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December 2015
World Trends and Technology for Offshore Oil and Gas Operations
TOP
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International Edition
Volume 75, Number 12
December 2015
Celebrating 60 Years of Trends, Tools, and Technology
34
CONTENTS
MIDDLE EAST AND NORTH AFRICA

National interest projects sustain
Middle Easts offshore rig count ............................................. 37
Against a backdrop of low oil prices and spending cutbacks in the
upstream E&P industry, the Middle East is the only major region in the
world yet to register sizeable decreases in the number of offshore drilling rigs holding current or future contracts.
Mellitah details plans to unlock

dormant discoveries offshore Libya ....................................... 39
Over the next seven years, Mellitah Oil & Gas is looking to develop
three Libyan offshore oil, condensate, and gas discoveries. Total costs
will likely exceed $7 billion, according to Khalifa Daw Musa, general
manager of geosciences and reservoir engineering.
TOP 5 PROJECTS
Chevron advances deepwater frontier
with Jack/St. Malo project ...................................................... 28
With first oil produced late last year, Chevron has advanced the boundaries of offshore exploration and production with its Jack/St. Malo
project in the deepwater Gulf of Mexico.
Spar platform proves successful

for Anadarko once again ......................................................... 32
Following the September 2014 decommissioning of its one-of-a-kind
cell spar, Red Hawk, in the Gulf of Mexico, Anadarko Petroleum Corp.
wasted no time before it made yet another mark in the Gulf. Moored
in more than 7,100 ft (2,164 m) of water, the Lucius spar is Anadarkos
biggest and most technically advanced to date, producing from multiple
resource-rich fields.
Delta House FPS is a first of its kind ...................................... 34

Heralded as one of the most efficient production systems in the Gulf of
Mexico, the Delta House development taps three Mississippi Canyon
fields where the average water depth is around 4,500 ft (1,372 m) and
reservoirs range from 12,000 to 18,500 ft (3,658 to 5,486 m).
Subsea compression prolongs

gas production at sgard offshore Norway ........................... 35
GEOLOGY & GEOPHYSICS

Somalia, East Black Sea opening up for exploration ............. 40
Frontier seismic surveys were due to start this fall offshore Somalia
and in the eastern Black Sea. For different reasons, the industry has
largely shunned both regions over the past two decades, but new developments are altering perceptions.
DRILLING & COMPLETION

New fracturing tool improves
extended-reach drilling efficiency .......................................... 41
Weatherford recently introduced a new system for stimulating the
open-hole section to the completion toe in extended-reach wells. The
system operates lower-completion tools remotely to minimize intervention and milling requirements and costs.
ENGINEERING,
CONSTRUCTION, & INSTALLATION
Technip assessing fatigue, weight issues
as subsea installations go deeper .......................................... 43
In mid-September, the worlds first subsea compression station began

operating at the sgard production complex in the Norwegian Sea. The
technology is designed to boost pressure at the Midgard and Mikkel
fields that export gas and condensate to the sgard B semisubmersible
processing platform nearly 40 km (25 mi) away.
At a recent presentation in London, Technip outlined some of the

technologies it is working on to extend the lives of producing subsea
facilities and to extend development to deeper water.
Perla marks first gas field to enter

production off Venezuela ........................................................ 36
Understanding the causes of equipment schedule delay is essential

in order to mitigate future delays in supply chain activities of major
offshore projects.
Cardn IV S.A., a 50/50 joint operating company between Repsol and

Eni, started production from the Perla gas field in the Gulf of Venezuela
in July 2015.
Vendor partnerships key to optimizing

supply chain management ...................................................... 44
Offshore (ISSN 0030-0608). Offshore is published 12 times a year, monthly, by PennWell Corporation, 1421 S. Sheridan, Tulsa, OK 74112. Periodicals postage paid at Tulsa, OK 74112 and at
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International Edition
ARTICLES FOR
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Volume 75, Number 12
December 2015
COVER: Offshore announces the Top 5

projects for 2015. The projects are selected
on the basis of the best use of innovation in production method, application of
technology, and resolution of challenges,
along with safety, environmental protection,
and project completion time. The cover
was designed by Adam Questell (questell@
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Use published editorial content to

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SUBSEA
Industry project seeks to update pipeline repair standards .................................... 47
Loss of production time due to repair operations offshore can equate to millions of dollars per
day in lost revenue. As a result, pipeline live repair is an attractive option for operators, and is
often preferred since it yields considerable flexibility and is highly opex-efficient. It is however,
technically challenging.
FLOWLINES & PIPELINES

Asphaltene inhibitor prevents deposition in deepwater GoM tieback ..................... 48
Safely controlling and treating asphaltene deposition is a major flow assurance challenge in
the offshore environment, where consequences and remediation can be far more involved and
costly than onshore.
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4 Offshore December 2015 www.offshore-mag.com
D E P A R T M E N T S
Online .................................................... 6
Comment ............................................... 8
Data ..................................................... 10
Global E&P .......................................... 12
Offshore Europe .................................. 16
Gulf of Mexico ..................................... 18
Subsea Systems ................................. 20
Vessels, Rigs, & Surface Systems ...... 22

Drilling & Production .......................... 24
Geosciences ........................................ 26
Business Briefs ................................... 61
Advertisers Index............................... 63
Beyond the Horizon ............................ 64
PERFORMANCE DRILLING TOOLS
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Drilling & Formation Evaluation
Well Construction
Completion & Stimulation
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The editors of Offshore have made their choices for the winners of the Five
Star Award the top five offshore field development projects for 2015. The winners were announced in a webcast on Dec. 17, and in the December issue. Learn
how the industry is applying the latest technologies for production and development in deepwater and other challenging offshore environments; addressing
key environmental and safety issues; and using lessons to make remote and
associated offshore fields economically viable and accessible to the market.
http://www.offshore-mag.com/webcasts/offshore/
2015/12/offshore-top-5-2015.html
Revolutionize your subsea pipeline inspection

technique and save over a third on the cost
versus conventional scanning techniques
Discovery has proven that it can deliver average savings of 35% on the
cost of subsea pipeline inspections. The unique technology allows inspection
through coatings while the pipe remains online. This results in reduced vessel
time and no deferment of production and revenue.
In this webcast Lee Robins, head of Subsea Services at Tracerco, discusses the
new breakthrough technology for inspecting subsea coated pipelines without
using PIGs as well as use of Nucleonics for asset integrity and flow assurance.
http://www.offshore-mag.com/webcasts/offshore/2015/12/
revolutionise-your-subsea-pipeline-inspection-technique-and-saveover-a-third-on-the-cost-versus-conventional-scanningtechniques.html
Exploring Shells FLNG technological

advances and opportunities
As the offshore industry looks to develop remote and stranded natural gas
fields, the use of floating liquefied natural (FLNG) vessels has become an
increasingly attractive option for production, processing, and storage. Shell has
been working on FLNG technology since the 1990s. By being the first company
to green-light an FLNG project the Prelude project, currently under construction Shell took the first step toward making its FLNG efforts a reality.
In this webcast Marjan van Loon, Vice President LNG & Integrated Gas in
Shell Projects & Technology, Shell Global Solutions, discusses how through
FLNG technology, Shell and others hope to unlock new offshore reserves that
otherwise would have been impossible to develop.
http://www.offshore-mag.com/webcasts/offshore/2015/11/exploringshells-flng-technological-advances-and-opportunities.html
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TAKE
THE
PLUNGE!
COMMENT
David Paganie Houston
Select projects earn special recognition

The editors of Offshore magazine have selected five projects that exemplify best-in-class
among those that recently achieved first production. Offshores Top 5 Projects for 2015 were
selected on the basis of best use of innovation in production method, application of technology,
and resolution of challenges, along with safety, environmental protection, and project execution.
Interestingly, two of the projects employ a variation of the design one, build two approach,
which is rapidly gaining momentum as project developers seek to improve efficiencies.
In no particular order, the winners are:
Jack/St. Malo
Chevron and partners produced first oil late last year from the Jack/St. Malo project in the
deepwater Gulf of Mexico. The Jack and St. Malo fields are among the largest in the GoM, and
are part of its Lower Tertiary Trend. The fields were developed with subsea completions tied
back to a single host, semisubmersible floating production unit (FPU) moored between the
fields. The FPU is the largest of its kind in the GoM. It is fitted with capacity to process 170,000
b/d of oil and 42 MMcf/d of natural gas, with the potential for future expansion. The successful completion of the project was the result of the collaboration of hundreds of suppliers and
contractors and thousands of workers across nine countries over a ten-year period.
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Lucius
Anadarko and partners achieved first oil from Lucius in the Gulf of Mexico in January of
this year, about three years from project sanction. The full cycle time from discovery to first
production was five years, about 10 months faster than the industry average of spar projects.
Moored in 7,100 ft (2,164 m) of water, Lucius is Anadarkos largest spar to-date. It produces
from multiple resource-rich fields spanning Keathley Canyon blocks 874, 875, 918, and 919.
The Anadarko-led consortium made several decisions throughout the project development
cycle that resulted in sizeable savings in both time and money.
Delta House
The LLOG-operated Delta House development in the deepwater Gulf of Mexico flowed
first oil in the second quarter of this year. Prompted by an expiring lease, the privately held
operator initiated platform design even before a discovery was made. And it was based on
its one-size-fits-most approach, which would enable it to work within a range of reservoir
characteristics. The Delta House host semisubmersible floating production platform is
moored in about 4,500 ft (1,372 m) of water. It is designed with capacity to handle 100,000
b/d of oil, 240 MMcf/d of gas, and 40,000 b/d of water.
sgard
In mid-September of this year, the worlds first subsea compression station began operating at the sgard production complex in the Norwegian Sea. The technology is designed to boost pressure at the Midgard and Mikkel fields that export gas and condensate
to the sgard B semisubmersible processing platform nearly 40 km (25 mi) away. In the
process, Statoil expects to extend the fields lives out to 2032, thereby extracting a further
306 MMboe of production.
Perla
Cardn IV SA., a 50/50 joint operating company between Repsol and Eni, started production from the Perla gas field in the Gulf of Venezuela in July of this year. Located in the
Cardn IV block 50 km (31 mi) offshore in 60 m (197 ft) water depth, Perla is estimated to
hold up to 17 tcf of gas in place, or 3.1 Bboe. The project partners believe Perla represents
the largest offshore gas field in Latin America, and also the first gas field to be brought to
production offshore Venezuela.
For more information on the award-winning projects, start on page 28 inside this issue and
see the Top 5 webcast hosted on Offshore magazines homepage: www.offshore-mag.com.
FIND US:
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G L O B A L D ATA
Worldwide day rates
Worldwide offshore rig count & utilization rate
Year/Month
Minimum
Average
Maximum
Drillship
2014 Nov
2014 Dec
2015 Jan
2015 Feb
2015 Mar
2015 Apr
2015 May
2015 June
2015 July
2015 Aug
2015 Sept
2015 Oct
$151,000
$151,000
$151,000
$151,000
$151,000
$97,000
$97,000
$97,000
$97,000
$97,000
$97,000
$97,000
$507,429
$506,413
$502,106
$508,094
$506,715
$503,214
$503,730
$509,781
$505,880
$495,020
$498,335
$503,369
$735,000
$735,000
$735,000
$735,000
$735,000
$735,000
$708,000
$670,000
$670,000
$670,000
$670,000
$670,000
Jackup
2014 Nov
2014 Dec
2015 Jan
2015 Feb
2015 Mar
2015 Apr
2015 May
2015 June
2015 July
2015 Aug
2015 Sept
2015 Oct
$43,300
$43,300
$51,405
$51,405
$51,405
$38,000
$51,405
$51,405
$51,405
$35,000
$50,000
$38,000
$143,063
$144,122
$143,069
$143,729
$144,310
$142,288
$142,218
$141,371
$137,549
$136,938
$136,295
$137,623
$389,000
$389,000
$389,000
$389,000
$389,000
$389,000
$389,000
$414,000
$414,000
$414,000
$414,000
$414,000
Semi
2014 Nov
2014 Dec
2015 Jan
2015 Feb
2015 Mar
2015 Apr
2015 May
2015 June
2015 July
2015 Aug
2015 Sept
2015 Oct
$145,000
$145,000
$145,000
$145,000
$145,000
$145,000
$115,000
$115,000
$115,000
$115,000
$115,000
$75,000
$390,906
$389,010
$396,352
$397,375
$403,528
$401,818
$401,733
$402,479
$399,640
$401,004
$399,262
$401,968
$641,000
$641,000
$641,000
$641,000
$641,000
$641,000
$605,000
$605,000
$624,000
$624,000
$624,000
$615,000
November 2013 October 2015
Total contracted
Working
100
Source: IHS RigBase
No. of rigs
1,000
900
90
800
80
700
70
600
60
500
v
No
50
13
b
Fe
14
ay
14
g
Au
14
v
No
14
b
Fe
15
ay
15
g
Au
15
Number of projected deepwater developments

in Africa entering production 2011-2020
West Africa
North Africa
South & East Africa
100
90
On-stream developments (%)
This month Infield Systems takes a brief look at the

West African deepwater market (> 500 m/1,640 ft) up
to 2020. The number of deepwater fields anticipated
to come onstream over the next five years is expected
to increase in comparison to the historic period
(2011-2015). Increasing deepwater activity within the
region will undoubtedly have a positive impact on the
subsea market, with Infield Systems projecting subsea capex to increase by 59% period on period. Key
deepwater markets over the next five years in West
Africa include Angola, Nigeria, and Ghana. Together
all three are anticipated to account for about 86% of
West African deepwater capex during the period of
analysis, with Angola being the main demand driver.
In Angola, French supermajor Total could see the
largest number of deepwater fields enter production
during the forecast period, mainly related to oil fields
associated with its giant Kaombo project located in
Total supply
Fleet utilization rate %
Source: Rigzone.com
Contracted fleet utilization
80
70
60
50
40
30
20
10
0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Source: Infield Systems Market Modeling & Forecasting Database
block 32. The project is situated in water depths averaging about 1,667 m (5,469 ft). Eni is also
anticipated to be a key driver of deepwater developments in the country, mostly related with fields
linked with its West Hub Development project located in block 15/06. Three of the nine fields associated with the project are already in production.
In Nigeria, Total is expected to see the largest of a number of deepwater developments enter
production over the timeframe. Its ultra-deepwater Egina project in Offshore Mining Lease 130 is a
notable example, with the field expected to start production during 2017.
In Ghana, Tullow Oil is expected to be a key contributor to the countrys deepwater market, largely
associated with the TEN development that consists of the Tweneboa, Enyenra and Ntomme oil fields.
Situated in water depths of about 1,259 m (4,131 ft), production is expected to start in 2016.
George Griffiths, Senior Energy Researcher, Infield Systems
IT TAKES A FULLSTREAM PROVIDER

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GLOBAL E&P
DW downgrades floating production capex

Capex on new floating production systems (FPSs) will likely total
$4.5 billion this year, according to projections from analyst DouglasWestwood (DW). This is 72% down on the figure for 2014, and reflects operators continuing difficulties in the lower oil price era. By
early November, only four FPSs had been ordered for new projects:
Appomattox in the Gulf of Mexico, Sankofa offshore Ghana, South
Pars in the Persian Gulf, and the Brotojoyo field redevelopment off
Indonesia.
As a result, DW has downgraded its projections of FPS capex during 2015-19 from $81 billion to $68 billion, although it does foresee a
recovery in the market next year as various projects go forward that
had been put on hold.
North America
The US Department of the Interior has canceled two Arctic offshore lease sales tentatively scheduled for 2016-17 in the Chukchi
and Beaufort seas. This follows Shells decision to cease exploration
off Alaska after disappointing results from its well on the Burger
prospect in the Chukchi Sea. Additionally, the Bureau of Safety and
Environmental Enforcement turned down requests from Shell and
Statoil to retain their leases in these regions beyond their primary
10-year terms, citing inadequate evidence of forward exploration
and development programs.
Shell has approval from the Canada-Nova Scotia Offshore Petroleum Board for its Shelburne basin offshore drilling. This requires
a response of no more than 12-13 days to contain a subsea blowout.
Shells initial capping stack would come from Stavanger, Norway,
with a second contingency stack to be deployed from Brazil.
Jeremy Beckman London
Jacka Resources expects first oil to flow early next year from the
Aje field in the OML 113 license offshore Nigeria via the FPSO Front
Puffin, recently refurbished in Singapore.
Lekoil is the new operator of the Nigerian OPL 325 lease after
buying the interest previously held by Ashbert Oil and Gas. The
concession is in the offshore Dahomey basin wrench zone that
straddles the western Niger Delta. Lumina Geophysicals recent
review based on existing seismic has identified various large prospects with associated channel complexes and potential in-place oil
totalling 5.7 Bbbl.
Equatorial Guineas Ministry of Mines, Industry and Energy

plans a new bid round next year for all the countrys remaining deep
and ultra-deepwater blocks. However, the Ministry has decided not
to extend the production-sharing contract for the offshore Zafiro
field, operated by ExxonMobil.
Noble Energy expects to install a new gas compression platform
at its offshore Alba field during 1Q 2016. The facility should start
operating later in the year.
Latin America
State-owned Cuban company Cupet could partner with PDVSA
and Sonangol in a new round of exploratory drilling offshore Cuba,
Reuters reported. They are looking at an oil-prospective deepwater
area northwest of the island and could begin their program in late
2016. This would be Cubas first offshore well since 2012 when Repsol pulled out of the country following a dry hole.
Anadarko has been drilling its second deepwater prospect offshore Colombias Pacific coast, following the earlier Kronos gas
discovery to the south. The Calasu-1 well was targeting a large fourway structure.
ExxonMobil is reportedly looking to develop its deepwater Liza

oil discovery offshore Guyana, thought to hold more than 200 MMbbl recoverable, via an FPSO. Development should benefit from recent decreases in FPSO leasing costs and drillship day rates, claims
consultant GlobalData.
Petrobras has completed drilling a fourth exploratory well on the

Libra oil field in the presalt Santos basin offshore Brazil, in the central part of the block. Operations recently started on another well to
the north. The partners have also invited tenders for a second FPSO
to conduct extended well tests for the Libra Pilot Project: this would
have a capacity of 180 b/d of oil and 12 MMcm/d of gas.
West Africa
Foxtrot International has brought online a second platform in
block CI-27 offshore Cote dIvoire as part of $1-billion, four-year program to develop the Marlin oil and gas and Manta gas fields. The
new facility, in 100 m (328 ft) of water, should double the blocks
hydrocarbons treatment capability. The existing platform, in service
since 1999, handles production from the Foxtrot and Mahi fields.
The Tugela license offshore South Africa. (Map courtesy Statoil)
Statoil has farmed into its first exploration concession offshore

South Africa, acquiring a 35% stake in the ER 12/3/154 Tugela
South Exploration Right, operated by ExxonMobil. The 9,054-sq
km (3,496-sq mi) permit is offshore eastern South Africa in water
depths up to 1,800 m (5,905 ft). Commitments include shooting 3D
seismic and geology/geophysics studies.
Galp Energia and Kosmos Energy have been assigned equal 45%
stakes in block 6 in the Sao Tome and Principe Exclusive Economic
Zone. This spans 5,024 sq km (1,940 sq mi) in water depths up to
2,500 m (8,202 ft). The partners have committed to seismic acquisition during the first four-year exploration term.
CGG is helping to promote Gabons 11th licensing round which

features five deepwater blocks and which will open for bids from Feb.
GLOBAL E&P
15 to March 31, 2016. New 3D BroadSeis data

should improve imaging of areas downdip of
and adjacent to various recent deepwater preAptian salt discoveries, CGG said.
Eni has added 250-350 MMboe of gascondensates to its reserves pool in the Marine XII block offshore Congo following its
Nkala Marine discovery. The well was drilled
3 km (1.86 mi) from the Nene Marine field
which began production late last year. On test
it flowed more than 300,000 cmoe/d from a
lower Cretaceous interval. Eni plans appraisal drilling and will study options for a development taking in various finds on the block.
Chevron has produced first oil and gas

from the Lianzi field within a unitized offshore zone between Republic of Congo
and Angola. The field, discovered in 2004
in 3,000 ft (900 m) of water, 65 mi (105 km)
offshore, has been developed via a subsea
production system and a 27-mi (43-km) with
a direct electrical (flowline) heating system,
exporting production to Chevrons BelizeLobito Tomboco compliant tower platform
in Angolas block 14.
Eastern Europe
LOTOS Petrobaltic has delivered first oil
from its B8 field development in the Polish
sector of the Baltic Sea. Production came
initially through an upgraded drilling rig
which earlier had drilled a water injector on
the field.
Lukoil has discovered a potential gas giant in the Romanian sector of the Black Sea.
The semisubmersible Transocean Development Driller II drilled the Lira-1X well on the
Trident block, 170 km (105 mi) offshore in
700 m (2,296 ft) of water. Early data from the
well suggested a productive interval with a
gas-saturated thickness of 46 m (151 ft) reserves could be more than 30 bcm, although
this has to be confirmed by appraisal drilling.
Mediterranean Sea
Middle East
Iran Offshore Oil Co. has increased oil
output from the Salman field in the Persian
Gulf by 3,500 b/d following gas injection.

