Jan 12, 2011

SANTOS TICKS $US16B GLADSTONE GAS PROJECT

Santos Ltd says the Gladstone Liquid Natural Gas (GLNG) partners have approved the development of the $US16 billion ($A16.11 billion) GLNG project in Queensland.
Santos says major works will now to commence for upstream field development, pipeline and LNG plant facilities.
[Read more]
Source: The Bull
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Hercules In Talks To Manage Two New Shallow-Water Rigs

Hercules Offshore Inc. (HERO) said Wednesday that it is negotiating a contract to manage and market a pair of new harsh-environment drilling rigs that are expected to be ready to operate in 2013.
Hercules, which announced the talks in a regulatory filing, didn't say with whom it is negotiating or where the rigs, which will be able to drill in water depths of up to 400 feet, might operate. The company also said "there can be no assurances" a deal will be reached.
[Read more]
Source: Nasdaq
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Trans-Alaska Oil Pipeline restarts at reduced rate

The Trans-Alaska Oil Pipeline has restarted at a reduced rate following a leak that shut-down the pipeline over the weekend. Revealed in an announcement from the pipeline operator Alyeska Pipeline Service Company, as well as regulatory groups US EPA and Alaska Department of Environmental Conservation, the Trans-Alaska Pipeline System restarted operations the evening of Tuesday, January 11.
An oil leak occurred at Pump Station 1 in Prudhoe Bay, forcing Alyeska to shut-down the massive pipeline that transports about 15 percent of domestic oil from the North Slope of Alaska to Valdez, where tankers then complete the journey to mainland US.
Ayeska has been approved to restart the Trans-Alaska Pipeline System, also known as TAPS, at a reduced flow rate while engineers work to design and build a bypass that will allow flow to circumvent the damaged pump station while investigations into the cause of the accident and repairs are ongoing.
A limited restart is necessary to prevent any additional risks the extremely cold weather may cause.
Restarting the line will help to increase temperatures in tanks and in the pipeline, helping engineers overcome freezing issues that can wreak havoc on the pipeline system. Additionally, the flowing oil will help to move a cleaning pig that is currently stopped between Mileposts 419 and 420; and if left too long in the pipeline, could cause damage.
Additionally, the limited flow will allow producers on the North Slope to increase production, which has been slashed by 95 percent since the leak occurred on Saturday morning.
It is unclear how limited the oil flow in the pipeline will be in the interim.
Once the bypass piping solution is fabricated, the TAPS line will be shut-down again for its installation.
Spanning 800 miles of the Arctic Tundra, the Trans-Alaska Pipeline System transports some 630,000 barrels of oil a day. The pipeline is owned by BP, ConocoPhillips, ExxonMobil, Chevron and Koch Alaska Pipeline Co.
Source: Press release
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Exxon Mobil Looking For Buyers Of North Sea Assets

Exxon Mobil Corp. said Wednesday that it is shopping its stake in four North Sea oil and gas fields.
The U.K. unit of ExxonMobil's recently acquired XTO Energy owns the properties, according to a document announcing the sale released by IndigoPool, Schlumberger Ltd.'s (SLB) mergers and acquisitions business. ExxonMobil, the largest U.S. oil company by market value, did not provide an estimated value of the assets.
[Read more]
Source: Nasdaq
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Shell Fears Yearlong Delay Of Alaska Drilling Program

The head of Royal Dutch Shell PLC's U.S. entity fears difficulties in gaining a federal air-quality permit will push back its long- delayed plans to drill in Alaska's Artic waters by another year, the Financial Times reported online Wednesday.
[Read more]
Source: Nasdaq
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Gulf of Mexico oil spill: BP's Doug Suttles to retire

BP has confirmed that Doug Suttles, the man who helped lead the clean-up of its Gulf of Mexico oil spill, will leave the company.
The oil giant said on Wednesday that Mr Suttles was retiring from his role as chief operating officer of BP's exploration and production division in the US. He has spent more than 22 years at the company.
[Read more]
Source: The Telegragh
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Venture to focus on port and ship surveillance

CASSIDIAN, security arm of Europe’s EADS aerospace group, has formed a partnership with Germany’s Atlas Elektronik that will focus on ship and port surveillance.
The venture, called Signalis, was formed through the combination of Cassidian subsidiary Sofrelog with Atlas Maritime Security. Cassidian holds a 60% stake and Atlas Elektronik – which itself is jointly owned by ThyssenKrupp and EADS – the remaining 40%.
[Read More]
Source: Safety at Sea
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Ransom payers seek blessing from Washington

