SEPTEMBER 29, 2015—Publicly traded Freeport-McMoRan reported that it discovered oil from its Horn Mountain Deep well in the Deepwater Gulf of Mexico (GOM). Initial production from the well, which will be tied back to
The contract includes a 215-day base period, nine one-year option periods and one 150-day option period. The cumulative value of this contract when option one is exercised will be $44,159,520. Work will be performed at sea worldwide, and is expected to be completed by Sept. 30, 2016.
Subject to availability, fiscal 2016 operations and maintenance contract funds in the amount of $26,615,520 are being obligated at the time of award, and will not expire at the end of the current fiscal year.
This contract was issued on an other than full and open competition basis in accordance with Federal Acquisition Regulation, Sec 6.303.
Military Sealift Command, Washington, District of Columbia, is the contracting activity.
Since their construction by Leevac Shipyards in 2008 and 2009, three 250EDF class OSVs, the HOS Arrowhead, the HOS Eagleview and the HOS Westwind have supported the U.S. Navy’s submarine fleet on the east and west coast of the U.S. In order for the Navy to continue receiving the unique capabilities of these vessels, Congress subsequently required their purchase from HOS, which sold them to the Navy for $114 million. A fourth vessel, HOS Black Powder, remained on charter to the Navy, with an option for purchase that was expected to close September 30, 2015.
In the North America region, DOF Subsea has secured a major IMR contract with Husky Energy in support of its operations offshore Eastern Canada. The DOF Subsea team based in St. John’s will supply IMR services over aperiod of 10 years firm with 10 years options.
The work scope includes a Light Intervention Vessel and two work class ROV systems and personnel. The offshore operations will commence in 4th quarter 2015 by mobilizing two work class ROVs on a third party vessel on charter to Husky, followed by delivery of a DOF IRM vessel in 2017.
DOF Subsea says the contract is of strategic importance, substantially strengthening its presence in the Canadian offshore market and establishing a solid relationship with Husky Energy.
Another North America region award is a term contract in the Gulf of Mexico for a firm period of 10 months with option to extend.Operations will commence in October 2015.
One of the group’s subsea vessels will be utilized under the contract, which is an extension of a current contract held by DOF Subsea North America for a key client in the region.
In the Asia Pacific region, several contract awards in recent weeks with key clients will secure utilization of the region’s vessels. The scope of work includes IMR services, mooring and light construction. With these recent awards, close to full utilization of the region’s foue vessels for the reminder of the year is secured, as well as a good visibility for 2016.
DOF ASA CEO Mons S. Aase commented: “I am very pleased with the Group’s ability to secure term work in a challenging market, and especially winning the Husky contract and strengthening the North America subsea region. This award is a team effort, utilizing the expertise within all disciplines in the DOF Group.”
Developed for crane operations and light subsea construction with intervention duties, the 98.1m x 20 m vessels will be of Vard 3 08 design by Vard Design in Ålesund, Norway.
They will be delivered from Vard’s Brattvaag shipyard in Norway in 3Q 2017 and 4Q 2017 respectively. The hulls will be constructed at the Vard Tulcea shipyard in Romania.
The DP2 class vessels will have a 120-ton active heave compensated offshore crane with the capability to reach working depths of 3,000 m.
Subsea equipment can be lowered down onto the seabed through a 7.2 m x 7.2 m moonpool or over the side of the ship.
Both vessels will be prepared for two Remote Operated Vehicles (ROVs), deployed via Launch and Recovery Systems (LARS) in the ship’s side.
The vessels will be built according to the latest Special Purpose Ship (SPS) regulations, and can accommodate up to 82 persons in high standard cabins.
“We are honored to receive these contracts from our new customer in Dubai, and are pleased to welcome the company into Vard’s client portfolio,” said Vard CEO and Executive Director Roy Reite. “We look forward to developing these new vessels closely with the Topaz team.”
Shell found indications of oil and gas in the Burger J well, but they were not sufficient to warrant further exploration in the Burger prospect. The well will be sealed and abandoned in accordance with U.S. regulations.
In addition to the disappointing results from the Burger J, other reasons cited by Shell for deciding to end the Alaska program were its high costs and “the challenging and unpredictable federal regulatory environment in offshore Alaska.”
The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell’s Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third quarter 2015 results.
Here’s the full text of today’s statement from Shell:
Shell today provides an update on the Burger J exploration well, located in Alaska’s Chukchi Sea. The Burger J well is approximately 150 miles from Barrow, Alaska, in about 150 feet of water. Shell safely drilled the well to a total depth of 6800 feet this summer in a basin that demonstrates many of the key attributes of a major petroleum basin. For an area equivalent to half the size of the Gulf of Mexico, this basin remains substantially under-explored.Shell has found indications of oil and gas in the Burger J well, but these are not sufficient to warrant further exploration in the Burger prospect. The well will be sealed and abandoned in accordance with U.S. regulations.
“The Shell Alaska team has operated safely and exceptionally well in every aspect of this year’s exploration program,” said Marvin Odum, Director, Shell Upstream Americas. “Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the US. However, this is a clearly disappointing exploration outcome for this part of the basin.”
Shell will now cease further exploration activity in offshore Alaska for the foreseeable future. This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska.