Two rigs were due to drill further wells to
step up injection, lifting oil volumes by a further 4,000 b/d.
East Africa
Mozambiques government has awarded
four offshore exploration blocks to two
consortia under the countrys fifth bidding
round. ExxonMobil/Rosneft picked up the
Z5-C and Z5-D contract areas in the Zambezi
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BP has agreed to speed up development

of its recent deepwater Atoll discovery in the
North Damietta concession offshore Egypt.
The company estimates reserves at 1.5 tcf
of gas and 31 MMbbl of condensate: under
a first-phase development it plans two wells
tied back to existing infrastructure.
Eni has brought onstream its fasttrack
Nooros gas/condensate development in
the shallow-water Nile Delta region following the discovery this July, via two deviated
wells drilled from an onshore location. Production is sent 25 km (15.5 mi) to the Abu
Madi treatment plant. Eni planned three
more exploration wells in the license area.
Delek Group says the Noble Energy-led

partners in deepwater block 12 offshore Cyprus have re-scheduled further test drilling
until May 2016. This gives them more time
to work on amendments to the development
plan for the Aphrodite gas discovery.
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POSITIONING FOR A SUSTAINABLE FUTURE
JOIN US FOR OUR 20TH ANNIVERSARY CELEBRATIONS

REGISTER TO ATTEND WEST AFRICAS PREMIER OIL & GAS EVENT
The 20th Anniversary edition of Offshore West Africa will return
to Lagos, Nigeria on 26-28 January 2016, delivering the premier
technical forum focused exclusively on West African offshore
exploration and production. The conference will deliver the
latest technological innovations, solutions and lessons learned
from leading industry professionals.
Offshore West Africa Conference and Exhibition remains the
leading source of information on new technology and operating
expertise for this booming deepwater and subsea market.
Gain access to the premier technical oil & gas conference for the
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Access a world-class Exhibition Floor with both International and
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Hear from over 50 leading industry experts on the latest oil & gas
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Attend Multiple Networking events and sessions with over 3,000
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GLOBAL E&P
Delta and a5-B in the Angoche basin. Eni, in partnership with Statoil
and Sasol, secured A5-A in the Angoche area of the Northern Zambezi basin. Although nearly all Mozambiques deepwater finds to
date have been gas, this area could be oil-prone, Statoil said.
Strait, offshore Indonesia. The company has commissioned another FPSO to process gas and liquids from the BD field in the same
region.
Asia/Pacific
The BGP Explorer was mobilizing early last month to start shooting the Haere 2D seismic survey in the Gulf of Papua. According to
Searcher Seismic a partner in the project, along with Papua New
Guineas PNGs Department of Petroleum and Energy the aim is
to build a 17,000-km (10,56-mi) grid of long-offset, high-resolution
broadband seismic. This should assist reinterpretation of the geology in the region and identification of prospective structural and
stratigraphic trends. The area is thought to contain extensive Mesozoic and Palaeozoic sediments.
Saipem has finished installation of the 890-km (553-mi) 42-in. gas

export pipeline for the Ichthys LNG project offshore northern Australia. This is the worlds third longest subsea pipeline, according to
operator INPEX. It will take gas from the Ichthys gas/condensate
field to new processing facilities near Darwin. Saipems laybarges
SEMAC and Castorone began the installation in mid-2014.
Australias National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) is considering BPs environment plan for exploratory drilling offshore South Australia. Nopsema has asked the company to provide a detailed risk assessment of
its proposed program in the Great Australian Bight, with arrangements for dealing with the impact of any oil spill.
The WP4 platform for the Zawtika Phase 1b gas project offshore
Myanmar has departed the Tanggu Fabrication yard in China, according to operator PTTEP. Last month it was due to sail to its offshore location in the Gulf of Martaban. Most of the gas from Zawtika, which started production in March 2014, heads to Thailand.
CNOOC has confirmed its Caofedian field in the Bohai region offshore China is a mid-sized oil discovery. A recent appraisal well was
drilled in the western part of the Shijuto Uplift in 20 m (65.6 ft) of water, flowing 5,750 b/d of light crude during testing the highest rate
achieved to date in Palaeogene clastic rocks, the company claimed.
Lundin Petroleum has discovered a small gas accumulation in the

Mengkuang structure, 75 km (46.6 mi) north of its Bertam field offshore Pensinsular Malaysia. The well encountered 9 m (29.5 ft) of gas
pay in Miocene channel sands. Early next year the company and partner Petronas plan two exploration wells offshore Sabah on the Imbok
and Bambazon prospects in the SB307/308 concessions. Both are
said to be on trend with three producing oil fields operated by Shell.
Husky Energy has started a tendering process for a floating production vessel to develop the MDA and MBH fields in the Madura
Australasia
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OFFSHORE EUROPE
Jeremy Beckman London
Butch to head subsea to Ula

Centrica and its partners have chosen the
subsea route for their Butch oil field development offshore southern Norway. Pending
an investment decision late next year, the
oil will be transported 13 km (8 mi) to BPs
Ula complex for processing, then transported via the Ekofisk center and the Norpipe
trunkline to the Teeside terminal in northeast England. Butchs produced gas will be
injected into the Ula reservoir.
This will be Centricas first operated development project in the Norwegian sector.
To guide it along the way, the company has
awarded Norwegian fabricator Aibel a fiveyear frame agreement covering all phases of
its programs offshore Norway, from detailed
engineering to construction, installation and
completion. Centrica handed Subsea 7 another five-year contract encompassing all
Norwegian concept engineering, front-end
engineering and design (FEED), subsea
umbilicals risers and flowlines (SURF) studies and execution, and life of field operations.
Initially, Subsea 7 will work on the FEED for
the tieback to Ula with Granherne. The aim
of this agreement, Centrica said, is to minimize complexity, cost, and risk.
Assuming the project goes forward, it
could cost up to $854 million to develop
Butchs recoverable reserves of up to 51
MMboe. Centrica plans to use infrastructure installed at Ula to receive hydrocarbons
from DONGs Oselvar field, which has performed below expectations, and is looking to
start production in 2019, building to a peak
of 35,000 boe/d.
Apache proves
more oil in Beryl area
Apache Corp., which has revitalized the
Forties field complex in the UK central
North Sea since acquiring BPs operated interest, is now delivering results from Beryl
in the same region, formerly developed by
ExxonMobil. The company achieved discoveries with its first two exploratory wells in
the Beryl area, and strong results from development drilling.
After its initial K discovery (well 9/18B18) in June, two side tracks followed into adjacent fault blocks which intersected more
than 1,500 ft (457 m) of good-quality oil-bearing sands within four formations and across
three fault blocks. The Corona exploratory
well was the companys first test of a Tertiary injectite prospect: it logged 225 ft (69 m)
of net pay. In July, Apache brought onstream
its Triassic Lewis formation Nevis Central
L4S oil and gas production well, followed in
October by first oil and gas from the Beryl
ACN development well in the Nansen and
Eirikisson formations. In both cases, Shell
is the sole partner. Around 80 km (50 mi)
The jackup Paragon C462 is undergoing inspection and modifications in the Port of Den Helder
on the Dutch North Sea coast. This will include replacement of high-pressure pipework and
maintenance of drilling equipment. The Port authorities hope this job will serve as an offshore
reference, allowing it to expand it services to mooring of offshore structures at its maintenance
quays. (Photo courtesy Port of Den Helder)
south of Forties, another Apache-operated

well encountered oil and gas in Triassic
sands in block 22/29c. The company plans
further appraisal drilling to push recoverable resources from the three finds beyond
70 MMboe. If proven, this will help it extend
the lives of both production complexes beyond 2020.
West of Shetland, Chrysaor has confirmed that its 205/27-3 and 205/27-3z wells
drilled this summer both discovered oil in
the Mustard prospect in late Jurassic Solan
sandstone. Neither was tested, although the
top-hole section has been retained for potential future use.
Statoil starts up shorepowered Troll compressors

Two new compressors have begun operating at Statoils Troll A platform in the
Norwegian North Sea. Alongside the two
existing models, they should increase gas
recovery from the field by 83 bcm and maintain the Troll fields gas export capacity at
120 MMcm/d.
Aibel built the 3,000-ton compressor modules at its yards in Norway, Poland and Thailand, while ABB supplied and installed the 70km (43-mi) subsea cables bringing power to
the new plant from the Norwegian mainland,
using the companys HCDC Light technology. This involves taking alternating current
from Norways national grid, converting it
to direct current and transmitting it through
the cables to Troll A. There it is transformed
back to AC to run the compressors.
Earlier this year, Statoil also started sub-
sea gas compression at its sgard and Gullfaks field centers.
NPD commissions
unmanned platform study
The Norwegian Petroleum Directorate
(NPD) is pressing for more dry-tree unmanned wellhead platforms for new field
developments offshore Norway as an alternative to subsea tiebacks. It has commissioned Ramboll Oil & Gas to study the pros
and cons of these facilities, which NPD believes are comparable in terms of functionality and sound economics to subsea systems,
but more accessible in terms of inspection
and maintenance. Unmanned wellhead platforms range from relatively simple to more
complex structures equipped with process
equipment. Some can be accessed from vessels without the need for helidecks. The report should be completed by year-end.
DONG backs field

life extension study
DONG Energy may apply a new technique
to prolong production from its Siri area fields
in the Danish North Sea. The $4.2-million
collaborative project OPTION (Optimizing
Oil Production by Novel Technology Integration) is working on ways to improve simulation tools for prediction and control of flow
between horizontal wells on the reservoir,
with a focus on enhanced oil recovery. DONG
is contributing a subsurface dataset from the
Siri and Stine fields. Partners in OPTION include LR Senergy, two Danish universities,
and downhole tractor specialist Welltec.

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GULF OF MEXICO
Amidst storm clouds, some silver linings

Even amidst the dark gloom that pervades
the current market downturn, one can still
find a few silver linings. While the number of
active drilling rigs in the Gulf is significantly
down from last year, there have been a few
positive metrics in recent weeks.
A total of 19 drilling permits were issued
for work in October, up from 13 in September, according to Evercore ISIs US Drilling
Permit Monthly update issue in mid-November. Of course, that number is down from 21
a year ago.
But in October, eight permits were issued
for new wells, including three deepwater, four
midwater, and one ultra-deepwater. Five permits were issued for side tracks while six were
issued for bypasses and eight for new wells.
A total of 154 new permits have been issued
year to date, down 42% versus 2014, driven by
sharply lower bypass and new well permits.
Only 58 new well permits have been issued
year-to-date compared to 105 as of this time
last year. While the number of ultra-deepwater and midwater new well permits have
been largely resilient over the past year, only
18 deepwater and 12 shallow-water new well
permits have been issued year to date, down
18% and 76% respectively from a year ago.
Meanwhile, the number of new oil and
gas exploration plans filed in the Gulf of
Mexico held steady month-to-month, with
operators filing five plans to drill a total of
22 wells, versus five plans to drill 14 wells
in September. No development plans were
filed to drill in October.
But even with lower oil prices, Evercore
ISI says it expects development activity to
accelerate slightly in the coming months
and years, and it believes that the Gulf of
Mexico will be the only relative bright spot
for deepwater activity in 2016-2017.
More good news came in late October, when
Chevron announced a successful appraisal well
at its Anchor discovery in the Lower Tertiary
Wilcox Trend. Appraisal drilling has found 694
ft (211 m) of net oil pay.
To date, Chevron has confirmed a hydrocarbon column of at least 1,800 ft (549 m) in
the Lower Tertiary Wilcox reservoirs at
Anchor. Complete appraisal of the field requires further delineation wells and technical studies, Chevron said.
The original Anchor discovery well,
in Green Canyon block 807, approximately 140 mi (225 km) off the coast
of Louisiana in 5,180 ft of water (1,579
m), was drilled to a depth of 33,750 ft
(10,287 m) and it encountered 690 ft
(210 m) of net oil pay.
Chevron assets in the Lower Tertiary
in the Gulf of Mexico. (Courtesy Chevron)
Chevron U.S.A. Inc. is the operator of Anchor, with a 55% working interest. Anchor
co-owners are Cobalt International Energy,
L.P. (20%), Samson Offshore Anchor, LLC
(12.5%), and Venari Resources, LLC (12.5%).
Meanwhile, Shell announced in mid-November that it is one step closer to achieving first oil at its Stones development, with
the launch of the worlds deepest floating
production facility. The Turritella FPSO recently set sail from Singapore, where it was
built at the Keppel yard, and is on its way to
the deepwater Gulf.
Once it reaches the GoM, the facility will
be connected to subsea infrastructure located in the Lower Tertiary play, beneath
9,500 ft (2,896 m) of water, which Shell says
breaks the existing water depth record for
an oil and gas production facility.
Stones is located about 200 mi (320 km)
southwest of New Orleans in the Walker Ridge
area.
The strength of Shell in deepwater is
rooted in our ability to combine innovation
with our strong track record for delivery,
said Wael Sawan, executive vice president
of Deep Water, Shell Upstream Americas.
Achieving first oil at Stones in this new
Gulf of Mexico frontier involves taking a
measured and strategic approach, growing
as we learn more about the reservoir.
The project has nearly 16 million hours of
work safely completed during construction.
Shell said a safety first mindset and a desire
to build something special with no harm to
people is what led to the safety success during the construction of the Turritella.
Shell says it selected this vessel design
to optimize field development and produce
this ultra-deepwater discovery in a safe and
responsible manner. Using this floating vessel allows Shell to address the relative lack
of infrastructure, seabed complexity, and
unique reservoir properties. Aside from being the worlds deepest facility, it also features
an industry-first application of combining
a disconnectable buoy with steel lazy wave
The Turritella FPSO recently set sail from

Singapore, where it was built at the Keppel yard,
and is now on its way to the deepwater Gulf for
Shells Stones project. (Courtesy Shell)
risers steel pipe with in-line buoyancy that

absorbs the vessels motion and boosts riser
performance at extreme depths.
SBM Offshore was contracted to build the
vessel, which is a converted Suezmax FPSO.
It will have a processing facility capacity of
60,000 b/d of oil and 15 MMcf/d of gas treatment and export. No water injection facilities
are specified. SBM said that the Suezmax
hull will be able to store 800,000 bbl of oil.
But of course, in these times, not everything is a silver lining. There are still storm
clouds. This was in evidence in early November, when Marathon Oil Corp. agreed to
sell most of its GoM oil and gas assets.
Marathons GoM portfolio includes its operated producing assets in the greater Ewing Bank area and its non-operated producing interests in the Petronius and Neptune
fields in the Gulf of Mexico. They are being
sold for $205 million.
Marathon Oil operates the Arnold, Lobster, and Oyster fields in Ewing Bank blocks
963, 873, and 917, holding 65% working interest in Ewing Bank; 66.67% WI in Lobster and
Oyster and 62.5% WI in Arnold. It holds a
30% non-operated WI in Neptune, and a 50%
non-operated WI in Petronius/Perseus development in Viosca Knoll blocks 786/830.
Marathon Oil said it will retain its interests in certain other producing assets and
acreage in the GoM, as well as its interests in the Gunflint development and
Shenandoah discovery.
Marathon holds a 10% non-operated
WI in the Shenandoah discovery, located in Walker Ridge block 52, and
an 18% non-operated working interest in Gunflint, located on Mississippi
Canyon blocks 948, 949, 992(N/2) and
993(N/2).
The unnamed buyer will assume all
future abandonment obligations for the
acquired assets. The effective date of
the transaction is Jan. 1, 2015. Closing is
expected before the end of the year.
Sarah Parker Musarra Houston
SUBSEA SYSTEMS
DW examines
subsea industry
Douglas-Westwood (DW) has offered new
insights into the subsea oil and gas market
with two new reports focusing on the global
subsea vessel operations market and the
global ROV operations market, respectively.
DW estimates global subsea vessel operations expenditure will total $97.7 billion
between 2016 and 2020. Mark Adeosun, author of the fifth edition of the World Subsea
Vessel Operations Market Forecast, said:
Low hydrocarbon prices coupled with vessel oversupply will result in low utilization,
impacting expenditure over the forecast period. Despite these near-term concerns, subsea vessel demand is set to recover towards
the end of the forecast period.
As a result of the continued challenging
market conditions, subsea vessel providers
have been taking additional measures to help
strengthen their financial position and stem
oversupply in the market by deferring the
delivery program of newly built vessels. We
believe that it is unlikely that day rates have
bottomed out.
Across the global subsea vessel fleet, he
notes that a 2014-15 decline of at least 30% in
day rates is not unlikely before prices stabilize. However, many tier one contractors
are joining forces to ensure utilization and
maintain track record.
In another recently released analysis, the
seventh edition of the World ROV Operations Market Forecast, the firm reported
that it foresaw lower day rates and utilization
for work-class ROVs. The market for workclass ROVs could total $14.2 billion over the
period to 2019.
Author Antoine Paillat said: This represents a 19% increase on the previous five-year
period, however, near term we see some difficult conditions with weaker day rates and
lower levels of utilization for the work-class
fleet.
We expect the global ROV market to significantly contract in value terms in 2016 (-6.3%) and then
plateau in 2017, due to the current
oil price downturn.
Saipem completes
Ichthys pipelay
Saipem has completed laying the
890-km (553-mi), 42-in. gas export
pipeline serving the Ichthys LNG
project offshore northern Australia.
This is the longest subsea pipeline in the Southern Hemisphere
and the third longest subsea pipeline in the world, according to operator INPEX. The pipeline will take
gas from the offshore Ichthys gas/
condensate field to onshore facilities
at Bladin Point near Darwin for processing.

Louis Bon, managing director Ichthys Project, said: It means we are one step closer to
physically connecting our onshore plant near
Darwin to the Ichthys field where our offshore facilities will be permanently moored
for the 40-year life of the project.
Saipem started the program in mid-2014,
using its lay barges SEMAC and Castorone.
INPEX will conduct other work on the pipeline in preparation for operational start-up.
Subsea 7 to work
with Premier Oil
Subsea 7 has signed a long-term partnership frame agreement with Premier Oil.
The subsea contractor will provide the London-based operator with concept engineering,
front-end engineering and design (FEED),
subsea, umbilicals, risers and flowlines (SURF)
project execution and life of field operations, on
a preferred supplier basis. Additionally, Subsea
7 may participate in Premiers decommissioning programs.
The agreement covers Premiers activities
offshore the UK, Norway, and the Falkland
Islands and runs for five years, with options
for an extension.
Through early engagement on Premiers
projects Subsea 7 aims to develop technical
solutions with realistic cost evaluations. Currently the contractor is supporting the operators Catcher development in the UK central
North Sea. At Catcher, this years subsea installation schedule has been completed with
the pipeline end manifold and tow templates
in place at the Burgman and Varadero accumulations. The 60-km (37-mi) gas export
pipeline was laid during July.
Fabrication of the subsea flowline bundles
and associate towheads, the buoy and the mid
water arches (riser buoyancy aids) is on schedule and these will be installed next summer.
In July, the Ensco 100 started development
drilling, and has to date drilled two wells. Oper-
ations on the first Catcher water injection well

(CTI1) were completed with good reservoir
results. The second water injector, (CCI2), has
reached TD and is in the final phase of completion. Catcher remains on schedule for first oil
in 2017.
Cardona well
tieback complete
At the Cardona field in Mississippi Canyon
block 29, the Cardona #6 well has been tied
into the existing Cardona subsea infrastructure which flows into the companys Pompano platform. Gross production from the
Cardona field is about 15,000 boe/d. Drilling
of the Cardona well #7 with the ENSCO 8503
is expected to begin once completion of the
Amethyst prospect is finished. Drilling is expected to take about two months.
In neighboring MC block 26, ENSCO 8503
is performing completion operations at the
Amethyst discovery, where Stone holds 100%
working interest. The well will be prepared
for an initial production test prior to final flowline and umbilical hook up. First production
is expected by 1Q 2016 to the Pompano platform, located less than 5 mi (8 km) from the
discovery.
GE strengthens
intervention capability
GE Oil & Gas has agreed to acquire subsea intervention specialist Advantec. The acquisition is part of GEs strategy to address issues affecting the growing number of mature
subsea fields, and to strengthen its position
as a provider of subsea production equipment
and solutions for full life-of-field management.
Advantec, formed in 2005, will operate under the existing name and management team
as part of GEs Subsea Services & Offshore
division, continuing to supply products and
services directly to existing and new clients.
Advantec supplies and rents Installation
WorkOver Control Systems for subsea intervention tasks.
Wood Group
wins BP contract
BP has contracted Wood Group

to provide engineering services to
existing subsea infrastructure in
the Gulf of Mexico, UK and Norwegian continental shelves, and
offshore Azerbaijan.
Wood Group Kenny will deliver
program, project and integrity
management and operational support for subsea projects under the
five-year contract, which is effective immediately. The contract will
be delivered from WGKs offices in
Saipems deepwater pipelay vessel Castorone laid more than 700 km
(435 mi) of the Ichthys LNG projects 890-km (553-mi) gas export pipeline. Aberdeen, London, Norway, Hous(Courtesy INPEX)
ton, and Baku.
Three Successful Startups,

One Common Denominator
VESSELS, RIGS, & SURFACE SYSTEMS
FPS capex to grow by 49%, says DW

Douglas-Westwoods quarterly version of the World Floating Production Market Forecast 2015-2019 report states that between 2015
and 2019 $68 billion will be spent on FPS units an increase of 49%
compared to 2010-2014.
Despite capex growth over the forecast, orders this year have
been very weak with only four contract awards so far, the company
stated. This is a result of the low oil price impacting project sanctioning activity, compounded by recent history of high-cost FPS projects
running late and/or over-budget.
In the near term, Douglas-Westwood expects improvement next
year. Operators have worked hard recently to redevelop projects to
make them more cost effective and their efforts should see final
investment decisions made on a number of projects. One example is
Mad Dog Phase 2 in the Gulf of Mexico, which was originally considered uneconomic when oil was priced at $110 a barrel. With the
major redesigns BP has undertaken (coupled with lower prices for
equipment and services in the downturn) it is likely to be sanctioned
next year, despite the current low oil price.
FPSOs will represent by far the largest segment of the market
both in terms of numbers (67 installations) and forecast capex (79%)
during 2015-2019. FPS units will account for the second largest segment of capex (9.3%), with TLPs third (9.2%).
Statoil cancels rig contract

Statoil has canceled its contract with Songa Offshore for the semisubmersible drilling rig Songa Trym, four months before the expiration of the contract.
Statoil previously notified Songa Offshore that the rig would be suspended for a period, and Statoil has tried to find other assignments for
the rig after the suspension period and up to the expiration of contract.
We informed the supplier earlier in October about suspending the
contract after the rig has completed the drilling operation on the
Tavros well on the Visund field. Statoil has hoped for further activity
in the remaining contract period, but we now realize that we must
cancel the contract, as we have not succeeded in finding more assignments. We regret that we need to cancel the contract before it
expires, says Tore Aarreberg, head of rig procurements in Statoil.
Maersk Drilling focuses

on remaining competitive
Claus V. Hemmingsen, CEO of Maersk Drilling and member of
the Executive Board in the Maersk Group said: We deliver a satisfactory third quarter result given the adverse market conditions. We
continue to focus on operational performance and a competitive cost
level, which are key factors in order to secure contracts for our rigs.
In the third quarter, Maersk Drilling signed two new contracts.
Maersk Resilient secured a three-year contract and Mrsk Giant received a contract for 150 days, both for work in the Danish sector of
the North Sea. Furthermore, Maersk Drilling signed four contract
extensions. A 16-month extension for Mrsk Innovator working in
Norway, a five-year extension for Heydar Aliyev working in the Caspian Sea in Azerbaijan, a 250-day extension for Maersk Resolve in the
Danish sector of the North Sea, and the latest a three-year extension
for Maersk Discoverer working offshore Egypt.
At the end of 3Q 2015, Maersk Drillings forward contract coverage was 85% for the rest of 2015, 70% for 2016 and 49% for 2017. The
total revenue backlog by end 3Q 2015 amounted to $5.8 billion.
Pacific Drilling rescinds

construction contract
Pacific Drilling has exercised its right to rescind the construction
contract for ultra-deepwater drillship Pacific Zonda due to the failure by
Samsung Heavy Industries to timely deliver a vessel that substantially
Robin Dupre Houston
meets the criteria required for completion of the vessel in accordance

with the construction contract and its specifications. Pacific Drilling
made advance payments totaling approximately $181.1 million under
the contract, and will seek a refund of the installment payments.
Guardian 2 will sail for Port

Harcourt, Nigeria in December.
(Photo courtesy Damen Shipyards)
Homeland takes delivery

of second Damen vessel
Homeland Integrated Offshore Services Ltd. will take delivery of
its second Damen Fast Crew Supplier 3307 Patrol just 18 months
after a sister vessel entered service in the Nigerian offshore market.
HIOSL serves the Nigerian oil and gas industry with a wide range
of maritime, security and logistics services. The Lagos-headquartered company has ambitious plans to become the leading marine
logistics provider in the Nigerian offshore industry.
Currently undergoing sea trials in Singapore, Guardian 2 is expected to be directly employed when she arrives in Port Harcourt, Nigeria, in December. HIOSL will then have five patrol vessels in its fleet.
Guardian 1 has largely been carrying out security patrol services for the IOCs, working alongside the Nigerian Navy, as well as
transferring crew and supplies. Guardian 1 is definitely the best
vessel in the field in terms of speed and intervention abilities. Furthermore, with her unique Damen Sea Axe hull, she has fantastic
seakeeping ability and still provides efficient fuel economy, even in
rough terrain.
Transocean delays newbuild deliveries