PRESIDENT Obama’s order targeting Somali financial transactions has spurred many international shipowners to seek US pre-approval for ransom payments, Fairplay has learned.
On 13 April 2010, Obama issued an emergency directive to the Office of Foreign Assets Control, targeting certain Somali individuals and groups. The order’s mandate against “financial assistance” to targeted entities raised fears that Washington would issue sanctions against shipowners for paying ransoms.
[Read More]
Source: Safety at Sea
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Russia to auction Lodochnoye oilfield in Q2-report

Russia is to auction off the mid-sized Lodochnoye oilfield in the second quarter of this year, Interfax news agency reported on Wednesday, citing a government decision.
The field, in the Krasnoyarsk region of Siberia, has recoverable oil reserves of around 43.2 million tonnes and around 69.8 billion cubic meters of recoverable gas.
[Read more]
Source: Reuters
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Container ship optimization yields significant fuel savings

The lines of a 9,000 TEU container ship series were significantly improved in a joint venture of the Chinese design office Maric and Germanischer Lloyd's subsidiary FutureShip.
[Read More]
Source: Motorship
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SUCCESSFUL FUEL CELL TEST ON BOARD DREDGER

The company ran a pilot test in which energy derived from hydrogen was the sole source used to power the electrical equipment on board a dredger.
The sustainable energy test took place at the Haringvliet estuary with one of the latest generation of standard cutter suction dredgers: the IHC Beaver 40. The hydrogen energy was supplied by the Purity fuel cell generator that has been developed by Bredenoord.
[Read More]
Source: Maritime Sun News
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World's largest heavy lift vessel to visit India

MV Svenja, which is claimed to be the world's largest heavy lift vessel with a lifting capacity of 2,000 tonnes and speed of 20 knots, will arrive in India later this week on its maiden voyage.
[Read More]
Source: Heavy Lift
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Philippines: Four fishermen spend four nights floating at sea

Philippines: A passing cargo vessel near Balabac Island in the South China Sea rescued four fishermen who had been floating in the sea for almost four days.
The four fishermen were reported missing by their families and were rescued January 7 by a Bahamian-flagged vessel ‘Aspen Arrow’ as it was passing by Balabac Island.
[Read More]
Source: Baird Maritime
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Korea: 2010 port traffic breaks records

Korea’s Ministry of Land, Transport and Maritime Affairs has announced that port container traffic in 2010 rose by 18.3 percent from 2009 to a record 19.33 million TEU. This is also a 7.8 percent increase from 2008, the previous high.
[Read More]
Source: Baird Maritime
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Russneft agrees $6.2 bln debt restructuring

Russian mid-sized oil company Russneft has agreed to extend to 2020 repayment of a $6.2 billion debt with its main lenders Sberbank, the country's largest bank, and Glencore International AG  and cut the interest rate to 9% from 12%, Russneft said on Wednesday.
[Read more]
Source: RIA Novosti
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Danish ship's owner reports pirate attack

A Danish cargo ship with six crew was attacked by pirates in pirate-infested waters of the Gulf of Aden off Oman, its owner said Wednesday, days after a similar assault on an Indian vessel.
[Read More]
Source: MSN News
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U.K. Denies Centrica’s Request to Ease Rough Gas Rules

Centrica Plc’s request to remove restrictions on its management of the Rough natural gas storage plant in the North Sea was provisionally denied by the U.K. government in order to protect competition.
The country’s biggest energy supplier agreed to the rules following its 2002 acquisition of the site to ensure its ownership wouldn’t disadvantage rivals and drive up gas prices, the Competition Commission said in a statement. Centrica requested a review of the limitations in April last year.
[Read more]
Source: Bloomberg
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Baltic index at near 2-yr low, supply glut bites

The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, fell to its lowest in nearly two years on Wednesday as growing fleet supply and slow trade hit sentiment.
Brokers said flooding in Australia was disrupting shipping activity at a time when the dry bulk market was struggling with vessel deliveries ordered before economic turmoil in 2008.
[Read More]
Source:Reuters Africa (Editing by Alison Birrane)
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Yemen suspends oil minister over queues for petrol

