GSP Extends Drilling Fleet with 2 New Jackups

- GSP Extends Drilling Fleet with 2 New Jackups

Thursday, September 01, 2011
Grup Servicii Petroliere

GSP announced its drilling fleet has been extended up to seven offshore mobile drilling rigs and a modular one. GSP Britannia (ex. Britannia) and GSP Fortuna (ex. G.H. Galloway) entered GSP's fleet in August.

GSP Fortuna is an ABS class three legged independent leg cantilever jackup rig reaching the maximum drilling depth of 25.000 ft and the maximum water depth of 300 ft. GSP Britannia is an ABS class four legged independent leg cantilever jackup rig reaching the maximum drilling dept of 20.000 ft and the maximum water depth of 200 ft.

GSP Britannia will support the company's Decommissioning and Plug and Abandon services in the North Sea. GSP provides cost effective, safe and efficient P&A services for the North Sea. Decommissioning has become a highly demanded service as more and more offshore fields are reaching the end of their lives.

GSP is the single source decommissioning solution providing a full range of engineering and decommissioning services as well as turnkey solutions with focus on safety and environmental preservation. Our company's expertise is sustained in this by the most rigorous HSE standards, which GSP uses in all its projects worldwide.

GSP also operates an extended and modern fleet of construction and heavy lift vessels as well as a large variety of offshore support vessels, SAT diving & ROVs to fully answer the offshore integrated services market demands worldwide.

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Lundin Extends Avaldsnes Field with Second Appraisal Well

- Lundin Extends Avaldsnes Field with Second Appraisal Well

Wednesday, August 31, 2011
Lundin Petroleum AB

Lundin announced that the second appraisal well, 16/2-7, has confirmed the extension of the Avaldsnes field approximately 5.5 kilometers south of the 16/2-6 discovery well and 4.5 kilometers south-west of the first appraisal well 16/3-4. The Avaldsnes field is located in license PL501 on the Norwegian Continental Shelf and is in communication with the recently announced Aldous Major South discovery in PL265 to the west.

The second Avaldsnes appraisal well encountered a gross reservoir column of excellent quality Upper Jurassic age sandstone of approximately 35 meters of which seven meters was above the oil water contact. A comprehensive coring and logging program has been performed which has confirmed excellent quality reservoir characteristics.

The appraisal well will now be sidetracked to obtain further reservoir information. The sidetrack will be completed by mid September. The well was drilled to a total depth of 2,500 meters MD and in a water depth of 113 meters.

Lundin Petroleum is using the semi submersible drilling rig Bredford Dolphin to drill the well.

Ashley Heppenstall, President and CEO of Lundin Petroleum commented, "The second Avaldsnes appraisal well results have confirmed the extension of the field to the south. We will, following the sidetrack, incorporate the results of the two well appraisal program and Statoil's Aldous Major South well in PL265 into our geotechnical models. We will then release a revised resource range from the previously announced 100 - 400 million barrels of recoverable of oil equivalent contained within PL501. The Avaldsnes /Aldous Major South discovery is already the largest discovery on the Norwegian Continental Shelf since the mid 1980s and I am confident has the potential to grow as the field is appraised. It is likely that a third appraisal well will be drilled on Avaldsnes during the fourth quarter of 2011."

Lundin Norway AS is the operator of PL501 with a 40 percent interest. Partners are Statoil Petroleum AS with 40 percent interest and Maersk Oil Norway with 20 percent interest.

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ITF Extends International Footprint with New Offices

- ITF Extends International Footprint with New Offices

Thursday, August 25, 2011
ITF

ITF is increasing its international footprint by opening two new offices in the Asia-Pacific region to drive new technology solutions to tackle global oil and gas challenges.

The Aberdeen headquartered organization is opening bases in Perth and Kuala Lumpur to unite technology developers with its membership of major oil and gas operators and has revealed plans to invest AUD $9 million (£5.7 million) in groundbreaking solutions there by 2015.

Peter Brazier has been appointed as regional manager for Australia, and will head up the office in Perth. With 30 years' industry experience, Mr. Brazier will promote the organization in the region and encourage more operators and service companies to join ITF.

