Malaysian contract for Australian company

Australian-owned ship builder Strategic Marine has been awarded a contract with Malaysian company JCB Oil and Gas Services to supply two 40m crew boats to service Malaysia’s expanding oil and gas sector.
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Source: Motorship

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Bulk Carrier MV ROSALIA D’AMATO was pirated

The 74,500 tonne Italian flagged and owned vessel was on its way to Bandar Imam Khomeini (Iran) from Paranagua (Brazil) when it was attacked by a single skiff. Coalition warships had communications with the vessel and were told: ‘pirates onboard stay away’.  The MV ROSALIA D’AMATO has a crew of 21(6 Italians, 15 Filipinos). There is no further information about the crew at present.

The MV ROSALIA D’AMATO was registered with MSC(HOA) and was reporting to UKMTO.

EUNAVFOR are continuing to monitor the situation.

EUNAVFOR Somalia – Operation ATALANTA’s main tasks are to escort merchant vessels carrying humanitarian aid of the World Food Program (WFP) and vessels of African Union Mission in Somalia (AMISOM). EUNAVFOR also protects vulnerable vessels in the Gulf of Aden and Indian Ocean, deters and disrupts piracy. EUNAVFOR finally monitors fishing activity off the coast of Somalia.
Source: EU NAVFOR

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IMO and Korea partner for greener shipping

​IMO and the Korea International Co-operation Agency (KOICA) today (21 April 2011) signed a Co-operation Agreement at the Organization’s London Headquarters, for implementation of a pioneering technical co-operation project on Building Capacities in East Asian countries to address Greenhouse Gas Emissions (GHG) from Ships.

 

The co-operation between KOICA and IMO through this project is part of a much broader climate change initiative by the Republic of Korea titled the “East Asia Climate Partnerships” which aims to support the Republic of Korea’s efforts to take a lead in reducing carbon emissions and to move toward a low-carbon society, thereby setting a milestone for green growth and in this process to assist the developing countries in the region.

 

A sum of some US$700,000 will be made available by KOICA under the Agreement, which will fund ten activities to be implemented by IMO over a two-year period.  The selected activities will focus on enhancing the capacities of developing countries in East Asia to develop and implement, at the national level, appropriate action on CO2 emissions from shipping, whilst at the same time, promoting sustainable development. 

 

IMO, through its Marine Environment Protection Committee (MEPC), has developed energy efficiency measures, both for existing and new ships, in a comprehensive package of technical and operational measures to enable the shipping industry to increase its fuel efficiency and reduce its emissions. 

At its 62nd session in July 2011, the MEPC will give consideration to making mandatory, under MARPOL Annex VI, the package of technical and operational measures, which include an Energy Efficiency Design Index (EEDI) for new ships; a Ship Energy Efficiency Management Plan (SEEMP) for all ships; and an Energy Efficiency Operational Indicator (EEOI) for all ships.

 

The issue of reducing GHG emissions from ships represents a major concern for IMO Member States and reflects a global consensus on a key issue which affects both developing and developed countries.  Giving priority to technical assistance programmes that focus on human resources development and institutional capacity building to help developing countries improve their ability to comply with impending international rules and standards to address GHG emissions from ships, can make a significant contribution to limiting or reducing GHG emissions from international shipping.

 

In this context, IMO’s MEPC, at its 61st session, underlined the importance of building human resource capacity to address GHG emissions from ships. The KOICA-IMO Project on GHG, which is first of its kind for IMO, is an immediate response to such an urgent need identified by the Committee.

 

Some ongoing IMO technical cooperation activities in GHG emissions include the development of an IMO Model Course based on the Ship Energy Efficiency Management Plan in promoting the energy-efficient operation of ships which will help promulgate the industry’s "best practices", to reduce GHG emissions from international shipping. 

In 2008, IMO, jointly with the World Maritime University (WMU), organized an international conference on the impact of climate change on the maritime industry that brought together a number of relevant stakeholders to discuss the latest developments and identify challenges in developing countries. 

 

IMO is currently in discussion with a number of donor countries and partner organizations with a view to mobilize additional resources for supporting its technical assistance activities in this area.

 

KOICA - the Korea International Co-operation Agency - was founded as a government agency on 1 April 1991, to maximize the effectiveness of the Republic of Korea’s grant aid programmes for developing countries by implementing the Government's grant aid and technical co-operation programmes.
Source: IMO

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BP Agrees To Provide $1B For Gulf Restoration Projects

BP Plc has agreed to provide $1 billion to help restore wildlife and habitats in the Gulf of Mexico as part of an agreement with the U.S. and Gulf Coast state governments, the Justice Department said Thursday.

