OS 20070501 May 2007

With offshore operations moving to
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Previous Page Contents Zoom In Zoom Out Front Cover Search Issue Next Page
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Superior Energy Services 1105 Peters Road Harvey, LA 70058 Phone: 504-362-4321 Fax: 504-362-4966 www.superiorenergy.com
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May 2007
Time-lapse 4D seismic FPSO report CGG/Veritas interview LWD vs. wireline logs
Houston London Paris Stavanger Aberdeen Singapore Moscow Baku Perth Rio de Janeiro Lagos Luanda
World Trends and Technology for Offshore Oil and Gas Operations
International
E&P report:
Region-by-region review & forecast
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Innovative jackup
develops Caspian eld
For continuous news & analysis
www.offshore-mag.com
First DP FPU for GoM
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Supplement
Scorpion
Drilling | Evaluation | Completion | Production | Intervention
From routine to extreme.
When a client needed reliable drilling
data under extreme conditions in the
Gulf of Mexico, we delivered and set
a world record in the process.
To reach a record offshore depth of 34,189
feet at 30,000 psi, you need the most
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deployed by seasoned professionals who
consistently perform under pressure.
At Weatherford, we combine a commitment
to bringing you the industrys fastest, most
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approach geared to providing precisely the
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From high-end applications to everyday
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So, whatever your scenario, our standards
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All Around You.
2006 Weatherford International Ltd. All rights reserved. Incorporates proprietary and patented Weatherford technology.
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At 3,048 m (10,000 ft.)
water depth, its no
time to experiment.
Its time to deliver.
At Aker Kvaerner Subsea, we
understand that to perform in todays
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Aker Kvaerner knows that deepwater
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deeper look visit the Subsea portion
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Uncharted depths...not anymore
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Copyright 2006. All rights reserved.
part of the Aker group
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Offshore (ISSN 0030-0608) is published monthly by PennWell, 1421 S. Sheridan Road, Tulsa, OK 74112. Periodicals class postage paid at Tulsa, OK, and additional offces. Copyright 2007 by
PennWell. (Registered in U.S. Patent Trademark Offce.) All rights reserved. Permission, however, is granted for libraries and others registered with the Copyright Clearance Center, Inc. (CCC),
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3200, Northbrook, IL 60065-3200. To receive this magazine in digital format, go to www.omeda.com/os. Standard Mail A enclosed version P3.
International Edition
Volume 67, Number 5
May 2007
C ON T E N T S
E-TECHNOLOGY
Delivering the digital oileld: Access, timeliness among keys ................................ 54
The digital oileld is all about enhancing asset value and optimizing operations, production, and
reserves through application of information technology and practices.
DRILLING & COMPLETION
New impact technology could revolutionize wireline logging .................................. 56
Since the introduction of slickline technology for wellbore intervention, there has been a need
for a measurement device that can determine not only the strain on the wire, but the forces ap-
plied to the toolstring.
High-resolution LWD image logs versus wireline image logs .................................. 62
Today, high-resolution logging while-drilling (LWD) images are available, and they offer
information in real time, as well as the opportunity to acquire time-lapse information through
re-logging while tripping.
Oil-based mud imaging tool meets challenges ......................................................... 68
Improved oil and synthetic based drilling uids (muds) have been developed and are being used
to drill wells in hostile environments where high pressures, high temperatures, thick shales, and
shale sloughing are encountered.
PRODUCTION
Shah Deniz in full ow following complex platform set-down ................................ 70
Production is building at Shah Deniz in the Azeri sector of the Caspian. Under the rst phase of
the BP-operated development, nine wells will deliver up to 900 MMscf/d of gas and 58,000 b/d
of condensate.
$38 billion to go to oating production during 2007-2011 ....................................... 74
Recent years have seen a rapid expansion of the worlds FPSO eet, prompted in part by an in-
creased demand for drilling units that has reduced the number of semisubmersible rigs available
for conversion to production platforms.
Developing the right concept for offshore developments ...................................... 80
Selecting the right concept for producing an offshore eld can have a major impact on the suc-
cess of the project. In light of that fact, the conceptual phase needs to be scrutinized thoroughly.
Providing answers for un-testable wells .................................................................. 84
Well testing has been a critical step in well evaluation since the 1920s. It has always been the rst
real measurement of reservoir volumetrics and potential performance.
Full load test addresses concerns over Kashagan H
2
S gas compression ................ 90
Enhanced oil recovery (EOR) methodologies face increasingly extreme challenges when
handling gas streams characterized by high levels of contamination, as is the case with the giant
Kashagan oileld development offshore Kazakhstan.
SUBSEA
Worlds rst subsea processing system headed for Norway ................................... 92
The nal weld has been made on the separation unit for the worlds rst commercial subsea
processing unit bound for the North Seas Statoil-operated Tordis eld. Installation is scheduled
for the third quarter of this year.
INTERNATIONAL REPORT
GoM to see $7 billion
in deepwater drilling ....................... 34
The US Minerals Management Service
estimates undiscovered Gulf of Mexico
reserves at 50 Bboe. Estimated capex
for 2007 of $7 billion for deepwater
developments alone will contribute to
uncovering new GoM reserves.
North Sea holds steady ................... 38
Though there has been resurgence in
E&P in the UK North Sea, there is
some skepticism about whether the
level of investment will continue. High
rig rates and a lack of new tax incen-
tives could cause companies to rein in
their drilling plans.
International investment
pours into Africa .............................. 42
Billions of dollars in international in-
vestment have owed into West Africa
in the last few years, expanding explo-
ration drilling and moving a number of
world-class elds into production.
Caspian elds boost
regional production ......................... 46
Shah Deniz, one of the largest oil and
gas elds in the world at an estimated
1.5-3 Bbbl of oil and 50-100 bcm of
gas, came onstream last December.
Spending for upstream and midstream
development is expected to exceed $3
billion.
Growing economies
stimulate Asia-Pacic E&P ............. 50
Exploding economies in China, India,
and much of Southeast Asia are creat-
ing an increase in oil and gas demand.
The region is expected to lead the
world in of fshore spending in 2008.
Celebrating Over 50 Years of Trends, Tools, and Technology
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World-class communications
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R E L I A B I L I T Y TO T H E E X T R E M E
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CapRock Communications, Inc. 2007.
All rights reserved.
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6 Of fshore May 2007 www.offshore-mag.com
CONSTRUCTION & INSTALLATION
Helix to deploy rst ship-shaped DP FPU in Gulf of Mexico .................................... 97
Helix Energy Solutions is about to launch the rst ship-shaped, disconnectable, dynamically
positioned (DP), oating production unit in the GoM. The vessel will be used to exploit marginal
deepwater oil and gas prospects.
Jumbo Shipping exes muscles with all-in-one concept .................................... 102
The Netherlands-based Jumbo Shipping has completed a full years work with its J1800-class
Jumbo Javelin and Fairpartner DP-2, heavy-lift, transportation, and installation vessels, the rst
two of four vessels planned for the class.
Hull strength, fatigue analysis critical during design/conversion phase ............... 106
Structural issues reported on both purpose-built FPSOs and conversions after entering service
reveal the importance of hull strength and fatigue verication during the design/conversion
stage.
TRANSPORTATION & LOGISTICS
High-pressure exible pipe, the next frontier ......................................................... 110
Development of high pressure reservoirs over the past few years, with more expected in the
future, and the maturity of the spar platform concept for development of such reservoirs, has
increased the need for high pressure pipes.
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Volume 67, Number 5
May 2007
COVER: Superior Energy Services
200-ft class vessels, M/V Superior Inter-
vention and M/V Superior Excellence are
working as a duel vessel, multi-service
package in 72-ft of water in the Gulf
of Mexico Matagorda Island area. The
vessels are performing coiled tubing/ni-
trogen stimulation with electric wireline,
which stimulates depleting wells, maxi-
mizing well life. One vessel completed
hook-up and construction on the caisson
while the other vessel completed the
wells. This saved the operator on rig
time. The vessels are capable of working
in water depths to 145 ft. Photo taken by
Glen Clark.
102
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GEOLOGY & GEOPHYSICS
Newly merged seismic
super-group plans global expansion ............ 116
It is eight months since CGG and Veritas announced
their intention to merge, creating the worlds largest
seismic group. Of fshore asked CGGVeritas Christophe
Pettenati-Auziere, President, Geophysical Services, for
a progress report.
Time-lapse seismic swaths prove
cost-effective alternative to full-eld 4D ....... 120
With careful planning, time-lapse seismic technol-
ogy (4D) swaths can be a cost-effective alternative to
full-eld 4D seismic acquisition for structurally simple
elds and are important in Shells North Sea 4D strategy.
NOIA SUPPLEMENT
Offshore energy education must begin with the public and politicians ................ 130
Over the past 25 years, if one thing has proven true its that one Presidential Administration can-
not change our dependence on imported oil. Today, the United States continues to import 60% of
our oil and were more dependent on sources from the Middle East than we ever have been.
The rst step toward energy independence? .......................................................... 134
As I watched the Presidents State of Union address in January, I was struck that he, like Presi-
dents before him, was making a promise for energy independence. In more than 20 of the last 34
State of Union addresses since 1973, Presidents have tried to x the nations energy problems.
FRANCE SUPPLEMENT
Buoyant French contractors open to global business opportunities ..................... 148
Submarine ber-optic and DC power solution for ultra-long tieback .................... 150
Cryogenic oating exibles widen options for LNG transfer .................................. 152
Construction specialists seeking further alliance opportunities ........................... 154
Test loop assesses feasibility of deepwater subsea separation ............................ 156
DENMARK REPORT
Denmark promoting its skills in oating production, decommissioning ............... 159
Flexible riser passes tensile, fatigue tests .............................................................. 160
Ramboll assessing Russian pipeline impact ........................................................... 162
SWEDEN
Sweden technology proles ..................................................................................... 163
SURVIVING
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Volume 67, Number 5
May 2007
D E P A R T M E N T S
Comment ............................................. 10
Data ..................................................... 12
Global E&P .......................................... 14
Offshore Europe .................................. 18
Gulf of Mexico ..................................... 20
Subsea/Surface Systems ................... 24
Vessels ................................................ 26
Drilling & Production .......................... 30
Geosciences ........................................ 32
Business Briefs ................................. 164
Advertisers Index ............................. 167
Beyond the Horizon .......................... 168
116
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Setting the Standard
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International E&P report
This issue features our annual International Report a complete roundup of offshore
exploration and production activity worldwide.
As she does every May, International Editor Judy Maksoud takes a re-
gion-by-region look at what has occurred in the last 12 months. She brings
you up to date on discoveries, eld developments, and new exploration
plans. As a veteran of this type of research, analysis, and reporting, Mak-
soud presents a lively, fact-lled review and forecast from West Africa to
the Gulf of Mexico, the North Sea to South America, and the Asia-Pacic to
offshore Canada. She covers the globe.
As you might expect to nd, a lot has happened in the last 12 months, and a lot more
is on the horizon. For the latest and the soon-to-be-expected, dont miss this annual fea-
ture. The 12-page special report begins on page 34.
TPG 500 moves outside North Sea
Production is building at Shah Deniz in the Azeri sector of the Caspian. Under the
rst phase of the BP-operated development, nine wells will deliver up to 900 MMcf/d of
gas and 58,000 b/d of condensate. All production is being exported through parallel sea
lines to a terminal in Sangachal, on the shore of Azerbaijan.
The wells are being drilled from a three-legged TPG 500 jackup platform, supplied
and installed by the projects main engineering contractor, Technip. Shah Deniz is the
third application of this proprietary design, the forerunners being BPs Har-
ding and Totals Elgin/Franklin in the North Sea.
In his feature on the development of Shan Deniz, Jeremy Beckman, Edi-
tor, Europe, talks with the project decision-makers about how and why the
concept was chosen. His report on their selection process and how the eld
was developed begins on page 70.
Helix to deploy rst ship-shaped DP FPU in Gulf of Mexico
As Managing Editor David Paganie points out in his feature on Helix
Energy Solutions, operators in the Gulf of Mexico continue to nd new ways
of dealing with challenging eld development and operational conditions.
Helix is about to launch the rst ship-shaped, disconnectable, dynami-
cally positioned (DP), oating production unit in the GoM. The vessel will
be used to exploit marginal deepwater oil and gas prospects.
The company also is managing a separate set of challenges at the instal-
lation site, where it continues to clear wreckage of the Typhoon TLP. Helixs oating
production unit (FPU), Helix Producer I (HPI), will be installed on the old Typhoon eld,
renamed Phoenix, in Green Canyon block 237 in 640 m (2,100 ft) of water.
In this Offshore exclusive report, Helix Executive Vice President and COO Bart
Heijermans discusses the decision behind the concept selection and the investments
upside potential, beginning on page 97.
Time-lapse seismic swaths prove cost-effective
With careful planning, time-lapse seismic technology (4D) swaths can be a cost-effec-
tive alternative to full-eld 4D seismic acquisition for structurally simple elds and are
important in Shells North Sea 4D strategy.
Thats the conclusion of a team of authors from Shell UK. The authors include Jon
Brain, Peter Grant, Rob Staples, and Erik Tijdens.
As they explain, the portfolio approach to 4D swath acquisition successfully acquired
time-lapse seismic data over four North Sea elds at low cost with minimal preparation.
In the case of Nelson and Guillemot elds, processed results support current business
activities. For Scoter and Cook elds, the results are less convincing. In all cases, valu-
able information was acquired.
Keys to technical success, they say, are out-of-plane geological dips, which result in
imaging errors and serious 4D non-repeatability. See their entire analysis beginning on
page 120.
To respond to articles in Of fshore, or to of fer articles for publication, contact the editor by email
(eldonb@pennwell.com) or fax (1-713-963-6296).
COMMENT
Eldon Ball Houston
PennWell
1700 West Loop South, Suite 1000, Houston, TX 77027 U.S.A.
Tel: (01) 713 621-9720 Fax: (01) 713 963-6296
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EDITORIAL ADVISORY BOARD
Luke R. Corbett, Anadarko
David J. Greer, Shell International E&P
Jack B. Moore, Cameron Corp.
Hugh ODonnell, Saipem
Bruce Crager, INTEC Engineering
James K. Wicklund, Spinnerhawk Capital Management
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Offshore ISSN-0030-0608
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Tel: +44 208 946 7783 Fax: +44 208 946 1543
CONTRIBUTING EDITORS
Nick Terdre (Norway)
David Shields (Mexico)
Peter Howard Wertheim (Brazil)
Gurdip Singh (Singapore)
EDITOR-IN-CHIEF
Eldon R. Ball
eldonb@pennwell.com
TECHNOLOGY EDITOR
Gene Kliewer
genek@pennwell.com
MANAGING EDITOR
David Paganie
davidp@pennwell.com
DRILLING & PRODUCTION EDITOR
Frank Hartley
frankh@pennwell.com
INTERNATIONAL EDITOR
Judy Maksoud
judym@pennwell.com
PRESENTATION EDITOR
Josh Troutman
josht@pennwell.com
Maksoud
Beckman
Paganie
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HALLIBURTON
Drilling, Evaluation
and Digital Solutions
2007 Halliburton. All rights reserved.
the LOGIQ
Platform
Gone are the days when you had to choose between precision
and reliability. Halliburtons LOGIQ
TM
platform for openhole
and cased-hole wireline logging services is the industry
breakthrough that delivers it all. Encompassing advanced
downhole logging tools, a higher data rate telemetry
system and our powerful PC-based LOGIQ surface system,
it also features a dramatic reduction in the length and
weight of downhole tools without penalty in temperature
or pressure rating specifications. And with that shorter logging
tool string comes a much lower potential for sticking. All this
with superior service quality.
Halliburton Wireline and Perforating Services.
All things considered, the logical choice. For the rest of
the story, visit us at www.halliburton.com/wireline.
Unleash the energy.
Now you get laboratory

precision and rock-solid
reliabilityno compromise.
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GLOBAL DATA
GoM drilling permits issued
D
r
i
l
l
i
n
g

p
e
r
m
i
t
s

100
90
80
70
60
50
40
30
20
10
0
Dec.
66
Mar.
64
Feb.
68
Sept.
55
Oct.
50
Nov.
53
Jan.
53
Source: US Minerals Management Service
US GoM
39 (0)
87 (0)
Floaters
Jackups
North Sea
40 (0)
35 (0)
East
Atlantic
Mex GoM
5 (0)
31 (0)
S. Asia
8 (+1)
32 (+2)
SE Asia
20 (-1)
37 (0)
Far East
3 (0)
16 (0)
M. East
1 (0)
91 (-3)
W. Africa
28 (+1)
26 (0)
L. America
29 (0)
15 (0)
Source: Rigzone.com
3 (+2)
0 (-4)
Active rig eet, April 2007
This month Infeld Systems comments on projects planned and
considered for development between 2007 and 2011. Asia is again
strong in the total number of foating platforms planned up until
2011, with 23% of the world totals followed by Africa and Latin
America with 19% and 17%, respectively.
Regionally, in terms of reserves coming onstream, the global
picture is dominated unsurprisingly by the Middle East with 39%
of world totals, but is most remarkably followed by the three
strong growth areas: Asia, Africa, and Latin America with 17%,
11%, and 11%, respectively.
Worldwide offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599
World Total 1,180 290 187,009 56,552 2,685 33 116 21 10 38 1,032 49 51 64,670 3,092
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Gulf of Mexico day rates
Month/Year Minimum Average Maximum
Drillship
April 2006 $0 $216,401 $289,900
May 2006 $182,000 $233,650 $289,900
June 2006 $182,000 $234,139 $289,900
July 2006 $182,000 $234,483 $289,900
Aug 2006 $182,000 $234,513 $289,900
Sept 2006 $182,000 $240,482 $301,700
Oct 2006 $190,900 $244,660 $301,700
Nov 2006 $190,900 $244,683 $301,700
Dec 2006 $190,900 $244,256 $301,700
Jan 2007 $190,900 $243,583 $295,200
Feb 2007 $190,900 $250,162 $301,700
Mar 2007 $190,900 $250,683 $301,700
Jackup
April 2006 $52,000 $112,531 $170,000
May 2006 $52,000 $117,137 $195,000
June 2006 $65,000 $118,373 $195,000
July 2006 $65,000 $117,830 $195,000
Aug 2006 $65,000 $118,113 $185,000
Sept 2006 $65,000 $114,252 $185,000
Oct 2006 $0 $111,298 $175,000
Nov 2006 $0 $108,806 $185,000
Dec 2006 $0 $102,596 $185,000
Jan 2007 $0 $100,126 $185,000
Feb 2007 $0 $100,470 $185,000
March $0 $97,993 $185,000
Semi
April 2006 $62,000 $202,968 $400,000
May 2005 $62,000 $206,706 $400,000
June 2006 $0 $205,178 $400,000
July 2006 $0 $205,419 $385,500
Aug 2006 $0 $222,278 $385,500
Sept 2006 $0 $223,483 $385,500
Oct 2006 $95,000 $241,484 $385,500
Nov 2006 $102,000 $243,823 $385,500
Dec 2006 $102,000 $247,670 $425,000
Jan 2007 $102,000 $271,540 $435,000
Feb 2007 $82,000 $269,991 $468,000
March 2007 $82,000 $278,438 $468,000
Source: Rigzone.com * Undergoing hurricane repairs.
For details on region
by region offshore activity,
see the E&P analysis
starting on page 34.
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Asia-Pacic
Malaysias deepwater continues to draw international operators.
In late March, BHP Billiton Ltd. and Petronas Carigali Sdn. Bhd.
committed $156.4 million to explore ultra-deepwater blocks N and Q in
1,600-2,800 m (5,249-9,186 ft) water depths.
The spending includes $144 million to shoot 1,500 sq km (579 sq mi)
of 3D seismic and to drill four wells in the 3,910-sq-km (1,510-sq-mi)
block N. The companies have earmarked $12.4 million for 800 sq km
(309 sq mi) of 3D seismic on the 4,748-sq-km (1,833-sq-mi) block Q.
The work is expected to take seven years to complete. The area is
thought to be similar to the deepwater discoveries of Kikeh, Malikai,
Gumusut Kakap, and Ubah.
CNOOC Ltd. is still drilling exploration wells in Chinas Bohai

Bay. Late in March, the company made an independent discovery in
the Yellow River Mouth Sag.
Discovery well Bozhong (BZ) 28-2 E-1, south of structure BZ 28-2E
in the Yellow River Mouth Sag, penetrated oil pay zones with total thick-
ness of 35 m (115 ft) and gas sections of 35 m (115 ft). The well was
drilled to a TD of 2,575 m (8,448 ft) in 20 m (66 ft) water depth.
During the drillstem test, the well owed at an average rate of
1,600 b/d of oil from the oil zones via 7.14-mm (0.28-in.) and 14.29-
mm (0.56-in.) chokes and 10 MMcf/d of gas via 15.08-mm (0.59-in.)
choke.
BZ 28-2E lies between the BZ 28-1 and BZ 28-2S oil elds.
Since 2006, CNOOC Ltd. has made four discoveries in the Yellow
River Mouth Sag of Bohai Bay, says Zhu Weilin, vice president of
the company and general manager of the exploration department.
We hope to develop a large-scale cluster of oil and gas elds in the
future.
Niko Resources Ltd. made three new discoveries in two blocks

off Indias east coast in March. Wells KG-D6-Q1 and KG-D6-P2 are
in block D6 in the Krishna-Godavari basin.
The KG-D6-Q1 well is 15 km (9.3 mi) southwest of the AA-1 gas dis-
covery. The KG-D6-P2 well is 6 km (3.7 mi) west of the P1 gas discov-
ery. The KG-D6-Q1 well encountered pay zones in the distal part of
the earlier established channel levee systems in the KG D6 block. Data
obtained from logging and modular dynamic testing (MDT) prove the
presence of hydrocarbons.
Well KG-D6-P2 encountered two gas bearing zones, both of them
channel fan complexes. Data obtained from logging and MDT corrob-
orates the presence of hydrocarbons. These two wells demonstrate
the continued high prospectivity of the block, the company says.
Nikos third discovery is in block NEC-25. Well NEC-25-A5 lies in
the Mahanadi basin 12 km (7.5 mi) northwest of the earlier natural
gas discovery NEC-25-A1 (Dhirubhai 9). The recent well, Dhirubhai
32, is the seventh consecutive discovery in this block. Commerciality
is under evaluation, Niko says.
Americas
Canadian Superior Energy Inc. is moving the Kan Tan IV semi-
submerisble to Trinidad. Maersk Contractors, a part of A.P. Moller -
Maersk A/S will manage the drilling rig, which is owned by Sinopec
Star Petroleum Co. Ltd. of Beijing, China.
The Kan Tan IV has been undergoing a $60-million ret in Browns-
ville, Texas. The rig is scheduled to begin drilling on Canadian Superi-
ors Victory prospect on Intrepid block 5(c).
Canadian Superior has contracted the Kan Tan IV to drill a three-
well program on separate large natural gas prospects: Victory,
Bounty, and Endeavour, approximately 97 km (60 mi) off the east
coast of Trinidad.
As with any major construction and refurbishment program
of this nature, the rig refurbishment has taken longer than we and
Maersk and Sinopec had originally planned, but I am pleased to say
that we are very close now, Mike Coolen, Canadian Superior presi-
dent and COO, says.
The rig was being towed to the port of Chaguaramas in Trinidad to
load supplies and nalize drilling preparations before moving to the
rst drilling location, Victory-1. Canadian Superior expected the rst
well on the Intrepid block to be spudded by the end of April.
Awards are being made for work on the Deep Panuke gas project off-
shore Nova Scotia.
Intec Engineering and alliance partner IMV Projects Atlantic
have landed a contract for subsea and pipeline design. Front-end
engineering and design (FEED) work will support project sanction,
which is expected before the end of the year. The FEED work will
also lead to bid packages for the subsea and pipeline contracts.
Intec plans to assign a subsea/pipeline engineer to EnCanas ofce
in Halifax as part of the clients integrated project management team.
Mediterranean
In mid-March ONGC Videsh Ltd. signed an agreement to operate
in deepwater offshore Libya. The company signed an exploration
and production-sharing agreement (PSA) with National Oil Corp. of
Libya for contract area 43. The PSA was part of the countrys re-
cently concluded third bid round.
The contract area consists of four blocks with a total area of 7,449
sq km (2,876 sq mi) in the Cyrenaica offshore area of the Mediterra-
nean Sea. The block boundaries extend from the coastline to a water
depth of about 2,200 m (7,218 ft).
OVLs work program includes acquiring 1,000 km (621 mi) of 2D
seismic data and 4,000 sq km (1,544 sq mi) of 3D data, as well as drill-
ing an exploratory well during the ve-year exploration phase of the
contract. About two-thirds of the contract area has sparse coverage of
2D seismic data. There is also a shallow-water exploration well that es-
tablished the presence of hydrocarbons at the southwest boundary.
Libya is reportedly planning to hold another bidding round later
this year to develop onshore and offshore gas elds. The round will

GLOBAL E&P
Judy Maksoud Houston
0 31
Miles
0 50
Km
Block Q
Block N
Indian Ocean
South China Sea
BORNEO
(Kalimantan)
SARAWAK
BRUNEI SABAH
PALAWAN
SINGAPORE
M A L A Y S I A
I N D O N E S I A
S
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M
A
T
R
A
MALYSIA
V
I
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T
N
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Area shown
BHP Billiton Ltd. and Petronas Carigali Sdn. Bhd. committed $156.4 mil-
lion to explore ultra deepwater blocks N and Q offshore Malaysia.
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For more than 60 years, KBR has made it possible
for our clients to execute some of the most complex
ofshore projects in the world.
From concept through execution, KBR delivers the
engineering and project management expertise for
ofshore production facilities, fxed and foating
platforms, pipelines and subsea solutions for today
and beyond.
To learn more, contact us at ofshore@kbr.com or
visit www.kbr.com.
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include 10-15 blocks.
Libya has an estimated 100 Bbbl of oil reserves and is looking to
nearly double production in the next ten years.
Middle East
Qatar Gas Transport Co. Ltd. (Nakilat) has signed an agreement
with Keppel Offshore & Marine Ltd. subsidiary KS Investments Ltd.
to jointly develop a world-class shipyard facility in the Port of Ras
Laffan, Qatar.
This agreement is a partnership between a major LNG transporter
and the global leader in ship repair, ship conversion, and construc-
tion of offshore drilling rigs.
The proposed shipyard will be part of the expansion of the Ara-
bian Gulf Port of Ras Laffan and is expected to begin operation in
2010.
The new facility will be suitable for repair and maintenance of
very large LNG carriers and a wide range of other vessels and the
conversion of tankers to FPSO and FSO vessels. The estimated cost
of the shipyard is approximately $450 million.
This business venture is in line with our Near Market, Near Cus-
tomer strategy to be close to our customers so that we can better
serve them, Tong Chong Heong, managing director/COO of Kep-
pel O&M, says.
Nakilat and KS Investments have agreed to form an 80/20 joint
venture company to manage the design, construction, and opera-
tion of the 43-hectare (106-acre) shipyard, which will be built on re-
claimed land. KS Investments will contribute $23 million for its 20%
interest in the joint venture.
The name of the JVC is Nakilat-Keppel Offshore & Marine Ltd.
Europe
Toreador Resources and TPAO each have reported Black Sea gas
discoveries.
Toreador found more gas in the Black Sea offshore Turkey.
The Guluc-1 well owed approximately 17 MMcf/d of gas. It was
drilled in a fault-separated prospect along the same trend as the Ak-
cakoca-3 and Akcakoca -4 wells in the deeper waters of the SASB
project area.
Turkish national oil company TPAO reportedly tested 6.8 MMcf/
d of gas at the Alapli-1 well northeast of the Akkaya eld and adja-
cent to the SASB area.
Africa
Most of the big West Africa news at the beginning of 2007 was
offshore Angola, but more recently, the spotlight has moved north
to Nigeria.
In late 3Q, Eni signed a production-sharing contract (PSC) with
Nigerian national oil company NNPC for the OPL 135 exploration
license. The area lies northeast of the Niger Delta near the Kwale/
Okpai treatment plants, operated by Eni.
The PSC has a duration of 25 years. The rst ve years will be de-
voted to the exploration phase, and the following 20 to development
and production, with a contractual option of putting gas discoveries
into production.
Through this acquisition, Eni plans to promote increasing involve-
ment of local companies in the domestic market, with the main ob-
jective of eliminating gas aring.
Eni will operate OPL 135 activities through NAOC. Eni has a 48%
stake in the block. Partners include Nigerian companies Global En-

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GLOBAL E&P
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Offshore Namibia, Tullow Oil is drill-

ing again on the potentially giant Kudu
gas eld.
Exploration and analysis to date sug-
gest reserves of at least 3 tcf, with poten-
tial for up to 9 tcf. The parts of the res-
ervoir drilled so far have achieved good
ows, but Tullow wants to test other sec-
tions in a different geological setting.
Depending on the outcome of the two-
well appraisal program, development could
be expanded from the present option of fu-
eling a gas-to-power project on the border
with South Africa, to an export project, pos-
sibly involving LNG.
Tullow is negotiating to bring in a po-
tential partner and expects to conclude ar-
rangements before drilling the rst well.
Central Europe/Caspian
Dragon Oil is embarking on a three-
rig development campaign in the Turk-
men sector of the Caspian Sea. The
project will involve deployment of one
jackup and two platform-based rigs.
The jackup will drill several wells from
the Lam A platform this year. The plat-
form-based rig CIS-1 is scheduled to arrive
onsite this spring. Meanwhile, Dragons
own platform-based Rig 40 is undergoing
refurbishment. Rig 40 is expected to begin
drilling in the spring as well.
In addition to the drilling program,
Dragon is planning a sustained program
of workovers through 2007.
Between 2007 and 2009, the company
plans to drill up to 25 development and
appraisal wells, subject to rig availability,
leading to a 25% year-on-year increase
in its crude production. Dragon also ex-
pects to spend around $500 million over
this period on new production platforms,
offshore facility upgrades, new pipelines,
and enhanced export capability.
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Intrepid Industries Inc.
2305 S. Battleground Road
La Porte, TX 77571-9475
Phone: +1 281 479-8301 Fax: +1 281 479-3453
E-Mail: sales@intrepidindustries.com
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0 124
15 E
35 S
30 S
25 S
20 S
15 S
15 E 20 E 25 E
20 E 25 E
0 200
Miles
Existing electrical grid
Km
Windhoek
Walvis Bay
Luderitz
Oranjemund
Orange
basin
KUDU
Luderitz
basin
Namibe
basin
1911
2814A
Cape Town
Koeberg nuclear station
Mossel bay
Bredasdorp basin
SOUTH AFRICA
NAMIBIA
BOTSWANA
ANGOLA ZAMBIA
Port Elizabeth
AFRICA
Area
shown
Tullow Oil is drilling again on the potential-
ly giant Kudu gas feld offshore Namibia.
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Total pounces on Jura
Total is developing its Jura gas-conden-
sate eld in the northern North Sea, just
four months after its discovery. With re-
serves of over 170 MMboe, this appears to
be the UKs largest new eld development
since Nexens Buzzard.
For Total, the main motivation is maximiz-
ing throughput in its Alwyn Area infrastruc-
ture. Juras production will head through a
3-km (1.9-mi) pipeline to the Forvie North
subsea wellhead, itself connected to the Al-
wyn North processing platform. After com-
ing onstream in spring 2008, Juras output
should peak at 45,000 boe/d. Total plans fur-
ther exploration in this area on the Jura East
prospect.
In the UK central North Sea, Oilexco has
delivered yet another discovery with its sus-
tained drilling campaign, this time on the
Kildare prospect in block 15/26b. The Cana-
dian operator was awarded the acreage joint-
ly with Nexen under the UKs 23rd offshore
licensing round.
The semisubmersible Ocean Guardian drilled
the well to a TD of 14,330 ft (4,368 m), encoun-
tering 27.7 m (91 ft) of net pay in Upper Jurassic
sands. On test, the well owed 4,216 b/d of oil
and 3.1 MMcf/d of gas via a 64/64-in. choke.
The partners plan further drilling to appraise
the extent of the oil accumulation.
In the UKs southern gas basin, EnCore
Oil and Star Energy are considering the con-
version of three decommissioned elds for
use as a seasonal gas store. Esmond, Forbes
and Gordon were developed jointly by Ham-
ilton Oil. Esmond, the largest accumulation,
had original reserves of 250 bcf. Star plans
to acquire low density 3D seismic over the
three elds. According to EnCore CEO Alan
Booth, It has long been known that the UK
lags much of Europe in the provision of gas
storage. This project has the potential to
more than double the UKs gas storage ca-
pability.
However, according to a recent presen-
tation in London by Tullow Oil, storage
was not an issue this winter past, due to a
sudden inux of gas from new suppliers in
Norway and The Netherlands. More of a
concern was the resultant depression of UK
gas prices, although rates have risen since.
High rig rates also worried the companys
chief executive Aidan Heavey. In our view,
these are having a detrimental effect on the
mature parts of the UK North Sea, causing
some North American companies to scale
back their drilling plans, he said.
Hydro ups recovery target
Hydro has made a small oil discovery
southwest of its producing Grane eld in the
Norwegian North Sea. The semisubmers-
ible Transocean Winner found oil in Jurassic
sandstone, but only traces of hydrocarbons
in the primary Tertiary target.
In the Troll production license, Hydro
has agreed long-term contracts with Awilco
Offshore for two new rigs, to be built by
Yantai Rafes Shipyard in China. These
should start operating on Troll in 2009 and
2010. Each will drill development wells for
a period of at least ve years. Hydros latest
long-term plan for Troll involves increasing
oil recovery by 30% to over 2 Bbbl. So far,
113 wells have been drilled to drain the eld,
many of which are multilaterals with two
and six branches.
Hook Head awaits Petrolia
Providence Resources plans to re-explore
Marathons 1971 Hook Head discovery off
southern Ireland. The Dublin-based compa-
ny has secured the semisubmersible Petrolia
for a 50-day slot this summer to drill an ap-
praisal well on the structures crest.
Hook Head is a large, mid-basinal anti-
cline beneath 80 m (262 ft) of water in the
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OFFSHORE EUROPE
North Celtic Sea basin. The discovery well logged around 100 ft (30
m) of hydrocarbons in ve Lower Cretaceous sandstone layers. An-
other Marathon well in 1975 successfully delineated more reserves
at the structures down-dip edge.
Providence newly acquired seismic puts the crest around 2 km
(1.2 mi) northwest of the 1971 well, and at a location 70 m (229 ft)
higher. The company believes in-place reserves could be around 70
MMbbl, or 250 bcf.
In St. Georges Channel, towards Wales, Providence has gained
an extension to its licensing option 05/3 from the Irish authorities
until end-September. The acreage contains the Apollo prospect, also
identied by Marathon in the 1990s following a 2D seismic survey.
New in-house mapping suggests Apollo may hold up to 300 MMbbl
in Lower Jurassic sands, with further upside in Upper Jurassic se-
quences. Marathons nearby Dragon discovery from 1994, off west
Wales, ow tested at 20 MMcf/d. Providence will use the extension
to conduct further subsurface work, and to seek farm-in partners.
Viking set to revive Peak
Lundin Petroleum is combining its UK and Norwegian North Sea
businesses into a new company, Viking Oil and Gas. Just over half of
Vikings shares will be offered to investors via a planned listing on
the Oslo Stock Exchange.
The new operation will be headquartered in Oslo, with a branch
in Aberdeen. With forecast production of over 20,000 boe/d this
year, it will rank in the top tier of Norwegian independents after
Statoil/Hydro. Lundin puts Vikings net proven and probable re-
serves at 96.6 MMboe, with 974 MMboe of net unrisked prospec-
tive resources.
Among its undeveloped properties are Peik, formerly operated
by Total, which straddles the UK/Norway North Sea median line.
Viking owns 50% of the Norwegian side, with further interests in
two blocks containing the UK section. Recently, Canadas Bow Val-
ley Energy farmed in to both sets of licenses.
The latter has become a specialist in cross-border projects in this
region, also involved in the current Enoch and Blane developments.
The company believes the partners will push for development to
start next year, via a subsea tieback to Alvheim or Heimdal on the
Norwegian side, or to Bruce or Beryl in UK waters. Another gas dis-
covery in block 9/10b West could also be factored in. Field analysts
ScanBoss put Peiks recoverable reserves at 20 MMboe.
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Marathon strikes oil
Marathon Oil Corp. hit pay with Droshky No. 1 in Green Canyon
block 244 in 2,900 ft (884 m) of water. The discovery well, drilled 137
mi (220 km) south-southwest of Venice, Louisiana, logged 250 ft (76
m) of net oil pay, according to Marathon.
The preliminary results suggest that the Droshky No. 1 is a com-
mercial discovery with development likely through the Troika Unit
infrastructure, which is 2 mi (3 km) from the Droshky well, says
Philip G. Behrman, Marathon senior vice president of Worldwide
Exploration.
Troika is a subsea eld in Green Canyon block 244 in 2,700 ft (823
m) of water. The eld produces through the Shell-operated Bullwinkle
platform.
At print, Marathon was drilling two sidetracks on Droshky to de-
termine the elds commercial extent.
Marathon holds a 100 % working interest in Droshky No. 1 and a
50 % interest in the Troika Unit.
Application led for LNG port off Florida
Hegh LNG AS subsidiary Port Dolphin Energy Llc. has led an
application with the US Coast Guard for approval to build and oper-
ate an LNG port 28 mi (45 km) off the west coast of Florida.
The proposed project consists of two submerged turret unloading
and mooring buoys to receive an average of up to 800 MMcf/d of
natural gas from LNG shuttle and regasication vessels (SRVs), and
a 42-mi (68-km) offshore pipeline to bring the natural gas from the
proposed terminal to Port Manatee in Tampa Bay. The port will have
a peak delivery capacity of 1.2 bcf/d.
This is an important milestone in Hegh LNGs effort to continue
the development of our SRV strategy, where we provide transport,
regasication, and market access for our customers, says Sveinung
Sthle, president and CEO of Hegh LNG AS.
Hegh LNG has two SRVs on order with Samsung Heavy Indus-
tries for delivery in 2009 and 2010 to serve Suez LNG Tradings
Neptune deepwater port, a similar offshore LNG terminal slated for
Massachusetts Bay, near Boston.
Deepwater contracts
BHP Billiton and Shell have awarded subsea contracts for the
Shenzi and Princess deepwater developments. BHP issued the Shenzi
contract to Saipem America Inc. The contracted workscope includes
transportation and installation of subsea equipment: installation of
three combined electro-hydraulic dynamic umbilicals; design, fabri-
cation, and testing of rigid subsea jumpers and nine suction piles; and
installation of 66 ying leads, three manifolds, and eight SCR spool
pieces on the Shenzi TLP.
Saipem will use a mix of construction vessels from its in-house
eet and outside contractors to complete the work between Febru-
ary and November 2008.
The company contracted Aker Marine Contractors Inc. to per-
form portions of the design and engineering work on Shenzi, includ-
ing use of the DP-3 BOA Sub C construction vessel.
The Shenzi eld is in Green Canyon blocks 609, 610, 653, and 654
in 4,400 ft (1,341 m) of water, approximately 120 mi (193 km) offshore.
Partners in the development include Hess Corp. and Repsol YPF.
Shell awarded the Princess contract to Technip. The contract covers
project management, engineering, fabrication, and installation of ow-
lines and steel catenary risers, and installation of pipeline-end-termina-
tions. Installation is scheduled for the fourth quarter of this year.
The Princess development comprises tieback of four subsea wa-
ter injection wells to the Shell-operated Ursa TLP moored in Missis-
sippi Canyon block 854 in 3,780 ft (1,152 m) of water.
GULF OF MEXI CO
David Paganie Houston
Rendering of Hegh LNGs Port Dolphin Energy LNG facility, proposed for installation off the west coast of Florida.
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Hurricanes Katrina and Rita created catastrophic damage
to over 100 platforms. An estimated 1000 wells were put out
of commission. Wellheads collapsed to the ocean oor, and
mangled casing strings were entangled with platform substruc-
ture. Well re-entry often seemed impossible. And wide-spread
environmental damage appeared imminent. There was no
ready-made solution for this uncommon occurrence.
Wood Group Pressure Control engineers responded, adapting
our surface casing connectors into an efcient, low-cost,
diver-assisted subsea de-completion system. In short order,
the design was prototyped, lab tested and placed into service.
Although hundreds of offshore wells have been controlled, work
employing this common-sense solution will continue for several
more years until all damaged wells are secure. Safety is essential.
Speed desirable. Reliability mandatory.
To learn more, visit our web site at
www.wgpressurecontrol.com
E-mail us at wgpc
@
woodgroup.com
or telephone +1 832.325.4200
Wood Group Pressure Control
Redening Surface Wellhead Technology
The LRC underwater

de-completion system
with removable control
module and weld-less
casing connection.
An uncommon problem.
A common-sense solution.
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Technip in Houston will execute the contract;
Technip in Mobile, Alabama, will assemble the
pipe stalks, and pipelay vessel Deep Blue will de-
ploy the pipelines in a reel lay form.
Shell-operated Princess is a sub-salt accu-
mulation in Mississippi Canyon block 765 in
3,610 ft (1,100 m) of water.
Meanwhile, Aberdeen-based International Moor-
ing Systems (IMS), part of the Craig Group, is sup-
plying its H-link connectors to an unnamed operator
in the Gulf of Mexico, under contracts worth more
than 2 million ($4 million).
The 3-metric ton (3.3-ton) connectors allow
lengths of chain and mooring line to be grouped
together for anchoring oating production units
and semisubmersible rigs in deepwater.
According to IMS, the H-Link connectors
extend the life and integrity of mooring lines
and chain by avoiding the use of other chain
material as a binding and anchoring device,
which could cause abrasion leading to deterio-
ration reducing the life of the mooring line.
The connectors will be manufactured in the
UK for scheduled installation in the GoM this
year.
These new contracts show exactly why we
moved to invest in developing new technolo-
gies and equipment, as the industry looks to
install the latest systems to ensure its assets
and investments are protected in the GoM,
says Alan Duncan, IMS managing director.
Range sells
shallow water properties
Range Resources Corp. has sold its GoM properties to a private
company for $155 million.
The properties include Ranges interests in 37 platforms in water
depths ranging from 11 to 240 ft (3 to 73 m). At year-end 2006, Range
estimated the properties contained proved reserves of 40 bcfe.
The properties were not integral to our future growth, so we elected
to monetize them, says John Pinkerton, Range president and CEO.
Caesar backlog lling up
Helixs latest deepwater construction vessel, Caesar, will have
plenty of work lined up when it enters the companys active eet in
late-2007/early-2008. The $138-million vessel is undergoing conver-
sion at COSCO shipyard in Shanghai.
The company has secured one external contract and one in-house
commitment for the vessel in 2008. The outside job was awarded by
Murphy E&P Co. The operator issued a letter of intent to Helix for
installation work on the Thunder Hawk eld in Mississippi Canyon
block 736 in 6,100 ft (1,859 m) of water.
The contracted workscope includes installation of two 8-in. (203-
mm) owlines and two 12-in. (305-mm) export pipelines, with as-
sociated steel catenary risers and pipeline-end- terminations. The
work is scheduled for mid-2008.
The execution of the LOI for Thunder Hawk constitutes a major
milestone for Caesar and our company, says Bart Heijermans, Helix
executive VP and COO. We are very pleased with the level of inter-
est in the vessel and are condent that this asset will become a major
contributor to our company and the industry.
Caesar also is scheduled to install the owline for Helixs Noonan
discovery in Garden Banks block 506 in 2,700 ft (823 m) of water.
Installation is scheduled for the rst half of 2008.
Meanwhile, Helixs deepwater reel lay vessel, Intrepid, completed
installation of Shell Offshore Inc.s Crosby Pastel Pink pipe-in-pipe
(PIP) owline system. This project was the companys rst PIP sys-
tem that it constructed and installed, according to Helix.
The companys workscope included construction and installation
of the 4-in. (102-mm) x 8-in. (203-mm) PIP and pipeline-end-termina-
tion from Mississippi Canyon block 899 to MC 898 in 4,000 ft (1,219
m) of water. Installation was completed in mid-2007.