He said, "ITF currently has a good position with major companies such as Woodside and Chevron already signed up as members, who see the benefits of collaborating on funding new technologies. However, there is a growing demand for next generation technologies that will recover hydrocarbons from increasingly challenging environments and I want to make sure that local companies benefit from the funding being offered. I'm looking forward to building strong relationships with oil and gas operators, innovative technology companies and academic institutions."

Mr. Brazier joins ITF following eight years at the Commonwealth Science and Industry Research Organization (CSIRO), where he held several prominent research managerial positions. This included secondment as chief executive of the Western Australian Energy Research Alliance and secondment as CEO of the research joint venture between WA:ERA and Woodside Energy.

Prior to this he also worked for companies including Woodside Energy and Halliburton Energy. Mr. Brazier is a member of the Society of Exploration Geophysicists, the Australian Society of Exploration Geophysicists, and Australian Petroleum Production & Exploration Association. Mr. Brazier will also facilitate a workshop at Offshore Convention: Australasia on Advances of Subsea Technologies in Australia this month.

ITF's regional director for the Middle East and Asia-Pacific, Ryan McPherson will oversee the Kuala Lumpur base with plans to appoint a full time technology analyst there next year.

Mr. McPherson said, "There is definitely an appetite for concerted technology development in Australia and Malaysia and our aim is to invest $9 million in new technologies over the next four years. We are extremely pleased to welcome Peter to the team and are certain his extensive network of contacts and industry knowledge will enable us to successfully bring more technology to market."

The new offices come as ITF also issues a Call for Proposals for subsea technologies. This was the result of a Technology Challenge Workshop which took place in Perth in June.

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Statoil Extends Eidesvik Contract

- Statoil Extends Eidesvik Contract

Friday, August 19, 2011
Eidesvik Offshore

Statoil has declared its option for one year extended period for the Time Charter party with Eidesvik, (through its subsidiary Eidesvik Shipping AS), for the environmental friendly LNG power PSV Viking Queen. The extended period starts primo November 2011. Statoil has further two optional yearly extended periods on this contract.

Statoil ASA has also declared a one month extended period for the Time Charter Party for the PSV Viking Athene.

Photo Taken by Viking Athene from Viking Queen

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Rockhopper Extends Sea Lion Find West

- Rockhopper Extends Sea Lion Find West

Tuesday, August 09, 2011
Rockhopper Exploration plc

Rockhopper provided an update on the 14/10-6 appraisal well. The third appraisal well on the Sea Lion feature was drilled 4.1km to the west of the 14/10-2 discovery well on license PL032 (100% Rockhopper) and to a total depth of 2706m (drilled depth).

• Sea Lion Main Fan Complex
  • Results at upper end of expectations
  • Well confirms significant reservoir development and hydrocarbon charge within Rockhopper's currently interpreted Sea Lion mid-case area
  • Wireline log analysis indicates Sea Lion main fan net oil pay is 36.4m (119 feet)
  • Gross reservoir interval in Sea Lion main fan is 42m (138 feet) with net to gross of 87%
  • Management interprets this well as confirming Sea Lion main fan is full to spill
  • Reservoir quality good:
    • average porosity 21.6%, maximum 28.8%
  • Average Sw (water saturation) 21%
  • No oil water contact observed in the Sea Lion main fan
  • Formation pressure tests indicate reservoir at the well in communication with wells 14/10-2, 14/10-4 and 14/10-5
  • Downhole fluid samples collected confirmed as oil
  • Following this well, the board considers Sea Lion to be commercially viable
• Sea Lion Lower Fan Complex
  • Well developed lower sand package (sand B15) intersected beneath oil water contact of -2477m tvdss (total vertical depth subsea) and was water wet with no shows
  • 34m (112 feet) gross reservoir package with 85% net to gross
  • Reservoir quality good:
    • average porosity 20%, maximum 25.3%
  • Sand B15 showed significant thickening away from wells 14/10-2 and 14/10-5 as prognosed
  • Formation pressure tests indicate B15 sand to be in pressure communication with the Sea Lion main fan complex giving significant updip exploration potential
  • Deeper thin lower fan sands penetrated in wells 14/10-2 and 14/10-5 showing a separate deeper oil column not developed at this well location

Well 14/10-6 was designed to investigate reservoir and hydrocarbon presence within the Company's mid-case Sea Lion mapped area. 14/10-6 was the first well to penetrate the Sea Lion main fan to the west of the mapped structural low that runs north-south through Sea Lion. The well has been highly successful, proving a thick, high quality reservoir package and a substantial oil column.