This agreement, billed as the largest of its kind, falls on the heels of the one-year anniversary of the explosion of the Deepwater Horizon rig and the subsequent oil spill.
Source: gCaptain

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TUI Sets May Deadline for Hapag-Lloyd Bids

TUI, co-owner of Hapag-Lloyd, asked Chinese group HNA and Oman's Onyx Investments to make binding bids for a stake in the shipping group by late May, three people close to the process told Reuters.
While the suitors are currently conducting due diligence, Hapag is simultaneously preparing a prospectus for an initial public offering based on first-quarter figures to put pressure on the bidders, one of the sources told Reuters.
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Source: The Journal of Commerce

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FIRST SHIP LEASE TRUST MAINTAINS DISTRIBUTION

FSL Trust Management Pte. Ltd. (“FSLTM”), the Trustee-Manager of First Ship Lease Trust (“FSL Trust” or the “Trust”), announced today the financial results for FSL Trust for the quarter (“1Q FY11”) ended 31 March 2011.

For the quarter, FSL Trust will distribute US$5.7 million or US0.95¢ per unit to its unitholders. The distribution per unit (“DPU”) of US0.95¢, unchanged since 2Q FY10, represents an annualised tax-exempt yield of 11.5%1. The distribution will be paid on 27 May 2011 to all unitholders on record as at 29 April 2011. The Distribution Reinvestment Scheme (DRS) will not apply to the 1Q FY11 distribution.

Gross revenue for 1Q FY11 was US$23.9 million, down 2.4% year-on-year (y-o-y). Lease revenue from the 21 vessels on long-term bareboat charter, which accounts for US$20.8 million or 87% of the revenue in 1Q FY11, continues to underpin the overall revenue stability to the Trust. The lower revenue in 1Q FY11 was due to lower revenue contributions from two vessels ‘FSL Hamburg’ and ‘FSL Singapore’, which have been deployed in the product tanker spot market since 2Q FY10. The two vessels earned freight revenue of US$3.1 million in 1Q FY11, compared to the US$3.8 million lease revenue in 1Q FY10 when both vessels were on bareboat charters2.

The Trust posted a net loss of US$2.0 million for 1Q FY11, compared to a profit of US$0.7 million in 1Q FY10. The loss was largely attributed to the lower than expected performance of ‘FSL Singapore’ and ‘FSL Hamburg’ during 1Q FY11 due to the following reasons:

i. Timing differences between the recognition of freight revenue and the expenses. In
accounting, the freight revenue is recognised on a ‘discharge-to-discharge’ basis while
the expenses are recognised on an accrual basis;

ii. Weak freight rates in the product tanker spot market;

1 Based on FSL Trust closing price of S$0.41 per unit on 20 April 2011 and an exchange rate of US$1.00 = S$1.24.
2 ‘FSL Hamburg’ and ‘FSL Singapore’ were re-delivered to FSL Trust in 2Q FY10.

iii. Higher bunker expenses due to increased bunker prices; and

iv. Expenses incurred in ballast movements between fixtures. These were voyages made by the vessels between employment fixtures without carrying revenue-earning cargo.

The loss also resulted in lower net cash generated of US$11.5 million for the quarter, compared to US$16.3 million in the corresponding period a year ago.

The Trust’s balance sheet remains sound with a cash balance of US$53.2 million as at 31 March 2011. The Trust’s vessel portfolio, which comprises 23 vessels of which 21 are on long-term bareboat leases, has substantial remaining contracted revenue of US$575.7 million with an average remaining lease term of 6.9 years. All existing 21 bareboat leases are structured with recourse to the substantive entities of the respective lessees.

UPDATE ON THE CREDIT FACILITY

As at 31 March 2011, the Trust carried outstanding secured debt of US$452.3 million. This amount was further reduced to US$445.1 million after a loan repayment on 1 April 2011. Two of the loan tranches, Tranches B and C, in FSL Trust revolving credit facility are maturing on 2 April 2012. The aggregate outstanding amount of these two loan tranches as at 31 March 2011 is US$226.2 million. FSLTM has commenced discussion with its lending banks on the refinancing of these two loan tranches and the discussion is progressing well. FSLTM expects to provide a further status update of the discussion in due course.

