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    McDermott Win Subsea Installation Jobs in Gulf of Mexico (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    McDermott International, Inc. has been awarded a contract to transport and install subsea umbilicals, manifolds, jumpers and flying leads for Chevron U.S.A. Inc. to support the brownfield expansion of the Jack and St. Malo fields in the U.S. Gulf of Mexico.The value of the award is included in McDermott’s first quarter 2015 backlog.“This will be the second subsea project in the Jack and St. Malo fields that McDermott has carried out for Chevron, which demonstrates confidence in our ability to install subsea facilities in such challenging deepwater environments,” said Scott Munro, Vice President, Americas, Europe & Africa.“McDermott successfully installed some of the industry’s largest and most complex umbilical end terminations in 7,200 feet of water, as part of the fields’ original development last year.”McDermott’s subsea construction vessel, North Ocean 102, is expected to transport and install 30 miles of umbilicals and associated flying leads. The final jumper assembly is scheduled to be completed at McDermott’s Gulfport Spoolbase in Mississippi prior to installation by McDermott’s Derrick Barge 50 utilizing its deepwater lowering system.According to McDermott, the installation campaign is expected to start in the second quarter of 2016.The Jack and St. Malo fields are located within 25 miles of each other in the Walker Ridge area of the U.S. Gulf of Mexico, approximately 280 miles south of New Orleans, Louisiana. First oil and natural gas production was achieved in December 2014.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Subsea 7 Extends ‘Normand Seven’ Charter (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    Subsea 7 has extended a charter for one of Solstad Offshore’s vessels. The contract extension is for the ‘Normand Seven’ construction vessel.The one year extension will become effective starting September 2015. This is the first of a total of five yearly options.Solstad, the ship owner based in Norway, did not reveal financial details of the deal but said that “the extension is done under present terms and conditions.”The 130m long Normand Seven is a construction / flexlay (horizontal) vessel fitted with an advanced flexible pipelay system capable of operating in water depths of up to 2,000m with a top tension capacity of 300t. The vessel was delivered in 2007 by Ulstein Verft in Norway.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    OPEC Output Hits Highest since October (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    OPEC oil supply has jumped in March to its highest since October as Iraq's exports rebounded after bad weather and Saudi Arabia pumped at close to record rates, a Reuters survey found, a sign key members are sticking to their effort to regain market share.The increase from the Organization of the Petroleum Exporting Countries adds to excess supply in the market, despite some signs that the halving of crude prices since June 2014 is encouraging higher oil demand.OPEC supply has risen in March to 30.63 million barrels per day (bpd) from a revised 30.07 million bpd in February, according to the survey based on shipping data and information from sources at oil companies, OPEC and consultants."Demand might be a bit stronger than expected at the beginning of the year, but I don't think it is strong enough to absorb the entire oversupply," said Carsten Fritsch, an analyst at Commerzbank in Frankfurt. "There's still oversupply in the market, which is reflected in the inventory builds."Besides Saudi Arabia, the main reasons for the rise are the resolution of involuntary outages - Iraq lifted exports due to improved weather and Libya managed to nudge production higher despite unrest.If the total remains unrevised at 30.63 million bpd, March's supply would be OPEC's highest since 30.64 million bpd in October 2014, based on Reuters surveys.Saudi Arabia was the driving force behind OPEC's refusal last year to prop up prices by cutting its output target of 30 million bpd, in a bid to discourage more costly rival supplies. The group holds its next meeting in June, and comments from OPEC officials suggest it will not alter the policy.In March, the largest increase has come from Iraq, whose southern oil exports recovered following bad weather that delayed tanker loadings, according to shipping data and industry sources. Northern exports were slightly lower.Based on this survey, Iraq's exports have come close to December's record high of 2.94 million bpd, depending