Transocean has postponed the delivery of ultra-deepwater newbuilds Deepwater Pontus and Deepwater Poseidon for one year each.
The Deepwater Pontus was expected to start work with Shell in the
Gulf of Mexico in 1Q 2017, while the Deepwater Poseidon was expected to start in the Gulf in 2Q 2017.
Though the counterparties will be compensated for the delay,
the 10-year duration and $519,000 day rates of the original contracts
remain. The ultra-deepwater newbuild Deepwater Thalassa is currently mobilizing to the Gulf of Mexico to start with Shell in 1Q 2016
at $519,000/d, while the Deepwater Proteus is scheduled for delivery
in December 2015 with operations commencing in 2Q 2016.
Golar issues Cameroon FLNG update

Golar LNG Ltd. says its Cameroon FLNG project has received
approval and signature of the binding tolling term sheet thereby
confirming the commercial terms for the FLNG vessel Golar Hilli.
Cameroons state owned oil and gas company Societe Nationale des
Hydrocarbures, Perenco Cameroon, and Golar are all parties to the executed agreement. Operations are scheduled to begin in 2Q 2017.
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2015 National Oilwell Varco | All Rights Reserved
DRILLING & PRODUCTION
Robin Dupre Houston
Weatherford, Maersk Training partner

to enhance critical well preparation
Weatherford Secure Drilling Services and Maersk Training have
entered into a strategic partnership to enhance scenario-based
training and competency for critical wells. The training will provide
Weatherford, operator and rig-crew personnel with improved preparation and aptitude to help prevent well-control events and nonproductive time when operating in extreme drilling environments.
Weatherford recently introduced the OneSync software platform,
which enhances planning, simulation and control during managed
pressure drilling (MPD), early kick detection, and other drilling and
completions scenarios. The software platform builds on the fieldproven Microflux control system.
Maersk Training will fully integrate the MPD simulator application of the OneSync platform into its drilling simulators to enable
comprehensive MPD and well-control planning and scenario-based
training. The Maersk Training drilling simulators will be available in
locations including Houston, Rio de Janeiro, Dubai, and Aberdeen.
The advanced simulations will enable entire rig crews including
the drilling contractor, operator, service provider and third parties
to receive hands-on rig and well-specific training.
Many of todays easy-to-access reserves have been depleted and
complex wells have become the norm, particularly in deepwater applications. As a result, advanced drilling technologies like MPD are
being deployed more frequently, said Iain Cook, vice president of
Weatherford Secure Drilling Services. Improved competencies on
how to manage well-control scenarios through the application of these
technologies, as well as seamless communication across multi-functional teams, are imperative to a safe and productive future.
As a part of this agreement, Maersk Training will serve as Weatherfords preferred provider of well-control training for all MPD personnel worldwide.
We see the partnership with Weatherford as a game changer in the
industry, said Claus Bihl, CEO of Maersk Training. We are combining strong technical knowledge with high-quality training to increase
competence development for crews working with MPD technology.
This will improve safety and operational performance on rigs.
Halliburton achieves first installation

of SmartPlex downhole control system
Halliburtons Completion Tools business line has achieved the first
installation of the SmartPlex downhole control system in a six-zone multilateral well. The installation was a joint effort across functional teams
within the intelligent completions group, and was the first electro-hydraulic system installed by Halliburton in the Middle East. The installation was completed with zero nonproductive time and no HSE issues.
The SmartPlex downhole control system enables remote actuation of
downhole control devices using electro-hydraulic control lines from
the surface. The multi-drop system provides simple and reliable zonal
control of up to 12 interval control valves in a single wellbore, using a
minimum number of control lines.
Report reveals need for collaboration

A new report reveals that while the current environment is creating opportunities for innovation, almost half of oil and gas executives admit they have fallen short of their innovation goals. The number of respondents saying they have fallen short has almost doubled
as the oil price has gone down, with only 26% saying they had fallen
short in spring 2014.
These findings form part of the Technology Radar 2015 report
recently launched by Lloyds Register Energy.
The oil and gas industry is undergoing a period of significant
uncertainty, said John Wishart, Group Energy Director of Lloyds
Register. The oil price slowdown is clearly impacting investment
An Atwood Oceanics Inc. subsidiary has agreed to an extension and

rate adjustment to its existing contract with Noble Energy Inc. for the
Atwood Advantage ultra-deepwater drilling rig. The agreement is to
extend the contract for the purposes of a four-well P&A program in the
Gulf of Mexico. The program has an estimated duration of 120 days during the contract term and is anticipated to occur in 2016. This extension
adjusts the operating day rate to about $240,000 only during the four
P&A wells, and makes the new contract expiry date August 2017.
(Courtesy Atwood Oceanics Inc.)
in innovation initiatives. However, our report finds that contrary to

perceived wisdom, innovation has a crucial role to play in the current environment, where it creates operational efficiencies and is
cost-effective.
To innovate properly and achieve business goals companies
must address a number of common challenges, including collaborating more openly, using data more effectively and changing traditional mind-sets, continued Wishart. Encouragingly, our findings
show that overall the industry understands the need for innovation
and has begun reaching out to other sectors to gain technological
insight.
Halliburton, Baker Hughes update

Halliburton and Baker Hughes announced the second round of
divestitures in connection with the pending transaction. In addition
to the previously announced divestitures of Sperry and Drill Bits,
Halliburton will also divest its expendable liner hanger business
(part of its Completion & Production Division), Baker Hughes core
completion business (which includes packers, flow control tools,
subsurface safety systems, intelligent well systems, permanent
monitoring, sand control tools and sand control screens), Baker
Hughes GoM sand control business (including two stimulation
vessels), and Baker Hughes offshore cementing businesses in Australia, Brazil, the GoM, Norway, and the UK. The combined 2013
revenue associated with all of the announced divestitures was $5.2
billion, up from $3.5 billion for Sperry and Drill Bits, which implies
the assets announced had revenues of $1.7 billion. Halliburton also
announced that it received bids from multiple interested parties for
each business (implying multiple buyers each of Sperry, Drill Bits
and the combined businesses). This marks another positive step
in the process and should alleviate some concerns that arose over
the past few weeks around a single-buyer theory and the rumored
buyers. Evercore expects the Baker Hughes/Halliburton spread to
narrow and believes the second round of divestitures will be easier
to accomplish as these are more asset sales than sales of large,
global businesses.
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GEOSCIENCES
Exhibitors showcase new

technologies at SEG 2015
The exhibit floor at the 2015 Society for Exploration Geophysicists Annual Meeting, held this year in New Orleans, was brimming
with new technologies and products.
While companies slash budgets and continue to search for more
cost-effective methods of doing business, the overall focus on the
floor was how seismic companies could offer high-quality imaging
at a lower cost. A quick scan of the exhibition floor was testament
to the fact that necessity does, in fact, beget invention. Highlighted
here are just a handful of products and technologies introduced or
discussed at SEG 2015.
Flying Node concept

Thalassa Holdings Autonomous Robotics Ltd. (ARL) debuted its
Flying Node concept, which the company says operates as a swarm
of AUVs descending upon the seabed to record data. The Flying Node
concept is designed to combat the cost of obtaining ocean bottom
seismic data in extreme water depths or
in complicated geological structures.
With a maximum operating depth
of 3,000 m (9,842 ft), the ARL Flying
Nodes are positioned on the seabed
using an ultra-short baseline acoustic navigation system mounted on an
unmanned surface vessel. According
The autonomous Flying Node
to company representatives, the accuuses acoustic placement
racy of the nodes positioning is comto navigate to the seabed.
parable to ROV-deployed nodes. Each
(Image courtesy ARL)
node, which is said to have a flexible
receiver geometry and an integrated acoustic transponder, can record
on the seabed for up to 60 days, and is capable of both 3D and 4D seismic. Multiple receiver rows can be deployed at once, and ARL said
that it foresaw the deployment of 3,500 Flying Nodes from a vessel.
Portable Modular Source System

Fellow Thalassa Holdings company WGP highlighted its Portable
Modular Source System and Dual Portable Modular Source Systems (PMSS / D-PMSS) as part of its permanent reservoir monitoring services. Statoil uses the system at its Snorre and Grane fields,
both located in the Norwegian North Sea. BP is also a customer,
utilizing WGPs life of field seismic products in both its Valhalla field
in the North Sea, and its Chirag Azeri Reservoir Seismic Project
in the Caspian Sea. The PMSS is a modular, containerized system
based on ISO-sized containers, designed to be both land and sea
transportable. The system can be quickly, temporarily installed on a
vessel of opportunity, even one already assigned to a field for a different application, which could help contain costs. WGP announced
this summer that the permanent reservoir monitoring operations at
Snorre and Grane were completed ahead of schedule. More than
6,000 km (3,728 mi) of data was shot over the two fields.
Reservoir benchmarking
Cray Inc. announced it had achieved a new performance benchmark for reservoir simulations using Stone Ridge Technologys
ECHELON reservoir simulation software and the Cray CS-Storm
cluster supercomputer. ECHELON models oil, water, and gas flows
in a reservoir, and is specifically designed for leveraging graphics
processing units (GPUs) computer architectures. It also has scalability across multiple GPUs. With ECHELON running on Crays
CS-Storm system, it can deliver speed that can be used by reservoir engineers to study many more realizations of their models and
run large, high-resolution cases, said Vincent Natoli, founder/CEO,
Stone Ridge Technology.
Magseis docking robot operates onboard the research/survey vessel

Artemis Athene.(Image courtesy Magseis)
MASS
Present in Magseis booth to demonstrate its Marine Autonomous
Seismic System (MASS) was a smaller version of the Lysaker, Norway-based companys automated industrial robot technology. Magseis MASS sees small, autonomous sensors inserted into steel cables.
As part of that process, the robotic arm handles the sensor capsules,
data downloading, and battery management aspects of the system.
Following the show, in mid-November, Magseis announced an
agreement with Shell for the further joint development of a system
to deploy the MASS technology in ultra-deepwater. The agreement
regulates the further work leading up toa full-scale pilot test which is
planned forcompletion in early 1Q 2016 and through to the commercialdeployment of the system which is planned for early2017.The
project will be jointly financed by Shelland Magseis with a significant contribution fromInnovation Norway.
New geotech collaboration

Halliburtons Landmark software provider and CGG agreed to
a geosciences technology collaboration. The collaboration aims to
allow seamless access to interpretation and reservoir characterization technologies and geoscience data from both companies using
Landmarks DecisionSpace. A series of workflows enabled by the
platform will be delivered through connectivity of geoscience applications and data, the companies said. Additionally, Landmark and
CGG will engage with customers to develop a new class of E&P
workflows to meet existing and emerging industry challenges.
FlexNode
Seabed Geosolutions introduced FlexNode, a scalable node deployment solution. An express seabed seismic service, FlexNode has
completed two successful projects for different operators, with one
located offshore West Africa and the other in the North Sea.
Through its transportable, modular solution, nodes can be deployed using existing support vessels already on site, optimizing vessel usage. The FlexNode service solution is designed for deepwater
projects up to 3,000 m (9,842 ft) under tight time constraints, and
projects where targets are obstructed by platforms and seafloor infrastructure. While the number of nodes to be deployed can be flexible,
Seabed Geosolutions said that between 200-500 nodes are typically
needed, as FlexNode offers sparse node geometry with a high-density shot point coverage.
Currently, customers could employ Seabed Geosolutions existing
Trilobit in using FlexNode, a four-component broadband seabed node
which already offered prolonged recording times and flexibility in deployment methods. However, the company representative explained,
by 2H 2016, IT is planning for its new fully-autonomous Manta node to
be available. This model could also be used in the FlexNode service.
TOP 5 PROJECTS
Chevron advances deepwater frontier

with Jack/St. Malo project
Deep draft semisubmersible to serve as hub for the 43 subsea wells
Bruce Beaubouef
Managing Editor
ith first oil produced late last year,

Chevron has advanced the boundaries of offshore exploration and production with its Jack/St. Malo project in the deepwater Gulf of Mexico.
The Jack and St. Malo fields are among the
largest in the Gulf of Mexico, and are part of
the Gulf of Mexicos Lower Tertiary trend, the
play that has proved both tempting and vexing
for many developers.
The fields were co-developed with subsea
completions flowing back to a single host, semisubmersible floating production unit (FPU)
located between the fields. The FPU is the largest of its kind in the GoM and has a production
capacity of 170,000 b/d of oil and 42 MMcf/d
of gas, with the potential for future expansion.
With a planned production life of more
than 30 years, current technologies are anticipated to recover in excess of 500 MMboe.
The successful completion of the project
was the result of the collaboration of hundreds
of suppliers and contractors and thousands of
workers across nine countries over a ten-year
period. With the project now onstream, Chevron says that Jack/St. Malo is a key part of its
upstream projects program, and was delivered
on time and on budget.
Successive development phases, which
could employ enhanced recovery technologies, may substantially increase recovery at
the fields.
Project infrastructure
The Jack and St. Malo fields are about 25

mi (40 km) apart, and are around 280 mi (450
km) south of New Orleans in about 7,000 ft
(2,100 m) of water, at its greatest depth. The
project infrastructure covers an area nearly
as wide as the state of Rhode Island.
The Jack field lies in Walker Ridge blocks 758
and 759 at a water depth of 7,000 ft (2,134 m).
Chevron owns a 50% interest in the field while
Maersk and Statoil hold 25% each.
The St. Malo field lies in Walker Ridge block
678 at a water depth of 2,100 ft (640 m). Chevron
is the operator with a 51% interest. Other part28 Offshore December 2015 www.offshore-mag.com
The Jack/St. Malo semisubmersible floating production unit began its journey from the fabrication
yard in Ingleside, Texas, to its mooring location in the Walker Ridge area in November 2013 (Images
courtesy Chevron Corp.)
ners include Petrobras (25%), Statoil (21.50%),

ExxonMobil (1.25%), and Eni (1.25%).
The St. Malo field was discovered in October 2003 by a discovery well drilled by Transoceans Discoverer Spirit drillship. The well
struck a net oil pay of 1,400 ft. The Jack field
was discovered in July 2004 with the exploration well Jack-1. The well was drilled by Transoceans Discoverer Deep Seas drillship to a
depth of 29,000 ft. It struck 350 ft of net oil pay.
The project was approved by the partners
in October 2010. An investment of $7.5 billion was made in the initial development
phase, which called for three subsea centers
tied back to a production hub. Production is
expected to be ramped up to 94,000 b/d of
oil and 21 MMcf/d of gas in coming years.
The hull of the deep draft semisubmersible production platform was constructed at
the Samsung Heavy Industries yard in Geoje, South Korea, and was transported by the
Dockwise Vanguard from Korea to Corpus
Christi, Texas, from February to April 2013.
The topsides facilities were fabricated at the
Kiewit yard in Ingleside, Texas, and mated
to the hull in May.
The assembled FPU was then towed out to
site by the Crowley ocean-class tugs Ocean

Wind and Ocean Sun, and the contracted
tugboat Harvey War Horse II. These vessels
moored the FPU and made it storm safe.
The Jack/St. Malo FPU is now accessing
reservoirs beginning at 19,500 ft (5,944 m)
beneath the seafloorrepresenting a total
depth of 26,500 ft (8,077 m), or roughly the
same height as the last base camp a climber
reaches before summiting Mount Everest.
Technology advances
To locate and produce resources from

these depths, Chevron took on some extreme conditions with technological breakthroughs that it says are game-changers for
the industry. The project has delivered a
number of new technology applications, including the industrys largest seafloor boosting system and Chevrons first application
of deepwater ocean bottom node seismic
technology in the Gulf of Mexico, providing
images of subsurface layers nearly 30,000 ft
below the ocean floor.
Chevron deployed the ocean bottom nodes
as part of its seismic survey program. Remotely
operated vehicles positioned 100-pound receiv-
Strength
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TOP 5 PROJECTS
ers, or nodes, in a grid directly on the seafloor,

which enabled survey crews to collect highquality seismic data without the distortion of
the water column.
At each of the Jack/St. Malo fields, 1,100
nodes were placed on the seafloor. The backto-back surveys lasted 10 months, involving
100 people and two ships. The surveys also
broke several records: number of nodes, the
longest acquisition schedule, the deepest
water and the largest source area.
At low-permeability reservoirs like Jack
and St. Malo, engineers often pump proppant into the reservoir to allow oil to flow
more easily into the well. This process,
called frac-packing, can be time- and cost-intensive because of the size of the producing
rock formations. At Jack and St. Malo, some
of these rocks are more than 1,000 ft thick
(305 m), requiring large volumes of proppant to be pumped at high pressure.
Typically, it can take five days to frac-pack
each zone, but Chevron helped develop a
new single-trip, multi-zone technology, which
allowed it to stimulate multiple zones of the
reservoir in a single run of the equipment
downhole, cutting the time to 18 to 20 hours
per zone. With a cost of about $1.2 million/
day of rig time, improving completion time
resulted in major cost savings.
At one well in the Jack field, Chevron
stimulated a record-breaking six zones and
pumped more than 2 million pounds of proppant in just a few days instead of the normal
30. Chevron also successfully tested the
technology in an open-hole well (a well that
had not been cased and sealed) for the first
time in the industry.
Although the Jack and St. Malo reservoirs
are currently high pressure, the pressure is expected to decrease over time due to production.
A powerful pumping system was installed on
the ocean floor to help boost the oil to the FPU.
Jack/St. Malos three subsea pumps are
built to withstand 13,000 lbs/psi, are installed in 7,000 ft (2,134 m) of water; and
consume three megawatts of power a new
industry record, representing a significant
improvement over previous models. Prior
to this project, industry maximums were at
5,000 psi pressure, 5,500 ft (1,524 m) water
depth, and required 2.7 megawatts of power
for pumps of similar configuration.
With regard to the FPU, the Jack/St.
Malo platform is one the largest semisubmersible production platforms in the world,
and is the first semisubmersible floating
production unit designed and built as a lowmotion unit for the Gulf of Mexico.
Crude oil from the FPU will be moved
through the Jack/St. Malo oil export pipeline,
which runs approximately 137 mi from the
production hub in Walker Ridge block 718 to
the Shell Boxer A fixed platform at Green Can30 Offshore December 2015 www.offshore-mag.com
The Jack/St. Malo fields are about 25 mi

(40 km) apart in about 7,000 ft (2,100 m) of
water, and were co-developed with subsea
completions flowing back to a single host,
semisubmersible floating production unit
located between the fields.
yon block 19. The pipeline is the first large-diameter, ultra-deepwater pipeline in the Walker
Ridge area of the Lower Tertiary trend. The
combination of extreme water depths, large
diameter, high-pressure design, and pipeline
structures have set new milestones for the
Gulf of Mexico.
Other key vendors

Some of the other key vendors, suppliers,
and contractors on the Jack/St. Malo project
are detailed below.
Wood Group Mustang performed front-end
engineering design (FEED) and then detailed
engineering design for the topsides facilities.
KBR performed the detailed design engineering for the FPUs hull, deck box, accommodations, appurtenances, equipment foundations,
mooring system and anchor suction piles.
Wood Group also provided the planning, managing and field execution of the
commissioning of the Jack/St. Malo FPU.
Work was performed by DSI, Wood Group
PSNs commissioning services business.
OneSubsea, through one of its predecessor
companies, was awarded a subsea production systems contract in 2010. The scope
included the delivery of 12 15,000-psi subsea wellhead trees, production controls,
four manifolds and associated connection
systems, engineering and project management. In 2011, through another of its predecessor companies, OneSubsea was awarded
the subsea processing systems contract for
three pump stations, three subsea pump
control modules, and associated control and
instrumentation equipment.
Technip received a contract for the engineering, fabrication, and subsea installation
of more than 53 mi of 1.75-in. outer diameter
flowlines, steel catenary risers, pipeline end
terminations, manifolds, pump stations and
tie-in skids.
McDermott International Inc. received

a contract to transport and install jumpers,
subsea pump stations, and 30 mi (48.3 km)
of umbilicals and associated flying leads.
McDermott also performed the subsea
landing of some of the industrys largest and
most complex umbilical end terminations.
InterMoor designed and fabricated 11
suction piles for the Jack/St. Malo development. The 11 suction piles are 18 ft (5 m) in
diameter, ranging from 55 to 75 ft (17 to 23
m) in length and weighing up to 115 tons.
Bardex supplied the linear chain jacks for
the 16-line mooring system that secures the
Jack/St. Malo FPU on location.
BMT Scientific Marine Services provided
an environmental and facilities monitoring
system that was installed on the FPU. The
system is designed to monitor, log, and display in real time local environmental and facility motions.
MyCelx designed and delivered a produced
water treatment system that removes oil and
water soluble organics to below 10 ppm.
Saipem installed the 137-mi, 24-in. Jack/
St. Malo crude oil export pipeline using its
pipelay vessel Castorone; it was the first installation project for this newbuild vessel.
JP Kenny performed the detail design work
for the pipeline, which addressed routing of
the pipeline to minimize spans; design for preand post-installation vortex-induced vibration
and stress spans; collapse testing of the pipe;
and installation of in-line valves and sleds.
Future plans
Jack/St. Malo will act as a hub for 43 subsea wells, including pumps and other equipment on the seafloor. Future developments
for the Jack/St. Malo fields will likely include
an option for water injection; production expansion; increased power generation; and
multi-phase seafloor pumps.
Gas tight and tested

XL Systems now offers two connections for gas tight surface casing applications
XLW-GT and Viper. Both products have been physically tested in multiple sizes
to 95% of actual X80 pipe body internal pressure ratings in compliance with ISO/
FDIS 13679:2011 CAL I-E requirements.
The XLW-GT connection combines an internal metal seal with wedge thread
technology and does not require an anti-rotation feature.
The Viper connection features superior fatigue performance, an internal O-ring
seal, and a fast make-up design with ViperLock anti-rotation.
Learn more at nov.com/gastight
2015 National Oilwell Varco | All Rights Reserved
TOP 5 PROJECTS
Spar platform proves successful

for Anadarko once again
Innovative design
for Lucius helps
mitigate potential risks
Sarah Parker Musarra
Editor
ollowing the September 2014 decommissioning of its one-ofa-kind cell spar, Red Hawk, in the Gulf of Mexico, Anadarko
Petroleum Corp. wasted no time before it made yet another
mark in the Gulf. Moored in more than 7,100 ft (2,164 m) of
water, the Lucius spar is Anadarkos biggest and most technically advanced to date, producing from multiple resource-rich fields.
Located about 235 mi (378 km) off Port Fourchon, Louisiana and
spanning Keathley Canyon blocks 874, 875, 918 and 919, Lucius was
discovered in December 2009. An appraisal well, drilled 3,200 ft (975
m) from the discovery well that encountered 200 ft (61 m) net of oil
pay, was completed about 13 months later.
Throughout Lucius lifecycle, the Anadarko-led consortium made
several decisions that resulted in sizeable savings in both time and
money. Also notable are the wild fluctuations in oil prices that have
lasted through Lucius discovery, to first oil, and even present-day.
According to historical data from the US Energy Information Administration, at the time of Lucius 2009 discovery, WTI had fallen to
an average of $61.95/bbl from $99.67 in 2008 due to the US financial
crisis occurring at that time. Prices began to climb between 2009
and 2013 before diving again just before first oil was produced in
2015. In December 2014, WTI fell to $59.29 from a high of $105.79
months earlier, in June. By the time Lucius produced first oil, the
industry experienced panic as WTI settled at $47.22.
To manage this price cycle and positively affect project economics, Anadarko signed an agreement in July 2012 with Inpex to enter into a joint-venture capital carry arrangement. Under its terms,
Anadarko would be carried for the companys share of the estimated
Part of Anadarkos design one,

build two philosophy, the Lucius spar is the companys biggest to date. (Images courtesy
Anadarko Petroleum Corp.)
capital cost until first production: $556 million. This agreement allowed the company to mitigate the risks associated with a long-term
megaproject, and limit its exposure to capital burden. Anadarko first
successfully carried out the capital-carry model onshore, and the
Lucius project marked the first time that the operator applied the
concept offshore.
Project development
In January 2010, at the time of appraisal drilling, Anadarko said
that the up-dip side track was drilled about 20,600 ft (6,278 m) TD
in water depths reaching about 7,100 ft (2,164 m). It encountered
almost 600 ft net (183 m) of high-quality oil pay with additional
gas-condensate pay in thick subsalt Pliocene and Miocene sands,
confirming to the Houston-based company that it now had another
major oil and gas discovery in its books. Resources for the development were estimated to be in excess of 300 MMboe.
The project was sanctioned in December 2011. At that time, it
was announced that Technip was constructing the Lucius truss spar
at its Pori, Finland facility, marking the seventh spar constructed
by Technip for Anadarko. The 605 ft (184 m) high spar has a hull
weighing 23,000 tons (20,865 metric tons) and a topsides weighing
14,000 tons, with a nameplate capacity of more than 80,000 b/d and
450 MMcf/d (127 MMcm/d) of natural gas. It set sail from Pori for
the Gulf of Mexico in April 2013.
Matt Lamey, Anadarkos facilities project manager for Lucius,
said that Technip and Anadarkos combined experience in the design and construction of spars minimized the challenges normally
TOP 5 PROJECTS
associated with scaling a design up to Lucius proportions.