OUTLOOK

Mr Philip Clausius, Chief Executive Officer of FSLTM said, “The results for this quarter were affected by the lower than expected performance of the two tankers that are deployed in the spot market. The freight rates in the product tanker market have been below expectations and particularly weak in late-January and February. We will continue to monitor the situation closely and will explore longer-term employment options for these two tankers. Our portfolio of long-term bareboat charters remains the core focus and it continues to deliver stable predictable long-term cash flow. The demand for alternative shipping finance such as ship leasing is poised to continue to grow and we are well-positioned to take advantage of this opportunity to grow our portfolio.”

CONFERENCE CALL FOR 1Q FY11 RESULTS

FSLTM will host a conference call for all registered participants on Thursday, 21 April 2011 at 10.00 a.m. (Singapore time) to discuss the results. An audio recording of the conference call will be available on FSL Trust’s website atwww.FSLTrust.com from 12.00 p.m. (Singapore time) on 22 April 2011.

Source: First Ship Lease Trust

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CMB reports first quarter results

CMB’s executive committee has reviewed the results recorded for the first quarter 2011.The consolidated result for the first quarter 2011 amounts to EUR 3,4 million (2010: EUR 24,2 million).
Bocimar contributes EUR 16,3 million (2010: EUR 12,6 million) to the consolidated resultfor the first quarter of 2011.
The dry bulk markets were off to a weak start in 2011. In the Capesize segment vessels are currently operating even below break-even, mainly due to the oversupply of newbuilding vessels. With its high coverage ratio Bocimar is fairly well-protected against the supervening volatility in this market.
The other market segments – especially Handysize - remained significantly more stable.
In the course of the first quarter two newbuilding Handysize vessels were delivered: CMB Julliette (2011-33.684 dwt) and CMB Boris (2011-33.717 dwt).
Earlier this month Bocimar acquired an additional Handysize unit: a 33.500 dwt newbuilding vessel under construction at Zhejiang Jingang Shipbuilding (China). The purchase price amounts to USD 21,95 million and delivery is scheduled for November 2011.
The contribution of ASL Aviation to the consolidated result for the first quarter amounts to EUR 2,3 million (2010: EUR 0,4 million).
This increase – compared to 2010 – is, almost entirely, attributable to Safair’s contribution - that was taken over in September 2010 – which amounts to nearly EUR 2 million.
The Other activities contribute EUR -15,2 million (2010: EUR 11,2 million) to the consolidated result for the first quarter. This result is almost entirely due to a non-realised exchange loss on the USD cash position of the holding company CMB NV. For the same period in 2010 a non-realised exchange profit of nearly EUR 13 million was recorded.
Bocimar does not expect a fundamental rebound in the Capesize market. Nevertheless both Bocimar and ASL expect to reap the benefits of their solid contract portfolios and diversified activities for the remainder of the year.
Source: CMB (Compagnie Maritime Belge)

Posted on 4/21/2011 / 0 comments / Read More

Drastic drop in straits piracy

KUALA LUMPUR: Six years after it was declared a war-risk zone for international shipping, the Straits of Malacca last year achieved a "close to zero incident level".

Defence Forces chief Jen Tan Sri Azizan Ariffin said it was due to the collaboration among the countries which formed the Malacca Straits Patrol (MSP), Malaysia, Singapore, Indonesia and Thailand.
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Source: Asia One

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More Russian tankers to ply Arctic route despite cost

Russia's Sovcomflot will ship 3-4 cargoes of stable gas condensate from northwest Russia to Asia via the Arctic sea this year on behalf of Novatek (NOTK.MM: Quote) a senior Sovcomflot official said on Wednesday.
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Source: Reuters

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Feature: FPSOs spearhead drive into deeper water

Explorers and producers of offshore oil and gas are busier than ever before and their workload is not only increasing, it is becoming more complex. Energy demand worldwide fuelled by fast-growing emerging economies continues to rise inexorably, while the drive to diversify energy sources has shown how difficult it is to build the market share of renewables. Oil and gas will remain key sources of energy for the foreseeable future. 

New oil and gas developments are needed to not only cater for this rising demand but also replace the production from those many existing fields whose output is now declining. As most onshore reserves have been exploited to a considerable extent, explorers and producers are increasingly relying on offshore oil and gas fields for their new supplies. Offshore oil production, for example, is set to grow from 21 million barrels per day (bpd) in 2008 to 27 million bpd in 2013, a 23% increase over the five-year period. 

As with current onshore oil and gas projects, developing new offshore fields is presenting greater challenges than was the case in the past. Projects now being implemented are normally located in deeper, more remote and more environmentally harsh waters than was previously the case. 