Wireline logging operations have been completed. A number of mini DST (downhole Drill Stem Tests) were carried out within the main fan complex and oil was successfully flowed from the main fan. The results will now be interpreted and integrated with other wireline logging data to give an estimate of the potential well productivity. The Company does not consider it necessary to perform a full production test and the well will now be plugged and abandoned.

Once the results of this well have been integrated into the fast-track seismic covering the southern portion of licenses PL032 and PL033, a further announcement will be made detailing the seismic interpretation and the implications of well 14/10-6 for management estimates of resources within Sea Lion.

Upon completion of operations on 14/10-6 the Company intends to drill an exploration well 3.3km to the North West of the discovery well 14/10-2, outside of the Sea Lion Discovery Area. The well is designed to investigate the presence of reservoir and hydrocarbon charge towards the northernmost currently mapped extent of the Sea Lion Main fan.

Sam Moody, Chief Executive, commented, "The results of this well are at the upper end of expectations for the Sea Lion main fan complex and we are delighted to see these oil charged sands extending to the west as prognosed. The thickness and quality of reservoir encountered in the lower fan complex gives additional potential updip."

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TGS Extends Seismic Acquisition in Barents Sea

- TGS Extends Seismic Acquisition in Barents Sea

Tuesday, July 26, 2011
TGS-NOPEC Geophysical Co. ASA

TGS has commenced the acquisition of an extension of its multi-client 3D seismic data in the Hoop Fault Complex area of the Barents Sea. This extension is to the west of the previously announced industry funded Hoop Fault Complex survey and will add 3,391 km2 to the existing data in the area. Upon completion of the expanded project, TGS will have over 7,300 km2 of contiguous multi-client 3D data over the Hoop Fault Complex. In conjunction with this multi-client survey, TGS will also acquire approximately 1,100 km2 of seismic data on a proprietary basis for a TGS customer.

Acquisition of the data will be performed by the M/V Polar Duke towing 10 x 6,000 m streamers with 75 m cable separation and acquisition is scheduled to complete during early 4Q 2011. Data processing will be performed by TGS and will be available to clients from 2Q 2012.

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CNOOC Extends Oil Sands Presence with $2.1B Deal

- CNOOC Extends Oil Sands Presence with $2.1B Deal

Wednesday, July 20, 2011
CNOOC Ltd.

CNOOC has entered into an Arrangement Agreement to acquire OPTI Canada Inc ("OPTI"). The aggregate value of the consideration of the transaction is approximately US $2.1 billion, which includes aggregate cash consideration of US $1.25 billion payable to the holders of the OPTI shares (US $34 million) and the Second Lien Noteholders (US $1.216 billion). In addition, due to a change in control of OPTI as a result of the transaction, OPTI will be required to offer to repay the holders of its outstanding First Lien Notes (US $825 million in principal amount) pursuant to the indentures governing the First Lien Notes. The transaction will be effected by way of a plan of arrangement through concurrent proceedings under the Companies' Creditors Arrangement Act (Canada) and the Canada Business Corporations Act.

The proposed transaction must be approved by the Second Lien Noteholders at a special meeting that is expected to be held in September,2011. Noteholders representing approximately 55.2% of the principal amount of the Second Lien Notes have executed support agreements pursuant to which, among other things, they have agreed to vote in favour of the transaction.

The proposed transaction is also subject to certain terms and conditions, including, among other things, applicable government and regulatory approvals by the relevant authorities in Canada and the People's Republic of China, and Canadian court approval. The transaction is expected to be completed in the fourth quarter of 2011. Upon completion of the transaction, OPTI will become an indirect wholly-owned subsidiary of the Company, and all of the Second Lien Notes will be transferred or assigned, directly or indirectly, to a subsidiary of the Company. All existing options, warrants and other rights to purchase OPTI shares will be cancelled.