on whether tankers at the southern ports on earlier on Tuesday actually depart in March. Iraq was hoping to reach 3 million bpd of exports this month.Saudi Arabia has increased output to within a whisker of 10 million bpd on average in March, sources in the survey said, due to higher demand from export customers and an increased local requirement in new oil refineries."The Saudis say they are responding to higher demand and I tend to believe that, looking at the strong refining margins in Singapore," said an oil consultant. Margins are well above the annual average in Asia, which buys the bulk of Saudi Arabia's exports. Saudi Oil Minister Ali al-Naimi said on March 22 output was "around" 10 million bpd. The highest known Saudi output is 10.05 million bpd in 2013, according to figures from the U.S. Energy Information Administration.Of countries with lower output in March, the biggest decline was in Angola, partly due to a force majeure on exports on BP's Saturno crude stream. OPEC's other West African producer Nigeria also exported fewer cargoes in March.Source: www.reuters.comPlease leave comments and feedback below

    Oil Drops to $55 as Iran Nuclear Talks Intensify (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    Brent crude oil dropped towards $55 a barrel on Tuesday as Iran and six world powers entered a final day of talks over a nuclear deal that could see the energy-rich country increase oil exports to world markets.With a self-imposed deadline set for the end of the day, the United States, Britain, France, Germany, Russia and China ramped up the pace of negotiations with Iran in Switzerland over an outline deal on Tehran's nuclear programme.Disagreements on enrichment research and the pace of lifting sanctions remained as hurdles that could scupper a deal to end a 12-year standoff between Iran and the West.Russian Foreign Minister Sergei Lavrov told reporters in Moscow he believed the talks had a good chance of success."The chances are high. They are probably not 100 percent but you can never be 100 percent certain of anything," Lavrov said.Western diplomats however played down expectations for the talks in the Swiss city of Lausanne.Brent LCOc1 was $1.14 lower at $55.15 a barrel by 1335 GMT and was heading for a monthly drop of around 12 percent. U.S. crude CLc1 was down 67 cents at $48.01 a barrel.Both benchmark contracts were heading for a third consecutive quarter of declines.Oil prices extended two days of falls as investors said a deal in Lausanne could lead to an increase in Iranian crude supply to a market already oversupplied due to U.S. shale production."If the flood gates to Iranian crude open, (prices) will probably test this year's lows again," Daniel Ang, analyst at Singapore-based brokerage Phillip Futures, told Reuters Global Oil Forum.Iran could increase oil production by around 500,000 barrels per day (bpd) within six months if sanctions are removed, and by an additional 700,000 bpd within another year, according to estimates by Facts Global Energy.Western sanctions have limited Iranian crude oil exports to around 1 million bpd, and shipping sources say Iran is storing at least 30 million barrels of oil on a supertankers.BNP Paribas nevertheless did not expect a large increase in Iranian oil exports."Whether or not there is a deal, we do not expect a flood of oil on the market as consequence. Which sanctions will be lifted and the uncertainty in the timing of lifting suggest that Iran will not be in position to significantly add to the current oversupply in the market," BNP chief oil and commodities strategist Harry Tchilinguirian told Reuters Global Oil Forum.Oil prices came under further pressure after a Reuters survey showed OPEC oil supply had jumped in March to its highest since October as Iraq's exports rebounded after bad weather and Saudi Arabia pumped at close to record rates, a sign key members are sticking to their effort to regain market share.U.S. commercial crude oil stocks are likely to have risen by 4.2 million barrels last week to a record high for a 12th week, a Reuters poll showed ahead of weekly data by the American Petroleum Institute.Source: www.reuters.comPlease leave comments and feedback below