The first choice for exploiting offshore oil fields has proved to be the floating production storage and offloading (FPSO) vessel and the popularity of the concept has grown in tandem with the increasing complexity of oil field development work. There are 250 floating oil production units presently in service, up from 117 units five years ago, and of the current total 155 are FPSOs. Furthermore, according to data compiled by International Maritime Associates Inc., 35 of the 49 oil production floaters now on order are FPSOs. 

Flexibility and their proven safety record are two key reasons why FPSOs are in favour. Both newbuilding and tanker conversion FPSOs can be customised to meet the requirements of a particular field while there is sufficient deck space for the required topsides units and storage capacity enough to enable development of the deposit in a way that is commercially attractive to all the participants. The offshore oil industry has also fine-tuned its FPSO mooring and cargo transfer techniques to ensure smooth operations in most marine environments. 

Furthermore, because FPSOs are self-propelled marine units, a vessel can be unhooked once a project is complete and sailed to the next field for which it is earmarked. Such redeployment, which might well be delayed because the charterer has exercised the option of extending the original contract period, invariably entails a visit to a repair or fabrication yard for any modifications which may be required for the new project. 

The demand for FPSOs is expanding at the rate of 5-10% per annum at the moment. In addition, the size and complexity of the latest generation of FPSOs is increasing in conjunction with the move into deeper waters and the development of more challenging fields. The greatest depth of water at which an FPSO is currently operating is 2,500 metres while the highest throughput on such a vessel is 600,000 bpd. 

A case in point is the development of the deepwater fields in the Santos Basin and pre-salt deposits off the coast of Brazil. Brazil and West Africa are currently the world’s major users of FPSOs, each accounting for 23% of the in-service fleet. However, Brazil is dominating the production floater orderbook; 19 of the 49 floaters on order are earmarked for use off Brazil. 

Another recent development of interest is the decision by the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), a US Government agency established in the aftermath of the blowout on the Deepwater Horizon rig in April 2010, to allow the first FPSO in the US Gulf to commence operations. The vessel in question has been ready for some time but the Deepwater Horizon disaster delayed implementation of the project. 

The worldwide demand for additional FPSOs, either through tanker conversions or newbuildings, is being enhanced by the fact that several in-service vessels are nearing the end of their useful working lives. The IMA data shows that of the in-service units three have been stationed on a field more than 20 years, eight for more than 15 years and 27 for more than 10 years. The consultancy expects that at least half of these units are redeployment candidates, particularly the 15 that have operated in the North Sea for more than 10 years and two that have operated off Australia for more than 10 years. 

Charterers seeking to employ FPSOs over the long-term are anxious to engage with contractors with exemplary safety and environmental records, proven technical competence and financial strength, an established track record and credentials, links with key yards and subcontractors and a wide-ranging service portfolio. 

Customers of FPSO services are being facilitated in this quest through the major consolidation that has taken place in the sector in recent years. Despite the overall expansion of the FPSO fleet, the number of such contractors now stands at 12, down from approximately 30 in 2008. The remaining operators of FPSO vessels also offer their clients a lease option, covering both financial and operational arrangements. 

A key indicator of the vitality of the FPSO sector is the growth in overall investment, currently running at a rate exceeding 15% per annum. Another new and notable feature of today’s FPSO statistics is the appearance of liquefied natural gas (LNG) FPSOs for the first time. IMA lists four LNG FPSO projects as being likely to materialise by 2016 in its latest report. 

Amongst the fossil fuels, gas is currently the most favoured due to the ample supplies available and, hence, the competitive price of gas compared to oil. The exploitation of offshore gas over the current period is set to develop at a rate double that of oil. Offshore gas production is expected to top 1,000 billion cubic metres in 2013, 47% ahead of the 700 billion cubic metres achieved in 2008. 

Offshore gas has traditionally been exploited by means of pipeline links to shore but the more remote and marginal nature of many of the fields now being investigated favours an offshore solution. However, while several LNG regasification vessels are now in service, they tend to be employed in protected, nearshore waters and the first LNG producer vessel is yet to make its appearance. 

The LNG industry has been hard at work over the past decade, developing the sophisticated shipboard LNG liquefaction and cryogenic cargo transfer technologies that will enable safe and secure LNG FPSO operations to become a reality. The first final investment decision for an LNG FPSO is imminent and that milestone is likely to open the floodgates. 

Of the initial four LNG projects identified by IMA, three will be developed in the Australasia region while the final scheme is likely to come together off the coast of Brazil. The latter FPSO will be utilised to exploit the gas streams of several new oil FPSO projects planned for the deepsea pre-salt fields offshore from Rio de Janeiro. The world of FPSOs is about to take on a new dimension. 