We have a really good relationship with Technip, Lamey said.
Our history with them, and the people that we have here [in
Anadarko] that are experienced in building spars made it a very
smooth process to build this larger spar.
The spars size also allowed for a larger scope of production.
The topsides are about 14,000 tons (12,700 metric tons), [whereas] our other topsides were around 10,000 tons (9,071 metric tons),
Lamey explained. That gives you an idea of the scale up that we
have done there. The other thing is, the productive capacity is a bit
above the prior spars that weve done. The volumes themselves are
pretty significant and that required a bit bigger spar.
In keeping with the speedy development cycle maintained since
discovery, Anadarko achieved first oil with Lucius on Jan. 16, 2015,
about three years after sanction. Lamey said that the quick cycle
from discovery to appraisal was astounding, especially given the
size and remoteness of the project.
It is probably the fastest Ive ever seen anywhere, Lamey said.
The full cycle time from discovery to our first production was five
years. I think for a mega-project, where youre talking several billion
dollars, thats pretty astounding, when most other projects of this
size I see go for probably about twice that length of time.
Lucius has been operating steadily since first oil.
The project is going exceptionally well; we are producing right
at capacity of the facility, said Anadarkos General Manager of the
Lucius project Danny Hart. We have had a run time of about 98%
since we brought the project on. We were able to ramp the wells up
initially and have been able to sustain right at capacity of the spar
since that initial ramp up.
Production hub
One reason for the steady production are the developments reservoirs, which Hart characterized as extremely prolific. The Lucius
spar pulls from six wells, totaling approximately 80,000 b/d of oil.
Hart said that the reservoirs were some of the highest productivity
indexes seen in the Gulf of Mexico.
The Lucius spar also produces for other neighboring fields.
Shortly after sanction, Anadarko finalized a unitization agreement
with ExxonMobil. Gas from Hadrian South, located in Keathley Canyon blocks 963 and 964, would be processed through the Lucius
spar, which reduced the need for new infrastructure. On March 30,
2015, Hadrian South achieved first production, with daily gross volumes expected to reach around 300 MMcf/d (850 MMcm/d) of gas
and 3,000 bbl of liquids from two wells. Hart said that Hadrian South
contributes most of the current natural gas production of about 400
MMcf/d. Also in March, Anadarko signed a production-handling
agreement with Chevron for its Buckskin/Moccasin discoveries,
located in Keathley Canyon blocks 785, 872, and 736, through the
Lucius spar as well.
Obviously, this is a very remote locationWe tied up to South
Hadrian right off the bat to help to offset some of the costs and to
put a hub out there, Hart said. Weve already signed other agreements to tie other fields back through the spar. That hub is providing another income, and the source is allowed to produce significant
resources through the spar out in this remote area.
In another example of how Anadarko worked to save money
against the bottom line is evident in Lucius infrastructure. A gas
line that had served the now-decommissioned Red Hawk cell spar
was repurposed into Lucius export pipeline. Lamey said that the
decision was made prior to sanction while Anadarko was negotiating
the oil and gas gathering agreements.
That is a unique use that we have not seen much in the Gulf of
Mexico, Lamey said, of the decision to re-utilize existing infrastructure by converting the gas line into oil service.
The Lucius truss spar measures 605 ft (184 m) high, with the hull weighing
23,000 tons (20,865 metric tons). It has a nameplate capacity of more than
80,000 bo/d and 450 MMcf/d (127 MMcm/d) of natural gas.
Constructing the long export lines necessary for remote, deepwater projects can greatly impact a projects budget. Anadarko and the
Lucius consortium chose Enterprise to handle the oil export line,
and Lamey explained that the economics of the project were greatly
improved by re-utilizing the line.
Design choice
Both Lamey and Hart expressed that a spar was a natural design
choice when installing in waters as deep as the waters at Lucius
(7,000 ft). By design, Lamey said, the spar is more adaptable and
therefore needed less bespoke design work.
It works very well in a variety of metocean conditions, Lamey
said. Its got a very low center of gravity and provides very good
motion, even in elevated conditions of wind, wave, and current. It
provides low impact to the steel risers It gives you a good design
life, with low impact, fatigue, and stress on all those elements that
are connected to the spar that make it work.
A tension leg platform was immediately ruled out, due to the water depth. That left Anadarko and the Lucius consortium with the
choice of a spar or a semisubmersible. One issue that factored into
the decision was the amount of mooring points needed for that area
of the Gulf of Mexico.
One of the things that made this spar so useful here is that you
have a three-point mooring system, Hart said. The bathymetry of
the ocean floor was very challenging. You have a three-point mooring system as opposed to semis, which would be a four-point mooring system. Finding three mooring points was [already] somewhat
of a challenge, so the spar fit really well in this environment.
Lamey said it was a hallmark of Anadarkos philosophy that the
company would avoid re-inventing the wheel when it was unnecessary, and that is evident in the companys design one, build two
philosophy. The truss spar for the Heidelberg development, located
in Green Canyon 859 and slated to enter production in 2Q 2016, will
be based on the Lucius spar.
Anadarko operates the Lucius spar with a 23.82% interest. Its
partners are Freeport-McMoRan (25.123%); ExxonMobil (23.295%);
Petrobras (11.500%); Inpex (7.753%); and Eni (8.500%). Eni (12.5%),
ExxonMobil (9.375%) and Freeport-McMoran (12.5%) also partner
with operator Anadarko (31.5%) on Heidelberg, along with Statoil
(12%), Marubeni (12.74%), and Cobalt (9.375%).
www.offshore-mag.com December 2015 Offshore 33
TOP 5 PROJECTS
Delta House FPS is a first of its kind

Robin Dupre
Senior Technology Editor
eralded as one of the most efficient production systems in

the Gulf of Mexico, the Delta House development taps three
Mississippi Canyon fields where the average water depth is
around 4,500 ft (1,372 m) and reservoirs range from 12,000
to 18,500 ft (3,658 to 5,486 m). From fasttrack development
to inking a significant deal to fund the host platform to being privately-owned, Delta Houses development is a game changer in the
deepwater sector of the oil and gas industry.
When LLOG initially planned the development of the area, it knew that
the Delta House FPS would serve as a host facility for future fields, with
at least four fields tying into the platform. Designed for 25 years of continuous production, the facility initially called for seven wells to connect
followed by seven additional wells as exploration activity continued.
It is considered a water independent, semisubmersible floating
production system (FPS) with a production handling capacity of
100,000 b/d of oil, 240 MMcf/d of gas, and 40,000 b/d of water.
LLOG Exploration, both operator and partial owner of the facility,
commenced production in the second quarter of this year.
Fasttrack development
LLOG had less than 36 months to drill wells in the Mississippi Canyon lease before it expired. The partnership was granted a Suspensions
of Operation, which granted the consortium a one-time presidential
lease Suspension of Operations due to the drilling moratorium that
was enacted because of the Macondo incident. This period gave the
partners time to study the leases and then commence drilling.
We were very transparent in our presentations to the BSEE, and
since then, weve done everything we said we were going to do,
said Mike Altobelli, LLOG vice president, land, in a Delta House supplement, A New Hub in Mississippi Canyon. It was a pretty dynamic
time. Ive never been involved in a project with that much going on
in such a condensed period of time. The lease expiration dates were
staring us in the face. We had to get out there and drill wells.
Once drilling started, two discoveries were made, allowing for development of the project to begin. With financing secured through an investment group and due to the financing terms in the contract, it paved
the way for the project to be sanctioned sooner rather than later, cutting
the development time of the entire project by around two years.
The original plan for development called for at least three deepwater wells, plus the infrastructure to connect them to the FPS. That
plan grew to include seven wells during the startup period for a total
investment of $1.2 billion. Oil from Delta House flows through some
35 mi (56 km) of newly-constructed 12-in. pipe that connects to the
Shell-operated Odyssey oil pipeline. Gas from Delta House is delivered through 31 mi (50 km) of new 16-in. line that links the FPS to
the BP Pipelines-operated Destin Pipeline Co.s 24-in. gas pipeline.
While the second exploration well was being drilled on the Who
Dat field, which is a part of the Delta House project, LLOGs development team was beginning to order the subsea infrastructure.
Nine trees, along with the wellheads, casing and downhole systems
were planned for its development long before it was needed in the
field, according to the exploration company. The team was sure it
could use the ordered equipment for Delta House, mainly because
the company has standardized its wells, it said. Most of the companys deepwater developments use the same horizontal trees, and
Dockwise Treasure transported the hull from South Korea to Texas.

(Photo courtesy LLOG Exploration)
any that were not needed for Delta House could be used for other
developments. The company also has standardized its subsea manifolds, LLOG added, so if the development calls for more than four
wells, a second manifold can be bolted to the first.
By the end of 2014, six of the proposed 14 Delta House wells had
been drilled. Of the first six wells, two were drilled by the Ensco 8502
in 2012-2013, and two were drilled by the Noble Amos Runner in 20112012. The Ensco 8503 drilled the sixth well in late 2014, followed by the
initial two subsea completions for the field. The Sevan Louisiana then
drilled wells 7, 8 and 9 in 2015, followed by Seadrills West Neptune that
completed the remaining wells in the field.
Contracts
As for the Delta House FPS, it is designed and customized to LLOG
specifications, in a first in what the company envisioned as a series of
floating production systems all with the same basic Delta House plan.
The four-column semisubmersible floating production system,
based on Exmars Opti-Ex hull design is similar to LLOGs successful Who Dat platform but 40% larger. The hull is optimized to increase the amount of payload it can carry relative to the weight of
the steel in its hull. Considered lighter and more buoyant than most
conventional four-column hulls, due to the columns being square
on the other corners where structural loads are the greatest, saves
steel, the company added. With the risers attaching to the FPS, it
provides another weight saving feature.
The way the hull is designed, we swap off risers for ballast, said
Craig Mullet, project manager for the hull and topsides. If we tension
the risers at the top of the hull, we sacrifice weight capacity. By fastening our risers to the bottom of the hull instead, we save the weight.
Delta Houses opti-11,000, situated on the Who Dat field in Mississippi Canyon block 547, is suitable for water depths from 1,500 to
10,000 ft (457 to 3,048 m).
By October 2014, the FPS was moored. Once ballasted down to
working depth, the underside of the main deck was 72 ft (22 m)
above the water line, with 98 ft (30 m) of the hull below the waves.
Production commenced shortly after.
TOP 5 PROJECTS
Subsea compression prolongs gas

production at sgard offshore Norway
n mid-September, the worlds first subsea compression station began operating

at the sgard production complex in the
Norwegian Sea. The technology is designed to boost pressure at the Midgard
and Mikkel fields that export gas and condensate to the sgard B semisubmersible
processing platform nearly 40 km (25 mi)
away. In the process, Statoil expects to extend
the fields lives out to 2032, thereby extracting a further 306 MMboe of production.
According to a paper presented by Statoils
Simon Davies and Rune Mode Ramberg at
DOT in Houston in October, the industry
began working on developing subsea compression technology in the late 1980s. Gas
production through sgard B started in late
2000, although Statoil and its partners were
aware from the outset that compression would
be needed at some point to counter declining
pressure at Midgard and Mikkel. Lack of available space on sgard B meant the only alternative would have been adding a much costlier, dedicated compression platform.
Work on qualifying the components needed for subsea compression started in 2005,
and during 2007-13, Statoil and its team of
equipment suppliers implemented a program
for testing and qualifying nearly 50 components divided into three main categories:
process modules, power system and control
system. Testing of the prototype compressor
began at Statoils K-lab facility near Stavanger in 2008 with a series of endurance trials,
some with different quantities of liquids. Between 2008 and 2013 the compressor and motor rating was increased from 8 MW to 11.5
MW, with verification testing conducted of
the 11.5-MW compressor design from 2012.
During 2011-13, K-lab was upgraded to include a shallow-water test pit for testing of a
complete compressor module, with one of
the compressor units undergoing successful
submerged testing in 2014. Further tests were
performed at the facility on the motor and topside variable-speed drive using a cable simulator to confirm electrical stability over the long
step-out for a range of operating conditions.
In March 2012, Statoil and partners Eni,
ExxonMobil, Petoro, and Statoil got the goahead from Norways Parliament to proceed
with the full-scale development, which would
involve installation of a two-train subsea
compression station in 300 m (984 ft) of wa-
Jeremy Beckman
EditorEurope
Artists impression of the Midgard/Mikkel subsea compression train. (Image courtesy

Aker Solutions)
ter. Each train would comprise a scrubber,

a condensate pump, and a compressor with
an inlet and outlet cooler. The focus was on a
compact design, with motor and compressor
housed in the same casing, and with cooling
of the motor achieved using the process gas.
MAN Diesel and Turbo, also involved in
the qualification program, designed and manufactured the HOFIM motor-compressors
for integration into the compression station
provided by the main equipment contractor Aker Solutions. The four HOFIM units,
adapted for harsh subsea conditions, are
hermetically sealed and remotely controlled,
with casings designed to withstand 220 bar
(3,191 psi) pressure, and a 7-axes active
magnetic bearing system integrated inside
the casings to prevent gas leakage. According SKF, supplier of the magnetic bearings,
these are designed to simplify the system by
removing the need for components such as
lubricating oil, seals and gearbox. In addition, the bearings are friction-less, leading to
higher rotation speeds, which in turn allows
use of smaller compressor modules.
Power for the subsea station is supplied
from the sgard A production ship. Under a
separate contract, Aker Solutions built a 900-
ton power/control module for installation on

the vessel, with ABB providing the associated drives and transformer (the total installed
power system, according to analyst ScanBoss,
is around 25 MW), and Apply Srco performing the topsides modifications. Each of the
trains is supplied with power via an umbilical,
manufactured by Nexans, with Deutsch, Expro and GE providing the high-voltage subsea
connectors and Schneider Electric the subsea
control power distribution unit. MPM manufactured the subsea wet gas meters.
Well stream from the three Midgard subsea
templates, one of which also receives Mikkels
production, enters the compression station via
a 900-ton manifold. This arrangement necessitated reconfiguration offshore of the flowlines
between the two fields: Technip handled this
assignment, also installing the umbilicals and
power cables. In 2013, Technips subsea construction vessel North Sea Giant installed 12
pipeline end manifolds and a riser base, both
fabricated by Rosenborg Worley Parsons.
In July the same year, Saipems crane
barge installed the 1,800-ton compressor station template and manifold station, both built
by Aker in Egersund, at the Midgard location,
and also the topsides power/control module.
The 20 modules for the compressor station
underwent a system integration test at Egersund in mid-2014 and were installed offshore
by North Sea Giant during April to September
this year. The vessel performed nine trips to
install all 20 modules, most including installation of one large module such as a compressor, scrubber or outlet cooler. These were
lowered over the side of the vessel using a
specially designed handling system, which
included a 420-metric ton (463-ton) crane and
guide frame equipment, to allow installation
through the splash zone in significant wave
heights of up to 4.5 m (14.7 ft).
Each complete train, weighing 1,500 tons
in total, is secured to a 400-ton base frame. In
2013, Allseas Lorelay laid the new 37-km (23mi), 20-in. pipeline that runs from the compression station to the sgard B gas platform.
One of the existing Midgard/Mikkel export
pipelines has been retained this is connected to another line from the compression
station via a hot tap connection, performed by
Technips Skandi Arctic vessel.
Statoil estimates the overall project cost
at just over NOK19 billion ($2.19 billion).
TOP 5 PROJECTS
Perla marks first gas field

to enter production off Venezuela
Jessica Tippee
Assistant Editor
ardn IV S.A., a 50/50 joint operating neering and Construction Group for pre-front- construction of the equipment and materials
company between Repsol and Eni, end engineering and design and FEED for at module and jacket fabrication yards, and
started production from the Perla the fields production facilities: offshore struc- for site installation.
gas field in the Gulf of Venezuela in tures, trees, controls, offshore processing,
Valerus won an engineering, procurement,
July 2015. Located in the Cardn IV subsea flowlines, export pipelines, the shore and construction contract for the natural gas
block 50 km (31 mi) offshore in 60 m (197 approach and utilities facilities from the well- conditioning and condensate stabilization faft) water depth, Perla is estimated to hold up heads to an onshore gas plant, and tie-in to an cility. The company performed the process
to 17 tcf of gas in place, or 3.1 Bboe. Accord- existing gas and condensate pipeline system.
design and fabricated the process equipment.
ing to Repsol, this is the largest gas discovAs part of FEED in April 2011, Trident Construction of the facility was executed by
ery in the companys history and the largest Risk Management was hired for reliability, Consorcio La Perla, a consortium between
offshore gas field in Latin America. Eni says availability, and maintainability analysis; a Valerus Venezuela and Lindsay Venezuela.
Perla is the first gas field to be brought to marine vessel collision risk assessment; an
The Minister of Petroleum and Mines of
production offshore Venezuela.
infield flowline risk assessment; and layers Venezuela and President of PDVSA Rafael
Discovered in 2009, the Perla 1X well encoun- of protection analysis for offshore and on- Ramrez, Enis CEO Claudio Descalzi, and
tered a 240-m (775-ft) hydrocarbon column. shore facilities.
Repsols President Antonio Brufau signed
During production testing, it produced high
In April 2013, Saipem was commissioned strategic agreements in June 2014. The first
quality gas with a capacity of 600,000 cu m/d to transport and install a hub platform and agreement is a memorandum of understand(approximately 3,700 boe/d) and 500 b/d of two satellite platforms; a 67-km (41.6-mi), 30- ing to create a new company (mixed entercondensate. Perla 2, drilled in 60 m (198 ft) in. offshore export pipeline; two 14-in. clad prise) to develop and produce Perlas conof water, found 260 m (840 ft) of net pay in infield flowlines and other infield cables; and densate reserves.
a carbonate sequence with good reservoir related tie-in operations. Most of the work
The new company will be jointly run by
characteristics. During production testing it was performed by the Saipem 3000 and Cas- CVP (PDVSAs affiliate) with 60%, Eni with
flowed 50 MMcf/d plus 1,500 b/d of conden- toro 7 vessels between 3Q 2013 and 2Q 2014. 20%, and Repsol with 20%. The second agreesate. Perla 3, drilled in 70 m (230 ft) of water,
Seadrill received a $222-million contract ment establishes the key elements for up to
encountered 210 m (675 ft) of net pay carbon- for the LT-Super 116E jackup drilling rig West $1 billion investment structure to finance
ate sequence with the same hydraulic regime Freedom in July 2013. The 30-month charter CVPs share in the Perla development. Eni
as the discovery well and with excellent res- began in late September 2013. At first produc- and Repsol will contribute with up to $500
ervoir characteristics. The well flowed 68 tion, seven of the 26 planned wells had been million each. Both agreements are subject
MMcf/d of gas and 1,350 b/d of condensate drilled.
to final contracts being signed and approved
during the production test. According to Eni,
Foster Wheeler was contracted to provide by local authorities.
the third shallow-water well confirms Perla as project management for the new producPDVSA exercised its 35% back-in right,
a world-class supergiant gas discovery, one tion facilities in August 2013. The company and, after the signature of a sale and purof the most significant in recent years, and supervised the engineering, procurement, chase agreement, it will get its ownership
the largest ever in Venezuela. The Perla 4 ap- and construction contractors, and the pro- stake in Cardn IV S.A., which will be jointly
praisal well flowed 17 MMcf/d of gas and 560 curement of long-lead equipment, from operated. Eni and Repsol will each keep a
b/d of condensate during the production test. engineering centers in Houston, Madrid, 32.5% interest.
The three-phase development involves four London, and Rijeka, Croatia. According to
In April 2015, Seaway Heavy Lifting was
relatively light platforms connected to 26 wells, Foster Wheeler, contractors in more than 15 contracted to transport and install the gas
with gas exported through a 30-in. subsea pipe- countries were involved in fabrication and production platforms and tie-in to various
line to a new two-train central processing fainter-field pipelines that were already
cility onshore at Punto Fijo. The first phase
installed. The crane vessel Stanislav Yuis estimated to cost $1.5 billion.
din executed the lifting and installation
The project was officially sanctioned
work, and was outfitted with a saturation
in December 2011 when Eni and Repsol
dive system to perform the tie-ins. The
signed the gas sales agreement with Vencompany handled project management
ezuelan national oil company Petrleos
and engineering from the Netherlands
de Venezuela SA (PDVSA) and the Minisand its new project office in The Woodter of Petroleum and Mines of Venezuela.
lands, Texas.
By the end of 2015, Repsol expects gas
Perla is part of the Rafael Urdaneta gas
production to increase to 450 MMcf/d.
project, which spans about 30,000 sq km
Production should reach 1.2 bcf/d in
(11,580 sq mi). It consists of 29 blocks: 18
2020. PDVSA has contracted the gas for
in the Gulf of Venezuela and 11 in northall three phases until 2036.
east Falcon state. According to PDVSA,
In October 2010, Cardn IV S.A. con- The Perla gas field is in the Cardn IV block 50 km (31 mi)
the project aims to meet the domestic
tracted Foster Wheeler AGs Global Engi- offshore. (Map courtesy Repsol)
markets demand for natural gas.
National interest projects sustain

