Exploration

Newest vessel launched

PGS launched the newest vessel in the fleet with the Ramform Sovereign being delivered from Aker Yards Langsten, and christened in Alesund, Norway. The new vessel is 52 ft (16 m) longer than the previous Ramforms with significantly higher acquisition and transit speed, 25% longer endurance, and 60% higher production capacity compared to the existing Ramform fleet. The Sovereign’s power plant supplies the ship with 30,000 hp. The vessel features many new innovations, including a roll compensated helideck, steerable sources, dual workboat capacity and unique gear handling systems. The range of technologies employed make this a new benchmark for 3-D, 4-D and wide-azimuth acquisition in terms of productivity, efficiency, safety and data quality.

UK seismic contract awarded

Bergen Oilfield Services (BOS) has recently been awarded a contract by Lundin to undertake a 3-D seismic survey in the UK sector of the North Sea. The project will use BOS Arctic, BOS’s six-streamer 3-D vessel, to undertake approximately 96 sq miles (250 sq km) of survey during the 2008 European summer.

Expanding into China

GGS-Spectrum, a provider of advanced seismic data processing, multiclient surveys and offshore acquisition, has legally incorporated its Beijing-based GGS-Spectrum (BJ) International Oil Technology Inc. The new GGS-Spectrum subsidiary will build upon two years of successful collaboration as a joint venture and remote support center with the parent company.

New 3-D viz system implemented

Barco recently implemented the latest 3-D visualization technology at RSK [UK] Limited. The solution, consisting of Barco’s new Galaxy NH-12 projection system, allows RSK business and technical teams to simultaneously view geophysical data, reservoir models and well bore plans to better quantify and manage risk of E&P assets.

Geophysical equipment bought

FirstGrowth Exploration & Development Services Corp. has signed a multiyear business alliance with ION Geophysical Corp. of Houston. The two companies have agreed to a series of multiyear arrangements for the purchase of ION’s equipment and services, including but not limited to wireless seismic instruments for full-wave (multicomponent) data recording using VectorSeis sensors.

Drilling

Real-time drilling data reduces cost

Smith Technologies, a business unit of Smith International, Inc. and Moblize formed an alliance to provide operators with real-time data that will significantly improve drilling operations. The undertaking will focus on applying a new integrated workflow process for drilling operations, which uses the Web-based wellsite information transfer standard markup language (WITSML) as the foundation for bringing together the relevant experts in a real-time environment where they can communicate on data that is automatically shared and continuously updated. Moblize’s front line portable real-time aggregator, DARP Rig, can compile, aggregate and transmit information from a variety of well site providers. A combination of these will deliver advanced visualization data to allow for faster, more informed decisions.

Advanced marine riser selected

Pride International, an offshore drilling contractor, has selected the latest version of the MR-6 marine riser system from VetcoGray, a GE Oil & Gas business, for use on a new deepwater drill ship that will be completed in 2010. VetcoGray will supply two MR-6H SE Marine Riser Systems, which offer improved safety and efficiency for the offshore drilling industry. The system combines innovative design with the field-proven technology of the previous MR-6 dog style marine riser systems and the H-4 subsea wellhead connector locking mechanism. The VetcoGray riser is designed to operate in water depths of 12,000 ft (3,660 m). The two MR-6H SE systems will be manufactured at the GE Oil & Gas VetcoGray facilities in Houston, and will be shipped in the fourth quarter of 2009 and the second quarter of 2010.

New rig uses quick-move tech

IDM Group, a Houston, Texas-based manufacturer of drilling systems, was awarded a construction contract from Union Drilling, Inc. to provide a 1600 hp AC QuickSilver drilling system. Upon delivery, expected in June of this year, the rig is slated for operations principally in Pennsylvania targeting the Marcellus Shale formation. The QuickSilver drilling system is designed with quick-moving drilling rig technology, which reduces rig-up and rig-down time. The QuickSilver is designed to rig down, then rig up on a new location (within 100 miles or 161 km) in less than 48 hours. Elevated components are raised with hydraulic cylinders; no cranes are required.

Drilling industry grows

According to a report commissioned by Scottish Enterprise, the multibillion dollar global offshore drilling industry is set to grow by 50%. Researchers found that more than US $305 billion worth of planned investment from 2007 to 2011, which is an increase from the $204 billion spent from 2002 through 2006. The study also determined the growth to be a combined result of increased drilling and the move to deeper more challenging environments. Deepwater regions like West Africa and Latin America and the harsh conditions of the Arctic Circle will continue to push technical expertise and expenditure in the near future. The study predicts deepwater spending to grow from 21% of the 2006 global drilling market to 29% by 2011, with Africa accounting for roughly a third of deepwater expenditure over the next five years.

NOCs fuel PDC expansion

Varel International’s Varel Europe subsidiary, the base of the company’s Eastern Hemisphere Operations, will expand its Tarbes, France-based polycrystalline diamond compact (PDC) drill bit manufacturing facility. The growth is a result of increased drilling activity by National Oil Companies and their investments in PDC drill bit production. Opened in 1999, the Tarbes facility has since doubled its manpower and quadrupled its production. According to the company, NOCs supply more than half of its total revenue.