US Steel to acquire
Lone Star Technologies
United States Steel Corp. will acquire Lone Star Technologies Inc.
for $2.1 billion in cash.
US Steel says it expects the acquisition of Lone Star to strengthen
its position as a producer of tubular products for the energy sec-
tor and will create North Americas largest tubular producer, with
manufacturing capacity of 2.8 million tons (2.5 million metric tons).
This transaction represents a compelling strategic opportunity
for US Steel to strengthen our position as a supplier to the robust oil
and natural gas sector by signicantly expanding our tubular prod-
uct offerings, our production capacity and our geographic footprint,
says John P. Surma, US Steel chairman and CEO.
Our complementary strengths will better position Lone Star to
pursue signicant new growth opportunities for the benet of our
customers, distributors and end users, says Rhys Best, Lone Star
chairman and CEO.
Under the terms of the denitive agreement, US Steel will acquire
all outstanding shares of Lone Star for $67.50 per share in cash an
aggregate value of approximately $2.1 billion.
The companies boards have approved the acquisition, but it still is
subject to the approval of Lone Stars shareholders and other custom-
ary closing conditions, including regulatory approvals. The transac-
tion is expected to close in the second half of this year.
GULF OF MEXI CO
M/V First and Ten, a Rigdon 4000-class PSV design, was launched at Bollinger
Shipyards Lockport, Louisiana facility on March 30. The diesel electric-driven ves-
sel is the frst of 10 being built at Bollinger for Ridgon. The DP-2 vessels are 190 ft
(58 m) x 46 ft (14 m) x 18 ft (6 m), with 4,000 bbl of liquid mud and 5,500 cu ft (156 cu
m) of bulk capacity.
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For complete details about the DecisionSpace environment,
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Aerial satellite photography courtesy of NASA.
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Hydro contracts riserless mud system
Norsk Hydro ASA has awarded a NOK 4.5 million ($750,000) con-
tract to AGR Group ASA for riserless mud recovery equipment and
services covering one well in the Fram eld of the North Sea. This
would be the second Norwegian continental shelf well drilled using
riserless mud handling equipment.
Alve PDO approved
Statoil has received ministerial approval of its plan for develop-
ment and operation of the Alve gas/condensate eld in the Norwe-
gian Sea. For the rst time, Statoil had submitted a simplied PDO.
The plan calls for Alve drilling to begin in August with rst produc-
tion in December 2008. Total investment is estimated at NOK 2.4 bil-
lion ($392 million). Alve will tieback to Statoils Norne eld and will be
developed with one subsea template holding four drilling slots.
The Alve eld lies in production license 159B, 16 km (10 mi) south-
west of Norne in 390 m (1,280 ft) of water. It comprises the Garn,
Not, Ile, and Tilje formations, with proven reserves in Garn and Not.
Recoverable reserves are estimated at 6.78 bcm (239 bcf) of gas and
8.3 MMbbl of condensate.
Statoil holds 75%, Danish Oil and Natural Gas (Dong) 15%, and
Hydro 10%.
Maersk Oil Qatar awards pipeline contract
Maersk Oil Qatar AS has awarded the National Petroleum Con-
struction Co. of Abu Dhabi the pipeline contract for block 5 develop-
ment at Al Shaheen eld.
Scope of work includes design, engineering, procurement, fabrica-
tion, offshore installation, and testing of 260 km (162 mi) of submarine
pipelines ranging in diameters from 152 mm (6 in) to 610 mm (24 in),
in addition to 60 km (37 mi) of submarine power and communication
cables, and associated works. Water depths range from 52 m (171 ft)
to 70 m (230 ft).
The rst work is scheduled for completion by the end of 2007 and
the remainder by mid-2009.
Subsea 7 lands ROV contracts
Subsea 7s i-Tech division has won two ROV contracts. One is from
Shell Brasil Ltd. for $12 million covering two ROVs for a semisubmers-
ible drilling rig and an anchor-handling tug working for the BC10 proj-
ect in Campos basin. The contract begins in mid-year and runs for three
years. Water depths are 1,700 m to 2,000 m (5,577 ft to 6,562 ft).
These are the rst Centurion QX ROVs to be deployed in Bra-
zil and both systems have been modied to meet project specic
requirements including the provision of garages instead of tether
management systems. In addition, an extensive suite of tooling is
required including the design and build of anchor suction skids.
The second contract, for $5 million, is from Apache Energy Ltd. for
ROVs on two semis drilling offshore Exmouth, Australia. The rst
drilling rig, using a Warrior ROV system, started in February for a du-
ration of ve months. The second project, using a newbuild Centurion
QX began in March for a duration of approximately 18 months.
Both rigs are in 500 m (1,640 ft) water depths.
Statoil developing deepwater
pipeline repair robot
A pipeline repair robot for 1,000 m (3,281 ft) water depths is under
development by Statoil. The remotely operated welder is scheduled
for testing and emergency response deployment this year.
Measuring about 4 m (13 ft) long by 2 m (6 1/2 ft) high, the new
welding machine has been developed by Statoil and built in coopera-
tion with external suppliers.
The robot cuts out the damaged pipe section before welding in
a new piece inside an enclosed habitat. Systems are provided for
preheating and controlling the habitat atmosphere.
Work on the new device is taking place in Haugesund north of
Stavanger, where Statoils pipeline repair system pool is located.
The robot will join other remotely operated tools used in deep-
water operations, including tie-in of new pipelines in water depths
beyond the reach of divers.
Petrobras awards subsea manifolds to FMC
Petrobras has awarded $52-million contract for two subsea gas
gathering manifolds for the offshore Brazil Plangas project to FMC
Technologies Inc.
Each of the two manifolds will have eight 10-in (254-mm) inlets
and two 16-in (406 mm) outlets operated by multiplexed subsea con-
trol systems. Once installed, the manifolds will permit gas exports
from Roncador, Albacora East, and other Campos basin elds start-
ing in 2008, Petrobras says.
SUBSEA/ SURFACE SYSTEMS
Gene Kliewer Houston
Development plan for Alve in Norwegian Sea approved.
CPCC wants deepwater
technology introductions
China Petroleum & Chemical Corp. will be pushing its
foreign partners and prospective partners for more introduc-
tions to deepwater technological solutions for exploration and
production, according to Sinopecs assistant chief engineer.
Ge Weimin reportedly told Asian reporters that We (Sino-
pec) hope that in all cooperation with foreign oil frms we get
more deepwater technological and management knowledge.
He stopped short of saying that cutting-edge technological
learning opportunities would be an essential part of any contracts.
Statoil pipeline welding robot being developed.
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Bourbon expands eet
Bourbon is adding to its eet to serve the
offshore industry, placing orders in 1Q 2007
for 46 next-generation vessels to be deliv-
ered over the next four years.
The additions to the eet, Bourbon says,
are innovative high-productivity vessels that
will assist oil industry clients in developing
continental-shelf and deepwater elds.
Bourbon has offered what the company re-
fers to as three series of offshore service ves-
sels, comprising 46 units at a cost of $7,300
million.
Bourbon says 44 vessels will come from
the Sinopacic shipyards in China and two
from the West Atlantic Shipyard in Nigeria.
The two series vessels will be based on
the GPA design identical to the 36 vessels
ordered by Bourbon in April of last year:
28 AHTS GPA 254 supply and anchor-
handling tugs with 72.5 metric tons (80
short tons) traction
14 PSV GPA 654 platform supply ves-
sels with 1,600 tons dwt.
All of the new vessels are intended for
the replacement market operating in the
continental offshore in which more than 400
vessels now in service will be over 30 years
old by 2010. The characteristics of the new
vessels will also make them excellent addi-
tional supply vessels for deepwater offshore
operations, Bourbon says.
In addition to the three series and two se-
ries vessels, the company also is building one
series vessels, including four PSV, Ulstein
PX105 MACS supply vessels. The PSVs will
be 88.8 m (27 ft) long with 4,400 dwt.
The series includes two major innova-
tions, Bourbon says. One is the positioning
of engine exhaust on the water line, which
does away with the funnel and allows a 360
panoramic view from the bridge. The second
innovation is a multi application cargo solu-
tion (MACS) system that increases storage
capacity in the hold and enables different
types of cargo to be stored.
These vessels satisfy the precise needs of
the international deepwater and North Sea
offshore industry, while offering extremely
protable technological solutions to custom-
ers, the company says.
Orders placed as of Feb. 28, 2007, bring
Bourbons offshore division eet to 110 sup-
ply vessels on order. Deliveries will be made
up to September 2011.
New heavy-lift vessel for GoM
In early 1Q 2007, Crowley Maritime Corp.
christened the Marty J, the rst of three Heavy
Lift 455 series barges under construction at
Gunderson Marine in Portland, Oregon.
The three 122 m x 32 m (400 ft x 105 ft)
deck barges are to be used for project work
in the GoM.
The Marty J will work as a support vessel
for deepwater projects.
According to Crowley, the vessels deck
size and 7.6-m (25-ft) side shells provide
both the capacity and deck strength needed
to accommodate large offshore structures.
The barges will also be suitable for use
in other regions, including Alaska, the com-
pany says.
Drillship undergoes upgrade
Aban Offshore Ltd. subsidiary Aban Abra-
ham Pte. Ltd.s Aban Abraham deepwater
drillship is undergoing extensive refurbish-
ment and modication at the Sembawang
Shipyard in Singapore.
The Aban Abraham was built in Holland
in 1976 as a world-class second-generation
drillship named the Pelerin. The vessel was
operated from 1976 to 2002 in water depths
to approximately 1,400 m (4,600 ft) offshore
West Africa, Norway, Eastern Canada, and
Brazil. It was cold stacked from 2002 until
2006, when it was purchased by Aban.
When refurbishment is completed later this
year, the drillship will be capable of drilling in
water depths to 2,100 m (6,900 ft). Once com-
missioned, the Aban Abraham is scheduled to
be on contract for a third-party operator be-
fore beginning a drilling campaign in the Gulf
of Guinea for Addax Petroleum.
Lamprell lengthens
order book
The UAEs Lamprell Plc. has landed $84.5
million in new contract awards.
One of the awards is a rehabilitation proj-
ect for the Nabors 660 jackup, which was
damaged when Hurricane Katrina swept
through the Gulf of Mexico in 2005.
The initial $43-million contract is for the
comprehensive rehabilitation of the jackup.
An additional work scope, with an antici-
pated value of $25 million, is under develop-
ment and has not yet been approved.
Nabors acquired the rig, originally named
Ocean Warwick, and transported it via the
22,000-metric-ton (short ton) deck capacity
Hamriyah Pride, a semisubmersible barge
owned and operated by Lamprell to the Lam-
prell facilities in the UAE. The rig arrived at
Hamriyah on Nov. 11 2006.
The contract includes removing storm
damaged materials, fabricating a replacement
drill oor, legs, spud cans, and sponsons, re-
tting the living quarters, and installing ve
new engines and a complete drilling package.
The project is expected to be completed in
November 2007.
Lamprell also was awarded a $36-million
contract to refurbish four GlobalSantaFe jack-
ups, also damaged in the GoM. The rigs were
scheduled to arrive in Lamprells Sharjah yard
in mid-January 2007.
The refurbishment work was scheduled
to be completed in April 2007 and the units
deployed to Saudi Arabia on long-term char-
ter for Saudi Aramco.
The third 4Q 2006 award was for topside
modules for the Smart 1 FPSO. Aker Float-
ing Production contracted for $5.1 million in
fabrication from the Lamprell yard.
This contract marks Aker FPs rst FPSO
award to Lamprell.
The project scope covers fabrication of the
main process module, two riser balconies,
VESSELS, RI GS, UPGRADES
The Marty J will work as a support vessel for deepwater projects.
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__________
and the knock out drum skid. The award
also includes an extension option to build
the topsides for Aker FP Smart 2 FPSO. All
elements will be fabricated at Lamprells off-
shore construction facility in the Jebel Ali
Free Zone in Dubai. Work is scheduled for
completion in Nov. 2007.
The Smart FPSOs are a modular design
suitable for production of up to 60,000 b/d
of oil. The FPSOs are suitable for producing
medium-sized elds around the world and
are a viable alternative to typical early pro-
duction systems, Lamprell says.
Keppel delivers Vietnams
rst fully-owned rig
Keppel Offshore & Marine Ltd. subsidiary
Keppel FELS Ltd. has delivered the PV Drill-
ing I, a KFELS B Class jackup rig, to PetroVi-
etnam Drilling and Well Services Joint Stock
Co.
The jackup was delivered two months ahead
of time and within budget, Keppel says.
Built to Keppels proprietary design, the
KFELS B Class rig is PV Drillings rst new-
build jackup. The PV Drilling I is the thir-
teenth KFELS B Class jackup rig delivered
since the introduction of the design in 2000.
The PV Drilling I is customized to PV Drill-
ings specications for operations in water
depths to 91 m (300 ft) and drilling depths
to 6,096 m (20,000 ft). The rig has accom-
modations for 110 and is readily upgrade-
able for higher drilling capabilities in water
depths to 107 m (350 ft). The jackup will be-
gin working for the Hoan Vu Joint Operating
Co. offshore Vietnam in October.
Global Resources
reactivates rig
Global Resources Engineering project servic-
es division has completed a reactivation program
onboard the Essar Oil semisubmersible drilling
rig Essar Wildcat, formerly the Transocean Wild-
cat. Essar Oil awarded the $50-million contract in
Dec. 2006. The semi had been cold stacked in
the Cromarty Firth, Invergordon, since 2002.
The contract lasted ten weeks and involved
more than 260 personnel at peak operation,
says Terry Lelean, senior project manager.
The rst step in the project involved lift-
ing anchors and towing the rig to the quay-
side at Queens Dock, Lelean says, which in
itself represented a number of challenges,
as much of the machinery had not been op-
erational for ve years.
When the rig arrived in Queens Dock,
the project team dened a work scope that
would recertify the rig for tness so it could
be towed to India, where it will begin a drill-
ing program in 3Q 2007.
Hydro to charter FPSO
for Peregrino eld
Hydro and Anadarko agreed early this year
to charter an FPSO to develop the Peregrino
eld offshore Brazil.
AP Mller-Mrsk A/S will build the FPSO,
which will be operated and maintained by one
of the companys Brazilian subsidiaries.
The partnership expects the FPSO to be
ready for installation on the eld in early 2010.
This agreement is subject to the owners
nal sanctioning of the project and the au-
thorities approval of the Peregrino eld de-
velopment plan.
The Peregrino eld is about 85 km (53 mi)
offshore Brazil in about 100 m (328 ft) water
depth. Recoverable resources are estimated
at 300-600 MMbbl of heavy oil.
The eld will be developed with an FPSO
and two drilling platforms. There will be 30
horizontal production wells and seven water
injection wells.
Production startup is planned for 2010.
Hydro operates the eld with 50% interest
during the project planning phase. Anadar-
ko, which owns the other 50% interest, will
be operator during the project execution
and operation phases.
Petrolia Drilling gets
semi contract
Petrobras has signed a ve-year drilling
contract with Larsen Oil and Gas Ltd. of Ab-
erdeen Scotland for the newbuild deepwater
semisubmersible drilling rig PetroRig 2, rat-
ed for 2,400 m (7,874 ft) water depth.
Operations are scheduled to start in Bra-
zil by December 2009. The rig is owned by
PetroMENA AS and is being built at Jurong
Shipyard in Singapore.
The award of this contract gives Larsen
and PetroMENA the opportunity to declare
the third option to build a similar deepwater
semisubmersible at the Jurong yard with de-
livery in 1Q 2010.
Another Larsen rig, PetroRig 1, owned by
PetroMENA AS and also under construction
at Jurong Shipyard, has been contracted by
Petrobras America to drill in the Gulf of
Mexico. The rig is rated for 3,000 m (9,842
ft) water depth.
In addition to the two semisubmersibles,
there are two heavy-duty jackups , owned by
PetroJack ASA and managed by Larsen Oil
& Gas, under construction at Jurong ship-
yard. Delivery of the jackups, which will be
capable of drilling in 114 m (375 ft) water
depth, is scheduled for 2008.
VESSELS, RI GS, UPGRADES
The ESSAR Wildcat rig
in the Cromarty Firth
has been reactivated.
Keppel delivered the PV Drilling I jackup two
months ahead of schedule.
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Coiled tubing
logging head
AnTech Ltd has developed a new coiled
tubing logging head (CTLH). This device
has a remotely operated emergency electri-
cal disconnect that makes it possible to car-
ry out a controlled release from the coiled
tubing.
Running electric logging tools inside the
coiled tubing improves the effectiveness of
many coiled tubing operations. Antech says
that the CTLH provides a safe and secure
means of connecting the logging tools to the
coiled tubing and the electric line.
The electric release disconnect (ERD)
version makes the CTLH better by elimi-
nating the possibility of shock or pressure
spikes activating the release. Without one,
you run a major risk of losing your well
when the tool string gets stuck. When this
happens, the weakest point on your string
is the coiled tubing at the top of the well. If
you pull too hard, youll break the coiled tub-
ing at the surface, and be forced to remove
a stuck tool string with hundreds of feet of
coiled tubing sitting on top of it.
The disconnect repositions the weak point
to a location just below the coiled tubing, so
that when the coiled tubing is pulled on, the
weak point activates and the coiled tubing
can be retrieved.
A good disconnect will also incorporate
a shing neck at the point of separation but
should not disconnect unintentionally due
to shocks and pressure spikes. This is par-
ticularly important because mechanical and
hydraulic disconnects can be susceptible to
a sudden jolt or increase in pressure.
The ERD works by applying an electric
current to the CTLH. A sustained ow of cur-
rent activates the release with in two minutes,
leaving a shing neck exposed at the top of
the remaining tool. It will not inadvertently
activate due to pressure or shock because it
is not a weak point until the electric current
is activated.
In addition, it cannot be activated by operat-
ing other electrical tools in the string because
there is a protective circuit built into the ERD
that requires a sustained reverse current to
activate the release.
The ERD version allows uid circulation
and pressure deployment. The CTLH has a
built-in circulation section with dual apper
valves, and a swivel lower adaptor to allow
deployment under pressure of long strings,
such as perforating guns.
Removing wellbore
scale build-up
Aker Kvaerner Well Service engineering
effort helped solve industrys search for an an-
swer to removing wellbore scale build-up. The
result was the development and commercial-
ization of the Cone Crusher scale mill tool.
The tool, run in conjunction with the Pow-
erTrac Advance (PTA) wireline tractor, is
set up with a special rotation adapter, mill
gear, and shock absorber for weight-on-bit
control. The PTA tractor wheel section can
be utilized as an anchoring device in verti-
cal sections and an anchoring and forward
thrust device in horizontal sections of the
well.
The Cone Crusher technology is based
on a design where a main body with four cut-
ting cones is rotating. Each cutting cone is
free-rotating in its own axis independently of
the main body RPM. Each cone has a unique
cutting pattern, which crushes the scale, al-
lowing the ow of oil or gas to resume.
By running this tool, industry has an ad-
ditional method for scale removal, especially
in extended-reach and horizontal wells. The
tool is an intervention method to restore
well productivity and can be a cost-effective
alternative to coiled tubing services.
Clean N Cor
technology
The Nalco Company has developed a
cleaning and corrosion inhibitor treatment
program, Clean N Cor technology, designed
to protect and maximize production from oil-
elds with oil sludge deposition challenges.
The deposition of sludge, often referred
to as schmoo, on the inside of pipelines can
cause serious injection restraints in produced
water injection systems, increased incidence
of localized corrosion and higher operating
costs. This technology provides a comprehen-
sive treatment solution that removes schmoo
sludge deposits from inner pipe walls, lters
equipment, and then prevents aggressive cor-
rosion from taking place.
In one operators water injection system,
this level of schmoo removal translated to
75% more water being injected, resulting in
increased oil production and an 800% return
on investment.
Once the schmoo had been removed, the
treatment program prevented it from re-ad-
sorbing. This technology then protected the
pipe surface by providing a strong and per-
sistent lm that acted as a barrier to corro-
sive uids. The required dosage to maintain
an acceptably low corrosion rate was nearly
20% lower than the dosage required for con-
ventional corrosion inhibitors.
Petrel technology
Norsk Hydro has chosen Schlumbergers
Petrel software as its workow tool for sub-
surface reservoir characterization.
Hydro exploration and production asset
teams worldwide will use the Petrel software
to develop and rene workows across mul-
tiple technical disciplines in a deal worth US
$13 million.
This ability to share knowledge and in-
stantly update models with new data will
optimize exploration and development plans
based on analysis of numerous scenarios.
The model centric workow allows explora-
tion and production asset teams to benet
from greater collaboration.
According to Schlumberger, the tool is a
complete seismic-to-simulation software so-
lution, enabling static to dynamic workows
that extend into drilling and economics. All
work processes lead to one unied earth
model, enabling better decisions in tight
timeframes with reduced uncertainty.
OverDrive system
Weatherfords OverDrive system was de-
veloped to enhance the safety and efciency
of top-drive casing running and drilling op-
erations.
The system is made up of several compo-
nents, primarily the TorkDrive heavy duty
and modular tools, which are mounted di-
rectly to the rigs top drive for making up
and breaking out casing. These tools com-
bine the functions of conventional power
tongs, bails, elevators, thread compensa-
tors, and ll-up circulation tools.
The system will make up and break out
faster with accurate thread compensation,
the ability to switch between ll-up and cir-
culating functions without repositioning the
tool, high-volume circulation and uid re-
covery, independent torque measurement,
and reduced risk of operator errors with
multiple safety interlocks.
The system can rotate and push down the
casing while running to help prevent differ-
ential sticking, achieve high-speed string ro-
tation with the top drive when drilling/ream-
ing-with-casing and removing even more
personnel from hazardous rig oor opera-
tions to remove risk.
DRI LLI NG & PRODUCTI ON
Frank Hartley Houston
The Cone Crusher technology is based on a
main body with four rotating cutting cones.
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RHEO-LOGIC
SM
Constant Rheology Synthetic Base Mud
In deepwater applications, Synthetic Base Mud systems (SBMs) are the drilling fluids
of choice in order to manage potential risks and well costs. However, with conventional
SBMs, managing hydraulic pressure can be challenging as the effects of temperature
and pressure change the viscosity of the fluid downhole. This often leads to incidents
of lost circulation, increased NPT and higher project costs.
Baker Hughes Drilling Fluids introduces RHEO-LOGIC
SM
, a new generation of
Constant Rheology SBM bringing greatly improved pressure management and
drilling performance to the deepwater industry.
RHEO-LOGIC is simple by design, easy to use, and does not exhibit the elevated
viscosity profile of competitors systems. This low maintenance, cost effective system has
been repeatedly field proven to reduce mud losses, allow increased trip speeds, improve
hole cleaning, and enhance overall drilling efficiency in critical deepwater wells.
For all your deepwater SBM applications, choose RHEO-LOGIC. Its Perfectly Logical.
www.bakerhughes.com/drillingfluids
W h e n y o u h a v e t o g e t i t r i g h t . . .
Its Perfectly Logical
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GEOSCI ENCES
Gene Kliewer Houston
Rocksourse contracts Elec-
troMagnetic GeoServices
Rocksource ASA has awarded a NOK 70
million ($11.4 million) survey on the Nor-
wegian continental shelf to ElecgtroMag-
netic GeoServices (EMGS) AS. The survey
covers 25 lines, but can be increased at
Rocksources option to 50 lines. The work is
scheduled to take three months to complete,
starting this summer.
This contract represents a major step in
implementing our strategy and allows us to
utilize our competitive strengths in handling
and interpreting electromagnetic data, says
Trygve Pederson, CEO. Rocksource will use
these datasets to select prospects with high
probability of nding hydrocarbons prior to
investing in expensive 3D seismic and explo-
ration wells. This will increase our overall ex-
ploration efciency.
We are very much looking forward to
this collaboration. says Dr. Honny Hest-
hammer, chief technology ofcer of Rock-
source. EMGS provides data of high qual-
ity and Rocksource has its own proprietary
system to handle the huge amounts of data
to be acquired with respect to the crucial as-
pects of integrated processing and analyses
for the decision making process.
North Sea cable
installation under way
Multi-Transient Electromagnetic has con-
tracted Global Marine Systems Ltd. to install
cable for the Venture Production Plc. oil
nder project. This is the rst time MTEM
technology will be used offshore to seek oil
and gas. Global Marines Sovereign cable ship
will lay receiver cable on the seaoor at water
depths of 80 m (262 ft) to 100 m (328 ft). The
recordings will be transmitted back to the
Sovereigns onboard recording facilities.
Barbados 2D
campaign complete
Acquisition of 2D long-offset seismic off-
shore Barbados by Waveeld Inseis is com-
plete. The project, done in cooperation with
the Ministry of Energy and the Environ-
ment, covers the entire Barbados shelf. The
government is expected to announce its rst
offshore lease round for June of this year
with this seismic data available to bidders.
This rst phase of the campaign collected
6,000 km (3,728 mi) of long offset multi -client
2D data using the M/V Akademik Nemchinov
under contract to Waveeld. The vessel towed
an 11,500 m (37,730 ft) streamer and used an
air gun source for improved imaging of both
shallow and deeper targets. Marine gravity
and magnetic data were also recorded during
the survey. Data processing is under way at
perforReuters by Geotrace Technology (UK)
under contract with Waveeld Inseis.
I am certainly pleased with the joint agree-
ment between the Ministry and Waveeld In-
seis, says Andre Brathwaite, chief geologist,
Barbados. The data produced from this sur-
vey has so far proven to be encouraging and I
believe that this will generate increased inter-
est in the Barbados offshore potential.
The survey was designed to establish the
major hydrocarbon prospective trends in the
Barbados offshore sector. The survey grid
was designed to delineate the structural rela-
tions between the Tobago basin, the Barba-
dos Ridge and Barbados Trough, as well as
the northwest part of the Barbados Ridge.
This survey also will tie together a deep seis-
mic data set that will surround the island and
provide important ties both to the onshore
geology of Barbados and to the Sandy Lane
well 145 km (90 mi) south of Barbados, just
north of the border with Trinidad Tobago.
This modern, long-offset seismic campaign
will enable explorers to achieve a much better
regional understanding of the exploration po-
tential of the Barbados offshore sector, which
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GEOSCI ENCES
already has attracted signicant interest from
many of the international oil companies, says
Jan B. Gateman, senior VP G&G of Waveeld
Inseis. The onshore Woodbourne oileld that
has been in production since the 1970s is in it-
self a proof of the existence of a mature source
rock in this area. Also taking into account the
hydrocarbon discoveries in the northern parts
of the offshore sector of Trinidad and Tobago,
it is very likely that an active petroleum system
is present on the Barbados continental shelf.
Nido identies structures
off Palawan Island
Nido Petroleum Ltd. has completed seismic
acquisition programs in SC 54 and 58 offshore
North West Palawan and says preliminary
data interpretation, coupled with existing seis-
mic results, has identied 675 structures with
a range of play types and water depths. Fur-
ther work in 3Q 2007 is expected to result in
dening drilling prospects from mid-2008.
Automated handling
system contracted
Eastern Echo (Dubai) has awarded a NOK
200 million ($32.7 million) contract to ODIM
ASA for automated 3D seismic handling sys-
tems. The contract covers complete back-
deck hardware for four vessels handling 10
streamers each. Most of the equipment is
scheduled for delivery in 2008.
The seismic market is still good, and we
expect still high activity both among new
and well established companies, says Idar
Hatly, vice president Seismic at ODIM.
Aker contracts
work off Norway
Aker Exploration has contracted Electro-
Magnetic GeoServices to conduct seabed
logging on the Norwegian continental shelf.
Offshore eld survey and interpretation
work is scheduled to begin this month. The
results will be used in choosing the best
drilling prospects and prioritizing explora-
tion areas in license applications on the Nor-
wegian continental shelf.
Aker Explorations $37.5-million contract
with EMGS covers survey and interpretation
work in 2007. Aker holds options for four
one-year extensions of the contract. These
options are for the rst purpose-built seabed
logging vessel that EMGS will operate. The
vessel is under construction and scheduled
to enter service in March 2008.
The combination of an ultra-modern rig,
3D seismic data, and our new, close coopera-
tion with EMGS, the worlds leader in Sea-
bed Logging, makes Aker Exploration even
stronger, says Brd Johansen, Aker Explo-
ration president and CEO. By implementing
new technology in an innovative manner, we
increase the likelihood of locating commer-
cially viable reservoirs.
Nide Petroleums Palawan Island seismic runs.
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GoM to see $7 billion
in deepwater drilling
Petrobras ups domestic exploration spending
T
he US Minerals Management Service
estimates undiscovered Gulf of Mex-
ico reserves at 50 Bboe. Estimated
capex for 2007 of $7 billion for deep-
water developments alone will con-
tribute to uncovering new GoM reserves.
Canadas east coast brings a mixed bag to
the table this year. EnCanas resumed activ-
ity on the Deep Panuke gas development is
breathing life back into Nova Scotias off-
shore just as drilling is put on hold off New-
foundland. And Brazil has earmarked $38
billion for E&P through 2010.
Gulf of Mexico
The US GoM saw a string of successes
last year.
Anadarko hit oil with Mission Deep in
Green Canyon block 955. This nd was the
ninth out of the 12 tests the company carried
out in the GoM last year. Anadarko plans to
drill 10-15 exploration wells in the GoM in
the next two years.
Nexen had a good 2006 as well, with the
Ringo and Longhorn nds in Mississippi
Canyon block 546. Eni found gas with Long-
horn North in nearby block 502, and BPs
Kaskida logged 244 m (800 ft) of net oil sands
in Keathley Canyon block 295. BP is planning
appraisal drilling on Kaskida this year.
Hess Pony, logging 145 m (475 ft) of oil
in Green Canyon block 468, hit a reservoir
with estimated total hydrocarbon resources
of 100-600 MMboe. And Totals Gotcha in Al-
aminos Canyon block 856 hit oil as well. Got-
cha, adjacent to the Great White discovery
in neighboring block 857, will likely be tied
back to Great White, which will be produced
through a spar beginning in 2009 or 2010.
Kerr-McGee (now Anadarko) found the
Caesar oil discovery on Green Canyon block
683 and the Claymore gas eld in Atwater
Valley block 140.
Noble Energy hit with Raton in Mississippi
Canyon block 248 and Redrock in block 204.
This year will be another busy year for ex-
ploration. And a number of discoveries will
go into production. BPs Atlantis is sched-
uled for rst production in mid-year, and
Anadarkos Independence Hub is due online
in the third quarter.
Genghis Khan, operated by BHP Billiton,
is to come onstream by mid-year through a
tie-back to the Marco Polo TLP, with the Nep-
tune eld coming online by year-end. Petro-
bras Cottonwood eld is also scheduled to
begin production this year.
The Mexican GoM also saw some signi-
cant drilling in 2006.
The most exciting discovery in the Mexi-
can Gulf last year was the Noxal 1 wildcat,
drilled by Pemex in the Catemaco fold belt.
Noxal 1 is Mexicos rst deepwater gas dis-
covery. An IHS report places reserves esti-
mates at 245 bcf.
Atlantic Canada
There is mixed news coming out of Atlan-
tic Canada.
Husky Energy Inc. has had a busy year
on the White Rose eld in the Jeanne dArc
basin off Newfoundland and Labrador. The
company completed the White Rose delinea-
tion program in late 2006 and in early April
this year received approval to increase pro-
duction to 140,000 b/d of oil for a maximum
annual production rate of 50 MMbbl.
Husky is evaluating opportunities for de-
veloping newly discovered resources from
the West White Rose and North Amethyst
elds. Husky and partner Hydro also had a
signicant discovery with the West Bonne
Bay F-12 well nearby during delineation
drilling and is now analyzing core and uid
samples as well as wireline log data to esti-
mate recoverable resources.
The company will spend $290 million next
year in a program that includes drilling and
completion of a seventh production well on
White Rose and delineation of the O-28 dis-
covery in the West Avalon Pool north of the
White Rose development.
Drilling in the deepwater Orphan basin
has not been so successful. Chevrons re-
peated problems with the Eirik Raude semi-
submersible led to suspension of drilling
activities. Resumed activity is dependent on
a very tight rig market.
The good news off Nova Scotia is that En-
Cana is going to move ahead with the Deep
Panuke project. The company is reportedly
looking for a jackup rig for a work program
that includes re-entering four wells on the
eld and drilling two more, a production
well and an acid gas injection well.
An ofcial request for bids is to be issued
in May, with an award following project sanc-
tion, which is expected in 4Q 2007.
Trinidad
In January 2005, BHP Billiton started pro-
duction from the Angostura eld in block
2(c) off Trinidads northeast coast. Angos-
tura contains an estimated 310 MMbbl of
recoverable oil reserves.
The next big news off Trinidad came in
mid-July 2006, when BG Group and its part-
ner Chevron delivered rst gas from the
Dolphin Deep development to the onshore
processing facilities at Beacheld on the
southeast coast.
Dolphin Deep is the rst subsea develop-
ment in Trinidad and Tobago.
Judy Maksoud
International Editor
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Americas offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599
Latin America 102 27 20,762 7,111 340 6 23 4 0 5 91 1 3 3,898 1,700
North America 89 109 3,432 10,345 479 7 2 8 9 0 51 10 20 8,201 98
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The BG-operated eld is 83 km (52 mi) off
the east coast of Trinidad in the East Coast
Marine Area (ECMA). The ECMA contains
four natural gas elds: Dolphin, Dolphin
Deep, Starsh, and Manatee.
The Manatee eld, discovered by BG and
Chevron in January 2005, is part of a cross-bor-
der accumulation that stretches into neighboring
Venezuela. Monetization options for Manatee
gas are under review. Exploration drilling plans
within the ECMA also are being evaluated.
More exploration also is under way.
In mid-November, BHP hit oil with the
Ruby-1 exploration in block 3(a), 48 km (30
mi) off the northeast coast and 8 km (5 mi)
east of the central processing platform for
the Greater Angostura eld on block 2(C).
Ruby-1 was drilled to a TD of 1,753 m
(5,750 ft) and encountered 366 m (1,200 ft)
of hydrocarbon bearing sands, including
more than 244 m (800 ft) of net pay.
Canadian Superior is just launching its ex-
ploration program in Trinidad with the Vic-
tory 1 well on the Intrepid block 5(c), which
lies 97 km (60 mi) off the east coast.
The Kan Tan IV semisubmersible will
drill two additional wells following Victory
1 on separate natural gas prospects on the
block. The initial three-well program will
take a year to complete.
Canadas Talisman Energy Inc. has plans
for the region as well. The company has bud-
geted $65 million to drill at least two onshore
and four offshore wells this year.
Venezuela
The two big projects offshore Venezuela
are Plataforma Deltana and Corocoro.
Plataforma Deltana lies 240 km (149 mi)
from the Orinoco Delta.
Statoil won operatorship of block 4 on
Plataforma Deltana through a competitive
bidding process in February 2003. Block 4
covers 1,435 sq km (554 sq mi) in 200 m to
800 m (656-2,625 ft) water depth in the gas-
rich Columbus basin along the border with
Trinidad and Tobago. The entire Plataforma
Deltana area, which includes ve separately
licensed blocks, covers 32,000 sq km (12,355
sq mi).
A number of oil and gas discoveries have
been made on the Trinidad side of the bor-
der, where exploration is more mature.
For licensing, Plataforma Deltana has been
separated into ve blocks: block 1, site of the
Dorado discovery; block 2, awarded to Chev-
ronTexaco in 2003 and home of the Loran gas
eld; block 3, also licensed to ChevronTexaco;
block 4, licensed to Statoil that includes the Co-
cuina gas nd; and block 5 which was offered
for license but did not receive bids.
The Statoil license includes an explora-
tion period of four years, with a commitment
to drill three exploration wells.
Statoil completed the Cocuina 2X well in
December 2006 and conrmed the presence
of dry gas. The next two wells to be drilled
are Ballena 1X and Orca BX. This explora-
tion program is due to be completed by Oct.
2007.
Meanwhile, ChevronTexaco, which oper-
ates blocks 2 and 3, has made several signi-
cant gas discoveries.
The operator hit gas in 2006 on the Loran
eld in block 2. In block 3, Chevron hit gas
the previous year with the Macuira well.
Macuira encountered six gas intervals
with total gross thickness of 140 m (456 ft)
and tested a rate of 51 MMcf/d.
The discovery is in close proximity to the
Loran natural gas eld and provides signi-
cant resources that will be included in the
detailed evaluation as one potential gas sup-
ply source of what would be Venezuelas rst
LNG train. Seismic work elsewhere in block
3 began in 2006.
ConocoPhillips expects to bring the Coro-
coro eld in the Gulf of Paria onstream this
year, but not as early as the operator would
have liked. The eld has already missed its 1Q
2007 startup goal. The delay in reaching rst
oil means Corocoro probably will not reach its
full production potential until late next year.
These setbacks are symptomatic of Pd-
VSAs ever-changing rules. ConocoPhillips
initially planned to begin drilling Corocoro in
late 2004, but ran into contract and tax com-
plications with PdVSA, which insisted on the
operator building a drilling platform locally
to aid domestic oil service companies.
Venezuela also upped the royalty rate on
the project to 16.6% from 1%. The royalty rate
will increase again, this time to 33.3%, when
production begins. The ever changing, ever
increasing royalty rates in conjunction with
political hostility toward the US on behalf of
President Hugo Chavez has made Venezu-
ela a less than attractive draw for US compa-
nies, despite enormous reserves.
The Corocoro eld was declared commer-
cial ve years ago. Venezuela hopes to use
production on Corocoro, which is to reach
120,000 b/d, to help offset declining domestic
production. The eld contains an estimated
500 million barrels of recoverable oil.
Leading edge exploration is underway
offshore with SCAN Geophysical ASAs 3D
seismic survey, which was contracted by
Chevron. The survey covers two separate
areas and is expected to take several months
to complete.
Brazil
In April, Petrobras found a new light oil
eld in the Esprito Santo basin, the result
of the 4-ESS-164A well. The nd, 12 km (7.5
mi) northeast of the Golnho eld, has an
estimated volume of 280 MMboe of oil.
Around the same time, Petrobras drilled well
4-ESS-160 in the basin just adjacent to the Goln-
ho eld, which also resulted in a new discovery
with estimated volumes of 60-80 MMboe. Con-
sidering the Golnho elds earlier estimates at
250 MMboe, this new nd increases potential
reserves in the region to 310-330 MMboe.
With these two recent discoveries, Petro-
bras estimates that potential light oil reserves
in the basin now stand at 600 MMboe.
Petrobas had another discovery in the
Santos basin in October. The ultra deepwater
Tupi eld is in block BM-S-11, 250 km (155
mi) offshore in 2,126 m (6,975 ft) water depth.
Tupi reportedly is a large structure with sig-
nicant reserves potential. The discovery led
Petrobras and BG to agree on an accelerated
exploration and appraisal program.
This discovery follows an earlier nd last
year 70 km (43.5 mi) away in block BM-S-10
Brazil started off 2007 by laying plans for
a busy schedule through 2010.
To keep increasing production in the long
term, Petrobras has been enhancing its ex-
ploratory portfolio and now has more than
100 local blocks in addition to its overseas
acreage.
Seeking to maintain Brazils oil self-suf-
ciency, Petrobras has a portfolio that in-
cludes dozens of projects and will involve
$38 billion in investments in exploration and
production through 2010.
Petrobras will invest $7.4 million in explo-
ration alone through 2010, including invest-
ments made by partners and third parties.
The companys production goal for 2015
is 4,556,000 b/d of oil.
The operator took a step toward increas-
ing production in January when it brought
the Espadarte eld online via the Cidade do
Rio de Janeiro FPSO.
Full production is expected this year with
nine subsea completions ve for produc-
tion and four for water injection. A new oil
lifting system developed by Cenpes, the
Petrobras research center, will use subsea
pumps to help move the oil onto the FPSO.
The vessel can produce 100,000 b/d of oil,
2.5 MMcm/d (88 MMcf/d) of gas, and store
1.6 MMbbl of oil.
Devon Energy Corp. and its Korean part-
ner SK Corp. plans to drill three more explo-
ration wells this year in the BM-C-8 conces-
sion in the Campos basin offshore Brazil.
Devon will produce the eld with the Polvo
FPSO, which is designed to produce 90,000
b/d of oil, handle 135,000 b/d of water, and
compress 7.5 MMcf/d of natural gas.
The FPSO is to produce 50,000 b/d of oil
from the shallow-water eld, which is to see
rst oil in July 2007.
An interesting side note on Brazil is the
recent Petrobras/Gazprom memorandum of
understanding. Petrobras and Russias Gaz-
prom, the worlds biggest gas company, have
signed a memorandum of understanding to
identify cooperation opportunities for oil and
gas projects at a meeting that took place in
Brazil at the end of February.
Three potential initiatives include cooper-
ation possibilities in LNG, natural gas stor-
age, and natural gas transportation system
projects.
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EVOLUTION
Helix Energy Solutions is in the process of re-developing the Phoenix fields (also known
as the Typhoon and Boris fields) in the Gulf of Mexico using our forward-thinking
methodologies. The field is owned by our oil and gas production company, ERT GOM,
and will be developed using our contracting services assets, the MSV Q4000 and the
Intrepid. Production from these fields will be processed on a dynamic- positioned, ship-
shaped floating production unit (FPU) with a quick disconnect riser system. The MSV
Q4000 is scheduled to drill and complete deepwater wells in the Phoenix basin using
slimbore technology and a surface BOP. Both the FPU and the drilling technique are
novel concepts for the Gulf of Mexico.
Helix Energy Solutions has evolved
from a small diving company,
twenty years ago, into a significant
integrated provider of life of field
solutions for offshore fields in
general and marginal fields in
particular.
The range of our services and our
in-house E&P expertise allow us to
provide innovative solutions on
deepwater projects such as the
Phoenix development.
We are proud of our growth and
technical achievement and of the
recognition we have received
through two important awards from
the Offshore Technology Council
(OTC) this year. Our Executive
Chairman, Owen Kratz, is a
recipient of the OTC Heritage
Award for outstanding contribution
to our industry, and the company is
a recipient of the Distinguished
Achievement Award for our role in
the development of the Marco Polo
Project - one of the deepest tension
leg platforms in the world.
The Helix Advantage
400 North Sam Houston Parkway
Houston, Texas 77060
281-618-0400
www.HelixESG.com
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North Sea holds steady
Mediterranean exploration targets frontiers
T
hough there has been resurgence in
E&P in the UK North Sea, there is
some skepticism about whether the
level of investment will continue. High
rig rates and a lack of new tax incen-
tives could cause companies to rein in their
drilling plans.
On a more optimistic note, Hannon West-
wood expects to see 50-60 exploration and
appraisal wells this year. This number is just
short of the 61 E&A wells spudded in 2005.
The company expects the nal analysis of
2006 to prove that it was one of the most suc-
cessful years for reserves additions in the
North Sea since the early 1990s. This news
is encouraging for continued exploration
and appraisal drilling, the company says.
Last year saw some signicant discoveries,
the largest of which was ConocoPhillips Jas-
mine gas and condensate eld last Septem-
ber at a reported 175 MMboe. Jasmine, the
biggest North Sea gas nd since Buzzard,
lies in blocks 30/6 and 30/7 in the Central
North Sea 9 km (5 mi) west of the Judy devel-
opment. Production is expected in 2010.
In 2Q 2006, Canadas Oilexco found oil
on the Disraeli prospect in the UK Central
North Sea on block 21/23a. Disraeli lies
southwest of PetroCanadas Saxon, a 2005
oil nd in a similar geological setting.
Gaz de France Britain also had a new nd,
170 km (106 mi) off Englands Lincolnshire
coast in the southern gas basin. The Cygnus
44/12-2 well encountered several gas-bear-
ing zones, conrming the northern exten-
sion of prospectivity in this part of the south-
ern sector.
Last June, BG Group and Amerada achieved
rst gas from their jointly developed Atlan-
tic and Cromarty elds in the Outer Moray
Firth.
In July 2006, Chevron North Sea Ltd. brought
the Captain Area C project in block 13/22a in
the Inner Moray Firth onstream at a rate of
9,000 b/d of oil, with peak production of 15,000
b/d achieved soon after startup.
And last November, Serica Energy Plc.
announced initial results of the Columbus
exploratory well in block 23/16f. The well
encountered a gross gas column of at least
38 m (125 ft).
Offshore southern Ireland, Marathon Oil
took control of the Seven Heads gas eld in
the Celtic Sea early last year. In 2007, the
company hopes to mount a probe of the po-
tentially giant deepwater structure Killal in
western Irelands Rockall basin.
Also offshore Ireland, Dublin-based Provi-
dence Resources farmed out a portion of the
Dunquin prospect to ExxonMobil. The Dun-
quin license extends over 700 sq km (270
sq mi) in the Porcupine basin. The farm-in
entitles ExxonMobil to 80% of Dunquin. In
return, ExxonMobil will nance an upcom-
ing 2D long-offset seismic survey over the
acreage and up to two exploration wells.
Irelands government accepted applica-
tions early last year for acreage in the Slyne-
Erris-Donegal bidding round. Among the ap-
plicants, Island Oil & Gas bid for blocks in the
Southern Slyne and Donegal Basins, where
potential structures have been mapped.
In June, Island Oil & Gas tested gas with
the rst well of its 2006-2007 Celtic Sea drill-
ing program. In July, the company tested gas
from its second well on the Old Head of Kin-
sale prospect. This is the rst new discovery
in the region since 1990.
Well log analysis completed in August in-
dicates the gas extends over more than 22
sq km (8.5 sq mi) and that potential volumes
of gas in place are 90-120 bcf.
Meanwhile, a number of small companies
are shooting deepwater seismic surveys with
a view to bringing in partners if the data indi-
cate commercial reserves.
Dutch, Danish sectors
In early Jan. 2006, Gaz de France brought
four gas elds onstream simultaneously,
doubling its production capacity off The
Netherlands. The $401-million project in-
volved construction of two new platforms
and a subsea completion.
In 1Q 2006, Unocal Netherlands began its
rst major new project in the region following
its merger with Chevron. In partnership with
Dyas, DSM, and Dutch state company EBN,
Unocals A&B development encompasses
two exploration and ve production licenses
in the northern part of the Dutch sector.
The Danish Energy Agency (DEA) expects
exploration activity offshore Denmark to in-
tensify following the award of 14 new licenses
last year. The DEA says the combined 6th Li-
censing Round programs carry a commitment
for seven rm wells and 12 contingent wells,
with an overall investment pledge of around
$413 million.
Four of the successful bidders are rst-
time operators on the shelf. One of them,
Wintershall, recently outlined plans to begin
drilling its three blocks in 2008.
The DEA says in 2005 the total Danish
acreage covered by new seismic surveys was
the largest in the sector for over ve years.
Positive survey results could lay the frame-
work for additional exploration drilling.
Judy Maksoud
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Europe offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599
Eastern Europe 19 0 5,373 0 2 0 0 0 0 0 4 1 0 2,831 0
Southern Europe 36 5 388 153 14 0 2 0 0 2 22 1 0 2,103 4
NWECS 303 34 9,422 7,722 678 3 17 0 0 4 74 0 13 9,747 460
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Norwegian North Sea
Norway saw a fairly busy 2006 as well.
Norways Energy Ministry opened acreage
under the countrys 2006 pre-dened areas
scheme (APA 2006). The 48 production li-
censes awarded are a record for a Norwe-
gian round, and a further 10 could be issued
following processing of work plans.
The permits, covering 85 blocks and part-
blocks, were divided among 33 oil companies,
including eight new to the Norwegian shelf.
The biggest winner in terms of license posi-
tions was Revus Energy with nine blocks. The
company already had plans to participate in up
to eight Norwegian shelf wells this year.
North Sea elds under development that
are expected to begin production this year
include Alvheim, Blane (which is unitized
across UK/Norway median line), Enoch (in
block 16/13a of the UKCS and block 15/5 of
the NCS), Vilje (north of the Heimdal eld),
and Volve in the southern Viking Graben area
between Heimdal and Sleipner. Tyrihans, in
the Halten Banken area 35 km (22 mi) south-
east of the Kristin eld in 285 m (935 ft) of
water, is also under development.
Norwegian Sea
In mid-March Norways government ap-
proved Statoils $390-million development plan
for the Alve gas-condensate eld in the Nor-
wegian Sea. Drilling is expected to begin in
August, with production by the end of 2008.
Statoil will develop the 6.78 bcm (239 bcf),
8.3 MMbbl eld in phases via a four-slot sub-
sea template tied back to the Norne FPSO.
BG will drill the undeveloped Bream oil
eld in the southern part of the Norwegian
North Sea this year. And Total will drill an
appraisal well on the Victoria gas structure.
Of course, the biggest project in the Norwe-
gian Sea is Ormen Lange on blocks 6305/4,
6305/5, 6305/6, and 6305/8. At 315 bcm of
gas, Ormen Lange is Norways second largest
gas eld and the largest gas eld under devel-
opment on the NCS. Production is expected
to begin in October.
Barents Sea
The Norwegian Petroleum Directorate re-
ports three discoveries in the Barents Sea in
2006, the largest of which was Enis 7122/7-3
well on the Goliat discovery. In addition to de-
limiting the discovery, this well struck oil in
the Kobbe formation. The well also resulted
in a new, minor oil discovery in deeper drill-
ing targets in a previously undrilled level in
this part of the Barents Sea.
In late February 2007, Hydro hit oil and
gas on the Nucula prospect 110 km (68 mi)
northeast of the Goliat discovery and 65
km (40 mi) north of the Norwegian town of
Honningsvg.
New provinces continue to open up as drill-
ing continues in this under-explored area.
Meanwhile, Snhvit is still on track to come
onstream in 2007.
Mediterranean Sea
Egypt has seen a fair amount of activ-
ity over the past year, and the future holds
more of the same.
Last June, Egypt and Eni signed an explo-
ration agreement for the El-Bougaz block in
the Mediterranean Sea. Eni plans to expand
the Damietta gas liquefaction plant to double
its capacity, which will lay the groundwork
for more exploration and development in
Egypt, especially the Nile Delta deepwater
elds.
Also in June, Centurion Energy and Shell
spudded the Luzi-1 exploration well in the
West El Manzala concession, targeting a
prospect on trend with the existing El Was-
tani eld. The well encountered gas at a depth
of 1,009 m (3,310 ft), leading to exploration
wells being planned on the eastern side of the
West El Manzala concession.
In October, the company announced a 2007
drilling plan that includes 10 exploration and
appraisal wells and two development wells.
In November, Egypt awarded eight of 12
blocks offered in its 2006 bid round. PTTEP
was among the winners with the 4,294-sq-
km (1,658 sq mi) Sidi Abd El Rahman block,
which carries a work commitment of 3D
seismic surveying and an exploration well
in the rst three years. OMV Exploration
& Production GmbH will explore block 11,
which covers 9,140 sq km (3,529 sq mi).
In addition to the bid round blocks, a fur-
ther offshore award was made to Tharwa
Petroleum. The 2,281-sq-km (881-sq-mi) El
Arish exploration block is offshore Sinai. It
is the easternmost block of the offshore Nile
Delta and includes eight wells.
Dana Gas plans to drill 15 wells in Egypt in
the coming year through subsidiary, Centurion
Energy. Ten exploration and ve development
wells are planned, with target depths ranging
from 1,000 m to 4,000 m (3,280-13,123 ft).
In January, BP Egypt hit gas with the
Giza North-1 well in the North Alexandria
concession. BP estimates reserves for the
Giza complex at more than 1 tcf of gas. An
appraisal well was scheduled for April in the
Taurus eld as part of a planned four-well
appraisal program.
With boycotts and restrictions out of the
way, Libya is back in the E&P game, and a
handful of companies are actively pursuing
offshore acreage.
Russias Gazprom is one of the success-
ful bidders. On Dec. 20, 2006, Gazprom was
declared the winner among 45 contenders
for block 19, which garnered the company
an upstream license for up to 30 years. At
present, Gazprom expects to spend more
than $200 million for geological exploration
and drilling. Plans include drilling six explo-
ration wells.
Exxon Mobil Corp. subsidiary ExxonMobil
Libya Ltd. signed an exploration and produc-
tion-sharing agreement with Libyas National
Oil Corp. to begin exploration in the offshore
Sirte basin.
The agreement includes four blocks in
Contract Area 20, about 161 km (100 mi) off
the Libyan coast.
Offshore Tunisia has seen a fair amount
of activity as well.
In Aug. 2007, TGS-Nopec Geophysical Co.
announced a multi-client 600-sq-km (232 sq
mi) 3D survey in the El Louza block. And last
November, Plectrum Petroleum Plc. awarded
CGG a contract to acquire 3,000 km (1,864 mi)
of 2D seismic data over the Nabeul block.
The processed data will open the next
wave of exploration drilling.
Tunisias offshore reserves are also mov-
ing into production.
The Oudna eld began production in Nov.
2006. And in April 2007, PA Resources be-
gan regular production from the platform on
the Didon eld at 20,000 b/d oil.
Early this year, Northern Petroleum landed
three new offshore licenses adjacent to its per-
mits offshore southern Italy. The licenses are
the re-designated G.R20.NP (ex-d23GR.-NP),
G.R21.NP (ex-d22GR.-NP), and G.R22.NP (ex-
d24GR.-NP). All are next to Northerns exist-
ing three licenses in the Apennine-Maghreb
thrust belt west of Sicily and adjoining the Tu-
nisian median line. Across the border, Anadar-
ko, PetroCanada, and Shell hold interests in
the equivalent structural setting.
Northern believes its enlarged offshore acre-
age, now extending over 4,370 sq km (1,687 sq
mi), has strong oil-bearing potential.
Cyprus,
Lebanon, Syria
It looks as if a fair amount of Mediter-
ranean acreage will soon be on the
auction block.
PGS, in cooperation with the Cyprus
Ministry of Commerce, Industry and
Tourism, offcially opened the frst li-
censing round offshore Cyprus on Feb.
15, 2007, in Nicosia, Cyprus.
Unfortunately, politics has raised
its ugly head. Turkey wants to have
a say in exploration offshore Cyprus,
and the protests at being left out of the
equation might throw a wrench into the
cogs.
While Cyprus sorts out its political
issues, new seismic acquisition is go-
ing on nearby.
PGS is acquiring two new multi-cli-
ent 3D surveys offshore Lebanon, one
covering 1,500 sq km (579 sq mi) and
the other covering 1,000 sq km (386 sq
mi). These surveys are to form the ba-
sis for the frst licensing round offshore
Lebanon later this year.
And a little further north, Syria
reportedly is preparing to offer new
offshore and onshore blocks to interna-
tional oil companies as well, though no
formal plans have been announced.
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International investment
pours into Africa
B
illions of dollars in international invest-
ment have owed into West Africa in
the last few years, expanding explora-
tion drilling and moving a number of
world-class elds into production.
Investment in West Africas offshore is
growing and could be the largest in the world
by 2011 if Douglas-Westwood Ltd.s forecast
is accurate. The company contends that West
Africa will not only be the worlds largest off-
shore market, but will be the largest deepwa-
ter and subsea market as well.
Angola
Possibly the biggest news offshore West
Africa in 2006 was Dalia going onstream.
Discovered in September 1997 in block 17,
135 km (84 mi) offshore Angola in 1,200-1,500
m (3,937-4,921 ft) water depth, Dalia contains
an estimated 1 Bbbl of recoverable oil. It was
the largest deepwater development to be
brought onstream last year and is among the
largest projects of its kind in the world.
In fact, Angola was in the spotlight for
much of 2007. In early January, Sonangol and
Total E&P Angola announced the ultra-deep-
water Salsa-1 discovery, the sixth explora-
tion well on block 32. The discovery is in the
southeastern part of block 32, 15 km (9 mi)
southwest of the Mostarda-1 discovery.
Further exploration drilling is underway,
and more is planned across the block.
In late January, Chevron subsidiary Cabi-
nda Gulf Oil Co. and partners had a signi-
cant oil discovery in deepwater block 14 in
the Lower Congo basin.
Shortly after Chevrons announcement,
BP had a discovery with the deepwater Terra
well in block 31. The Terra well, which lies in
2,328 m (7,638 ft) water depth 411 km (255
mi) northwest of Luanda, is BPs twelfth dis-
covery on this block. Terra is 30 km (19 mi)
northwest of BPs Titania discovery, which
was announced in last October.
It was Totals turn next with oil discov-
eries from its eighth and ninth exploration
wells on ultra deepwater block 32.
Drilled in 1,977 m (6,486 ft) water depth,
the Manjerico-1 well tested more than 5,000
b/d of oil from Oligocene oil bearing reser-
voirs. This discovery is in the central part
of block 32. The discovery demonstrates ad-
ditional resource potential in the previously
unexplored central area of block 32.
Totals Caril-1 well, drilled in 1,673 m (5,489
ft) water depth, also encountered oil. The dis-
covery is in the northeastern part of block 32.
Further exploration drilling is under way and
planned across the block.
Angolas offshore will likely lead the re-
gion in the coming year as well. Sonangol is
offering new exploration acreage this year,
some of which lies in ultra deepwater be-
yond block 31.
Nigeria
Nigerias deepwater was not as productive
over the last year as Angolas, but a number of
companies will soon begin drilling obligatory
exploration wells on blocks awarded in 2005.
Devon Energy plans to drill its third and
nal obligation well in OPL 256 and its rst
well in OPL 242. Shell is planning a drilling
campaign in OPL 245; Petrobras will begin
drilling OPL 315, and Chevron will drill OPL
247. Chevron will also appraise the Obo dis-
covery in the Joint Development Zone that
Nigeria shares with So Tom and Prncipe.
ExxonMobil is working on appraisal activ-
ity at the Uge 1 discovery in deepwater OPL
214. And Eni will drill more appraisal wells
on the Oyo eld in OML 120.
The shallow-water HD project is Shells
primary focus offshore Nigeria this year.
The project encompasses HD, HA, and sat-
ellite elds that will produce 140,000 b/d of
oil as well as gas for NLNG.
Shell is also developing the deepwater
Bonga South West eld separately from Bon-
ga Main, which is already in production.
Last year saw some signicant milestones
offshore Nigeria, one of which was Shells dis-
covery at Bonga North in OPL 212 in early May.
Also in May, Chevron drilled the rst oil discov-
ery in OPL 214 about 113 km (70 mi) offshore.
The well encountered more than 100 m (328 net
ft) of oil, making it one of the most recent, size-
able deepwater discoveries in the Niger Delta.
Around the same time, Exxon Mobil Corp.
afliate, Esso E&P Nigeria Ltd. started pro-
duction from the deepwater Erha develop-
ment. The development includes Erha and
Erha North, which was to come onstream in
3Q 2006.
In July, Addax Petroleum began the a eld
development program on the Nda Field in
OPL-90 adjacent to the Okwori eld about 90
km (56 mi) offshore as a subsea tieback to
the Okwori FPSO.
Afren drilled an appraisal well for Okoro in
shallow-water OML 112 in Dec. 2006, which
sparked the decision to pursue a nine-month
development drilling program on Okoro and
Setu that is to begin in 3Q 2007. A fast-track
development plan is in place to produce rst
oil in early 2008.
The Bilabri eld in OML 122 is also on a fast
track. Operator Equator has leased the BW
Endeavour FPSO for a three-well, 30,000 b/d
operation that is to come onstream this year.
Other West African players
Totals Moho-Bilondo project is the key
project offshore Congo. In early April 2007,
Total made two oil discoveries in the northern
area of the permit, 80 km (50 mi) offshore.
The Moho Nord Marine-1 discovery well
encountered a 140-m (459-ft) column of oil,
and the Moho Nord Marine-2 well, about 1.5
km (1 mi) away, encountered two connected
reservoirs.
Appraisal is under way for the additional re-
serves in the three oil reservoirs, and develop-
ment plan studies have already been launched.
The wells are part of the second phase of
Judy Maksoud
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Africa offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599
S. & E. Africa 16 0 1,321 0 29 1 0 2 0 1 0 0 0 545 22
West Africa 145 50 6,013 14,766 621 2 27 0 0 3 169 0 4 7,309 287
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the campaign to add resources to the current
Phase 1 Moho-Bilondo development. An earlier
discovery, Mobi Marine 2, will be connected to
the Moho-Bilondo oating production unit.
Launched in late August 2005, the initial
Phase 1 development plan for Moho-Bilon-
do consists of 12 subsea wells tied back to a
oating production unit, with a peak output
of 90,000 b/d of oil. Production is scheduled
to begin in 2008.
Last December, Hess Corp. and partners
Tullow Oil and GEPetrol began production
from the Okume complex offshore Equato-
rial Guinea. First oil was achieved on Dec.
14 at the Okume B platform. Production will
grow during 2007 to reach 60,000 b/d peak
production in 2008.
While Hess moves to production, Devon
Energy and partners are making progress
with exploration drilling in block P offshore
Equatorial Guinea. In March, 2007, the group
announced the P-1 well on the Jupiter pros-
pect demonstrated that the major elements of
the hydrocarbon system are in place.
Though P-1 was unsuccessful, wells P-2,
P-2 sidetrack, and P-3 encountered com-
mercial hydrocarbons. Information from the
wells is being analyzed along with other re-
gional information. Based on the current es-
timates, the Green Sand discovery holds 33
MMbbl of gross recoverable oil reserves.
Devon is carrying out a feasibility study
to evaluate the commercial viability of the
project. Studies also are ongoing to evaluate
information acquired from the block to sup-
port decisions on further exploration and ap-
praisal activities within the area.
In Sept. 2006, FirstAfrica Oil completed
its initial development drilling program off-
shore Gabon in the East Orovinyare eld.
Initial production is expected in 3Q 2007 at
more than 7,000 b/d of oil.
And last December, Total added an explo-
ration and production sharing contract for
the Diaba license to its West Africa holdings.
The 9,075-sq-km (3,504-sq-mi) license lies in
100-2,500 m (328-8,202 ft) water depth 50 km
(31 mi) off southern Gabon.
The three-phase exploration program in-
cludes a 2,000-km (1,243-mi) 2D seismic sur-
vey, a 700-sq-km (270-sq-mi) 3D survey and
an obligation well.
At the southern end of West Africa, Tullow
Oil began drilling again offshore Namibia in
late 3Q 2007 on the potentially giant Kudu
gas eld.
Exploration and analysis to date suggest re-
serves of at least 3 tcf, with potential for up to 9
tcf. The parts of the reservoir drilled so far have
achieved good ows, but Tullow wants to test
other sections in a different geological setting.
Depending on the outcome of the two-
well appraisal program, development could
be expanded from the present option of fu-
eling a gas-to-power project on the border
with South Africa, to an export project, pos-
sibly involving LNG.
East Africa
Drilling is picking up offshore Kenya. In
mid-December 2006, Australias Woodside
Energy Ltd. set 51-mm (20-in) casing at
2,944 m (9,659 ft), 751 m (2,464 ft) below the
seabed and resumed drilling at the Pomboo
No. 1 well in license L-5 in the Lamu basin.
Woodside acquired 40% interest in the Ke-
nya L-5 license along with three other blocks
from Dana Petroleum Plc. subsidiary Dana
Petroleum (E&P) Ltd. in May 2003. The
blocks cover 47,500 sq km (18,340 sq mi) in
water depths to 3,000 m (9,842 ft).
In April 2006, Aminex entered into a seismic
option agreement with Upstream Petroleum
Services Ltd. over blocks L9 and L10. Under
UPSLs technical evaluation agreement, 570 km
(354 mi) of new 2D seismic were acquired over
the area as well as geochemical seabed coring
and additional seismic on prospective leads.
The area covered by this agreement is
about 5,000 sq km,(1,931 sq mi) involving
land and near-shore acreage of original Ke-
nyan blocks L9 and L10.
Last December, Australias Origin Energy
began the early stages of its Kenyan explora-
tion program with a 3,200 km (1,988 mi) seis-
mic survey in Lamu basin blocks L8 and L9.
Offshore Tanzania, EnerGulf submitted its
proposed production-sharing agreement for
the 8,000-sq-km (3,089 sq mi) Tanga block
last January, but although the company be-
lieves the block has potential for several sig-
nicant petroleum accumulations, no further
activity has yet taken place on the block.
In 2Q 2006, Aminex began acquiring a new
2D survey in the Area B transition zone of
the Nyuni license. Aminex acquired 330 km
(205 mi) of 2D marine seismic over this area
in 2005. The aim of the survey was to rm up
drilling targets for exploration wells.
Last April, East African Exploration Ltd.
farmed in to the block, agreeing to earn its
interest by acquiring new transition zone 2D
seismic data over Area B.
In March 2007, Dominion Petroleum Ltd.
signed a PSA for exploration block 7, which
covers 8,500 sq km (3,232 sq mi) in the Indian
Ocean east of Dar es Salaam. The PSA has an
initial exploration period of four years, during
which Dominion will spend at least $8.75 mil-
lion on surveys and will drill one well.
Offshore Mozambique, Anadarko Petro-
leum Corp. signed an exploration and pro-
duction concession contract last December
for Offshore Area 1 in the Rovuma basin.
The block includes 90,000 onshore acres
and stretches eastward 56 km (35 mi) offshore
into 1,800 m (6,000 ft) water depth. The blocks
boundary borders Tanzania to the north and
extends southward 160 km (100 mi).
Anadarko has identied multiple leads across
the area and is planning a ve-year initial explo-
ration term, with options to extend that phase
another three years.
More money is moving into this region, but
until there is a world-class nd, East Africa will
remain a side note to West Africas melody.
Africas bit players
Dana Petroleum and partners are forging ahead with a drilling campaign offshore
Mauritania. The most recent qualifed success took place last December, when the
group made an oil discovery on block 7. Though the discovery was not commercial,
it was encouraging enough to ensure Danas continued exploration activity in the
under-explored area.
Another considerably under-explored province is offshore Senegal, where there
have been nearly 50 wells drilled in the last 50 years. Almost half of the wells were in
the Casamance basin. Most of the discoveries have been oil, with primary produc-
tion coming from the Dome Flore and Gea felds, jointly operated by Senegal and
Guinea-Bissau. Thirteen wells have been drilled in the Dome Flore block, with sev-
eral penetrating heavy oil deposits. Two wells have hit lighter crude.
The primary activity off Senegal is a seismic survey First Australian Resources
Ltd. began in February 2007. The survey will be the largest 3D survey conducted in
the area, comprising 2,050 sq km (792 sq mi), including prospect C1 in the southwest
corner of the Sangomar offshore block.
The new survey follows Edisons recently completed 1,500-sq-km (579-sq-mi)
survey in the Rufsque Deep offshore block. The Rufsque Offshore Profond license
covers the northernmost inshore section of the Senegalese offshore area and ad-
joins Mauritanian block 1.
In early 2005, Woodside acquired exploration acreage off Liberia in the countrys
frst offshore licensing round.
Woodsides acreage adjoins blocks held by joint venturer Repsol in neighboring
Sierra Leone. Woodside and Repsol each hold a 50% interest in two blocks immedi-
ately west of Liberia in Sierra Leone, giving them interests in fve adjoining blocks
across the two countries.
Woodsides initial four-year work commitment in Liberia includes acquiring 600
km (373 mi) of 2D seismic data and 1,600 sq km (618 sq mi) of 3D data.
In Dec. 2002, Tullow and Addax Petroleum signed an exploration license with the
Cameroon Government for the shallow-water Ngosso area, which contains small oil
discoveries, including Narendi, Odiong, and Oongue. A 3D survey, covering 207 sq
km, was completed in 1Q 2006. There is a chance that two wells will be drilled this
year, most likely in 4Q.
O
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Punctual departures from 16 U.S. gateways.
Helping to keep the oil and gas business flowing.
All for this one moment.
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for information on our oil & energyclub card.
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Caspian fields boost
regional production
Middle East invests in gas
S
hah Deniz, one of the largest oil and
gas elds in the world at an estimat-
ed 1.5-3 Bbbl of oil and 50-100 bcm of
gas, came onstream last December.
Full production could reach 37,000
b/d of condensate and 20 MMcf/d of gas.
Spending for upstream and midstream de-
velopment is expected to exceed $3 billion.
The Shah Deniz structure is in the south
Caspian Sea 70 km (43 mi) southeast of Baku
in water depths ranging from 50 m to 600 m
(164-1,969 ft).
KCA Drilling Ltd. performed front-end
design, construction, and commissioning on
the drilling facilities and operations. Plans for
later in the elds life call for a second drilling
center in 300 m (984 ft) of water, 5 km (3 mi)
south of the rst one. The second center is
expected to be a subsea satellite with wells
tied back to a manifold and owlines to the
xed platform for gas/liquids separation and
subsequent subsea pipeline to shore.
A seismic survey commissioned by BP in
late February will further delineate the Shah
Deniz eld. Reservoir Exploration Technol-
ogy ASA will carry out a ve-month 4C seis-
mic survey beginning in 4Q 2007.
In late Oct. 2006, the BP-operated Azer-
baijan International Operating Co. (AIOC)
began oil production from the East Azeri
platform in the Azeri-Chirag-Gunashli (ACG)
eld in the Azerbaijan sector of the Caspian.
Production, which began four months ahead
of schedule, marks the completion of Phase
2 of the ACG eld development. ACG is the
largest oil eld under development in the
region.
Phase 3, which will develop the deepwa-
ter Gunashli area of ACG, is on schedule to
begin production in 2008.
East Azeri (EA) lies in 150 m (492 ft) wa-
ter depth on the east side of the Azeri eld.
Production will increase through mid-2007
as the other pre-drilled wells are brought
online. When it reaches plateau, the EA fa-
cility will produce 260,000 b/d, bringing Az-
eri production, including West and Central
Azeri, to over 800,000 b/d.
Dragon Oil, meanwhile, is continuing its
drilling program in the Cheleken contract
area of the Turkmen sector of the Caspian.
The company signed a ve-year extension
for the Iran Khazar jackup in early March.
Around that time, another jackup, the Astra,
completed perforating and testing of a well
from the LAM 13 platform, which tested at
a rate of up to 1,525 b/d of oil from three
reservoir zones.
In addition to the drilling program, Drag-
on is planning a sustained program of work-
overs through 2007, with the objective of
drilling up to 25 development and appraisal
wells. The company also has budgeted $500
million this year for new production plat-
forms, offshore facility upgrades, new pipe-
lines, and enhanced export capability.
Brazils Petrobras, in a cooperative effort
with the National Iranian Oil Co. (NIOC) will
invest at least $470 million to develop Cas-
pian Sea reserves. According to NIOC, ne-
gotiations for cooperation between Iran and
Brazil have been nalized, and a contract is
pending. The work scope covers three wells
in blocks 6 and 29 offshore Iran.
Aral Sea
There were some interesting developments
late last year in the Aral Sea when the mem-
bers of a consortium of investors, including
Uzbekneftegaz, Lukoil Overseas, Petronas
Carigali Overseas, CNPC International Ltd.,
and KNOC Aral Ltd., signed a joint operating
agreement and a single-operator agreement
to implement a production-sharing agree-
ment (PSA) in the Uzbek sector of the sea.
The original PSA was signed Aug. 30,
2006, in Tashkent. In late October 2006, the
government of the Republic of Uzbekistan
adopted a resolution on measures required
to implement the project.
Exploration operations will be carried out
in two phases. In the rst phase, which cov-
ers three years, a 2,300-km (1,429-mi) 2D
seismic survey will be shot and two explo-
ration wells drilled for a minimal nancial
commitment of $99.8 million.
Phase two exploration operations, which
will last for 35 years, will be undertaken
after the commercial terms of the PSA are
approved.
Black Sea
The Black Sea saw a fair amount of activ-
ity in 2006, and drilling plans are in place for
2007.
In 4Q 2006, Toreador Resources Corp. and
partners TPAO and Stratic Energy Corp. hit
gas with the Akcakoca-3 well offshore Tur-
key. The well encountered 81 m (266 ft) of
gas-bearing sands in seven zones.
Akcakoca-3 was the 10th successful well
drilled in the South Akcakoca sub-basin gas
project and the rst well drilled by Toreador
and its joint venture partners to assess the
reserve potential along the Akcakoca trend
in waters too deep for jackup rig operations.
Toreador hit more Black Sea gas with the
Guluc-1 well in mid-March this year. Guluc-
1 owed approximately 17 MMcf/d of gas
from a fault-separated prospect along the
Judy Maksoud
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Middle East offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599
Middle East 48 2 94,224 369 22 8 1 0 0 8 179 30 2 8,569 42
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same trend as the Akcakoca-3 well in the
deeper waters of the project area.
With operations complete on Guluc-1 the
rig will move to Bulgarian waters to begin
work for Melrose Resources plc., which in
late January announced its plans for an ex-
ploration drilling program offshore Bulgaria
for later this year.
The company holds 100% working inter-
est in four exploration concessions in the
Bulgarian portion of the Western Black Sea
covering over 10,000 sq km (3,861 sq mi).
Melrose plans to begin a drilling program
that includes three rm and two optional
wells. Drilling is expected to begin by late
March.
The rst well will be in the Bourgas Deep
block. The Izgrev No.1 exploration well will
be the rst in this area of the Black Sea. The
second well, Obzor No.1, is in Block Kaliakra
99 in 650 m (2,133 ft) water depth. The third
well will be the Ropotamo No.1 exploration
well in block Rezovska 45 km (28 mi) east of
the Bulgarian coast in 160 m (525 ft) water
depth. Ropotamo No.1 will be the rst well
in this region of the Black Sea.
Depending on drilling results, up to two
further wells could be drilled.
For scal year 2007, Toreador has bud-
geted about $52.5 million (64% of the total
budget) for Turkey and is making plans for
additional drilling in August on the Thrace
Black Sea permit area in the extreme west-
ern end of Turkeys coastal waters.
Highlights
from the Middle East
In February, Saudi Aramco signed a con-
tract with Belgium dredging contractor Jan
De Nul to develop the 900,000-b/d Manifa
offshore oil eld.
Jan De Nul will carry out dredging work
in the Gulf before building several drilling
islands and a 41-km (24.5-mi) causeway that
will provide Saudi Aramco with a direct link
from the coast to shallow-water offshore
manmade drilling islands. The initial project
is scheduled for completion in 2009.
This is the rst lump-sum turnkey contract
to be signed under Saudi Aramcos Manifa
development program, the companys larg-
est offshore project. The objective is to add
900,000 b/d of oil production by 2011.
Last July, ExxonMobil Middle East Gas
Marketing Ltd., Qatar, and Qatar Petroleum
(QP) signed a development plan for phase
two of the Al Khaleej Gas project off Qatar.
Plans call for production of 1,580 MMcf/d
gas from the North eld when AKG-2 is op-
erational in 2009.
Al-Khaleej gas is being developed concur-
In addition to the drilling
program, Dragon is planning
a sustained program of
workovers through 2007, with
the objective of drilling up to 25
development and appraisal wells.
Aker Arctic Technology Inc.
Merenkulkijankatu 6
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Finland
Tel.: +358 10 6700
Fax: +358 10 670 2527
www.akerarctic.fi
info@akerarctic.fi
Aker Arctic
Aker Arctic operates now
a new ice model testing facility
in Helsinki, Finland.
Aker Arctic offers full design
and project support to ship-
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operators.
A series of Arctic cargo ships is
now under construction,
including the worlds first Arctic
shuttle tankers for export of oil.
the full service ice technology partner
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rent with the Ras Laffan LNG Expansion
Project. Total investment for AKG-2 is ex-
pected to be more than $3 billion.
AKG-2 development will involve construc-
tion of offshore and onshore facilities, in-
cluding two wellhead platforms, gas treating
and liquids recovery facilities, and fraction-
ation operations. The onshore components
will be built adjacent to other RasGas facili-
ties in Ras Laffan Industrial City.
A subsidiary of J. Ray McDermott S.A.
won the contract for engineering, procure-
ment, construction, and installation of the
two wellhead platforms and pipelines.
The intra-eld pipeline included in the
new contract will connect the platforms with
38-in. wet gas export trunk lines. The plat-
forms will be connected to the RasGas Alpha
Complex by two separate power and ber-
optic subsea cables.
Construction is scheduled to begin in May
2007 at McDermotts Jebel Ali yard, with in-
stallation scheduled for completion in 2009.
In Feb. 2007, Qatar Petroleum offered
ExxonMobil Middle East Marketing Ltd. an
opportunity to participate in the Barzan gas
project. The offer brought with it the right to
participate in all future phases of the project
as well.
The initial phase of the project will supply
domestic gas to meet Qatars infrastructure
and industry growth.
The companies expect the initial phase of
the Barzan project to yield about 1.5 bcf/d of
sales gas. Startup is anticipated in 2012.
In March, Maersk Oil Qatar AS awarded
the National Petroleum Construction Co. of
Abu Dhabi the pipeline contract for block 5
development at Al Shaheen eld.
The work scope includes design, engineer-
ing, procurement, fabrication, offshore installa-
tion, and testing of 260 km (162 mi) of subma-
rine in addition to 60 km (37 mi) of submarine
power and communication cables, and associ-
ated works. Water depths range from 52 m to
70 m (171-230 ft).
The rst work is scheduled for comple-
tion by the end of 2007 and the remainder
by mid-2009.
Most of the work offshore the United
Arab Emirates aims at increasing gas pro-
duction as well.
In early March, Dolphin Energy Ltd. be-
gan testing its gas receiving and distribution
facilities at Taweelah, Abu Dhabi.
Gas is being received from Qatar Petroleum
(QP) for Dolphins export pipeline connecting
Qatar with the UAE. Early commissioning
saves many weeks of commissioning work
that would otherwise have been required in
the summer.
With Taweelah facilities commissioning com-
plete, Dolphin will supply up to 400 MMcf/d of
this gas to Dubai. The arrangement for early
gas deliveries with QP will come to an end when
Dolphins own gas is received from Qatar in mid-
summer for UAE customers.
In May 2006, appraisal/development drill-
ing got under way with the West Bukha-2
well in block 8, which lies 25 km (15.5 mi)
offshore Oman. The eld is being developed
via a wellhead platform.
Indago Petroleum Ltd. carried appraisal
forward with a 3D seismic survey over the
eld in August, the results of which will un-
dergo evaluation during the rst half of 2007.
In November, the company completed the
initial ow test on the Bukha-2 well, identi-
fying signicant oil and gas deposits. The
main objective of the well was to prove the
commerciality of the Mishrif-Mauddud res-
ervoir. Tests concluded in January.
More seismic surveying took place off-
shore Oman in Oct. 2006, with Circle Oil Plc.
contracting TGS-Nopec Geophysical Co.
(UK) Ltd. for a 2D survey over the 90,000-
sq-km (34,749-sq-mi) block 52 off the south-
west coast.
The survey, which concluded in March
2007, covered 6,300 km (3,915 mi) of seis-
mic data plus shipborne gravity data. Initial
data interpretation is scheduled to begin in
early summer.
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Growing economies
stimulate Asia-Pacific E&P
Deepwater draws more drilling dollars
E
xploding economies in China, India,
and much of Southeast Asia are creat-
ing an increase in oil and gas demand
gas. The region is expected to lead the
world in offshore spending in 2008.
China
Last year, China National Offshore Oil
Corp. Ltd.s (CNOOCs) exploration activi-
ties led to 10 oil and gas discoveries and six
appraisal successes offshore China.
CNOOC is on the move to increase do-
mestic production, reportedly planning to
bring 16 new projects onstream this year.
Plans also are in place to pursue as many
as 60 onshore and offshore projects in the
medium term.
Not surprisingly, the focus will be deep-
water exploration for oil and gas in the South
China Sea, which is already an active area.
Late last year, CNOOC Ltd. and partner Eni
made discovery Huizhou (HZ) 25-4 in the east-
ern South China Sea. Discovery well HZ 25-4-1
in block 16/19 in the Pearl River Mouth basin
is 180 km (112 mi) southeast of Hong Kong.
At about the same time as the Huizhou dis-
covery, CNOOC signed two production-sharing
contracts with Devon Energy Corp. for deepwa-
ter blocks 64/18 and 53/30. Water depth in the
blocks is 300-2,000 m (984-6,562 ft).
Since 2006, CNOOC Ltd. has made four dis-
coveries in the Yellow River Mouth sag of Bohai
Bay. The company hopes to develop a large-
scale cluster of oil and gas elds in this area.
India
In early March, the Indian government
signed production-sharing contracts (PSCs)
for 52 oil and gas blocks. NELP VI blocks initi-
ated exploration in an additional area of about
300,000 sq km (115,831 sq mi), a major part of
which falls in the deepwater blocks off the east
and west coasts and the Andaman Sea.
Most of this years drilling will be in the
Krishna-Godavari (KG) and Mahanadi basins,
where exploration wells are planned and recent
discoveries will begin moving into production.
ONGC exploration is ongoing in the Cauv-
ery basin off the southeastern coast, and seis-
mic surveys are under way off the Andaman
Islands to the east.
ONGC reportedly intends to develop 153
onshore and offshore marginal elds in the
next few years.
Privately owned Reliance Industries Ltd. also
is planning signicant activity in the coming year,
announcing in Feb. 2007 that it would follow an
aggressive exploratory program over the next
four quarters. In mid-September 2006, Reliance
completed a seismic survey on Cauvery block
CY-PR-DWN-2001/3 off the Tamil Nadu coast in
the southeast. Reliance reportedly plans to drill
eight exploration wells in the block.
In March 2007, Reliance said its gas devel-
opment in the D6 block, where reserves are
estimated at 400 bcm, is on schedule for pro-
duction and gas supply by 2008.
The company is reportedly in talks with state-
owned GAIL (India) Ltd., to bid for oil and gas
blocks in NELP VII, for which the India govern-
ment has identied 50-60 blocks to be offered.
Canadas Niko Resources had a very busy
year last year, pursuing aggressive drilling pro-
grams on the D6 block off the east coast and
Hazira blocks offshore West India. The D6 dis-
covery in June 2006 was Nikos rst deepwater
discovery, testing oil and gas in two intervals.
Niko also expects to begin developing the
east coast NEC-25 block.
BG is planning to increase production at its
Panna/Mukta and Tapti oil and gas elds by
60% to 2009 through a major drilling campaign.
According to BG, the company is looking
to play an expanding role in Indias growing
natural gas sector.
BG is also extending its deepwater initia-
tives and will be active in three deepwater
exploration blocks in the KG basin.
Thailand, Vietnam, Myanmar
Thailand will focus on gas development in
2007. The Petroleum Authority of Thailand
(PTT) approved nearly $6 billion in invest-
ment for 2007-2011, 84% of which would be
used to develop the natural gas business.
PTT Exploration and Production Public
Co. Ltd. (PTTEP) plans to invest $2.18 bil-
lion in 34 projects this year, 65% of which will
be spent domestically, most of it on offshore
projects.
In 1Q 2007, the Gulf of Thailand saw three
new gas discoveries on PTTEP-operated blocks
15 and 16. A development plan for the three dis-
coveries is under study. Production could begin
in 2009.
PTTEP will invest $471 million in the Ar-
thit project in the Gulf of Thailand to drill 37
development wells and to build and install
the main production platform and four well-
head platforms.
PTTEP also is investing in the Bongkot
eld, spending $176 million to drill 16 devel-
opment wells. A further $170 million will go
to the nearby B8/32&9A eld, and the Pailin
project will receive $105 million for four well-
head platforms and 39 development wells.
PTTEP also plans to spend $139 million in
Judy Maksoud
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Asia-Pacific offshore summary of projected field developments 2007-2011 WWW.INFIELD.COM, OTC STAND #2599
Australasia 89 15 10,434 6,261 165 0 13 3 0 1 21 1 1 4,945 237
East Asia 52 1 11,132 35 14 0 3 0 0 1 38 4 0 3,525 2
Southeast Asia 204 21 19,616 4,737 162 5 20 3 1 12 306 1 2 9,105 132
India 30 10 2,232 2,601 61 1 5 0 0 0 34 0 6 1,592 45
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Myanmar and $117 million in Vietnam.
Last August, ONGC Videsh Ltd. (OVL)
and partners in blocks A-1 and A-3 offshore
Myanmar, completed and appraised the orig-
inal gas-in-place and recoverable reserves of
the Shwe, Shwe Phyu, and Mya elds. OVL
believes the elds hold a combined 5.7 tcf.
Two additional prospects have been iden-
tied in block A-3, where one or two explor-
atory wells are expected in 2007.
In February 2007, PTTEP said it will call
for farm-out deals for its ve blocks in the
Gulf of Martaban offshore Myanmar. The
farm-out for strategic partners follows the
M9 gas discovery. The company is planning
four or ve more appraisal wells for the M9
and adjacent M11 blocks in July while prepa-
rations for M9 development get underway.
Deepwater exploration offshore Vietnam
is expected to progress gradually. A step in
that direction is a 2D seismic survey around
the once disputed Spratly Islands, now un-
der a tripartite agreement with the Philip-
pines and China.
Vietnam saw four discoveries in 2006 and
another in early 2007. Talisman (Vietnam 15-
2/01) Ltd. found oil with the Hai Su Trang
(HST) exploration well in January. The HST
well is in block 15-2/01, 80 km (50 mi) off the
east coast of Vietnam on trend with large oil
and gas discoveries in the Cuu Long basin.
The Thang Long Joint Operating Co., estab-
lished for the purposes of conducting opera-
tions on block 15-2/01, plans to drill three new
wildcat exploration wells in 2007 to evaluate
features on trend with the HST discovery.
Vietnam also is banking on a growing de-
mand for construction, investing in several
shipyards this year.
Russia
Exxon Mobil Corp. and its partners con-
tinue to make strides on the Sakhalin project
offshore Russias east coast.
Last August saw production of crude oil
from Sakhalin-1. Phase one, which includes
the Chayvo, Odoptu, and Arkutun Dagi
elds, reached targeted peak production of
250,000 b/d of oil in Feb. 2007. Sakhalin-1
is one of the largest single foreign direct in-
vestments in Russia.
Last December, Sakhalin II shareholders
reached agreement with Ministry of Energy
and Industry of the Russian Federation re-
garding the amended budget of Sakhalin II
and cost recovery.
The upshot of the agreement is that the
production-sharing agreement will continue,
and the parties have agreed to jointly resolve
all outstanding issues.
Australia
Australia opened 36 new areas for bid last
year. Bidding for two of the areas closed in
Nov. 2006. The other ve close in May. All
carry an initial term of six years.
There were 12 discoveries off Australia
last year, and there is a fair amount of both
exploration and production drilling planned
for 2007.
The offshore program for BHP Billitons
Stybarrow eld, in permit WA-255-P(2) in the
Southern Carnavon basin, 65 km (40 mi) off
northwest Australia began in early 2007. Lo-
cated in 825 m (2,707 ft) of water, Stybarrow
will be the deepest subsea production system
in Australia.
Meanwhile, Mitsui E&P Australia Pty. Ltd.
and Woodside Energy Ltd. will begin improve-
ments on the Eneld eld off northwestern
Australia, which began oil production last July.
The 2007 program includes $390 million to
drill additional wells and to workover existing
wells to increase production from the eld.
In March, Australian Worldwide Explora-
tion Ltd. committed to a major new exploration
program to increase gas supply to the growing
southeast Australian energy market.
In the last three years, AWE and its co-
venturers have made three gas discoveries
in the Henry and Martha elds in the Otway
basin and in the Trefoil eld in the Bass ba-
sin. They have also carried out 2D and 3D
seismic surveys. The company is planning
to drill exploration wells on the Netherby
and Pecten East prospects later in 2007.
The 3D seismic surveys over the Timor
Sea Katandra prospect in the north and
the Gippsland basin permit VIC/P42 in the
southeast are precursors to increased explo-
ration drilling in the two areas.
New Zealand
Last year, AWE began a drilling program
offshore New Zealand comprising nine ex-
ploration and development wells.
One duster was drilled last year. The rest
of the wells in the program will be drilled by
2Q 2007. They include the Tieke-1, Hector-1,
Taranui-1, and West Cape-1 exploration wells
and four development wells on the Tui eld.
Combined potential reserves are estimated
at over 315 MMbbl of oil.
New Zealands offered 40 exploration blocks
for bid in the Great South basin. Exploration
work will pick up following block awards.
Last August, Shell began gas production
from the onshore segment of Pohokura de-
velopment in the Taranaki basin while off-
shore construction got under way. And New
Zealand Oil & Gas Ltd. plans to start oil pro-
duction from Tui in June
Meanwhile, seismic surveys are help-
ing to delineate the largely unexplored off-
shore. In Feb. 2007, two CGGVeritas vessels
were contracted for a multi-permit program
that will take place this summer gathering
10,000 km (6,214 mi) of seismic data. Ori-
gin Energy contracted for a 40-km (25-mi)
2D seismic survey in Kupe in the Taranaki
basin.
Discovery Geo Corp. is conducting a 200-
km (124-mi) survey in PEP 38343 in Cook
Strait-Marlborough, and Crown Minerals is
planning a 2,300-km (1,429-mi) 2D survey for
the Raukumara basin.
Singapore, Malaysia, The Philippines, Indonesia
The Singapore yards continue to take on orders, with delivery dates now as far out
as 2012. The global shortage of rigs and construction/installation vessels will keep
this region busy for quite some time.
Malaysia, meanwhile, is working to establish itself as a deepwater hub for the
Asia-Pacifc region, and increasing deepwater exploration is drawing attention to the
area. Yard expansion is paving the way to greater construction capacity, and many
international companies are setting up shop in Kuala Lumpur.
Murphy Oil Corp. is bringing Kikeh, Malaysias frst deepwater feld, onstream later
this year, and exploration drilling is turning up additional deepwater discoveries.
Earlier this year, Murphy Oil Corp. found a signifcant natural gas pay with the Rotan
#1 exploration well in 1,150 m (3,773 ft) water depth near offshore Sabah. Rotan #1 is
Murphys fourth exploration well in block H and its frst discovery there.
Shell also has a deepwater discovery offshore Malaysia called Gumusut that is
likely to be developed.
Deepwater has also become a draw offshore the Philippines. Exxon subsidiary
Esso Exploration International Ltd. and Mitra Energy Ltd. recently entered an agree-
ment to explore the deepwater Sandakan basin southwest of the Philippines.
The Philippine and Malaysian national oil companies are planning to drill offshore
Mindoro island between 2007 and 2012. The plan is to drill one exploration and two
appraisal wells in 2007, targeting a basin of a billion barrels of reserves.
International oil companies are expected to spend $411 million on drilling and
seismic surveys over the next three years on the nine blocks awarded in Indonesias
recent bidding round. Another 40 blocks will be offered this year. Indonesia is hop-
ing to attract $1 billion in three-year exploration commitments from the 40 additional
blocks. The country signed 18 PSCs last year.
Total E&P Indonesie plans to spend $2.2 billion on its Indonesian operation this
year, up from $1.8 billion in 2006. The 2007 expenditure includes $1.6 billion for
upstream development projects, including $400 million for the Sisi and Nubi felds,
which are being developed in the Mahakam block off East Kalimantan, Borneo.
Total plans to drill 120 wells this year. The long-term strategy is to invest $8 billion
over the next nine years.
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Delivering the digital oilfield:
Access, timeliness among keys
T
he digital oileld is all about enhancing
asset value and optimizing operations,
production, and reserves through ap-
plication of information technology and
practices. It is about improving safety,
lowering costs, and increasing revenue by ef-
ciently connecting the right people with the
right information so they can make the best,
most timely decisions. Some oil companies
are realizing this vision with low-cost, rapidly
deployable, Web-enabled technology.
The drive to augment the value of producing
assets is challenging for the operating environ-
ment and capital intensive nature of offshore
deepwater assets. Maximizing value while
improving safety and protability requires in-
formation from many sources and across the
asset life. Information itself is not enough. The
right people must have quick access to reliable
information in context and in familiar forms to
make well informed decisions.
Most oil companies have the technology
and data management practices to acquire,
store, and manage information. In fact, asset
teams are ooded with information.
Because companies focus on technology
and solutions for specic user groups, data is
spread out across the enterprise, poorly orga-
nized and trapped in specialized application
and database silos. Consequently, accessing,
organizing, and presenting the information to
decision-makers can take days or even weeks.
Solving this means rst understanding the
business and operational context of the compa-
nys assets. This gives direction to an organiza-
tions information management technology and
practices.
Offshore benets
Offshore operators realize benets from
digital oileld initiatives and are harnessing
full power from a wealth of exploration and
production (E&P) information using Web-
based asset management solutions.
Information management requirements
in offshore operations typically fall into two
categories data for ongoing operations and
data for unexpected events. Consequently, in-
formation management practices also focus
on regulatory reporting and health, safety,
and environmental issues.
Minimizing downtime is especially critical,
and managing well integrity from discovery to
abandonment adds complexity. A typical asset
cycles through ve stages: 1) exploration, 2)
development, 3) facilities, 4) production opera-
tions, and 5) well abandonment or divestiture.
Each phase is owned by a different group
within a company. Each group has different
data and software requirements. As a result,
systems for storing and managing data and
documents frequently are incompatible.
The problem of transferring and sharing
data and information from phase to phase
grows more challenging because phases
can occur concurrently as well as sequen-
tially. For example, a drilling group might
return to re-complete a well or drill a new
well while the production team operates the
platform. These groups must exchange in-
formation and collaborate effectively before
and during a well handover.
The greatest threats to a platforms opera-
tional performance are hurricanes. Hurri-
canes, such as Rita and Katrina, disrupt pro-
duction in two ways. First, facilities must be
evacuated and operations shut down. Second,
high winds and seas can damage facilities,
leaving them out of commission for weeks.
Since operators perform planned shutdowns
wherever possible, asset teams must decide
what work should be accomplished before
the shutdown and coordinate work during
the process. At-sea shutdowns in the face of a
storm require massive information sharing.
Many oil companies share ownership, risk,
and cost of offshore operations with other
companies. Such joint ventures require exten-
sive collaboration between partners and have
a wide range of information-sharing needs.
Embarking on a digital oileld initiative
means nding a way to assemble and orga-
nize information into a single access point.
Data out of reach
Ironically, most oil companies have informa-
tion technology and practices in place to collect,
store, and manage the information, but the
information is simply out of reach. That is be-
cause most oil companies have integrated E&P
data into a single repository or master data
store. This is time-consuming, disruptive, and
expensive. It typically requires years to achieve
while technology, standards, information man-
agement, and user requirements change.
Rather than commit to long-term, costly
data migration, oil companies are discover-
ing the benets of leveraging their existing
data systems and technology by accessing
E&P information where it is already stored
and managed. By virtually integrating data
and documents from across the enterprise,
no matter where it resides, many companies
achieve the level of data access they need to
improve decision-making.
Decision-makers do not require all infor-
mation all at once. In fact, presenting users
with all the data they have access to overloads
and impedes decision making. Instead, infor-
mation must be organized into familiar forms
or business objects, such as wells, elds, and
reservoirs, and presented through workows
that make sense to the user.
Appropriate solutions leverage the ubiq-
uity and technology investment of a compa-
nys intranet infrastructure to securely pro-
vide access for the right people so they can
effectively collaborate, share information,
and work from anywhere. No special appli-
cations are required, just a Web browser.
Because information management require-
ments both within and between companies
are unique, the technology used to integrate,
access, and present information must be
adaptable. Fit-for-purpose asset management
solutions that do this are available. These
solutions capture the unique company or
business unit business objects and workow,
adapting to the way users work, rather than
forcing users to adapt to the technology.
Companies are beneting from these so-
lutions in two ways. First, these solutions
are making the digital oileld a reality. By
providing access to information needed by
asset management teams, these solutions
help oil companies improve the value and
performance of producing elds. Secondly,
the cost of implementation is a fraction of the
cost of traditional approaches because these
solutions are rapidly deployable and lever-
age existing investments in data systems
and Web technology. Also, these proven so-
lutions can be deployed in weeks rather than
years, helping companies realize their vision
sooner rather than later.
Barry Irani
Oscan Teoh
Tom Woolley
The Information Store