Yemen's president on Wednesday suspended his oil minister and the head of the national oil company over a fuel shortage that has forced people to queue at petrol stations, the defence ministry said. "The minister for oil and minerals, Amir Salem al-Aydarus, and the executive director of the Yemen Petroleum Company, Omar al-Arhabi, have been suspended from their positions on account of the popular discontent caused by the lack of fuel," said a statement on the ministry's website.
The decision by President Ali Abdullah Saleh would see the deputies of the two men assume responsibility of their respective portfolios, the statement added. For a week, a fuel shortage has led to long queues at petrol stations and traffic jams in Yemen, which produces 300,000 barrels of crude oil per day but its oil production is declining by about five percent each year.
While gasoline is in short supply in the capital Sanaa, diesel shortages afflict the rest of the country, according to residents of Saada in the north and Maarib in the south. Petrol station managers have stepped up their protests in recent days, some threatening to rally in the streets if supplies fail to arrive soon. No official explanation has been given for the fuel shortage in Yemen, the Arabian Peninsula's poorest country which is also battling al Qaeda militants, northern Shia rebels and southern separatists.
Source: Press release

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Danish industrialists show interest in shipbuilding

The Danes are back, this time as friends and partners, vying for space in mutual maritime ventures and not as erstwhile lords and colonialists. The Danish Maritime Group is on a fact-finding mission in India,concerning the potential of shipfaring and shipbuilding Industry in India.
Mr Ulrik Dahl of the Danish Export Association said that their main objective was to find a place in India, and help to make it a global player. He added, “ China, South Korea, and Japan, contribute to over 80 per cent of the ships manufactured, albeit in various names, today we wish to identify India as a potentially huge market for the manufacturing section, with a large working force of engineers at it’s disposal.”
[Read More]
Source:Deccan Chronicle
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Equatorial Guinea okays Alen condensate project

Equatorial Guinea has approved a Noble Energy Inc. group’s development plan that calls for condensate production to begin by the end of 2013 from Alen gas-condensate field in the Douala basin off Equatorial Guinea.
As Alen field produces 37,500 b/d of condensate under the $1.6 billion project, gas reinjection is estimated to be 380 MMcfd. The condensate rate is 25% higher than originally estimated, leading to payout in less than 2 years.
[Read more]
Source: Oil & Gas Journal
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Second train in prospect for Hammerfest LNG

Statoil and its partners in the Snøhvit license in the Norwegian Barents Sea are considering building a new LNG plant at Melkøya Island in Hammerfest (Train II).
The licencees have conducted a feasibility study into expanding processing capacity at the Hammerfest LNG plant, designated Snøhvit Train II, and have decided to review technical concepts that would make expansion economically feasible.
Expanding capacity expansion could help accelerate production of gas already found in the area, and facilitate earlier production of new gas yet to be discovered. Boosting capacity would also involve further development offshore, comprising new subsea templates, production wells and a new pipeline to land.
However, an investment decision looks unlikely before end-2013, which might allow the plant to come on line in 2018.
Archaeologists from Tromsø Museum have performed archaeological excavations in the Melkøya area over the past two years, Statoil adds, results of which which have led to the construction site being cleared for possible expansion.
The existing LNG plant handles supplies from Snøhvit, the first field development in the Barents Sea. Gas is transported to land through a 143-km (89-mi) pipeline for liquefaction at Hammerfest LNG.
Snøhvit is also the first major development on the Norwegian continental shelf in which all the production facilities are on the seabed at water depths of 250-345 m (820-1,132 ft).
Hammerfest LNG (Train I) currently produces 13,000 t/d of LNG, 2,000 t/d of condensate and 900 t/d of LPG. 
Under the current plan for Train I, the facility will produce gas over a 30-year period from the Snøhvit, Askeladd, and Albatross fields.
Statoil’s partners are Petoro, GDF SUEZ, Total, Hess, and RWE Dea.
Source: Press release
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Ship owners get $1.8b loan to acquire 20 new carriers

INDIGENOUS ship owners in Nigeria have secured a $1.8billion (N270billion) facility from Nationwide Finance  Miami, Florida to  purchase  20  new crude carriers.
Accessing the funds, will however depend on the ability of the local ship operators to sway the Federal Government to change its current trade practice  of Free On Board (FOB) to Cost, Insurance and Freight (CIF).
[Read More]
Source:Vanguard
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Eni, BP start recovering costs on Iraqi oilfields

Output at Iraq's Zubair oilfield has reached 265,000 barrels per day, enough to allow oil companies led by Italy's Eni (ENI.MI) to start recovering their investment costs, an Iraqi oil official said on Wednesday.
[Read more]
Source: Reuters
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Payment to Korean yard: SCI's Iranian venture faces rough weather