Production

CBM gets a window

According to the Unconventional Natural Gas Report, Sen. Mike Green, D-Raleigh, won a partial victory as West Virginia’s 2nd Session of the 78th Legislature came to an end. Green, a major proponent of the burgeoning coalbed methane industry in southern West Virginia, secured an administration bill that will qualify operators for a five-year tax exemption if the company is already in the ground either producing or extracting methane by New Year’s Day 2009. Green sought to provide a two-year window to get in the ground, but admitted that, “this process is about compromise.” Also in the bill, counties where methane is derived will get 75% of the revenues pumped into the Infrastructure Council for water and sewer projects — an estimated payment of US $45 million. Coalbed methane producers have invested some $700 million in the region within the past eight years, Green pointed out.

Malaysia signs PSA

Exxon Mobil Corp. subsidiary ExxonMobil Exploration and Production Malaysia Inc. has signed a 25-year production-sharing contract with Petronas, Malaysia’s national oil company. The companies will work together to help ensure sustainable energy supplies for Malaysia. The contract includes commitments to implement significant enhanced oil recovery activities as well as continued conventional oil development.

Deal signed for subsea trees

Aker Kværner has signed a three-year frame agreement with Petrobras to supply subsea trees and related equipment in Brazil. Scope of work comprises 45 subsea trees and six complete tool sets plus related accessories and spare parts. Deliveries will begin in Q3 2009 and are targeted for completion by the end of 2011. The agreement is worth approximately US $223 million.

Denali is underway

BP and ConocoPhillips have combined resources to start Denali — The Alaska Gas Pipeline. The pipeline will move approximately 4 Bcf/d of natural gas to markets, and will be the largest private sector construction project ever built in North America. Both operators plan to spend US $600 million to reach the first major milestone, an open season, commencing before yearend 2010. Following a successful open season, a process during which the pipeline company seeks customers to make long-term firm transportation commitments to the project, the companies intend to obtain Federal Energy Regulatory Commission (FERC) and National Energy Board (NEB) certification and move forward with project construction. The FERC and NEB certificates are the critical permits that provide government authorization to construct a pipeline. The project consists of a gas treatment plant on Alaska's North Slope and a large-diameter pipeline that travels more than 700 miles through Alaska, and then into Canada through the Yukon Territory and British Columbia to Alberta. Should it be required to transport gas from Alberta, the project will also include a large diameter pipeline from Alberta to the Lower 48 states.


General


Technology center inaugurated

Baker Hughes Inc. held an open house in Houston, Texas to celebrate the opening of Phase I of its new Center for Technology Innovation (CTI). The US $42 million facility will serve as a hub for the company’s research and engineering teams to achieve test full-size prototypes of next generation downhole completion tools. The test environment has up 40,000 psi capability with temperatures of up to 700ºF (371°C). Specific focus will be placed on technologies in four areas including deepwater wells, extreme high-pressure/ high-temperature (HP/HT) applications, production optimization and large-diameter “big bore” completions. The center also contains research labs for materials, fluids, elastomers, composites and electronics and prototype manufacturing capabilities.

Constructive meeting held

Montana’s Governor Brian Schweitzer brought both environmentalists and leaders in the coalbed methane industry together earlier this year in an effort to encourage the opposing interests to work together. According to the Unconventional Natural Gas Report, both sides found it to be constructive. The meeting included presentations from several developers from Alberta, Canada, who shared their experiences on several ways the resource has been developed responsibly in Canada. Schweitzer commented in an interview after the meeting, “I’d like to develop it (coalbed methane); I just want to make sure we do it right.” Many improvements were suggested, in particular giving more rights to the surface landowners in cases where they don’t own the minerals. Overall, the meeting was considered a good exchange.


Mexico’s left wants oil debate

According to AFX News Limited, Mexico’s foremost leftist leader, former presidential candidate Andres Manuel Lopez Obrador, reiterated calls for a national debate on the reform bill. Introduced by President Felipe Calderon, the current bill allows state oil company Pemex to partner with private companies for oil exploration and refining. Mexico, the sixth largest oil producer in 2006, has seen a decline in its production, and reform advocates insist that Pemex needs outside resources to explore for more reserves. Mexico’s Constitution bans most private and foreign involvement in the industry, although Pemex subcontracts some work to private firms. The proposed bill would allow Pemex to pay bonuses to private companies but not a share of the oil profits. The country’s oil revenues accounts for nearly 40% of the national budget. According to the BBC, The head of Pemex, Jesus Reyes Heroles, stated, “We have to make clear that for Pemex, this reform is a matter of survival.” Mexico’s Congress will end its spring session on April 30, to resume on Sept. 1. The protestors are hoping to quell the passage of the new, while calling for a 120-day debate on the issue.

Major announces major investment

Exxon Mobil Corp. plans to invest more than US $125 billion in capital spending over the next five years to deliver major projects to help meet growing world energy demand. Chairman and Chief Executive Officer Rex Tillerson claimed, “With our technology advantage and an industry-leading portfolio of 119 projects that are expected to support development of more than 24 billion oil-equivalent barrels of energy, ExxonMobil will continue to be an industry leader in bringing new supplies to the market.” From 2008 to 2010 alone, the company expects to participate in the start up of 19 new projects which, at peak, would collectively add more than 725,000 boe/d to the company’s production. The operator expects to start up multiple projects over the next three years across the full value chain of the liquefied natural gas (LNG) business, including production, transportation and distribution. The company also plans to commission four of the world’s largest liquefaction facilities and new LNG ships which can carry 80% more natural gas than conventional ships.