E- TECHNOLOGY
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Rotator is a premier designer and manufacturer of subsea and topside control valves, subsea chemical
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Rotator is located in the Southern part of Norway with easy access to the international market. Rotator is fully
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New impact technology could
revolutionize wireline logging
Moving intervention into a new zone
S
ince the introduction of slickline
technology for wellbore intervention,
there has been a need for a measure-
ment device that can determine not
only the strain on the wire, but the
forces applied to the toolstring.
Today, what stands between a successful
intervention and a miss-run is the skill of
the slickline operator and the surface weight
indicator, known as a load cell.
Newly introduced impact sensor technol-
ogy changes the status quo. Now, an opera-
tor using impact jars and manipulating tool
strings to impact a device for installation or
retrieval no longer has to rely solely on skill
and a surface weight indicator.
Value of impact
sensor technology
Impact sensors enhance the operators
understanding of the downhole conditions
by combining the weight indicator, the engi-
neer, and the impact sensor.
According to Stuart McLaughlin, presi-
dent of Impact Guidance Systems Inc.,
impact sensors aid in training slickline op-
erators because they allow the operator to
better understand what is occurring down-
hole by supplying results and information.
Using pressure and temperature sen-
sors and the ability to log with jarring, the
system can be used when retrieving devices
that can have differential trapped behind
them. Sensors also can be used when shift-
ing SSDs and can monitor U tube effects of
uid at depth, McLaughlin says
Evaluating the challenges
The primary reason for deploying impact
sensors is to produce digital data. The data
can be shown on charts that display the ac-
tual forces being applied to a given toolstring
conguration at depth. Toolstring congura-
tions differ greatly, and there can be hun-
dreds if not thousands of ways to congure
a toolstring assembly for a given installation
or retrieval, McLaughlin says. Completion
geometry also differs from eld to eld, and
toolstring dimensions must change to ac-
commodate this.
Another consideration is horizontal com-
pletion technology, which greatly acceler-
ates production, but greatly reduces func-
tionality of slickline deployed equipment,
McLaughlin explains. Wellbore deviation
causes friction on toolstrings, which reduces
the functionality of the impact jars. Reduced
jar functionality ultimately impedes the op-
eration, sometimes to the point that the op-
eration cannot be completed successfully.
While the application of impact sensor tech-
nology benets both the service provider and
the operator, it does not eliminate the need for a
surface weight indicator or load cell, McLaugh-
lin says. To function properly, the technology
requires the application of three critical compo-
nents; the impact sensor, the load cell, and the
skill of the slickline engineer.
Applying the technology
Impact sensor technology has been used
with slickline toolstrings in over 100 applica-
tions since its launch in September 2005, says
McLaughlin. The technology had been applied
by electric line, coiled tubing, drilling, and res-
ervoir analysis groups as well as others in the
industry, but it was applied less than two years
ago to the slickline intervention business.
The primary reason impact technology
was not applied to slickline operations soon-
er, McLaughlin explains, was a reluctance
resulting from the perceived risk associated
with deploying slickline into the well bore
where an unknown event could cause irrep-
arable damage to the completion system or
at the very least, a costly exercise in equip-
ment recovery.
In fact, using impact sensors with the slick-
line toolstring eliminates many unknown risk
factors by supplying the operator with known
parameters being applied at depth.
Using impact sensors
with downhole equipment
McLaughlin says the design of the impact
sensor is in line with todays slickline tool-
string geometry. The system comprises
a single modular structure that emulates
slickline weight bars in terms of dimension
and physical properties. The modular design
permits implementation of the system below
the mechanical impact jarring tool.
The location of the sensor is critical to its
reliability. When placed below the mechani-
cal impact jar, the sensor only sees impact
forces when it is in one of two positions:
latched onto a device in preparation for im-
pacting downwards with the mechanical jar
and latched onto a device in preparation to
upwardly impact with the mechanical jar,
McLaughlin explains.
Positioning determines the ability to ac-
celerate the impact sensor prior to impact
and protects the electronics packaged with-
in the tool from damage resulting from the
massive deceleration process after the me-
chanical jars impact.
McLaughlin says the physical properties
of the impact sensor must meet or exceed
that of the toolstring to which it is attached
and must be able to withstand impact forc-
es of varying degrees of severity. Where
smaller diameter toolstrings are used, im-
pact forces are generally reduced; so a cali-
brated impact sensor would be supplied for
that application.
Material selection is also critical. The
sensor must be of at least the level of the
material composition to which it is mated,
Judy Maksoud