The principal asset of OPTI consists of a 35% working interest in the Long Lake and three other project areas located in the Athabasca region of northeastern Alberta. Long Lake project includes steam assisted gravity drainage ("SAGD") Operation and an Upgrader. Nexen Inc. ("Nexen"), a Canadian-based global energy company, holds the remaining 65% and is the sole operator. The Long Lake SAGD Operation is expected to have through-put rates of approximately 72,000 barrels per day of bitumen at full production. It is anticipated that the Long Lake Upgrader will ultimately produce approximately 58,500 barrels per day of products, primarily Premium Sweet Crude (PSCTM).

As disclosed in OPTI's disclosure documents filed with securities regulatory authorities in Canada, OPTI's working interest share, before royalties, of raw bitumen reserves and resources on its oil sands leases is estimated to be 195 million barrels of proved reserves, 534 million barrels of probable reserves, 1,100 million barrels of contingent resources and 335 million barrels of prospective resources. These reserves and resources are estimated to be sufficient to support approximately 430,000 barrels per day (150,000 barrels per day net to OPTI) of bitumen production.

Mr. Yang Hua, Chief Executive Officer of the Company stated, "The transaction strengthens our Canadian presence in the oil sands business. We believe that upside potential of the assets will facilitate local energy supply and our production growth in the long term.

"We are pleased to expand our presence in the oil sands business after our successful investment in MEG. We believe that the upside potential of the acquired assets will benefit the shareholders of CNOOC Limited."

Mr. Li Fanrong, President of the Company said, "We look forward to working with our new partner Nexen, to optimize value from the Long Lake Project and the three other jointly owned oil sands leases."

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Key Extends Eagle Ford Footprint with Acquisitions

- Key Extends Eagle Ford Footprint with Acquisitions

Thursday, July 14, 2011
Key Energy Services Inc.

Key Energy has reached a definitive agreement to acquire Edge Oilfield Services and Summit Oilfield Services (collectively "Edge") for consideration of approximately $300 million, consisting of approximately 7.5 million shares of Key common stock and approximately $164 million in cash, which is subject to working capital and other adjustments at closing. Key anticipates funding the cash portion of the consideration from available cash and borrowings under its credit facility. In addition to the $300 million of consideration, Key has also agreed to reimburse or fund up to $40 million of Edge's pre-closing capital expenditures related to Edge's expansion into the Eagle Ford shale, which began generating revenue this quarter.

The closing of this transaction, which is expected to occur this quarter, is subject to customary conditions including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

Edge primarily rents frac stack equipment used to support hydraulic fracturing operations and the associated flow back of frac fluids, proppants, oil and natural gas. It also provides well testing services, rental equipment such as pumps and power swivels, and oilfield fishing services. Following the close, Edge's results will be reflected within Key's existing Fishing & Rental Services line of business, which is included in its U.S. reportable segment.

Key's Chairman, President, and CEO, Dick Alario, stated, "Edge's high performance frac stack equipment enjoys strong growth opportunities, particularly in unconventional shale markets. Furthermore, its high revenue and profit per employee fits with our overall investment strategy and should prove beneficial, especially in today's tight labor market."

Alario continued, "Edge's existing business currently generates an annual EBITDA run rate of approximately $65 million. With the expansion into the Eagle Ford that is already underway, Edge believes its EBITDA run rate will be approximately $80 million by year-end 2011. We anticipate Edge's business to be accretive to Key's margins and earnings beginning in 2011. With Edge's experienced oilfield industry veterans, we intend to aggressively expand Edge's service offerings across Key's existing infrastructure, particularly in emerging unconventional shale markets."

Edge's CEO, Darrell Brewer, stated, "We look forward to becoming a part of Key, a high quality, industry leading company, where we can better leverage our business potential via Key's extensive U.S. footprint and financial resources and where our employees will continue to enjoy a bright future."