Middle Easts offshore rig count
Dr. Rina Samsudin
IHS
gainst a backdrop of low oil prices and spending cutbacks in

the upstream E&P industry, the Middle East is the only major region in the world yet to register sizeable decreases in
the number of offshore drilling rigs (jackups, semisubmersibles, and drillships) holding current or future contracts.
The number of contracted rigs typically jackups in this part of the
world stood at over 130 as of late October, only slightly lower compared to a year ago. In comparison, the contracted fleet in other key
regions such as Southeast Asia, West Africa, and the US Gulf of Mexico
shrank significantly, between 20% and 40%. The global average was a
net 20% decrease, with the number of contracted units dropping from
around 730 to less than 600 between October 2014 and October 2015.
Why has the Middle Easts contracted rig count managed to hold
steady when contracted numbers have wavered elsewhere? In this
region of high levels of state participation in the oil and gas industry,
countries such as Saudi Arabia, Iran and the United Arab Emirates
(UAE) are largely maintaining or even increasing their working
rig populations to ensure that projects or goals of national interest are
met. These plans are facilitated by lower development costs compared
to those in areas such as offshore northwest Europe and West Africa.
Saudi Aramco with over 45 jackups under contract is the top
employer of offshore drilling rigs in the Middle East and the second
worldwide, after Petrobras. When oil prices plummeted during the
2008/2009 global financial crisis, the national oil company (NOC)
chose to scale down its operated rig fleet. However, in the subsequent years, Saudi Aramco ramped up offshore activity again and
effectively doubled its rig count between 2011 and 2014.
Despite the current environment of low oil prices (with OPEC deciding to maintain production levels) and pressure to reduce spending, it is understood that Saudi Aramco is not planning to significantly
downsize its fleet of jackups, as it did in 2008/2009. Rather, in this
buyers market, the influential NOC is using its bargaining power to
negotiate day rate discounts in old and new contracts, not only for
drilling rigs but for other services also. Saudi Aramco renegotiated a
good number of jackup contracts earlier this year and renewed most
that were expiring.
Iran, the second biggest jackup market in the Middle East, has managed to secure drilling rigs over the years in the face of sanctions that
have prevented many foreign operators, service providers, and other
companies from engaging in business with the country. It is estimated
that more than 25 jackups are currently operating in the Iranian sector
of the Persian Gulf, compared to 10 or so a decade ago.
In spite of sanctions, Iran has been able to buy and/or lease jackups
from abroad; many of these rigs have been deployed to work on the giant
South Pars gas development, from which production is being brought onstream in phases. The republics economic activity and government revenues are heavily dependent on petroleum revenues, yet weaker crude
prices seem to have hardly made a dent in Irans offshore rig count. It
is thought that many of the rigs deployed off Iran are operating under
relatively long contracts for critical development projects that will carry
on nonetheless. In the coming years, Iranian demand for offshore drilling
Marketed and contracted offshore rigs by region (October 23, 2015)

US Gulf of Mexico
This Week
Last Week
Last Month
Last Year
Total Supply
118
117
118
116
Marketed Supply
72
73
75
89
Marketed Contracted
55
54
54
72
76.4
74.0
72.0
80.9
Marketed Utilization (%)

South America
This Week
Last Week
Last Month
Last Year
Total Supply
68
68
69
78
Marketed Supply
64
64
65
74
Marketed Contracted
58
58
59
74
90.6
90.6
90.8
100.0

Northwest Europe
This Week
Last Week
Last Month
Last Year
Total Supply
103
103
103
98
Marketed Supply
96
96
96
96
Marketed Contracted
79
79
79
93
82.3
82.3
82.3
96.9
West Africa
This Week
Last Week
Last Month
Last Year
Total Supply
74
74
74
88
Marketed Supply
69
69
69
79
Marketed Contracted
48
48
49
69
69.6
69.6
71.0
87.3
Middle East
This Week
Last Week
Last Month
Last Year
Total Supply
159
159
161
151
Marketed Supply
153
153
155
146
Marketed Contracted
132
133
136
135
86.3
86.9
87.7
92.5
Southeast Asia
This Week
Last Week
Last Month
Last Year
Total Supply
96
97
98
102
Marketed Supply
88
88
90
92
Marketed Contracted
50
50
53
80
56.8
56.8
58.9
87.0

Worldwide
This Week
Last Week
Last Month
Last Year
Total Supply
849
851
852
863
Marketed Supply
755
759
764
798
Marketed Contracted
595
598
606
732
78.8
78.8
79.3
91.7
Source: IHS
rigs has the potential to grow by some significant degree with the anticipated lifting of sanctions. The country has already begun discussions
with external parties regarding future development projects.
Meanwhile, the UAE is arguably the top growth area in the Middle East this year. The National Drilling Co. (NDC) of the Emirate
of Abu Dhabi has said that its (land and offshore) rig count is not
likely to be dampened by low oil prices as the UAE strives to meet
its production target of 3.5 MMb/d by 2017/2018 and be able to
sustain these levels. Abu Dhabi is to invest in some $2.5 billion in
offshore drilling activities as part of the investment plans and the
Working demand for jackups in the Middle East: Top 5 Countries.
Abu Dhabi National Oil Co. (ADNOC) plans

to drill around 160 wells per year in the next
couple of years.
Earlier this year, NDC chartered eight additional jackups on behalf of operators in Abu
Dhabi. Two of the rigs were already based
in the region while the remaining six were
mobilized from abroad. Most of these new
contracts commenced during the second half
of the year. Compared to other parts of the
world, especially given the current circumstances, the hiring of eight incremental off-
shore rigs in one sweep by a single country

is impressive, particularly considering the
backlog of work that these units have been
hired for: over 20 years firm plus potentially
more than 10 years in the form of options.
Moreover, Abu Dhabis jackup fleet is set
to expand further. The emirate has three
LeTourneau Super 116E Class units under
construction at the Lamprell yard in the
Emirate of Sharjah. These are scheduled to
be delivered in 2016/2017.
Elsewhere in the Middle East, working
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rig numbers have come down. In Qatar, the

rig count rose from 2013 to 2014, but the
market is experiencing some softness during the second half of 2015 as rigs become
idle. In the offshore Neutral Zone, a joint
development area between Saudi Arabia and
Kuwait, production has been shut down as
a result of disagreements between the parties involved and the jackup count there
has dropped from four to two units. As for
Oman, no rigs have been deployed offshore
since early 2014 following a brief spurt of exploration/workover activity.
On aggregate, working jackup levels in the
Middle East this year are expected to remain
relatively flat compared to last year as growth
in the UAE is anticipated to balance out declines elsewhere. Jackup day rates, though,
have come down significantly as competition
intensifies in an oversupplied market.
For the time being, the Middle Easts top
jackup operators namely the NOCs are
anticipated to have enough work in the pipeline to maintain existing working levels for
the next year or two. In the most optimistic
scenario, rig demand in the region may even
increase, if various planned exploratory drilling programs by some of the regions smaller/
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Mellitah details plans to unlock

dormant discoveries offshore Libya
Program starts with expansion of Bahr Essalam
Jeremy Beckman
EditorEurope
ver the next seven years, Mellitah Oil & Gas is looking to
develop three Libyan offshore oil, condensate, and gas discoveries. Total costs will likely exceed $7 billion, according
to Khalifa Daw Musa, general manager of geosciences and
reservoir engineering.
Musa, speaking at the recent 4th New Libya Oil & Gas Forum
hosted by IRN in London, said the three fields were designated the
A, C, and E structures. C is actually a second-phase development
of the producing Bahr Essalam field in concession NC41, 110 km
(68.4 mi) offshore in around 200 m (656 ft) of water.
Bahr Essalam comprises a 50-km (31-mi) long and 4-km (2.5-mi)
wide series of anticlines. Mellitah a joint venture between the Libyan
National Oil Company (NOC) and Eni has subdivided the field into
the Western, Central A, Central B, and Eastern areas, with varying
internal pressures, fluid contacts, and fluid properties. The western
parts are more heavily faulted. The reservoir is mainly gas condensate, with a small oil rim beneath the gas zone in the Central B and
Eastern areas, respectively 80 ft (24 m) and 35 ft (10.7 m) thick.
Phase 1 production comes from the 15 wells in the Central B area,
drilled from the Sabratha platform, and from two subsea clusters of wells
(11 in total) on the Western part. The current Phase II development is
targeting a further 1,185 tcf of gas, 51 MMbbl of condensate and 188
MMbbl of oil via two more subsea clusters (10 wells in total) on C-East;
two wells in the Central A area; and another on the Central B area.
Drilling was due to start before year-end, Musa said, and the program should take around 720 days to complete, with Phase II set to
come onstream during summer 2017. The total drilling and completion
budget is $772 million, while the full cost of the Phase II project is estimated at $2 billion.
To the east of Bahr Essalam is the E structure, a rounded, flat anticline
with two culminations separated by a saddle. The field is 126 km (78.3 mi)
offshore in water depths of 205-235 m (672-771 ft) and extends into the adjacent NC35 concession. Since the initial discovery in 1977 on the northern
part of the structure, five appraisal wells have been drilled. Hydrocarbons
are present in the Metlaoui carbonates formation, and comprise a thick
gas-condensate column and a thin oil column. Reserves are estimated at
1,838 tcf of gas, 65.5 MMbbl of condensate, and 82 MMbbl of oil.
Mellitah plans to install a platform in the central part of the structure
housing 15 gas and five oil wells, with two subsea wells in the western
part exporting gas to the platform via a 16.3-km (10-mi), 8-in. pipeline
and another cluster of four subsea wells in the north exporting gas to
the same facility via two parallel 7.5-km (4.67-mi) pipelines. All gas, oil,
and condensate produced at the platform will be exported via two parallel 126.2-km (78.4-mi) pipelines to an onshore plant (32-in. diameter for
gas, 14-in. for oil and condensate). The $3.62-billion project is currently
slated to start up in spring 2022, initially producing 600 MMcf/d of gas.
The A structure is southwest of Bahr Essalam, 75 km (46.6 mi)
offshore in 125 m (410 ft) of water. This is a faulted anticline, 14 km
Proposed E structure development offshore Libya. (Schematic courtesy

Mellitah Oil & Gas)
(8.7 mi) long and 3 km (1.87 mi) wide. To date, four wells have been
drilled and tested, encountering hydrocarbons in Metlaoui formation
carbonates, with a large gas cap and a 96-ft (29-m) column of 39API
oil. Estimated reserves are 671 bcf of gas, 32.2 MMbbl of condensate,
and 5.9 MMbbl of oil. All four wells will feature in the development
Mellitah plans to drill another eight, Musa said, comprising seven
platform wells and one subsea. The proposed $1.49-billion project, designed to deliver 160 MMcf/d of gas, could start up in spring 2021.
Deepwater potential
BP is the second largest IOC operating in North Africa, said Jasper
Peijis, VP exploration, Africa at the same conference. Its exploration
acreage in Libya includes the 30,000-sq km (11,583-sq mi) Area C in
the offshore Sirte basin in water depths up to 2,000 m (6,561 ft). This
is north of Hess 2009 reportedly commercial deepwater Arous Al Bahar discovery. BP has identified three plays carbonate flank, basinal
clastics and marginal clastics and sees analogies with Enis recent
mammoth Zohr gas find to the east in the deepwater Egyptian sector.
The company has acquired 17,000 sq km (6,564 sq mi) of 3D
seismic over the central and eastern part of Area C, and was only
months away from spudding its first exploration well before growing
instability in Libya forced it to declare Force Majeure in February
2011. Fifteen months later, BP lifted Force Majeure, only to re-declare it in August 2014 as Libyas situation deteriorated further.
Peijis said BP is waiting for the moment to begin safely executing
its offshore drilling program, starting with a long-planned well on the
Trelia prospect in the Carbonate Flank play. However, even if proposals for forming a new unity government succeed, certain issues still
have to be addressed before operations can start offshore, Peijis said.
One is the need to implement procedures to deal with any resultant
oil spills; another is the safety risk posed by boats carrying refugees
passing close to areas of offshore activity.
GEOLOGY & GEOPHYSICS
Somalia, East Black Sea

opening up for exploration
Jeremy Beckman
EditorEurope
rontier seismic surveys were due to start this fall offshore Somalia and in the eastern Black Sea. For different reasons, the
industry has largely shunned both regions over the past two
decades, but new developments are altering perceptions.
Spectrum Geo is directing both operations. The company
has an agreement with the federal government in Somalia to acquire
around 28,000 km (17,398 mi) of new 2D data in the Indian Ocean
off the southern half of the country in water depths of 30 m -4,000
m (98-13,123 ft). This is designed to complement and infill a survey
acquired last year closer to the shore off the same coastline. Part of
the contract area includes an offshore concession assigned to Shell
and Exxon in 1988.
The new data will provide the first in-depth view of the countrys
offshore prospectivity, which is attracting new interest following the
recent discoveries along the East African Margin, including BGs Sunbird oil find offshore neighboring Kenya. Streamer lengths of 10,050
m (32,972 ft) will be used in the current campaign to record information at all offsets, assisting imaging of the underlying syn-rift geometries. Spectrum will then apply modern processing algorithms to
optimize imaging of known steeply dipping extensional and compressional features and to highlight amplitude anomalies. On completion,
the company will have sole marketing rights for the dataset, which
will provide coverage over the shelf, slope and basin floor.
Somalia is known to have three main oil-producing basins: the Permo-Triassic, Jurassic, and Cretaceous. Various international oil companies explored intermittently onshore Somalia before withdrawing
as security deteriorated. According to Abdulkadir Abikar Hussein, the
geological survey head at the Ministry of Petroleum and Mineral Resources speaking at a recent Spectrum seminar in London much
of the country is know to have sediments 3-5 km (1.86-3.1 mi) thick,
but historically, the wells drilled were too far apart.
Following the installation of the federal government, stability has
improved, leading to the renewed interest from the oil and gas sector. The Ministry itself was created in 2011 and has been working on
a legal and regulatory framework to finalize terms for a competitive
production-sharing agreement linked to a future bid round, which
could be staged in 2018. Spectrums data will be available for this
round, as will old legacy data, much of which CGG is managing and
marketing on the Ministrys behalf.
For security reasons the Ministry is ignoring onshore Somalia for the
time being, Hussein said. We need to first focus on the Indian Ocean,
followed by a Gulf of Aden bid round in the north if we can reach
a settlement with the northern separatists. Once the new framework
and datasets are in place, he added, we can show that Somalia means
business, that the country has come back to the international community and that it is ready for really serious oil and gas exploration.
Black Sea oil quest
Spectrums other frontier survey should be under way in the East

Black Sea basin. Although the basin is similar in size to the Gulf of
Mexico, only three exploration wells have been drilled to date, and
there are large areas of open acreage with only sparse modern data
coverage. However, the Maykop formation in the Black Sea area is a
proven source rock that has also generated large oilfields to the east
in the Caspian Sea.
The area offshore southern Somalia covered by the latest 2D survey.

(Map courtesy Spectrum Geo)
In total, the current survey will acquire 14,000 km (8,700 mi) of long
offset 2D data in a 10 x 10 grid over the southeastern part of the sea
using 12,000-m (39,370-ft) long streamers, with broadband processing.
Acquisition should finish during 1Q 2016, with the first processed prestack time migration (PSTM) data set to be released a few months later.
Recent spectacular drilling results in the Romanian sector suggest
the west side of the Black Sea is largely gas-prone, especially in deepwater Palaeo-Danube plays, said Dr. Neil Hodgson, Spectrum Geos
executive VP Multi-client, Mediterranean and Middle East. However, we believe the east will be oil-prone. The region is the location for a
past collision between two thrust zones, the Greater Caucasus North
and the Lesser Caucasus systems. This part of the Black Sea has
very little existing multi-client seismic data to draw on for establishing hydrocarbon plays. Spectrum has therefore scanned and vectorized Russian academic data from the 1980s to build a basic overview,
although not of the quality needed to chase the play, Hodgson said.
This was a rift basin opened in the early Cretaceous, subsequently
infilled by clastics thought to have stemmed from the Georgian delta
system. That created a set of understandings of the basin that we
aim to challenge with our new data set. Typical perceptions are of
poor-quality reservoir, based on overpressure encountered by the few
wells drilled (two of which drilled through targeted Tertiary clastics).
The East Black Sea basin was once part of a giant inland sea system
that extended to the Caspian Sea, Hodsgon continued. Satellite images
have revealed oil seeps, some originating from Georgia, confirmed as
thermogenic by subsequent sampling. We also took our own satellite
images and spotted more seeps on the margins of the basin just offshore Turkey and on the maritime border between Turkey and Georgia. These seeps show that oil is sloshing and trying to find a reservoir
to migrate to, he suggested. TPAO, the Turkish state oil company, has
also mapped from its data sands coming from western Georgias Rioni
River Delta in the east to the Pliocene in deepwater, he added.
New fracturing tool improves

extended-reach drilling efficiency
Bruce Robertson Euan Murdoch
Weatherford
ith thousands of feet of seawater between surface and

wellbore, harsh and unpredictable environments, and
difficult-to-access equipment placed far below the seabed, offshore reservoirs magnify the typical challenges
associated with well completions. Extreme environments demand lower-completion technologies that mitigate risks,
lower costs, and save rig time. Lower-completion interventions that
require tripping thousands of feet in and out of wells mid-operation
can incur at least $1 million per intervention and significant delays.
These complex operating conditions combined with the current economic climate leave no margin for error.
In extended-reach applications, conventional proppant stimulation allows little to no flexibility in the event of unplanned scenarios,
such as premature screen-outs or poor injection into zones. In these
circumstances, additional milling runs are required to continue operations, and conversion to a less efficient completion technique
may be necessary. This significantly increases nonproductive time
between fracture cycles and the associated costs. To address these
concerns, operators have long sought lower-completion technology
that reduces intervention during stimulation, avoids time-consuming mill-outs, minimizes exposure to abnormally stressed formations, and provides contingencies for unanticipated events.
Weatherford recently introduced the AutoFrac system as an effective option for stimulating the open-hole section to the completion
toe in extended-reach wells. The system operates lower-completion
tools remotely to minimize intervention and milling requirements
and costs, and it reduces time between fracture cycles. The system
can be fully customized for specific well conditions.
The new system provides several options for tool communication without reliance on control lines or mechanical actuation: ra-
Setting depth and run-in order for each AutoFrac tool.

Zone
1
2
3
4
5
6
7
dio frequency identification device (RFID) technology, frequencymodulated pressure pulses, ACTiFRAC pressure pulses, timers, or
a combination of these options. RFID actuation involves dropping
preprogrammed electronic tags downhole. As the tags pass by the
tools, they transmit commands to built-in tool antennae, and the
tools respond by opening or closing. When it is not possible to drop
RFID tags downhole, a sequence of pressure cycles can actuate
tools. ACTiFRAC pulses adopt algorithms within the tool software
that enable the recognition of pressure pulses in circulation mode,
which enhances flexibility. For operational updates, the Weatherford downhole i-Rabbit system (DRS) is a memory logging tool that
retrieves temperature and pressure data and that provides valuable
information regarding the status of tools in situ.
The new system incorporates one or more of the following tools: the
advanced reservoir isolation device (ARID) stimulation sleeve, the AutoStim flapper valve, and the reservoir isolation valve (RIV). The ARID
sleeve isolates the tubing from the open hole and provides on-demand
Operational summary of commands delivered

to each tool and the actions taken.
AutoFrac tool
Commands
Action
AutoStim Valve 1
RFID tag
Closed during installation
ARID Sleeve 1
3-minute pressure pulse
Opened
Switched to RFID mode
RFID tag
Closed for pressure test
ACTiFRAC Pulse
Re-opened
Switch to RFID mode
RFID tag
Switch to pressure-pulse mode
Opened
RFID tag
Close for pressure test
ACTiFRAC Pulse
Re-opened
Opened
Switch to RFID mode
RFID tag
Closed for pressure test
ACTiFRAC Pulse
Re-opened
Switch to RFID mode
RFID Tag
AutoStim Valve 2
ARID Sleeve 2
AutoStim Valve 3
ARID Sleeve 3
AutoStim Valve 4
AutoFrac tool
Setting depth
AutoStim Valve 1
20,764 ft (6,329 m)
ARID Sleeve 1
20,689 ft (6,306 m)
AutoStim Valve 2
20,148 ft (6,141 m)
Failed to open
ARID Sleeve 2
20,089 ft (6,123 m)
Switch to RFID mode
AutoStim Valve 3
19,547 ft (5,958 m)
RFID tag
Closed
ARID Sleeve 3
19,485 ft (5,939 m)
ARID Sleeve 5
Opened
AutoStim Valve 4
18,944 ft (5,774 m)
AutoStim Valve 6
Switch to RFID mode
ARID Sleeve 4
18,885 ft (5,756 m)
Switch to RFID mode
AutoStim Valve 5
18,340 ft (5,590 m)
RFID tag
ARID Sleeve 5
18,274 ft (5,570 m)
Opened
AutoStim Valve 6
17,257 ft (5,260 m)
Switch to RFID mode
ARID Sleeve 6
17,198 ft (5,242 m)
Switch to RFID mode
AutoStim Valve 7
16,765 ft (5,110 m)
RFID tag
ARID Sleeve 7
16,706 ft (5,092 m)
Opened
ARID Sleeve 4
AutoStim Valve 5
ARID Sleeve 6
AutoStim Valve 7
ARID Sleeve 7
reservoir access. Upon remote actuation, the sleeve autonomously

shifts its ports into the open position for proppant fracturing.
Depending on specific well needs, operators can use either AutoStim flapper valves or reservoir isolation valves to isolate previously
fractured zones and to divert stimulation fluids through open ARID
sleeves in the next interval. The valves close and open, on command,
when actuated. The flapper valve, which enables unidirectional flow
of stimulation fluids, holds pressures from above up to 10,700 psi
(73.8MPa). The RIV uses the same design as the flapper valve, but
also includes a mechanical locking mechanism that enables the RIV
to hold differential pressures from both above and below. With this
added functionality, the RIV is typically used at the toe of the well
and provides an ISO 28781 V1 (Gas)-rated well barrier.
Case study
Recently, Weatherford deployed the AutoFrac system in a tight-gas