DRI LLI NG & COMPLETI ON
Impact sensors can determine if a sliding sleeve
is open or closed and can read the inclination
of the tool string at depth. They also measure
temperature and pressure.
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McLaughlin says. Compatibility aids in the
sensors force recognition capability because
the sensor does not have to determine dif-
ferent material yields from one toolstring to
another, a factor that can cause differences
in acquired impact data.
Jarring tools
The system is design to operate with the
minimum of human interface but does have
the ability to be programmed with various
cycles for alternate toolstring congura-
tions, McLaughlin says. The system incor-
porates timing sequences that permit the
operator to increase or decrease record in-
tervals during impact events that are occur-
ring downhole:
Where mechanical jars are to be used,
the operator may only require a ve-
second record time during each impact
event and prior to re-setting the jars for
the next impact event
Where hydraulic jars are to be used, the
operator, may require a longer record in-
terval due to low temperatures to ensure
the hydraulic jar impact event is captured.
When a hydraulic jar is activated in a low
temperature well, ring times for the jars
can extend to several minutes.
The impact event itself is critically im-
portant, McLaughlin says, and can vary in
length and force as a result of several fac-
tors, including:
Acceleration
Deceleration
Toolstring weight
Toolstring deviation
Tubing size
Wellbore uid
Winch speed
Wire size
Wellhead/lubricator pressure.
Duration is also a factor. Two impact events
of the same force can be applied to the same
device with different results, McLaughlin ex-
plains. This happens when the length of the
impact event changes as follows:
9.072 kg (20,000 lb) impact force with a
duration of 20 ms.
9,072 kg (20,000 lb) impact force with a
duration of 200 ms.
While both impacts are of the same force,
the time the force was applied to the device
changes by a factor of 10. This type of impact
event frequently is seen in toolstrings, and the
results can cause enormous variations in the
ability to install or retrieve a specic device.
The problem, McLaughlin explains, is that
impact duration is not generally measured.
It is clear that the ability to understand
the impact duration for a specic toolstring
assembly can greatly enhance the success of
a particular intervention, McLaughlin says.
Impact jars are complex pieces of equip-
ment, but the point at which the stored en-
ergy is released to create an impact event is
by far the most dynamic consideration. The
variety and variability of conditions that jars
are exposed too is so diverse that no amount
of testing can ensure that the jar will func-
tion as required in various conditions every
time, McLaughlin says.
Impact testing
theory, application
From testing to application, McLaughlin
says, impact sensors have shown that while
some of the theory that was believed to be
true was indeed valid, other accepted theo-
ries do not match up to best practices.
Testing jars using impact sensors reveals
that jars manufactured to release a calcu-
lated force do not perform the same on the
test bed at surface as they do downhole,
McLaughlin says.
While this observation itself is not star-
tling, McLaughlin says, what is surprising is
that the loss of force discovered during test-
ing and in live well applications is far greater
than expected. In some cases during live well
application at depth with moderate, 40o devia-
tion, the impact sensors are showing that the
loss from the jars at depth can exceed 40%.
When the multitude of toolstring congu-
rations a single jar design can be impacted by
is taken into account, it is evident that there
are many open questions regarding what is
really happening at depth, McLaughin says.
Is the result of miss-runs in the eld due
more to jar performance, or are well condi-
tions to blame? he asks.
Impact sensor calibration
For an impact sensor to be used as an ac-
curate method of analyzing impact force, the
unit has to be calibrated to a known standard
so a true measurement can be determined.
Many of the output forces a device gener-
ates are based on mathematical calculations
that can give an indication of the expected
force in a perfect environment, but adding
Applications where impact
sensor technology is being used
Heavy duty fshing operations
Plug setting
Plug retrieval
Sliding side doors (SSD) manipulation
Side Pocket Mandrels (SPM) manipu-
lation
Safety valve change-out
Bridge plug retrieval
Tubing Conveyed Perforating (TCP)
gun fring force recognition
High-deviation device installation/re-
trieval
Formation isolation valve (FIV) ma-
nipulation
Crown plug installation/retrieval
Tubing patch retrieval
Pressure and temperature logging
(long/short term)
Differential pressure analysis (plug
retrieval)
Pressure test confrmation at depth
(plug setting)
Drift with bottomhole survey
Day-to-day operations with pressure/
temperature survey
Gradient surveys
Static surveys
All of these application can be
performed in combination with the
onboard sensors built into the impact
sensor module. The ability for the
system to withstand impact forces of
110,000 lb (48,895 kg) for a 1.75-in. (44.5
mm) diameter tool negates the need for
separate drift runs or alternate inter-
ventions to take place.
The ability of the impact sensors
gauges to withstand these forces al-
lows the sensors to be deployed in any
toolstring wellbore application, includ-
ing heavy duty fshing operations, with-
out the need to frst make a drift run.
The impact sensor is placed below the jarring tool.
Rope socket
Weight bar
Hydraulic
impact jars
Spangs
Impact sensor
Run/Pulling tool
Plug
Mechanical spang jars
Upward and downward
impacts recorded
Tubing
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variables such as uid, scale, angle, pressure, and temperature, can
affect the true output value, McLaughlin says.
One example is wireline jars, McLaughlin says. Jars are de-
signed to initiate an output force once manipulated. Based on recent
verication testing using impact sensors, we have seen that once
environmental variables are introduced, values can change dramati-
cally, which means the desired output may not be achieved.
Wireline Jars are generally tested on a service providers test bed.
Without a known, accurately calibrated standard, it is not possible to de-
termine the true output force from the test bed and from the device be-
ing tested, McLaughlin says. Service providers generally manufacture
their test beds to their own internal standards, so it is likely that there is
a variance between the test beds of one company and another.
One method of ensuring consistency is to calibrate the test bed to
a known standard. Standard ASTM-E-4-03 is dened by the Ameri-
can Society for Testing and Materials. The standard incorporates the
guidelines for force verication by means of a calibration device.
In order to satisfy ASTM-E-4, the impact sensor can be calibrated
in line with a load cell and a precise loading force. Once calibrated,
the impact sensor was capable of measuring the applied force within
a tolerance of +/- 0.03%, McLaughlin said.
A calibrated impact sensor can be made up to the bottom of a jar
either on a test bed or downhole environment and can be used to
determine the true output force with reference to a known industry
standard.
Surface equipment interface
An impact sensor is a memory-based system that has to be pro-
grammed prior to installation. The USB serial interface of the device
IGS has designed couples both the surface PC and the impact sensor via
a USB cable and interface box, McLaughlin explains. A probe attached
at the interface box is inserted into the impact sensor receptacle on the
female thread end of the tool to be programmed.
Programming in this manner eliminates the need for breaking down
or unscrewing modular assemblies, McLaughlin says, so it simplies
programming and saves a lot of time. It also maintains sensor integrity.
An isolation plug is inserted into the female threaded portion after the
tool is programmed to ensure no hydrocarbons enter the assembly.
The surface interface allows the operator to program the system
with a one-touch, one-button operation, which reduces the possibility
of programmable human error, McLaughlin says.
The surface PC operating system walks the operator through the
programming process and informs the operator what can and cannot be
accommodated during programming.
Old vs. new
Slickline engineers have always known that when jarring at shal-
low depth less than 305 m (1,000 ft) the preferred method for
applying a signicant force is to jar by hand, holding the wire and
manipulating it by pulling and releasing it.
Using a wireline winch at shallow depths is not ideal, McLaughlin
explains, because the winch is generally hydraulically operated and
cannot react quickly enough at shallow depths for efcient jar action
to be applied. Whilst the theory is widely accepted, until now, it has
never been proven other than in consistent and successful hand jar-
ring application, McLaughlin says.
Applying impacts at depth with the wireline winch at 131 m (430 ft)
enabled a maximum impact force of 3,050 lb (1,383 kg). When the impact
was carried out by hand, however, the results were drastically improved
and showed a maximum impact force of 4,200 lb (1,905 kg).
This theory is now proven through the impact sensors ability to
supply accurate and consistent data, McLaughlin says.
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High-resolution LWD image
logs versus wireline image logs
W
ellbore stability analysis using wireline borehole images
is well established. Today, high-resolution logging-while-
drilling (LWD) images are available, and they offer infor-
mation in real time, as well as the opportunity to acquire
time-lapse information through re-logging while tripping.
Drilling practices continually push well design boundaries in the
areas of extended reach drilling, high pressure, and geometrically
complex well design. These scenarios require increasingly sophisti-
cated wellbore stability management. With the real-time information
within the while-drilling high-resolution images, a method has been
developed for real-time incorporation in to well bore stability man-
agement that will reduce risks in these challenging well conditions.
Understanding application differences
Wireline data, geophysical information, and offset well data are
used to dene a pre-well earth model. A wireline image measure-
ment of the borehole often yields information on the near-wellbore
stress regime. While such measurements are useful, by nature the
well has already been safely drilled. Casing strategy and mud weight
schedules based on the pre-well model are hence most often locked
into a drilling program.
The well bore integrity challenge until now has been that geome-
chanical modeling work is carried out up front and is rarely usefully
updated up in real time, where the greatest chance of failure is dur-
ing the drilling execution phase. In addition, real-time pore pressure
prediction techniques based on acoustic data, resistivity data, and
mud logging data help to rene the pre-drill model but still do not
dene the wellbore stress mechanism.
High resolution real-time LWD measurements can inuence cur-
rent and future drilling activity through indicating this stress mecha-
nism helping to calibrate the eld and pre-well stress model on the
y. Dynamic events such as induced fractures and well-threatening
instability are detected by these LWD images.
Understanding of the differences between the application of while-
drilling (LWD) and wireline imaging measurements allows us to use
both appropriately where we see good use for LWD images in the real-
time domain and wireline images in the pre-well modeling domain.
Comparing LWD and wireline logging
There are three fundamental differences between LWD and wire-
line electrical image logs:
Time of acquisition: Wireline logs are usually acquired 2-10 days
after drilling, whereas LWD logs are acquired minutes to hours
after drilling. With increasing time, ltercake build-up and inva-
sion increase as do the likelihood and potential severity of break-
out and other types of wall damage. In addition, induced fracture
aperture will not be at a maximum and is likely to be masked by
ltercake or annealing. LWD data can be acquired again on trip-
ping out of hole, up to a few days later, in which case the borehole
environment may be closer to that of wireline
Physical environment: Image acquisition on a dynamic platform
(e.g. rotating) is subject to vibration with dynamic pressure and
temperature changes, whereas wireline images are acquired at
equilibrium with a static uid column and tool motion determined
largely by the logger. Despite the dynamic environment LWD re-
cords the borehole in its most pristine condition (before deteriora-
tion and mud invasion)
Type of measurement: Wireline logs from an offset well can have
a complete suite of measurements for a post-well geomechanical
study, which forms the basis of a pre-well stability model. As wireline
measurements have been available for longer than while-drilling an-
alogues the assumptions, limitations and response sensitivities are
often better understood and integrated into processing workows.
Wireline electrical image logs are made using a series of buttons
on pads pressed onto the borehole wall, providing high resolution
but only partial borehole coverage. Conversely, LWD electrical im-
ages use drillstring rotation to scan the borehole wall using a single
sensor providing full borehole coverage and the ability to interpret
non-sinusoidal and discontinuous features on the borehole wall.
Well V sedimentological
and geomechanical characteristics
Data was used from a vertical well that was logged with high-reso-
lution LWD, wireline electrical imaging tools, and a range of other
G. Lindsay
S. Morris
J. Lofts
Inteq
S. Ong
Baker Atlas

The LWD image, left, shows induced fractures and wireline image over
the same interval in which induced fractures are not visible. Note that
induced fractures terminate against the more competent cemented zones.
Both images pick out thin laminations well.
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wireline measurements (including acoustic). The well was set in an
extensional basin of the North Sea and penetrates Jurassic uvial
and littoral sedimentary rocks.
Good agreement is seen between LWD and wireline images for
sedimentilogical features (bedding and lamination). In addition, rea-
sonable agreement is seen for structural features. However, poor
agreement between LWD and wireline geomechanical features may
be due to:
Time lag differences between LWD and wireline: Drilling induced
fractures (DIFs) were poorly imaged. This is caused by healing
of DIFs following drilling. The features are not threatening well-
bore integrity but are an indication that the mud weight is too high
which may also have caused hydraulic slowing of rate of penetra-
tion and an increase in mud loss to the formation.
Poor log quality: Caused by borehole shape. However, both break-
out and DIFs occur together but may not have been formed si-
multaneously.
Incomplete borehole coverage: DIFs missed due to gap between
pads. However, the arc width on the borehole of DIFs is greater
than the non-imaged gap between the wireline pads, indicating the
addition of healing lowering their visibility.
Geomechanical image analysis
In geomechanical modeling, an earth model should be calibrated
through back analysis of well data in order to lend credibility to for-
ward predictions. Borehole images showing failure features such as
breakout and DIFs provide the best source of information for con-
straining the far-eld stress tensor. Ideally for real-time applications,
a pre-well model should be constructed using offset well data and
then calibrated while drilling using LWD data to generate an opti-
mum solution for management of wellbore integrity.
The data from Well V were used to construct a pre-well geome-
chanical model using LWD and wireline image data, compressional
& shear slowness and leak-off tests (LOT). A stress polygon for this
well was plotted in which a friction coefcient of 0.7 was used to
constrain the maximum horizontal stress bounding the strike-slip
regime. Superimposed on the stress polygon were two failure lines
that delineate the limit of tensile and shear failures at a mud weight
of 1.83 SG. Due to high mud weight the wellbore was mostly in ten-
sion, resulting in the formation of DIFs.
Conversely, the occurrence of shear failure or breakout will be
inhibited by high mud weight except in low strength sections or in-
tervals having high in-situ stress anisotropy. This initial assessment
of plausible failure mechanisms is supported by areas bounded by
failure lines on the stress polygon for a normal fault regime of which
the latter is common in the North Sea.
An abundance of DIFs interspersed with some minor breakouts
are visible on the LWD images. The presence of these provides
real-time calibration of the pre-well geomechanical model. Using a
horizontal stress anisotropy value of 1.17 derived from the stress
polygon, the mud weight required to initiate hydraulic fracture and
breakout were calculated and plotted with depth. The mud weight
used was superimposed on the diagram. In most cases the static
mud weight is less than the fracture initiation pressure (FIP), but
the equivalent circulating density (ECD) exceeds FIP for most of
the interval, resulting in the formation of DIFs during drilling. Bore-
hole breakout developed at several intervals where collapse pres-
sure exceeded mud weight.
The agreement in occurrence of DIF and breakout between pre-
well model and measurement is coincidental. In most cases, the
pre-well model normally requires substantial adjustment in order to
match well measurements. Borehole breakout can be used to ne
tune the model to match breakout width and the calibrated model
can then be used to optimize drilling parameters and performance.
Real-time images
Wellbore instability problems while drilling range from slight (vi-
bration, stick-slip, irregular weight transfer) to severe (stuck pipe,
lost circulation, wellbore collapse).
Determining a real time solution is a challenge as the symptoms
are often similar but the remedial action very different. Before the
advent of high resolution LWD images, insufcient information in
real time meant certain features (ledges, spiraling, chemical dis-
equilibrium and unconsolidated sandstone) may have been misin-
terpreted as borehole stress indicators.
This challenge has been met by the availability of high resolution
images while drilling, which can be used in three main ways to aid
interpretation:
Structural interpretation: Accurate dip picking in all wellbore ori-
entations can be used to examine the relationship of bedding to
the wellbore, with reference to the pre-well model and to check
that geometry-dependent mechanical assumptions are correct.
Dips can be used to conrm surface orientations in a seismic mod-
el, allowing prediction of approaching pressure and mechanical
changes. By adding the sub-seismic detail, pore pressure regime
and potential geomechanical settings can be predicted. In addi-
tion, smaller scale components such as sandbody geometry can
be delineated, allowing pore pressure centroid calculation
Sedimentary interpretation: Identication of lithology and fab-
rics allows comparison with analogous environments. These are
particularly useful where there is an offset core from which mea-
sured rock strength properties may be used to rene the pre-well
model. Successful identication of thin beds or inter-sandstone
mudrock layers will enhance the understanding of potential pres-
sure compartmentalization and differentiating them from bore-
hole problems (ledging and spalling)
Geomechanical features: The identication of breakout, DIFs, en-
hancement of natural fractures and shear plane failures indicate
how the formation (and the borehole) is reacting to the drilling
process and their magnitude can be compared to the pre-well
model. These features are the most critical for determining chang-
es to drilling parameters.
Real-time images
in wellbore integrity management
The pre-well model incorporates features which identify potential
drilling hazards, also including offset well logs, seismic models and
core data. Following this, a well logging program can be designed
to deliver sufcient real-time data, including images, to identify
wellbore integrity issues. These include at least gamma ray and re-
sistivity logs for correlation with offsets, a compressional acoustic
measurement and a high resolution image for identication of geo-
mechanical features. Formation pressure measurements are useful
for calibration of the pore pressure model.
The logging requirements then dictate the BHA design, drilling pa-
rameters, and contingency logging options which will include an assess-
ment of likely wellbore instability problems. The well program allows
drillers to make wellbore stability decisions up to a pre-dened limit.
Understanding of the differences between the application of while-
drilling and wireline imaging measurements allows us to use both ap-
propriately where we see good use for LWD images in the real-time
domain and wireline images in the pre-well modeling domain.
Acknowledgments
The authors thank Jose Cabrera and Chris Wolf for their input to this paper. Ad-
ditionally we thank the operator for allowing data usage.
Editors Note: This is a summary of a paper presented at the 2007 SPE/IADC
Drilling Conference in Amsterdam, The Netherlands, Feb. 2022, 2007.
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________________________
Oil-based mud imaging
tool meets challenges
Overcoming a persistent limitation
W
ith advancements in drilling tech-
nology have come equivalent
advancements in the uids used
with this technology. Improved
oil and synthetic based drilling
uids (muds) have been developed and are
being used to drill wells in hostile environ-
ments where high pressures, high tempera-
tures, thick shales, and shale sloughing are
encountered. Both the risks and costs for
these wells are high.
While the improved uids have gained in-
dustry support for their efciency and useful-
ness, they have also complicated the logging
processes involved in collecting the data nec-
essary to evaluate difcult drilling prospects.
One of the challenges is from oil-based and
other non-conductive muds used in drilling
thin beds, shale, and low-resistive formations.
Evaluation challenges
The evaluation of thinly bedded forma-
tions poses unique challenges for the in-
dustry. Exactly what constitutes a thin bed
is argued by petrophysicists, but a general
denition might be any bed with a thickness
that is less than the vertical resolution of the
standard open hole log suite (e.g. a quad
combo), which in most cases is between 1
and 2 ft. As the bedding thickness decreas-
es, accurate reservoir characterization be-
comes increasingly difcult. In the limit of
centimeter-thick bedding, detection of the
reservoir is at risk.
A typical solution to the above problem is
to augment the standard log suite with high
vertical resolution electrical images. Some
logging tools can generate electrical im-
ages with vertical resolution on the order
of a tenth of an inch. When used in concert
with the standard log suite, the electrical
images facilitate a more complete charac-
terization and evaluation of a thinly-bedded
reservoir.
Common imaging applications include
high vertical resolution pay zone volumetrics
(both uids and minerals), pay zone detec-
tion (in extreme thin bed /low contrast
pay zones), structural and stratigraphic dips,
sedimentary features and textures, and net-
to-gross sand counts. Also, identication of
faults and unconformities, evaluation of sedi-
Paul Elliott
Halliburton Wireline
and Perforating Services

Once on bottom, the six calipers arms are opened, the pads are energized, and the log is re-
corded in the up direction between 10 and 30 fpm, depending on borehole conditions.
Fiberglass
sleeve
5 in
12.70 cm
4.25 in
10.8 cm
Instrument
section
163.31 in
414.81 cm
Mandrel
330.5 in
839.47 cm
167.19 in
424.66 cm
5 in
12.70 cm
Max OD
5.5 in
at standoffs
with pad closed
61.68 in
156.67 cm
with arms
retracted
24.60 in
62.48 cm
with arms
retracted
The OMRI tool is 27.54 ft in length, 5.5-in. in
diameter, and can operate in a hole as small as
6.5-in. or as large as 16-in. diameter.
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mentary sequences and ow units, lithologic
unit thickness, secondary porosity evaluation,
sequence stratigraphy analysis and borehole
stresses analysis.
While electrical imaging technology has
been available for 20 years and has seen cer-
tain advances in performance (e.g. dynamic
range, borehole coverage), there has been
one persistent limitation--the drilling mud
must be electrically conductive. In virtually
all water-based mud systems, this condition
is satised. The electrical currents that com-
prise the images are able to easily pass be-
tween the imaging tool and the formation.
However, in oil-based mud (OBM) sys-
tems quite the opposite condition is pres-
ent. Oil muds and mud cakes are virtually
perfect insulators and current passage from
conventional imaging tools to the formation
is almost impossible. Clearly, a new type of
sensor technology is required to satisfy the
demand for electrical images in oil muds.
New imaging technology
After several years of research and develop-
ment into OBM imaging, Halliburton recently
introduced its Oil Mud Reservoir Imager
(OMRI) to the industry. The tool uses sensor
technology capable of electrical current gener-
ation in the formation without direct coupling
to generate high resolution electrical images.
The tool has no dependency on mud
conductivity, and the sensor performs in all
types of oil mud systems, whether synthetic
or natural. The tool retains the six-arm con-
guration of previous imaging tools to offer
the same degree of borehole coverage. Each
of the six arms is independent and each pad
is articulated in two axes. This design helps
the tools pads maintain positive contact with
the formation wall an important factor for all
wireline imaging technologies. Finally, a
signal acquisition scheme is employed that
electrically compensates for those cases
where good pad contact cannot be main-
tained due to washouts, borehole rugosity,
or other abnormalities.
Tool operation
Once on bottom, the six calipers arms
are opened, the pads are energized, and the
log is recorded in the up direction at be-
tween 10 and 30 fpm depending on borehole
conditions.
Directly in front of each pad, voltages
from about 3 in. into the formation are re-
corded by an array of receivers. These volt-
ages are sensitive to the varying resistivities
of the formation layers and have vertical res-
olution on the order of 1 in. Then they are
transformed into micro resistivity curves
which, in turn, are processed in real time to
produce oriented color images.
Physically, the tool is 27.54 ft in length
and 5.5 in. in diameter. It can operate in a
hole as small as 6.5-in. or as large as 16-in. It
weighs 760 lbs and is rated for operations at
up to 350F and 20,000 psi. Images are ob-
tainable in mudcakes up to 0.25 in. thick and
in formations with resistivities ranging from
0.5 to 10,000 ohm-m.
Since the industry is and will continue
to pursue shallow and deepwater basins
throughout the world using oil-based or non-
conductive muds in thin beds, shale and low
resistive formations, this technology elimi-
nates these challenges. As a result, geolo-
gists can now pinpoint structural details and
features such as faults and thin beds harbor-
ing hydrocarbons that otherwise would go
undetected and unproduced.
The industry today has the opportunity
to meet or exceed the demands of drilling
in extreme environments where high pres-
sures, high temperatures, shale sloughing,
or thick shale formations under extreme
stress are encountered.
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Shah Deniz in full flow following
complex platform set-down
First application for TPG 500 outside North Sea
P
roduction is building at Shah Deniz in the Azeri sector of the
Caspian. Under the rst phase of the BP-operated develop-
ment, nine wells will deliver up to 900 MMscf/d of gas and
58,000 b/d of condensate. All production is being exported
through parallel sea lines to a terminal in Sangachal, on the
shore of Azerbaijan.
The wells are being drilled from a three-legged TPG 500 jackup
platform, supplied and installed by the projects main engineering
contractor, Technip. Shah Deniz is the third application of this pro-
prietary design, the forerunners being BPs Harding and Totals El-
gin/Franklin in the North Sea.
BP rst engaged Technip for engineering studies in 1999, shortly after
discovering Shah Deniz, 100 km (62.14 mi) offshore Baku. The focus at
that stage was on the problematic seabed soil and seismic conditions, and
the impact these might have on the dynamics of the platform.
Two years later, BP awarded Technip front end engineering design
and detailed engineering studies. Following approval for the offshore
pipeline route and more controversial onward routing across south-
ern Georgia for the gas, the partners eventually sanctioned develop-
ment in June 2003.
BPs selection of a TPG 500 drilling, production and living quar-
ters facility was driven in part by favorable experiences at Harding in
the late 1990s here the platform was delivered on time, and began
drilling within a week of the installation, according to Technips Se-
nior Vice President, Offshore Technologies, Pierre-Armand Thom-
as. But the Shah Deniz partners were also mindful of fabrication
constraints in the Baku area, with the main yards virtually commit-
ted to the concurrent ACG Phase 2 development.
The TPG design, however, allows for fabrication in sections, which
can be brought together later on for nal assembly at one site.
This meant that the bulk of Shah Denizs platform construction work
could be managed initially by a yard outside the Caspian Sea, before be-
ing imported via the usual canal and overland transport routes. Another
benet of the concept in this land-locked region is that it does not entail
heavy lifts offshore, nor is there a need for large-scale logistics, beyond
the use of tugs to tow the platform to its offshore location.
BP contracted Keppel FELS in Singapore for the platforms 22,400
tonne (24,691 ton) hull, along with three wellhead modules and two
production manifolds. Nymo in Norway was awarded the 2,200
tonne (2,425 ton) drilling module and derrick, designed by KCA
Deutag in Aberdeen. In total, companies from 28 countries supplied
materials and equipment for this project.
Technip Maritime Overseas was responsible for transporting these
items in packages for subsequent assembly at Keppel FELS oating
dock in Baku, and at the Socar-owned Zykh yard outside Baku. It also
recruited and trained local personnel, which resulted in Zykh com-
pleting assembly of the three 135 m (442.91 ft) long jack-up legs (all
pre-fabricated by Technip and French company Industeel), the sup-
porting spud cans, the 120-man living quarters, and the are boom. At
peak, 3,600 people were employed on site for this project.
With a total weight of around 33,000 tonnes (36,376 tons), the
completed platform is lighter than the TPG 500 at Elgin/Franklin,
but heavier than Hardings. In terms of the topsides, says Thomas,
the main differences to what we did before are the rather sophis-
ticated, automated, 15,000 psi drilloor equipment, to manage ow
from the high pressure wells (7-800 bar). We have designed the pro-
duction facilities to withstand 850 bar, including the two production
manifolds, valves and separation equipment.
The overall jet re design extends to the living quarters module,
which is equipped with blast walls. It has been positioned well away
from the well bay, which is itself enclosed by a blast wall.
The pigging system is relatively sophisticated, Thomas adds,
but otherwise the process equipment is pretty light, with two 15 m
(49.21 ft) high separators providing one-stage separation.
The platform has been installed over a 15-slot drilling template.
Four of the wells were pre-drilled prior to the eld coming onstream
last December. After phase 1 is completed, the platform will have six
spare conductor slots, so this may allow the platform to serve as a
hub for future discoveries in the area.
Inward shipment
By October 2004, all main sections of the hull, drilling, and well-
head modules built outside Azerbaijan were in Baku. Following
transportation onboard the Mighty Servant III, the seven packages
built in Singapore had been transferred onto barges for onward
shipment through the Volga Don canal system from the Black Sea.
The drilling equipment came in from the northern entrance to the
Caspian Sea, via the Baltic-Volga waterways.
This was not a simple task, Thomas points out, in part because
of the need to maintain water-tightness of the pre-fabricated hull
strips while in transit. To do this, we had to install double bulkheads
in the hull design. Also, the weather was freezing for the journey
through the Caspian, although we had organized our logistics to
Jeremy Beckman
Editor, Europe

PRODUCTI ON
The three-legged TPG 500 jackup production platform is installed on the
BP-operated Shah Deniz feld in the Caspian.
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PRODUCTI ON
take that into account.
Following welding of the strips at the Keppel FELS-owned oating
dock in Baku, the assembled platform was towed to Zykh in March
2005 for hook-up, including pipework connections.
Technip had trained 20 welders to manage Zykhs Legs pre-fabrica-
tion work. Our main concern had been the jackup legs, which would
involve welding the highest grade of steel available with the highest
tolerances. Our training program turned out to be a good move, re-
sulting in a very low repair rate. But the design of the TPG 500 legs
was also favorable in that regard, calling for the same diameters for
the bracings, with the same nodes everywhere. This made for repeti-
tive welding procedures, which in turn made the training easier.
More major problems lay ahead, however, due to seabed condi-
tions at the set-down location. According to Thomas, although the
4-m [13.12 ft] deep sand layer on top provided reasonable resistance,
the burden was the 2 m [6.56 ft] of soft clay underneath, with below
that more sand. We would have to penetrate this third layer of sand
by up to 2 m [6.56 ft].
At the same time, we also had to contend with a 1% gradient slope,
and varying thickness of the clay. Our chief preoccupation concern
was resistance. We didnt know what we would encounter, so we had
to devise an installation procedure to cover all hypotheses.
Elgin Franklins jackup was xed to the seabed by means of fairly
small, temporary spud can piles at the base of each leg. Shah Den-
izs conditions dictated the need for much larger spud cans 12 m
(39.37 ft) high, and 30.48 m (100 ft) in diameter, 1,200 tonnes (1,322
tons) driven deep into the seabed to provide a stable foundation
for the platform.
Unfortunately, the shallow draft at Zykh ruled out mating of the
spud cans to the bottom of the legs at the quayside. This forced the
joint BP/Technip project team to devise an alternative connection
procedure at a designated offshore site prior to installing the plat-
form above the drilling template.
Each can comprised a 4-m (13.12 ft) high upper section housing
ballast tanks for controlling ascent or descent in water, and an 8-m
(26.24 ft) deep bottom section, with ballast pumps on top of the cans,
along with a locking mechanism providing attachment to the legs.
All the cans had also been reinforced by a concrete grout base. The
plan was to tow them 70 km (43.5 mi) to an offshore parking sta-
tion, ahead of their eventual mating with the TPG 500 jackup legs.
To prevent the cans capsizing en route, Technip designed a sup-
porting U-shaped cradle 30 m (98.42 ft) long and 45 m (147.63 ft)
wide, surrounded by three 15-m (49.21 ft) high otation tanks. This
600 tonne structure was built at the Bos Shelf SPS construction yard
near Baku.
As Zykh lacked the lifting capacity to place the cans within the
cradle, Technip decided to strengthen the quayside with 40-m long
piles and concrete coverings to support a temporary crane. The
2,500-tonne (2,755 ton) lift vessel Mammoet MSG 50 was brought
across for this purpose, via rail containers.
In March 2006, following re-assembly at Zykh, the crane lifted the
rst of the cans into the cradle. Once the can had been clamped
to the otation tanks, it was towed at a draft of 5.5 m (18 ft) to the
parking site. On arrival, the clamps were released, allowing the can
to oat free. Following deballasting, the cradle and its tanks were
towed back to Zykh to repeat the process for the remaining cans.
The fully commissioned platform left Zykh in mid-April 2006 for
mating with the cans at a pre-arranged mooring location. The team
had hoped for fair weather for the 19-day tow-out, but in fact they
were subjected to a 50-year return-period storm, followed by a less
severe storm. No damage resulted, although at one point there was
a 5.5-m (18 ft) signicant wave surge between two of the spud cans,
one of which was already connected to the sea oor.
After the platform had been moored in 70 m (229.65 ft) of water,
the cans were also brought to the site, and connected one by one to
the base of the jackup legs via three control lines. They were then
lowered into the water using a technique devised by Technip to pre-
vent damage to the lines on the way down.
This operation, controlled from the jackup, involved ballasting the
cans so that they descended through the water in a regulated, pen-
dulum motion before settling a short distance below the platform
leg. The latter was then itself lowered to achieve connection to the
can, before being retracted to the platform, ahead of the 15-km (9.32
mi) journey to its installation site.
For this nal operation, the platform was rst secured in position
above the drilling template by four anchored vessels. The legs were
then slowly deployed to the seabed, the penetration speed of the
spud cans being controlled to avoid punch-through while traversing
the soft clay strata. When the three legs had been secured, the hull
was jacked up to a position 5.5 m (18.04 ft) above the water line.
Once penetration had been completed, and further quantities of
concrete grout added to secure the foundations, the platform was
jacked up to its nal operating height of 13.5 m (44.29 ft) above the
sea surface.
According to Thomas, Shah Deniz employed the same basic jack-
ing system as in the previous two projects, although slightly more
powerful. However, this one features only 72 pinions, compared with
90 on Hardings system even though the topsides load is heavier.
We managed this by improving certain characteristics, such as
metallurgy, Thomas said.
For this project, Technip and BP had an integrated team. Some
parts of the contract had to be managed by BP alone, Thomas points
out, particularly when it came to liaising with local authorities in
Azerbaijan. Otherwise, we supervised the project initially from Paris,
before part of the team moved to Baku to manage the fabrication. We
also brought together a dedicated team for the mating operation.
In the end, the eld produced rst gas at the originally desig-
nated date of December 2006, so despite all the difculties we en-
countered along the way, we are very pleased with the outcome.
Our training program at Zykh also proved to be worthwhile. I was
reluctant at rst to have the legs assembled in Baku, but it went
very well.
Technip continues to promote the TPG 500 concept in the North
Sea and other parts of the world, including the Gulf of Mexico, Ven-
ezuela, West Africa, and the Asia-Pacic region. One option under
review is a reusable version that could switch between marginal
elds following relatively short periods of production.
The TPG 500 under tow to installation site.
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$38 billion to go to floating
production during 2007-2011
FPSOs lead the pack
R
ecent years have seen a rapid expan-
sion of the worlds FPSO eet, prompt-
ed in part by an increased demand
for drilling units that has reduced
the number of semisubmersible rigs
available for conversion to production plat-
forms. International legislation (introduced
largely in response to the Exxon Valdez disas-
ter) that phases in requirements for tankers
to be tted with double hulls provides fur-
ther stimulus to demand since conversion of
otherwise obsolete single-hull tankers into
FPSOs enables the protable re-utilization of
depreciated assets.
FPSOs dominate the global oating produc-
tion scene. As of year-end 2006, there have
been over 175 FPSO deployments worldwide
50% more than all the other oating produc-
tion systems (FPSSs), TLPs, and spars put
together.
The reasons for the popularity of FPSOs
as host facilities are not difcult to fathom.
FPSOs offer large deck areas for processing
facilities and plenty of vertical load-bearing
capability to resist mooring and riser loads
at economical cost and with relatively short
lead times, since tankers are produced in
large numbers from shipyards worldwide.
FPSOs also have the advantages of allow-
ing more exible oil distribution and provid-
ing storage capacity for produced oil, which
can eliminate the need to install pipeline ex-
port networks.
This capability is particularly desirable off
West Africa, for example, where offshore pipe-
line infrastructure is very limited and is restrict-
ed to shallow waters. Off Brazil, the existing
offshore infrastructure is working close to ca-
pacity. The extreme water depths of new elds
mean that costs of shuttle tanker offtake from
FPSOs compares very favorably with the costs
of installing additional export pipelines.
Developing the FPS Sector
Initial FPS installations featured converted
semisubmersible drilling rigs and in the case of
FPSOs, converted tankers. These units tended
to be deployed on marginal elds where the
water depth and/or uncertainties as to the
volume of recoverable reserves meant that de-
velopment using a conventional xed platform
solution was too commercially risky. The FPS
concept has since proved to be a cost-effective
method of developing both marginal and world-
class offshore elds. Present FPS applications
cover a very wide range of offshore develop-
ments in all water depths and environments.
Expansion of the worlds oating produc-
tion eet has been particularly rapid over the
last decade and has been increasingly domi-
nated by FPSOs. Although FPSO numbers
continue to grow, future identied prospects
show that other vessel types, particularly
TLPs and FPSSs, may be increasingly com-
mon on new installations.
It is important to note, however, that these
are prospects, not forecasts. It is likely that
some of the identied prospects will either
be delayed or not come to fruition at all.
Future FPS prospects
by region
Turning to the prospects for individual re-
gions, the data indicate signicant growth is
in the cards for the majority of the regional
Steve Robertson
Georgie MacFarlan
Douglas-Westwood Ltd.

PRODUCTI ON
Africa
26%
Western Europe
10%
North America
15%
Middle East
1%
Latin America
18%
Australasia
10% Asia
20%
11
10
9
8
7
6
5
4
3
2
1
0
$

b
i
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l
i
o
n
TLPs
Spars
FPSSs
FPSOs
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Global FPS capex by vessel type 2002-2011 ($ million)
Regional shares
of identifed FPS
prospects 2007-2011
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PRODUCTI ON
FPS eets. Western Europe has seen the
most FPS deployments to date, but many of
its producing areas are now considered ma-
ture, and signicant new nds are becoming
less frequent. Over the 2002-2006 period,
only three oating production systems were
installed in the region, compared to the
1997-2001 period, during which there were
30 installations.
Between 2007 and 2011, Western Europe
FPS installation activity is set to enjoy some-
thing of a resurgence, with 13 installations
in prospect. The identied prospects for
North America indicate potential for a slight
increase in installations, with 19 in prospect
compared to 17 completed during the 2002-
2006 period. Many projects in the US Gulf of
Mexico have relatively short lead times, and
levels of activity could well exceed the pros-
pects identied here.
There are 124 identied FPS prospects
planned and possible for the 2007-2011. Com-
bined, Africa and Latin America account for
almost 45% of these prospective installations,
with North America and Asia together ac-
counting for another 35%.
Capex forecast
It is important to note that these market
forecasts follow the convention whereby the
date associated with each oater project re-
lates to the platforms year of installation. In
practice, of course, the contractual payments
relating to the FPS units identied are often
made in installments, and in most cases are
spread over a number of years. For the sake
of clarity and transparency, these forecasts
do not attempt to reect this situation. In-
stead, they focus on indicating the value of
the FPS installations that have occurred or
will occur in any particular year.
FPSOs represent by far the largest seg-
ment of the market, accounting for 73% of
the prospective capex. FPSSs account for
a further 16%, while the remaining 10% of
expenditure is attributed to TLPs and spars,
giving a total FPS capex forecast for the pe-
riod of over $38 billion.
In terms of order value, there is currently
a high level of FPS orders, and this is ex-
pected to continue as a series of major devel-
opments require high-specication units for
delivery during the forecast period.
Within the FPSO segment, the exact mix
of newbuilds, conversions and upgrades/re-
deployments that will be required to meet
demand is impossible to determine precise-
ly, though this will obviously have a strong
effect on the capex levels within the seg-
ment. Of the prospective units, around half
are expected to be conversions, and another
third newbuilds, with the remaining units
likely to be redeployments or without a de-
ned development type as yet.
This analysis identies four main drivers
behind the continued demand growth within
the FPS sector:
Continuing expansion in the use of sub-
sea production technologies
The industrys move into deepwater
areas
Exploitation of marginal elds
Growing emphasis on fast-track and/
or phased developments.
On the supply side, the inuence of glo-
balization is already apparent, but is likely
to be somewhat offset by national insistence
on local content in the delivery of oating
production systems and other components
of offshore developments.
An active leasing market has emerged in
the FPSO segment in particular. Roughly
45% of the worlds FPSO eet and just over
half of the North Sea eet is owned by
leasing contractors. In recent years, contrac-
tors have picked up a number of signicant
project awards based on the deployment of
converted vessels, predominantly tankers
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PRODUCTI ON
and semisubmersible drilling rigs. The re-
deployment of modied/upgraded vessels,
especially in the leased FPSO segment, will
remain important in meeting the growth in
market demand.
The newbuild option gives vessel design-
ers a blank canvas in contrast to tanker
conversions, and new innovations in vessel
design are emerging. Three of the newbuild
units under construction have adopted Sevan
Marines SSP300 design based on a cylindri-
cal hull. These vessels will be installed on the
Chestnut and Pilot elds in the UK North Sea
and the Piranema eld offshore Brazil.
Regional markets
Africa and Latin America account for nearly
half of the 124 vessels forecast over the 2007-
2011 period (54). Asia is the next most impor-
tant region in numerical terms (25), followed
by North America (19), Western Europe (13),
Australasia (12), and the Middle East (1).
In terms of market value, the worlds three
major deepwater regions Africa, North
America, and Latin America account for
67% of forecast global capex. The relatively
benign environments and shallow waters in
which most of the FPS prospects in Asia are
located enable cheaper FPS solutions to be
adopted. Thus, although the region has 25
FPS units forecast for the period, its capex at
$6 billion is lower than that forecast for North
America, which has fewer installations, but
where newbuild solutions and/or higher
specication vessels tend to be required.
This market forecast is conservative. Ac-
tivity within the FPS sector over the period
to 2011 could well exceed the levels present-
ed here.
There are two main reasons for this. The
rst of these relates to the potential for new
oater projects to emerge as a result of on-
going exploration activities and the second
to the lack of a dened development strat-
egy for some known prospects.
Further information is available at www.dw-1.com.
The authors can be contacted via admin@dw-1.com
Authors
Heading DWLs oil & gas research, Steve Robertson
is a graduate in Economics and Computing and lead
author of DWLs current range of The World series
of market reports including The World Deepwater
Market Forecast, The World LNG & GTL Report,
and The World Floating Production Report. He is a
member of the Institute of Petroleum and the Society
for Underwater Technology.
Georgie MacFarlan leads DWLs publications unit and
manages the World Floating Production Database. She
is lead author of The World Marine Propulsion Report
and has been responsible for a wide range of activity
within DWL, including extensive work on a number of
marine sector global studies.

PRODUCTI ON
Africa
25%
Western
Europe
10%
North America
18%
Latin America
24%
Australasia
6%
Asia
17%
Regional shares of FPS capex 2007-2011
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__________________________________________________
Developing the right concept
for offshore developments
S
electing the right concept for producing an offshore eld
can have a major impact on the success of the project. In light
of that fact, the conceptual phase needs to be scrutinized
thoroughly. It ultimately becomes the stepping stone for the
front end engineering design (FEED), detailed design, and
execution phases that follow and allow a concept to become reality.
A projects conceptual phase is, in itself, a series of phases that
eventually lead to the best possible solution to t the known proj-
ect parameters. The process of developing a concept can be short
or involved, depending on the nature and complexity of the project
and the clients requirements. It can be undertaken regardless of
water depth or location, although as the specics of those two facets
intervene, viable options might be reduced. The conceptual phase
is not just about numbers. There are many issues that need to be
addressed yet cant yield concrete information that can be strictly
quantied. Rather, the concept process also deals with those soft
issues such as government and regulatory mandates, company stan-
dards, and requirements or biases from past experiences that can
play a major role in the decision-making.
This article addresses the multiple steps in the conceptual design
process and suggests a logical, sequential method to initiate and
complete this phase of the project. As a caveat, however, it is recog-
nized that there are other approaches that might be taken to develop
a viable concept. Further, there are complexities that might pres-
ent unique considerations that can not all be addressed here. The
recommendations contained in this article are based on successful
projects and might provide some ideas to improve your concept de-
velopment process.
The conceptual phase involves capturing relevant information, se-
lecting the most appropriate concept team, communicating key driv-
ers, obtaining alignment of purpose, identifying concepts to study,
studying those options, and then selecting the best option(s) for the
project. We will address each one of these steps and provide a rudi-
mentary understanding of the factors that have the most impact.
Capture relevant information
Before an offshore project can be deemed viable, enough infor-
mation must be known about the eld, reservoir characteristics, ex-
isting infrastructure, and other data. At the concept phase, concrete
information is not always available. There will undoubtedly be un-
knowns that will have to be surmised or accounted for later. The col-
lection of relevant input is key to the success of the project. Where
sufcient information is not available, experienced personnel can
often make realistic assumptions that can guide the effort.
Reservoir data, derived from exploratory and appraisal wells will
give insights as to the size, pressures, temperatures, and other
pertinent information. Immediate or future water injection or gas
lift projections must be factored in
Drilling requirements, including timing, number of wells, antici-
pated depth of wells, type of trees dry or subsea, anticipated
workovers, location of rig (on a central structure or MODU), and
rig availability are all factors
Operational considerations, such as expected uptime, exibility
needed and requirements for discharge or disposal need to be ad-
dressed. Anticipated ow assurance issues need to be considered
Flowline information, including distances from subsea wellhead
via umbilicals and risers, is relevant. Similarly, export planning
must be considered to determine existing infrastructure, proxim-
ity to hubs and export line requirements for complying with trans-
port regulations and delivery standards
Location of the eld is important in factoring in the impact of gov-
ernmental and regulatory agencies. In US waters, responsibilities
fall under the jurisdiction of the US Coast Guard, the MMS, and
other governmental bodies. For non-US projects, the knowledge
of national regulatory policies and possible taxation issues must
be anticipated
Consideration of client preferences, mandates, and specications
are critical to the concept selection. Specic safety issues, toler-
ances for risk, and corporate guidelines have to be understood
and accounted for.
Concept team selection
There are multiple approaches to conducting conceptual engi-
neering. It can be done in-house by the clients project specialists.
It can be performed by contractors, or by an integrated team of pro-
fessionals. The key is to use the most experienced personnel avail-
able.
Because of project complexity, no one company has all the ex-
perts needed for selection, but needs to draw on an independent
team. In the current state of the industry, it may be difcult to locate
and engage the most knowledgeable team, but proper member se-
lection can circumvent future cost overruns. Conceptual engineer-
ing performed by the lowest bidder is not always the best bargain,
as proper conducting of this phase can make the biggest impact on
the entire projects cost and schedule.
Identifying contractors that have had experience with similar fa-
cilities or water depths can be important. They can provide the nec-
essary historical databases and benchmarking from prior projects to
validate results. It is also important to consider partners who have
Daryl B. Rapp, P.E., P.M.P
Mustang Engineering

PRODUCTI ON
Typical concept development project design.
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Take Advantage of Intergraphs
Marine Enterprise.
Gain project, schedule and cost benets
through your complete life cycle
Choose a solution that supports concept
design through operations. Intergraph offers
best-in-class, standalone applications for
materials management and project controls;
3D modeling and visualization; and infor-
mation management. Take advantage of
integrating these applications to gain even
greater benets.
Optimize and streamline your workows
Reach project completions more quickly and
more accurately at less cost. The seamless
integration between Intergraphs software
solutions helps you achieve data integrity
while improving work processes. Take advan-
tage of the newest technology in 30 years,
built in response to the needs of end users
like you.
Share your data with project stakeholders
Benefit from clear, concise and complete
data that you can communicate to managers,
vendors, suppliers and operators as part of an
integrated value system. Enhance data sharing
of the physical interface and promote change
management between contractors, especially
between hull and topsides contractors. Take
advantage of our integrated data model and
materials optimization to build bigger, better
offshore facilities more quickly and easily than
ever before.
For more information, please visit our booth,
on the Web at www.intergraph.com/promo/otc
or call 1-800-260-0246 or 1-256-730-3040.
The New Wave in Offshore Design,
Construction & Operation
Intergraph, the Intergraph logo, and IntelliShip are registered
trademarks of Intergraph Corporation. 2007 Intergraph
Corporation, Huntsville, AL 35824.
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PRODUCTI ON
not only done conceptual planning, but who are knowledgeable in
FEED, detail design, and project execution strategies to be able to
provide viable and current cost estimates.
During the selection of the concept team, an awareness of poten-
tial preferences or biases should be considered and evaluated. Cli-
ents often install the same type of xed or oating structure as past
projects, even if reservoir conditions might suggest the use of other
alternatives. Similarly, certain contractors can have a preference
for a specic hull design that might, or might not, be the optimum.
These biases can often provide the right solution for the eld devel-
opment, but it needs to be challenged. As a check, team members
that are solutions independent might be considered. They can
provide engineering with a sole focus on providing a t-for-purpose
concept.

Key driver communication
The clients statement of requirements or preliminary design
basis is important to incorporate in the concept phase, in order to
evaluate, validate, and communicate key information to all partici-
pants. Additionally, the clients project drivers, including its econom-
ic model of cash ow projections, safety, quality, schedule, and cost
need to be prioritized and provided to all stakeholders.
Early and complete alignment is critical. Participants need to be
aligned on the project objectives and drivers as early in the pro-
cess as possible. An initial meeting can assure that everyone is
operating with proper knowledge and compatibility. On the other
hand, misalignment of purpose and direction can cause confusion,
frustration, and inefciency, often leading to rework and cost es-
calation.
An example of alignment importance is a clients requirement
for the lowest possible topsides cost. Given this direction, the engi-
neering contractor would generally eliminate all unnecessary equip-
ment, reduce in-place spares, and minimize deck footprint to save
weight. This might not be exactly what the client intends, especially
if it means giving up exibility and future capacity expansions. Align-
ment at the concept phase can avoid many of these misconceptions
and information gaps.
Concepts for consideration
Based on a thorough understanding of the relevant information
and project drivers, the right concept might be readily determined
and quickly rise to the surface as the most logical. Even so, it is still
a prudent exercise to enumerate the possible options that are avail-
able for consideration. Both existing and new technologies should
be considered in this exercise. New technologies can be merely ex-
isting techniques extended to t a new purpose, though they should
be examined carefully as this is not the time for incurring research
and development costs. The prioritizing of concepts should be based
on high-level costs, schedule, execution plan, and risks, both techni-
cal and commercial. As previously mentioned, before nalizing on
the concepts to be further studied, a review of potential biases in the
selection process should be undertaken.
Determine optimum
Once the most viable concepts have been identied, they need fur-
ther evaluation. There are multiple criteria upon which this process
should be based. It must include capital and operating costs. It should
also include schedule considerations fast-track, phased-develop-
ment, or a combination. Additional evaluations should focus on risks
and the advantages or disadvantages of the selected concepts. There
will be tradeoffs to virtually every alternative selected. These have to
be weighed and prioritized. Benchmarking from prior projects helps
in this phase of the concept selection process as does an independent
review by peer groups.
At this point, there should usually be at most two concepts that
have emerged from previous deliberation. These remaining alterna-
tives should be further scrutinized by assuring that there is compe-
tition for their fabrication, transport, and installation. Without that
capability, a project can get locked in to one method and not allow
for exibility or change in market conditions.