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Maersk Extends Rig Fleet with $1.3B Drillship Order

- Maersk Extends Rig Fleet with $1.3B Drillship Order

Tuesday, July 05, 2011
A.P Moller - Maersk Group

Maersk Drilling, a business unit within the A.P. Moller- Maersk group, has declared its option to build two ultra deepwater drillships at Samsung Heavy Industries in South Korea.

The drillships are scheduled for delivery in the second and third quarters of 2014, respectively. The total project cost for the two drillships is approximately USD 1.3 billion, which includes a turnkey contract with the yard, owner furnished equipment, project management, commissioning, start-up costs and capitalized interest. Simultaneously, Maersk Drilling has obtained a new option for the construction of two additional drillships.

"We have an ambition of becoming one of the leading drilling contractors in the ultra deepwater segment and this order is another important step in taking a bigger share of this attractive market segment," said Claus V. Hemmingsen, CEO of Maersk Drilling and member of the Executive Board of the A.P. Moller – Maersk Group. "The order reflects our commitment to grow our rig fleet enabling us to serve our customers in the ultra deepwater segment on a more regular basis," Claus V. Hemmingsen continued.

Year to date, Maersk Drilling has invested USD 3.8 billion in two new jack-up rigs and four drillships.

Maersk Drilling had a revenue of USD 1.6 billion and a profit of USD 399 million after tax in 2010.

Hemmingsen sees a strong market for deepwater drilling rigs as the global demand for oil is increasing while at the same time production from mature fields is declining.

"This means that about six times the current Saudi production must be brought on stream over the next 20-25 years which will drive a solid growth in the demand for drilling services. The main part of this growth will take place in frontier areas such as deepwater," he said.

The two drillships will be of similar design to the two drillships Maersk Drilling ordered from Samsung in April 2011. The 228 meter long drill ships will be able to operate at water depths up to 12,000 ft (3,650 m) and will be capable of drilling wells of more than 40,000 ft (12,200 m).

Similar to the design philosophy on Maersk Drilling's ultra deepwater semi-submersibles the drillship design includes features for high efficiency operation including a dual derrick, which allows for parallel and offline activities. The extensive storage areas and tank capacities provide an advantage when operating in areas with less developed infrastructure and limited presence of suppliers. Together with the higher transit speed the increased capacity will reduce the overall logistics costs for the oil companies. The drillships will have accommodation capacity for 230 people.

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Pacific Drilling Extends Option for 7th Drillship

- Pacific Drilling Extends Option for 7th Drillship

Thursday, June 23, 2011
Pacific Drilling S.A.

Pacific Drilling has reached an agreement with Samsung Heavy Industries to extend until October 31, 2011 an option to construct a seventh ultra-deepwater drillship.

With its best-in-class drillships and highly experienced team, Pacific Drilling is a fast growing company that is dedicated to becoming the preferred ultra-deepwater drilling contractor. In addition to three ultra-deepwater drillships delivered to date, Pacific Drilling expects delivery of an additional drillship in August 2011 and has two drillships on order at Samsung for delivery during 2013.

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Shell Extends Ormen Lange Contract with AGR

- Shell Extends Ormen Lange Contract with AGR

Tuesday, June 21, 2011
AGR Group ASA

Norske Shell AS is extending its use of AGR's deep-water excavation technology and expertise on the Ormen Lange field.

Originally, a £9m (NOK84m) deal announced in February between the Aberdeen-based Excavation & Trenching arm of AGR Drilling Services and Norske Shell was to last until June 2, 2011.

Now Norske Shell has called upon AGR to provide its excavation spread for a further 48 days. This extends the contract until July 20, with further options until August 20. The extension to July 20 increases the contract value to approximately £16m (NOK141m).

AGR's ClayCutter X™ route preparation tool is being used on the project to excavate seabed highs.

Its powerful seawater jetting system will enable Shell to install the Ormen Lange Northern template, plus associated pipelines and umbilicals.

Despite the short turnaround period between the awarding of the contract in February and arrival in the field in early May, vessel mobilisation was completed safely and on schedule.

AGR's VP of Excavation & Trenching, John Sands, said, "We are delighted to receive this substantial increase in scope from Shell. The ClayCutter X™ spread has again proven its ability to add value to subsea projects. Shell's fast-track approach to the project presented a number of challenges which were met to the client's complete satisfaction."