Editor's Note: Mike Corkhill is a technical journalist and consultant specialising in oil, gas and chemical transport, including tanker shipping and chemical logistics. A qualified Naval Architect, he has written books on LNG, LPG, chemical and product tankers and is currently the Editor of both LNG World Shipping and LPG World Shipping. Source: BIMCO

Posted on 4/21/2011 / 0 comments / Read More

Dry bulk market keeps falling, now at two-month lows

The dry bulk market seems unable at the moment to recover from the weight of newbuilding deliveries, resulting in too many ships competing for fewer cargoes. The industry’s benchmark, the Baltic Dry Index (BDI) fell to 1,254 points prior to Easter holidays, down by 0.63%, now standing at new lows. The Capesize market was lull remaining unchanged, with the biggest losses occurred in the Panamax segment, which retreated by 2.69%.
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Source: Hellenic Shipping News

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Fire on Maersk Oil Qatar offshore platform

At 02:46 on 21 April a fire broke out on the Maersk Oil Qatar operated AD accommodation platform in the Al Shaheen field, 80 km north of Qatar.

The fire which took place in the emergency generator room has been extinguished and the situation is under control. All employees are safe and accounted for with no serious injuries. Our primary concern remains the safety and wellbeing of our personnel and those affected by the situation. All non-essential personnel have been evacuated from the platform and crisis counselling made available.

The cause of the fire is unknown and an investigation is underway to establish the root cause. However, 3 days prior to the incident production at A-Location had been shut-down for planned maintenance work. As a result no hydrocarbons were present at the time. There has been no environmental impact as a result of the incident.

Maersk Oil Qatar operates the Al Shaheen field on behalf of Qatar Petroleum. Currently there are 1561 personnel working offshore with 242 working at A-Location.
Source: Maersk Oil

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Global Energy Development to acquire new 3D seismic over Bolivar contract area

Global Energy Development has begun planning the acquisition of 100 sq kms of new 3D seismic over the Company's Bolivar Association Contract area.

The Company has previously reprocessed existing seismic over the contract area and made an exhaustive interpretation. The acquisition and interpretation of the new seismic data will enable the Company to validate the previous interpretation and establish the optimum position of the future wells scheduled to be drilled on the contract area.

Although the major structural elements of the block have been delineated using older vintage 2D seismic, the much higher resolution data gained from a 3D survey will identify the smaller features and ensure proper placement of lateral wellbores in the fractured reservoirs. Using the current "fairway" concept, it is necessary to locate the exact position of the various faults in order to identify areas of maximum natural fracture density. A portion of the 3D will be designed to image the Crisol gas cap, in order to determine the continuity and limits of that reservoir should the injection of associated gas become necessary in the future.

The Company has engaged Third Coast Enterpises, Inc. to aid in the design of an approx. 100 sq km 3D survey and is currently in the process of soliciting bids for selection of an acquisition company. Once the design phase is finished and an acquisition company is selected, the Company plans to move to the permitting and acquisition phase of the projects which is expected to take approx. one to two months.
Source: Global Energy Development

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Two new licences on the Norwegian Shelf for RWE Dea Norge

RWE Dea Norge has been awarded two licences in the recent licensing round by the Norwegian Government. This further strengthens the company’s long-term commitment on the Norwegian Shelf.

RWE Dea was awarded a 30% share in the license PL609 in the Barents Sea and a 15% share in the license PL596 in the Norwegian Sea. “License PL609 is located due East of the Skrugard discovery and enlarges RWE Dea’s portfolio in this very promising area”, explains Hugo Sandal, Managing Director of RWE Dea. “PL596 is a license on the Atlantic Margin and positions RWE Dea for this play.”

These two new licences add up to RWE Dea Norge’s already promising and solid licence portfolio in Norway. In January, RWE Dea Norge has already been awarded three licences on the Norwegian Shelf, of which one is in the North Sea and two are in the Norwegian Sea. Norway plays an important in role in RWE Dea’s strategic target to boost its annual gas and oil production to more than 70 million barrel of oil equivalents by 2016.
Source: RWE Dea Norge

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Wood Group acquires of PSN

Wood Group, the international energy services company, confirms the completion today of the acquisition of Production Services Network Limited ("PSN").

Bob Keiller has today been appointed as executive director of Wood Group and CEO of the combined Wood Group PSN production services business.

No further disclosures are necessary in respect of Bob Keiller's appointment under paragraph 9.6.13 of the Listing Rules.

