Rolls-Royce wins China AHTS equipment order

The contract is to equip nine SPA80A Anchor Handling Tug Supply vessels to be designed and built by Sinopacific Shipbuilding Group and owned and operated by the Abu Dhabi National Oil Company (ADNOC) and its wholly-owned subsidiary, ESNAAD.

The vessels will be built at Sinopacific’s Zhejiang Shipyard and the first vessel is due for delivery in 2017.

Each ship will have a bollard pull of 80 metric tonnes will be equipped with Bergen diesel engines, main and tunnel thrusters, electrical power system and a deck machinery package from Rolls-Royce.

“The visit of Rolls-Royce senior executives to Sinopacific in 2013 reinforced the relationship between our two companies as did the provision of  Rolls-Royce integrated equipment packages for Sinopacific’s in-house designed SPA150 AHTS series. This was a first for Rolls-Royce in the Chinese market,” said SinJiang Qiang, Chief Executive Officer of Sinopacific. “The Rolls-Royce Chinese team has provided us with great support by staying close, enhancing communications and giving us confidence for future cooperation. Sinopacific aims to work closely with our strategic partners, such as Rolls-Royce, presenting the best products and services for our ship owners while strengthening our leadership in the most demanding markets.”

“This is a significant contract. It demonstrates our market leading capabilities in a wide range of offshore marine products, and our ability to combine them in a way that creates real value for our customers,” said Richard Wang, Rolls-Royce, Senior Vice President Commercial – Marine.  “We look forward to working with and continuing a profitable and long-lasting relationship with Sinopacific.”

Felony charges brought against platform operator

According to the Bill of Information, on or about November 26, 2012, ERT knowingly and willfully failed to comply with the regulations for hot work on its offshore production platform known as Ship Shoal 225. Specifically, it is alleged that ERT violated Title 30, Code of Federal Regulation, Section 250.113(c)(4), which mandates that welding and associated activities, also known as hot work, on offshore facilities may not take place within 10 feet of a well bay unless production in that area is shut-in.

On or about November 27, 2012, on Ship Shoal 225, ERT is further alleged to have knowingly and willfully failed to comply with the regulations for blowout preventer testing. A blowout preventer system is designed to ensure well control and prevent potential release of oil and gas and possible loss of well control.

ERT is also alleged to have violated the Clean Water Act by tampering with the method of collecting the monthly overboard produced water discharge samples to be tested for oil and grease content pursuant to its NPDES permit. As required by its NPDES Permit, ERT is prohibited from introducing into the Gulf of Mexico produced water in which the oil and grease content exceed a monthly average of 29 mg/l. Produced water is that which is brought up from the hydrocarbon-bearing strata during the extraction of oil and gas, and can include formation water, injection water, oil and any chemicals added downhole or during the oil/water separation process. ERT collects and submits monthly samples of its produced water to a laboratory for testing to determine whether the quantity of oil and grease contained in the produced water exceeds a monthly average of 29 mg/l, as required by its NPDES Permit.

The Bill of Information, filed Monday, alleges that beginning at a time unknown, but continuing to on or about March 2014, ERT tampered with the monitoring methods for the collection of the overboard water samples on nine of its offshore facilities in violation of Title 33, United States Code, Section 1319(c)(4). Most recently, on or about June 9, 2015, ERT is alleged to have knowingly discharged and caused a discharge of a pollutant from a point source into the Gulf of Mexico without a permit in violation of Title 33, United States Code, Section 1319(c)(2)(A).

If convicted, ERT faces a maximum term of probation of five years per count and/or a maximum fine of $500,000 per count or twice the gross gain or twice the gross loss to any person pursuant to statute.

The case was investigated by the Department of Interior-Office of Inspector General (Energy Investigations Unit) with assistance from the Investigations and Review Unit, Bureau of Safety and Environmental Enforcement and the Environmental Protection Agency-Criminal Investigation Division.

The case was prosecuted by Assistant United States Attorney Emily K. Greenfield of the United States Attorney’s Office’s National Security Unit.

Read the Bill of Information HERE

Seacor eyes spin off of offshore business

NOVEMBER 30, 2015 — Seacor Holdings Inc. (NYSE: CKH) is positioning itself for a potential spin off of its offshore marine subsidiary, Seacor Marine Holdings Inc. (SMH). Seacor Holdings has agreed to

Criminal charges filed in West Delta 32 platform fire case

According to the indictment, the defendants were involved in different capacities while construction work was being done of the West Delta 32 platform when it exploded.