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Noble Extends Footprint in West Africa

- Noble Extends Footprint in West Africa

Wednesday, June 08, 2011
Noble Energy Inc.

Noble has joined a venture that is exploring the AGC Profond block located offshore Senegal and Guinea-Bissau in West Africa. The AGC Profond block, covering more than two million gross acres in water depths up to 11,500 feet, is in a designated cooperation area between the two countries. The venture has identified a number of prospects and leads on the acreage. Approximately 45 percent of the block is covered by existing 3D seismic.

The first target to be drilled is the Kora prospect in the northern part of the block, nearly 65 miles offshore in approximately 8,600 feet of water. The Kora prospect has a Cretaceous oil target with gross resources estimated at 450 million barrels of oil equivalent. The chance of success at the prospect is estimated by Noble Energy to be 20 percent. Total well depth is planned to be approximately 15,200 feet. Drilling is anticipated to begin in late June 2011 utilizing the Maersk Deliverer rig, with results expected by the end of August 2011.

David L. Stover, Noble Energy's President and COO, commented, "We are pleased to be adding this new exploration area to the portfolio. Offshore West Africa is a region where the industry has had numerous recent exploration successes, including our own offshore Equatorial Guinea and Cameroon. The AGC Profond block is an area that has not previously been explored and we believe it has significant oil potential. Our new ventures team did a great job of capturing this opportunity for Noble Energy, expanding our already large exploration inventory."

Ophir will operate the Kora-1 exploration well and, in the event of a discovery, Noble Energy will become the operator for appraisal and development activities. Noble Energy has a 30 percent working interest. Other interest owners are Ophir with 36.7 percent, Rocksource AGC Profond AS with 12.5 percent, and FAR Ltd. with 8.8 percent. The remaining interest is held by L'Entreprise, the AGC state-owned entity, with 12 percent.

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Tag Extends Mt. Messenger Play with Oil Discovery

- Tag Extends Mt. Messenger Play with Oil Discovery

Tuesday, June 07, 2011
TAG Oil Ltd.

TAG Oil reported that the recently drilled Cheal-C1 exploration well has now set production casing to total depth, in order to production flow test the light oil potential identified in both the Mt. Messenger (~1600m), and the deeper Moki (~2,200m) formation targets. The Cheal-C1 well was drilled directionally from the new "Cheal-C site" in TAG Oil's Petroleum Mining Permit 38156 (PMP 38156) in the Taranaki Basin, New Zealand.

The Cheal-C1 well was drilled approximately 3.5 km to the northwest of the existing Mt. Messenger producing wells, with results extending the Mt. Messenger oil saturation area over a considerably larger area than previously known. Over 15 meters of net oil-and-gas bearing sandstones were intercepted in the Mt. Messenger with good porosity and free oil encountered while drilling through the zone.

The Mt. Messenger was the primary objective of the Cheal-C1 well however it was deepened to a total depth of 2382 meters (7815 feet), to test the down-dip edge of a large closure within the deeper Moki Formation. Strong oil and gas shows were encountered within a 73-meter thick, high quality section of porous and permeable sandstone. Any future wells directly targeting this Moki Formation structure will be drilled in an updip position, which could potentially intersect substantially more of the hydrocarbon-charged Moki sandstones.

"We are very pleased to have extended the Mt. Messenger play into the "C" block, and look forward to further exploiting this oil-prone area," TAG Oil CEO Garth Johnson commented. "We're also very optimistic about the Moki Formation discovery potential, which is a prolific oil producer in the offshore Maari oil field. However, very few wells have targeted this formation onshore so we will need flow-test data before any conclusions are reached in regards to its commercial potential."

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TGS Extends Seismic Contract for M/V Polar Duke

- TGS Extends Seismic Contract for M/V Polar Duke

Friday, June 03, 2011
TGS-NOPEC Geophysical Co. ASA

TGS has exercised the first option for the M/V Polar Duke with Dolphin Geophysical AS. This extension is for two months which will take the total charter time to TGS through early October 2011. TGS still has a second option to extend the contract by an additional six months.