Wrapping up
Performing a good conceptual engineering study should yield
an optimum result that is the best offshore project solution, tting
the clients requirements. In order to complete this phase satisfacto-
rily, the best available information needs to be accumulated and re-
viewed. The most experienced team should be assembled, equipped
with benchmarking tools and a solid technical database from prior
projects. It is critical that all stakeholders be aligned, with buy-in at
the earliest possible stage, in order to provide focus and momen-
tum going forward. All potential concepts need to be evaluated with
the completed project in mind, keeping competitive options open
for fabrication, transport, and installation. And, an independent ap-
proach needs to be taken, allowing biases to be considered as part
of the process, but not overriding the process. If these steps are
followed, the right concept should emerge, and chances for a suc-
cessful t-for-purpose project are greatly elevated.
Author
Daryl B. Rapp, P.E., P.M.P., has more than 30 years experience in the design and
project management of oil and gas facilities. His projects have included multiple
types of xed and oating of fshore facilities, as well as onshore plants. He has been
the lead on numerous conceptual studies for of fshore development projects and was
recently project manager for four truss spar topside facilities in the Gulf of Mexico.
Rapp is a graduate of Purdue University, a registered professional engineer in the
state of Texas and a project management professional.
Concept design workfow.
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______________
Providing answers for un-testable wells
Combination tool can give results
W
ell testing has been a critical
step in well evaluation since the
1920s. It has always been the
rst real measurement of res-
ervoir volumetrics and potential
performance.
Described as a temporary completion,
well testing gives the industry a chance to
ow a well under controlled conditions, al-
lowing it to clean up and stabilize. Total ow
rate, as well as the holdup of various phases
present, can be measured and representative
samples can be taken under PVT conditions
for laboratory analysis. Pressure transients
can be obtained whose character gives clues
about reservoir boundary conditions re-
mote from the well being tested. Reservoir
volumes can be calculated along with forma-
tion average permeability and near-wellbore
formation damage, or skin.
Test data
Most subsequent completion decisions
are based on information obtained during the
well testing phase. The critical inow perfor-
mance relationship (IPR) curve is derived
from test data, and is the foundation for deci-
sions involving perforating, formation treat-
ment and the sizing of completion hardware
and tubulars. Therefore, operators expect
well test results to be accurate and of highest
quality, because production decisions made
from these results can have implications for
the life of the well or reservoir.
Although well test data are of high value, op-
erators are constantly evaluating cost versus
value. To this end, operators around the world
have been working with their service partners
to perfect well testing operations and make
them as efcient as possible. Traditionally, rig
spread costs consume the highest percentage
of the well construction budget. Accordingly,
the most obvious solution to reducing well test
costs is to combine as many operations as pos-
sible, or practical, in a single trip.
Testing improvements
The earliest step to improve testing qual-
ity and efciency was the implementation
of downhole test tools. With downhole test
valves, gauges and sample chambers, well-
bore storage effects could be eliminated or
greatly reduced, and measurement quality was
enhanced. Without wellbore storage, quality
pressure data could be obtained in a fraction
of the time required using surface testing. At
the same time, accurate quartz gauges made
signicant improvement in test data accuracy.
The next step taken was to combine per-
forating and testing. Using a TCP work sting
brought several advantages. Primary among
these was the ability to shoot the well under-
balanced to take advantage of instant clean-
up of the perforation tunnels of any debris,
as well as to prevent an inux of completion
uid into the formation creating near-well-
bore formation damage.
When combined with DST, the well could
be perforated, cleaned up and immediately
tested in one trip. Clean up in this case in-
cludes owing the well long enough to clear
it of any residual drilling uid or ltrate so a
representative sample of produced formation
uid could be obtained. The TCP/DST com-
bination made the operation safer, because
the well was under control at all times and
the perforation cleanup test sequence was
performed seamlessly.
Additional challenges
Many wells do not ow naturally to the sur-
face, and despite underbalanced perforating
techniques, it may not be possible to get suf-
cient natural ow to achieve the dynamic ow
regime required for a valid well test. Some res-
ervoirs contain lots of crude oil, but lack the
pressure drive to ow naturally. Others contain
heavy oil (dened as crude oil between 22.3
API and 10.0 API), where viscosity impedes
ow to the wellbore. Approximately 15% of the
worlds 13 trillion bbl of oil reserves consists
of heavy oil, mostly in Venezuela and Russia,
but also signicantly in half a dozen other
countries. In this context, heavy oil is not the
bitumen found mainly in western Canada and
Russia of 10 API gravity or less.
Antonio Prioletta
Jaime Cadena
Rafael Cachutt
Repsol YPF
Mateo Sercen
Carlos Ortega
Jos G. Flores
Manuel Loli
Juan Watanabe
Carlo Sanabria
Schlumberger

PRODUCTI ON
Triple combo test string schematic with TCP,
DST and ESP systems run simultaneously
produced greatly improved operating effciency
without jeopardizing quality or safety.
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www.slb.com/xlift
*Mark of Schlumberger 2007 Schlumberger. 07-AL-051
XLift
Were going to eXtremes
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Is your gas lift systemout
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The XLift* high-pressure gas lift system is specifically designed for deepwater
wells. Its 5,000-psi rated working pressure means that in deepwater wells the
first injection valve can be placed below the mudline instead of in the riser.
The increased gas injection depth enables you to maximize drawdown and
recovery with fewer valves and mandrels in the completion.
By stabilizing injection pressure, the XLift system can reduce maintenance
costs and increase your profit.
Schlumberger is going to extremes to improve your production in deep water.
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PRODUCTI ON
To test all wells efciently, not just those that
ow naturally to surface, Schlumberger com-
bined a tubing-conveyed perforating (TCP) and
a drillstem testing (DST) work string with an
electrical submersible pump (ESP) to supply
the energy to produce from pressure-depleted
or heavy oil wells.
ESP addition
By combining a TCP and DST work string
with an electrical submersible pump (ESP),
a method to supply the energy to produce
from pressure-depleted or heavy oil wells was
achieved. The tool string is long, but assembly
is straightforward. At the bottom and below
the packer are the TCP guns, along with their
redundant ring heads. Next comes a succes-
sion of crossover adaptors, debris subs and
tubing spacers whose purpose is to space out
the interval between the packer and the guns.
When the packer is set on-depth, the guns
will be positioned opposite the pay zone. Just
above the packer are the safety joint and hy-
draulic jars, followed by the DST tools. The
DST string varies according to the test objec-
tives, but usually consists of a downhole sam-
pler carrier and a downhole gauge adaptor,
a pressure operated reference tool (PORT),
and a pressure-controlled test valve (PCTV).
Next is a single shot reversing valve, ESP, and
a radioactive marker sub for depth control.
The ESP is contained in a pressure pod
that isolates the pump from the pressure
pulses used to actuate the TCP guns and
operate the DST tools. The ESP is equipped
with a variable speed drive (VSD) so differ-
ent drawdowns can be imposed to create the
required pressure transients. In addition, it
has its own gauge that contains pressure/
temperature sensors as well as pump and
motor performance monitoring sensors.
In the case of heavy oil, an optional capil-
lary tube can be run alongside the pump pow-
er cable so de-viscosiers can be pumped in
to improve crude mobility and the viscosity
effects on the pump. Near the top end of the
string, a BOP can is positioned opposite the
blowout preventer rams. This provides a cy-
lindrical surface for the rams to seal around
to safely contain the well without crushing
the power cable or capillary tube.
By assembling the three systems sequential-
ly as the string is run into the well, maximum
efciency is achieved. At the same time, accu-
racy and measurement quality is assured.
Gauges are positioned at the appropriate
place to accurately measure the data and avoid
wellbore storage effects such that precise
pressure transient analysis can be conducted
and produce critical information about the res-
ervoir characteristics. A new ESP design will
further improve efciency, using fully inte-
grated or pre-assembled plug-and-play compo-
nents that can be installed more quickly than
conventional ESPs.
Testing exploratory wells
Although several applications of tool testing
have been performed offshore and onshore
around the world, Repsol YPF has used the
technique successfully in a particularly chal-
lenging area. With an aggressive exploratory
program consisting of 37 blocks under con-
tract in the environmentally-sensitive Amazon
rainforests of northeastern Peru, the company
needed to test three exploratory wells.
Repsol YPF needed a solution for testing
problems due to heavy oil, low formation
pressure and an extremely remote location.
Crude gravity in the discovery wells is less
than 15 oAPI, and gas-oil ratio (GOR) is less
than 40scf/stb. Although the rock properties
are excellent, there is insufcient drive to
produce the wells naturally to surface. The
company feared the combination of low pres-
sure and viscous crude would prevent acqui-
sition of valid well tests because there would
be insufcient energy to create a stable dy-
namic ow regime. Because the wells were
exploratory, there was little local reservoir
knowledge on which to base correlations.
The remoteness of the area created lo-
gistical problems as well as environmental
concerns that added to the operational risk.
Planning and efcient use of resources along
with seamless integration between operating
0
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80
90
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100
Buenavista
1X, 89.5
Delfin
2X, 88
Raya
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Buenavista 1X
Delfin 2X
Raya 3X
A comparison of test
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The cost-efficient
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Centrilift offers a complete suite
of pressure boosting technology for subsea projects.
Centrilifts full line of seabed multi-phase pressure boosting systems, in-well
electrical submersible pumping (ESP) systems, and riser deployed ESP systems
offer a range of options to increase production from subsea fields. These high
volume, efficient, cost effective production solutions provide operators
significant economic benefits, including:
Maximized recoverable reserves
Increased asset net present value
Increased step out range providing reduced infrastructure CAPEX
Centrilift: When maximum lift is the key to unlocking
additional reserves.
B e s t - i n - C l a s s F
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ESP Production Systems - Subsea
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PRODUCTI ON
and service company personnel is fundamen-
tal to success.
The TCP/DST combination was run in the
rst two wells followed by an ESP run that
included pressure/temperature sensors to
monitor the productivity index of the wells.
The objective of the test was to determine
the IPR and estimate the reservoir pressure.
Three successive ow tests were attempted,
and although clean build-up curves were
obtained, it was determined that very little
oil was owingthe ow was mostly mud
ltrate from the near-wellbore region.
The purpose of the ESP run was to pro-
vide enough energy to lift the produced
uids to the surface and to allow the well to
clean up. Various drawdowns of varying du-
rations were imposed by adjusting the pump
speed, and build-ups were obtained by shut-
ting in the well at the surface.
Triple combo third well
With reasonable success on the rst two
wells, the operator agreed to try the triple
combo test string on the third well. Two zones
were tested. The rst zone used the TCP/DST
combo technique similar to the second well.
The upper zone received the triple combo treat-
ment with ESP included in the test string.
Testing sequence varied from the previ-
ous wells. After ring the TCP guns under-
balanced, the well was allowed to ow natu-
rally for an hour. Then it was shut-in at the
PCTV for a 2.5 hr build-up period. After the
PCTV was opened, the ESP was started and
run at 40 Hz through a 32/64-in. adjustable
choke for 6.0 hrs. The pump frequency was
raised to 47 Hz and run for another 6.0 hrs.
Then the pump was stopped for 24 hrs to al-
low pressure build-up to occur.
The next day the PCTV was opened, and
the ESP was re-started at 40Hz and run for
1.2 hrs. Pump frequency was raised to 68Hz
and the choke was opened to 36/64 for 3.0
hrs. Then the pump speed was raised to 70
Hz and run for 3.5 hrs. After this run, the
PCTV was closed and the ESP was stopped
for a build up period of 16.25 hrs. The ESP
was restarted at 40 Hz with the choke ad-
justed back to 32/64, and then the speed
was raised gradually to 70Hz and held for
2.25 hrs. A nal step was to open the reverse
circulation valve to circulate from the an-
nulus up through the tubing. The ESP test
sequence lasted a total of 65.7 hrs.
The test data were used to generate both
a productivity index curve over time and
an IPR curve pressure transient analysis.
Compared to the other two wells the third
well test was about 25% more efcient sav-
ing time and money. The data obtained was
used to calculate average permeability, skin,
reservoir pressure and the ow regime for
the reservoir with condence.
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Full load test addresses concerns over
Kashagan H
2
S gas compression
E
nhanced oil recovery (EOR) meth-
odologies face increasingly extreme
challenges when handling gas streams
characterized by high levels of con-
tamination, as is the case with the gi-
ant Kashagan oileld development offshore
Kazakhstan.
To mitigate the inherent risks as
much as possible, the new engineering
designs and technologies to be applied
must be proven prior to eld start-up.
One example of how this is done is the
full load test that GE Oil & Gas con-
ducted successfully for this project on
the highest pressure re-injection train
ever built. The test was a critical part
of operator Agip KCOs risk abatement
process for Kashagan.
At the core of the projects EOR pro-
cess, GE is supplying two ultra-high-pres-
sure, barge-mounted, sour gas re-injection
trains. The barge contains a full compres-
sion island that includes a 32-MW com-
pression train capable of 820 bar delivery
pressure, designed to withstand the 33%
H
2
S found in the gas stream.
Each re-injection barge is 95 m long,
16 m wide and 25 m high. These dimen-
sions have been limited by the need to
navigate through Russian internal wa-
terways. Furthermore, the congura-
tion is also constrained by disassembly
requirements dictated by lifting opera-
tions, weight distribution, safety, oper-
ability and maintainability. For all of
these reasons, the layout of the topside
equipment has been one of the tough-
est challenges within this already difcult
project.
The barge weight is also a crucial factor
in the risk abatement process. In the actual
operating conditions, this can exceed 4,500
tons. For Kashagan, the need to limit the
height to 16 m during navigation and the
weight to 4,000 tons during lifting requires
disassembly of part of the topside. In addi-
tion, the weight needs to be carefully distrib-
uted in order to make the barge seaworthy
and to limit distortions during lifting and in
the nal operating conguration xed to the
supporting piles.
Safety considerations have also necessitat-
ed the allotment of adequate space for escape
routes. At the same time, all heavy equipment
had to be arranged within a limited space,
making it necessary to work on multiple lev-
els of the topsides. Furthermore, despite the
heavy use of remote control operation, physi-
cal accessibility has been provided for all in-
strumentation as well as for manual operation
of valves, vents, and drains.
The construction and maintenance of a
3D model was a key element in helping the
team achieve an acceptable compromise
for all these targets. 3D reviews were held
at different stages of the project to ensure
that the overall objectives of safety, operabil-
ity and maintainability were under control.
Material management also aided by the 3D
model was particularly important because
of the long delivery time and the cost associ-
ated with the heavy wall, low alloy steel pip-
ing components.
Testing requirements
GEs Oil & Gas business has extensive
experience in high-pressure re-injection. Its
Nuovo Pignone testing facility, located in
Massa, Italy, was the rst to conduct
full-power, full-pressure, and full-speed
testing of discharge pressures of up to
11,800 psi (820 bar). The testing facili-
ties were set up to replicate all the key
features of the plant site conditions.
The train used during testing consist-
ed of an MS5002/D DLN gas turbine
and gear box driving the BCL404/B
+ BCL304/C + BCL304/E centrifugal
compressors.
The test loop for Kashagan was very
carefully managed during its design,
erection and certication. Using a con-
tinuous monitoring system, the gas loop
was kept under pressure for the entire
test duration. Furthermore, all controls
were implemented for remote operation
in order to replicate the on-site condi-
tions where a very high degree of un-
manned operation is required.
Since the toxic nature of the process
gas is such an issue in this project, the
sealing of all equipment was monitored
and veried through dedicated proce-
dures. In fact, a patented zero leak-
age monitoring system was developed
to ensure detection of even ppm leak-
ages at the compressor casing and in-
ner casing interfaces. Finally, the equa-
tions of state used during the design stage
for this unique process gas were validated
by the test, thereby assuring compressor
performance control and robustness of the
dry gas seal design.
With the success of this full load test, GE
Oil & Gas has demonstrated its ability to pre-
dict the compression train performance and
to design full compression islands capable of
handling these latest industry requirements.
This test program allows our customers to
condently proceed with eld development
with the certainty that their main plant equip-
ment will deliver the required performance,
and that the plant design will perform as
required under these most challenging envi-
ronmental and process conditions.
Flavio Tosi
Giovanni Saccardi
Gianni Iannuzzi
Gabriele Turini
GE Oil & Gas

PRODUCTI ON
(Above) Testing under way in Massa, Italy. Photo provided by
GE Oil & Gas. (Below) 3D illustration of the Kashagan barge.
Photo provided by GE Oil & Gas.
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GE
Oil & Gas
The numbers tell the story
Sometimes a small improvement can make a big difference. GE has recorded an
average 3% operating efficiency increase in our centrifugal compressors for most
recent LNG and pipeline applications. This might not seem like much at first glance,
but it adds up to nearly 11 days of additional production every year a substantial
improvement in productivity and profits for our customers.
For more information, visit www.ge.com/oilandgas
3
% higher efficiency
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Worlds first subsea
processing system
headed for Norway
Slated for Tordis
in North Sea
T
he nal weld has been made on the
separation unit for the worlds rst
commercial subsea processing unit
bound for the North Seas Statoil-op-
erated Tordis eld. In mid-March the
improved oil recovery (IOR) project reached
a milestone when the construction of three
FMC Technologies subsea modules was
completed. Installation is scheduled for the
third quarter of this year.
Tordis is in the Norwegian section of the
North Sea in 200 m (656 ft) of water. The
subsea separation system will be installed
between the existing Tordis subsea eld
and the Gullfaks C platform. By installing
a full-scale subsea separation facility, Statoil
expects to improve the Tordis elds recov-
ery factor from 49% to 55%.
Along with other upgrades to the eld,
the separation system will allow Statoil to
extract an additional 35 MMbbl from Tor-
dis, with new technology accounting for
approximately 19 MMbbl of the improved
oil recovery. This is achieved by removing
water and sand from the well stream subsea
and re-injecting the water via a separate well
subsea, thereby reducing the back pressure
toward the Tordis eld and allowing more
hydrocarbons to be processed at Gullfaks
C. These reserves would remain unrecover-
able without the technology.
Tordis is a perfect application of subsea
separation, says Erlend Fjsna, Subsea
Processing Systems manager, FMC Tech-
nologies. The eld is maturing, so its wells
are producing more and more water. That is
restricting production because the owlines
and the surface facilities do not have the ca-
pacity to transport and handle all of the extra
water.
Its a common problem in mature elds.
Operators now have three choices: they can
continue to delay production and reduce
ultimate recovery, they can upgrade their
surface facilities and bring in additional pro-
cessing equipment, or they can do some of
the processing subsea. Subsea processing
made the most economic sense to Statoil.
Without subsea processing, Tordis would
have to be shut down and much of the oil left
in place, says Fjsna. This new separation
technology will increase recovery from Tor-
dis by 35 MMbbl over the life of the eld,
and we believe we will see similar results in
many elds over the coming years. Custom-
ers are no longer asking if it will happen, but
when.
FMC Technologies proposed a less ex-
pensive, smaller diameter vessel. By taking
the gas out in the inlet section of the separa-
tor, they reduced the size of the vessel by
almost 50%. FMC also performed testing to
demonstrate system reliability.
Tordis test
The rst major phase of testing lasted
three months and took place prior to assem-
bly of the station.
We connected the whole system together
and ran through all the auto-sequences, says
Ann Christin Gjerdseth, project manager,
FMC Technologies, Kongsberg. The goal
was to check that the controls, instrumenta-
tion, and pumps all worked collectively as an
integrated system. To make the testing more
realistic, a eld dynamic simulator was used
to provide feedback on the effects of control
operations. We used this to demonstrate, for
example, that if you speed up the injection
pump, the result is more injectivity.
Further testing will take place until June.
This primarily involves mechanical interface
testing, checking that all parts t mechani-
cally, and that intervention can be carried
out as planned. The system has been de-
signed in a modular fashion to allow indi-
vidual modules and components to be sepa-
rately retrieved. The desander module will
be set up in a full test loop and put through
its paces.
With an estimated 500 kg (1,543 lb) of
sand a day accumulating at the bottom of
the separator, sand disposal is an important
function, Gjerdseth says. By ushing the
sand into the desander module, and then
from there into the disposal well, mixed with
separated water, we save the injection pump
considerable wear and tear caused by the
abrasive effect of sand passing through it.
Personnel from Statoils operations team
on Gullfaks C will familiarize themselves with
the desanding function and other features of

SUBSEA
Lifting the template for the subsea separator.
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Copyright 2006. All rights reserved.
Using dependable technology
to deliver innovative subsea
solutions, Aker Kvaerner
provides subsea processing
and boosting systems and
services for a diverse
range of applications.
New or existing field developments can
benefit from the implementation of Aker
Kvaerner subsea processing and boosting
systemssystems based on proven
topside technology and innovative
thinking for subsea implementation.
Whether your aim is to improve oil recovery,
access challenging new reservoirs,
minimize topside infrastructure or enable
longer step-outs, our people and
technology can provide the answers.
Aker Kvaerner also provides aftermarket
support from system delivery through
life-of-field using a worldwide network
of service centers and personnel. Aker
Kvaerner has a vision of deploying technology
that provides more effective and efficient
field development solutions. We have
exhaustively researched, developed, tested,
qualified and proven our systems from the
beginningand continue to do so.
Aker Kvaerner subsea processing and
boostingdependable technology and
innovative solutions. Challenge us.
Take a deeper look visit the Subsea
portion of the Aker Kvaerner website.
Innovative from the start,
dependable to the last
SeaBooster
Raw sea water injection

MultiBooster
Multi-phase boosting
GasBooster
Wet gas compression

FlexSep
Produced-water separation
and reinjection
DeepBooster
Gas-Liquid separation
and liquid boosting
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the system. Desanding is semi-automated, so operators need only press a
button to initiate each set of operations.
Assembly at Tnsberg
Assembly took place in March at Tnsberg in southern Norway where
the 500-ton (453-metric ton) foundation base structure and some of the
modules were built. Because of the restricted craneage available, the base
structure was rolled onto a barge and the two heaviest modules the 230-
metric-ton (253-ton) manifold and 170-metric-ton (187-ton) separator vessel
were lifted onto it by a oating crane vessel. The partly assembled station
then was rolled back into the construction hall for installation of the de-
sander, multiphase and water ow modules, and the two 2.3 MW pumps.
Combining cultures
One of the biggest challenges faced during the project was to bring two
very different cultures together, says Gjerdseth. The subsea culture as
we know it today aims to achieve high reliability by keeping things simple.
But a next generation subsea system, like the separation station for Tor-
dis, is a complex processing system which must be capable of exible,
real-time control and ne-tuning, just like a topside system.
The teamwork has been excellent, both internally between FMC Tech-
nologies, its subsidiary CDS Engineering, and its partners Framo and
Grenland Group, and also with Statoil, says Gjerdseth. Weve been able
to draw heavily on Statoils expertise, and its personnel have been inte-
grated into our teams as necessary. After all, this system is not something
you build from a spec, but by bringing clever heads together.
Once the mechanical interface testing is completed, a nal leak test will
be performed in June, followed by a nal test of all instrumentation. The
subsea separation system then will be ready for sea-fastening. It will be in-
stalled in the eld by Saipems crane-barge S7000. With dimensions of 40
x 25 x 19 m (131 x 82 x 62 ft), and weighing 1,250 tons (1,134 metric tons),
it is believed the unit will become the heaviest subsea lift ever performed
by the barge.

SUBSEA
(Top of page) The worlds frst subsea separator is scheduled for
installation on the Statoil-operated Tordis feld in the North Sea in
the third quarter of this year. (Above) Lifting of the subsea separator
with template.
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www.offshore-mag.com May 2007 Of fshore 97
CONSTRUCTI ON & I NSTALLATI ON
Helix to deploy first ship-shaped
DP FPU in Gulf of Mexico
To include disconnectable transfer system
O
perators in the Gulf of Mexico continue to evolve every possible
mechanism capable of extracting the regions rich resources to
adapt to challenging eld development and operational condi-
tions. Helix Energy Solutions is about to launch the rst ship-
shaped, disconnectable, dynamically positioned (DP), oating
production unit in the GoM. The vessel will be used to exploit marginal
deepwater oil and gas prospects.
The company also is managing a separate set of challenges at the
installation site, where it continues to clear wreckage of the Typhoon
TLP. Helixs oating production unit (FPU), Helix Producer I (HPI),
will be installed on the old Typhoon eld, renamed Phoenix, in
Green Canyon block 237 in 640 m (2,100 ft) of water.
In this Offshore exclusive report, Helix Executive Vice President
and COO Bart Heijermans discusses the decision behind the con-
cept selection and the investments upside potential.
Typhoon re-development
Helixs subsidiary ERT acquired the Typhoon mini-basin in Au-
gust 2006. The acquisition included a 100% working interest in the
Typhoon oil eld (Green Canyon blocks 236 and 237), the Boris oil
eld (Green Canyon block 282), and the Little Burn oil eld (Green
Canyon block 238) from Chevron, BHP Billiton, and Noble Energy.
What was intriguing about Typhoon was that is was a eld with
proven reserves that previously produced prior to Hurricane Rita
damaging the elds TLP, Heijermans explains. The eld produced
about 16,000 boe/d from two Typhoon wells and two Boris wells
before they were shutin.
The Typhoon TLP was destroyed during Hurricane Rita in Septem-
ber 2005. It was detached from its moorings and was ipped upside
down. When this happened, its exible risers and steel catenary risers
were severed and dropped to the seaoor. But, miraculously, all of the
active subsea wells remained intact and unharmed, Helix says.
The company still has some clean-up to do.
Some of the work left to be done on the old Typhoon eld is ush
and remove the owlines and risers still on site and remove some
debris on the seaoor from the TLP, Heijermans says. A portion
of the oating production unit was reefed 100 mi (161 km) north of
the eld.
In 2005, BHP Billiton had drilled a well on the Little Burn eld
just north of the Boris location. The well was ready for completion
with expected production similar to Boris. Chevron also had drilled
and completed an additional well on the Typhoon eld, which ow
tested at 7,800 b/d of oil.
So, with Little Burn and this Chevron well we saw the basins
potential, Heijermans says. Helix plans to bring online six previous-
ly drilled wells on Typhoon, Boris, and Little Burn at about 30,000
boe/d in 3Q 2008.
The company also acquired the following prospects from BHP
Billiton and Chevron: Balvenie (Green Canyon block 253), Tornado
(Green Canyon blocks 280 and 281), and Kissy Suzuki (Green Can-
yon blocks 325 and 326). Two of the prospects likely will be drilled
with the Helix-owned and operated Q4000.
When we bring the rst wells online, well have spare capacity
with our oater designed to handle 45,000 b/d of oil, so we can bring
on the acquired prospects and others gradually to keep production
stable for several years, Heijermans says.
This project ts in well with the companys strategic business
model, according to Helix, in that it serves as the operator of the
David Paganie
Managing Editor
Rendering of the disconnectable dynamically positioned foating produc-
tion unit, Helix Producer I. The vessel will be equipped with capacity to
handle 45,000 b/d of oil, 70 MMcf/d of gas, and 50,000 b/d of water.
Helix acquired the Typhoon mini-basin in August 2006. It comprises nine
blocks.
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eld and it can use its in-house eet of ves-
sels to perform the construction and instal-
lation work.
One of the good things about this proj-
ect is that we control everything ourselves,
Heijermans explains. We can install the
owlines, exible risers, and turret, also
called the Disconnectable Transfer System
(DTS), with our own deepwater vessels;
perform all the subsea construction work;
re-connect the new facility to the existing
export pipelines; re-complete and drill new
wells; basically we carry out the entire re-
development with our own equipment.
Depending on the success of the explo-
ration wells around Typhoon, the HPI could
remain on location for at least ve years,
he says. After the wells in the basin have
ceased producing, well look to relocate the
vessel to another eld that we own in the
GoM, or to an international location.
Concept selection,
investment upside
Helix looked at a number of oating pro-
duction solutions to develop Phoenix. At the
end of the day, the decision came down to
eld development economics and the invest-
ment upside potential, Heijermans explains.
Two years ago, the company was look-
ing at a small semi that it could redeploy, he
says. But, at the end of the day, the cost of
the semi made it difcult to justify for a mar-
ginal deepwater eld development like Phoe-
nix. The cost of redeploying the semi is less
that relocating a TLP or spar, but still its pret-
ty signicant. The nal concept we looked at
was converting an aframax-size tanker into
an FPSO, but the cost was also too high.
The cost to insure was a problem as well. Af-
ter hurricanes Katrina and Rita hit the GoM, the
cost to insure most deepwater platforms went
through the roof; some companies couldnt
even get insurance, Heijermans says.
If you have to be self-insured and you
take the risk, its better to get out of the way
when a hurricane goes through the GoM,
he says. So, thats what we like about this
disconnectable DP FPU. When a hurricane
is approaching, we can disconnect, ush
the owlines, leave, and then return when
its safe. You dont need helicopters to take
people to shore because the crew stays on-
board. And, the downtime can be used for
maintenance work.
Helix plans to use this vessel as a oat-
ing production unit for at least 20 years. If,
for some reason, the vessel cannot be rede-
ployed, the company has the option to re-
move all production modules and are boom
from the deck, store them, and use the ves-
sel as a normal construction asset to support
reeled pipelay, deepwater trenching, or ROV
work.
From a downside risk mitigation point
of view, if we dont have a redeployment op-
portunity, we dont have an asset sitting cold-
stacked, Heijermans says. We like these DP
ship-shaped oating production units because
theyre easy to redeploy, the cost is relatively
low, it can disconnect for a hurricane, and it can
be used as a construction vessel, if it doesnt
have a redeployment production contract.
Helix also got some positive feedback
from the MMS on the use of this ship-shaped
oating production concept, especially with
the disconnectable feature to avoid hurri-
canes.
The HPI concept without storage, with ex-
port pipelines, is an easy transition into FPSOs,
a stepping-stone into the big deepwater FP-
SOs, Heijermans says.
FPU conversion
Helix is converting an old train ferry into
a modern, DP-oating production unit for
development of Phoenix. The ferry, M/F
Karl, was being converted into the construc-
tion vessel, Kommandor 5000, when it was
acquired.
This vessel was offered to us several times
as a construction vessel, Heijermans says. Be-
fore the ferry entered conversion, it was cold-
stacked in Nakskov, Denmark for six years.
Conversion of the ferry started in July
2006 at the Viktor Lenac Shipyard in Reije-
ka, Croatia under the direction of a company
named NTD. The conversion scope includes
adding full-length sponsons on each side
of the vessel for additional deck space and
payload capacity, thrusters and controls for
the DP-2 system, and upgrading the living
quarters. After conversion, the vessel will
measure 161 m (528 ft) long by 29 m (95 ft)
wide.
Helix and its partner, Danish company
Kommandor Rm A/S, formed a 50/50
joint venture company, Kommandor Llc.,
which will own the converted construction
vessel and lease it to Helix who will convert
it at a Gulf Coast fabrication yard into the
HPI FPU.
The vessel will be tted with 3,500 tons
(3,180 metric tons) of topside production
modules with capacity to handle 45,000 b/d
of oil, 70 MMcf/d of gas, and 50,000 b/d of
water. Engineering of the production equip-
ment is under way at Houston-based Oil
Field Development Engineering Llc.
Production will ow from subsea wells to
the FPU for processing via two new 6-in. (152-
mm) exible risers connected to a side-mount-
ed DTS, which consists of ve risers, umbili-
cals, swivel stack and buoy system. Processed
production will transfer through the DTS and
two new 6-in. (152 mm) exible risers con-
nected to the existing export pipelines owned
by Enterprise Products Partners LP.
The DTS comprises a Multi-bore Quick
(Left) The train ferry Karl is being converted into a ship-shaped foating production unit. After conversion, the vessel will measure 161 m (528 ft) long
by 29 m (95 ft) wide. (Right) Helix Producer I is under construction at the Viktor Lenac Shipyard in Rijeka, Croatia. Construction of the hull is expected
to be completed by the end of 2007.
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____________

Disconnect Connector (QCDC) for suspend-
ing the buoy and risers while connected, a
production swivel stack for transferring u-
ids from the risers to the onboard process-
ing plant, and a buoy to support the risers
after disconnection.
When the vessel disconnects, the DTS sub-
merges 150 ft (46 m) deep. For re-connection,
the riser/buoy is retrieved by a winch and
pulled into the QCDC. Using its DP system, the
FPU can freely weathervane around the DTS.
Based on an independent thruster capability
study, according to Helix, the FPU can main-
tain station during 95% or better of combined
weather events, including the loop current.
The DTS is being supplied by Flexible Engi-
neered Solution (FES) out of Newcastle, UK. The
company has designed and built similar DTSs
(Left) Sponsons are being installed on the upper and lower sections of the hull to increase its overall width. (Right) The aft deck is undergoing
structural stiffening to prepare it for the addition of production modules when it arrives at the Gulf Coast fabrication yard. View is from the rear of the
accommodations toward the stern of the vessel.
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including the ones used on the Crystal Ocean and Woolybutt FPSOs.
Heijermans says a controlled disconnect for hurricanes could take
around 12-24 hours, after ushing the owlines and lowering the buoy.
An emergency disconnect could happen in as little as 1 minute.
Conversion of the FPU hull is expected to be completed by the end
of this year. The vessel then will transit to the UK where it will have its
DTS system installed. The FPU will arrive at the Gulf Coast fabrication
yard in early 2008 for integration with its production modules.
Total cost to Helix for the ferry acquisition and conversion, in-
cluding the addition of the DTS and production modules is about
$140 million.
It would not have been cost-effective to build a new spar, TLP, or
semi for this eld, Heijermans explains. It would have cost around
$250-300 million, and the cost to relocate such a platform would be
much higher than the HPI.
First production from Phoenix is expected in the second half of 2008.
After were done with Phoenix, and if no modications to the ves-
sel are required, we could have the vessel disconnected, redeployed
and producing in 3 months time, with pre-laid pipelines, Heijermans
says.
Helix worked with the MMS and the US Coast Guard to get ap-
proval for the concept, and Lloyds Register is classing the vessel.
Future
Helix doesnt plan to stop here. The company envisions adding
to its redeployable production eet in the future.
I would expect that in around ve years time we will have three
or more of these redeployable-type facilities; one might be based
in Southeast Asia, one in the GoM; and the other in a different lo-
cation, Heijermans says. There are a lot of 10-30 MMbbl elds
around that need these types of facilities.
The company already has bought a tanker from the Australian
Navy that had worked in the rst Gulf War as a refueling tanker,
to be converted into their second redeployable oating production
unit, likely for use in the Southeast Asia region.
Rendering of Helix Producer Is side-mounted Disconnectable Transfer
System (DTS). It comprises a Multi-bore Quick Disconnect Connector
(QCDC) for suspending the buoy and risers while connected, a produc-
tion swivel stack for transferring fuids from the risers to the onboard
processing plant, and a buoy to support the risers after disconnection.
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_________________
Jumbo Shipping flexes
muscles with
all-in-one concept
2 J-class vessels
operational,
2 on order
T
he Netherlands-based Jumbo Shipping
has completed a full years work with
its J1800-class Jumbo Javelin and Fair-
partner DP-2, heavy-lift, transportation,
and installation vessels, the rst two of
four vessels planned for the class.
Jumbo is building a eet of J-class vessels
specically for three niche market applica-
tions:
Installation of subsea manifolds, spool
pieces, jumpers, riser columns, and buoy-
ancy cans in shallow and deepwater
Mooring installation for FPSOs and
ofoading buoys in deepwater
Jacket and topsides installation with
weights of less than 1,000 metric tons
(1,102 tons).
The vessels measure 143 m long x 26.5 m
wide x 16 m deep (469 x 87 x 52 ft), with 9,500-
metric ton (10,472-ton) carrying capacity and
1,800-metric ton (1,994-ton) lift capacity.
The vessels are designed to carry out the
companys all-in-one business model for its off-
shore customers lift, ship, and install. Jumbo
launched this concept in 2002 and performed
its rst offshore job, off Australia, in 2003.
In 2006, Jumbo carried out three lift/trans-
port/installation projects; one in the North
Sea, one offshore Malaysia, and one offshore
Gabon.
Britannia satellites
Jumbo carried out its rst job with a J-
class vessel in May 2006. The company was
contracted by Acergy to transport and install
the Callanish and Brodgar subsea manifolds,
which are part of the ConocoPhillips-operat-
ed Britannia Satellites Development project
in UK North Sea block 16/26 in 150 m (492
ft) of water.
Jumbo nominated its J-class vessel Jumbo
Javelin for the work. The vessel is equipped
with two 900-metric ton (992-ton) Huisman
cranes, two 37.5-metric ton (41-ton) travel-
ing trolleys for general cargo lifts, two 10-
metric ton (11-ton) auxiliary hooks for sling
handling, and a Kongsberg DP-2 system.
The two main cranes, set 48 m (157 ft)
apart, can handle joint lifts of up to 1,800
metric tons (1,984 tons). Each is tted with
a 35-m (115-ft) jib. The vessel has 3,100 sq
m (33,368 sq ft) of free deck space and can
travel up to 17 knots (20 mph).
Jumbo Javelin began its transit from Rotter-
dam where its main cranes were congured
to handle 230-metric ton (254-ton) lifts in 150
m (492 ft) of water. The vessel departed in
late April 2006 for Rosyth, Scotland, where
the subsea manifolds were being fabricated.
Once the vessel reached quayside, with the
main cranes working in tandem, the 208-
metric ton (229-ton) Brodgar manifold and
250-metric ton (276-ton) Callanish manifold
were lifted and set onboard.
Also lifted, while quayside, were eight piles
weighing 20 metric tons (22 tons) each.
Shortly thereafter, the vessel began a
one-day journey to the installation site. On
arrival, Jumbo Javelins DP system synced up
with pre-installed transponders on the sea-
bed for positioning. Then, the manifolds and
piles were lowered.
After installation was completed, the ves-
sel sailed to Newcastle to prepare for its next
commitment, offshore Malaysia.
Kikeh
Jumbos second offshore contract in 2006
was for Technip on the Murphy Oil/Petro-
David Paganie
Managing Editor

(Above) Fairpartner transporting Acergys new
J-lay tower in one piece for installation on Sea-
way Polaris offshore Gabon.
Jumbo Javelin lifting Acergys 1,800-metric ton
(1,994-ton) J-lay tower with its main cranes
working in tandem. The lift was carried out
quayside at the Huisman yard in Schiedam, The
Netherlands.
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______________________

nas Carigali-operated Kikeh eld offshore
Malaysia in about 1,330 m (4,364 ft) of water.
The contractors workscope called for load-
ing, transport, and installation of 14 mooring
piles for the elds 16,400-metric ton (18,078-
ton) spar equipped with a tender assisted
drilling rig. The largest pile was 55 m (180
ft) long and weighed 140 metric tons (154
tons).
Again, Jumbo opted to use Jumbo Javelin
for the job. The vessels cranes were re-ad-
justed for the required lowing depth of 100
m (328 ft).
After loading and sea-fastening all 14 piles
onboard, Jumbo Javelin sailed to the installa-
tion site. Before lifting, an IHC ILT (Internal
Lifting Tool) was mounted into the top of the
rst pile and lower rigging was installed to
help control the lifts. Each pile was upended
and lowered by both cranes working in tan-
dem.
The piles were lowered to 100 m (328 ft)
deep, where they were transferred from
Jumbo Javelins hook to Solstad Shipping
ASs anchor handling tug Norman Ivans
lift rigging for nal installation to 1,300 m
(4,265 ft) deep.
First oil from Kikeh is expected in the sec-
ond half of this year.
Jumbo Javelin transported and lowered 14 mooring piles 100 m (328 ft) deep for the Kikeh spar and
drilling platform offshore Malaysia.
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J-lay tower
Jumbos third all-in-one job called for the lift, transport, and installation of
a new J-lay tower for Acergy. Jumbos J-class Fairpartner was called in for the
work.
Acergys new 1,800-metric ton (1,984-ton), 80-m (262-ft) high J-lay tower was to
be moved in one piece from the construction site to the Seaway Polaris, which was
working offshore Gabon. The J-lay tower would be installed directly onto Polaris
while onsite. This presented some sophisticated challenges, according to Jumbo.
One year prior to shipment, Jumbo started engineering a special method of sea-
fastening and load-spreading for the towers transit. On Sept. 12, 2006, Fairpartner
began its journey at the Huisman yard in Schiedam, The Netherlands. Here, the
vessel lifted the tower quayside in one piece with its two main cranes working in
tandem. The tower was secured, and the vessel departed.
Fairpartner arrived at the installation site in 12 days, and positioned alongside
Seaway Polaris for the exchange. The vessels mast cranes were rigged and con-
nected to the tower. It was lifted and installed on Polaris as planned.
Tenders in the works
At print, Jumbo was working on lling up its J-class order book for 2007 and
beyond. The company signed contracts for transportation and installation of three
STL buoys. On two of the buoy installations, Jumbo Javelin will install 16 suction
piles and 6-in. (152-mm) anchor chain on the project.
Tenders in the works include, installation of mooring systems for six FPSOs in
water depths up to 2,000 m (6,562 ft), and installation of 400-metric ton (441-ton)
structures in 800 m (2,625 ft) of water and 600-metric ton (661-ton) structures in
1,300 m (4,265 ft) of water.
To accommodate all this work, Jumbo has ordered two additional J-class ves-
sels. The Fairplayer and Jumbo Jubilee are schedule to enter the companys active
eet of 12 heavy-lift vessels in mid- and late-2008.
Jumbo Javelin transported and lowered two subsea mani-
folds and eight mooring piles on the ConocoPhillips-oper-
ated Britannia feld in the North Sea.
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Hull strength, fatigue analysis critical
during design/conversion phase
Plans call for 15-20 years on location
F
PSOs are generally designed to remain
at their offshore location for 15-20
years, without the need for dry-dock-
ing. Over the past few years, orders
for newbuild FPSOs have risen signi-
cantly, in particular for use in harsh environ-
ment zones or for deepwater developments.
However, with most of the newbuilding
shipyards lacking spare slots, tanker conver-
sions are becoming increasingly attractive
for fast-track projects. Conversions remain
a popular solution for milder environments
such as West Africa, Southeast Asia, Austra-
lia, and Brazil.
Structural issues reported on both pur-
pose-built FPSOs and conversions after
entering service reveal the importance of
hull strength and fatigue verication during
the design/conversion stage. In particular,
more feedback is becoming available con-
cerning the corrosion pattern of single and
double-hull tankers, and the typical failure of
structural components.
Below we report some lessons learned
regarding newbuilds and conversions, the
methodology Bureau Veritas is employing
to assess structural strength. Bureau Veri-
tas also has examples of situations where we
have acted as a consultant to assist our client
with solving problems on units in service.
Corrosion build-up
Fatigue and coating are two interrelated
phenomena. The higher stresses con-
centrated in certain parts of the hull
can lead to coating break-up and the
early onset of corrosion. It is essential
to keep the coating efcient as long as
possible because the fatigue life of un-
coated areas is normally around half
that of coated areas.
In double hulls, the cargo temper-
ature can be up to 20 C higher than
in single hulls. Higher temperatures,
and temperature uctuations both
inuence the corrosion process. Hu-
midity water vapor in the air space
above the ballast or cargo also cre-
ates a need for careful protection
against creeping corrosion.
However, there are often conict-
ing interests between the owners priorities of
a well-built, long-lasting vessel with minimal
operating costs, and those of the shipyard.
The standard guarantee for a ship only ap-
plies within one year of delivery, so the yard
will rarely face a claim for coating failure if
the coating is reasonably well applied. For
this reason, IACS has devised harmonized
Common Ship Rules for double-hulled tank-
ers and bulk-carriers where the IMO perfor-
mance standard for protective coating applies
as a condition of class. The offshore industry
should benet from these developments.
Construction trends
Thirty years ago, designs for conversions
were still based mainly on the use of mild
steel. The traditionally applied classication
rules were based on empirical experience
without the imposition of explicit and con-
sistent safety goals. A fatigue check was not
compulsory from the outset.
Later designs were based on the use of
high tensile steels with optimization tech-
niques that involved checking mainly yield-
ing and buckling criteria, leading to elastic
structures with increased stresses. Con-
verted vessels of these designs have to be
checked carefully for fatigue performance,
since part of their life has already been con-
sumed during service as a tanker. Plate re-
newals and fatigue enhancements may be
requested following structural analysis.
As for newbuild FPSOs, the major oil com-
pany operators also have vast experience as
large tanker owners. Based on their service
experience with both types of vessels, they
are imposing new design specications:
For hull construction, high tensile steel
is normally requested for the deck and
bottom, with mild steel for the remain-
der of the hull
A preference for certain structural de-
tails validated through previous experi-
ence
Provision of access openings and means
of access for inspection and rescue pur-
poses
Fatigue verication to provide results
that can be used to plan quality assur-
ance and inspection priorities during
construction and operation
Scantling requirements specied accord-
ing to the owners experience and strategy
(i.e. striving for higher corrosion margins
to minimize maintenance costs).
Methodology of analysis
Bureau Veritas hull analysis starts with a
direct hydrodynamic calculation, taking into
account metocean data and moor-
ing conditions at the offshore loca-
tion, the purpose being to dene sea
loads on the structure. The study is
also aimed at determining the values
of wave-induced loads and motions.
A unit operating in the North Sea
needs to be reviewed with increased
wave loads compared with standard
ship rules for unrestricted ser-
vice notation. The environmental
conditions off, say, West Africa, are
clearly less severe than the rule val-
ues corresponding to conditions in
the North Atlantic.
The analysis inputs environmen-
tal site parameters such as wave
direction, the wave spectrum with
Cristian Bran
RodolpheVeyer
Bureau Veritas

Sea pressures
on complete
model of FPSO.
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Designed to Perform
in Critical Applications
Solutions for the Oil & Gas Industry
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all its various parameters, the relative headings between all compo-
nents, and the water depth. Wind force and direction and current
data are also factored in.
A calculation is conducted for a minimum of three draughts: full
load, ballast, and intermediate. We also analyse the loading condi-
tion giving rise to maximum shear force in still water, as experience
shows there is a correlation between still water shear force and
wave-induced shear force.
Two types of results are transferred to the structural models: fa-
tigue loads, and extreme/operational loads for strength verication.
For the strength verication, the hydrodynamic analysis provides
the following parameters which are valid both for the vessel at the
intended offshore location, and over the hulls full length:
Wave-induced bending moment
Wave-induced shear force
Total accelerations in all directions, at the center of gravity of
each compartment, and at relevant positions in topsides areas
Relative wave elevation.
For the fatigue verication, the hydrodynamic calculation provides
loads to be applied on the structural model in order to determine the
RAOs of stress ranges.
Strength calculation
Structural assessment takes into account the results of the hydro-
dynamic analysis and includes:
Global strength assessment (yielding and ultimate)
Structural assessment of primary and secondary members
Impacts (bow impact, at bottom reinforcements, sloshing)
Spectral and deterministic fatigue assessment
Collisions, explosions, dropped objects.
Extreme wave loads corresponding to 100-year return period are
included in the calculation.
Structural analysis starts with a 2D analysis and scantling verica-
tion. The rst step is to verify the global hull girder strength. A yield-
ing check is then performed. Rules require also a check that the
bending moment applied to the structure is lower than the ultimate
0.80 10
7
kN.m
0.57 x 10
-3
m
-1
Hogging
Sagging
0.60
0.40
0.20
-0.20
1.0 0.5
-0.5 -1.0
-0.40
-0.60
-0.80
Vertical
Horizontal
Resultant
Applied
Midship ultimate bending moment plot.
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bending moment capacity of the hull girder,
bearing in mind suitable safety factors.
The second step is to verify the scantlings
of the plating and the ordinary stiffeners,
with yielding and buckling checks for the
stiffeners and plates. Even at this stage, a
fatigue check can be conducted for the end
connections of longitudinal stiffeners.
For the primary supporting members,
structural analysis normally involves use of
the 3D nite element method that is manda-
tory according to BV rules. In general, the
entire ship is modeled. Each hold is analyzed
via a three-hold length nite element model.
Calculations are also performed on the inte-
grated model (completed hull and topsides).
This allows evaluation of interaction between
the hull and topsides when both are subject to
deforming. Various loading patterns are also
considered, representing the different load-
ing conditions the vessel will be subjected to,
namely normal operation, accidental, repair,
inspection, and towing. Each of these condi-
tions is prepared with appropriate sea loads
determined via the hydrodynamic analysis.
Normal operating conditions are evalu-
ated with loads corresponding to a return
period of 100 years. Some load reductions
may also be allowed for inspection or repair
conditions. The nite element model serves
also to assess both the hull and other areas
of the FPSO such as topside supports, turret
structure, hull connection, all represented
in ne mesh models. Calculations are per-
formed in net scantlings, i.e. the scantlings
that according to the rules criteria are need-
ed to sustain the loads acting upon them,
without any implicit margin for corrosion.
For conversions, a recent thickness mea-
surement report is mandatory. Present thick-
ness is the base for future corrosion, and may
also be used for corrosion pattern trends.
Stresses are evaluated via the top-down
technique on coarse models, where the mesh
size is typically equal to the spacing of the
stiffeners. Buckling is veried taking into ac-
count the panel dimensions. In stress concen-
tration areas, the mesh size will be adapted
to the stress gradient down to a mesh size of
50 x 50 mm. Allowable stresses on such ne
mesh models are higher and may be taken
according to the new IACS Common ship
rules for double hull oil tankers.
For newbuild FPSOs, there are two dis-
tinctive periods transit and service on site.
With conversions, the tanker phase must
be analyzed also for damage build-up and to
determine whether detail renewals or modi-
cations are needed.
Two main causes of fatigue must be
considered when analyzing fatigue perfor-
mance on site: wave-induced loads and load-
ing/unloading sequences. With the spectral
approach, the wave-induced loads calculated
in the hydrodynamic analysis are applied to
the structures nite element model.
The structural model provides the RAOs
of the stresses. Fatigue damage is then cal-
culated, based on statistics of stress ranges.
At least three draughts and associated load-
ing conditions, ve headings, and 25 frequen-
cies, must all be taken into account. However,
these can be adapted, depending on the type
of mooring.
Stress ranges on structural details are as-
sessed through the 3D nite element mod-
els with very ne meshes, the mesh size
typically being equal to the plate thickness.
The acceptable level of damage depends
on the location, the accessibility for inspec-
tion, maintenance and repair, and on the
consequences of failure.
This is an edited version of a paper prepared for the
Of fshore Meditteranean Conference in Ravenna, Italy,
March 2007.
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High-pressure flexible pipe,
the next frontier
T
he arrival of high-pressure applica-
tions above API 10,000 psi represents
a challenge for large diameter exible
pipes. The rst API 15,000 psi (103
MPa) exible line for kill and choke
applications was produced in 1976 with a
2.5-in (63.5-mm) ID. The design has been
improved since to the present 3-in. (76-mm),
15,000 psi, 100C (212F) Rilsan and 130C
(266F) Coon products.
Flexible pipe technology
Unbonded exible pipes commonly are
used for dynamic risers connecting seabed
owlines to oating production facilities, as
wellhead jumpers on oating dry tree units,
for uid transfer lines connecting two pro-
duction facilities, and for static seabed ow-
lines and jumpers.
The tensile armor layers are high-strength
carbon steel rectangular wires, wound in
opposed directions to provide torque bal-
ance. These layers provide the mechanical
resistance performances of the pipe; that
is, resistance to hoop stress, tension, and
hydrostatic pressure. The plastic layers
are pressure barriers against internal and
external uids. Combined design pressure
and temperature are critical for the selection
of the polymer used as the leak-proof bar-
rier (pressure sheath). Polymers commonly
used are polyethylene, polyamide 11, and
PVDF. PVDF has the best chemical compat-
ibility and highest continuously sustainable
temperature of 130C (266F). For high-
pressure applications, an additional layer of
helical reinforcement over the pressure ar-
mor, or a second set of tensile armor layers,
can be applied. For deepwater designs, ad-
ditional reinforcements are applied over the
tensile armor layers to avoid buckling under
the external compression load.
For applications requiring high thermal
performance, insulation layers such as syn-
tactic foam strips can be wound on the pipe.
Flexible pipes have excellent fatigue be-
havior for oating platforms. They follow
wave-induced vessel motions and resist en-
vironmental loadings thanks to their ability
to bend to small radii.
High-pressure fatigue
Fatigue is a driving parameter for dynamic-
exible risers design. The fatigue life of the
tensile and pressure armor layers dictates the
life of the exible pipe. Therefore, an important
step is predicting expected life of the primary
structural layers using valid fatigue-life models.
When exible pipe is bent, the layers and
the wires in the each layer slide, adopting the
new shape. When the pipe is not pressurized,
there is little resistance to sliding. In this case,
sliding of the wires occurs for very small cur-
vature variations. However, when the pipe is
pressurized, a contact pressure pushes the
layers and the wires against each other. When
a moment is applied, a friction force prevents
the wires from moving until the moment is
large enough to overcome the friction. The
higher the operating pressure, the higher the
forces in the wires before sliding, and thus the
higher the stresses and the larger the fatigue
damage. In high-pressure and ultra deepwater
designs, the tensile armors as well as the pres-
sure armors are challenged.
With new developments requiring HT/
HP exible pipes, the high temperature be-
came an issue. A North Sea reservoir with
the highest pressure and highest tempera-
ture on the Norwegian continental shelf so
far at 910 bar (91 MPa) and 170C (338F)
was a challenge for exible risers.
At the exible riser connection, the tem-
perature is lower due to cooling in the ow-
lines resulting is a design specication of
132C (270F). These challenges for the 10-
in. (254-mm) exible production risers were
increased by H
2
S and CO
2
in the production
uid requiring sour service steel for the
riser armor layers.
Qualication testing included not only
small-scale tests, but also a full-scale fatigue
test under combined tension, pressure, and
temperature loads. Fluid temperatures up to
130C (266F) were applied, and the exible
pipe passed the test.
These exible risers hold the design tem-
perature record at 132C (270F) with the
ability to withstand short periods with the
internal uid at 150C (302F).
To exceed 130C (266F), several stud-
ies were performed. The MERL/MCS JIP
(Evaluation of Polymers for High Tempera-
ture Flexible Pipes) explored how to qualify
a high-temperature resistant polymer. The
conclusions were compiled into API 17TR1. It
describes the processes by which the critical
material properties, both static and dynamic,
can be measured and evaluated against rel-
evant performance criteria.
The HP/HT JIP with BP, ExxonMobil, and
Technip pursued research and development
in the HT area. Several options were studied
to allow exible pipes to carry HT uid, i.e.
more than 130C (266F). This JIP led to de-
velopment of a thermal screen that enables
exible pipes to carry uid with tempera-
tures up to 150/170C (302/388F).
Two PVDF grades already qualied up
to 130C and API 15,000 psi operating con-
ditions. Using an internal thermal screen,
a bore temperature of over 150C (302F)
can be sustained while not exceeding 130C
(266F) at the pressure sheath level. The
screen is laid onto the internal carcass and
thermally insulates between the uid in the
bore and the polymer pressure sheath. This
is a Technip patented technology.
HP, ultra deepwater
Flexible pipe was chosen for the water injec-
tion system at a BP deepwater Gulf of Mexico
eld developed through subsea completions
tied back to a large semisubmersible produc-
tion platform. The exible pipe was chosen for
several reasons: it was cost effective, it had a
good corrosion resistance to the inner uid
thanks to the inner plastic liner, and it allowed
a steeper riser conguration and therefore a
shorter length of pipe since some of the injec-
tion wells are below the platform.
The qualied lines have a 7.5-in. (190.5-
mm) internal diameter and a design pressure
of API 10,000 psi (69 MPa). Combined with
the water depth of 1,900 m (6,234 ft), this is
a major step out from previously eld proven
technology as the design breaks world re-
cords for exible dynamic risers with respect
to both water depth and design pressure for
this diameter.
The exible pipe designed for this applica-
tion is a smooth bore pipe. From the inner-
Henri Morand
Antoine Felix-Henry
Jeroen Remery
Technip
Steve Groves
Dick Percy
Jon Day
BP

TRANSPORTATI ON & LOGI STI CS
Flexible riser ready for dynamic test.
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most to the outermost layer, the pipe is composed of the following:
Polyethylene inner tube to make the pipe leakproof, allowing
transport of corrosive uids, such as injection water
Carbon steel zeta wire for hoop stress, collapse, and crushing
resistance.
Flat carbon steel spiral to help the zeta wire function
Polyethylene anti-collapse sheath to ensure if the external sheath
is damaged, the water pressure transfers to the underlying zeta
and spiral layers which have sufcient collapse resistance
Two pairs of carbon steel armor wires for axial resistance to
compressive and tensile loads
High strength tape to ensure stability of the armor wires under
the compressive loads induced by the reverse end cap effect of
the external pressure when the pipe is empty
Polyamide external sheath to prevent seawater ingress.
Once the detailed design was set, a series of laboratory tests on the
materials and six full-scale tests were put together. The objective was to
verify that the design could handle the pressure change. Full-scale tests
were performed on a dedicated prototype pipe.
Once the design was completed, a length of riser was made us-
ing the same methods and with the same equipment as to be used
for the actual risers. This ensured that the test product would be
as similar as possible to the nal riser pipe. The samples also con-
tained welds in the different steel layers to have a representative
sample. End-ttings were designed, constructed, and mounted as
they would be for in eld lines.
A hydrostatic collapse test conrmed the pipe could resist the ex-
ternal pressure of 192 bar (19.2 MPa) without attening. The test was
performed on a 2-m (5.5-ft) sample including welds in the pressure ar-
mor layers. Collapse occurred at 571 bar (57.1 MPa) and was detected
through a sudden pressure drop in the external pressure chamber.
This test result showed the ability of the exible pipe to resist the
hydrostatic pressure in the eld, with a comfortable safety margin.

