable allowing GPDC a little more time to secure their funding,” Stefan Olivier, MX Oil CEO said.

Read more:

MX Oil sells Aje stake

The Cross Group has completed the engineering and design phase of its 7-3/8in 15,000-psi live well intervention package.

Utilizing technological advancements along with field-proven technology, the newly designed 15,000-psi subsea live well intervention package incorporates a one of a kind subsea convertible (riserless/riser) option that does not require surface recovery, the company said.  With a water depth rating of 10,000ft, the Cross 15,000-psi subsea intervention package is controlled by either full MUX or direct hydraulic controls.  Other features of the 15,000-psi subsea live well intervention package include a triple subsea BOP, safety shear, and an emergency disconnect.  The package is being built to the latest API specifications and will be completed early 2017.

“Our people have worked very hard over the past 18 months to complete the engineering and design phase of what we consider to be the most safe, user-friendly, and cost effective 15,000-psi subsea live well intervention package entering the market,” Heath Jones, Cross Group VP said. “We’re very excited as we move forward with the build phase and are eager to get to market.”    

Cross Group is an oil and gas services company with a primary focus on deepwater installation, recovery, and well intervention operations.  Cross Group supports the marine and offshore industry with a wide range of equipment, engineering, and repair support services.

Image from the Cross Group.

Oil & Gas UK has published an update of its Well Life Cycle Integrity Guidelines.

The publication reflects recent changes in the regulatory environment, such as the requirement for well-operators and drilling contractors to integrate the management of both safety and the environment as part of the Offshore Safety Directive introduced in July 2015.

Oonagh Werngren, Oil & Gas UK’s operations director, said: “These guidelines produced by Oil & Gas UK’s Wells Forum collate current industry expertise and provide further clarification on how best to design a well and plan operations to assure well integrity. The aim is to help well operators and drilling contractors better understand how to select, install, verify, test, maintain and repair suitable barriers to reduce the risk of uncontrolled release of fluids throughout the life cycle of a well.

“A number of organizations worked collaboratively to update the guidelines including members of Oil & Gas UK, the Norwegian Well Integrity Forum, the International Association of Oil and Gas Producers Well Integrity Workgroup, the Department of Energy and Climate Change, Health and Safety Executive and the UK Onshore Operators Group.”

As part of the industry’s efforts to tackle its cost base and improve efficiency, the well integrity guidelines provide the sector with a common framework to outline good practice, reduce operational complexity and improve safety performance.

William Jacob Management Inc. (WJM) has secured its initial contract to complete the detailed engineering and design of its first mobile offshore support services vessel: the MOSS V.

Illustration of the MOSS V, from WJM.

The MOSS V will be under contract with Northport Marine, and will receive delivery of the new vessel, scheduled for completion in Q1 2018.

The MOSS V is a heavy-duty jackup drilling rig, converted to a self-propelled vessel. Potential applications include rigless plug and abandonment (P&A), construction support, floatel, storm damage repair, decommissioning, wireline, workover, support of a skid off rig and maintenance. WJM will provide the engineering design and construction management for the conversion and refit of a candidate vessel, several of which have been identified.

By removing pre-existing drilling equipment from the top deck during the conversion, a 10,000sq ft open deck serves to create a utility vessel that allows for the accommodation of a number of different services. The equipment below deck (pumps and tanks) is left in place, for potential use in P&A applications.

Typically, a standard jackup rig is equipped with two or three cranes with limited capacity of only 10 to 30-tonne. The MOSS V adds a new heavy-duty 500-tonne crane, which extends the vessel’s capability to comfortably handle platform maintenance, coiled tubing offloading, the decommissioning of platforms and the rigless P&A of wells. The MOSS V hosts a large 85-person living quarters, which means it can also jack up next to a platform and be used as a floatel.

The MOSS V is a far more robust vessel in comparison with smaller, lighter lift boats. Whereas existing lift boats can only work up to a maximum of 200ft water depth and cannot operate in heavy seas, the MOSS V is designed for 350-400ft water depth capability, and can endure substantial adverse weather conditions due to its size and weight.  

A 2000sq ft enclosed machine and welding shop is also located on the deck of the MOSS V. This means that workers can safely perform construction tasks for repairs in an environment shielded from the elements whilst offshore on the vessel. Another feature that enhances the safety of its workers is the inclusion of a helideck on the MOSS V. This means that workers can be safely transported on and off the vessel; eliminating the risks inherent with basket transfer of personnel typically used with smaller lift boats.

“In the current industry climate, an increasing number of plug and abandonment and decommissioning projects are coming online in the GOM, and the MOSS V is currently the only vessel sufficiently equipped to fully serve this target region,” Michael Duffy, WJM president said. “For an extremely competitive day rate, the MOSS V offers a unique set of multi-functional characteristics, eliminating the need for clients to hire multiple expensive vessels to perform various tasks, and delivering significant time and cost savings offshore. Its versatility makes the MOSS V a one-stop shop for a variety of offshore requirements.”