The project that the M/V Polar Duke will acquire will be announced separately.

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Eni Extends Footprint in Indonesia

- Eni Extends Footprint in Indonesia

Monday, May 23, 2011
Eni S.p.A.

In the 2nd Indonesian International Bid Round 2010, Eni has been awarded the 100% participation interest and operatorship of Block Arguni I located on and offshore in the West Papua Province, Eastern Indonesia.

The Block Arguni I covers an area of 5,386 square km in the Bintuni Basin, a mainly gas prone, prolific hydrocarbon province, with several giant gas discoveries already in production. The deal involves the drilling of 2 wells and the carrying out of 500 km of 2D and 200 square km of 3D seismic surveys during the first 3 years of exploration. The Tangguh LNG processing facility is located about 10 km west of the Arguni I acreage.

This award confirms Eni as one of the major oil companies committed to invest in E&P activities in Indonesia. Eni has recently made an important discovery at Jangkrik in the offshore Kutei (Muara Bakau PSC), which has been successfully appraised and whose POD is currently being submitted.

Eni has been operating in Indonesia since 2001. The company holds working interests in twelve permits and operates six of them. The offshore activities are located in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra and West Timor. In the Kutei Basin, Eni is also participating in the development of the significant gas reserves located in the Ganal and Rapak blocks.

Other activities are located in the Mahakam River Delta, East Kalimantan. Eni has an equity production of approximately 20,000 boed in this area and has been awarded an interest in Sanga Sanga CBM, a new coal-bed methane production sharing contract (PSC), through its operated joint venture affiliate VICO CBM Limited (Eni 50%, BP 50%). The coal-bed methane coming from Sanga Sanga would be liquefied at the Bontang plant, representing the first LNG facility to be supplied with CBM.

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ABS Extends Global Reach with New Norway Office

- ABS Extends Global Reach with New Norway Office

Friday, May 20, 2011
ABS

ABS announced the opening of an office in Stavanger, Norway to further extend its global reach and provide dedicated support to its growing Norwegian client base.

Known for its leadership in offshore classification and technology, the society's Stavanger office will be staffed with a professional team of offshore engineers and surveyors focused on delivering premium class service to the region.

"The opening of this office is part of ABS' ongoing commitment to deliver uncompromising service to our clients," said Christopher J. Wiernicki, ABS Chief Executive Officer and President. "Given the dynamic operating environment, our clients want us more integrated into their operational and safety program and to do that effectively, we need this local presence. For ABS it is an opportunity to better serve the industry and build upon our strong ties with the Norwegian Maritime Directorate (NMD)."

In 2009, the NMD extended its authorization to ABS to include mobile offshore drilling units (MODUs) in its scope as a Recognized Organization (RO).

Country Manager for Norway Egil Legland says he and his team look forward to building and expanding the relationships ABS has in Norway. "It's not just the office – ABS just released several new services and programs that clients have been requesting including the Offshore Asset Integrity Management (OAIM) program, says Legland. The OAIM program better leverages classification services and addresses other client needs by planning, tracking and servicing the structure and equipment throughout the life of the offshore unit.

"We recognize that today's high specification rigs require the highest operational standards," said Legland. "Owners are looking to ABS because of our experience, commitment and the service and programs we can offer to support an asset during the operational phase, not just during design and construction."

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Trinidad Drilling Extends Rig Contract Terms

Trinidad Drilling Extends Rig Contract Terms

Monday, May 16, 2011
Trinidad Drilling Ltd.

Trinidad Drilling has re-signed long-term, take-or-pay contracts with expanding gross margins on 24 existing rigs.

"Trinidad is known in the industry for its modern, technically advanced equipment that performs well in today's challenging drilling environment," said Lyle Whitmarsh, Trinidad's President and Chief Executive Officer. "Our ability to re-sign our equipment to multi-year, take-or-pay contracts and lock in improving market conditions reflects the ongoing demand for our equipment and our track record of high performance."

