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OE Activity: 2017 / January

OE Activity: 2017 / January (96)

Thursday, 19 January 2017 11:04

S.D. Standard Drilling increases PSV fleet

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S.D. Standard Drilling, through wholly owned subsidiaries, has agreed to acquire three ST-216L CD platform supply vessels (PSVs) from Volstad Shipping, increasing its fleet to 10 PSVs. The vessels are to be acquired for a total en-bloc consideration of US$40 million. 

The vessels, Volstad Viking, Volstad Supplier and Volstad Princess are large PSVs, all built at Aker Brattvaag, Norway in 2007-2008, with 1060sq m deck space and equipped with ice class (ICE-1B) capabilities.

"The vessels grow our asset base and fleet significantly and are favorably priced at $13.3 million per unit, representing a discount of 67% to $40.6 million actual newbuild price and a discount of 47% to the 25-year current newbuild parity of a nine-year old vessel with an implied value of $25 million,” said Martin Nes, chairman, S.D. Standard Drilling. “Furthermore, the vessels are all large and well-recognized PSVs which distinguish themselves with their tremendous power, speed and good station keeping capabilities, especially in harsh weather conditions. The vessels have an impeccable operating track record and enable [S.D. Standard Drilling] to enter the Norwegian market. With their ice class capabilities, the vessels are also likely to be deployed for operations in harsh/sub-Arctic regions.”

Fletcher Shipping will act as technical and commercial manager for the vessels. Fletcher already has technical and commercial management for S.D. Standard Drilling's equity investments in PSV Opportunity I, II, and III DIS. 

The acquisition of the vessels, expected to be completed in February 2017, will be financed through S.D. Standard Drilling's cash holding, the share contributions from the subsequent offers and (to the extent necessary) a credit facility.

S.D. Standard Drilling currently has a cash holding of approximately $39 million (NOK 330 million). The subsequent offers related to the private placements that has been completed, will increase the Company's cash holding with up to $2 million (NOK 16.9 million). In connection with the acquisition of the vessels, S.D. Standard Drilling will enter into a six-month revolving credit facility (RCF) at market terms with Saga Tankers totaling $10 million in order to secure the company's available liquidity reserves.

Thursday, 19 January 2017 03:44

Guyana creates Petroleum Directorate

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Guyana's Ministry of Natural Resources says it is planning to have a new Petroleum Directorate established and functioning within Q1 this year.

The move comes as the South American country eyes its first offshore oil production, following ExxonMobil's Liza and Payara discoveries on the giant deep water Stabroek Block.

Guyana's Ministry of Natural resources says the new directorate follows follows international models which separate policy development from regulation monitoring.

Minister of Natural Resources, Raphael Trotman, says: “We now need to start preparing and using the opportunity (of)2017-2020 when we hope to start producing, to put things in place, as many of the things as possible.” 

A GY$200.7million budget has been allocated in the 2017 for petroleum management. This will be used for renting a building to house the Directorate, procurement of equipment and furnishing.

“We expect by the first quarter of this year we would have had persons hired but the intention is not to have everyone in place immediately,” Trotman said.

Meanwhile, the government is also developing legislation to govern the emerging oil and gas sector. “Legislation is already in circulation for a petroleum regulatory commission,” Trotman said.

The government has been updating and drafting policies and legislation that will govern the new sector, including an oil and gas policy, revised Petroleum Act and regulations, local content policy and regulations, petroleum commission bill, petroleum taxation and fiscal legislation, a health, safety and environment (HSE) regulations and a bill to provide for sovereign wealth/generational savings, stabilization, infrastructural, social welfare and citizens participation fund. 

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Guyana in the spotlight

Wednesday, 18 January 2017 15:35

MISC starts Benchamas 2 conversion

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MISC Berhad has started the conversion of floating storage, and offloading unit (FSO) Benchamas 2 in a ceremony at the MMHE West Yard, Pasir Gudang, Malaysia.

FSO Benchamas 2 will be a conversion of the Bunga Kelana 5, previously operated by AET, an Aframax tanker that was built in March 1999. It weighs about 105,400dwt and can store about 750,000-tonne of crude oil.

The vessel is due to work on the Benchamas field in the Gulf of Thailand, a move that will mark MISC's move into Thailand's offshore oil and gas market. 

The contract for the FSO, with Chevron Offshore (Thailand) is valued at about US$230 million and will last 10 years, with five, one-year extension options. Sail away is expected in Q1 2018. 


 

Wednesday, 18 January 2017 11:33

ROG expands Waalhaven facilities

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As of January 2017, Rotterdam Offshore Group (ROG) has started to upgrade their facilities in the Waalhaven, Rotterdam. ROG has acquired the neighboring land and buildings to their existing premises allowing the significant expansion of their quayside, storage as well as office capabilities.