Irano-Hind Shipping Company, a joint venture between Shipping Corporation of India and the Islamic Republic of Iran Shipping Line, is facing trouble in making payments for a ship being built at a South Korean yard on account of the economic sanctions against Iranian companies.
According to those familiar with the development, the vessel, a Suezmax tanker named Taj Mahal, said to be costing around $70 million, will be ready for delivery by this month-end. If payments are not made by then, the company may have to pay a penalty, they said.
[Read More]
Source:The Hindu Business Line
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Norwegian gas exports increase

Norwegian trunklines operator Gassco transported 97.3 bcm (3.4 tcf) of gas from Norway to terminals in Europe during 2010. This represents an increase of 700 000 cu m (24.7 MMcf) over the total for 2009.
The gas was piped from fields on Norway’s continental shelf to facilities in Germany, Belgium, France,and the UK.
Gassco also provided 1.7 bcm (60 bcf) to Norwegian consumers last year, an increase of 300,000 cu m (10.6 MMcf).
However, volumes delivered for injection into Norway’s offshore fields declined from 1.8 bcm (63.6 bcf) in 2009 to 1.3 bcm (45.9 bcf).
During 2010, Gassco says the integrated transport system for Norwegian gas achieved an average regularity of 98.8%. Over half of the transported supplies pass through processing plants at Kårstø, north of Stavanger and at Kollsnes near Bergen.
“These two units had shutdowns for planned maintenance and upgrading during 2010, while both also experienced technical operating challenges,” said Gassco CEO Brian Bjordal. “Taken together, these factors meant that regularity was slightly lower than we’ve been able to report over the previous few years.”
On Jan. 3, Gassco adds, a new daily record was set for Norwegian gas deliveries of 360.8 MMcm (12.74 bcf), beating the previous high of 355.4 MMcm (12.55 bcf) established on Jan. 15, 2010.
Source: Press release

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Coal Ships Head for Atlantic on Flood Disruption

Ships that haul coal and iron ore are heading for the Atlantic Ocean as flooding in Australia disrupts cargo volumes and activity in Pacific contracts, RS Platou Markets AS said.
The Australian state of Queensland’s worst floods in 50 years have inundated an area the size of France and Germany, shutting mines, cutting rail lines and destroying crops. Idemitsu Kosan Co., Japan’s third-biggest oil refiner by capacity, said today it closed its Ensham coal mine. Rio Tinto Group and BHP Billiton Ltd. are among mining companies that have declared force majeure, allowing them to miss deliveries.
[Read More]
Source:Bloomberg
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OMV set to withdraw from Rockall license

OMV (Ireland) Killala Exploration has agreed to pay San Leon Energy £3 million ($4.7 million) to be allowed to exit a permit offshore western Ireland. The transaction is subject to approval from the Irish government.
Currently OMV and San Leon each hold an undivided legal interest and 50% beneficial interest in the Rockall Exploration License No: 3/05. Following OMV’s withdrawal, San Leon will hold 100% ownership.
However, San Leon is open to further farm-in offers to this and its other licenses across the Irish Atlantic margin. The Rockall permit includes the Killala and Kingfisher prospects.
Oisin Fanning, executive chairman of San Leon Energy, said: "In line with our strategy of farming-out our Atlantic margin assets, we are now in a position to farm out this asset on a 100% basis. The upcoming results of the 3D seismic over the Slyne field should further help to de-risk and enhance the value of these assets.”
Source: Press release

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Crews call off search for missing fisherman

A man who fell from a fishing ship into frigid seas south of Prince Rupert Tuesday is now assumed dead.
An unidentified man went overboard from the 110-metre Northern Victor at 5 p.m. Tuesday, officials from the Joint Rescue Co-ordination Centre in Victoria said. Search crews, including a Canadian Forces Cormorant helicopter, mounted an “intensive search” through the night without spotting him.
[Read More]
Source:The Province
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Delek Group proposes LNG plant in Cyprus to process massive natural gas finds offshore Israel

According to a report from Reuters, Israeli energy investment firm Delek Group has proposed the construction of a liquefied natural gas (LNG) processing facility in Cyprus.
The LNG facility could support the recent natural gas finds offshore Israel, including Leviathan and Tamar.
The Middle East Economic Survey (MEES) reported that Delek proposed to the Cypriot government that it build an LNG facility that could both receive, as well as process natural gas into LNG.
Delek officials would not comment on the report.
Delek holds interest in the massive natural gas finds, including Noa, Mari-B and Tamar, operated by Noble Energy Inc. offshore Israel.
Source: Press release

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French Port Strike Closes Le Havre Terminals