Internal pressure and burst test
A pressure and burst test demonstrated the pipes ability to resist the
project design and test pressures. A 5-m (16-ft) sample was used with
welds in all steel layers and end ttings.
The line was pressurized three times up to the API 10,000 psi
design pressure (69 MPa). During these pressure cycles, the elon-
gation and increase in diameter were monitored and conrmed as
normal behavior. Then, the line was pressurized up to burst, which

Technical gap that has been bridged.
Water injection risers delivered
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1,000 2,000 3,000 4,000 5,000 6,000 7,000 0
WD (feet)
P

x

I
D

(
p
s
i

x

i
n
c
h
)
New qualied
pipe
Existing WI lines
For decades we have offered our
customers heavy-lift dockside staging
and storage.
We've just gotten larger. Our new yard is located on an
11-acre track of waterfront property in Port Fourchon's
recently opened expansion area.
We have upgraded our lifting capacity to a 4600 Manitowoc
Ringer Crane rated at 650 tons with a 330-foot boom
length, the largest lifting capacity crane in the port.
The 24-hour lighted facility also has in place additional
lifting capacity, including a 150-ton crawler crane, two
52,000-pound heavy lift forklifts, and a state of the art
dockside chain handling system for easy loading and
offloading of anchor chain.
The new facility is located at 558 Dudley Bernard Road, Port
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832-252-7100
sales@delmarus.com www.delmarus.com
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__________________

occurred at 1,617 bar (i.e. 2.3 times the de-
sign pressure). Bursting was in the pipe sec-
tion of the line; no failure or pull out of the
end-ttings was observed.
Dynamic fatigue test
A dynamic fatigue test was performed to
validate the concept of the riser and the bend-
ing stiffener in this kind of dynamic applica-
tion. The test bench was upgraded to a tension
capacity of 700 metric tons (772 tons) and the
capability of applying angle variations of up to
+/- 20 deg. The test sample was 16 m (52.5 ft)
long with a two-part stiffener more than 4 m
(13 ft) long.
Two million load cycles were applied. Ver-
ication that these conditions represented
the eld conditions was done with compara-
tive fatigue calculations. It was shown that
the test conditions represented loadings that
would cause fatigue damage approximately
three times larger than predicted for the
eld conditions. The test was determined to
be conservative.
The planned cycles did not result in any
loss of pressure or other problems. The
pressure test that was performed at the end
of the cycling also was successful.
The other full-scale tests performed were:
A crushing test, performed to verify
the ability of the pipe to resist the radial
loads applied by the Deep Blue tension-
ers during offshore installation
An ageing test of the sealing of the PE
pressure sheath in the end-tting was per-
formed to demonstrate the suitability of
the chosen sheath material and the sealing
mechanism for 25 years at 65 C (149 F)
and API 10,000 psi (69 MPa) rating
A collapse test of the inner tube, per-
formed to verify the collapse resistance
of the inner.
Next frontier
A new initiative started in 2004, the ultra
high-pressure (XHP) JIP. Its aim is to qualify a
5- to 6-in. (127- to 152-mm) production dynamic
exible pipe with design temperature of 150C
(302F) and design pressure of API 20,000 psi
(138 MPa). Testing will concentrate on the HP
side, as HT already has been qualied.
To withstand such pressure, a new pressure
vault had to be designed. This vault is able to
dynamically support the pressure and fatigue
loads. It has been optimized not only for fatigue,
but also to control pressure sheath creeping,
which can be an important issue in HP/HT ap-
plications while allowing a low bend radius.
For material qualications, one major is-
sue is rapid gas decompression. Gas from
oil production uid can be trapped inside
the pressure sheath material and, should a
too rapid decompression happen, the pres-
sure sheath could be irredeemably dam-
aged. Therefore, plastic materials need to
be qualied for that event. API17J and API
17TR1 provide the testing protocol.
Rapid gas decompression tests on PVDF
grades have been performed successfully up
to maximum pressure of 1,240 bar (124 MPa)
at rates of 70 bar/min. Qualication for oper-
ating pressures above 1,240 bar depends on
nding adequate testing equipment.
A prototype manufacture is ongoing with
6-in. (152-mm) pipe rated at 20,000 psi (138
MPa) design pressure. A full set of static and
dynamic tests is planned.
Acknowledgements
The thermal screen was developed and qualied
through a Joint Industry Project with BP, ExxonMobil,
and Technip Flexi France as participants. The XHP
JIP is a common development program between BP
and Technip Flexi France.
The authors thank all the personnel in Flexi France
R&D center involved in these projects, especially Jean
Hardy for his contribution to the high-temperature
polymers studies.

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Newly merged seismic super-group
plans global expansion
I
t is eight months since CGG and Veri-
tas announced their intention to merge,
creating the worlds largest seismic
group, with a combined turnover in 2006
of around $2.6 billion. Offshore asked
CGGVeritas Christophe Pettenati-Auziere,
President, Geophysical Services, for a prog-
ress report.
Offshore: Has reorganization of the group
been completed, including the new manage-
ment structure?
Pettenati-Auziere: Yes, the new organiza-
tion was in place on January 15, the day of
the closing of the merger, only four months
after it was rst announced. During Novem-
ber and December, we worked hard to make
sure everything was ready for the change-
over. One of the key issues was adapting to a
new way of working.
Offshore: Has the board tried where possi-
ble to divide responsibilities for the various
divisions equally between CGG and Veritas
executives?
Pettenati-Auziere: I liaise directly with two
hemisphere presidents, Timothy L. Wells,
based in Houston, and Luc Benot-Cattin,
based in Paris. Reporting to them are four
senior regional vice-presidents responsible
for operations in the US and Latin America
(Colin Murdoch), Asia-Pacic (Cameron As-
till), EAME (Dominique Robert), and Canada
(Fernando Aguilar). I liaise as well with three
product line executive vice presidents respon-
sible for global coherence and coordination
of our methods and technologies in Imaging
(Guillaume Cambois), Land (Lionel Lhom-
met), and Marine Acquisition (C. Richard
Price). Finally, two vice presidents report to
me for Finance (Andre Froment) and Legal
issues (Olivier Louf).
Out of these nine chaps, basically four
and a half came from CGG, and four and a
half from Veritas. The half notion comes
from Richard Price who joined CGG from
Veritas three months before the merger. So
it is without a doubt a well balanced manage-
ment team.
Offshore: What were the perceived bene-
ts of the merger on both sides what were
the strengths and weaknesses of the two
companies?
Pettenati-Auziere: In fact there were a lot
of synergies in the respective portfolios. The
newly merged entity will stick to the model
of a generalist seismic company present on
all segments and serving all clients and mar-
kets, which means providing all elements of
seismic acquisition, processing and inter-
pretation.
Offshore: How have oil industry clients re-
acted to the merger?
Pettenati-Auziere: We have visited many if
not all our clients, and the reaction has been
generally very positive they expect us to be-
come the second truly global contractor. We
can bring them a wide range of technologies,
with particular strengths in imaging, and also
a very open and transparent, corporate atti-
tude. That will be our main future approach.
Offshore: What are the main benets to the
respective clients of dealing with a larger or-
ganization?
Pettenati-Auziere: Most obviously, per-
haps, a larger, more exible eet, comprising
20 vessels the worlds largest. This gives
the client the certainty that if he contracts a
vessel, availability will be guaranteed in what
is currently a very tight market. Also, in Im-
aging, we are a technology powerhouse with
a strong market presence. This provides the
group with an unparalleled base for technol-
ogy development in order to help our clients
address their increasingly difcult E&P
challenges.
Offshore: The combined group has 28 open
seismic data processing centers and 15 dedi-
cated centers around the world. Are there
plans to expand or slim down this capability?
Pettenati-Auziere: We will rationalize to
an extent, certainly all centers that oper-
ate in the same town will merge eventually.
Jeremy Beckman
Of fshore

GEOLOGY & GEOPHYSI CS
(Left) The Geo Challenger now shooting in India. (Right) The Veritas Viking.
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June 2528, 2007
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Istanbul, Turkey
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But we could also open branches in certain
areas to be closer to our clients.
Offshore: How much larger is your eet,
and how does it compare with the competi-
tion?
Pettenati-Auziere: We have 16 3D acquisi-
tion vessels and four 2D ships, of which 13
came from CGG, and seven from Veritas. But
for me, having the biggest eet by a margin
of one or two vessels either way is not the
issue as long as you are signicantly above
critical mass its more important that yours
is technically t for purpose and can deliver.
Offshore: How much had CGG and Veritas
invested over the past few years to upgrade
and improve their respective eets? Has the
level of investment risen recently, in line
with oil prices?
Pettenati-Auziere: Over the past four
years, CGG had invested heavily in its eet,
but the company had also slowed down in-
vestment on multi-client services as demand
on the exclusive market grew sharply. To
some extent the picture was the reverse at
Veritas, which had maintained for the last
few years an important effort on the multi-
client front. The combination of the two is a
synergy in itself in that respect.
Both companies have further raised their
level of spending recently. The merged
group has budgeted around $450 million
this year for multi-client product develop-
ment, and $280 million for industrial capex
mainly in Marine, with two new vessels on
their way, the Vision and the Poseidon (two
former Veritas projects)
Offshore: What are the stand-out features
of your newer agship vessels, such as the
Geo Challenger (already in service), and an-
other currently planned by Arrow Seismic
in Norway?
Pettenati-Auziere: The Geo Challenger has
performed very well. Its currently shooting
in India for ONGC, and will then move to
West Africa. Basically these are large capac-
ity ships, with 12 or more Sercel Sentinel
solid streamers. We have also upgraded the
Symphony with this technology, and more
streamer renewals will follow on our other
vessels the Alize will be next.
Sentinel is the best in its class, in terms of
providing a productive and robust streamer
conguration. It is signicantly more reliable
than oil-lled streamers, less susceptible to
damage from shark bites, and its lower noise
generation gives you better data, allowing
you to shoot in more marginal weather con-
ditions. Also, more redundancy is built in, in
terms of the architecture of the electronics.
Offshore: Are you planning to phase out any
vessels?
Pettenati-Auziere: Not in 2007-08. Come
2009, we will see how the market shapes up.
By then, when we have our latest newbuilds,
we will decide whether to stick with some of
the old ladies, or retire them.
Offshore: Your website mentions the trend
towards multiple vessel congurations (i.e.
a combination of high capacity and lower ca-
pacity 3D and 2D)?
Pettenati-Auziere: Demand for wide-azi-
muth surveys is picking up, particularly in
the Gulf of Mexico to image deep-lying tar-
gets below salt. This can involve a ve-ves-
sel spread, comprising a master vessel, with
four source vessels two in front of the ar-
ray, and two at the back.
Offshore: Can you highlight some of the more
signicant campaigns the group is currently en-
gaged in?
Pettenati-Auziere: Denitely a wide-azi-
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_______________________
muth survey for BP in the Gulf of Mexico on
an exclusive basis. We will also start doing one
soon for our seismic data library. Elsewhere,
we have a large project for ONGC involving
three vessels until the end of the season in
June. Qatargas has taken the Fohn for a very
long survey, and we also have a one-year con-
tract for Woodside in Australia. Among our
more established sectors, we have three ves-
sels working currently for Petrobras in Bra-
zil, and we are continuing work on our North
Sea data library program.
One trend Ive noticed is that more and
more companies are seeking acquisition ves-
sels for long-term contracts, including NOCs
such as Saudi Aramco. We are seeing more
tenders for periods of a year or even 18
months. These companies are aware that
they must get hold of vessel capacity in ad-
vance, not wait for a slot to become available
on the spot market.
Offshore: Is the merged group active off
all ve continents, or are there certain areas
where your presence could be stronger?
Pettenati-Auziere: We are working every-
where. I think market prospects in the for-
mer Soviet Union will develop onshore and
offshore. We are now engaged in a shallow
water seismic survey in the Caspian, and we
operate a processing center in Moscow.

Offshore: What are the strengths of the merged
group in software for imaging, data processing,
geoscience interpretation and other techniques?
Pettenati-Auziere: Several clients rate us,
by which I mean former Veritas or former
CGG, number one in most if not all the tech-
nology segments of imaging, i.e. Time, Depth,
4D, 4C, Multiple Elimination, Inversion, AVO.
As I said earlier, this combination is a fantastic
powerhouse and provides very exciting pros-
pects for our scientic personnel
Offshore: Your website mentions plans for
software rationalization, where the two com-
panies products overlap.
Pettenati-Auziere: It was decided at the
very early stage of the merger that the global
strategy would be to merge Sage and Tango,
the Veritas processing software, into Geoclu-
ster. This is a complex and sensitive task both
from a technical and human point of view. It
will be carried out very cautiously on a two-
year horizon with minimum disruption to
day-to-day operations where our clients must
be guaranteed access to both technologies
until they form an integrated platform.
Offshore: What about investment in new
products and technologies?
Pettenati-Auziere: On the Equipment front,
Sercel will introduce 2D birds (streamer steer-
ing and positioning devices). We currently op-
erate birds that control streamer depth only,
but we also need to be able to position stream-
ers laterally. Sercel will in addition introduce
an integrated streamer navigation/positioning
system called SeaProNav. Finally, further to
the acquisition of Vibtech, Sercel is develop-
ing fast in wireless land acquisition systems.
On the Services side, I believe that our rst
new products on the processing side resulting
from the merged capacities will appear in the
next 12 months.
Overall, integration of the two companies
products lines are going well. There were
surely good synergies anyway between our
acquisition and processing business lines,
but more importantly the attitude of every-
one on both sides has also been very good.
At present, we are concentrating on try-
ing to keep everything as stable as we can.
At an appropriate time, we may decide to
move people from one companys location or
vessel or what not to another, and we will at-
tempt to share lessons in best practice where
possible, where certain issues arise.
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Time-lapse seismic swaths prove
cost-effective alternative to full-field 4D
Important to Shells North Sea strategy
W
ith careful planning, time-lapse
seismic technology (4D) swaths
can be a cost-effective alterna-
tive to full-eld 4D seismic ac-
quisition for structurally simple
elds and are important in Shells North Sea
4D strategy.
The portfolio approach to 4D swath acqui-
sition successfully acquired time-lapse seis-
mic data over four North Sea elds at low
cost with minimal preparation. In the case
of Nelson and Guillemot elds, processed
results support current business activities.
For Scoter and Cook elds, the results are
less convincing. In all cases, valuable infor-
mation was acquired.
Keys to technical success are out-of-plane
geological dips, which result in imaging er-
rors and serious 4D non-repeatability. This
may require up-front modeling to x the
number and location of repeat sail-lines to
minimize such errors.
The 2D processing techniques are less
able to compensate for seismic acquisition
non-repeatability. Consequently, source and
receiver positioning repeatability and base-
line data quality; navigation accuracy re-
quire careful consideration during planning.
Using a 4D swath, expect a reduction of at
least 5% repeatability relative to full-eld 4D.
Although acquisition programs are reduced
dramatically, the efforts required to process
4D swaths still can be signicant.
Normalized RMS is a standard measure
for 4D seismic repeatability (noise). NRMS
= 2 x RMS (Base-Monitor) / RMS Base +
RMS Monitor where RMS is root mean
square amplitude measured in a window
(usually just above reservoir so as not to in-
clude genuine 4D difference)
Swaths can deliver crucial information for
eld management decisions. However, the
limitations of the technique need to be consid-
ered, remembering that a negative feasibility
result could prevent a full-eld 4D and a misin-
terpreted result could lead to a bad well.
Swaths work when the 4D response is
calibrated, i.e., time-lapse signal has been
interpreted previously on a full-eld survey.
They also can detect medium to strong am-
plitude changes (AI>3%) and large time
shifts (>2 ms).
Swaths likely fail if the crossline geologi-
cal dip is signicant (>100) and it might be
difcult to extract business value if the 4D
response is complicated and uncalibrated,
for example, combined pressure and sweep
signals, three-phase tuned 4D responses,
or spatially complex drainage patterns. In
these cases a full-eld survey mapping the
lateral extents of responses and tying with
additional production data may be neces-
sary to understand the 4D signals.
Time-lapse (4D) seismic technology has
increased the understanding of producing
reservoirs over the past 10 years. The key is a
balance between seismic repeatability, magni-
tude of production-related signal, and timing
with respect to the business activities such as
drilling in-ll wells or water shut-offs.
A time-lapse swath is dened as a single
or a small number of consecutive sail lines of
repeated multi-streamer seismic covering a
limited area. Baseline data can be dedicated
swath acquisition or, more typically, sail lines
selected from a previous 3D survey. Relative
to a full-eld 4D survey, time-lapse swaths
can signicantly decrease seismic acquisition
duration, allow exibility in terms of vessels
and weather windows to reduce costs.
There are two main applications of the tech-
nology:
1. To robustly and cost effectively test the
presence of a production-related seismic sig-
nal, prior to the outlay on full-eld 4D, where
a feasibility study has shown a low technical
chance of success
2. To allow target-oriented interpretation of
production-related 4D seismic signal to sup-
port a specic business activity typically around
an existing well or proposed well (sometimes
providing an update snapshot to a previously
acquired and aging full-eld 4D).
This can be achieved only with careful
acquisition parameters design to ensure re-
peatability is not compromised. Following
are the results of a 4D swath campaign over
several North Sea elds in 2005.
Previous swath work
Although successful time-lapse swaths had
been acquired previously by Shell, the rst
North Sea example to demonstrate real busi-
ness impact was acquired over the Gannet E
and F elds in 2004. The Gannet cluster is
made up of seven oil and gas accumulations
within a turbidite fan complex where 4D is a
proven technology. Two additional sail-lines
were added to the 2004 4D seismic program
to test for a 4D signal at Gannet E and F. Gan-
net F results showed a clear 4D signal on the
difference section, suggesting the eastern
part of this single-well eld was not being
swept efciently. An inll well was planned,
Jon Brain
Peter Grant
Rob Staples
Erik Tijdens
Shell UK Ltd.

Y
Figure 1. 4D difference interpretation from the
Gannet F. swath showing OWC contact rise in
the west (red loop) and limited sweep in the
east. The map shows the 4D difference from the
subsequent full-feld 4D, confrming the direc-
tion of aquifer infux.
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although the nal well trajectory was op-
timized on full-eld 3D time-lapse several
months later. The inll opportunity identied
from the swath data was drilled in 2006 and
has been producing beyond expectations,
quadrupling eld production.
On the strength of the 4D swath success
at Gannet E and F in 2004, several North
Sea elds were screened as potential 4D
seismic candidates for 2005 acquisition, giv-
ing a short-list of nine elds. These were
screened according to proximity of seismic
vessels under contract and the likelihood of
co-venture support, and were grouped ac-
cording to repeat acquisition congurations.
Nelson, Scoter, Cook, and Guillemot A were
selected.
This portfolio approach was critical in allow-
ing mobilization costs and weather down-time
to be shared, particularly as data were ac-
quired in May, near the start of the North Sea
weather window. It also accelerated technical
and economic approval both internally and ex-
ternally with nine co-venture companies.
Cooperation with the seismic acquisition
teams was essential to determine which
seismic vintage to match to actual swath co-
ordinates and repeatability tolerances with
respect to geological dip. Cross-line dips
were known to be an issue and were mini-
mized by choice of swath location.
Acquisition repeatability
Good 4D seismic repeatability requires
good acquisition positioning repeatability
(Smit et al., 2005). This means reproducing
baseline source and receiver positions as
closely as possible during the monitor survey.
The 2005 swath program needed to repro-
duce a number of acquisition congurations
using a two-source, eight-streamer set up as
used on the previous full-eld 4D survey.
This avoided reconguration downtime
between surveys. Understanding and esti-
mating seismic repeatability is an important
part of the feasibility and planning process,
as shown in the accompanying gure. Color-
coding highlights non-repeatability issues:
green represents no problem, orange rep-
resents a potential problem, and red is real
concern.
Early 1990s Cook and Scoter N-S surveys
have limited navigation positioning accuracy
due to the absence of active tail buoy and
source positioning. This can reduce signi-
cantly nal 4D seismic repeatability.
For each swath, baseline shot positions
were repeated as closely as possible. Having
extra cables on the monitor survey relative
to the baseline meant the baseline acquisi-
tion footprint could be covered by the moni-
tor, even if the cable feathering between
them differed. This allowed good receiver
positioning without tidal shooting, to save
acquisition standby time waiting for the cor-
rect point on the tidal cycle. Average source
plus receiver positioning difference is a stan-
dard measure of 4D acquisition repeatability
and the values from the swath shoots in
the order of 60 m (197 ft) compared well
to our best full-eld conventional steamer re-
sults of 30 m (98 ft), and were well within our
quality threshold of 100 m (328 ft).
Processing issues
The most signicant processing challenge
and the big trade-off with the swath concept
is the limited cross-line aperture available
for migration. Without adequate aperture
for a 3D migration, steep cross-line dips will
not image, dipping events will be mis-posi-
tioned, and there will be interference from
out of plane reections.
To a large extent imaging errors will be
repeated on base and monitor surveys and a
reasonable, if not correctly positioned, 4D im-
age results. This assumption may break down
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for surveys with limited navigational accuracy
and/or positioning repeatability, in which case
4D noise will increase with geological dip.
The nal repeatability results measured as
average NRMS noise can be seen. Guillemot
and Scoter NW-SE achieved excellent re-
peatability and were marginally less repeat-
able than equivalent 3D time-lapse results.
The Nelson repeatability was good, but the
NRMS value appears relatively high due to
the limited random noise attenuation from
2D processing. The Scoter N-S and Cook
swath repeatability were not as good due the
age of the baseline surveys. The 4D results
condence was reduced accordingly.
Results
Nelson The Nelson eld is a sand-rich
submarine turbidite deposited in the Late
Paleocene (Forties) characterized by NW-
SE trending main sand channels, chan-
nel margins, and minor scale faulting. It is
proven 4D territory with repeat seismic ac-
quisitions in 1997, 2000, and 2003 showing
clear basal aquifer drive in the lower Forties
main channel sands (MacLellan et al, 2006).
A two- to three-well campaign was planned
for 2006 where existing wells, which largely
have watered out due to the rising aquifer,
will be sidetracked to areas of by-passed oil.
The main aim of the Nelson swaths was to
reduce the risk of potential targets being
swept by updating the 4D signal. Two swath
lines were acquired and matched to seismic
acquired in 2000.
We see clear sweep of both upper and lower
A is the Nelson 4D difference (2003-2000) showing sweep of main channels sands (blue). B is the Nelson 4D difference (2005-2000) showing continued
sweep of main channels sands (blue) and signal at Target B.
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Forties sands (strong blue loop) from the 3D time-lapse difference signal
(2003-2000). The intervening 4D signal in the channel margins is more un-
certain, which is precisely the target of the 2005 4D swath. Here the differ-
ence signal (2005-2000) shows a continuation of the base-drive of the main
channels and conrmation that the upper sand is now showing evidence of
sweep in target B but not in A, which remains a potential inll target for the
side-track campaign.
Scoter Scoter is a Late Paleocene gas eld in a salt-induced four-way
dip closure with low-medium (50-60%) net-to-gross. A substantial graben
fault separates blocks B and C, each being drained by a producing well with
a third well planned in block A in 2006. The value of this well is dependent
on the amount of fault bafing, hence the business driver for the 4D swaths
was rstly to identify the extent of fault bafing via seismic changes in the
gas-water contact (GWC) and secondly, to determine if full-eld 4D would
work given the low quality 1991 baseline seismic survey.
The rst observation is that the swath does not image the structural
dips of the reservoir compared with the 3D data. However, the GWC,
although reduced in the SE, can be observed. Careful parallel process-
ing suggests a visible reservoir related signal at the GWC, which is
enhanced after time aligning with the baseline ETAP survey. In this
case, the polarity of the 4D signal suggests that the GWC moves deeper,
i.e., opposite that expected for typical aquifer sweep. Although differ-
ent production mechanisms could explain this, the 4D time shifts are
small (1-2 ms) and just above the non-repeatable noise. This suggests

Comparison between the NW-SE 3D and
2D swath image over Scoter showing the difference
in structural imaging. Note the out-of-plane
refectors cross-cutting the fatspot on the swath data.
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a 4D signal could be picked up with a full-eld 4D repeat. However,
evidence of decreased fault bafing was insufcient to impact the
planned third well.
Cook The Cook swath was an opportunity to verify an observ-
able time-lapse signal prior to a full-eld survey, while investigating
non-repeatability caused by navigation inaccuracy on the baseline
seismic. There was also the potential, if a 4D signal was identied, to
gain limited (2D) information on water ood patterns and to reduce
uncertainty with respect to drive mechanism.
The 4D differences were dominated by steep dips at the high am-
plitude top reservoir reector. After time alignment of base and moni-
tor data, a weak 4D signal was visible around the oil-water contact
(OWC), but this looked to be an artifact of the alignment, resulting
from the limited cross-line migration aperture and non-repeatability
at the edges of the swath. The conclusion is that this swath is com-
promised by cross-line dips in excess of 40, combined with a weak
4D signal.
Guillemot The business case for Guillemot was to understand sweep
patterns to aid a re-perforation strategy in the Forties reservoir and to
chase Fulmar oil targets to the East of the current producers. Due to
the steep dips (> 250), the survey was extended 3 km (2 mi) east, so it
can be considered as a mini 4D rather than a 4D swath. This succinctly
demonstrates that lowering the acquisition costs can enable economic
screening of borderline 4D projects. A 4D signal was observed in the
Forties and Fulmar reservoirs enabling water front mapping.
Acknowledgements
Thanks to Esso Exploration and Production UK Ltd., Hess Ltd., Oranje-Nassau,
Noble Energy, Total E&P UK Plc., Petro Summit Investment UK Ltd., Svenska
Petroleum Exploration U.K. Ltd., Petro-Canada and E.ON Ruhrgas UK Exploration
and Production Ltd. for permission to print this article. Also, thanks to our other
Shell colleagues who were key to the programs success: Peter Rowbotham, Angus
MacLellan, Richard Rogers, Carlo Nicolai, James Hayduk, and Ed Telatovich.
References
MacLellan, A., Rowbotham, P., Rogers, R., Busink, P. and Millington, J. 2006,
Integrated 3D/4D structural and stratigraphic interpretation on Nelson accounts
for variable uid contact levels: EAGE 68th Annual Meeting.
Smit, F., Brain, J. and Watt, K. 2005, Repeatability monitoring during marine 4D
streamer acquisition: EAGE 67th Annual Meeting.

4D difference section across A and C blocks. The GWC contact is visible,
particularly in the C block, but the polarity is consistent with the contact
moving down.
WWW. P E N N E N E R G Y. C O M
Buying or sellingrefurbished or newPennEnergy connects true buyers to true sellers. Call us.
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Houston London Paris Stavanger Aberdeen Singapore Moscow Baku Perth Rio de Janeiro Lagos Luanda
World Trends and Technology for Offshore Oil and Gas Operations
NOIA
National Ocean
Industries Association
Special Report
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Offshore energy education must begin
with the public and politicians
O
ver the past 25 years, if one thing has
proven true its that one Presidential
Administration cannot change our
dependence on imported oil.
Today, the United States contin-
ues to import 60% of our oil and were more
dependent on sources from the Middle
East than we ever have been.
But this doesnt have to be the case. The
nations Outer Continental Shelf (OCS)
holds tremendous energy resources. It is
estimated that the OCS contains over 419
trillion cubic feet (tcf) of natural gas and 86
billion barrels (Bbbl) of oil, thats enough
oil to replace Persian Gulf imports for 59
years or natural gas to heat 100 million
homes for 60 years. All we have to look at
is our South American neighbor,
Brazil to see how they completed
their turnaround.
Some 50 years ago, Brazil was
nearly 100% dependent on foreign
oil, with domestic oil production
lling only 3% of domestic de-
mand. But, in the next few years
theyll become a net oil exporter.
How is this possible? One main
reason is because Brazil has been
developing their ultra-deep offshore wells
some 50 mi into the Atlantic Ocean east of
Rio de Janeiro. With the country consum-
ing 2.2 million barrels per day, Brazil is now
energy independent and its government
has stated its intentions to remain so.
The United States can do the same, but
the Members of the 110th Congress need
to hear from their constituents, business-
es, and agricultural leaders in their dis-
tricts that this nation needs to open up our
offshore for exploration and development.
Cultivating state involvement
More than 130 years ago, painter Vincent
van Gogh said, great things are done by a
series of smaller things brought together.
The National Ocean Industries Association
(NOIA) recognized that many of the mem-
bers of Congress felt that offshore energy de-
velopment wasnt a major issue back in their
states, especially if they were an inland state.
Taking that cue, NOIA embarked on a
national grassroots and grasstops campaign
to educate governors, state energy directors,
state legislators, business and agricultural
leaders throughout the nation on the impor-
tance of providing access to the Outer Conti-
nental Shelf for exploration and development
of the nations valuable offshore resources.
Virginia was the rst state where various
end user groups and state legislators rec-
ognized that cultivating an offshore indus-
try in the state would help spur economic
development and address the rising cost of
natural gas that has adversely affected the
competitiveness of American industry.
In 2005, the state of Virginias leg-
islature broke with decades of coast-
al opposition to offshore drilling by
passing a resolution calling on the
governor to lobby for a lifting of
offshore moratoria. This effort was
rejected by then-governor Mark
Warner on procedural grounds, but
was passed again the following year
and accepted with some alteration
by Governor Tim Kaine. On May
18, 2006, Governor Kaine signed the Vir-
ginia Energy Plan into law, a Plan that among
other things, provides that it is the Common-
wealths policy to support federal efforts to
determine the extent of natural gas resources
50 miles or more offshore and to support the
inclusion of the Atlantic Planning Areas in the
MMS 5-Year Plan.
Over the past year and half, coalitions of
energy producers and energy consumers
such as the manufacturing, chemical and
agriculture communities have reached
out to state-level leaders around the coun-
try to educate them on the negative impact
to their economies caused by restrictions
on offshore energy development.
One of those groups is the Agriculture
Energy Alliance, a broad based coalition
of more than 113 farm organizations and
agribusinesses working to reach state
legislators and policy makers throughout
the nation. Included in this alliance are the
state farm bureaus, wheat growers, corn
growers, agrichemical and fertilizer com-
panies, and poultry and turkey growers.
NOIA staff has visited 17 states to promote
lifting the moratoria on the OCS for explora-
tion and production, coordinating visits to
governors ofces, state legislators, county
and business ofcials, and prominent farmers
and agribusiness directors. The promise of
OCS development and the hurdles imposed
by high energy prices is a message that has
resonated throughout all of the states.
Visits like these have resulted in the in-
troduction or passage of offshore energy
resolutions or legislation in 11 states Idaho,
Kansas, Oklahoma, Tennessee, Utah, Mon-
tana, North Dakota, Nevada, Virginia, Geor-
gia and South Carolina and generated two
legislative letters in Arizona and Utah.
In March 2007, I was in Carson City,
Nevada to meet with the governor and tes-
tify before the State Legislature on the im-
portance of providing access to the OCSs
energy resources for not only Nevada, but
the rest of the country as well. In my tes-
timony, I pointed out that between 1990
and 2000, the states energy consump-
tion increased nearly 70%. In addition, the
2005 Status of Energy in Nevada report
concluded that natural gas and petroleum
prices have risen to the point where the
cost of electricity and transportation fu-
els brings hardship to Nevadas farmers,
ranchers, and rural businesses. I let them
know that this doesnt have to be the case,
as the nations submerged public lands
contain valuable energy resources, but un-
fortunately they are closed for any explora-
tion or development.
While alone these efforts do not lead to for-
mal changes in federal policy, they do send a
vital signal from the state leadership to the
Congressional delegation about the intent of
the folks on the ground back home. When
such a step was undertaken in Virginia, it led
both Senators to become vocal supporters of
offshore energy legislation.
Along the Atlantic coast, NOIA continues
to work with coalitions of various end user
groups to promote OCS Development from
Virginia to Georgia. Included in the coalitions
are the Southeast Energy Alliance, Consumer
Energy Alliance and the OCS Coalition. Mem-
bers of the Southeast Energy Alliance include
the North Carolina Farm Bureau the second
largest in the country with 500,000 members,
Tom Fry
President
National Ocean
Tom Fry
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the Rural Electric Cooperatives, rural county
associations, area chambers of commerce,
and the forest and paper businesses.
Last month, the South Carolina General As-
sembly introduced a joint resolution to Create
a study committee to examine the feasibility of
natural gas exploration in the Atlantic Ocean
off the coast of South Carolina. The resolution
has the backing of the Myrtle Beach Chamber
of Commerce. This legislation introduced in
the Assembly mirrors the bill passed in Virgin-
ia last year, to study the possibility of develop-
ment of natural gas off the states coast.
In addition, South Carolinas southern neigh-
bor, Georgia, unveiled a comprehensive energy
strategy in December 2006. The energy strategy
called for, among other things, the state to sup-
port prudent exploration of natural gas reserves
on the Outer Continental Shelf.
NOIA continues to bring interested state
ofcials and legislators offshore to highlight
offshore technology and the environmental
safeguards, conducting two offshore trips
last year. These offshore visits are an invalu-
able opportunity for educating policymakers
and NOIA appreciates the efforts of member
companies that help make the trips possible.
Moving forward
States can no longer afford to ignore the
signicant oil and gas resources found be-
neath the waters off our nations coasts. As a
nation, we can no longer afford to keep 85% of
the OCS off-limits to exploration, particularly
when the biggest misconception about our in-
dustry relates to the environment. The fact is
that the technology employed by the offshore
industry is already environmentally safe, a
point which cannot be reiterated enough.
Over the past twenty-ve years, the indus-
try has built an enviable record of safe, clean
operations, as noted in the Oil in the Sea III
study performed by the National Academy
of Sciences. Less than two% of the oil in U.S.
waters comes from drilling and production.
Transporting oil by tanker is four times more
likely to cause a spill, and thirty times more
oil comes from land-based sources.
In fact, between 1985 and 2000, 6.3 Bbbl
of oil were produced in federal offshore
waters. In that time, according to the US
Coast Guard, less than 0.001% spilled a
99.999% record for clean operations.
That safety extends to hurricane conditions
as well. During the 2005 hurricanes, 113 out
of 4,000 total platforms in the Gulf of Mexico
were destroyed. There were no injuries off-
shore and the Coast Guard reported that there
were no signicant spills of oil from offshore
storm damage. As Secretary of the Interior
Dwirk Kempthorne said, Americans dont
judge todays automobile by the 1969 Pinto
and they shouldnt judge todays offshore oil
and gas by the 1969 Santa Barbara oil spill.
I still believe that working at the state
and local levels will help cultivate a push for
greater OCS access, which will in turn bring
greater pressure to bear on federal lawmak-
ers in Washington.
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NOIA represents
all phases
of offshore energy
T
he National Ocean Industries Association is the only na-
tional trade association representing every segment of
the offshore energy exploration and production industry.
Comprising more than 300 companies, NOIA represents
offshore drillers, producers, supply vessels, air transport,
geophysical survey, shipyards, offshore construction, wind pow-
er, equipment manufacture and supply, telecommunications, -
nanciers, insurers, and much more.
NOIA focuses on two core issues: Securing reliable access to
the nations valuable offshore energy resources in order that they
may be developed, produced and supplied in an environmentally
responsible manner, and improving the economic climate for
NOIA members to conduct business in the United States.
About NOIA
In 1972, industry leaders joined together to form the National
Ocean Industries Association a unique organization interested
in expanding the federal offshore leasing program by promot-
ing the safe and efcient development of Outer Continental Shelf
(OCS) lands.
NOIAs advocacy relies on the guidance of the entire spectrum
of the offshore energy and related industries. Production compa-
nies participate fully in the association and the associations board
is fully representative.
Today, more than three hundred companies have united in sup-
port of reliable access to offshore energy resources, forming a
powerful coalition that achieves positive results in Washington.
Tradition of service
NOIAs staff wields the combined clout of every one of the
member companies as it advocates before Congress and the Ex-
ecutive Branch and inuences industry-related policy decisions.
NOIA facilitates member access to regulatory and legislative pro-
cesses, provides customized advice on policy issues, and works to
favorably impact policy decisions relating to the offshore industry.
NOIA engages the media and the general public in a construc-
tive dialogue on energy issues, showcasing the industrys tech-
nological pioneering and environmental performance.
NOIA members receive the Washington Report, a bi-weekly
newsletter providing a concise, but detailed digest of important is-
sues. Additionally, members receive targeted e-mail updates and
the bi-annual Government Affairs Update.
NOIA hosts the two largest annual gatherings of senior execu-
tives in the offshore oil and gas industry.
NOIAs Legislative Strategy Group facilitates the cooperative develop-
ment of industry-wide strategies for effectively impacting legislative and
regulatory decision-making. NOIA promotes and supports outreach
programs that educate the public about energy issues and help the na-
tion make informed decisions concerning the use of energy, such as the
National Energy Education Development (NEED) Project.
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The rst step toward energy independence?
Lawrence Dickerson
Lawrence R. Dickerson
Chairman, National Ocean
President and COO,
Diamond Of fshore Drilling
A
s I watched the Presidents State
of Union address in January, I was
struck that he, like Presidents be-
fore him, was making a promise
for energy independence. In more
than 20 of the last 34 State of Union ad-
dresses since 1973, Presidents have tried
to x the nations energy problems.
In January 1974, President Richard Nixon
said Let this be our national goal: At the end
of the decade, in the year 1980, the United
States will not be dependent on any other
country for the energy we need to provide
our jobs, to heat our homes, and to keep our
transportation going. At that time, the na-
tion was importing 35% of our oil.
Five years later, during President Jimmy
Carters Crisis of Condence Speech he
said, I am tonight setting a clear goal for
the energy policy of the United
States. Beginning this moment,
the nation will never use more for-
eign oil than we did in 1977 nev-
er. Three years after President
Nixons speech, our countrys oil
imports had increased to 47.8%.
In 1991 when President George
H. W. Bush released his National
Energy Strategy, he said, When
our administration developed our
national energy strategy, three principles
guided our policy: reducing our dependence
on foreign oil, protecting our environment,
and promoting economic growth. By 1993,
our oil imports reached 50%.
During President George W. Bushs
State of the Union address in 2003, he said
our third goal is to promote energy inde-
pendence for our country, while dramati-
cally improving the environment. Today,
we import more than 60% of our nations oil.
What steps have we taken as a country to
reduce our dependence on foreign imports
while increasing domestic production?
Are the times changing?
It was once said, Some people make
things happen, some watch while they hap-
pen, and some wonder what happened?
On Dec. 9, 2006 shortly after midnight on
a Saturday, members of the Senate from
both sides of the aisle agreed 79-9 to allow
offshore drilling in 8.3 million acres in the
Gulf of Mexico as part of a tax and trade
package. This historic legislation was the
culmination of years of trying to approve
some sort of offshore legislation that in-
cluded a ve decade battle to give Gulf
Coast states a share of royalty payments
for oil and gas produced off their shore.
During the signing President Bush
said This bill will help expand and diver-
sify energy supplies. The bill will increase
Americas energy security by reducing de-
pendence on foreign sources of energy...
Meeting the needs of our growing econo-
my also requires expanding our domestic
production of oil and natural gas.
If we want to become less depen-
dent on foreign sources of oil and
gas, it is best we nd some here
at home...By developing these
domestic resources in a way that
protects our environment, we will
help address high energy prices,
well protect American jobs, and
well reduce our dependence on
foreign oil.
One month later on Jan. 9, President
Bush for the rst time in 25 years, lifted
the Presidential withdrawal from leasing in
two areas. The rst area was in the North
Aleutian Basin in Alaska and the second in
the 181 South Area in the central Gulf of
Mexico.
The Presidential withdrawals had been
in place since 1990. In addition, Congress
had imposed appropriations moratoria on
oil and gas activities off the coast of Florida
and in the North Aleutian Basin of Alaska.
In 2004, at the urging of the Alaska Sena-
tors, Congress discontinued the yearly
moratorium for the North Aleutian Basin.
In 2006, then-Alaska Governor Frank H.
Murkowski and other local government
and Native Alaskan leaders expressed sup-
port for modifying the Presidential with-
drawal in the North Aleutian Basin.
The Aleutians East Boroughs Admin-
istrator, Bob Juettner, said developing the
offshore oil and gas presents a wonderful
opportunity to bring jobs to the area and
help the economy which has declined be-
cause of competition from foreign sheries
and the growth of farm-raised salmon.
This legislation did not come easy. Earlier
in the 109th Congress, the House of Repre-
sentatives passed a broader bill that would
have allowed oil and gas development along
most of the nations coasts. The House bill
would have repealed the leasing moratoria
while allowing revenue sharing. In addition,
the states would have had the exibility to
decide whether the federal government
would allow energy exploration and devel-
opment out to 100 mi from the coast. The
next 100 mi would have been decided solely
by the federal government.
The Senate considered a series of domes-
tic energy bills, but settled on Senate Bill S
3711 after a compromise was crafted to gain
support from Gulf Coast lawmakers looking
for a share of the revenues and Representa-
tives from Florida that wanted to ban leasing
off their coasts. After the Senate passed their
bill, House negotiators said they would op-
pose this legislation as it would accomplish
little more than what had been proposed by
the Minerals Management Service in the up-
coming Five-year plan. Eventually, the House
agreed to accept the Senate bill, which was
attached to the tax bill.
This legislation would not have been
possible if it wasnt for the numerous trade
groups representing the manufacturing,
chemical, utility and agricultural industries
who advocated for House and Senate lead-
ers to pass an offshore bill. Because of the
high energy prices, particularly for natural
gas, the economy has lost more than 2.8
million jobs since 2000. The chemical in-
dustry alone has lost more than 100,000
jobs and high energy prices resulted in the
closure of 70 chemical facilities in 2004.
And, since 1999, 40% of the U.S. fertil-
izer industry has been shut down or moth-
balled and the industry has been forced to
move production to other countries, creat-
ing a threat to our food security.
How the bill helps
all 50 states
The Gulf of Mexico Energy Security Act
opened up 8.3 million acres and provides
access to an area estimated to contain 1.2
Bbbl of oil and 5.8 tcf of natural gas. This is
enough natural gas to heat and cool nearly
six million homes for 15 years. The bill
calls for opening approximately 2.5 million
acres as soon as practicable, but no later
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Copyright 2007. All rights reserved. Trade Mark of Aker Kvaerner and its subsidiaries.
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than one year of the date of enactment. It
also calls for opening an additional 5.8 mil-
lion acres as soon as practicable.
While the bill prevents oil and gas leas-
ing activities within 125 mi of the state of
Florida until June 30, 2022, it benets con-
servation efforts in all 50 states and com-
pensates coastal states. For the rst time,
37.5% of GoM production royalties will go
to four Gulf Coast states Louisiana, Ala-
bama, Mississippi, and Texas. The revenue
will come initially from the newly opened
areas the 181 Area and the 181 South
Area. Beginning in 2016, revenue shar-
ing will take place for all new leases after
2006 in the Gulf of Mexico planning areas.
Between 2007 and 2055, the estimated rev-
enue for the Gulf Coast States ranges from
$22 billion to $56 billion.
Along the Gulf Coast, this revenue has to
be used for one or more of the following:
Projects for coastal protection, includ-
ing conservation
Coastal restoration, hurricane protec-
tion, and infrastructure directly affect-
ed by coastal wetland losses
Mitigation of damage to sh, wildlife,
or natural resources
Implementation of a federally approved
marine, coastal, or comprehensive con-
servation management plan
Mitigation of the impact of OCS activi-
ties through the funding of onshore
infrastructure projects
Planning assistance and admin. Costs
of complying with this section
In addition to the Gulf Coast States rev-
enue sharing, the legislation also steers 12.5
percent of the royalties to the State Land and
Water Conservation Fund (LWCF) to be
shared by all 50 states and to be used specif-
ically for recreational projects. Since 1965,
more than $3.7 billion has been collected
from offshore revenue which has funded
recreational projects throughout the United
States and its territories. Over the years,
California has received more than $274 mil-
lion from the State LWCF, New York $228
million, Illinois $152 million, Florida $123
million and Massachusetts $92 million.
The remaining 50% of the revenues will
go to the U.S. Treasury.
What to expect
While much of the attention is currently
being paid to the Gulf of Mexico Energy
Security Act, it is important to recall that
most practical, operational decisions over
the scope of offshore leasing are made by
the Department of the Interiors Miner-
als Management Service (MMS). MMS
is working through the nal stages of
preparation of its 2007-2012 5-Year Leasing
Program, and proponents of expanded off-
shore access have weighed in heavily dur-
ing each of the public comment periods.
Overall, MMS received more than 73,000
total comments. While the anti-drilling forces
submitted 18,365, over 54,000 public com-
ments favoring more access were received
by MMS.
Offshore energy companies, their indi-
vidual employees and retirees, and coali-
tions of end-use consumers of energy from
the manufacturing and agricultural indus-
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tries were a vital part of these numbers.
As a result, the evolving 5-Year Program
has been developed using a more compre-
hensive approach than in past efforts, and
currently proposes to include new areas
outside the Central and Western Gulf of
Mexico for the rst time in decades. The
proposed nal program and the nal envi-
ronmental impact statement for the MMS
ve-year plan are expected to be released
this spring, with the nal program going
into effect on July 1, 2007.
The MMS proposed nal program would
lease the following areas: the Central and
Western Gulf of Mexico; a portion of the
original 181 area; the 181 south area; the
Beaufort Sea; Cook Inlet; the North Aleu-
tian Basin nearly 5.6 million acres, and;
a small triangle of acreage off the coast
of Virginia. That being said, the proposal
would still only offer for lease 12% of the
OCS. We must continue to ght for that
12% now and come back later to seek ac-
cess to the remaining 88%.
The politics of energy
Regardless of the political arena within
which it is debated, the overall story that in-
dustry must continue to tell to policymakers
remains the same. That story begins with a
basic review of the fundamentals: supply and
demand. There can be no question that de-
mand is on the rise, both in the United States
and globally. At current projections of world
GDP growth, this global demand for energy
may increase by over 50% by 2025, while the
United States demand could increase over
30% over the same time period. Develop-
ing nations will likewise require increasing
amounts of energy as their economies mod-
ernize and raise the quality of life for their
populations.
The strategic question, therefore, is: Where
will this energy come from?
Some will come from renewable sources
and we should continue to push for devel-
opment on this front. But widespread use
of sources such as wind, solar, and biomass
is still far off, and will likely only serve to
replace a small percentage of demand over
the next two decades.
Hydropower in the United States will
probably continue to account for about 5%
of power generation, but lacks opportuni-
ties for major expansion. Nuclear power,
which currently supplies approximately
20% of U.S. power generation capacity, is
a potential source of new energy supplies,
but negative public perceptions could im-
pede sufcient expansion.
Biofuels have been hailed as the new
energy source. According to the Univer-
sity of Minnesota, biofuels, such as ethanol
made from corn, do have the potential to
provide the nation with cleaner burning
fuel. But because of how corn ethanol
is made, only about 20% of each gallon is
new energy. That is because it takes a lot
of old fossil energy to make it: diesel to
run tractors, natural gas to make fertilizer
and, of course, fuel to run the reneries
that convert corn to ethanol.
It is vital to note that oil and gas supply
will become more and more challenged due
to increasing decline rates. Energy compa-
nies are nding smaller reserves than in
the past the last eld capable of produc-
ing in excess of 1 million bbl of oil per day
was discovered back in 1976 and current
major elds will inexorably decline.
Whether within the federal agencies,
among state leaders, or in current or fu-
ture Congressional sessions, industry and
energy-consumer coalitions must continue
to vigorously make the case for expanded
offshore access. The resources are there,
the need is great, and the offshore energy
industry has the technology and experi-
ence to bring it safely to market.
Quality editorial content for over 50 years
Top readership among OTC attendees, time and again*
Read and respected by industry leaders, year after year
Be a part of this tradition. Contact Oshore for ad placement. www.oshore-mag.com
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Our Tradition Runs Deep.
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Service: 202-962-4791
Email: sales@api.org
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National Of cers:
Chairman
Lawrence R. Dickerson
President & COO
Houston, Texas
Vice Chairman
Dear E. Taylor
Chairman, President & CEO
Tidewater, Inc.
New Orleans, La. & Houston, Texas
President
Tom Fry
NOIA
Washington, DC
Immediate Past Chairman
Christopher T. Seaver
President & CEO
Hydril Company LP
Houston, Texas
Secretary
John D. Rusty Meador
President & CEO
Gulf Publishing Co.
Houston, Texas
Treasurer
W. Allen Parks
Partner
Parks Paton Hoep & Brown
Houston, Texas