ROG will now be able to accommodate vessels up to 320 m in length where previously the maximum vessel length was 200 m. To support the increase in activity, the storage facility will increase from 14,000sq m to 21,700sq m.

In March 2017, the project to demolish the existing company buildings will begin and the construction of the new state of the art office and workshop will start. The project has been planned to ensure that all ROG services remain fully operational during the construction period and all staff will move to temporary offices within the newly acquired premises until project completion planned for the end of 2017.

ROG facilities are in a central, easy accessible and strategic location in the main port of Rotterdam, and are a recognized facility as required by the International Ship and Port Facility Security (ISPS) Code. Efficient in and out “open sea” access is allowed due to ROG facilities being located to the west of all bridges that restrict other areas of the port.

The Port of Rotterdam has an estimated cargo tonnage throughput of 465 million per annum and a port area of 12,500 ha including 6000 ha of business sites. The total length of the port area is more than 40km. and approximately 30,000 seagoing vessels and 110,000 inland vessels visit the Port of Rotterdam every year.

“The expansion of our facilities is paramount to the future success of the overall business,” said Martin van Leest, managing director, ROG. “We have been at 90% berth occupancy and our current storage capacity is running at close to 100% utilization, which is fantastic in the current economic climate. This initial expansion will mean we can service not just more, but larger vessels and this will be followed by works to develop our quayside capabilities and inclusion of a floating dock. We continue to expand our complimentary services such as ROG Green technologies which supports the Ballast Water Treatment installation demand, and in addition, demand for our Offshore Wind installation and transport vessel mob/de-mob project expertise continues to grow which is testament to our problem solving approach.”

Image:ROG facilities in the Waalhaven, Rotterdam/ROG

Wednesday, 18 January 2017 10:54

Siem axes PSV order due to delays

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Siem Offshore has canceled the fourth of four dual fueled platform supply vessels (PSVs) shipbuilding-contracts with Remontowa Shipbuilding in Poland, due to delay in the delivery.

“The company is covered with refund guarantees from an international bank for all pre-delivery installments made under the contract,” says Siem Offshore. 

In December 2016, Siem canceled the third of the four PSV order for the same reason. 

The four vessels were ordered in December 2013, and were scheduled to be delivered from Q3 2015 to Q2 2016. 

Wednesday, 18 January 2017 09:16

Forland extends OSM management deal

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Norwegian offshore construction vessel (OCV) operator Forland Shipping awarded OSM full technical management of its two OCV’s, the Fugro Saltire and the Lewek Inspector.  OSM already provides the crew to the vessels.

“We are very proud that Forland has chosen to extend our cooperation to full technical management.  It is a strong indication that our organization is doing a good job when our customers look for further opportunities whereby we can help them; in this instance, helping to reduce operational costs, increase purchasing power, and access to OSM’s worldwide network.  I believe that many of the smaller ship owning companies in the offshore sector are looking for ways to reinvent themselves.  To do so requires being able to focus on strategy and business development rather than operations, and partnering with OSM can help to achieve just that,” says OSM CEO Geir Sekkesæter.

“Being a small shipping company operating in a very challenging market, we have to minimalize our operational cost, at the same time as we sustain the traditionally high performance of our vessels. After years with OSM responsible for crew management of our vessels, we are convinced that the present outsourcing of technical management will be the right answer to this situation,” says Forland Shipping Managing Director Bjørn Kristian Jæger. “Furthermore, this decision also enables us to focus more on strategy, business development and marketing, which we believe will be mandatory for any company’s success in future. Among others, OSM will also be one of our important resource partners in this sector.”

Image of the Fugro Saltire, from OSM.

Wednesday, 18 January 2017 08:32

Atkins inks Chevron Alba, Captain gig

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Chevron North Sea awarded Atkins a three-year framework contract for structural integrity services across selected fixed and floating platforms in the UK North Sea.

The contract covers assets including the Alba Northern platform and topsides of the Alba floating storage unit (FSU) (the first to be purpose-built for the UK North Sea); the topsides of the Captain floating production, storage and offloading (FPSO) vessel, as well as the wellhead protector platform (WPP) and bridge linked platform (BLP) on the Captain field, and the Erskine platform.

Les Newman, director in Atkins’ Energy business, said: “Our team is driven by the market need to reduce unit operating costs by improving production and optimizing integrity, built on a foundation of improving safety performance across the asset lifecycle.”

Wednesday, 18 January 2017 08:23

Park Place Energy acquires Turkish fields

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US explorer Park Place Energy has completed the US$2.1 million acquisition of three Turkish companies, the Tiway Companies, from Tiway Oil BV.