All dockworkers and a large number of port staff in Le Havre joined a national strike Wednesday shutting down shipping terminals at France's largest container port.
France’s FNPD-CGT union called the strike to press demands for early retirement for those who carry out hard physical work. The union said the current strike would last until at least Sunday.
[Read More]
Source:Journal of Commerce
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Dry bulk rates hit new multi-month lows on Australia’s floods

Floods in Australia’s Queensland has seriously disrupted coal shipments and together with a flood of vessels has pushed freight rates for dry bulk carriers to new multi-month lows. As a result, the Baltic Dry Index fell further yesterday to just 1,453 points, losing 1.82% on the day, while the suffering Capesize segment retreated by a further 4.77%.
[Read More]
Source: Hellenic Shipping News
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Sevan serves ONGC arbitration notice

Sevan Marine has sent a Notice of Arbitration to ONGC concerning a firm order both parties signed in June 2008 for the charter hire of an ultra-deepwater drilling platform rig.
The letter informs ONGC of Sevan’s intention to resolve certain disputes with ONGC relating to the firm order via arbitration. Sevan says it is disputing ONGC’s right to call on a bank guarantee for the sum of $15.9 million and/or to receive monies under this guarantee, on the grounds that ONGC has suffered no loss and/or that any loss suffered does not amount to the sum of the guarantee.
The company has filed a petition with Indian courts seeking to restrain ONGC from invoking the bank guarantee until the disputes have been settled by arbitration. This would prevent ONGC from invoking the bank guarantee until after the outcome of the petition and any further appeals.
Source: Press release

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Cyclone brews off Australia's oil & gas, iron ore region

Tropical cyclone Vince is headed toward Australia's northwest coast, home to some of Australia's biggest oil and gas facilities and the region's largest iron ore export port, the weather bureau said on Wednesday.
[Read more]
Source: Reuters
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Carriers are shipbuilding renaissance

British shipbuilding is looking forward to a renaissance tonight after the Government placed a multi-billion-pound order for two new aircraft carriers which will bring a jobs bonanza to the beleaguered manufacturing sector.
In a highly unusual arrangement, the project will be spilt between the two rival bidders for the contract - BAE Systems and Thales, which is part owned by the French Government.
[Read More]
Source: Mail Online
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Repsol Buys a share in Tyrona Block, Offshore Colombia

Repsol has signed an agreement with Colombian company Ecopetrol and Brazil’s Petrobras to buy a stake in the offshore Tayrona exploration block in the Colombian Caribbean Sea.
Following the agreement, Repsol owns a 30% stake in the block, while Ecopetrol owns 30%. Petrobras, with a 40% stake, will continue to be the operator. The deal is subject to the approval of Columbia’s National Hydrocarbons Agency (Agencia Nacional de Hidrocarburos.)
[Read more]
Source: Offshore Energy Today
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Daewoo Shipbuilding Targets 18% Jump in Offshore Orders on Oil-Price Rise

Daewoo Shipbuilding & Marine Engineering Co., the world’s third-largest shipyard, expects orders for drilling vessels and offshore platforms to increase 18 percent this year, helped by higher fuel prices.
Contracts for drill ships, semi-submersibles and offshore platforms may rise to $6 billion this year from $5.1 billion in 2010, Nam Sang Tae, Daewoo Shipbuilding’s chief executive officer, said today.
[Read more]
Source: Bloomberg
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Bharati Shipyard faces Rs.90 cr order cancellation

In October 2007, state-owned Shipping Corp. ordered four anchor handling, towing and supply vessels (AHTSVs), each with a pulling power of 80 tonnes, at Bharati Shipyard,India's second biggest shipbuilder outside state control.
[Read More]
Source: IIFL
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Russia to build new shipyards for Mistral construction

Russia will construct new shipyards near St. Petersburg designed specifically for the building of Mistral class amphibious assault ships under a French license, a defense industry source said Wednesday.
Moscow announced in December last year that two Mistral class helicopter carriers will be built jointly by France and Russia at the STX shipyard in Saint-Nazaire, France, and another two will be constructed later in Russia.
[Read More]
Source: Ria Novosti
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Yangzijiang bags $536m worth of shipbuilding contracts from Sept 1 to Dec 31

Yangzijiang Shipbuilding (Holdings) says the group has entered into 15 shipbuilding contracts between Sept 1 and Dec 31 2010 with a total contract value of US$415.30 million ($536.4 million).
The new contracts secured comprise three 47,500 dwt bulk carriers, four 49,500 dwt bulk carriers, two 7,600 dwt bulk carriers and six 82,500 dwt bulk carriers.
[Read More]
Source: The Edge
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Russia's USC shipbuilder, Italy's Saipem in joint venture talks