well in the North Sea. The client sought to develop the Leman Sandstone reservoirwhile minimizing intervention runs and costsby
performing six stimulations in seven horizontal zones. Other systems
that the operator had used previously lacked contingencies for screenouts. Because relatively little hydraulic fracturing is performed in this
type of reservoir and the formation could contain high-permeability
streaks, much uncertainty existed about reservoir response to stimulation treatments. This greatly increased the risk of a screen-out.
The lower-completion string included seven 4-in. AutoStim flapper valves and seven 4-in. ARID sleeves, which were inspected,
function tested, and programmed to meet operational parameters
upon arrival at the job site. In March 2015, Weatherford set the lower-completion string at a total depth of 20,862 ft (6,359 m).
SEASON
PASS
Once the lower-completion string was run to depth, the team added RFID tags into the fluid stream and circulated them downhole
through the liner-hanger running tool. The RFID tags commanded
the flapper valve at the completion toe to close, which provided a
deep-set barrier. Pressure testing indicated positive valve integrity.
Hydraulic stimulation of the zones occurred in June 2015. The
stimulation operation used a combination of RFID tags, pressure
pulses, and ACTiFRAC pulses to actuate the AutoFrac system.
Six of the seven ARID sleeves opened successfully with a command-response rate of 93%. An isolated electronic failure in ARID
Sleeve 4 necessitated a shifting-tool run to mechanically open the
sleeve, which resulted in the sleeve opening and achieving a good
injection rate during stimulation. All AutoStim valves successfully
closed and re-opened with a 100% command-response rate.
The new fracturing system also demonstrated a high level of flexibility during stimulation. Injection was not possible in one zone;
however, the system presented several viable options for continuing
the operation cost-effectively, minimizing intervention runs, maintaining remote operation of tools, completing all planned stimulations, and maximizing production.
Additionally, the system functioned correctly in a screen-out that
occurred during the flush stage of Zone 1, with proppant up to an
estimated depth of 9,843 ft (3,000 m). An indication from the bottomhole gauge and collected data from subsequent pressure testing
revealed that AutoStim Valve 2, though filled with 9 ppg of proppant, had closed per instructions from an RFID tag. This provided
a closed system for a hydrocarbon-free clean-out run. Following the
completion of the stimulation program, it was confirmed that all AutoStim valves had re-opened as intended.
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covers the design, engineering, construction,
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E N G I N E E R I N G , C O N S T R U C T I O N , & I N S T A L L AT I O N
Technip assessing fatigue, weight issues

as subsea installations go deeper
lthough deepwater activity has slowed

over the past year, subsea contractors
continue to prepare for the upturn. At
a recent presentation in London, Technip outlined some of the technologies
it is working on to extend the lives of producing subsea facilities and to extend development to deeper water.
According to Laurent Dcoret, Group Senior
VP Innovation & Technology, the challenges
preoccupying offshore operators include aging
infrastructure; the need for life-of-field monitoring and inspection systems; flow assurance
and recovery from complex reservoirs that are
more difficult to produce, with a requirement
for active heating to put energy into the fluid;
and problematic reservoir conditions such as
high pressure/high temperature, with carbon
dioxide (CO2) or hydrogen sulfide (H2S) in the
fluids, and the requirement for products that
can accommodate these components.
For ultra-deepwater developments such as
the presalt fields off Brazil, the design life can
be 30 years-plus, Dcoret pointed out. Our
products must sustain production without
the need for intervention over this period, he
said. And increasingly, new technology must
generate cost savings for clients.
In October, Technip USA signed an agreement with 3D at Depth, based in Boulder,
Colorado, to jointly develop the LIDAR (Light
Detection and Ranging) laser scanning technology for new types of subsea metrology and
inspection applications. LIDAR can be used to
build precise 3D models of subsea structures,
including in deepwater where data collection
and imaging is typically more difficult. The
technique can be applied to more accurately assess requirements for connecting
pipelines to wells and manifolds
prior to fabricating spools, speeding the operation and minimizing
any work that might subsequently
need to be re-done.
Another issue Technip has
been working on is an improved
methodology for assessing riser
fatigue, particularly in the presalt
plays where risers can typically be
suspended up to 2,500 m (8,203
ft) from an FPSO to the seafloor.
To minimize top-section tension, buoyancy modules have to
be fitted along the riser, Dcoret
explained. These have to be pro-
Jeremy Beckman
ancy altogether. The result would be a free-hanging riser that is slightly shorter. And although
composites cost more to manufacture than steel,
without buoyancy this solution would be easier
to install, and therefore cost-effective.
The company has qualified the first generacured and they then take time to install. It would tion of carbon armor. There is a limit on the
be better to be able to unreel a flexible riser with maximum temperature it can withstand, but
nothing on it and reduce significantly the num- we are working on second and third-generaber of buoyancy modules. This is a challenge the tion versions to address this. And we are also
company is addressing to provide flexible pipes studying use of composite materials for umon the Libra field in the Santos basin, notably for bilical and rigid pipeline systems as well as to
the high pressure gas injection application.
replace other layers within the flexible pipe.
Technips longest established flexible manuAnother ongoing development is Morphofacturing plant is in Le Trait, northern France. pipe, which involves inserting microelectronic
Here it has introduced Cowbot (CObot for sensors in the top section of risers or umbiliWire Bending Operation at Technip), a ma- cals to provide life of service performance
chine designed to improve the wire bending feedback. This could include the curvature
process during end-fitting mounting opera- of the riser at the connection point to the offtions, reducing effort for the machine opera- shore production facility for fatigue monitortors and ensuring better repeatability. As the ing. Bending of the pipe creates the most
industry moves ever deeper toward production fatigue, Dcoret said. With this technology,
in 4,000 m (13,123 ft) water depth, with the at- it could be possible to determine whether the
tendant higher pressures, this will add to the pipes service can be extended beyond its destrains imposed on the riser by the movement sign life, or if it has reached maximum capacof the FPSO. That can be partly addressed via ity and therefore has to be removed.
adding reliability during the end fitting mountDecoret said Technips In-Service Riser
ing process, Dcoret said.
Inspection (IRIS) system could provide a stepAt the same time, there is a general recogni- change in monitoring of in-service risers, and
tion that composites will be needed to replace also umbilicals and rigid pipelines. This is a
steel sections for risers to withstand the stresses crawler module equipped with various different
of deeper-water service. Technip has been work- Non-Destructve Testing (NDT) technologies
ing on carbon fiber armor that would provide that would be deployed by an ROV. After clamphigher mechanical strength than flexible pipes ing onto the riser, the crawler would perform
with tensile steel armors while reducing weight tests to determine possible ingress of water or
by up to 50%. That would be significant for a breakage of armor wire, supervised remotely
riser in 4,000 m of water, Dcoret pointed out, from a control room. The crawler would send
and with this armor, we could get rid of buoy- out a unique (according to Dcoret) combination of ultrasonic signals and elecTechnips carbon fiber
tromagnetic impulses that would
armor could allow a
be matched against what the consimpler configuration
trol room operator would expect
for deepwater risers
to receive to determine if there is
without the need for
a problem.
added buoyancy. (ImAnother technique under
age courtesy Technip)
development involves use of Xray inspection to create a true
3D picture of an in-situ flexible riser, similar to the service
provided by a hospital scanner.
This could be applied to the top
200 m (656 ft) of the riser to
determine whether any breakages, cracks or corrosion are
taking place.
EditorEurope
Vendor partnerships key

to optimizing supply chain management
n 2013, Douglas-Westwood published a

study that found 30 of 45 FPSOs installed
worldwide between 2008 and 2012 suffered schedule delay. Reasons cited include project complexity, difficult regulatory requirements, an imbalance of risk in
favor of project owners at the expense of contractors, organizational learning issues, and
supply chain issues. While the authors company can provide data to illustrate a different,
more positive trend, this article is written to
address the negative perception of schedule slippage that afflicts the entire industry,
including both project owners and contractors. Understanding the causes of equipment
schedule delay is essential in order to establish plans to mitigate future delays in supply
chain activities of major offshore projects.
Equipment supply
chain complexity
The three equipment supply chains that
serve the major project sector are segmented
to match the main components of the offshore production facility: hull, mooring, and
topsides. The vendors to each of these main
Bryan Kendig
SBM Offshore
components exist in different environments.

These environments are characterized by differences in the variety of industries served
by a vendors products, level of customization
of a vendors products, and the way in which
vendors relate to their customers (buyers).
The key message is that the equipment
supply chain for manufacturing an offshore
oil and gas facility is complex, not simple.
This complexity calls for a certain degree of
specialization to be present within a supply
chain management organization. Specialization enables supply chain management to
better anticipate and mitigate the risks that
are associated with the complexity.
The equipment supply chain can behave
differently depending on whether the buying
organization is mainly in the engineering,
procurement, and construction (EPC) business or mainly in the production operations
business (operator). This can be seen in the
behaviors of equipment vendors. For ex-
ample, when a vendor is bidding to multiple

EPC companies, and each EPC is competing
for the same project, it is not unusual for
the vendor to save significant bidding costs
by initially, only lightly reviewing specifications, offering a generic bid to all EPCs. The
vendor may then delay a thorough review of
the specification until the market reveals the
EPC winner. This package bidding model
is likely an unintended consequence of the
contracting model employed by project owners with their EPCs. It has led vendors to expect that they will be given another chance
to bid the project. Such a model can inhibit
the vendors understanding of the specification requirements, manifesting in a quality,
cost, or schedule impact at a later date. It is
also detrimental to a front-end engineering
and design (FEED) effort that is supposed
to result in approval ready, draft purchase
orders for packages of equipment.
Supply chain management should develop
vendor partnerships. Early vendor involvement, and measuring vendor performance/
holding them accountable over the long
term, can be more beneficial than risking the
Reasons for schedule delay. (Courtesy SBM Offshore)

8
120
7
100
6
60
4
3
40
2
20
1
Quantity
Cum %
% of total
Vendor
Vendors
delay to
poor
understand control of
specification subvendors
7
18%
18%
6
33%
15%
Vendor
quality
issue
6
49%
15%
Companys Insufficient Insufficient Companys

design
capacity
staffing
design
change (not at vendor
levelchange
HAZOP)
workshop
vendor
(HAZOP)
5
62%
13%
4
72%
10%
2
77%
5%
2
82%
5%
Vendors
dishonest
progress
reporting
1
85%
3%
Vendor
Vendor
Scope
document capability
added by
delay
and capacity company
assessment
inadequate
1
1
1
87%
90%
92%
3%
3%
3%
Intentional
delay by
company
Delayed
vendor
decision
Delayed
company
decision
All other
1
95%
3%
1
97%
3%
1
100%
3%
0
100%
0%
Cumulative %
Occurences
80
5
accuracy of vendor proposals in the traditional, adversarial bidding process.
Specification development
The amount of time scheduled to advance
through the stages of an offshore project
development typically ranges from three to
seven years. During this period, various EPC
companies are engaged to help define the
offshore oil and gas facility. The supply chain
management within the EPC provider is likely to be engaged throughout various stages.
The supply chain team may be called upon
to secure firm bids from vendors, including
scope, price, and schedule. The bids will be
based on specifications, and the specifications will be based on the maturity level of
engineering existing at the time. Further, the
maturity of engineering will be a function of
the maturity of input data made available by
the project owner.
The process for specification development
can introduce schedule risk to supply chain
management. One such risk element, prevalent during later stages of the process, is the
risk of receiving an accurate technical specification from the engineering effort in time for
the request for quotation (RFQ) that must be
sent to vendors. Unfortunately, almost every
project has some RFQs that must be issued
quickly due to anticipated long manufacturing
lead times that could potentially upset the fixed
project schedule. In these cases, supply chain
management may have no choice but to issue
RFQs (and subsequent purchase orders) to secure limited manufacturing slots, while expecting that necessary refinement of the specification will occur after the purchase order award.
In a normal bidding process, technical
specifications will be reasonably mature and
sufficient for the RFQ. However, even in the
normal bidding process, some vendors claim
that specifications have become unnecessarily more voluminous and overly complicated.
There is some empirical evidence that vendors are struggling to understand specifications. An analysis of schedule slippage among
a selection of purchase orders suggests that
the vendors delay in understanding specification requirements can represent up to ~20%
of the reasons associated with delay.
Root causes for failure to understand specifications can be traced to both the vendor and
the buyer sides of the supply chain. A vendor
cause relates to vendor sales organizations
that transpose specification requirements
to in-house data sheets, giving the vendors
manufacturing organization a work instruction according to the vendors own standards,
but at the expense of having lost in translation some of the client requirements. A buyer
cause relates to a specific case in which more
than 200 pages of interesting, yet non-essential specifications were included in the RFQ
package as zip files, for a simple orifice plate.

Later investigation found that the RFQ could
have been reduced to a mere few data sheets.
Both project owners and EPC contractors
should keep package specifications simple
and standardized. Supply chain management
(SCM) should work with engineering business partners to ensure that project specifications are simple, fit for purpose, and that they
maximize the opportunity for vendors to bid
as per vendor standards, as an alternate to
the specifying companys standards. Specific
goals for the effort should be to strike out
specified items that are clearly not applicable
to the subject equipment including: specific
clauses, specific requests for documentation,
and specific reference standards that are stated within the main specifications.
The industry of manufacturing offshore
oil and gas facilities is unique in that it brings
together diverse bodies of engineering such
as marine/naval architecture, process, mechanical equipment, piping, electrical and instrumentation, automation, and construction.
The engineering disciplines will work both
independently and collaboratively to produce
a listing of materials (equipment list) that will
be purchased, inspected, and shipped to a
construction yard for assembly into the offshore facility by a construction team. Each
discipline is an internal client to the part of the
company responsible for managing the companys supply chain, supply chain management, and each discipline has inherent differences that need to be recognized in order to
achieve an accurate, timely RFQ that can be
sent to vendors. For example, marine/naval
architecture can require use of vendors who
are specialized, small companies, and who
are asked to participate in a process whereby
designs are proven in a gated process. It is
important for SCM to recognize the partnership style of relationship that can be required
with such vendors, while ensuring that the
partnerships honor schedule requirements,
and also ensuring that the partnerships do
not overstep the boundaries required for a
healthy, competitive relationship.
SCM should have early involvement with its
internal business partners and with specific,
prospective vendors. This involvement may
require a level of product or specific supply
chain specialization (hull, mooring, topsides)
within SCM. Early SCM involvement can help
engineers minimize commercial obstacles that
can be associated with extremely long specification development periods, and sole source
vendor arrangements. Early SCM involvement can also help to recognize and satisfy
timing needs of interdependent specification
development across the companys various
engineering disciplines (i.e. the dependency
that electrical, instrumentation, and automation has on many other disciplines).
Defining equipment packages

Ideally, SCM will have worked as a catalyst
with engineering such that engineering produces the equipment list and specifications to
enable the RFQ in a timely fashion. However,
another step is often taken before the RFQ
is issued. SCM will work with engineering
management to rationalize the equipment list
against the capabilities of the vendors, and
the efficiency of managing the various purchase orders that will result from the equipment list. There are different terms used to
describe the outcome of this process. One
such term is the package list. The package list represents a bundling of equipment
intended for purchase from a single vendor.
It is a key activity to get right because it can
make or break the best, most perfect engineering effort. In some companies, the package list not only determines the equipment
to be bundled, but it also impacts the listing
of vendors who are qualified to bid, the level
of equipment inspection, and the personnel
resources that will be assigned to manage
the package, assuring its cost, schedule,
and quality. Transferring an equipment list
to a package list requires frequent, healthy
exchange between SCM and engineering in
order to avoid bundling of packages for administrative convenience at the expense of a
vendors true ability to provide all elements of
the bundle on schedule and on budget.
Perform a sanity check on plans to bundle
equipment that will be sourced from a single
vendor. Use a system that gathers input from
a collection of experts most familiar with the
technology and the potential vendors current capabilities and current shop capacities
(engineering, drafting, machining, assembly, and testing). Make an effort to obtain
feedback from someone with construction
expertise, especially if a bundled component
might be better sourced from a construction
yard rather than from a manufacturer.
Risk assessment
Risk assessments within both the EPC contractor and the project owner environments
are often owned at very high levels within
the major project teams, with SCM, among
others, taking specific actions to mitigate the
risk. This is a good practice, but can be flawed
if the ownership of risk assessment is not sufficiently pushed down into the project. When
ownership is pushed down into the project
organization the assessment of risk becomes
more of a continuous assessment rather than
a snapshot of risk at a given point in time. In
addition, it can drive the correct behaviors
within the people who are closest to the point
of being able to identify and mitigate the risk.
In fact, when risk management is not pushed
sufficiently down into the project organization,
it may not be apparent to those on the project
that everyone should be a risk manager, rather than an incident responder.

Vendor qualification systems can have the
same effect as high level risk assessments. They
are risk snapshots of the vendor at a specific
point in time, but may not be entirely effective
at identifying risk changes to the vendor which
occur after the snapshot. For example, has the
vendor recently decided to sub-contract major
components as a result of a make-buy decision? If so, what float is in the vendors schedule
to make repairs resulting from having to train
a new sub-vendor? Also, many supply chain organizations separate the individuals responsible
for qualifying the vendor from those who are
responsible for managing the vendor during the
execution of a purchase order. Again, this is a
separation of time and responsibility that can be
a threat to the schedule and budget for the equipment package.
Push ownership of risk assessments sufficiently down into the project organization,
inclusive of the supply chain organization. Risk
assessments within supply chain should not be
complex nor require special tools. Addressing
basic risk oriented questions about the vendor
during specific stages within the procurement
process can be sufficient. The key is to recognize the need, and institutionalize a process.
Quality issues
Quality issues abound in the oil and gas
equipment industry and their resolution can
occupy a lot of time for the supply chain professional, both internally and externally. The
following areas should be examined and reviewed closely.
Hazardous area electrical issues. Recent projects have provided quality challenges in terms of
package compliance to electrical and hazardous
area standards (explosion proof EX requirements). Nearly half of quality defects found on
equipment packages were related to EX issues.
These defects require remediation, and will likely delay the package schedule.
Put additional focus on packages that will
require hazardous area certification. Require
vendors to incorporate hazardous area inspection within the inspection and test plan. The
hazardous area inspection should be performed by a qualified COMPEX (competency
in explosion proof) inspector. Also, require the
vendor to train shop floor personnel to properly construct a cable gland connection.
Inspection. A typical project might involve
more than 500 purchase orders for major
equipment. The inspection and test plans associated with these packages might total more
than 2,000 inspections to occur at vendor facilities. Independent inspectors reside in various
global locations and typically avail themselves
to the market via third-party inspections agencies. Both EPC companies and project owners
will contract with the third-party agencies, and
the agencies will provide much of the inspection man-power for the 2,000-plus inspections.
When there are problems, they often can be
traced back to a miscommunication (quality
of information and timing), mismatch of an
inspectors skill set to the inspection requirement, or a deficiency in upholding a professional responsibility.
The value of using third-party agencies for
vendor surveillance, given practical limits on
project resources, is undeniable. However, the
challenge of thoroughly educating the third
parties about the package inspection needs,
and instilling just a small sense of ownership
so the inspector might look beyond what is
described in the work order is a major flaw in
any process that relies totally upon third-party
inspectors.
It is prudent to develop an in-house inspections team. In addition, supplement the in-house
team with processes that develop continuous
improvement with the third-party inspectors.
The positive schedule impact of an in-house
inspections team is that the team will minimize
the number of quality defects that would otherwise need to be fixed in a construction yard.
Control of vendor and sub-vendor quality. Vendor surveillance involves more than simply inspecting equipment when the EPC contractor or
project owner is given notification by the vendor.
It is essential to visit the vendors workshop in
order to positively identify schedule progress,
investigate vulnerabilities, and ensure that the
vendor has sufficient contingency to deal with
unexpected problems.
Frequent factory visits are essential to
check progress at both vendor and sub-vendor locations. The person given responsibility
for managing the vendor schedule within the
EPC or project owner companies should make
the visits, and ideally, such visits should not
be delegated to others. When done properly,
there is no substitute for the value of visiting
the vendor and sub-vendors. Also, there is no
substitute for the value of knowing what to
look for and how to conduct one-self while visiting a vendor factory.
Where there are package schedule delays,
a significant number of the delay occurrences
are due to quality defects from sub-vendors.
An analysis of schedule slippage among a selection of purchase orders suggests that the
vendors poor control of the sub-vendor can
represent up to 15% of the reasons associated
with delay. Gathering early intelligence of subvendor progress is required.
Ensure that vendor progress reports (including standard templates) provide sufficient
visibility of sub-vendor activity. Vendors subcontract many components. Quality control at
the sub-vendor level is often poor, and visibility of
sub-vendor problems can arrive late. The person
given responsibility for managing the vendor
schedule within the EPC or project owner com-
panies should work closely with schedule planners to decompose/analyze vendor schedules
and spotlight vulnerabilities before they occur.
Recognize that the person given responsibility for managing the vendor schedule within the
EPC or project owner companies may, in fact,
need to manage the schedules of multiple, corresponding sub-vendors. Projects need to plan
for sufficient numbers of personnel to perform
this deep level of vendor/sub-vendor management.
The right people

The final recommendation is arguably the
most important, because heeding the other
recommendations could be ineffective without the last recommendation. The final recommendation relates to the qualifications of
the people who are given responsibility for
managing the vendor schedules within the
EPC or project owner companies. Those who
are most successful in the role do not necessarily have identical backgrounds in terms
of roles/industries previously worked, or
educational achievement. Rather, the majority of them possess the knowledge, skills and
behaviors of good project managers.
Specifically, the following traits are important:
Establishes credibility with stakeholders
Accepts and continually establishes ownership of the package
Completely knowledgeable of the purchase order or contract
Influential
During negotiations, continually advocates for the buyer organization, but is
fair with vendors
Maintains healthy relationships at multiple levels within the vendor organization, but maintains professional distance
to ensure objectivity
Knowledgeable of the package and/or
vendor sufficient to anticipate and manage changes
Vigilant in regards to questioning the
vendors schedule
Communicates package progress to supporting staff and to the project management team
Resilient to handle the high pressure, demanding environment of a major project
Inspires others and recognizes their contributions.
It is the authors hope that the topics presented here will generate discussions and actions that will improve the offshore industrys
reputation for schedule achievement.
Acknowledgment
Based on a paper presented at the Society of Petroleum