Image from Park Place Energy.

The primary asset of the Tiway Companies is the offshore production license called the South Akcakoca Sub-Basin (SASB).  Over $450 million has been invested in the SASB to date.  

Park Place Energy now owns a 36.75% working interest in SASB.  SASB has four producing fields, each with a production platform plus pipelines that connect the fields to an onshore gas plant.  The four SASB fields are located off the north coast of Turkey towards the western end of the Black Sea in water depths ranging from 60-100m. Gas is produced from Eocene age sandstone reservoirs at subsea depths ranging from 600-1200m.

The three nearer shore gas fields of Ayazli (discovered in 2004), Dogu Ayazli (discovered 2005) and Akkaya (discovered in 2006) were included in an initial phase of development with first gas production in 2007. The deeper water Akcakoca field (discovered in 2006) was developed later with first gas production in 2011.  All of the fields are developed using unmanned wellhead platforms/tripods tied back via a 25km 12in pipeline to shared processing and compression facilities onshore at Cayagzi gas plant.  

The gas plant at Cayagzi is capable of processing up to 75 MMcf/d. Total gross production to date from the four fields is in excess of 37 Bcf.  The production license for SASB is covered by a modern 223sq km 3D survey. There are five additional gas discoveries in SASB that have not yet been developed. Also, there are several additional prospects defined by 3D seismic data.

The year-end 2016 gross gas production rate for the seven producing wells in SASB was 2.56 MMcfd; the average daily 2016 gross production rate for the field was 4.36 MMcfd.

Park Place Energy says it believes there are substantial remaining gas reserves at SASB.  Based on third party evaluations, the company has confirmed there are substantial behind pipe reserves in the 10 SASB production wells connected to the four production platforms.  Plans to re-log certain of the wells have been approved by the operator and will be performed shortly; based upon those results, operations are planned to perforate the confirmed behind pipe reserves in order to increase production. 

In addition, Park Place Energy has initiated an investigation to determine the feasibility of installing an artificial lift in order to rehabilitate production in certain wells.  Further, the company has identified a number of proved undeveloped locations that can be drilled from the four existing production platforms.  The company envisions the next stage of development in 2018 will include the drilling of additional wells to materially increase the volumes of gas produced through the existing infrastructure.  

The deal also includes two onshore fields. 

Wednesday, 18 January 2017 04:00

Statoil approved for Mim well near Norne

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Statoil is set to drill its next well, on the Mim prospect, near the Norne field after being given the green light by the Norwegian Petroleum Directorate.

Statoil will use the Deepsea Bergen semisubmersible drilling rig to drill well 6507/3-12 in production license 159 B, which Statoil operates with 85% interest alongside partner Dong E&P Norge (15%).

The well will be drilled about 11km, close to which the Cape Vulture discovery was recently made, using the same rig. Cape Vulture is being considered as a tieback to the Norne floating facility.

Production license 159 was awarded in licensing round 12 Part B on the Norwegian shelf and production license 159 B was carved out on 13 August 2004.

The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activities.

Wednesday, 18 January 2017 03:55

Major East Anglia ONE contracts awarded

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ScottishPower Renewables has awarded Van Oord the contract for East Anglia ONE offshore windfarm by ScottishPower Renewables (part of the Iberdrola Group) for the transport and installation of 102 three-legged jacket foundations.

The new wind farm, due to be finished in 2020, will be made of up 102. 7MW Siemens wind turbines with a capacity to power around 500,000 homes. The entire project, 45km offshore Lowestoft, England, in the southern North Sea, is worth nearly $3.21 billion. It will be the largest amount of three-legged foundations in a wind farm ever installed worldwide. 

Nexans has been chosen to supply submarine cables to carry energy onshore from from the 714 MW windfarm. Nexans in turn awarded a cable installation and trenching work contract to DeepOcean. 

Nexans will type test, manufacture and install two, 85km-long, high voltage three-core submarine cables with embedded fiber optics, as well as accompanying accessories, for the wind farm in the North Sea. The contract is worth more than US$192 million.

Delivery will begin in Summer 2018 and offshore work will be undertaken by 2019, with the Maersk Connector and purpose built power cable plough, ACP2, supported by DeepOcean’s in-house fleet of dedicated construction support vessels. 

Van Oord will be responsible for the logistics of all jacket foundations and piles, sourced from various suppliers, and the transport to the marshalling port of Flushing in The Netherlands. From there the foundations will be transported and installed with an installation vessel. The installation work is planned between half of April 2018 and the end of October 2018.

ScottishPower Renewables is also in the early planning stages for two bigger wind farms in the same region: East Anglia TWO and East Anglia THREE.

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