Black Elk Energy Offshore Operations LLC and Grand Isle Shipyards Inc. are charged with three counts of involuntary manslaughter, eight counts of failing to follow proper safety practices under the Outer Continental Shelf Lands Act (OCSLA) and one count of violating the Clean Water Act. Wood Group PSN Inc., Moss, Dantin and Srubar are charged with felony violations of OCSLA and the Clean Water Act.

The Outer Continental Shelf Lands Act and federal regulations govern welding and activities that generate heat or sparks, known as “hot work,” on oil production platforms in U.S. waters. Because this work can be hazardous and cause explosions, regulations mandate specific precautions that must be taken before the work can commence. For instance, before hot work can be performed, pipes and tanks that had contained hydrocarbons must be isolated from the work or purged of hydrocarbons. Gas detectors and devices used to prevent gas from traveling through pipes must be used. According to the Indictment, these safety precautions were not followed and an explosion causing the deaths of three men and a spill resulted

“Workers lives can depend on their employer’s faithfulness to the law, not least of all those working in oil and gas production where safety must be a paramount concern,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and natural Resources Division. “The Justice Department is committed to enforcing the nation’s bedrock environmental laws that protect the environment, and the health and safety of all Americans.”

“The energy sector represents a vital industry in this region, but its work must be performed responsibly,” state U.S. Attorney Kenneth Polite for the Eastern District of Louisiana. “Today’s indictment underscores that we will hold accountable all parties – both businesses and individuals – whose criminality jeopardizes our environment or risks the loss of life.”
“Developing domestic sources of energy must be done responsibly and safely,” said Assistant Special Agent in Charge Dan Pflaster of EPA’s Criminal Enforcement Program in Louisiana. “EPA will continue to work with its law enforcement partners to hold companies fully accountable for illegal conduct and to assure compliance with laws that protect the public and the delicate Gulf Coast ecosystem from harm.”

The Department of Justice notes that “an indictment is only an allegation of wrongdoing and the defendants are presumed innocent unless proven guilty at trial.”

The case was investigated by the U.S. Department of Interior Office of Inspector General and EPA’s Criminal Investigations Division. The case is being prosecuted by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana and by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice.

Oil demand will triple in 2016, price to hit $60 per barrel

NOVEMBER 18, 2015—Are you ready for an oil rebound? Barclays Corporate Banking is predicting that next year the demand for oil will triple and crude oil will hit $60 per barrel. Barclays

Good news, bad news from Sembcorp Marine

The good news is that subsidiary Sembcorp Marine Rigs and Floaters Pte. Ltd. has secured a contract to design and build a new floating, storage and offloading (FSO) vessel for MODEC Offshore Production Systems (Singapore) Pte. Ltd. (MOPS), a subsidiary of MODEC, Inc.

The bad news is Marco Polo Marine Ltd yesterday canceled a $214 million contract placed by subsidiary MP Drilling at Sembcorp Marine’s PPL Shipyard for the construction of a high-spec Pacific Class 400 jack-up.

“In arriving at this decision to terminate the rig construction contract,” said Marco Polo, it had taken into account “various factors including cracks found on all three legs of the New Rig during two rounds of tests, notwithstanding repair works carried out by PPL after the first round of tests.”It said it would not be taking delivery of the rig and would be seeking return of its initial $21.4 million payment, plus interest.

Today, Sembcorp Marine said that PPL Shipyard had not received any notice of termination of the construction contract at the time it learnt of the announcement.

“PPL Shipyard disagrees with the allegations in the announcement and will regard this as repudiatory breach of the contract, and will terminate the Contract and claim amounts due under the Contract against MP Drilling and its guarantor Marco Polo Marine,” said Sembcorp Marine. “PPL Shipyard will take the necessary steps to enforce its rights.

MODEC FSO

Scheduled for delivery in first quarter 2018, the new floating, storage and offloading (FSO) vessel ordered by MODEC Offshore Production Systems (Singapore) Pte. Ltd.(MOPS) will be Sembcorp Marine’s first FSO newbuilding secured on a full turnkey project basis including Engineering, Procurement, Construction and Commissioning (EPCC). MODEC will supply the internal turret and topside modules (vapor recovery unit and metering skid) which Sembcorp Marine will install and integrate.

Mr. William Gu Wei Guang, Head of Sembcorp Marine Rigs & Floaters, said: “This is our 24th project working with MODEC and the first newbuild FSO for SCM Rigs & Floaters. The FSO will be built using our facilities at Tuas Boulevard Yard. We thank MODEC for placing their confidence and trust in us.”

When completed, the FSO will be deployed at Maersk Oil’s Culzean field, the largest new oil and gas field to have been discovered in the North Sea for a decade, and recently approved by the UK Oil & Gas Authority for development.