Board of Directors and
*Executive Committee
Chairman
Lawrence R. Dickerson*
President & COO
Houston, Texas
Vice Chairman
Dean E. Taylor*
Chairman, President, CEO
Tidewater Inc.
Peter S. Atkinson*
President
Global Industries, Ltd.
Houston, Texas
Annell Bay
Vice President, Exploration & Production
Shell E & P Co.
Houston, Texas
W. A. Bisso, III
Chairman & CEO
Bisso Marine Co.
George Boyadjief f*
Chairman Emeritus
Varco International, Inc.
Villa Park, California
Alan K. Breaud
Partner
Breaud & Meyers, APLC
Lafayette, Louisiana
Thomas Chance
President & CEO
C&C Technologies
William E. Chiles
President & CEO
Bristow, Inc.
Houston, Texas
William K. Coates
President, Oileld Services,
North America
Schlumberger
T. Jay Collins*
President & CEO
Oceaneering International, Inc.
Houston, Texas
S. I. Sig Cornelius
President, Lower 48
ConocoPhillips Co.
Houston, Texas
Hank Danos
President
Danos & Curole Marine
Contractors, Inc.
Larose, Louisiana
Carl A. Davis*
President
Davis-Lynch, Inc.
Houston, Texas
Robert Deason
President & CEO
J. Ray McDermott
Houston, Texas
W. Byron Dunn*
President & CEO
Lone Star Steel Co.
Dallas, Texas
Cornelius Dupre
Chairman of the Board
Dupre Interests
Houston, Texas
Sheldon R. Erikson
Cameron
Houston, Texas
William Flores
Vice President, Deepwater
W&T Of fshore
Houston, Texas
Charles Fabrikant
Chairman & CEO
SEACOR Holdings, Inc.
New York, New York
Christopher Gaut*
Executive Vice President & CFO
Halliburton
Houston, Texas
Al A. Gonsoulin
Chairman
PHI, Inc.
Terrence E. Hall
Chairman & CEO
Superior Energy Services
Harvey, Louisiana
Kirk Headley
President
American Pollution Control
New Iberia, Louisiana
Darrell Hollek
Vice President, Gulf of Mexico Opera-
tions
Anadarko Petroleum
Houston, Texas
Todd Hornbeck
Hornbeck Of fshore Services, LLC
Covington, Louisiana
Howard Hughes
President & CEO
Oil States Industries
Arlington, Texas
Einar Jensen
Vice President, Development
Statoil Gulf of Mexico
Houston, Texas
Joe E. Kasparek
President
Fugro, Inc.
Houston, Texas
Paul L. Kelly
Consultant
Rowan Companies
Houston, Texas
Kenny Lang*
Vice President, Gulf of Mexico
Deepwater Production
BP
Houston, Texas
Robert L. Long*
President & CEO
Transocean, Inc.
Houston, Texas
Jon A. Marshall*
President & CEO
GlobalSantaFe Corp.
Houston, Texas
James R. Massey
Vice President United States
ExxonMobil Production Co.
Houston, Texas
Melody B. Meyer*
Vice President, Gulf of Mexico
Chevron Corp.
New Orleans, Louisiana
Len Paton
Partner
Parks Paton Hoep & Brown
Houston, Texas
Douglas B. Otten*
President
Nexen Petroleum USA
Dallas, Texas
Robert L. Potter
Vice President
FMC Technologies
Houston, Texas
Duane C. Radtke
President & CEO
Dominion Exploration & Production, Inc.
Houston, Texas
Christopher T. Seaver*
President & CEO
Hydril Co. LP
Houston, Texas
David H. Welch*
President & CEO
Stone Energy Corporation
William Van Wie
Vice President & General Manager
Devon Energy Corp.
Houston, Texas
Jim Wicklund
Partner, Chief Investment Of cer
Spinnerhawk
Dallas, Texas
NOIA Offciers, Board of Directors
and Executive Committee
*
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________________________________
NOIA Membership
AAI Corporation, Wallops Island, VA
Acteon Group Limited, United Kingdom
Adams & Reese L.L.P., New Orleans, LA
Air Logistics, L.L.C., New Orleans, LA
Aker Kvaerner Group, Houston, TX
Aker Kvaerner, Deepwater Business Unit, Houston, TX
Aker Kvaerner, LNG Business Unit, Houston, TX
Aker Kvaerner Subsea Inc., Houston, TX
Aker Marine Contractors, Inc., Houston, TX
Alaska Support Industry Alliance, Anchorage
Allis Chalmers Energy, Inc., Morgan City, LA
AMEC Paragon, Inc., Houston, TX
Amerada Hess Corporation, Houston, TX
AmerCable Incorporated, L.L.C., Houston, TX
American Petroleum Institute, Washington, DC
American Pollution Control Inc. (AMPOL), New Iberia, LA
Anadarko Petroleum Corporation, Houston, TX
Apache Corporation, Houston, TX
Applied Drilling Technology Inc., Houston, TX
Arena Energy, The Woodlands, TX
Aries Marine Corporation, Lafayette, LA
Association of Diving Contractors, Houston, TX
Atlantia Offshore Ltd., Houston, TX
ATP Oil & Gas Corporation, Houston, TX
Atwood Oceanics, Inc., Houston, TX
Azura Energy Systems, Houston TX
Baker Atlas, Houston, TX
Baker Hughes Drilling Fluids, Houston, TX
Baker Hughes Incorporated, Houston, TX
Baker Oil Tools, Houston, TX
Baker Petrolite, Houston, TX
Banc of America Securities LLC, Houston, TX
Bassoe Offshore (USA), Houston, TX
Bear Stearns & Co., Inc., Dallas, TX
Bell Helicopter Textron, Fort Worth, TX
Bender Shipbuilding & Repair Co. Inc., Mobile, AL
Beveridge & Diamond, P.C., Washington, DC
BHPBilliton Petroleum (Americas) Inc.
Bisso Marine Company, Inc., New Orleans, LA
BJ Process & Pipeline Services, Houston, TX
BJ Services Company, U.S.A., Houston, TX and Santa Fe Springs, CA
BJ Services Company (MEXICANA), Houston, TX
BJ Services Company (NOWSCO), Houston, TX
Bollinger Shipyards Inc., Lockport, LA
BP, Houston, TX
Breaud & Meyers, P.L.C., Lafayette, LA
Bristow Inc. (formerly Offshore Logistics), Houston, Texas
C&C Technologies Inc., Lafayette, LA
Callon Petroleum Company, Natchez, MS
Otto Candies, LLC, Des Allemands, LA
Cape Wind Associates LLC, Boston, MA
CapRock Communications, Houston, TX
Challenger Minerals Inc., Houston, TX
Chevron Corporation, New Orleans, LA
Chempro International LLC, Spring, TX
Chickasaw Distributors Inc., Houston, TX
Citigroup Global Markets, Inc., New York, NY
Coastal Drilling Company, L.L.C., Corpus Christi, TX
Cobalt International LLC, Houston, TX
Compressco Inc., The Woodlands, TX
ConocoPhillips, Houston, TX
Contango Oil & Gas, Houston, TX
Cameron Corporation, Houston, TX
Cameron Corporation, Cameron Division, Houston, TX
Cameron Valves, Houston, TX
Nelson Crews Company, Houston, TX
Danos & Curole Marine Contractors Inc., Larose, LA
Davis-Lynch Inc., Houston, TX
Deep Gulf Energy, Houston, TX
Delmar Systems, Inc., Broussard, LA
Devon Energy Corporation, Oklahoma City, OK
Diamond Offshore Drilling, Inc., Houston, TX
Dockwise (U.S.A.) Inc., Houston, TX
Dolphin Compactors & Equipment, Lafayette, LA
Dominion Exploration & Production, Houston, TX
Drilling & Production Resources, Inc., Houston, TX
Dril-Quip Inc., Houston, TX
Dupre Interests, Houston, TX
Dynamic Industries, Inc., Lafayette, LA
EDG Inc., Houston, TX
Edison Chouest Offshore, Galliano, LA
El Paso Production Company, Houston, TX
Energy Partners, Ltd., New Orleans, LA
Energy Valley, Houston, TX
Energy XXI, Houston, TX
ENSCO International Incorporated, Dallas, TX
ENSCO Offshore Company, Broussard, LA
Enterprise Products, Houston, TX
Epic Marine, LLC, Harvey, LA
ERA Aviation Inc., Anchorage, AK
Erskine Energy, LLC, Houston, TX
ExPert E & P Consultants, LLC, Covington, LA
ExPert Oil & Gas, LLC, Covington, LA
ExPert Riser Solutions, LLC, Covington, LA
ExxonMobil Development Company, Houston, TX
ExxonMobil Production Company, Houston, TX
ExxonMobil Exploration Company, Houston, TX
Faireld Industries Inc., Houston, TX
Fairways Offshore Exploration, Inc., Houston, TX
FMC Technologies, Houston, TX
Foster Marketing Communications, Lafayette, LA
Fowler Rodriguez, New Orleans, LA
Friede & Goldman, Houston, TX
Fugro Chance, Inc., Houston, TX and Lafayette, LA
Fugro Inc., Houston, TX
Fugro Geoservices, Houston, TX
Fugro Global Environmental and Ocean Sciences, Inc., Houston, TX
Fugro McClelland Marine Geosciences Inc., Houston, TX
Galveston-Houston Company, Houston, TX
Galvin, Ray E., Houston, TX
Global Divers & Contractors Inc., Lafayette, LA
Global Industries Ltd., Houston, TX
GlobalSantaFe Corporation, Houston, TX
Global Movible Offshore Inc., Amelia, LA
Global Pipelines PLUS Inc., Lafayette, LA
Gordon, Arata, McCollam, Duplantis & Eagan, LLP,
New Orleans, LA
Grant Prideco Inc., Houston, TX
Grasso Production Management, Inc., Houston, TX
Gulf Marine Fabricators, Aransas Pass, TX
Gulf Publishing Company, Houston, TX
Halliburton, Houston, TX
Hart Energy Publishing LP, Houston, TX
Heerema Marine Contractors U.S. Inc., Houston, TX
Helis Oil & Gas Co. LLC, New Orleans, LA
Hercules Offshore, Houston, TX
Hercules Drilling Co., Lafayette, LA
Hercules Lifeboat Co., Lafayette, LA
Hibernia South Coast Capital, New Orleans, LA
Holland & Davis, LLC, Houston, TX
Hornbeck Offshore Services, Inc., Covington, LA
Howrey LLC, Washington, DC
Hydril Company, Houston, TX
Hydro Gulf of Mexico LLC, Houston, TX
Iberia Marine Service, New Iberia, LA
INTEC Engineering, Houston, TX
Integrated Production Systems, Inc., Houston, TX
Inteq., Houston, TX
International Association of Drilling Contractors, Houston, TX
International Association of Geophysical Contractors, Houston, TX
International Offshore Services, Houston, TX
International Paint, Inc., Houston, TX
Island Operating Company, Inc., Houston, TX
JDR Cable Systems (Holdings), Houston, TX
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Jefferies & Company, New York, NY and Houston, TX
Johnson Rice & Co., LLC, New Orleans, LA
Jones Day, Dallas, TX and Washington, DC
Jones, Walker, Waechter, Poitevent, Carrere & Denegre L.L.P.,
New Orleans, LA
Kelly, Hugh J., Mandeville, LA
Kennedy Engine Company, Biloxi, MS
Key Energy Services, Inc., Houston, TX
Kiewit Offshore Services, Ltd., Ingleside, TX
Knox Insurance Group LLC, Lafayette, LA
Laborde Marine L.L.C., New Orleans, LA
Laborde Marine Lifts, Inc., New Orleans, LA
Landry Harris & Co., Lafayette, LA
LeTourneau Inc., Longview, TX
Lime Rock Partners, Houston, TX
Lone Star Steel Company, Dallas, TX
Louisiana Mid-Continent Oil & Gas Association, Baton Rouge, LA
Marathon Oil Company, Houston, TX
Marine Spill Response Corporation (MSRC), Herndon, VA
Maritech Resources Inc., The Woodlands, TX
Maritime Capitol Solutions LLC , Houston, TX
Marlin Energy, L.L.C., Lafayette, LA
McDermott International, New Orleans, LA
J. Ray McDermott, S.A., Houston, TX
McMoran Oil & Gas LLC, New Orleans, LA
MedcoEnergi US, Lafayette, LA
Merrill Lynch, Houston, TX
M-I , SWACO, Houston, TX
Montco Offshore, Inc., Houston, TX
J.P. Morgan, New York, NY and Dallas, TX
Morgan Keegan & Company, Memphis, TN
Muller Energy Advisors, Houston, TX
Murphy Exploration & Production Company, New Orleans, LA
Mustang Engineering, LP, Houston, TX
Natco Group, Inc., Houston, TX
National Oilwell Varco, Houston, TX
NavCom Technology, Inc., Redondo Beach, CA
New Offshore, Inc., Morgan City, LA
Neweld Exploration Company, Houston, TX
Newpark Drilling Fluids, Houston, TX
Newpark Environmental Services, Lafayette, LA
Newpark Resources, Metairie, LA
Nexen Petroleum USA Inc., Dallas, TX
Noble Corporation, Houston, TX
Noble Energy, Inc., Houston, TX
Northstar GOM, LLC, Houston, TX
Oceanic Fleet, Inc., Boutte, LA
Oceaneering International Inc., Houston, TX
Oceanweather Inc., Cos Cob, OK
Offshore Energy Services, Inc., Broussard, LA
Offshore Engineer, Houston, TX
Offshore Magazine-Pennwell Publishing, Houston, TX
Offshore Marine Service Association, Harahan, LA
Oil States Industries, Inc., Arlington, TX
OMI Corporation, Stamford, CT
OMSCO, Houston, TX
Pantheon Chemical, Phoenix, AZ
Paragon Advising, LLC., Houston, TX
Parker Drilling Company, Houston, TX
Parks Paton Hoep & Brown, Houston, TX
Petris Technology, Inc., Houston, TX
Petrocom LLC, Houston, TX
Petro-Hunt L.L.C., Dallas, TX
PHI Inc., Harahan, LA
PetroQuest Energy, Lafayette, LA
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NOIA Membership
Petsec Energy Inc., Lafayette, LA
PFC Energy, Washington, DC
Pioneer Natural Resources USA, Inc., Irving, TX
Phelps Dunbar LLP, New Orleans, LA
Plains Exploration & Production Company, Houston, TX
Pogo Producing Company, Houston, TX
Premiere Inc., New Iberia, LA
PriceWaterhouseCoopers, New Orleans, LA
Pride International, Houston, TX
Pritchard Capital Partners, LLC, Covington, LA
RBC Capital Markets, Houston, TX
Rigdon Marine Corporation, New Orleans, LA
Rooster Petroleum LLC, Irving, TX
Rowan Companies, Inc., Houston, TX
Rowan Electric, Inc. D/B/A/ Oileld Electric Marine, Houston, TX
Santos USA Corp., Houston, TX
SCF Partners, Houston, TX
Schlumberger, New Orleans, LA, Houston, TX
Scorpion Offshore, Houston, TX
SEACOR Holdings Inc., New York, NY
Sea Technology Compass Publications Inc., Arlington, VA
William A. Sears, Montgomery, TX
SEMPCheck Services, Houston, TX
Shell Exploration & Production Company, Houston, TX
Simmons & Company International, Houston, TX
Smith International Inc., Houston, TX
Smith Wilson Supply, Houston, TX
Randy Smith Training Solutions, Lafayette, LA
Sofec, Houston, TX
Southern States Offshore, Inc., Houston, TX
Statoil Gulf of Mexico LLC, Houston, TX
Stewart & Stevenson Services, Houston, TX
Stone Energy Corporation, Lafayette, LA
Stress Engineering Services, Inc., Houston, TX
SubSea MudLift Drilling Company, LLC, Houston, TX
Subsea 7, Houston, TX
Carroll W. Suggs, New Orleans, LA
Superior Energy Services, Inc., Harvey, LA
T-3 Energy Services, Houston, TX
Taylor Energy Company, New Orleans, LA
Technip Offshore Inc., Houston, TX
Teledyne RD Instruments, San Diego, CA & Annapolis, MD
Tesco Corporation, Houston, TX
TETRA Technologies Inc., The Woodlands, TX
TGSNOPEC Geophysical Company, Houston, TX
Tidewater Inc., New Orleans, LA
TODCO, Houston, TX
Transocean, Inc., Houston, TX
Triton Engineering Services Company, Houston, TX
UBS Investment Bank, Dallas, TX
Underwriters Indemnity, Houston, TX
Upstream Engineering, LLC, Houston, TX
Universal Compression, Inc., Houston, TX
Vallourec & Mannesmann Tubes Corporation, Houston, TX
VAM-PTS, Houston, TX
V & M Star, Houston, TX
Venture Transport Logistics, LLC, Houston, TX
Versabar, Inc., Belle Chasse, LA
Vetco Gray, Inc., Houston, TX
Vinson & Elkins, Houston, TX
W & T Offshore, Houston, TX
Walter Oil & Gas Corporation, Houston, TX
Weatherford International, Houston, TX
Wells Fargo Energy Group, Houston, TX
Wells Fargo HSBC, Trademark, NA, Houston, TX
WesternGeco, Houston, TX
Whitney National Bank, New Orleans, LA
Woodside Energy (USA) Inc., Houston, TX
Zurich Global Energy, Houston, TX
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BLOCK 3549
AUBERT & DUVAL
COURBIS
EIFFEL
GEP
IFP
LE LAS
PONTICELLI
RESSORTS SPRINGS
SORCOM
VINCI TECHNOLOGIES
BLOCK 3365
AUTEXIER
CYBERNETIX
DOUCE HYDRO
ECA
GROUPE BARDOT
MECANIC-SUD INDUSTRIE
SEDI FIBRES OPTIQUES
SRI
VEOLIA SERVICES
the French Pavi l i on
Welcome to
OTC 2007
Houston, April 30
th
-May 3
rd
, 2007
www.gep-france.com
BLOCK 3563
BUREAU VERITAS
CCI NORD PAS DE CALAIS
DORIS ENGINEERING
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Buoyant French contractors open
to global business opportunities
Cooperation improves results
F
rances upstream/downstream contrac-
tors and suppliers are in general thriv-
ing and keen to penetrate new markets.
Offshore discussed prospects with GEP
chairman Dominique Michel, also vice-
president of drilling engineering contractor
Dietswell, and with Jean Ropers, a former To-
tal executive and president of the government-
funded R&D body, CEPM.
Of fshore: Who are the current manage-
ment team at GEP?
Michel: We have younger people in place
than before on our steering committee, from
a variety of companies. Vice-presidents Rob-
ert Brunck, Dominique Bouvier, and Antoine
Serceau are respectively the chairman of
CGG Veritas, the managing director of En-
trepose Contracting, and VP for projects at
Total E&P. Our treasurer, Jean Chevallier, is
also VP for R&D at Schlumberger in Paris.
General manager Claude Berbigier works
full time for GEP. We also employ various
consultants, including Claude Bouty, who is
fostering links with trade groups and compa-
nies in Southeast Asia and with other region-
al oil and gas associations in southeast and
northwest France. Among these, Pole Ma-
rine, representing marine/defense spinoff
companies in the Brest/Nantes/St Nazaire
area, will be exhibiting once again at GEPs
booth at OTC.
Michel Lempire is responsible for devel-
oping relations with the European Commu-
nity. We also recently appointed Vladimir
Jivouchkine to develop contacts in Russia
he has good links already with Gazprom.
Offshore: What other associations does GEP
work closely with in France and elsewhere?
Michel: We cooperate in particular with
counterpart associations in Europe such as
AFTP, Eurogif, and Subsea UK, but also with
the International Chamber of Commerce in
Paris, the Franco-Arabian Bank, UB France,
and many others.
Of fshore: Is the membership still growing
are you continuing to attract companies
from fringe engineering disciplines?
Michel: During the past few months, a fur-
ther eight companies have joined,
bringing the total membership to
around 150. There has been grow-
ing interest in particular from com-
panies in the elds of security and
medical assistance.
Of fshore: What kind of benets
does GEP membership provide?
Michel: We organize a club
meeting every month where we
try to invite companies who are
not yet members to hear about
GEP. Recently we have also invited clusters
of companies from Venezuela and Saudi Ara-
bia to attend.
Our members are interested in network-
ing possibilities, exchanging ideas. Regular-
ly, we receive delegations from national oil
companies (NOCs), who are trying to nd
service companies to work with. We also
take our own groups on missions overseas,
mainly to visit the NOCs.
Of fshore: Which overseas trade shows is
GEP attending this year, and which are most
popular with the membership?
Michel: A lot of our members have re-
quested us to take stands at more shows. We
select the ones where we are likely to attract
more support. A new event for us was a tech-
nical service exhibition last month in Beijing
for oil and gas products where CNOOC was
in attendance.
So far this year, we have taken groups to ex-
hibitions in Khartoum, Tripoli, Barcelona, and
Teheran. After OTC, we will also be at MIOGE
in Moscow, Offshore Europe in Aberdeen,
and DOT in Stavanger.

Of fshore: Are you conducting any special
surveys or projects on behalf of your mem-
bers?
Michel: Yes. One involves helping our mem-
ber companies attract nance for exports and
for R&D. We have also commissioned new sur-
veys concerning standardization and biofuels.
These campaigns are funded entirely by GEP.
Of fshore: What are your views concerning
geopolitical developments in Iran, Venezu-
ela, Russia, and elsewhere? Are
there signs of a negative impact
on the activities of Total, Gaz De
France, and the French contrac-
tors and suppliers?
Ropers: Our members have to
work with the NOCs and other
groups in these countries. What
we are trying to promote is the
technical competence of our com-
panies.
Michel: When we take trade mis-
sions abroad, we try to ignore the
fact that we are French, focusing instead on
promoting the best technologies. We made an
initial approach in Venezuela, a country where
it can be difcult to make high-level contacts.
That led to a Venezuelan delegation approach-
ing us at OTC last year concerning our initial
offer of assistance their government wants
to develop their offshore resources where
possible, whether in 80 m or in deep waters,
where they have plenty of gas. So we took a
mission of seven companies to Caracas to
meet representatives from PdVSA, and GEPs
counterpart there, Camera Petrolera.
Ropers: Local content is becoming more
and more mandatory. Total has been active
for a long while off Indonesia, Angola, and
Nigeria, for instance, where understandably,
there is a need now for a high local participa-
tion in all forms of activity. The French com-
panies are very well equipped to respond to
that situation, and they are accustomed to
working with supposedly difcult countries
and NOCs.
Of fshore: What shape would you say Total
is in, compared with the other four superma-
jors?
Ropers: For me, there is no doubt that To-
tal compares very favorably with all of them,
probably because it has gained a huge and
valuable experience in non-OCDE or devel-
oping countries around the whole world. It
Jeremy Beckman
Editor, Europe

FRANCE
GEP president
Dominique Michel.
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FRANCE
is also to be noted that Total, like ExxonMo-
bil, has never followed the numerous suc-
cessive management fashions that have so
much disturbed the independent oil world,
technically and human resources wise.
The other majors have experienced vari-
ous costly technical problems around the
world on their large projects.
You always have to consider the environ-
ment you are working in; Total is undoubt-
edly well prepared for the emerging new oil
world.
Of fshore: How signicant is Totals new
onshore carbon capture project in its Lacq
eld in southwest France, and which French
contractors might be involved?
Ropers: Geoservices and CGGVeritas,
possibly. To understand the geology and the
impact on the reservoir, you need to apply
4D analytical techniques. But IFP is basically
the prime mover in this eld, via its acid gas
treatment programs. The Total Sprex project
is also of prime interest in that respect.
Of fshore: How are GEP members faring
with the continuing problem of skills short-
ages? Where are these shortages most
acute, and what can GEP do to help?
Michel: During our annual meeting in
Paris last October, we staged a promotion
with Schlumberger to promote the benets
to students of a career in oil and gas. In fact,
recruitment of engineers is less of an issue
than it was; the problems are more in nd-
ing lower-level technicians, i.e. supervisors
on drilling rigs.
Of fshore: Now that the government has
wound down funding for CEPM, what lies
ahead for oil and gas R&D in France?
Ropers: CEPM has been killed off, but for-
tunately, we have secured an agreement from
Total, IFP, CGGVeritas and others for a replace-
ment system providing private sector money
with the support (non-nancial) of the French
government. This will be administered by a
new organization known as Citeph Programme
(Concertation pour lInnovation Technologique
dans l Exploration et Production des Hydrocar-
bures) starting in January 2008.
Citeph will be an association/club operat-
ing under the auspices of GEP. It will have
a few sponsors and project operators, with
an R&D funding envelope of Eur20 million.
Thats a quite a modest sum, but still higher
than the governments previous loan budget
for CEPM of Eur15 million. Citeph participa-
tion will be open to French oil and gas opera-
tors, service companies, and institutes, but
we also want to invite branches of foreign-
owned companies active in France and even
foreign partners. We expect Citeph to be as
successful as the CEP&M in promoting the
French oil related technologies.
EIFFEL: our name represents more than a hundred years experience
acknowledged worldwide in the field of steel construction and civil engineering
structures.
Offshore: for over forty years our platforms, modules and living quarters
enable Petroleum Companies to explore and exploit petroleum fields on the worlds
seas and oceans in excellent technical conditions of safety and comfort for their
operators.
Quality Safety Environment: these are the essential priorities
of our company every day, based on the expertise, competence,
adaptability and dedication of our teams.
As a genuine quality trademark, Made by Eiffel is the expression
of our commitment and a guarantee of satisfaction for all our clients.
Specific modules
AIOC
48-50, rue de Seine - 92707 Colombes Cedex - France
Tel.: 33 (0)1 47 60 47 00 - Fax: 33(0)1 47 60 47 05
offshore@eiffel.eiffage.fr
www.eiffel.fr
Offshore Division
2
Living quarter
TOTAL
1
E.S. 1250 Fast moving workover rig 3
So far this year, we
have taken groups
to exhibitions in
Khartoum, Tripoli,
Barcelona, and
Teheran. After OTC,
we will also be at
MIOGE in Moscow,
Offshore Europe in
Aberdeen, and DOT
in Stavanger.
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Submarine fiber-optic and DC power
solution for ultra-long tieback
New concept closes technology gap
T
he submarine telecommunications industry has deployed the
core of the global ber grid by setting up full duplex telecom-
munications solutions between continents. These solutions
rely on ber-optic cables, equipped with high reliability sub-
merged repeaters, which are DC-powered through subsea
cable from power feeding equipment in the shore stations.
This eld-proven technology has already demonstrated the feasi-
bility of power and data transport from a dry node to a dry node. It
could also provide the ideal vehicle for power and data transport to
subsea nodes in the offshore sector. Until now, the node for subsea
access has not been available, but current progress on the Neptune
Science observatory is rapidly closing this technology gap.
In October 2005, the University of Victoria in British Columbia
awarded Alcatel-Lucent the contract for the infrastructure of the
Neptune Canada Regional Cable Observatory. This is the rst ap-
plication of the new subsea concept. A number of locations in the
northeast Pacic will be equipped with nodes bringing power and
broadband connection to a range of scientic instruments.
The design is exible and extendable through the use of branch-
ing units; the initial network (800 km [497 mi] and six nodes) could
be extended up to 1,800 km (1,118 mi) and ten nodes. Neptune is
due to go live early in 2008.
The observatory relies on three key systems, that together deliver
the power and data to the subsea node:
A 2.5 Gbit/s optical WDM transmission system from shore to
the node
An IP network, with sufcient precision for seismic monitoring,
linking the subsea routers to shore
A DC power distribution system.
All these components have been proven following rigorous sys-
tem integration tests. A major achievement has been the develop-
ment of the high reliability DC/DC converter, which steps down the
10 kV carried by the cable to 400 V.
The offshore industry has to cope increasingly with new eld de-
velopments in greater water depths, farther offshore, and in more
extreme environments. The current high market demand for pro-
duction increases the pressure for quicker developments and en-
hanced reservoir recovery.
There is a growing need, therefore, to implement real-time re-
mote offshore connectivity so that novel exploration and production
schemes can be adopted for these new elds. In particular, all-elec-
tric control systems are ideal for remote control of subsea wells in
hostile environments when no surface facilities can easily or eco-
nomically be set up above the eld. So there is a need for longer
subsea tiebacks providing power and communications.
The technology demonstrated for Neptune should prove attractive
for long subsea tiebacks. It offers exible architectures that enable
expandable, high reliability networks and intrinsic compatibility with
e-eld solutions relying on IP connectivity. Also, its capability of deliver-
ing 10 kW and 1 GigE is already available for ultra-long step-outs.
Marc Fullenbaum
Antoine Lecroart
Neville Hazell
Alcatel-Lucent

FRANCE
Redundant subsea confguration.
DC/DC converter prototype.
Land station A Land station B
To management centers
CDU 1 CDU 3
A Cable B Cable Subsea cable network
CDU 2
400V COMMS
POWER COMMS MANAGEMENT POWER COMMS MANAGEMENT
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world leader in premium connections
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Cryogenic floating flexibles
widen options for LNG transfer
A
group of oil and gas majors is support-
ing the development of cryogenic oat-
ing exible pipelines for LNG transfer
operations.
The venture is a direct follow-on from the qualication of
such exibles in aerial architectures through the Amplitude-LNG
Loading System joint industry project (JIP).
The possibility of a marine terminal for LNG transfer, similar to those
existing for crude oil, opens new scenarios for the industry at both the
liquefaction and re-gasication ends of the chain. The marine transfer
facilities can be located outside the usual port or river facilities and
linked to the coast using long-length, cryogenic pipe-in-pipes, devel-
oped and qualied recently by Technip.
Alternatively, for isolated gas elds with on-site liquefaction facili-
ties (LNG-FPSO), the oating exibles could be used to connect the
FPSO to the mid-ship manifolds of the LNG carriers.
The oating exibles are being developed on a step-by-step basis,
which started with the IFP/Principia DeepLines program extension
to analyze the behavior of exibles when oating on the sea surface.
Modeling of oating pipes must take into account the change of buoy-
ancy for surface-piercing elements. To do so, the immersed volume
must be derived at all times from the interrelat-
ing impact of the sea surface taking into account
wave elevation and the actual pipe geometry.
The initial results from the program were
positive, and within the framework of the Float-
ing Flexible JIP again supported by various
majors. A second phase started in 2005 that included model basin
trials (at 1/10th scale) in the Oceanide basin in La Seyne, southern
France.
To date, 150 tests have been performed covering a wide range
of congurations. Initially, the focus was on current-only tests to
calibrate the drag Cd and inertial Cm coefcients to be incorporated
into the models. Then, comparisons were made with irregular wave
tests to validate the numerical results for both extreme and fatigue
conditions. The tests revealed a good correlation between statistics
for forces and vertical motions for both extreme and fatigue condi-
tions.
The nal step of the JIP involves building and testing in open-sea
conditions a oating exible prototype (8-in. or 16-in. I., 50 m long). The
prototype will be fully instrumented to record motions, bending radius,
tension and number of cycles, and a data recording buoy will be an-
chored alongside to record actual oceano-meteo data. The latter will be
input into the DeepLines program and the results compared with the
actual results from the monitoring system in the exible.
The objective is to derive a model that can predict the lifetime of such
exibles in a set of given marine conditions. Micro leaks through the
inner stainless steel bellows will be the determining factor. The use of
multi-layer bellows gives an extended fatigue life for exibles in con-
stant motion on the sea-surface.
For more information contact Philippe.lebuhan@principia.fr.
Philippe Le Buhan
Principia

FRANCE
In brief...
SEDI Fibers Optique has introduced
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for single mode bers; and polarization maintaining FC for PM bers.
The company also offers customized products with no ber discon-
tinuity. All products are tested in house for hermetic properties with
pressure values ranging from a few millibars to 1,000 bar.
Institut de Soudure, Frances national welding institute, has estab-
lished a new welding center at the Qatar Science & Technology Park.
This is providing research, training and export services to assist forth-
coming oil and gas projects in the region the costs of welding and
metallurgy are a major concern.
The institute has been active in Qatar since 2003, supervising weld-
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Qatar and the UAE. With over $133 billion of projects planned for Qatar
over the next ve years, the institute plans to establish its international
headquarters for oil and gas research in the country.
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Construction specialists seeking
further alliance opportunities
O
ffshore mechanical groups Ponticelli
and Eiffel are planning joint bids for
several new West Africa projects.
This follows their recent collabora-
tion on Totals Rosa development in
Angolan block 17.
Ponticelli was awarded the construction
contract at the end of 2004. The contract
included fabrication of six modules, weigh-
ing 5,000 metric tons (5,511 tons) in total,
and their subsequent hookup on the Girassol
FPSO to receive production from the Rosa
subsea tiebacks. The hookup itself required
the fabrication and installation of 1,000 ad-
ditional tonnes of structures to reinforce the
FPSO deck and piping for interconnection
of the modules within the existing topsides
network.
Eiffel was subcontracted for
four of the modules (total weight
4,000 metric tons 4,409 tons) at
its yard in Fos sur Mer (south-
ern France), and Sonamet was
subcontracted for the other two
(total weight 1,000 metric tons
1,110 tons) at its yard in Lo-
bito, Angola. Ponticellis Angolan subsidiary
Pontumo handled fabrication of the hook-up
components in Luanda. All consignments
were delivered by the end of 2006.
For Ponticelli, the offshore works in prep-
aration for the installation of the modules,
followed by hookup, was by far the most
demanding aspect of the project. With pro-
duction from Girassol continuing during the
construction program, all activities on board
the vessel were conducted under simops
(simultaneous operations i.e. construction
works and production) conditions.
These conditions required a high level
of preparation and scheduling, maximiza-
tion of the off-site works, implementation of
strict work permit procedures, and the use
of specic tools and equipment to operate
in classied areas. The experience gained
by Ponticelli from numerous refurbishment
campaigns at reneries and petrochemical
plants in Europe proved benecial in this
campaign, which is due to be completed
mid- 2007 offshore Angola.
Rosa is by far Ponticellis largest project
to date, with the offshore part occupying
a workforce of 650 at peak, and a total of
nearly 2 million man-hours. The companys
previous high-prole references include six
months of hookup and platform re-vamp-
ing for Chevron Angolas Sanha condensate
project; and eight and a half months hook-up
work relating to six modules for the NKossa
development offshore Congo.
According to Jean-Christophe Garapin of
Ponticellis Commercial Department, the
companys experience in the offshore sector
dates back to the 1970s, when it was more a
construction specialist. Its rst project was
Elfs Ashtart offshore Tunisia. Until the mid-
1990s, its yard in Bordeaux (no longer in use
for offshore purposes today) produced nu-
merous topsides modules, mainly for elds
in the North Sea, Mediterranean, and West
Africa. Laterly, the companys oil and gas
focus has been almost exclusively on Libya,
Venezuela, and West Africa, served increas-
ingly by local operations.
In 1997, it established Ponticelli Nigeria in
Port Harcourt, which today employs nearly
200 staff. Its main specialties are mechanical
works, including structural steel and pipe-
work fabrication, equipment maintenance,
and hookup.
Recently, this subsidiary performed a se-
ries of offshore work programs for Totals
Amenam Interim Water Injection project.
This included fabrication/erection of piping
spools; fabrication/installation of structural
extension for the AMP1 platform; fabrication
of hang-off structure with boat landing to
AMP2; ange change of 18-in. riser on AMP2
jacket; and fabrication of subsea clamps.
In 2005 Portumo Sucursal Angola was
established as a similar service center in
response to Sonangols demands for indig-
enous operations.
Ofon partnership
Prior to Rosa, Ponticelli worked with Ei-
ffel on the Cobo and Bruce projects. Recent-
ly, the two companies submitted a joint bid
for the main deck of phase 2 of Totals Ofon

FRANCE
(Right) Integration of the
methanol injection module
on the Girassol FPSO deck.
(Below) Rosa module: fabrication
in progress at Fos sur Mer.
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FRANCE
development off Nigeria, which calls for a
new 12,500-metric-ton (13,778-ton) produc-
tion platform, three wellhead installations,
and one living quarter module.
The partners are pitching for the pro-
duction platform in association with Doris
Engineering also in a rival bid with Hyun-
dai. According to Eiffels Offshore Division
Director Arnaud de Villepin, We intend to
carry out the engineering in France, but fab-
rication would be handled by Sembawang
in Singapore and in Nigeria because of the
need to maximize local content. We plan to
use the South African-owned Grinaker yard
in Port Harcourt for steel structure fabrica-
tion.
Eiffels facility in Fos is not part of this bid.
We must propose the most competitive price,
de Villepin explains, and Fos is more expensive
than Far East yards. But that gap is decreasing
year on year prices, for example, are rising,
because of wage increases.
With us and Ponticelli, we are two compa-
nies from the same culture, and we are also
complimentary in construction and manage-
ment of big projects. Also, we are not as big
as the major offshore contractors, so when
we work together, we do so as a team, split-
ting the risks as well as the prot.
Another point is that because of our
two companies respective sizes, we are not
working on 10 oil and gas projects at the
same time, but on one or two. So if we are
successful on Ofon Phase 2 or other bids,
we can commit all our forces to the project,
which means our relationship with the client
is closer. We can therefore react better to
the clients needs, with greater exibility.
Eiffel and Ponticelli are also bidding jointly
for a single compression platform in Angolan
waters, again operated by Total. On its own,
Eiffel is targeting various upcoming projects
in Nigeria, some operated by Chevron and
ExxonMobil.
We particularly want to develop our liv-
ing quarter fabrication capability in Nigeria,
says de Villepin. This could be via our joint
venture with local company OOP Engineer-
ing. Prospective projects include the quar-
ters module for Ofon Phase 2, and Shells
Block H development.
In our bids for Ofon 2, we have proposed
training our partner engineering companies
to handle this type of fabrication, hookup,
and so on: this capability does not exist pres-
ently.
The yard at Fos is currently undergoing an
extension to handle masts for offshore wind
farms. Depending on the outcome of Eiffels
other bids, it could be available for topsides
or living quarters construction in 2008.
We have been doing one or two offshore
projects or less per year in recent times,
but all of them have been successful, both
for ourselves and our clients. It is not easy,
because in France, man-hour rates are very
high compared with those in the Middle East
or Far East yards, and the portion of man-
hours is very important. Also steel prices re-
main very high. But we are still competitive
in terms of quality, time schedule, exibility
and, most important, nal prices.
In the past, Fos built drilling modules for
projects in the North Sea and Azerbaijan,
and more recently a fast moving workover
rig for Eni offshore Libya. Now we are
thinking about jackups also, says de Ville-
pin, because this is a very dynamic market
at present. But the specialist yards in the Far
East are overloaded, and they are proposing
timed deliveries for 2011 and beyond.
We have already been contacted by drilling
contractors who are looking for available slots
in some yards. If we return to this market, we
will focus on heavy-duty jackups. For this, a
joint venture is not necessary, nor would we
subcontract the work elsewhere.
DORIS Engineering
58A, rue du Dessous des Berges - 75013 Paris FRANCE
Tl. + 33 1 44 06 10 00 - Fax + 33 1 45 70 87 38
www.doris-engineering.com
DORIS INC.
820 Gessner, Suite 1200 - Houston TX77024
Tel. + 1 (713) 973 2520 - Fax + 1 (713) 973 2578
Since 1965, the name DORIS has been attached to the most
challenging offshore projects, under the harshest
environmental conditions.
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Test loop assesses feasibility
of deepwater subsea separation
I
n deepwater Angolan block 17, Total has brought onstream two
FPSO-based production hubs and plans two more. According to
an article in the companys latest house magazine Energies, it
also plans to extend this model to ultra-deep block 32, where it
has at least ve commercial nds.
However, each combination brings its own technical problems.
In the case of the next project on the line-up, Pazor, embracing the
Perpetua, Zinia, Acacia and Hortensia elds, the tieback distances
are greater, at up to 60-km. Additionally, Perpetua and Zinias Mio-
cene crudes are even heavier than Dalias and are also non-erup-
tive. So, the planned subsea wells will all have to be in service from
startup.
The preferred solution involves subsea separation of gas and
liquids, at a depth of around 1,000 m, which would also be reliable
enough to function for long periods without intervention. The pro-
posed technique is intended to eliminate the risk of hydrate formation
and also to limit the energy needed to lift the uids to the FPSO.
The Institut Francais du Petrole has formed a joint venture with
Total to test the proposed technique at IFPs research center in So-
laize, outside Lyon. According to IFPs Claude Mabile, work on this
study started early in 2006, leading to construction of a Gas-Oil Wa-
ter Separation Platform (GOWSP). This is a closed loop facility that
can operate with gas, crude oil or water.
The GOWSP has overall dimensions of 35 x 25 x 5 m, and can test
ow rates of up to 1,000 cu m/hr for gas, and 15 cu m/hr for both oil
and water, at pressure of up to 55 bar, and with over a temperature
range of 40-80C. The facility incorporates the following main com-
ponents:
A 6 m long, 1.5 m dia. storage tank holding maximum volumes
of 10.8 MMcm; oil/water dosing pumps, each driven by 25 kW
of electrical power, provide ow rates of up to 12 cu m/hr
Liquid heat exchangers occupying an area of 7.7 sq km, provid-
ing heat capacity of up to 47 kW
A compressor for gas circulation, with gas ow rates varying
from 300-1,100 cu m/hr
A gas-cooling exchanger providing 19 kW of cooling capacity
One 2 m long, 70 cm ID, horizontal three-phase separator, again
operating at 55 bar over a 40-80C temperature range, capable of
handling volumes of 1.15 cu m
One 3 m high, 50 cm ID vertical separator, with the same pres-
sure and temperature values, but handling volumes up to 0.40
cu m.
Inside each separator are pressure and temperature sensors,
multiple-level sampling devices, an oil level sampling instrument,
and two inter-phase gauges. There are also owlines up- and down-
stream of the separators which are instrumented with further trans-
ducers, mass owmeters, an oil viscometer and an oil gammameter,
and various other ow sampling devices.
The dual aim of the trials to date has been to test both the perfor-
mance of the proposed separators and the various system internals.
Conventional three-phase separators can cause problems, Ma-
bile explains, and if they dont perform as they should, that can
affect resultant oil quality. And if that is the case, you must perform
post-treatment.
Some of the subsea separator designs put forward to date have
maybe been bigger, heavier, and more expensive than they should
be. Recently, we have been testing a prototype vertical separator. If
this equipment could be placed directly in the well subsea, it would be
much easier to install and operate than a multiphase pump system.
IFP has also been working with Total to improve ow assurance
modelling, Mabile says. We are engaged in a four-year study with
Total to examine an alternative, open-software platform, based on
the CAPE-OPEN standard developed by the process industry.
The aim is to promote easier interaction, allowing the operator
to simulate and optimize a full eld development system by simul-
taneously tying together modules such as near-wellbore modeling,
multiphase ow, hydrate formation, uid dynamics, gas lift and so
on, right up to the surface installation.
Still on the subject of hydrates, IFP is working a lot now on transpor-
tation issues. We have launched proposals for two joint industry proj-
ects to study the risk of pipeline blockages for companies planning to
transport oil and gas as hydrate slurries over long distances. The pres-
sure drop of the proposed mixture also needs investigating. We will be
doing a combination of experimental work on the Lyre loop at Solaize.
We need four or ve companies to sponsor this research.

FRANCE
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at 918.832.9379 or sherryh@pennwell.com
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working in the gas and oil industry.
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As the worlds fourth largest oil and gas major and a world-class chemicals
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DENMARK
D
enmarks offshore industry does not
often hit the international headlines,
but it is no laggard in terms of offshore
expertise. Despite the comparatively
small size of the countrys service and
supply sector, it has leading technology to of-
fer in a number of key areas.
So says Mogens Tofte Koch, general man-
ager and director of the Danish Marine and
Offshore Group (DMOG), which he founded
in 2001. Many of the 85 member companies
have strong links with the shipping and ship-
building sectors, from which they have made
a natural progression to the offshore sector.
Tofte Koch is also the managing direc-
tor of Offshore Denmark, which organizes
Danish pavilions at international oil and gas
exhibitions such as OTC, Offshore Europe,
and ONS, as well as events in the Middle East
and Far East.
A growing number of companies take ad-
vantage of these opportunities.
Several dozen companies now come along,
says Tofte Koch. I think Danish companies are
getting more eager to present themselves at
exhibitions.
Several smaller suppliers have received
the encouraging feedback that they have
good products at fair prices.
One of the areas in which Danish compa-
nies have a special expertise is FPSO conver-
sion and outtting, including activities such
as design and engineering services, turret
fabrication, and riser design and supply.
Denmark is home to leading FPSO opera-
tor Maersk Contractors, which owns seven
units and operates others. Its current proj-
ects include Marathons Alvheim FPSO in
the Norwegian sector. Maersk managed the
vessel conversion and will operate the unit
following startup this summer. It is also han-
dling conversion of an FPSO for Woodsides
Vincent eld off western Australia.
DMOG has organized two meetings for
its members aimed at expanding the net of
suppliers to main FPSO contractors. At the
most recent, last November, presentations
were given by:
FORCE Technology, which provides
integrity management services
Ramboll Oil & Gas, which in February
was awarded a contract by Samsung
Heavy Industries for the detailed engi-
neering and design of a generic FPSO
for Nexus Floating Production
F A Mggler Service, a construction com-
pany specializing in FPSO turrets
NKT Flexibles, a leading supplier of
exible pipelines and risers.
Another area in which the Danish supply
sector is particularly strong is platform mod-
ication. Tofte Koch cites Esbjerg Oileld
Services, which recently supplied a new pro-
duction platform to Maersk Oil and Gas and
is busy with manufacturing, rig repair and
maintenance assignments on several Dan-
ish oil and gas elds. The company recently
merged with Semco Maritime.
Strengthening platform legs is one of Den-
sits specialties. Using Ducorit high-strength
grout, the company increased the load-bear-
ing capacity of Dongs Siri platform in the
Danish sector by almost 50%.
HSE services are another area of Danish
expertise. One of the leading companies
is standby specialist Esvagt, part of the A
P Mller-Maersk group. Esvagt recently
signed letters of intent with Statoil to pro-
vide two newbuild emergency response ves-
sels for the Norwegian sector.
Denmark also wants to promote itself as
a center for environmentally sustainable de-
commissioning technology, Tofte Koch says.
A two-day conference on this theme will be
held in Esbjerg on October 11-12. Eventually
there will be a substantial domestic market,
comprising some 50 platforms that will need
to be removed. An interesting assignment
for the Frigg decommissioning project in
Norway has been won by fabrication com-
pany Bladt Industries, which under contract
to Aker Kvaerner Offshore Partner is to
build four buoyancy tanks with total weight
of 4,000 tonnes (4,409 tons), to be used for
jacket reoating.
Danish suppliers are becoming increas-
ingly active on the world market, not least
thanks to the helping hand they receive
from the larger companies such as Maersk
Contractors and oil company Maersk Oil.
These two companies, both part of the A P
Mller-Maersk group, have developed ex-
tensive international portfolios.
Maersk Oil recently contracted Ramboll to
provide design and engineering support for the
$5-billion Al Shaheen offshore development in
Qatar. Several DMOG member companies ex-
hibited in a Danish pavilion at the Doha IPTC
show in Qatar in November 2005. A lot of com-
panies reported making good contacts, says
Tofte Koch. Maersk helped to lift us up.
Good relations with Denmarks neighbor
Norway also help. Over the years many Dan-
ish suppliers have regularly delivered goods
and services to leading Norwegian contrac-
tors such as Aker Kvaerner, FMC Kongsberg
Subsea and Aibel and Vetco Gray, the succes-
sors of the former Vetco International group.
Along with the supplier community in
general, Danish suppliers are thriving on
the strong level of demand in offshore mar-
kets around the world. The same is true
of the domestic market, where Tofte Koch
says he has never seen the level of activity
so high. Various development projects are
underway and exploration has been given
a boost by the award of 14 new licenses in
2006, and a further three so far this year.
As elsewhere, the sector is having dif-
culty recruiting enough engineers and oth-
er qualied staff. Industry bodies now ac-
tively promote careers in oil and gas among
students, and hold promotional workshops
to which potential employees from abroad,
and especially Germany, are invited.
Mogens Tofte Koch,
general manager
and director of the
Danish Marine and
Offshore Group (DMOG).
Denmark promoting its skills in
floating production, decommissioning
Nick Terdre
Contributing Editor
One of two newbuild emergency
response vessels that Esvagt will
operate on Statoils behalf.
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Flexible riser passes tensile, fatigue tests
N
KT Flexibles has qualied its rst
deepwater exible riser and is well
advanced with qualication of a sec-
ond.
The work is being done under its
Deep Water Development Program (DWD2000),
which aims to produce a suite of risers to meet a
variety of conditions and oil company require-
ments. The program has stimulated widespread
interest, according to CEO Michael C Hjorth.
The rst riser to be qualied is a 6-in. pro-
duction riser, PR-06, for use in waters to 2,000
m (6,561 ft). The qualication program includ-
ed an in-plane fatigue test, simulating a free-
hanging catenary at 2,000 m (6,561 ft), which
was performed with 345 bar operating pres-
sure and dynamic tension varying in phase
with the bending.
A tensile test combined with representa-
tive installation crushing loads was also per-
formed. A comparison of the ultimate tensile
strength with the predicted value showed little
difference, conrming the robustness and
accuracy of NKTs design methodology, says
Hjorth.
NKT is currently performing full-scale
in-plane fatigue testing of an 8-in. (203 mm)
production riser designed for depths down to
1,750 m (5,741 ft). The prototype has been de-
signed with high-temperature capability using
NKTs proprietary single-layer unplasticized
polyvinylidene uoride (PVDF) inner liner.
NKTs deepwater risers are also intended
for high-pressure service. The operating
pressure of 345 bar used in testing is equiv-
alent to 5,000 psi, well above the 3,000 psi
standard.
One of the points about our program is
the focus we have on different regions, says
Hjorth. We aim to meet the different require-
ments of different oil companies in the major
deepwater provinces, Brazil, West Africa, Gulf
of Mexico, Far East Asia, and so on.
NKT is also carrying out extensive R&D
to enhance the performance characteristics
of polymeric and metallic materials. In a sec-
ond phase of the program, it plans to make
further use of its expertise in exotic and high-
performance materials, such as XLPE, cross-
linked polyethylene does not degrade when
exposed to water over time.
This is another respect in which we dif-
fer from our competitors, by using not only
standard materials, but also more exotic ma-
terials in order to achieve a broader perfor-
mance range, Hjorth says.