Engineers Annual Technical Conference and Exhibition held on Sept. 28-30, 2015, in Houston.
SUBSEA
Industry project seeks to update

pipeline repair standards
Junkan Wang
Ali Mirzaee-Sisan
Jens Petter Tronskar

Dag yvind Askheim
DNV GL
oss of production time due to repair operations offshore can

equate to millions of dollars per day in lost revenue. As a result, pipeline live repair, i.e. repair operations without any
downtime, is an attractive option for operators, and is often
preferred since it yields considerable flexibility and is highly
opex-efficient. It is however, technically challenging.
Offshore pipelines are designed to last for more than 20 years, but
damage can prevent them from reaching their optimal design life. Damage to oil and gas pipelines can occur during installation or during the
operational stages. The Pipeline and Riser Loss of Containment (PARLOC) report published in March 2015 presents loss of containment
incidents that occurred on pipelines and risers on the UK continental
shelf (UKCS) during the 12-year period 2001 to 2012. The PARLOC
report mentions 183 loss of containment incidents of which 160 happened during operation. According to PARLOC, full descriptions of all
incidents are not available due to missing reported anonymous data.
These statistics differ in other parts of the world, but nevertheless highlight the importance of offshore asset integrity, and the need to access
the latest repair technology to respond when required.
During operation, damage can be caused by internal and external
corrosion, hydrogen-induced stress cracking (HISC), environmental factors such as unstable seabed conditions or seismic related
damage, and third-party impacts such as anchors and other dropped
objects. The risk of damage depends on many factors, but typically
includes the design of the pipeline, the environmental conditions,
and the intensity of adjacent human activities. Additional logistical
challenges also apply if the offshore repair operations involve isolating topsides on a production platform.
The extent of possible damage can vary from insignificant to a
fully buckled or parted pipeline, and governs the repair preparedness strategy. For extensive damage of large sections of the pipeline,
repair options are usually limited to cut and replacement using hot
tap and bypass technology with substantial opex implications due to
lost production time. For most local damage, such as external or internal corrosion and mechanical damage on a local scale (i.e. dents,
wrinkles, buckles or girth weld defects), repair methods that involve
minimal or no lost production time can be viable. These repair methods are collectively referred to as live repair.
Most subsea pipeline repair technologies involve fittings that can
be connected to the pipeline via mechanical means, such as couplings, clamps, T-branch connections, or by welding. Isolation plugs
are used to limit emptying volume of internal fluid and sea water
filling of the pipeline during the repair. Offshore repairs can also be
challenging and costly in terms of logistics. Most shallow-water repairs (down to 180 m/591 ft water depth in Norwegian waters) have
historically been performed by divers. In deeper waters, pipeline
repairs have to be conducted via remotely controlled technologies.
Qualification of such technologies and equipment requires in-depth
knowledge of the pipeline design parameters and operational experi-
Damage to oil and gas pipelines can occur during installation

or during the operational stages. (Courtesy DNV GL)
ence. To date, there are very few options for deep and ultra-deepwater pipeline repair.
DNV GL has served as an independent technical advisor on several pipeline repair projects in the past few decades, to enable live
pipeline repair without compromising on safety and integrity. The
company has developed a number of practical repair procedures and
a range of live repair solutions. These include plugging and grouted repair clamps for pipelines, and in-service welding of split-sleeves
and stand-off sleeves with internal gas containment for repairs on
leaking lines, grouted sleeves, and tees for pipelines.
Responsible for 170 world leading offshore standards and recommended practices (RPs), DNV GL is currently updating one of its leading
RPs for offshore pipeline repair DNV-RP-F113 through a fasttrack
joint industry project (JIP). The RP is widely referenced for the qualification of fittings and systems used for pipeline subsea repair and/or modifications and tie-ins. The guidelines include aspects relating to the design,
manufacture, installation, and operation of such fittings and systems.
However, the latest version of this RP was published eight years ago and
a number of new technologies have been developed since then. This new
JIP aims to capture the latest best practices, experiences, and expertise
from the main providers and operators of pipeline repair equipment and
tools, and to formalize pipeline subsea repair criteria and procedures into
an internationally recognized standard.
The new edition of the RP will be harmonized with the latest revision of the Offshore Standard, DNV-OS-F101, on subsea pipelines,
and will extend coverage to repair of clad and lined pipe, surface pipeline recovery, damage assessment, including root cause assessments,
inspection methods, criticality assessment, selection of mitigations
and repair methods for given damage levels, and lifecycle management of pipeline repair operations.
The new edition will also provide more guidelines on the safety
(including topside and landfall) and barrier philosophy related to offshore pipeline repairs, and will provide further assistance on considerations for post-lay ovality of the pipe, and test requirements after the
repair operation.
Other improved design and qualification guidelines will relate to
pipeline isolation plugs; sour service; high temperature/high pressure (HT/HP) pipeline repair; the lifetime performance of elastomeric seals; and acceptance criteria for possible effects on the pipeline surface from coating removal tools. It will also address updated
guidelines and acceptance criteria on hyperbaric welding, burst
capacity check for welding on in-service pipelines, and installation
aspects such as longitudinal seam weld removal.
FLOWLINES & PIPELINES
Asphaltene inhibitor prevents

deposition in long-distance tieback
Tim Garza
Baker Hughes
afely controlling and treating asphaltene deposition is a major flow assurance challenge in the offshore environment, where consequences and
remediation can be far more involved
and costly than onshore. For example, umbilical failures in a subsea system can lead to
unacceptable health; safety; environmental
and operational risks; unnecessary delays
and downtime; costly repair and replacement expenses; and deferred production.
These potential risks make it imperative
that deepwater fields be properly evaluated
for asphaltene deposition risks. If the risks
are properly identified, effective prevention
programs can be implemented.
Selecting an inhibitor
Key performance indicators (KPI) for the
successful chemical inhibition of asphaltenes
are the reliability, deliverability, and compatibility of the chemical application and its ability
to provide uninterrupted production for the
operator. First, the type of deposition must be
properly identified to determine what steps
need to be taken to inhibit the deposits before they can damage the wellbore, flowlines,
or other equipment or facilities. Following
deposition identification, a stringent qualification process is followed to select the optimal
chemical solution, based around the KPIs.
Use of qualified production chemicals is critical to maintaining safe, efficient operations
and to protecting many aspects of producing
assetsincluding personnel, the environment, facilities, and financial investment.
To develop a set of standards for subsea
chemical injection systems, Baker Hughes
collaborated with several operators, chemicals and fluids vendors, and industry trade
groups in the Blockage Avoidance in Subsea
Injection and Control Systems joint industry
project (JIP). The service companys deepwater-subsea certification process, which includes a rigorous 16-test protocol to qualify
chemistries for use in subsea umbilical applications, was built upon Specification 17TR6.
Two American Petroleum Institute (API)
standards were issued as outcomes of the JIP.
Recommended practices for the avoidance
of blockages in subsea chemical injection
systems were published in API specification
Baker Hughes says its subsea-certified chemicals

go through a rigorous 16-test deepwater subseacertification process to be qualified for use in
subsea applications. (Courtesy Baker Hughes)
17TR5, Avoidance of Blockages in Subsea

Production Control and Chemical Injection
Systems. Qualification standards for chemicals to be used in subsea chemical injection
systems were published in API Specification
17TR6, Attributes of Production Chemicals in
Subsea Production Systems.
Reliability of each chemical is substantiated by performing various stability tests,
which confirm that there will be no phase separation, gelling, or precipitation of the chemical under given thermal and pressure conditions throughout the application lifetime.
Low-temperature stability of the chemical is
tested to mimic the temperatures often seen
in the cold seabed environment, while hightemperature stability testing is performed to
demonstrate the upper temperature capabilities of a chemical. Extreme temperature fluctuations can occur during the transportation
and storage of chemicals to deepwater assets.
To further confirm a chemicals temperature cycling and stability, both short- and longterm, studies are performed to determine the
resistance of a chemical to phase separation
during thermal cycle stress over long periods
of time. The effect of pressure on the stability
of the chemical is also investigated under both
low and high temperatures to simulate lowtemperature umbilical and high-temperature
capillary deployment. This combination of
tests can provide a holistic view of subsea-certified chemical reliability under harsh deepwater temperature and pressure conditions.
Deepwater remediation
Recently, close collaboration between an operator working in the deepwater Gulf of Mex-
ico and Baker Hughes prevented asphaltene

deposition in subsea equipment, flowlines, and
surface equipment in a long tieback system.
The deepwater operator was faced with
potential asphaltene deposition in its subsea
equipment, flowlines, and surface equipment
from a well located in approximately 3,800 ft
(1,158 m) of water and tied-back to the host, a
tension leg platform approximately 16 mi (25
km) away. The well had a bottomhole pressure of approximately 10,000 psi (690 bar)
and produced a 38API gravity crude oil.
Oil samples were collected and sent to
a technology center in Sugar Land, Texas,
where saturates, aromatics, resins, and asphaltenes (SARA) analysis was conducted.
The percentages of these deposits in the
crude oil sample were determined using a
modified version of the Institute of Petroleum
Standards IP143/57 method. Results indicated that the oil contained approximately 1.3%
asphaltenes. From the SARA analysis, the
colloidal instability index of the crude oil was
calculated to be 1.27, indicating unstable oil
and validating deposition concerns.
Once the potential risks for asphaltene
deposition were understood, the process of
designing an appropriate asphaltene inhibition program began. This included selecting
an asphaltene inhibitor to be continuously
injected via a 5/8-in. capillary line through an
uninsulated umbilical along the 16-mi tieback,
where the seabed water temperature was approximately 40F (4.4C). To achieve optimal
inhibition, the inhibitor would be injected
down the capillary string before the fluids
could reach the asphaltene onset pressure. After extensive laboratory testing and modeling,
Baker Hughes FATHOM XT deepwater subsea-certified asphaltene inhibitor was selected.
A topsides plant trial was conducted to confirm that the asphaltene inhibitor would not
negatively impact the emulsion tendency of the
crude or water quality of the overboard water.
Following the successful plant trial, a full-scale
field trial was initiated. Continuous injection of
the inhibitor was introduced into the system at
an initial dose of 400 ppm. After treatment had
been established throughout the production
system, production volumes increased to an
average of 5,000 b/d of oil. Emulsion tendency
and water quality remained in spec, and the
system pressure profiles indicated that asphaltene deposition had been prevented with no
signs of deposition occurring.
CONFERENCE & EXHIBITION
Hosted by:
REGISTER BY JANUARY 4, 2016 AND

SAVE $115 ON FULL CONFERENCE REGISTRATION!
Where It All Comes Together

February 9-11, 2016 Moody Gardens Hotel & Convention Center Galveston, Texas USA
Preliminary Event Guide

Presented by:
Supported by:
Diamond Sponsor:
2016 Sponsors & Supporting Organizations
Hosted by:
DIAMOND SPONSOR
PLATINUM SPONSOR
GOLD SPONSOR /
OPENING NIGHT RECEPTION
GOLD SPONSOR /
WEDNESDAY LUNCH
SILVER SPONSOR /
WEDNESDAY NETWORKING RECEPTION
SILVER SPONSOR /
DELEGATE BAGS
BRONZE SPONSOR/WEDNESDAY
NETWORKING BREAKFAST
BRONZE SPONSOR/THURSDAY
NETWORKING BREAKFAST
HARLEY GIVEAWAY
SPONSORS
MEDIA SPONSOR
TOPSIDES, PLATFORMS & HULLS CONFERENCE & EXHIBITION 2016 PRELIMINARY EVENT GUIDE
2016 Advisory Board
Alec Johnson, PE
Petrobras
Advisory Board Chairman
and Senior Mechanical Engineer
Scott Key, PE
WorleyParsons
VP, Manager of Projects
Thomas Kolanski
BW Offshore USA
VP Business Development
Jonathan Brewer. PE
Stress Engineering Services
Senior Associate
Peter Lovie, PE
Peter M Lovie PE, LLC
Senior Advisor Floating Systems
James Britch, PE
UniversalPegasus
Project Director
Carlos Mastrangelo, PfMP

SBM Offshore
Senior Vice President, Proj and
Tech Development
David Brubaker
Shell Upstream Americas
Business Opportunity Manager
Mark Meunier
Kiewit Offshore Services
Vice President
Murray Burns, PE
Consultant
Loriana Morris, PE
KBR Inc.
Engineering Manager
David Castle
Hess Corporation
Project Advisor
Nathan Davidson
Williams
Business Development Manager
James Deaver, PE
Oil Field Development Engineering, LLC
Engineering Advisor
Tad Mulder
Cameron
Vice President Commercial
Kevin Raatz, PE
Technip
Offshore Business Development Manager
Jeff Rushing
Noble Energy
Contruction Engineer Advisor
Jeff Dice, PE, PMP

Consultant
Robin Dupre
Offshore
Conferences Editorial Director
William "Butch" Taggart, PE

Murphy E&P
Manager - Field Development
Renard Falcon, PE
Chevron
Facilities Manager
Maarten van Strien, PE, PMP

eni petroleum
Project Engineer
Ross Hancock
Anadarko Petroleum Corporation
Topsides Facilities GoM
Boyd Howell
MODEC International
Director of Sales
WWW.TOPSIDESEVENT.COM
Eric Wensel, PE
Wood Group Mustang
Offshore US Vice President
Operators Partner Program
Do you work for an operating company?

If you answered YES then your company qualifies for the Operators Partner Program!
Send an unlimited number of delegates to the Topsides, Platforms & Hull Conference & Exhibition for $2,000!
(Individual Full Conference Registration is $890)
Operators Partner Program Benefits Include:

Unlimited conference registrations, including (per attendee):
+ All conference sessions
+ Exhibit floor receptions
+ Delegate lunches
+ Exhibit hall access
+ Networking opportunities such as coffee breaks and continental breakfasts
As a participant of the Operators Partner Program, your company logo will appear in/on:
+ Show Guide
+ Event website
+ On-site signage
2015 Participants Included:
HOW TO REGISTER
1. Visit www.topsidesevent.com
2. Select Registration and download the Operators Partner Program Registration Form*
3. Complete the form and return by:
+ EMAIL registration@pennwell.com
+ FAX Direct: +1-918-831-9161 / Toll-Free: +1-888-299-8057
+ MAIL PennWell C&E Registration (Topsides)
P.O. Box 973059
Dallas, TX 75397-3059 USA
Operators Partner Program registration is checked to confirm applicant is from an approved operator in
order to qualify for discount
NEW EVENT MOBILE APP
DOWNLOAD NOW
With so much going on at this years event, weve made it easier

and more convenient for you to maximize your event experience.
1.
Search for and download the Topsides,
Platforms & Hulls mobile app.
Search for Topsides Platforms Hulls
in theApp Store or Google Play.
2.
Plan your entire day all from within the app.
Here you will find:
+ Conference information
+ An interactive floor plan
+ Exhibitor profiles
+ Special events
+ Events social feed
+ Favorites
+ Notifications/Alerts
+ Surveys
+ And much more... all in the palm of your hand!
Topsides, Platforms & Hulls Preliminary Conference Program

Tuesday, February 9, 2016
5:00 P.M. 6:30 P.M.
OPENING NIGHT EXHIBIT HALL NETWORKING RECEPTION

Sponsored by:
Wednesday, February 10, 2016

7:00 A.M. 8:00 A.M.
CONTINENTAL BREAKFAST FLORAL BALLROOM

Sponsored by:
8:00 A.M. 9:00 A.M.
OPENING PLENARY SESSION MOODY BALLROOM

ALL REGISTERED ATTENDEES
ARE INVITED TO ATTEND!
WELCOME & INTRODUCTION

Mark Peters, Vice President and Publisher, Offshore
Mark F. Peters is a Vice President of PennWell Publishing and Group Publisher of Offshore and Oil & Gas Financial
Journal. He has over 30 years of industry-related experience having been a publisher of a refining, petrochemical,
gas processing publication and a pipeline and gas industry publication. He is a frequent speaker addressing oil, gas,
refining and offshore issues and trends at seminars, conferences and users groups. His extensive travel schedule
includes attendance at major upstream and downstream meetings around the world. He holds a BA degree in
psychology from Brown University.
CHAIRMANS OPENING REMARKS

Alec Johnson, Advisory Board Chairman,
Senior Mechanical Engineer, Petrobras America Inc.
Alec Johnson earned a Bachelor of Science degree in Industrial Engineering in 1992 and a Master of Science degree
in Mechanical Engineering in 1994, both from Mississippi State University. Since 2007, Alec has worked for Petrobras as the lead mechanical engineer on the Cascade & Chinook FPSO project team. He has more than 20 years of
experience in the oil and gas industry working for various offshore engineering companies, OEMs, and major oil and
gas production companies.
KEYNOTE PRESENTATION
Preliminary Conference Program

9:00 A.M. 9:45 A.M.
COFFEE BREAK EXHIBIT HALL
9:45 A.M. 11:15 A.M.
SESSION 1: PROJECT EXECUTION/UPDATES MOODY BALLROOM
CHAIR: Murray Burns, Consultant

CO-CHAIR: Nathan Davidson, Business Development, Williams
STONES DEVELOPMENT - FPSO TURRITELLA WITH DISCONNECTABLE TURRET
Akhil Agarwal, Facilities Focal Point, Shell E&P Company
RAISING OF OFFSHORE PLATFORMS/LIMA FACILITY

John Greeves, Director of Technology, Versabar
PLUG REMEDIATION ON AN OFFSHORE FACILITY

George Bonin, Production Superintendent, Petrobras
11:15 A.M. 12:45 P.M.
LUNCH FLORAL BALLROOM

Sponsored by:
12:45 P.M. 2:15 P.M.
SESSION 2: LESSONS LEARNED MOODY BALLROOM
CHAIR: Jonathan Brewer, Senior Associate, Stress Engineering Services

CO-CHAIR: David Brubaker, Business Opportunity Manager, Shell Upstream Americas
FLARE GAS PIPING VIBRATION
Gyorgy Szasz, Staff Consultant, Stress Engineering
CHALLENGES OF DESIGNING, FABRICATING, AND INSTALLING DEEPWATER FIXED JACKETS

Gary Epperson, Structural Engineer, Oil Field Development Engineering
MAJOR MAINTENANCE FROM FLOTELS

Marc Wagner, Civil Engineer, Shell
Alternate:
COMPARISONS BETWEEN COMPUTATIONAL FLUID DYNAMICS AND

WIND TUNNEL TESTING FOR MODUS
Jorge Martinez, President, JLMLLM Consulting
2:15 P.M. 3:00 P.M.
COFFEE BREAK EXHIBIT HALL

3:00 P.M. 4:30 P.M.
SESSION 3 - TRACK 1: TOPSIDES DESIGN MOODY BALLROOM
CHAIR: William Butch Taggart, Manager Field Development, Murphy E&P

CO-CHAIR: Kevin Raatz, Offshore Business Development Manager, Technip
IMPACT LOAD ESTIMATION AT DRILLING RIG TIE-DOWN CLAMPS
Ali Ok, Associate II, Stress Engineering Services
CRUDE OIL SEPARATORS, LATE LIFE DEBOTTLENECKING

Wally Georgie, Principal Consultant, Maxoil Solutions Inc
GAS SEPARATION TECHNOLOGY TO INCREASE LOADS IN EXISTING FACILITIES

Dag Kvamsdal, Engineer Principal Sr, Cameron
Alternate:
HIGH PRESSURE WATER INJECTION PUMP DESIGN AND OPERATION

Martin Uere, Engineering Director, Sulzer
4:30 P.M. 5:45 P.M.
NETWORKING RECEPTION EXHIBIT HALL

Sponsored by:
3:00 P.M. 4:30 P.M.
SESSION 3 - TRACK 2: RISERS MOODY BALLROOM
CHAIR: Carlos Mastrangelo, Sr. Vice President, Projects and Technical Development, SBM Offshore
CO-CHAIR: Ross Hancock, Topsides Facilities GOM, Anadarko Petroleum Corporation
RISERS FOR FPSO IN HARSH ENVIRONMENT
Sherry Xiang, Principal Lead Engineer, SBM Offshore USA, Inc
DEEPSTAR QUALIFICATION PROGRAM OF SLWR TECHNOLOGY

Peimin Cao, Manager, Mooring & Riser Systems, SBM Offshore
PHILOSOPHY OF RISER CONCEPT SELECTION FOR AN FPSO APPLICATION:

AN OPERATORS PERSPECTIVE
Dr. Ruxin (Rex) Song, Staff Riser Engineer, ConocoPhillips
Alternate:
DEEPWATER RISER OPTIMIZATION DESIGN FOR FLOATING PRODUCTION SYSTEMS

Lixin Xu, Vice President of Floating Systems and Risers, UniversalPegasus International
4:30 P.M. 5:45 P.M.
NETWORKING RECEPTION EXHIBIT HALL

Sponsored by:

THURSDAY, FEBRUARY 11, 2016
7:00 A.M. 8:00 A.M.
CONTINENTAL BREAKFAST FLORAL BALLROOM

Sponsored by:
8:00 A.M. 9:30 A.M.
SESSION 4: OFFSHORE CONSTRUCTION MOODY BALLROOM
CHAIR: Mark Meunier, Vice President, Kiewit Offshore Services

CO-CHAIR: Scott Key, Vice President, Manager of Projects, WorleyParsons
CURRENT CHANGES IN RIG TIE DOWN REQUIREMENTS
Ramesh Maini, President/CEO, Zentech, Inc.
NEW TLP TENDON INTERMEDIATE CONNECTOR - DESIGN AND TEST

Alpha Mahatvaraj, Offshore Products Manager, GMC Inc.
PLATFORM LIFE EXTENSION

Eleni Beyko, Director, Technip
9:30 A.M. 10:15 A.M.
COFFEE BREAK - EXHIBIT HALL
10:15 A.M. 11:45 A.M.
SESSION 5: COST REDUCTION AND VALUE CREATION OPPORTUNITIES

MOODY BALLROOM
CHAIR: James Deaver, Engineering Advisor, Oil Field Development Engineering, LLC
CO-CHAIR: David Castle, Project Advisor, Hess Corporation
COST REDUCTIONS USING INTERNATIONAL CODES AND STANDARDS
Matthew Hill, Principal Facilities Engineer, Statoil Gulf Services LLC
EXMAR OPTI FPS - EXMARS EXPERIENCE WITH OPTIMIZED FPS DEVELOPMENT PROJECTS
David Lim, Managing Director, Exmar Offshore
AN OVERVIEW OF THE CURRENT ECONOMY

Richard Westney, Founder/Director, Westney Consulting Group
11:45 A.M. - 1:15 P.M.
LUNCH FLORAL BALLROOM
1:00 P.M.
HARLEY-DAVIDSON EXHIBIT FLOOR GIVEAWAY
1:15 P.M. - 2:45 P.M.
SESSION 6: PANEL DISCUSSION COST REDUCTION AND VALUE CREATION

OPPORTUNITIES MOODY BALLROOM
MODERATOR: Renard Falcon, Facilities Manager, Chevron

CO-MODERATOR: Murray Burns, Consultant
PANELISTS: Matt Hill, Principal Facilities Engineer, Statoil
Maria Pena, Stones Business Opportunity Manager, Shell
Richard Westney, Founder/Director, Westney Consulting Group
PRESENTATION OF SPEAKER AWARDS
2:45 P.M. - 3:00 P.M.
CHAIRMANS CLOSING REMARKS

$500 AMERICAN EXPRESS GIFT CARD DRAWING
Social Media
Use the official event hashtag!
#topsidesplatformshulls
/OilGasEvents
Show updates and stories
Pictures/Videos
Talk with colleagues
www.linkedin.com
(search for Oil & Gas, Offshore & Pipeline Events)
Discuss industry news

Engage with other professionals
Ask our editors questions
@OilGasEvents
Quick reminders
Event happenings/changes
Breaking news
Go to www.offshoreoilevents.com to follow Topsides, Platforms & Hulls today!