As a part of its strategy to manage cyclicality in the drilling industry, Trinidad maintains a blend of long-term and spot market exposure over its fleet. This blend provides revenue stability during weak industry conditions, while also allowing the Company to participate in the upside as conditions improve. In line with this strategy, Trinidad recently completed contract negotiations on 17 rigs which were due to expire at the end of 2011. These rigs have now been re-signed with the same customer for an additional three year term at 100% utilization at increased dayrates. The successful re-contracting of these rigs reflects the increasing demand for high quality drilling equipment such as Trinidad's. In addition, Trinidad has re-signed another seven rigs, including four rigs that will be moved to the Powder River basin in Wyoming, creating a new operating area for Trinidad. These seven rigs have also been contracted for three years at 100% utilization.

The re-contracted rigs were largely built over the past five years and backed by long-term, take-or-pay contracts associated with their construction. Trinidad's ability to extend its initial contracts reflects the high quality of its equipment and the top performance it has been able to provide its customers. It also demonstrates the ongoing adaptability of the equipment to existing and emerging development areas.

Including the rigs being constructed in 2011 and the re-signed contracts, Trinidad has 52% of its fleet under contract with an average term remaining of approximately 2.3 years. Following the completion of the rig build program, Trinidad will have a total of 122 drilling rigs with 56 rigs in Canada, 63 rigs in the US and 3 rigs in Mexico.

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BP Migas Extends Contracts of Four PSC Holders

BP Migas Extends Contracts of Four PSC Holders

Thursday, May 05, 2011
Asia Pulse Pte Ltd

Indonesian upstream oil and gas regulator BP Migas announced Wednesday that the government had extended contracts with four production sharing contract (PSC) holders in 2011.

The four PSC holders were Camar Resources Canada for the Bawean block in East Java, PT Medco E&P Malaka for Block A in Aceh, Husky Oil (Madura) Limited for the Madura strait block and PT Medco E&P Indonesia for the South Sumatra Central Sumatra Area block.

The government has extended contracts with those PSC holders, said BPMigas spokesperson Elan Biantoro over the phone.

In addition to the four blocks, the government will also extend the contract of the West Madura offshore block, currently operated by Korea-based Kodeco Energy. The contract will expire on May 6.

BPMigas has recommended that the government grant the right to operate the block to state oil and gas firm PT Pertamina, the Jakarta Post newspaper said.

Oil & Gas Post

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American Standard Extends Presence in Bakken/Three Forks

American Standard Extends Presence in Bakken/Three Forks

Tuesday, April 26, 2011
American Standard Energy Corp.

American Standard has entered into a definitive agreement to acquire an additional 11,775 net leasehold acres in the Bakken/Three Forks. The acquired leasehold acreage is located within seven (7) counties widely considered to be the 'fairway' for the Bakken and Three Forks formations; and particularly increases ASEN's holdings in Mountrail, Stark and Williams Counties. This portfolio of leases includes a large number of working interest positions in the 5-15% range, multiple 20% working interests and two at 100%.

Scott Feldhacker, CEO of American Standard Energy Corp. commented, "This is another major acquisition for our company that increases our Bakken/Three Forks holdings to over 31,000 acres and further advances our strategic profile in the region. This major addition to our lease portfolio increases our current revenue and reserve outlooks and also has potential to increase our well count and production rates for 2012. As a result of this acquisition, ASEN will have six controlling interest positions in the Bakken/Three Forks formations available for development or exchange.

This acquisition works to establish a heightened awareness of ASEN as an effective consolidator of lease acreage around, under and within the development path of key operators such as Brigham, Continental, EOG, Whiting and Petro-Hunt; and further qualifies ASEN as a preferred partner for these quality operators."

Pride Extends Option for Construction with Samsung Heavy

Pride Extends Option for Construction with Samsung Heavy

Friday, April 01, 2011

Pride International Inc.

Pride has reached agreement with Samsung Heavy Industries, Ltd. to extend Pride's option for the construction of a sixth ultra-deepwater drillship by 30 days. The extension of the option period does not impact the estimated unit construction cost or delivery schedule determined in December 2010, upon the order by Pride of a fifth ultra-deepwater drillship. The option may be exercised by the company on or before April 30, 2011, unless further extended on mutually agreed terms.