In connection with the acquisition, Wood Group has made applications to the UKLA and London Stock Exchange relating to the admission of 10,511,413 ordinary shares (being consideration shares due to certain vendors of PSN) to the Official List of the UKLA and to trading on the London Stock Exchange respectively ("Admission"). Admission is expected to take place on 21 April 2011.
Source: Wood Group

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FINUCANE SOUTH-1 WELL TO FOLLOW ZOLA-1

Tap Oil Limited (“Tap”) is pleased to advise that Santos, the operator of the WA-191-P joint venture, has advised that the Finucane South-1 exploration well will be drilled using the Stena Clyde semi-submersible drilling rig immediately following the conclusion of rig operations on the Zola-1 well (WA-290-P).

The Finucane South prospect is located at the northern end of the Carnarvon Basin, approximately 15km east of the Mutineer facility. Finucane South-1 will be drilled to potentially supplement the discovered resources contained in the adjacent Fletcher Field. Tap estimates the Finucane South prospect has a potential gross mean recoverable oil volume of 8 million barrels.

Finucane South is a moderate-sized structural closure mapped at the base of the Cretaceous regional seal.  The underlying Late Jurassic Angel Formation primary target will be intersected at approximately 2,960m below sea level.  Water depth at the well location is approximately 140m.  Finucane South-1 will be drilled 2km SSW of the Finucane-1 well (1978) which intersected oil shows at the top of the Angel Formation despite having been drilled off structure.

Based on Finucane South-1’s proximity to other wells in the area (notably Finucane-1 and the Fletcher oil wells) plus its coverage by reprocessed 3D seismic, the risk attached with drilling can be categorised as low-moderate.

Finucane South-1 is expected to commence within a week and is planned to take approximately 20-25 days to reach a final total depth of around 3,500 metres.   Weekly updates will be provided during drilling operations.

Source: Tap Oil

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Ensco plc Reports First Quarter 2011 Results

Ensco plc (NYSE: ESV) reported diluted earnings per share from continuing operations of $0.45 for first quarter 2011, compared to $1.12 per share in first quarter 2010. There were no discontinued operations in first quarter 2011. Earnings from discontinued operations in first quarter 2010 were $0.21 per share that included a $34 million pre-tax gain from the sale of two jackup rigs. Diluted earnings per share were $0.45 in first quarter 2011, compared to $1.33 per share in first quarter 2010.

Chairman, President and Chief Executive Officer Dan Rabun stated, “Our planned acquisition of Pride International is on track and we look forward to realizing the benefits of the combination for customers, employees and shareholders. We successfully completed our debt offering to fund the cash portion of the acquisition and have commenced integration planning to ensure a smooth transition.”

Mr. Rabun added, “During the quarter we were honored to be ranked first among offshore drilling contractors in total customer satisfaction by EnergyPoint Research, an independent research firm that measures customer satisfaction in the global oilfield. We earned top scores in eleven separate categories. This recognition validates the commitment of our employees who serve our customers around the world each and every day.”

Chief Operating Officer Bill Chadwick commented, “Ensco has a long-established strategy of high-grading our fleet by investing in new equipment. During the first quarter, we ordered two ultra-premium harsh environment jackups and secured options for two additional rigs of the same design with similar terms. The new jackup rigs will be capable of operating in water depths up to 400' and their unique design will significantly increase the area of operability in the Central North Sea and other harsh environment regions.”

Mr. Chadwick added, “ENSCO 8503 successfully commenced drilling operations in French Guiana with Tullow under a sublet agreement and we contracted ENSCO 7500 with Petrobras in Brazil. Our rig crews in the U.S. Gulf of Mexico are performing extremely well and ENSCO 8501 has commenced operations under the first post-moratoria new deepwater well permit approved by regulators.”

Revenues in first quarter 2011 were $362 million, compared to $449 million a year ago. Jackup segment revenues decreased $55 millionand deepwater segment revenues declined $32 million.

Total operating expenses in first quarter 2011 increased 10% to $281 million, from $255 million last year. Contract drilling expense grew 5%. Depreciation expense rose by 15% driven by growth in the deepwater segment. General and administrative expense was $30 million, compared to $21 million in first quarter 2010, primarily due to increases in professional fees related to the Pride International acquisition.
Source: Ensco

Posted on 4/21/2011 / 0 comments / Read More

GALAHAD–1 WELL TO COMMENCE DRILLING IN WA-363-P

Octanex N.L.  (ASX Code:  OXX)  advises that the Galahad-1 well, the second well in the two well drilling campaign in the outer Exmouth Plateau permits WA-362-P and WA-363-P, is currently expected to spud within the next 5 to 7 days.  Galahad-1 is located within WA-363-P, as shown on the following Well Location Map.