The company expects to take financial charges as a result of this announcement. The balance sheet carrying value of Shell’s Alaska position is approximately $3.0 billion, with approximately a further $1.1 billion of future contractual commitments. An update will be provided with the third quarter 2015 results.Shell holds a 100% working interest in 275 Outer Continental Shelf blocks in the Chukchi Sea.
Operations will continue to safely de-mobilize people and equipment from the Chukchi Sea.
Today, the company said:
“A statement by Mr. Eduardo Costa Van Musa relating to the drilling contract for the Petrobras 10000 was made public this week through the Brazilian authorities investigating corrupt practices relating to Petrobras. In his statement, Mr. Musa said he believed he received payments from someone claiming to be a commercial representative of Transocean even though Mr. Musa also asserted that no such payments were necessary as Transocean had been awarded the contract as it was the best technical and economic bidder in a competitive process.
“Transocean has not identified any wrongdoing by any employee or any of its agents in connection with the company’s business.
“Transocean is investigating these recent allegations made by Mr. Musa and will also continue its efforts to ensure no violation of company policy or law has, or will, occur. Finally, if requested, Transocean will cooperate with governmental investigations.
Transocean is committed to doing business lawfully and with the highest ethical standards. The company has in place a comprehensive compliance program that encompasses our Code of Integrity and related policies, including requirements for risk-based due diligence of third parties, regular training, audits and more. In addition, Transocean has been following the ongoing investigations in Brazil and has taken what it and its outside counsel believe are appropriate responsive measures.”
At noon, Transocean’s stock was trading at $12.68.
He succeeds Jon Dunstan, who has resigned to pursue other interests outside of the company but will remain with it to hand over and assist Captain Kumar until February 2016.
Capt. Kumar, 55, has more than 25 years of experience in the marine industry. Prior to his appointment as CEO, he was Group Chief Operating Officer and executive director of EMAS Offshore’s parent, Ezra Holdings Limited. He has stepped down from those positions to concentrate on his new role with EMAS Offshore.
Prior to joining Ezra, he was an Assistant General Manager of Malaysian based offshore support services provider Bumi Armada Navigation Sdn Bhd.
Capt. Kumar is a qualified Master Mariner and holds a Certificate of Competency as Master of a Foreign Going Ship issued by the Malaysian Marine Department. During his seagoing career he held various positions onboard Malaysian International Shipping Corporation vessels.
“With his vast number of years of experience in the offshore industry, Capt. Kumar is a strong business leader we are fortunate to have in today’s challenging oil and gas environment,” said Mr. Lee Kian Soo, EMAS Offshore’s Executive Chairman. “He will be able to bring strategic insights to drive EMAS Offshore’s performance, maintain our leading position in Asia, and penetrate West Africa, which we have identified as a key market for us to grow in.”
The semi-submersible is the central processing facility (CPF) for the Inpex-operated Ichthys LNG Project offshore Western Australia,
The 150 m x 110 m central processing facility (CPF) processes the product received via flexible risers from production wells, separating it into gas and condensate.
A floating production storage and offloading (FPSO) facility receives the condensate which it stores and offloads onto tankers for shipping and export.
The gas is delivered via pipeline to an onshore gas liquefaction plant that extracts condensate and LPG then cools and liquefies the remaining gas.
Inpex President Director Australia Seiya Ito called the successful launch of the CPF one of the project’s most significant achievements.
“To see this enormous facility in the water is a testament to those who have worked for years to make it a reality,” Mr. Ito said. “This milestone is a clear demonstration that the Ichthys LNG Project is making good progress and that we are working in an excellent spirit of cooperation with our Korean contractors.”
“The operation was completed within two days in the safest conditions,” said Managing Director Ichthys LNG Project Louis Bon. “The CPF is now berthed quayside at the shipyard where work is continuing to lift and install the living quarters and integrate and commission all equipment in preparation for the CPF’s sail away. All teams are working together in a very efficient manner to achieve our next targets.”
Once completed, the CPF will be towed 5,600 kilometers to the Ichthys Field in the Browse Basin, where it will be permanently moored for the life of the Project – more than 40 years.
Time lapse video of CPF under construction
Today, for example, Fred. Olsen Windcarrier International Ltd reported that it has been awarded a contract with by Adwen Bremerhaven GmbH for the transport and installation of 70 Adwen 5 MW wind turbine generators for the Wikinger Offshore Wind Farm project located in the Baltic Sea within the German exclusive economic zone in the Baltic Sea.
The contract will commence in the first quarter of 2017 and is expected to be completed during the third quarter of 2017. Adwen has the option to extend the contract for anywhere between 14 days to six months.
Fred Olsen Windcarrier will use either one of its wind turbine installation vessels Brave Tern and Bold Tern for the project.The contract includes the provision of installation technicians from Global Wind Service A/S , a company indirectly owned 51% by Fred Olsen Wincarrier’s parent companies, Bonheur ASA and Ganger Rolf ASA.
SEPTEMBER 24, 2015 — Following a naming ceremony in Barcelona, Spain, yesterday, Promar Shipping Services has taken delivery of Mamola Defender. the second of two Damen PSV 3300 platform supply vessels ordered