Russia's United Shipbuilding Corporation intends to create a joint venture with Italy's Saipem to design ships for offshore oil and gas production, Kommersant business daily said on Wednesday, quoting a source close to the corporation.
The USC board is expected to approve the deal in March-April. The joint venture will be set up and start operating this year, the source was quoted as saying.
[Read More]
Source: Ria Novosti
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OGX discovers more oil, natural gas with Waikiki well in the Campos Basin offshore Brazil

Brazilian independent OGX Petróleo e Gás Participações S.A. (OGX) announced Wednesday the presence of hydrocarbons in the Eocene section of well 1-OGX-25-RJS, which was previously identified as drilling the Waikiki prospect located on BM-C-39 Block in the shallow waters of the Campos Basin offshore Brazil. 
After identifying hydrocarbons in the Albian-Cenomanian section of the well, the drilling of well OGX-25 proceeded. The well reached carbonate reservoirs in the Albian-Cenomanian section, transecting a total column of approximately 198 meters and total net pay of around 145 meters in this section, as compared to the 125 meters of column and 116 meters of net pay previously announced. 
Moreover, new studies, which included logging and cable tests, also permitted the identification of hydrocarbons in sandstone reservoirs in the Eocene section, specifically a gas accumulation with a column of approximately 16 meters and net pay of around 8 meters. 
It should be noted that the name of well 1-OGX-25-RJS has changed to 6-OGX-27P-RJS with the drilling of the Albian section. Its drilling will continue until a total estimated depth of 3,100 meters. 
This well is located in the BM-C-39 block at about 94 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 105 meters. The Pride Venezuela rig initiated drilling activities there on November 14, 2010. 
Source: Press release
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Saudi Aramco's Vela Adds Double-Hulled Crude Tanker to its VLCC Fleet

Saudi Aramco, the world’s largest state-owned oil company, said a new very large crude carrier entered service with its tanker-operating subsidiary Vela International Marine Ltd.
The Homam Star is Vela’s fourth double-hulled VLCC to be built by South Korea’s Daewoo Shipbuilding and Marine Engineering Co., Saudi Aramco said in a statement on its website today. The blue-and-red painted ship joined Vela’s fleet on Dec. 29 and is sailing to Saudi Arabia. It is expected to reach the United Arab Emirates by Jan. 17, AISLive ship-tracking data on Bloomberg show.
[Read More]
Source: Bloomberg
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China overtakes Korea as world's top shipbuilder in 2010

South Korea lost its status as the world's leading shipbuilding nation to China in 2010 for the second straight year as it lagged far behind the neighboring country in key indicators, data showed Wednesday.
According to London-based market researcher Clarkson Research, South Korean shipbuilders won a combined 11.77 million compensated gross tons (CGTs) in new orders last year, while Chinese shipbuilders clinched a total of 15.9 million CTGs.
[Read More]
Source: Business Ghana
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DAEWOO SHIPBUILDING BUILDS WORLD'S LARGEST OFFSHORE FACILITY

Daewoo Shipbuilding & Marine Engineering Co. (KSE:042660), South Korea's No. 2 shipbuilder, said Wednesday it has completed construction of the world's largest offshore platform.
The so-called floating production storage and offloading unit (FPSO) is designed to receive, process and store oil or natural gas and can be maneuvered to serve different locations.
[Read More]
Source: Trading Markets
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Vantage Drilling Company Announces Updates for Jackup Fleet

Vantage Drilling Company announced today that it has entered into a letter of intent for the Sapphire Driller, subject to final customer approval for a three well drilling program in West Africa, with an option for a fourth well. The anticipated duration of the contract is for four months with operations commencing as soon as the Sapphire Driller can be mobilized to the new drilling location. Estimated revenues to be generated over the initial term of the contract are approximately $15.2 million.
Vantage has also entered into a contract amendment with its customer in Côte d'Ivoire providing the customer the option to reinstate the existing contract for the Sapphire Driller once political conditions in Côte d'Ivoire improve. The customer must exercise the option before April 15, 2011. 
Our customer for the Aquamarine Driller operating in the Philippines has announced the abandonment of its current well program and given Vantage a 90 day notice of termination as provided for under the contract. Vantage is currently working with customers on other near-term contract opportunities.
Our customer for the Topaz Driller has exercised the option for an additional well which we anticipate will keep the rig operating in Vietnam until June 2011. Following the completion of this contract, we anticipate that the rig will enter the shipyard for upgrades before starting the previously announced two well program in Malaysia.
Paul Bragg, President and Chief Executive Officer, commented, "We are happy to have quickly resolved the issues for the Sapphire Driller and to get the rig back to operations as quickly as possible. While we are disappointed that our customer in the Philippines was unable to continue with the current drilling program, we wish them continued success in their efforts and look forward to working with them in the future. With the continued strength in the high-specification jackup market, we are evaluating alternative work and believe we will be able to contract the Aquamarine Driller during the 90 day notice period."
Source: Press release
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Dragon Oil plc Drilling Update: Dzheitune (Lam) B/150 well tested at initial combined rate of 1,622 bopd