The well will take approximately 36 days and will be drilled using the Saipem 10000 drillship.

Source: Octanex

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Chevron Signs MyCelx Produced Water Treatment System for Jack/St. Malo

MyCelx, experts in produced water treatment both onshore and offshore for discharge to very low discharge limit, the ISO-9001 company certified for oil removal to less than 5 ppm by Lloyd's Register, signed a contract with Chevron U.S.A. Inc. to design and deliver a produced water treatment system for the Jack/St. Malo floating production facility in deepwater Gulf of Mexico that will remove oil and water soluble organics (WSO) to below 10 parts per million (ppm).

The design requirements for the Jack/St. Malo floating production facility calls for an overboard discharge limit that Is lower than the current EPA limit of 29 ppm, and MyCelx is one of the few companies providing the technology that can guarantee low levels of oil and grease discharge levels in a consistent manner through an economically viable process. The WSOs contained in offshore produced water have proved difficult for conventional technologies to reliably meet the overboard discharge specifications set by the EPA.

“MyCelx system guarantees oil-free water and no sheen discharge into the environment,” said Andy Narayanan, Manager of Operations and Technical Services at MyCelx. “The Jack/St Malo will be implementing MyCelx produced water treatment system specifically designed to handle the difficult WSO's from deep water drilling operations. We are currently in the process of design discussion with Chevron and Mustang. Current schedule is to deliver the system to Mustang Engineering by May 2011."

The Jack and St. Malo fields are being developed in the Lower Tertiary trend in deepwater Gulf of Mexico. The fields are estimated to contain total recoverable resources equivalent to more than 500 million barrels of oil. MyCelx produced water treatment system will treat up to 70,000 barrels per day.
Source: Businesswire

Posted on 4/21/2011 / 1 comments / Read More

OGX Announces the Presence of Hydrocarbons in the Pipeline and Waikiki Accumulations

A OGX Petróleo e Gás, the Brazilian oil and gas company responsible for the largest private sector exploratory campaign in Brazil, announced that it has identified the presence of hydrocarbons in the Albian section of 3-OGX-40D-RJS well and in the Albian-cenomanian section of the well 3-OGX-41D-RJS, both appraisal wells from the Pipeline and Waikiki accumulations, respectively.

“The wells OGX-40 and OGX-41 confirmed the successful OGX delimitative campaign in the Campos Basin and reinforced the Company’s base case to develop the 4.1 billion barrels already discovered in the Campos Basin,” stated Paulo Mendonça, Executive General Officer and Exploration Officer of OGX.

“The accumulations of Pipeline and Waikiki are among the priorities to be developed for production, due to the advanced stage of the discoveries’ delimitation and the quality of the reservoirs,” commented Reinaldo Belotti, Production Officer of OGX.

The well OGX-40 found an oil column of approximately 204 meters with a net pay of about 107 meters in carbonate reservoirs in the Albian section. The well OGX-41 discovered an oil column of approximately 148 meters with a net pay of about 92 meters, also in carbonate reservoirs in the Albian-cenomanian section.

The well OGX-40D is the second appraisal well in the Pipeline accumulation discovered by the well OGX-2A. The first appraisal well of the accumulation was the OGX-36, which also confirmed the presence of oil and contributed to its delimitation. The well OGX-41D is the second appraisal well of the Waikiki accumulation, discovered by the well OGX-25, with OGX-35 being the first appraisal well. The discoveries’ evaluation plans for the Pipeline and Waikiki will soon be proposed to ANP.

It is worth noting that wells OGX-40 (Pipeline) and OGX (Waikiki), as well as the wells OGX-35 (Waikiki), OGX-36 and OGX-39HP (both in the Pipeline accumulation), would increased OGX’s contingent resources area, in case the certification happened at this moment.

Both wells are deviated and pilots for horizontal wells, in which drill-stem tests could be performed to verify the productivity of these areas, as was done recently for the Waimea accumulation, where exceptional results were obtained.

The OGX‐40D well is located in the BM‐C‐41 block and is situated about 79 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 130 meters. The Sea Explorer rig initiated drilling activities there on March 28, 2011.

The OGX‐41D well is located in the BM‐C‐39 block and is situated about 89 kilometers off the coast of the state of Rio de Janeiro at a water depth of approximately 104 meters. The Ocean Lexington rig initiated drilling activities there on April 3, 2011.Source: OGX

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BP sues Transocean for $40 bln over oil spill

On the first anniversary of the Gulf of Mexico oil spill, BP Plc sued Transocean , seeking at least $40 billion in damages and other costs from the owner of the Deepwater Horizon rig.