DENMARK
NKT 6-in. fexible production riser undergoing a
tensile test as part of its qualifcation for use in
water depths to 2,000 m (6,561 ft).
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spreadsheet format. Providing much greater
ease in locating the available data and
greater exibility working with the data.
US Gulf of Mexico Deepwater Discoveries and
Status (with fold-out map)
Worldwide Seismic Vessel Survey
World Survey of Marine Stimulation Vehicles
Worldwide MODU Construction/Upgrade Survey
MWD/LWD Services Directory
Environmental Drilling & Completion
Fluids Directory
Global Field Development Survey
Annual Rotary Steerable Tool Directory
Downloadable at
www.ogjresearch.com
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DEEP OFFSHORE TECHNOLOGY
International Conference & Exhibition
DEEPWATER & ARCTIC
-
OCEANS OF NEW OPPORTUNITIES
October 10 - 12, 2007
Stavanger Forum, Stavanger, Norway
www.deepoffshoretechnology.com
Conference
Management Contacts:
Conference Director
ELDON BALL
P: +1 713 963 6252
F: +1 713 963 6296
dotconference@pennwell.com
Exhibit & Sponsorship
Sales Managers:
JANE BAILEY
P: +44 (0) 1992 656 651
F: +44 (0) 1992 656 700
janeb@pennwell.com
SUE NEIGHBORS
P: +1 713 963 6256
F: +1 713 963 6212
dotsales@pennwell.com
The Deep Offshore Technology International Conference & Exhibition (DOT) will
be held in Stavanger, Norway this year with over 2500 people and 100 exhibitors
expected from the energy centers of Norway, United States, Asia, Europe, Russia,
Brazil, Venezuela, Colombia, and Australia.
As technology rapidly changes in our industry this years conference theme
Deepwater & Arctic Oceans of New Opportunities addresses all the
capabilities of our industry and will attract a broad collection of papers on topical
subjects related to both deepwater exploration and the complexities of arctic
exploration. At this years DOT, a special session on arctic technology will refect
the growing importance of arctic exploration frontiers.
PennWell is committed to bringing DOT to the worlds most pertinent deepwater
markets. Norway is central to Arctic worldwide offshore E&P market and many
prominent players in the oilfeld will gather for this most prestigious conference
and exhibition.
Plan on exhibiting, sponsoring and attending this event as DOT travels to Norway
for the latest in deep offshore technology.
Owned &
Produced by:
Flagship Media Sponsors: Hosted by: Supported by: Sponsored by:
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Ramboll assessing
Russian pipeline impact
S
teady progress is being made in implementing the Nord
Stream pipeline project, taking gas from Russia to Western
Europe via an onshore/offshore route.
The projects partners will seek construction permission
this summer. The aim is to have all permits in place by 2008,
according to Ramboll Oil & Gas, which is assisting with the overall
planning and permitting procedures.
Nord Stream involves the installation of two 48-in. pipelines running
1,200 km (745 mi) from Vyborg in Russia to Germanys northeast coast.
The rst line is due onstream in 2010 and the second in 2012.
In diameter, this will be the worlds biggest subsea pipeline sys-
tem, while in length it will be only a few kilometers shorter than the
Norway/UK Langeled system, the worlds longest subsea pipeline.
It will also be the rst pipeline installed in the Baltic Sea.
There are concerns about the impact the pipelines will have, says
Neel Strbk, Rambolls project manager. This applies not only in the
ve host countries in whose waters the line will be laid Russia, Finland,
Sweden, Germany, and Denmark but also neighboring countries that
might be affected Estonia, Latvia, Lithuania, and Poland.
Consultation with these countries is being conducted in accor-
dance with the Espoo Convention, part of the UN Law of the Sea
legislation, which regulates the study of environmental impacts in a
transboundary context.
Rambolls environmental studies are based on surveys of a 2-km-
wide corridor along the pipeline route and a more detailed investigation
of the 200-m-wide (218 yd) strip within which the lines will be laid.
When the deadline for comments fell in February, several hun-
dred had been received from interested parties. Three main areas
of concern can be identied, says Strbk:
Effects of seabed intervention on the marine environment
Effects of the pipelines on shing
Proximity of the pipeline route to dumping grounds for chemi-
cal munitions from World War II.
A new survey of the chemical munitions dumping grounds will
be carried out shortly. The main dumping area lies off the Danish
island of Bornholm.
Ramboll has done similar work for other proposed Baltic Sea pipe-
lines, including the BalticPipe between Denmark and Poland and the
Baltic Gas Interconnector linking Germany, Denmark and Sweden.
But none of the previous projects has been on such a large scale nor,
have any, as yet, secured a commitment to construction, as Nord
Stream has done.

DENMARK
Danish Offshore Solutions
- meet us at OTC 2007
booth 5175
www.geoteknisk.dk
Industrial Encoders
Offshore Denmark is a unique net-
work of more than 250 Danish com-
panies joined to give customers the
ultimate product, covering all aspects
within the marine/offshore industry.
The exibility of Danish offshore and
energy industries and its innovative
ability explains why Danish equip-
ment, products and know-how are
well-known and has been respected
in the market for several years.
The members of
Offshore Denmark represent:
Great expertise in the manufacture
of innovative and competetitive
products.
The power to offer complete turn
key solutions with a strong support-
ing service industry.
A competent, technologically skilled
industry with highly motivated
employees.
Sustainable production and unique
concepts.
OFFSHORE DENMARK
Offshore Denmark ApS Norremarksvej 27 DK 9270 Klarup Denmark Phone +45 98 31 77 11 Fax +45 98 31 77 55 info@offshore-denmark.dk
www.offshore-denmark.dk - Your key to Danish offshore suppliers!
Visit www.offshore-denmark.dk
Innovative Suppliers
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Swedish technology
Passenger & goods elevators
The Alimak Hek Group specializes in
rack and pinion-driven elevators for indus-
trial locations and has more than 30 years
experience working for the oil and gas
industry. Its product range includes Alimak
and Champion elevators. The modular-built
systems are adaptable in size and capac-
ity, and do not need a machine room or
elevator shaft. Elevators are available in
explosion-protected designs, providing reli-
able and convenient access in hull columns,
derricks and platform modules, and in
reneries.
www.alimakhek.com
Accommodation modules
Emtunga, a leading supplier of offshore
living quarters and technical modules, is
working presently on projects in Thailand,
the Caspian Sea, the Mediterranean Sea,
West Africa, the North Sea, Newfoundland,
and the Gulf of Mexico. During the past 12
months, the company has had more than
1,200 beds under construction, all designed
and built at its facilities in Sweden.
www.emtunga.com
Hydraulic drives
Hagglunds Drives is a leader in hydraulic
drive systems, specializing in heavy duty
applications that demand high torque, low
speed, and variable rpm. Production is
based in Mellansel, Sweden and the compa-
ny also has a global sales organization with
wholly owned sales and service companies
in 16 countries. The group is itself owned
by the listed private equity company Ratos.
www.hagglunds.com
Steel castings
Kohlswa Gjuteri manufactures high
grade and stainless cast steel products.
The company has facilities for machining,
non-destructive testing, chemical analy-
sis, heat treatment, and pattern making.
Casting weights range from 100-8,000 kg.
The companys processes are approved by
ABS, LRS, BV, DNV, and RMS. Specialties
include shackles, swivels, tri-plates, ram
plates, and towing pins.
www.kohswagjuteri.se
Humidiers
Munters has long experience in the
design and manufacture of humidiers for
the offshore and marine sectors. Its current
specialties include a wide range of mist
eliminators and droplet separators, provid-
ing protection levels from moderate to very
high. The company can also provide testing
facilities.
www.munters.com
Stainless steel components
Outokumpu is a supplier of international
stainless steel products and solutions. The
company serves companies in a wide range
of sectors, and is represented in over 30
countries worldwide. Its main manufactur-
ing centers are in Sweden and Finland,
with others in North America. Outokumpu
Stainless Tubular Products makes and sells
welded stainless steel process tubes, pipes,
ttings, and anges.
www.outokumpu.com
High strength chains
Ramnas Bruk provides high strength an-
chor chain for demanding offshore mooring
systems, with 40 years experience in this
sector. Its steelworks, which manufacture
high grade steel, have also developed alloys
and characteristics for the companys R4+
chain and its forthcoming grade 5 chain.
www.ramnas.com
Hot isostatic processing
Sandvik Powdermet manufactures near
net shape products via the PM/HIP process
and has been making deliveries in this
fashion since 1983. Offshore application
products are made from high-strength
stainless steel with a high level of corro-
sion resistance maximum 15 tons, 1.2 m
outside diameter, 2.85 m long. Isotropic
features and mechanical properties of the
process are equal in all directions. The
company also employs nite element analy-
sis to achieve weight savings of up to 40%.
Welding can be cut by up to 30% compared
with conventional methods.
www.smt.sandvik.com/powdermet
SWEDEN
What They Didnt Teach You
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358 Pages/Softcover/Fall 2005
ISBN 1-59370-066-0
Price $69.00
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Learn how to respond to tough situations
Learn how best to manage time
Learn how to close the sale
Learn how to impress customers
Learn how to prospect for new business
Learn how to strike responsive chords
Learn how to send the right signals out

so the right signals come back
Much has been written about perfecting sales techniques,
but in this new book author James R. Hutton shares his
decades of experience in the petroleum industry to
help readers master the challenge of industrial sales.
In How to Sell Technical Equipment and Services,
Hutton covers the many aspects involved in B2B
sales, with product knowledge being the key to
success. Hutton breaks down the process into
separate chapters covering more than 60 different
topics ranging from identifying the decision makers
and gathering intelligence, to handling unpleasant
customers and introducing new products. Sales
professionals, sales manager, and senior executives
in all industries will find the information found
in this book to be invaluable.
Features & Benets

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People
Cairn India has appointed Indrajit Baner-
jee to its board of directors as CFO. Banerjee
started his career at PriceWaterhouse Coo-
pers in Calcutta in 1979 and has held several
senior posts throughout his career, including
17 years at Indian Aluminium Co. and two
years in Lucent Technologies (India). His
most recent position was president of nance
and planning at Lupin Ltd. Banerjee replaced
Jann Brown, who was interim CFO.
John Cranes chief
engineer, Ralph
Gabriel, has been
named the Hydraulic
Institute Member
of the Year. The
award was presented
to Gabriel at the
Hydraulic Institutes
90th annual meeting,
recently held in
San Antonio, Texas.
Gabriel has led the Hydraulic Institutes Seals
Committee since its inception in 1998 and
played a principal role in the development of
the latest Institute publication, Mechanical
Seals for Pumps: Application Guidelines. He
devoted over four years to the project and
served as the project leader as well as docu-
ment manager.
Total has appointed Jean-Jacques Guil-
baud, president of human resources and cor-
porate communications, to Totals executive
committee. Guilbaud has an undergraduate
degree in Sociology and a post-graduate de-
gree in public law. He joined Total in 1981 as a
legal advisor specializing in labor law and was
appointed head of labor relations in 1985. After
serving as assistant manager of the Normandy
renery in 1994 and vice president of human
resources in 1996, he became president of
human resources and corporate communica-
tions and was appointed to membership of the
group management committee for Total in
April 1998, for TotalFina in 1999, for Total-
FinaElf in 2000, and for Total in 2003.
The board of directors of Afren Plc. has
accepted the resignation of Brian OCathain
as chief executive and appointed Osman
Shahenshah as his replacement. The board
also appointed Evert Jan Mulder as execu-
tive director and COO and Didier Lechartier
as head of new ventures. Mulder, with 25
years experience, has held positions at Addax
Petroleum, Shell, Weatherford, and Hallibur-
ton. Mulder was most recently COO of Addax
Petroleum. He spent more than 10 years with
the Shell group holding various senior posi-
tions, including head of commercial planning
in Nigeria and head of production technol-
ogy for Shell Expro in the UK. Mulder was
also the business development manager and
the global manager of reservoir description
for Halliburton. Lechartier, with 18 years of
industry experience, has particular experience
in Congo Brazzaville, where Afren recently
acquired a stake in the onshore La Noumbi
exploration permit. Lechartier was formerly
business development director for Maurel
et Prom where he was responsible for the
production startup of the Mboundi eld.
InterMoor Inc.,
an Acteon company,
has appointed Keith
Waldorf as sales rep-
resentative. Waldorf
has over 17 years of
experience in sales
and marketing, most
recently as marketing
manager for Seacor
Marine LLC. While
based in Singapore,
he served as Seabulk Offshore Ltd. market-
ing manager for Southeast Asia. Waldorf is a
graduate of the University of Texas at Austin
with a BS degree in economics. He is also a
graduate of Naval Ofcer Candidate School,
Newport, Rode Island; Engineering Ofcer of
the Watch School; and Navy Primary Flight
School, Corpus Christi, Texas. Based at
InterMoors Houston ofce, Waldorf will call
on oil and gas operators and drilling contrac-
tors in the GoM region.
The Interna-
tional Association
of Drilling Contrac-
tors (IADC) and
ReedHycalog have
named Mark Burns
the 2007 Contractor
of the Year. Burns
has served several
leadership roles with
IADC for more than
23 years, including
chairman for the
North Sea chapter in 2003-2004. He also has
served on planning committees for the IADC/
SPE drilling conference for several years,
and has been a key driving factor behind this
years IADC Mooring Workshop. Burns began
his 23-year career at Noble Corp. as a driller
and now is the vice president and division
manager for the US Gulf of Mexico. Noble
Corp. recently honored Burns for his years
of service and accomplishments by naming
a Levingston Class 111-C independent-leg
cantilever jackup after him.
John C.S. Lau, president and CEO of Husky
Energy Inc. has announced the appointment
of Geoff Barlow as VP and CFO of Husky
Energy Inc. Prior to this appointment, Barlow
was VP and controller of Husky Oil Opera-
tions Ltd.. Before joining Husky, Barlow held
the position of controller for Renaissance En-
ergy from 1994 to 2000. Barlow is a chartered
accountant and holds a BS in Commerce from
the University of Calgary.
Chevron Corp. has nominated Kevin W.
Sharer for election to the companys board
of directors. Sharer is currently CEO and
president of Amgen Inc., a biotechnology
company. Sharer has been Amgens CEO
and president since May 2000 and has been
chairman of the companys board of direc-
tors since Jan. 2001. From Octtober 1992 to
May 2000, Sharer was Amgens president
and COO. He has been a director of Amgen
since Nov. 1992. Sharer also serves on the
board of directors of Northrop Grumman
Corp. and the US Naval Academy Founda-
tion. He previously served on the board of
3M . Sharer will be part of the slate of board
nominees to be considered for election to
Chevrons board at the companys 2007
annual meeting of stockholders. If he is
elected, the board will expand from 13 to 14
members.
Candax Energy Inc. has appointed John
Willis as COO. Willis is a mechanical
engineer with over 30 years of major project
development and drilling experience with
both international and independent oil and
gas companies. Prior to joining Candax, Willis
was director of the consulting rm TransMed
International. He is treasurer of the Libyan
British Business Council.
Foster Marketing
Communications has
appointed Megan
Hebert an account
associate.
Hebert is a gradu-
ate of the Univer-
sity of Louisiana at
Lafayette (ULL) with
a bachelors degree in
public relations and
was named Outstand-
ing Graduate for the College of Liberal Arts.
Prior to joining Foster Marketing, Hebert
worked as an admissions counselor for ULLs
Department of Enrollment Services, where
she recruited students from the New Orleans
area. She has also worked for the ULL Alumni
Association and as a public relations intern for
the Realtor Association of Acadiana.
AGR Drilling Services has appointed Bjarte
Aldal as chief technical ofcer, and Stig
Anderson as business development direc-
tor. Aldal was formerly managing director of
Bergen Engineering and prior to that worked
for Prosafe Drilling Services. Andersen was
formerly country manager for KCA Deutag
Drilling Norge.
Oileld services group RBG has promoted
Fraser Coull to the position of technical

BUSI NESS BRI EFS
Gabriel
Waldorf
Burns
Hebert
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BUSI NESS BRI EFS
director. Coull, formerly director of special-
ist services, joined the company in February
2005 from Wood Group Engineering. Fred
Chadwick, Coulls replacement, worked with
Baker Hughes ProductionQuest, Wood Group,
and McDermott. His responsibilities at RBG
will include the AquaDyne cleaning division,
Mach-Ten mechanical services, electrical and
HVAC services, and the Durastic ooring
business.
Companies
Knowledge Reservoir says it is expanding
its presence in Europe, Africa, the Middle East,
and Asia-Pacic with the opening of ofces in
Muscat, Oman, and Kuala Lumpur, Malaysia.
Modern Petrotech LLC, a specialist service
supplier to the Oman E&P sector, has been
appointed in Muscat, Oman. In the Asia-Pacic
region, Ian Lilly has joined the company as
region manager, becoming the rst employee
of Knowledge Reservoir Geoscience & En-
gineering Sdn. Bhd., based in Kuala Lumpur,
Malaysia. In addition to the two new ofces, the
company says, it has established a new relation-
ship that will give the geoscience and engineer-
ing consulting rm a presence in Mumbai,
India. Radix Technologies in Mumbai, India
has been appointed to act as Knowledge
Reservoirs representative in country.
Petrobras and Russias Gazprom have
signed a memorandum of understanding to
identify cooperation opportunities for oil and
gas projects. Three potential initiatives include
cooperation possibilities in LNG, natural gas
storage, and natural gas transportation system
projects. Although the activity schedule will
extend through next year, Petrobras and
Gazprom expect to materialize actual partner-
ships, particularly in the LNG area, in 2007.
BHP Billiton has awarded Technip a
contract for subsea work on the Shenzi eld in
the Green Canyon area in the Gulf of Mexico.
The contract covers engineering, fabrication,
and installation of a system comprising two
ineld owlines and six owlines welded to
steel catenary risers and connecting three
drill centers to the Shenzi TLP. Pipeline end
termination (PLET) design is under way at
Technips operations and engineering center
in Houston, with PLET fabrication scheduled
for the second half of this year. The owlines
and risers will be welded onshore at Technips
spoolbase in Mobile, Alabama. Offshore
installation will be carried out in 1Q 2008 by
Technips deepwater pipelay vessel, Deep
Blue. The vessel will use the reel lay process
to reduce its required time in the eld. The
Shenzi eld is operated by BHP Billiton with a
44% working interest. Partners include Repsol
(28%) and Hess (28%).
Australian engineering group Clough
Ltd. has nished work on the ONGC Panna
eld offshore India. Though this project has
reached completion, the company says it
expects the independent mediation process
dealing with completion issues on the G1
contract to begin within the next two months.
According to Clough, the companys net debt
increased to $84.96 million for the six months
ending Dec. 31, 2006. The company says loss
was primarily driven by cash outows on the
Panna and G1 contracts, legal costs related to
the BassGas arbitration process, and nanc-
ing of existing projects in the property busi-
ness. Clough expects the arbitrator to deliver
ndings on the dispute with Origin Energy
on the BassGas contract before the end of
this year. Clough says it remains commit-
ted to achieving a resolution to this dispute
and nding the best possible outcome for
shareholders.
Petsec Energy Ltd. plans to make a nal
decision on the 6.12/6.12 South oil discovery
development in Chinas Beibu Gulf by the
second half of this year, with the 6.12 South
oil discovery having substantially increased
the probability of success for the ve adjacent
oil eld prospects. Petsec chairman Terry
Fern says the acquisition of 33 Gulf of Mexico
leases last August yielded four discoveries
in Mobile Bay concessions within months.
These discoveries substantially increased
the companys prospect inventory, which
now stands at 290 bcf of gas and 30 MMbbl
of oil in the US and 5-8 MMbbl in China. The
companys exploration program for this year
includes 14 to 20 wells, targeting 60 bcf of oil
equivalent net to Petsec in the US and China
concessions. Petsec has proposed a capital ex-
penditure of approximately $68 million for this
year, supported by current working capital of
$36 million. Anticipated operating cash ow
for the year is $50 million from 9.8 bcf equiva-
lent of production from existing reserves. The
anticipated production increase for 2007 is up
by 20% over 2006.
Maritima de Ecologia SA de CV has
awarded Aberdeen-based Veripos a long-term
contract to supply GNSS positioning services
and equipment for the DP vessel Don Jaime,
which is carrying out extensive internal
pipeline corrosion inspection work in the
Bay of Campeche on behalf of Pemex. Under
the contract, continuous precision position-
ing is being provided via the Gulf of Mexico
sector of Veripos proprietary Americas GNSS
regional network covering north, south, and
central America. Support equipment supplied
for integration into Don Jaimes own dynamic
positioning system includes a Veripos LD3-G1
integrated mobile unit congured for recep-
tion of L1 single frequency GPS. The unit
additionally incorporates an L-band satellite
differential correction demodulator.
The US Department of the Interiors Miner-
als Management Service has awarded IMV
Projects Atlantic a contract for a study titled
Arctic Offshore Technology Assessment of
Exploration and Production Options for Cold
Regions of the US Outer Continental Shelf.
The study has the objective of delivering an
assessment of oil and gas technology that can
be applied to cold regions of the US OCS; in
particular the Beaufort, Chukchi, and Bering
Seas.
US Liquids LP (ULL) has opened its new
Pelican Island Transfer Station in Galveston,
Texas. The facility is a full-service marine and
truck transfer station for the disposal of oil-
eld drilling and production waste 24-hours a
day, seven-days a week. It also provides barge
and tank cleaning services.
SBM Offshore is combining two of its
Houston-based groups, Atlantia Offshore
Ltd. and SBM-Imodco Inc., to strengthen
its oating production facility capabilities. The
new company will be called, SBM Atlantia,
and will be based in Houston.
Avantium Technologies BV has an-
nounced the expansion of its R&D facilities in
Amsterdam to accommodate the growth of its
high-throughput R&D business. Avantium will
double its capacity with the addition of 2,500
sq m (27,000 sq ft) of laboratory and ofce
space. The company expects to begin using
the new facilities by 1Q 2008.
Petrobras has awarded Technip a $200-
million contract for the four-year charter of
the Sunrise 2000 exible pipe laying vessel.
The contract could be renewed for four years.
The Sunrise 2000 is a dynamically positioned
vessel designed to install exible owlines
and umbilicals in water depths to 2,000 m
(6,562 ft). The vessel can simultaneously lay
three lines, either owlines or umbilicals. A
built-in carousel provides the vessel with a
cargo capacity of 3,775 tons of products to
facilitate three-line pipelaying. The Sunrise
2000 is also equipped with Technips pat-
ented vertical lay system, which allows the
installation of exible pipes up to a maximum
dynamic load of 270 tons. The vessel, which
has been under long-term contract with
Petrobras since 1995, has installed subsea
pipes for the Roncador, Albacora Leste, Mar-
lim, and Marlim Sul elds.
Deep Sea Supply Plc. subsidiary DESS Cy-
prus Ltd. has entered into an agreement with
Java Marine Lines Pte. Ltd. for a one-year
rm bareboat charter for an anchor handling
tug supply vessel. The AHTS is to be commis-
sioned and delivered by Jaya Shipbuilding &
Engineering Pte. Ltd. in Singapore in Septem-
ber/October 2007. Deep Sea Supply PLC has
secured a purchase option at the end of the
one-year bareboat charter. Deep Sea Supply
will operate the vessel in Asia, the Middle
East, and West Africa.
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Word Ads: $2.00 per word. Minimum of 20 words. Telephone & fax numbers and e-mail & website addresses count as 2 words each. No
agency commission and no 2% cash discount. Centered & bold heading is $7.35 extra per line. 10% discount for placement in 3-6 issues.
15% discount for placement in 7-12 issues. Company logo available with word ads for additional $63.00. Logo will be centered above copy
with a maximum height of 3/8 inch.
Display Ads: $200.00 per column inch. Same discount as above. 15% agency commission. $200.00 minimum charge for insertions. Page
size is 3 columns wide by 10 inches deep. One Column = 2.25 wide, Two Columns = 4.75 wide, Three Columns = 7 wide. Minimum Size:
1 Column X 1 Inch.
Deadline for classied advertising is the 15th of the month preceding publication. Contact Glenda Harp, (918) 832-9301, or
fax your ad for a quote (918) 831-9776. E-mail: glendah@pennwell.com
No special position available in classied.
CL AS S I F I E D ADVE RT I S I NG
BUSI NESS OPPORTUNI TI ES
For Sale
Gas & Oil Treating Facility
for more information
www.ventechequipment.com/gaviota.htm
Ventech Process Equipment, Inc.
Ph. (713) 477-0201
Fax (713) 477-2420
EQUI PMENT FOR SALE

Hiring? Selling Equipment?
Need Equipment?
CONTACT: GLENDA HARP
+1-918-832-9301
or 1-800-331-4463, Ext. 6301
Fax: +1-918-831-9776
Email: glendah@pennwell.com
WANT TO BUY/REMOVE
HOSE ASSEMBLIES
LARGE BORE MARINE
LOADING/UNLOADING HOSE
ASSEMBLIES, 4 THROUGH 24.
FLOATING AND NON-FLOATING.
ANY QUANTITIES AND
CONDITION CONSIDERED.
WILL REMOVE FROM ANY
PLACE IN THE WORLD.
CONTACT gcassociates@uia.net
HOSE ASSEMBLI ES
ACQUISITION AVAILABLE
High Tech subsea products
manufacturer with deepwater oil and
defense customers.
Email investor information to:
subseaproducts@ix.netcom.com
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Solar Maintained - Low Time
13 Units (Gen 1) & (Gen 2)
8 Natural Gas - 5 Dual Fuel
Low Nox 25 ppm
Complete Packages
Mobile PCR U.G. Switchgear
60 Hz 13.8 kV
50 Hz Conversion Available
Mid America Engine, Inc.
662-895-8444 Fax: 662-895-8228
Keith: keith@maegen.com
Art: art@maegen.com
5.2 MW Mobile Gen Sets
FOR SALE
olar Taurus 60
GULF STATES SOUTHWEST USA
1700 West Loop South, Suite 1000, Houston, TX 77027
PHONE +1 713 621 9720 FAX +1 713 963 6228
David Davis davidd@pennwell.com
Betty Kight (Advertising Services) bettyk@pennwell.com
Glenda Harp (Classied Sales) glendah@pennwell.com
NORTHEAST MIDWEST NORTHWEST USA
PHONE +1 713 621 9720 FAX +1 713 963 6228
SCANDINAVIA THE NETHERLANDS
MIDDLE EAST AFRICA
11 Avenue du Marechal Leclerc
61320 Carrouges, France
PHONE +33 2332 82584 FAX +33 2332 74491
David Betham-Rogers davidbr@pennwell.com
UNITED KINGDOM
ADBIZ MEDIA LTD
252 Union Street, Aberdeen, AB10 1TN
Scotland, United Kingdom
PHONE +44 (0) 1224 791178 FAX +44 (0) 5601 151590
Carole Winstanley adbizmedia@btconnect.com

FRANCE BELGIUM PORTUGAL
SPAIN SOUTH SWITZERLAND MONACO
Prominter
8 allee des Herons, 78400 Chatou, France
PHONE +33 (0) 1 3071 1224 FAX +33 (0) 1 3071 1119
Daniel Bernard danielb@pennwell.com
GERMANY NORTH SWITZERLAND
DENMARK AUSTRIA EASTERN EUROPE
RUSSIA FORMER SOVIET UNION
Verlagsbro Sicking, Emmastrasse 44,
45130 Essen, Germany
PHONE (49) (20) 177 9861 FAX (49) (20) 178 1741
Wilhelm F. Sicking wilhelms@pennwell.com
ITALY
Medias Intl.
Via Trieste 17 - 22066, Mariano Comense (Co)
PHONE +39 (03) 175 1494 FAX +39 (03) 175 1482
Jean-Pierre Bruel medias@pcbrianza.net
BRAZIL / SOUTH AMERICA
Grupo Expetro/SMARTPETRO, Ave. Erasmo
Braga 227, 10th and 11th oors,
Rio de Janeiro RJ 20024-900, BRAZIL
PHONE +55 (21) 2533 5703 or +55 (21) 3084 5384
FAX +55 (21) 2533 4593
ogjbrasil@ogjbrasil.com.br, Url www@pennwell.com.br
Bernardo Grnewald bgrunewald@pennwell.com.br
JAPAN
e. x. press Co., Ltd.
Hirakawacho TEC Bldg., 2-11-11,Hirakawa-cho,
Chiyoda-Ku, Tokyo 102-0093, Japan
PHONE +81 3 3556 1575 FAX +81 3 3556 1576
Manami Konishi manami.konishi@ex-press.jp
SINGAPORE
19 Tanglin Road #09-07 Tanglin Shopping Center
Singapore 247909
PHONE +65 6 737 2356 FAX +65 6 734 0655
Michael Yee yfyee@singnet.com.sg
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
KOREA
KES Korea Co., Ltd. #406 Shinwon Bldg.,
1-1, Samsjeon-Dong, Songpa-Gu, Seoul 138-180, Korea
PHONE +82 (2) 420 1293 FAX +82 (2) 420 1294
Paek Kwon keskor@korenet.net
SALES OFFICES
20TH WORLD ENERGY CONGRESS ..................................123
www.rome2007.it
A
Acteon ...................................................................................113
www.acteon.com
Addax Petroleum ....................................................................33
www.addaxpetroleum.com
Air France ..............................................................................157
www.airfrance.com
Aker Arctic Technology, Inc. .................................................47
www.akerarctic.
Aker Kvaerner .............................................................1, 93, 135
Alliance Engineering ..............................................................96
www.alliance-engineering.com
API ..........................................................................................139
www.api.org
Automatic Power, Inc. ............................................................75
www.automaticpower.com
B
Baker Hughes
Centrilift ................................................................................87
www.bakerhughes.com
Drilling Fluids .......................................................................31
www.bakerhughes.com/drillinguids
Inteq ................................................................................ 64-65
AnswersWhileDrilling.com
Bennex .....................................................................................16
www.bennex.no
BHP Billiton .............................................................................60
www.bhpbilliton.com
Bisso Marine .........................................................................137
www.bissomarine.com
BJ Services ...........................................................................132
www.bjservices.com
C
Cable Safe ...............................................................................17
www.cablesafe.com
Cambridge Energy Research Associates ..........................117
www.cera.com/istanbul
Cameron ..................................................................................51
www.c-a-m.com
Caprock Communications .......................................................5
www.CapRock.com
CARBONE LORRAINE ..........................................................153
www.carbonelorraine.com
CD-ADAPCO ............................................................................78
www.cd-adapco.com
Cedervall & Soner ...................................................................69
www.cedervall.com
CGGVeritas .............................................................................49
www.cggveritas.com
Chevron ................................................................................. 2-3
willyoujoinus.com
ClearWater Environmental Systems .....................................89
Clifford-Jacobs Forging, Co. ...............................................126
www.clifford-jacobs.com
CRC-Evans. ...........................................................................121
www.crc-evans.com
Cudd Energy Services. ..........................................................61
www.cudd.com
D
Delmar ...................................................................................112
www.delmarus.com
DOCKWISE SHIPPING ..........................................................143
www.dockwise.com
Doris Engineering .................................................................155
www.doris-engineering.com
DRIL-QUIP ...............................................................................43
www.dril-quip.com
E
EIFFEL ...................................................................................149
www.eiffel.fr
Emerson Process Management ............................................63
www.EmersonProcess.com/Bettis
ESAB ........................................................................................76
dualshieldx.com
ESAB Holdings .......................................................................83
www.esab.com
F
Finstaship ................................................................................89
www.nstaship.
FloaTEC LLC ...........................................................................77
www.oatec.com
Flowserve Corporation ........................................................125
www.owserve.com
FMC Technologies ................................................................. C4
www.fmctechnologies.com
FPSOcean Management .........................................................71
www.fpsocean.com
Framo Engineering AS ...........................................................67
www.framoeng.no
Fugro .....................................................................................141
www.fugro.com
G
GE Optimization Services ......................................................91
www.ge.com/oilandgas
GEP France ...........................................................................147
www.gep-france.com
Global Industries .................................................................. C3
www.globalind.com
H
Halliburton
Halliburton Drilling, Evaluation, and Digital
Solutions ..................................................................11
www.halliburton.com/wireline
Halliburton Drilling, Evaluation, and Digital
Solutions ..................................................................23
www.lgc.com
Heerema Marine Contractors ................................................99
www.heerema.com
Helix Energy Solutions ..........................................................37
www.HelixESG.com
Hoover Materials Handling Group, Inc. ..............................114
www.HooverSolutions.com
HSM Steel Structures ...........................................................105
www.hsm.nl
I
I/O .............................................................................................29
www.i-o.com/digin
Ingersoll Rand ...........................................................................9
www.irtools.com
Intec Engineering Partnership LTD ....................................133
www.intec.com
Intelligent Engineering (UK) Limited ..................................115
www.ie-sps.com
Intergraph Corp. .....................................................................81
www.intergraph.com/promo/otc
Intermoor ..............................................................................109
www.intermoor.com
J
J Ray McDermott, Inc. . ..........................................................35
www.jraymcdermott.com
JET-LUBE, Inc. ........................................................................57
www.jetlube.com
John M. Campbell & Co. ......................................................108
www.jmcampbell.com
K
KBR ..........................................................................................15
www.kbr.com
Kee Industrial Products .......................................................100
www.KeeKlamp.com
Keppel FELS Limited ............................................................127
www.keppelfels.com
L
Louisiana Economic Development .....................................103
LouisianaForward.com
LTS, Inc. ...................................................................................48
www.wiremasters.com
Lufthansa ................................................................................45
www.lufthansa-usa.com/energy
M
M-I SWACO ........................................................................59, 86
www.miswaco.com
Modec International LLC .....................................................145
www.modec.com
Moyno Inc.. ..............................................................................18
www.moyno.com
N
N-TRON ..................................................................................119
www.n-tron.com
National Oilwell Varco ............................................................27
www.nov.com
O
Ocean Dynamics ...................................................................118
www.oceandyn.com
Oceaneering Rotator ..............................................................55
www.oceaneering.com
Offshore Denmark ................................................................162
www.offshore-denmark.dk
Oil Center Research International, L.L.C. ...........................114
www.oilcenter.com
P
PAC. .........................................................................................16
www.pacstainless.com
Panduit Corp.. .........................................................................19
www.panduit.com/ss27
PennEnergy ...................................................................124, 128
www.pennenergy.com
PennWell
Books ............................................................8, 126, 144, 163
Deep Offshore Technology. ............................................161
www.deepoffshoretechnology.com
MAPSearch .......................................................................146
www.mapsearch.com
Offshore Online Reader Service ....................................136
Offshore Reprints ............................................................156
Offshore Surveys & Directories .....................................160
www.ogjresearch.com
Oil Sands & Heavy Oil Technology ..................................88
www.oilsandstechnology.com
Oil & Gas Maintenance Technology ..............................104
www.oilandgasmaintenance.com
PennTechJOBS ....................................................................6
www.PennTechJOBS.com
PHI, Inc. .................................................................................131
www.phihelico.com
Prime Energy ..........................................................................73
www.PrimeEnergyRental.com
R
Ramnas Bruk ........................................................................101
www.ramnas.com
R.M. Young Co. .....................................................................108
www.youngusa.com
Roblon ...................................................................................160
www.roblon.com
S
SBM ..........................................................................................79
www.sbmoffshore.com
Schlumberger .........................................................................85
www.slb.com/xlift
Sea Tel, Inc. ...............................................................................7
www.seatel.com
SEDI Fibres Optiques ...........................................................152
www.sedi-bres.com
Sercel .......................................................................................41
www.sercel.com
Shell People Services - America .........................................111
www.shell.com/careers/technical
Siemens Power Generation. ................................................107
www.siemens.com/oil-gas
Solar Turbines, Inc. ................................................................13
www.solarturbines.com
T
TIW Corporation .....................................................................25
www.tiwtools.com
TOTAL SA ..............................................................................158
www.total.com
Trelleborg Sealing Solutions .................................................32
www.tss.trelleborg.com/us
Tungum .................................................................................100
www.pacstainless.com
U
UNITED MARINE SHIPYARD .................................................39
www.unitedmarineshipyard.com
V
Vallourec & Mannesmann Tubes ........................................151
www.vamservices.com
VICINAY CADENAS ................................................................53
www.vicinaycadenas.com
W
Weatherford International ..................................................... C2
www.weatherford.com
Weingartner Maschinenbau GmbH .......................................95
www.weingartner.com
Wood Group Pressure Control ..............................................21
www.wgpressurecontrol.com
Wooster Hydrostatics ..........................................................122
www.woosterhydrostatics.com
The index of page numbers is provided as a service. The
publisher does not assume any liability for error or omis-
sion.
ADVERTISERS INDEX
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It was the best of times, it was the worst of times.... so began
Dickens Tale of Two Cities describing the events leading to the
French Revolution. That opening thought reminds me of the volatil-
ity of our industry and how we can indeed go from healthy one year
to struggling the next.
This year, Mustang, the company I co-founded with Paul Redmon
and Felix Covington, will celebrate 20 years of operation. When my
two partners and I launched our venture in mid-1987, the oil and
gas industry, including the offshore segment, was in an abyss. Since
1983, the business had plummeted, with established companies
shutting their doors, startup attempts oundering, and layoffs ap-
proaching 40%. Loyalty to employers, employees, sub-contractors,
and operators alike was almost non-existent. The consequence was
an industry that was not very healthy.
In contrast, todays oil and gas picture has some similarities to the
good times of the late 70s and early 80s, when there was a scramble
to staff up for the tremendous inux of work that everyone was en-
joying. At that time, companies were outbidding each other for the
best people, and very few organizations were focused on the long-
term. Similarly, companies today are again desperately searching
for engineers, skilled technologists, and experienced crafts persons.
They are luring veteran personnel from one another, just to help
solve short-term project needs. With that approach, nobody wins.
Having experienced both ends of the spectrum, our founding trio
had another vision. We believed then and still do fervently today that
great companies thrive because of their people and that how people
are treated by company leadership separates the successful compa-
nies from the weak ones. Further, we believed that building teams
with those key people was an essential ingredient to project success.
New technologies will continue to be replaced by even newer ones.
But its the people who will endure. Within a few months of our ex-
istence, we adopted the credo People Oriented...Project Driven, which
we still use prominently today.
Is there a secret formula for attracting and retaining quality peo-
ple? Is there a special recipe for keeping employees energized and
productive? I dont really think so. Rather, I believe the way compa-
nies are successfully built is through a single word CULTURE.
Three specic areas of company culture can, I believe, convert
personal effort and responsibility into well run organizations and a
healthier industry.
Team work: Project execution is done by teams, not individu-
als. Any project, small or mega, relies on the combined efforts of
multiple engineering disciplines mechanical, structural, process,
instrument, and electrical. Additionally, there are multiple support
functions procurement, administration, HSE, etc. that are a nec-
essary part of the equation. All must communicate and interface
closely, supporting each other so that all can maximize their con-
tribution. Then, they must reach out and embrace the other project
participants the numerous vendors, sub-contractors and clients
trying to make them all look like heroes. Special interests must
be put aside in favor of the outcome. Independent silos must be
eliminated and information shared. Behavior needs to be other ori-
ented and supportive. Completed milestones need to be recognized
and celebrated by all. If this cohesive attitude is not fostered from
within, there is a recipe for project disaster.
Family involvement: Projects are demanding, with a tight sched-
ule often being the driver. Long hours, overtime and weekend work
become the norm. Attention needs to be focused on building a fam-
ily of families. Camaraderie is built by including everyone so that
the effort can be understood and appreciated. That means recogni-
tion given to everyone connected to the project, whether they are at
home, at school, or on the job itself. Frequent offsite team-building,
with group and family functions that focus on fun and spirit, can as-
sist in keeping an organization healthy.
Generation building: Growing and supporting a new generation
of young engineers, technical graduates, and specially skilled work-
ers take a concerted effort. While there are perhaps more engineer-
ing students enrolled in universities today than at any previous time,
encouraging and cultivating them needs to be a key management
strategic objective. Building a ourishing industry starts even at the
high school level and below. Students need to be encouraged by po-
tential employers in our industry to pursue an educational direction
that will help ll critical industry needs ve, 10 and 15 years down
the road.
Once hired, new employees must be mentored by senior man-
agers and veteran leadership. They should be given meaningful
assignments and allowed to demonstrate their abilities, under the
observation of, and with guidance from, company leaders. This ap-
proach can often reduce the time needed to make an employee pro-
ductive, can give that person a sense of belonging, and can greatly
increase overall project productivity.
We are fortunate that the global economic indicators in our in-
dustry are pointing toward continued prosperity. New technologies
and capabilities developed to identify, exploit and process offshore
oil and gas reserves have led to another buoyant period in the in-
dustrys history. In order to keep the momentum going, though, we
need to stay focused on the people that make it happen and reect
on how best to build a culture and solid teams that will continue to
get the job done.
William G. Higgs
Mustang Engineering
A good time to reflect
This page reects 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 Eldon Ball at eldonb@pennwell.com.
BEYOND THE HORI ZON
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5ea eyend
0lobal lndustrles ls comblnlng state-of-the-art
techne|egy and exceptlonal teamwerk to
dellver uncompromlslng perfermance and
lnnovatlve se|utiens ln the ever-changlng
subsea and deepwater markets.
Take a look at 6lobal InJustrles
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Click Here to Unfold
5ea eyend
0lobal lndustrles ls comblnlng state-of-the-art
techne|egy and exceptlonal teamwerk to
dellver uncompromlslng perfermance and
lnnovatlve se|utiens ln the ever-changlng
subsea and deepwater markets.
Take a look at 6lobal InJustrles
www.globalind.com
techne|egy se|utiens perfermance teamwerk
"Pcrt cj thc juturc cj PFMFX Fxplcrcricr y PrcJurricr, crJ cj thc rcurtry, JcpcrJs cr thc rcsults cj this prcjcrt. SrhcJulcs
wcrc nct, crJ thct wcs c rhcllcrc. lt wcs cr cutstcrJir cjjcrt, crJ l hcvc thc hihcst rccrJ jcr thc Clcbcl tccn."
- kircrJc villccs, PFMFX Prcjcrt Mcrccr, ku-Mclccb-Zccp
At c tcrs ccrh, thc thrcc PlFMs pcscJ rhcllcrcs cj
thcir cwr. 1hcy crc scnc cj thc lcrcst built, cbcut thrcc
tincs thc stcrJcrJ sizc, rcquirir c spcricl bcrc tc lccJ
thcn. 0rrc plcrcJ cr thc silty sccbcJ, thcy wcrc
prcrtirclly inpcssiblc tc ncvc. 1hc PlFM irstcllcticr
wcs JcsircJ tc Jclivcr thc rcctcst crrurcry pcssiblc,
rcquirir c pcsiticrir tclcrcrrc cj crly crc nctcr.
Clcbcl 0jjshcrc Mcxircs cnplcyccs
pcrjcrncJ with cutstcrJir prcri-
sicr urJcr rritircl tinc crJ prcJur-
ticr srhcJulcs.
1he Ku-Ma|eeb-Zaap preject is censidered a mede| ef safety and preductivity -
ene ef the mest cha||enging ef its kind ever deve|eped in Mexice.
Preject 5ummary
Mexlco's natlonal oll company, PFMFX, turned to 0lobal for a solutlon to one of the most
challenglng pro|ects of lts klnd ever developed ln Mexlco. Cea|: Located ln the 8ay of
Campeche, Cantarell ls Mexlco's most lmportant feld and the largest source of crude oll ln
the natlon. A mature development, productlon levels have started to decrease, so PFMFX
must develop new pro|ects such as Ku-Maloob-Zaap to counteract Cantarell's productlon
decrease. The ob|ectlve of the Ku-Maloob-Zaap pro|ect ls to lncrease lts productlon from
oo,ooo to Soo,ooo barrels of crude oll per day. Prepesa|: A o mllllon dollar plpellne and
Plpellne Fnd Manlfold (PLFM) lnstallatlon contract provldes the lnfrastructure llnklng slx
exlstlng platforms to the 0ulf of Mexlco's frst Floatlng Productlon and Storage 0ffoadlng
(FPS0) vessel. At 6 meters long, 6,ooo metrlc tons and storage for z.z mllllon
barrels of crude oll, thls FPS0 has the world's hlghest productlon capaclty.
Cha||enge
To feed the masslve foatlng structure, the pro|ect requlred the lnstallatlon of
fve large dlameter plpellnes ln a dlffcult envlronment, wlth uneven terraln and
underwater currents.
5e|utien
Plles of rocks were lald ln rows (berms) to provlde a supportlng route for the plpellnes. 0lobal took a "llve englneer-
lng" approach to enhance effclency, multl-beam data was lmported from the seabed survey as englneers slmultane-
ously modeled the dlfferent confguratlons of rock and plpellne placement. The team was able to mlnlmlze the
amount of rock, fnd acceptable levels of stress and frlctlon, and construct the optlmal route for the plpellne.
Resu|ts
5afety: 0lobal's Ku-Maloob-Zaap operatlons have been a
model for safety and productlvlty, all whlle performlng to
a tlght schedule and wlthln budget. The 0lobal 0ffshore
Mexlco team, worklng over four mllllon man-hours wlth no
recordable safety lncldents, completed the mechanlcal
operatlons for the complex pro|ect ln under one year, well
ahead of schedule. Preductivity: 8y provldlng on-slte engl-
neerlng staff, backed by round-the-clock operatlons support,
the team was able to optlmlze routlng, achleve outstandlng
productlvlty and save PFMFX tlme and money.
1hc 1itcr ll is c 0P vcsscl with cr 8cc-tcr rrcrc crJ
thc rcpcrity tc crrcnncJctc up tc 2c pccplc. Clcbcls
tccn wcrkcJ rcrtirucusly tc rcnplctc subscc rcnplc-
ticrs, lcrc Jicnctcr subscc tic-irs crJ vc lcrc
Jicnctcr pipclircs.
Clcbcl prcviJcs cxpcricrrcJ, rclicblc, ir-hcusc Jivir
scrvircs. 1hc ku-Mclccb-Zccp prcjcrt rcquircJ bcth surjcrc
crJ scturcticr Jivir, rcrsistir cj irstcllcticr cj lcrc
subscc tic-ir spccls, riscrs crJ riscr rlcnps.
To learn more, vlslt stanJ qyyy at 0TC.
Previous Page | Contents | Zoom In | Zoom Out | Front Cover | Search Issue | Next Page O
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Previous Page | Contents | Zoom In | Zoom Out | Front Cover | Search Issue | Next Page O
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_____________
Back
With offshore operations moving to
deeper fields, remote locations and
heavier oil, the ability to process fluids
at the seabed can radically change the
profitability of your fields.
Next Generation Subsea from FMC
Technologies makes it possible to
separate oil, gas, water and sand at the
seafloor, without the cost of lifting
all fluids to the surface. Subsea
processing, gas compression and
boosting enable efficient transfers of
hydrocarbons over greater distances,
eliminating the need for offshore
platforms in some fields.
The reality? You can boost production
and ultimate recovery rates from
existing fields and achieve the profit-
able development of new ones.
To learn more, visit Booth 1941 at
OTC. www.fmctechnologies.com
Enabling a New Reality
in Offshore Production
Next Generation Subsea
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If you would like to share your companys story and capabilities with our readers,
contact the PennWell Custom Publishing Group:
Custom Custom
Publishing Publishing
Roy Markum
PennWell Vice President Custom Publishing
713-963-6220 roym@pennwell.com
Supplemental to this issue:
(Click to download)
Smith Technologies invests millions of dollars and thousands of man-hours every year to
develop the latest state-of-the-art drill bits, downhole tools, application and modeling soft-
ware and accurate analytical services. Smiths extensive line of drill bits and downhole tools
are aimed at aiding the operator to drill the highest quality hole at the lowest possible cost
by increasing drilling performance, increasing reliability and reducing the level of uncertainty
and risk. Innovations in Drilling Technology highlights the companys various drill bit designs
and downhole applications as well as Smiths computer modeling and virtual testing software
to produce the optimal bit for specic applications.
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