Powerful new fast supply/crew boat for SEACOR Marine

NOVEMBER 18, 2015—Aluminum boatbuilder Gulf Craft, LLC, Franklin, LA, has long been known as a leader in building high-speed fast supply boats and crewboats. Its latest delivery is the 206 ft x

Bordelon takes delivery of next generation ULIV

The highly specialized 257 ft x 52 ft vessel features a helideck, a 60 ton AHC crane with 3,000 m of wire, POB (60), a mezzanine deck with internal office and control rooms capable of supporting two full work class ROV systems. The vessel also offers 6,200 sq. ft. of clear useable deck space.

The Brandon Bordelon is equipped with two Sonardyne Ranger2 Pro thru-hull USBL full systems. Ranger 2 is a high performance acoustic position reference system designed for tracking underwater targets and positioning dynamically positioned (DP) vessels. It uses the Ultra-Short BaseLine (USBL) positioning method to calculate the position of a subsea target, for example an ROV, by measuring the range and bearing from a vessel-mounted transceiver to an acoustic transponder fitted to the target.

The vessel delivers a fully integrated ROV control room, ROV support offices, below deck work and storage spaces, extensive communications and ROV data network, plug and play, with patch panel racks installed — all tied into the vessel systems, bridge, office, and accommodation spaces.

The vessel is designed with removable bulwarks around the entire aft of vessel along with power, water, air, and hydraulic oil connections on the deck.

Four additional below deck Tier 3 generators provide fully redundant power to the crane and ROV systems.

“We are very excited to introduce the M/V Brandon Bordelon,” says CEO Wes Bordelon. “This vessel is the next generation design of the Stingray series and continues our commitment of the ULIV concept to the subsea market. With the addition of a helideck and other integrated systems the Brandon provides an additional highly capable and low cost vessel option to our clients.”

Download the vessel’s specs HERE

Brandon 700 bottom

GulfMark Offshore files $250 million shelf registration

The form S3 positions the offshore services company to sell up to $250 million in securities “from time to time after the effective date of this registration statement, as determined by the registrant.”

The filing says that the company “will use the net proceeds from the sale of securities sold by us for general corporate purposes, which may include the repayment of debt, acquisitions, capital expenditures and working capital. We may temporarily invest funds we receive from the sale of securities by us that we do not immediately need for these purposes.”

According to the filing, in the nine months ended September 30, 2015, Gullmark Offshore’s losses from continuing operations were $198.6 million.

New report projects OSV demand will grow 75% by 2020

That’s heartening news for Offshore Support Vessel (OSV) operators such as Tidewater, Edison Chouest, Bourbon, Hornbeck Offshore, Seabulk and Maersk, which are dealing with the current challenging offshore oil and gas market. In a presentation at the recent Johnson Rice 2015 Energy Conference, Tidewater reported it had 38 vessels stacked as of the end of June and planned to scrap 11 older vessels.

In its monthly report for September, Baker Hughes reported that there were 29 drilling rigs operating in the Gulf of Mexico, down from 59 a year ago.

Mordor Intelligence’s report, the “Global Offshore Support Vessel Market,” focuses on the market sectors by vessel type, including Anchor Handling Tug/Anchor Handling Towing Supply Vessels (AHT/AHTSs), Multi-Purpose/Multi-Role Supply Vessels (MPSV), Platform Supply Vessels, Construction Support Vessel (CSV), Specialty Vessels and others. It also breaks down activity by region: North America, Europe, the Asia-Pacific (APAC), South America and Middle-East & Africa (MEA). The report analyzes and projects the market share of each region for the next 5 years.

Most promising regions for OSV market are the Gulf of Mexico, Brazil, West Africa, the North Sea, South East Asia, the Middle East and Asia. Mordor Intelligence estimates that major part of the demand will be for AHTS, PSVs, and seismic research vessels.

As oil and gas explorations move towards deeper waters, explains Mordor Intelligence, multi-functional offshore support vessels are now called upon to perform different tasks, and have created various niches or categories within the market. Present day offshore support vessels are equipped with increased cargo capacity, panoramic navigation bridge visibility, large accommodation spaces, enhanced crew amenities and state-of-the-art propulsion and automation systems.

According to Mordor Intelligence, AHTS vessels comprise a 56% of the market share, followed by Platform Support Vessels. Inspection, Maintenance and Repair (IMR) Vessels are generally equipped with large accommodation spaces, heavy lift cranes, helidecks and streamlined bow forms for operation in harsh environments. Vessels specialized for multi-tasking carry out maintenance and repair operations on platform facilities, as well as subsea pipelines and equipment.

 

 

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