London-based BP also sued Cameron International Corp for negligence, saying a blowout preventer made by Cameron failed to avert the catastrophe.
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Source: Reuters

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L-3 Maritime Systems Wins Contract to Provide Seaframe Control System

L-3 Maritime Systems announced today that it has been awarded a contract from General Dynamics Advanced Information Systems to supply its Seaframe Control System for the next Independence variant Littoral Combat Ship (LCS). The contract is for the first ship and includes options for an additional 14 ships.

L-3 Maritime Systems' Seaframe Control System will provide advanced automation and control of the ship's propulsion, electrical, ventilation and other machinery systems. The system's automation capabilities successfully achieve the reduced manning requirements mandated for the U.S. Navy's newest class of surface ship combatants.

"We are pleased to deliver affordable, open architecture solutions to the U.S. Navy for this program, and look forward to working with General Dynamics and its prime contractor, Austal, to provide the Navy with these extremely capable ships," said Don Roussinos, president of L-3 Maritime Systems.

L-3 Maritime Systems, a division of L-3 Marine & Power Systems, is a leading supplier of marine systems and electronics, including integrated bridge, navigation, communications, control and sensing systems for the U.S. Navy, the Military Sealift Command, the U.S. Coast Guard and allied navies. L-3 Maritime Systems also produces solutions for naval applications such as automated battery and environmental monitoring systems, alarm and announcing systems, video data distribution systems, computer information systems, integrated communications systems, and integrated platform management systems.

Comprised of more than 25 operating companies, L-3 Marine & Power Systems (L-3 M&PS) is a worldwide leader in maritime automation and control, navigation, communications, dynamic positioning, and power distribution and conditioning for the U.S. Navy, allied foreign navies and commercial customers worldwide. With over 94 locations in 20 countries, L-3 M&PS is a cohesive, global partner with extensive capabilities and a proven track record in delivering the highest level of technology, service and integration. 

Headquartered in New York City, L-3 Communications employs approximately 63,000 people worldwide and is a prime contractor in C³ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems, aircraft modernization and maintenance, and government services. L-3 is also a leading provider of a broad range of electronic systems used on military and commercial platforms. The company reported 2010 sales of $15.7 billion.

Source: L-3 System

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"Nevsky Shipyard", LLC has laid down the keel of the second self-propelled dry-cargo vessel

April 20, 2011 - "Nevsky Shipyard", LLC has laid down the keel of the second self-propelled dry-cargo vessel, project RSD49.

On December 20^th, 2011 a keel-laying ceremony for a self-propelled dry-cargo vessel, project RSD49, Yard No. 402, took place at "Nevsky Shipyard", LLC.

This vessel is the second in a series of 10 river-sea dry-cargo vessels of 7,000 dwt, project RSD49. The RSD49 vessels are indented for J.S. "North-Western Shipping Company". The vessels have been constructed at "Nevsky Shipyard", LLC since December, 2010. A solemn ceremony of keel-laying for lead self-propelled dry-cargo vessel of project RSD49, Yard No. 401, took place on December 14^th, 2010. 

The Project is developed by "Marine Engineering Bureau-Design-SPb", JSC in close co-operation with the specialists of the Customer and Shipyard.

The vessels are being constructed in accordance with the Rules of and under supervision of Russian Maritime Register of Shipping (RMRS) and will be classed with:

 КМ     Iсе2 R2 AUT1-C

Self-propelled dry-cargo vessel of project RSD49 is intended for carrying general and bulk cargoes as well as timber. In addition, the second hold of the vessel with length 50 m makes it possible to transport long items of cargo, in particular large-diameter pipes for gas and oil pipelines. Also the vessel will transport packaged timber, metal and metal scrap, large-dimension and heavy-weight cargoes and some hazardous cargoes.

All the vessels of the series will have advanced equipment in the Engine room: WARTSILA engines, type 6L20, automatic auxiliary diesel-generators. Automation class will make it possible for one man to operate the vessel from the captain's bridge.

The vessel will have the following principal dimensions and features:

• Length overall 139.95 m
• Breadth overall 16.7 m
• Draft in river 3.6 m
• Cargo holds, length 25 m + 50 m + 25 m
• Deadweight in river (draft 3.6 m) about 4525 t
• Deadweight at sea (draft 4.7 m) about 7000 t
• Capacity of cargo holds about 10900 m3

The vessels of project RSD49 with their displacement will be the largest dry-cargo vessels to meet the requirements for dimensions of Volga-Don Ship Canal.
Source: Nevsky Shipyard

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