Dragon Oil plc, an international oil and gas exploration and production company, announces the completion and initial testing of the Dzheitune (Lam) B/150 development well. The Dzheitune (Lam) B/150 was drilled to a depth of 3,980 metres and completed as a dual producer by the Iran Khazar rig. The combined initial test rate was 1,622 barrels of oil per day ("bopd") with the short and long strings testing at 632 and 990 bopd,respectively. The Iran Khazar rig has skidded to the next slot and spudded the Dzheitune (Lam) B/153 well.
Dr Abdul Jaleel Al Khalifa, Chief Executive Officer, commented:
"I am pleased to report that we have now fulfilled the 2010 drilling programme with the last of the 11 planned wells put into production in the first week of January this year. 
 "We have also met another significant objective for 2010 having completed and commissioned important new pipeline and processing infrastructure.  As we gradually switch over to using the new 30-inch trunkline and associated in-field pipelines, we are already seeing improved average daily flow rates. With the integrated network of 30-inch trunkline, 14-, 18- and 20-inch in-field pipelines and the expanded Central Processing Facility, the infrastructure bottlenecks that constrained production growth have been completely removed."
Source: Press release
Posted on 1/12/2011 / 0 comments / Read More

Ithaca Energy Inc. Athena Field Development Operations & FPSO Modifications Progress as Planned


    Ithaca Energy Inc. and its wholly owned subsidiary Ithaca Energy (UK) Limited, an independent oil & gas company with exploration, development and production assets in the UK sector of the North Sea, announces that the Sedco 704 drilling unit is now being anchored on location over the Athena field ready to commence an approximate 180 day campaign to drill a fourth production well and a water injector well and complete the three existing wells on the field as producers.  In addition, modification and recertification of the Floating Production Storage and Offtake (“FPSO”) vessel (BW Athena) is well underway in a Dubai shipyard.  
The Sedco 704 drilling unit will initially drill one water injection well, followed by a fourth production well (three suspended appraisal wells are to be completed for production as part of this campaign). The four production wells will be installed with downhole submersible pumps to maximise field production rates. Initial production from the field is estimated at a gross rate of 22,500 barrels of oil per day (“bopd”) (5,062 bopd net to Ithaca). Applied Drilling Technology International (a division of Transocean  Drilling UK Ltd) will manage the programme on a ‘turnkey’ basis which is anticipated to last approximately 180 days.  Subsea work will follow in Q3 2011, to install field pipelines and subsea manifolds. The Company will update the market as and when drilling and/or completion work reaches key milestones.  
The FPSO ‘BW Athena’ is at dockside in Dubai and preparation works have commenced to re-certify existing equipment and install new equipment.  In Q2 2011 the vessel will be ‘dry docked’ for the installation of a turret mooring section amidships, extending the FPSO by approximately 65ft.  Steelwork for the mooring section is being prepared alongside the dry dock. All work is anticipated to be completed in Q3 2011 allowing the vessel to return to UK 
waters and arrive on location at Athena at end Q3 2011.  Installation of the FPSO vessel to the mooring buoy, as well as, hook up and commissioning will be completed in anticipation of targeted first oil in Q4 2011. Both BW Offshore’s Site Office and the Ithaca Representative’s Office in Dubai are manned and operational.  
John Woods, Ithaca’s Chief Development Officer, commented:  
“The drilling programme at Athena has commenced on schedule enabling the rig to complete its scope of work ahead of other field construction activities. Work on the Athena field remains very much in line with targeted first production from the field in Q4 this year at a gross rate of 22,500 barrels of oil per day. Work on the FPSO in Dubai and the other project construction activities have also all commenced on  schedule and within budget giving the project team an excellent start to the New Year.” 
The Athena Joint Venture Partners are Ithaca (operator, 22.5%), Dyas UK Ltd (47.5%), EWE Aktiengesellschaft (20%) and Zeus Petroleum Limited (10%). 
Posted on 1/12/2011 / 0 comments / Read More