    Oil Price on the Rise Towards 2020 (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    Oil prices are set to rise on average US$10 a barrel annually towards 2020, with global liquids supply and demand balancing out in around two years, according to Oslo-headquartered oil and gas consulting and business intelligence firm Rystad Energy.At an oilfield services information session in Aberdeen last week (25 March), senior analyst Audun Martinsen told an audience of 25 delegates the increases were necessary to realize sufficient investment and production to meet the global demand increase of around 1 MMbbl/d outlined in the International Energy Agency’s World Energy Outlook 2014.“[Our forecast shows] the market will balance itself in 2017 and 2018, and in 2016 we will close the gap [between supply and demand],” he says. Martinsen adds supply is projected to slow towards the end of the decade, before increasing again.The main sources of growth between 2014 and 2025 are likely to be offshore developments, shale and tight oil plays, as well as oil sands.He says data from exploration and production companies that provided guided numbers for this year showed an average 17% investment reduction across all segments from $372 billion in 2014 to $311 billion, with the biggest cut of 34% for those exposed to shale and international activities.Total spending on oilfield services in 2015 is likely to be 13% lower at around $825 billion, compared with $950 billion last year.Martinsen says: “The market is already slower, but we expect it to gradually improve in 2016 and be back to its usual pace in 2017, with prices around $80 a barrel.”He adds, comparing regional oilfield service market growth: “North America will be hit hardest in 2015, going down 25% in spending with a 35% reduction in well services; however, if we believe the oil price will increase $10 in 2016, this will initiate more investment in the region… long term, if our prognosis is right, we expect the US market to be back to normal with around 15% growth in 2017 and 2018.”He says the European market would see a 15% drop in growth in 2015, adding over the next two to three years, large field developments, such as Statoil’s Mariner, will spark new investment.And for the UK, Martinsen says tax cuts proposed in Chancellor George Osborne’s budget earlier this month could herald a 20% increase in free cash flow for exploration and production companies in five years’ time: resulting in an increase in activity of between 10% and 20%.He says South American oilfield service growth figures, now expected to decline around 10% in 2015 and 2016, were revised down due to the Petrobras corruption scandal and, from an African perspective, Angola would be “hit hard” as companies delay deepwater project investments in the short term, before ultimately returning to reinvest. Source: www.oedigital.comPlease leave comments and feedback below

    Maersk Starts Production at New Unmanned Tyra Platform (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    Maersk Oil has informed that production has started from the new unmanned platform Tyra Southeast-B, located in the Danish North Sea.According to Maersk, the platform is expected to add reserves of 50 million barrels of oil equivalent (BOE) over the next 30 years to Danish production.“The Tyra Southeast extension is a great example of how we extract value from the Danish North Sea by combining intricate knowledge, long-term investments and the right technical capabilities. Over the next three decades, the new platform will add both oil and gas to our production.“This is an important step in Maersk Oil’s growth journey and it demonstrates that Denmark continues to be a core area for us,” said Maersk Oil CEO Jakob Thomasen.The drilling of the first well started in December 2014 from the Ensco 72 drilling rig. From this well alone the production is expected to be 2,600 boepd. Maersk said the plan is to drill a total of 8-12 horizontal wells during 2015-2017 with each well being about six kilometers long.“We are excited to see first production which will contribute positively to Maersk Oil’s total volumes. The initial planning began four years ago, culminating with the final construction and installation mid-2014. In total, the Danish Underground Consortium has invested DKK 4.5 billion and it is exactly such investments that are needed to secure the future Danish oil and gas production,” said Martin Rune Pedersen, Managing Director of Maersk Oil Danish Business Unit, the operator of the Danish Underground Consortium (DUC).The new platform, located 220 kilometres off Denmark’s west coast, will produce a mixture of oil and gas and is expected to deliver approximately 20 million barrels of oil and 170 billion standard cubic feet of gas, combined reserves and resources of 50 million BOE, with peak production in 2017 of 20,000 boepd.The total investment in the Tyra Southeast expansion of DKK 4.5 billion ($648.6 million) includes the platform with a total weight of 4,700 tonnes, pipelines and drilling of the wells. The jacket (legs) and topside were constructed by Bladt Industries A/S, a Danish contractor located in Northern Jutland.The investment is the largest made by Danish Underground Consortium since the approval of the Phase IV development of Halfdan in 2007.DUC is the partnership between A.P. Møller – Mærsk (31.2%), Shell (36.8%), Nordsøfonden (20%) and Chevron (12.0%).Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Ithaca Energy Agree New Terms with BW Offshore for BW Athena FPSO (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    BW Offshore, an Oslo-based provider of floating production systems to the international oil and gas industry, has received a notice of termination for the FPSO BW Athena contract from Ithaca Energy. The FPSO is producing oil at Ithaca’s Athena field in the UK North Sea.In a statement this morning, BW Offshore has said it has agreed a revised contract structure with Ithaca Energy to continue production on the Athena field beyond expiry of the firm period on a revised compensation scheme. This involves advanced payment of an FPSO demobilization fee and sharing of positive cashflow from the field. Both parties have the right to terminate the revised lease on a 60-day notice period.In a separate statement, Ithaca has shed more light on the terms of the deal, confirming the Athena co-venturers will make advanced payment of an FPSO demobilization fee and from the end of the primary contract term in June 2015, the vessel day rate will no longer apply and the co-venturers and BW Offshore will instead share the net cashflow generated from the field.“Execution of the revised FPSO contract is clearly a positive step for extending the life of the Athena field and is reflective of the pragmatic approach being taken by many North Sea suppliers to realign cost structures to the current low oil price environment. The Athena field accounts for less than 8% of Ithaca’s forecast 2015 production and no year-end reserves have been assigned to the field interest,” BW Offshore said in a statement.The Athena field is situated in block 14/18b in the Outer Moray Firth area of the UKCS, lying approximately 18 kilometers west of the Claymore and Scapa fields and the associated production facilities.Ithaca currently holds a 22.5% interest in the block 14/18b. The field has been evaluated by Sproule Associates to contain 2P reserves (gross) of 24.4 million barrels of oil.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

    Exxon Start Oil Production at Gulf of Mexico Deepwater Oil Field (Tuesday, 31 March 2015)

    1 Jan 1970, 12:00 am
    U.S. oil company Exxon Mobil Corporation has started oil production in the deepwater Gulf of Mexico at Hadrian South with facilities tied back to the nearby Lucius project, reducing additional infrastructure requirements.Daily gross production from Hadrian South, ExxonMobil’s deepest subsea tie-back in nearly a mile and a half of water, is expected to reach approximately 300 million cubic feet of gas and 3,000 barrels of liquids from two wells.Hadrian South is a subsea production system with flowlines connected to the Anadarko-operated Lucius truss spar, which started production in January. With the startup of Hadrian South and Lucius, ExxonMobil’s total Gulf of Mexico net production capacity has increased by more than 45,000 oil-equivalent barrels per day. ExxonMobil holds a 46.7 percent interest in Hadrian South and a 23.3 percent interest in Lucius.“Successful deepwater projects like this are a result of ExxonMobil’s disciplined project execution capabilities and commitment to developing quality resources using advanced technology,” said Neil W. Duffin, president of ExxonMobil Development Company.“Cooperating closely with Lucius operator, Anadarko, has facilitated the development of a deepwater resource that may not have been possible using a standalone approach,” Duffin said. “Developing Gulf of Mexico oil and gas resources creates jobs, generates revenue and supports American energy security.”Hadrian South is located approximately 230 miles offshore in the Keathley Canyon area of the Gulf of Mexico in about 7,650 feet of water. The discovery well, Hadrian-2, was drilled in 2008 and the appraisal well, the Hadrian-4 sidetrack, was completed in 2009.ExxonMobil operates Hadrian South; co-venturers Petrobras and Eni hold 23.3 percent and 30 percent, respectively.Hadrian South adds to ExxonMobil’s Gulf of Mexico production operations, where the company has produced oil and gas for more than 60 years.Source: www.offshoreenergytoday.comPlease leave comments and feedback below

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