And use the official event hashtag! #topsidesplatformshulls
2016 Exhibitor List
AIMS INTERNATIONAL, INC.
626
AKER SOLUTIONS
615
ALE
421
ALFRED CONHAGEN INC
as of 10/12/2015
FREUDENBERG OIL & GAS

TECHNOLOGIES
914
QUALITY PRODUCT
FINISHING, INC.
1015
FZV AMERICAS
1110
RAMBOLL OIL & GAS US, INC.
917
1010
1115
RAYTEC SYSTEMS
827
ALLOY METALS AND TUBES

INTERNATIONAL, INC.
GALPERTI ENGINEERING AND

FLOW CONTROL USA INC.
621
GATE, LLC
314
SAACKE MARINE SYSTEMS
927
AMEC FOSTER WHEELER
715
GEORG SCHNEMANN GMBH
1111
SAFEZONE SAFETY
SYSTEMS, LLC
701
ANTLER SUPPLY SERVICES
1028
GIL AUTOMATIONS
112
SEATRAX
1009
APPLETON MARINE, INC.
202
SEAWAY HEAVY LIFTING
1211
APPLY CAPNOR US, INC.
509
SIEMENS WATER SOLUTIONS
919
APPLY EMTUNGA
426
STI MARINE FIRESTOP
200
AUDUBON ENGINEERING
415
STRAIGHTPOINT INC
628
AVEVA INC
709
215
BAKER HUGHES
802
STRATEGY ENGINEERING &

CONSULTING, LLC
BAYARDS USA LLC
1114
BECHTEL OIL, GAS &

CHEMICALS
1119
BERARD TRANSPORTATION
INC.
901
BLUEBEAM SOFTWARE
210
BOA MARINE SERVICES INC.
909
CAMERON
300
CANAL BARGE COMPANY INC.
900
CIVEO
1007
CLA-VAL
1006
CORTEC
720
COUGAR FUEL SYSTEMS
821
DANOS
321
DEANSTEEL MANUFACTURING
COMPANY
427
GLAMOX AQUA SIGNAL CORPORATION
921
GMC INC
1016
HB RENTALS
902
HELIDEX OFFSHORE LLC
209
HOLLOWAY HOUSTON
721
HOUSTON OFFSHORE
ENGINEERING
221
STRESS ENGINEERING
SERVICES
819
INTERGRAPH
309
TECHNIP
301
INTERNATIONAL PAINT LLC
115
TIGER OFFSHORE RENTALS
328
INTERTEK HI-CAD
1001
TRELLEBORG OFFSHORE
915
JACOBS
315
KBR
403
UNIVERSALPEGASUS
INTERNATIONAL, INC
620
KEYSTONE ENGINEERING
922
UTEC SURVEY INC.
800
LEECYN COMPANY
1008
VERSABAR INC.
609
LONESTAR MARINE SHELTERS
327
VIEGA
214
LTS ENERGY
801
W&O
908
M&H ENERGY SERVICES.
820
WILLIAMS
809
MACGREGOR
1014
WOOD GROUP MUSTANG
601
MACTECH OFFSHORE
1101
MAMMOET
409
MCDERMOTT
308
201
DEKKER VACUUM
TECHNOLOGIES, INC.
916
MECH-TOOL
ENGINEERING LIMITED
DK-LOK
1104
MECO
306
DYNAMIC INDUSTRIES, INC.
515
NORTH AMERICAN GRATING
1022
ECL
320
EDG, INC.
805
NOV COMPLETION &

PRODUCTION SOLUTIONS
228
ENDURO
318
OGLAEND SYSTEM US LLC
322
ENERSYS
1011
ENVIRO-TECH SYSTEMS
823
ESGARD, INC
923
ESP SAFETY INC.
904
EVOQUA WATER
TECHNOLOGIES LLC
727
OIL STATES INDUSTRIES, INC.
815
PENNWELL
1230
PHAROS MARINE AUTOMATIC

POWER
828
POLE STAR MARITIME, LLC
217
PREFERRED ELECTRIC INC
826
Registration Information
REGISTRATION: NOW OPEN!
Registering for Topsides, Platforms & Hulls 2016 is easy! Consult the table below to decide
which registration option is right for you the full conference option offers the best value.
SPECIAL OFFER!
ATTENDTOPS
SAVE $115
4 WAYS TO REGISTER TO ATTEND

1. ONLINE:
2. E-MAIL:
4. FAX:
3. MAIL:
registration@pennwell.com
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IS RIGHT FOR YOU?
Topsides, Platforms
& Hulls 2016
Registration Department
PO Box 973059
Dallas, TX 75397-3059
Full
Conference
Delegate
Exhibitor Full
Conference
Delegate
Direct: +1-918-831-9161
Toll-Free: +1-888-299-8057
Exhibitor
Visitor Only
Student
Conference
Delegate
(student I.D.
required)
Early Bird Registration Pricing - registration on or before 1/4/16
$775
$450
$35
$50
Registration price on or after 1/4/16
$890
$545
$35
$50
Opening Plenary Session

Exhibit Hall Entrance
Conference Session Access
Networking Reception Tuesday
Networking Reception Wednesday
Continental Breakfast Wednesday
Continental Breakfast Thursday
Coffee Breaks
Delegate Lunch Wednesday
Delegate Lunch Thursday
CORPORATE PLANS
Interested in sending a group to Topsides, Platforms & Hulls 2016? Send 5 or more delegates
and receive substantial savings. Contact our registration department now for more details.
REGISTRATION DEPARTMENT
Direct: +1 918 831 9160

Toll Free: +1 888 299 8016
BUSINESS BRIEFS
People
The Electromagnetic Geoservices ASA
board of directors has appointed Christiaan
A. Vermeijden as CEO.
Kevin Gallagher has resigned as CEO and
managing director of Clough.
Jeremy D. Thigpen, Transoceans
president and CEO, has been elected to the
companys board of directors.
Ziebel has named Francis Neill as CEO.
Anadarko Petroleum Corp. has appointed
Mitchell W. Ingram as executive vice president, Global LNG.
Wood Group Mustang has promoted Kent
McAllister to president, Offshore Business
Unit.
Royal Dutch Shell plc has
appointed Maarten Wetselaar as Integrated Gas director, effective Jan. 1, 2016.
Le Bon Asia Singapore
has appointed Edmund
Chik as CEO.
Saudi Total, a joint venture
Chik
between Zahid Group and
Total, has named Hisham
Atalla as general manager.
R. Bradley Forth has
joined Northern Offshore
as senior vice president and
CFO.
KBR has appointed Ann
Pickard to its board of direcForth
tors.
Kongsberg Maritime has appointed David
Wilson as business manager for the Offshore
Production division.
Sonardyne International Ltd. has named Robin
Bjory its new managing
director. He succeeds John
Ramsden who leaves the
position after six years in
charge to return to Singapore
Bjory
following a transition period.
Robert E. Beauchamp has resigned from
the National Oilwell Varco board of directors.
William R. Thomas has been appointed to the
companys board of directors
Sir Patrick Brown, chairman of the Oil
and Gas Authority, has confirmed the appointment of three non-executive directors to the
OGA board: Mar y Hardy, Frances MorrisJones, and Robert Armour.
ACE Winches has appointed Richard Wilson as COO and Hayley Yule as marketing
and communications director.
Antony Croston, drilling and wells manager for Wood Group Kenny in the Americas,
has received the title of Institution of Mechanical Engineers Fellow.
Exova has hired Paul Barr y as managing
director for Europe and a member of its Group
Executive Committee.
In Memoriam
Peter Cantu, a
PennWell Petroleum
Events, exhibit and
sponsorship sales
manager, passed away
on Oct. 26, 2015. He
was 49. Peter worked
at PennWell for eight
years. Survivors include his mother, Olga
Perez Cantu; four siblings; nine nieces
and nephews; and his beloved dogs,
Jack and JJ Cantu. He was a member
of Our Lady of Guadalupe Catholic
Church in Rosenberg, Texas. His hobbies included playing golf, traveling,
hunting in South Texas, participating in
the Porsche Car Club, spending time at
his property in Kendleton, and supporting his nieces and nephews in their
endeavors.
Forum Subsea Rentals has promoted Nicki
Nicholls to global business director. Christian Blinkenberg has been appointed global
sales and marketing director of the companys
Global Services division.
Oilgen has hired Bruce Blanche and
Richard Bunt as independent consultants.
Company News
Weatherford International plc has
launched its Production Optimization Consulting group. Its services integrate cyclical
optimization solutions to enable proactive well,
reservoir and asset management.
Beach Energy Ltd. and Drillsearch
Energy Ltd. have entered into a binding
merger implementation agreement whereby
Beach has agreed to acquire all of the shares
in Drillsearch that it does not already own. In
combination, the merger creates an oil and
gas company on the ASX, with a market capitalization of approximately $1,169 million. The
transaction is subject to the approval of Drillsearch shareholders at a shareholder meeting
expected to occur in late January 2016, as well
as court approval and other conditions.
Energy Software Intelligence Analytics
has acquired Richmond Energy Partners
Ltd.
Global Tubing LLC has delivered its
second record-breaking coiled tubing string to
the Port of Houston where it awaits transport
to the Middle East. The new 2.375-in. (60.325mm) diameter string weighs more than
136,000 lb (61,700 kg) at a continuous length
of more than 30,000 ft (9,144 m).
JDR has expanded its facilities with PD
Ports in Hartlepool, UK. The companys presence now includes three adjoining warehouses
for manufacture and storage at the port,
totaling more than 280,000 sq ft (26,013 sq
m). The space will house a new high-capacity

horizontal helix lay-up machine to manufacture umbilicals. It also will provide storage for
6,000 metric tons f equipment.
The TGS Geological Products division has
purchased Digital Petrodata LLC.
Sandvik has opened its South American
hub in Rio de Janeiro. The new Sandvik
Materials Technology facility consists of a
control lines service center, sales hub, and
warehouse.
Eni has agreed to sell a 12.5% stake in
Saipem to Fondo Strategico Italiano (FSI).
At the same time, Eni and FSI entered into a
shareholders agreement defining the term of
engagement governing the relations between
parties as shareholders of Saipem. In addition, Eni acknowledged Saipems intention to
achieve financial independence.
Unique Group has acquired Oceanwide
Safety at Sea.
Royal IHC has acquired Fraser Hydraulic
Power, a designer and builder of equipment
for laying subsea cables and umbilicals. FHP,
based in Newcastle, northeast England, develops tracked engines and tensioners, cable
carousels, and drum handling systems. The
company recently opened 28,000-sq ft (8,534sq m) premises at the Neptune Energy Park in
Walker, Newcastle.
Harris CapRock Communications has
received a contract extension for satellite and
remote communications services. The contract
includes the transition to Harris CapRocks Advanced VSAT network for three oil production
platform sites in the Gulf of Mexico.
Sparrows Group and Norwegian firm OptiLift have formed a strategic partnership to
deliver robot vision laser technology that aims
to improve the up-time of lifting operations. As
part of the agreement, Sparrows Group will
distribute, install, and maintain the Motion
Reporter on behalf of OptiLift.
Following a year-long collaboration between
Saudi Aramco, Huawei, and King Fahd
University of Petroleum and Minerals, the
Huawei Oil and Gas Joint Innovation Center
has been established at Dhahran Techno Valley.
Verisk Analytics has acquired Infield Systems Ltd. The analyst firm will become part
of Wood Mackenzie, which Verisk acquired
in March.
Hansen Protection will supply Statoil several thousand survival suits for its operations
offshore Norway over the next seven years.
The agreement carries an optional extension
until 2026. The suits will be used at all Statoils
helicopter bases in Norway.
Coretrax has opened its fifth Middle East
base within four years, in the Al Rai area of
Kuwait.
Le Bon Manufacturing has opened a
new branch in Singapore: Le Bon Asia
Singapore.
WORLDS LARGEST SUBSEA EVENT FOR 16 YEARS
SUBSEATIEBACKFORUM.COM
Hosted by:
The subsea tieback forum addresses new operational issues, challenges, and solutions associated with global
deepwater subsea operations. Dialog among strategic decision makers is facilitated through focused presentations,
extended question and answer sessions, and networking. This exchange of knowledge represents experiences,
applications, and current, real-world project examples.
This forum, coupled with an exhibit hall floor that displays more than 250 companies showcasing their products and
services, makes this an event you cant afford to miss.
MARCH 22-24, 2016 HENRY B. GONZALEZ CONVENTION CENTER SAN ANTONIO, TX

Presented by:
Supported by:
OIL, GAS
&petrochemequipment
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SILVERA MEDIAREP
Viale Monza, 24 - 20127 Milano, Italy
PHONE +39 (02) 28 46716 FAX +39 (02) 28 93849
Ferruccio Silvera info@silvera.it
JAPAN
e.x.press Co., Ltd.
AIOS Gotanda 606, 1-10-7 Higashi-gotanda
Shinagawa-Ku, Tokyo 141-0022, Japan
PHONE +81 3 6721 9890 FAX +81 3 6721 9891
Masaki Mori masaki.mori2@ex-press.jp
A
Aker Solutions .......................................... 9
www.akersolutions.com
Arc Advisory Group ................................ 27
www.arcweb.com
B
Baker Hughes ........................................... 7
www.bakerhughes.com
C
CO.L.MAR S.r.L ....................................... 38
www.colmaritalia.com
Crowley Maritime Corporation................. 1
www.crowley.com
D
Dril-Quip ................................................. C3
www.dril-quip.com
G
GE Oil & Gas ........................................... 11
www.geoilandgas.com
K
KBR ......................................................... C4
www.kbr.com
Kobelco / Kobe Steel Ltd ....................... 25
www.kobelcocompressors.com
FOR ASSISTANCE WITH MARKETING

STRATEGY OR AD CREATION, PLEASE
CONTACT:
PennWell Marketing Solutions
Vice President: Paul Andrews
PHONE +1 240 595 2352
EMAIL pandrews@pennwell.com
T
T.D. Williamson ....................................... C2
www.tdwilliamson.com
Thermamax GmbH.................................. 15
www.thermamax.com
M
M&D Industries of LA, Inc. ..................... 19
DrillLab.com
N
National Oilwell Varco ............................ 23
www.nov.com
National Oilwell Varco ............................ 31
www.nov.com
W
Weatherford............................................... 5
weatherford.com
Wood Group Mustang ............................ 21
www.mustangeng.com
The index of page numbers is provided as a service.

The publisher does not assume any liability for error or omission.
Find the answers to your subsea

pipeline questions in one book!
Industry veterans Andrew Palmer and Roger

King, two of the worlds most respected
authorities in subsea pipeline engineering,
have updated their defnitive reference book.
NOW
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NIGERIA/WEST AFRICA
Flat 8, 3rd floor (Oluwatobi House)
71 Allen Ave, Ikeja, Lagos, Nigeria
PHONE +234 802 223 2864
Dele Olaoye dele.olaoye@q-she.com
BRAZIL
Centro Empresarial Mourisco
P. Botafogo 501 / Sala 101
Torre Po de Acar, Rio de Janeiro 22250-040
PHONE +55 21 2586 6302
Deny Tenenblat denyt@PennWell.com
S
Schlumberger ........................................... 3
www.slb.com
Shaw Pipeline Services.......................... 29
www.shawpipeline.com
V
Vallourec.................................................. 17
www.vallourec.com
Variable Bore Rams, Inc. ........................ 13
www.vbri.com
SOUTHEAST ASIA AUSTRALIA

13 Langrune Grove,
Port Kennedy, WA, Australia 6172
PHONE +61 8 9593 4405 or +61(0) 437 700 093
FAX +61 8 9593 3732
Mike Twiss miket@pennwell.com
INDIA
Interads Ltd., A-113, Shivalik, New Delhi 110 017
PHONE +91 11 628 3018 FAX +91 11 622 8928
Rajan Sharma rajan@interadsindia.com
P
PennWell
Offshore West Africa
Conference & Exhibition ................... 14
www.offshorewestafrica.com
PennWell Books............................. 8, 38
www.PennWellBooks.com
Subsea Tieback
Forum & Exhibition............................ 62
www.subseatiebackforum.com
Topsides, Platforms & Hulls
Conference & Exhibition ..............49-60
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BEYOND THE HORIZON
Market downturn presents

opportunity to break down silos
The cyclic nature of the upstream oil and gas industry is nothing
new. When the supply/demand balance is favorable and drilling and
production activity is robust, it is a great business to be in. However,
during a global upheaval, the industry contraction can be devastating
in disrupting careers, lives, and families. Like Sarah Connor in the
Terminator movie, we have to believe there is No Fate that a company has to be vulnerable to the vicissitudes of the market. Companies
in our industry can take action to stay strong, and weather the storm.
In 1987, in the midst of what would be a decade-long downturn, this
author joined with two like-minded colleagues to form Mustang Engineering (now Wood Group Mustang). At the time, we were all employed
but had witnessed how owners, engineering, construction and service
companies were shrinking severely. They were dismissing experienced,
dedicated, and talented employees who had been instrumental in building their companys reputation and success. It was not easy even for
those who remained, as they were constantly assessing their position and
facing the uncertainty of continuing project work. There was little trust
among management and employees as profit margins trumped loyalty.
During the past year, the industry has been suffering from a global
market downturn which bears strong similarities to the situation that
existed in the 80s. Whereas, the earlier contraction caused one-half
million or more workers to relocate from Texas back to the north, at
last count, the industry has decreased its workforce by almost 200,000
people this time. While it is true that there are, perhaps, more global
influences, extreme technological breakthroughs, and competitive factors today than there were back then, the dynamics of operating in this
climate still revolve around the same need people and teams.
The impact of this cyclicality begs the question, How can we strengthen our industry so that it will protect its future during volatile times?
The industry is made up of many silos including workers, management, the company, clients, suppliers and contractors. In downturns,
each silo becomes focused on its own survival and tends to look at every
situation as win-lose because there is not enough space left for winwin relationships. For through-cycle growth, we have to make space
for win-win treatment of each other during the cycles, by busting these
natural silos and working together. A downturn means there is a lot of
change and change means there is opportunity to use silo-busting skills
to improve relationships and create a culture for better work execution.
We created a silo-busting culture based on communication, teambuilding, transparency, and trust built on performance.
The bedrock this culture was built upon was creating win-win relationships between these potential silos and welding them into high-performance integrated teams. This same hero-making culture helped move
the upstream industry from shallow-water fixed platforms to the spaceage technologies required for deepwater development worldwide in the
short span of 12 years. This culture had four key components.
Taking care of people. Companies can employ all the slogans they
want. They can tout their quality and innovation. If they cannot retain
their key employees, though, their reputation and competitive capabilities will surely suffer. A way we found to be highly successful was to create a clan. Each Mustanger was treated fairly and their family members
were included in our many teambuilding activities and events.
We did not lose people in the good times, and we did our best to
retain every productive worker during the slow times by taking on different types of projects or creating new innovations. We also created
projects by showing clients how much they could save by doing a project during a downturn when quality resources were availableessentially out of cycle projects. We pulled together as a tighter team to
chase work with more people, and worked on innovative ways to be
more competitive. One key step here was to eliminate the waste that
inevitably builds up through the hundreds of handoffs, in the typical
engineer-procure-construct schedule.
Creating a win-win environment. Trust is imperative in building relations between client and contractor. Our philosophy was based on demonstrating project performance that was efficient and innovative, while
at the same time passing cost savings onto the client. We helped move
the industry from lump-sum/win-lose contracting to reimbursable time
and material contracts awarded based on solid project definition. We
went out of our way to quantify value on every project and avoid surprises. In tough times when everyone is looking for an edge, it is even
more critical to have worked with the client on the same side of the table
in a reimbursable fashion. Capabilities in the industry change quickly
in downturns as resources disappear, and the team has to figure out
the best way to deliver the project in the current industry environment.
Building a talent base. The oil and gas industry is still rebounding from
the dearth of petroleum engineering graduates in the 90s who eschewed
that discipline after recognizing its vulnerabilities. Today, there are many
opportunities to fill the void between knowledgeable experts and novice engineers. We initiated a Young Guns program in the mid-nineties
which gave recent graduate engineers immediate chances to contribute
on a project under the tutelage of a seasoned veteran. This proved to be
highly successful in increasing productivity while grooming future leaders. A high percentage of Young Gun grads have gone on to hold key
leadership roles within the company. They continue to drive the culture.
Making heroes. Nothing creates close bonds better than successful results. By setting up positive experiences with vendors and other
project partners, close relationships are formed. Heroes are created
in the clients eyes, realizing that they have a proven team that can be
counted on to work together on future projects. Repeat work creates
stronger teams across all silos, and has to be the goal.
William G. Higgs
Author, Mustang: The Story

Founder, Mustang Engineering, Inc.
This page reflects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore
Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at davidp@pennwell.com.
Realize Peace Of Mind
When you choose a DRIL-QUIP Wellhead System

Setting the standards for safe, reliable and fully validated subsea wellhead systems
enables DRIL-QUIP to deliver peace of mind.
We are committed to providing the most dependable subsea wellheads in the industry. The company utilizes
technologically advanced design practices consistent with industry standards for design verification and system
level analysis. We have taken the process one step further our design integrity check includes physical
system validation testing in accordance with API Technical Report 1PER15K-1 recommendations. Our subsea
wellhead systems are compliant to the latest editions of API 17D and API 6A (PR2). DRIL-QUIPS BigBore II-H
subsea wellhead casing hanger and seal arrangement is now qualified to API 6A Appendix F Group 4 dynamic
test requirements. The knowledge obtained through this process enabled us to develop the next generation
35-inch mandrel wellhead system, suitable for HPHT applications. This wellhead system, with a new and highly
engineered wellhead profile, provides sufficient structural capacity and fatigue resistance to meet industry
needs for future decades of drilling and production.
Our Quality Management System utilizes Advanced Product Quality Planning (APQP) methodology to ensure
design and process tasks produce reliable, quality wellhead components each and every time.
For more information please contact your local DRIL-QUIP representative.
setting industry standards
DRIL-QUIP, Inc.
Validation testing of a subsea wellhead system

in DRIL-QUIPS horizontal test machine
ITS WHAT WE DO, SINCE 1947
Meeting
Todays
Market
Challenges
Top down, bottom up,
near shore, offshore or
in deep water elds
Our comprehensive, integrated solutions help our clients minimize

risk and succeed. From topsides to subsea installations, greeneld
or browneld, through our subsidiaries, GVA, Granherne, Energo and
strategic alliances with other industry leaders, KBR provides high-value,
reliable, integrated services and unmatched expertise for your offshore
projects. No matter where in the world your opportunities may take you,
KBR is there, helping you commercialize discoveries and capitalize on
your valuable energy assets.
www.kbr.com
K150
KK1
1150
55002233 220
201
00115 KKBBR.
R. All Riight
ght
ggh
hhtts RReesse
serv
eerv
r eedd
rv
OFFSHORE
KBR is proud to have worked on

Jack St. Malo, a Top 5 Offshore
Project of the Year.

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Copyright 2015 T.D. Williamson, Inc.

Marine solutions experience matters.

Celebrating 60 Years of Trends, Tools, and Technology

MIDDLE EAST AND NORTH AFRICA

Mellitah details plans to unlock

Spar platform proves successful

Delta House FPS is a first of its kind ...................................... 34

Subsea compression prolongs

GEOLOGY & GEOPHYSICS

DRILLING & COMPLETION

In mid-September, the worlds first subsea compression station began

At a recent presentation in London, Technip outlined some of the

Perla marks first gas field to enter

Understanding the causes of equipment schedule delay is essential

Cardn IV S.A., a 50/50 joint operating company between Repsol and

Vendor partnerships key to optimizing

Rock-optimized PowerJet Nova charges

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Vessels, Rigs, & Surface Systems ...... 22

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Drilling & Formation Evaluation

Completion & Stimulation

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Revolutionize your subsea pipeline inspection

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Change how you see

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Select projects earn special recognition

Deepwater Petroleum Exploration

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