Nido defers development of Yakal oil block

MANILA, Philippines - Australia-based Nido Petroleum Ltd. said on Wednesday it has deferred the development of the Yakal oil field to further study the said oil field.
In a disclosure to the Australian Stock Exchange, Nido deputy managing director Joan Williams said the Service Contract (SC) 54A joint venture has decided to defer the Yakal development as the group will still review the Tindalo project.
[Read more]
Source: ABS-CBNnew.com
Posted on 1/12/2011 / 0 comments / Read More

Statoil considering a new LNG plant

The partners in the Snøhvit licence have decided to perform studies of possible concepts for building a new LNG plant at Melkøya in Hammerfest (Train II).
The licence has conducted a feasibility study of processing capacity expansion of Hammerfest LNG plant, Melkøya called Snøhvit Train II, and have now decided to study technical concepts that may make further expansion economically feasible.    
The next investment decision is still some years away. A possible investment decision may be made towards the end of 2013 at the earliest, and the plant can be expected to be online in 2018, at the earliest. .
”We are considering expanding the LNG capacity at Melkøya by building a new LNG plant.
Capacity expansion will accelerate the production of gas that has already been found and open for earlier production of new gas that extensive exploration activities in the Barents Sea can hope to discover,” says Statoil's project manager, Geir A. Owren.
In addition to the Melkøya expansions, a possible extension of capacity will entail a substantial development offshore involving several subsea templates, production wells and a new pipeline to land.
Archaeologists from Tromsø Museum have over the past two years conducted archaeological excavations in the Melkøya area so the construction site has been cleared for possible expansion.
Source: Press release
Posted on 1/12/2011 / 0 comments / Read More

Tunisia: 7th November well tests gas-condensate

Sonde Resources Corp., Calgary, reported “robust test results” from an appraisal well on the Tunisian side of the 7th of November block in the Gulf of Gabes off Tunisia and Libya.
Zarat North-1, in which Sonde owns 100% working interest alongside the Tunisian-Libyan Joint Oil combine, went to 9,728 ft vertically and cut 240 net ft of pay in the Eocene El Gueria limestone. Sonde set casing to TD and ran three production tests through 2-1/4-in. tubing from 42 ft above the water contact to 177 ft above the water contact.
All three tests flowed substantial quantities of gas-condensate, with Test 2 sustaining 8 MMcfd of gas and 750 b/d of condensate. Condensate rates peaked at 1,100 b/d, and gas rates were 8-11.5 MMcfd. All tests produced water at 200-350 b/d of drilling fluids and formation water, with water decreasing and oil increasing throughout the tests.
Sonde is assessing test data to determine key reservoir characteristics including porosity, permeability, water saturation, and gas composition.
Located 1.25 miles northeast of the Marathon Zarat-1 discovery and 1.9 miles northeast of the Zarat-2 appraisal, Zarat North-1 encountered gas-oil and oil-water contacts at the same structural elevation as the Marathon wells, confirming a significant extension to the previously-proven accumulation.
Sonde Resources said the results suggest that an economically-viable, near-term development may be possible. By comparison with the Zarat North results, the Marathon Zarat-1 well flowed 5.3 MMcfd and 457 b/d on a first test and 15.1 MMcfd and 1,181 b/d on a second test.
Sonde Resources said hydrocarbon column thickness was about twice that originally estimated for the Zarat North location. The company will temporarily abandon the well for reentry and review the use of horizontal wells to develop the field.
Management is reviewing recoverable reserve scenarios, development options, and cost estimates for development of Zarat field and will investigate unitization options with PA Resources, Stockholm, which holds a portion of the field immediately south of the 7th of November block. Sonde Resources is also studying development financing and monetization options, including selling interests to one or more potential partners.
Source: Press release
Posted on 1/12/2011 / 0 comments / Read More

Polarcus Presents at SEB Enskilda Nordic Seminar in Copenhagen, Denmark

Polarcus Limited  announces that Chief Executive Officer, Rolf Ronningen, will present at the 13th SEB Enskilda Nordic Seminar in Copenhagen on Wednesday, 12 January 2011, at 11:50 a.m. CET (Central European Time).
[Read more]
Source: Offshore Energy Today 
Posted on 1/12/2011 / 0 comments / Read More
 
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