Oliver Valves Seals Supply Deal with Brazilian Co

- Oliver Valves Seals Supply Deal with Brazilian Co

Friday, August 26, 2011
Oliver Valves

Oliver Valves has secured a £7.2m deal to supply two projects for Brazil's leading oil and gas firm.

The deal, which is the biggest single contract in the firm's 30-year history, is for delivery of 391 valves, ranging in size from 2" to 12" in diameter.

Delivery of the first units has already begun and all installations are scheduled to be completed by September 2012.

The valves will be used on two Floating Production, Storage and Offloading (FPSO) vessels operating of the coast of Rio de Janeiro.

David Cornwell, managing director of Oliver Valves, said, "This is a landmark contract for the business as it is not only the biggest we have ever secured but it also represents a major success in an international market that is relatively new to us.

"Just five years ago, Brazil was hardly even on our radar in terms of sales, but this year it will generate more revenue for the business than any other territory.

"We secured this project on the basis of our technical ability, rather than by beating our competitors commercially.

"We undertook nine months of specification work before securing the project and we committed the time up front to ensure we would be delivering the best possible solution.

"This approach has clearly paid off and this demonstrates that it is possible for British manufacturers to compete internationally by outperforming others in terms of quality, if not always on price."

The win follows a series of other international contract wins in 2011 including a £1 million order to supply subsea valves for a project in the Gulf of Mexico, a separate £800,000 order from a major Brazilian oil company, and Oliver Valves' first subsea contract in Chinese waters – worth £400,000.

David Cornwell said, "We have achieved a lot of success in securing new orders in the past six months, and delivering these projects will mean increasing the capacity of the business through significant recruitment."

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Beach Seals Tie-In Deal with Senex

- Beach Seals Tie-In Deal with Senex

Friday, August 19, 2011
Beach Energy Ltd.

Beach has signed an agreement with Senex to tie-in the Growler Field (Beach 40%) to the Lycium oil field. It has also agreed with Senex to construct a trunkline from Lycium to the Moomba facility, however, the tie-in of this section remains subject to approval from the South Australian Cooper Basin (SACB) Joint Venture (~Santos Ltd 67%, Beach 20%, Origin Ltd 13%).

It is anticipated that the flowline from the Growler Field will be constructed in two main sections. The first section, directly from the Growler Field to the Lycium oil field, will consist of a six inch flowline with an initial capacity of approximately 8,000 barrels of oil per day. The equity interests for this section of flowline will be Beach 40% and Senex 60%.

Pending approval from the SACB Joint Venture, the main trunkline will service the whole of Beach's operated and non-operated Western Flank acreage and is planned to run between Lycium and the Moomba facility. The capacity of this eight inch trunkline is expected to be in the order of 15,000 barrels of oil per day. The equity interests for this section will be Beach 60% and Senex 40%.

Beach will undertake both the construction and operatorship of the flowlines, with the total cost of approximately $40 million to be effectively shared between Beach and Senex.

These flowlines will provide Beach with access to the Growler Field during times of flooding in much the same way it has for Beach's PEL 92 acreage during the recent flooding events. The second trunkline will also provide for increased production flows from Beach's operated PEL 91 and PEL 92 acreage as a result of recent development, appraisal and exploration success in the area.

The six well approved exploration program set down for PEL 104 and PEL 111 is expected to commence in October 2011, when flood waters are forecast to recede to levels where access can be restored. A number of Birkhead targets have been identified by the Operator which has had an exploration drilling success rate of 80% in the acreage to date.

The tenure of the Beach Operated Western Flank PEL's 91 and 92 have been granted a twelve month extension by PIRSA in acknowledgment that flooding has delayed exploration in the area. It is expected that the flowlines will be commissioned around June 2012.

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W&T Offshore Seals Stake in Shell's Fairway Field, Yellowhammer Facility

- W&T Offshore Seals Stake in Shell's Fairway Field, Yellowhammer Facility

Thursday, August 11, 2011
W&T Offshore Inc.

W&T Offshore has closed its acquisition of Shell Offshore's 64.3% interest in the Fairway Field along with a 64.3% interest in the associated Yellowhammer gas processing plant, with an effective date of September 1, 2010. This acquisition was part of a larger transaction between Shell and W&T for three Gulf of Mexico deepwater producing fields known as Tahoe, SE Tahoe, and Droshky. As of the close date, the adjusted purchase price paid for the Fairway Field and Yellowhammer gas plant, as adjusted on the preliminary closing statement, was approximately $36.7 million, subject to further post-effective date adjustments and assumption of asset retirement obligations associated with these properties.

The Fairway Field is located in the shallow state waters south of Mobile Bay, Alabama and the Yellowhammer plant is located onshore in Alabama about 17 miles northwest of the Fairway Field. Current production, net to our interest in the Fairway Field, is approximately 19.5 MMcf of natural gas per day and 1,200 barrels of natural gas liquids per day or approximately 26.9 MMcfe per day, which was not included in previously provided production guidance. W&T's internal estimates of proved reserves associated with the acquired property as of June 30, 2011 are 39.4 billion cubic feet of natural gas and 2.5 million barrels of natural gas liquids, or 54.5 Bcfe. These reserves were based on SEC reserves definitions and pricing as of June 30, 2011.

Tracy W. Krohn, Chairman and Chief Executive Officer, commented, "This completes our acquisition from Shell and it serves to increase the borrowing base of our revolving bank credit facility by $50 million."

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Dynamic Offshore Seals Deal for 1st KFELS Jackup

- Dynamic Offshore Seals Deal for 1st KFELS Jackup

Monday, May 23, 2011
Keppel Corp. Ltd.

Keppel FELS has secured a contract with Vision Drilling Pte Ltd (Vision Drilling), a wholly-owned subsidiary of Dynamic Offshore Drilling Limited (Dynamic Offshore Drilling), to build its first KFELS B Class jackup drilling rig for US $180 million.

Slated for delivery in 1Q 2013, the rig will be able to operate in water depths of 350 feet with a drilling depth of 30,000 feet and accommodate 120 men.

Dynamic Offshore Drilling has the option to build an additional rig to be exercised before 3Q 2011.

Mr. Naresh Kumar, Chairman of Dynamic Offshore Drilling, said, "While this is Dynamic Offshore's first collaboration with Keppel FELS, we are no strangers to its excellent project execution and dedication to safe, on-time and within-budget deliveries. My team and I have previously worked very closely with the Keppel FELS team on two KFELS B Class jackup rigs which have been deployed under long term contracts with strong day rates with a Fortune 500 National Oil Company.

"After the Gulf of Mexico oil spill, oil companies around the world prefer newbuild premium rigs with enhanced safety features and equipment reliability. With over 60% of the current Jack up fleet over 25 years old, it is an impetus for us as experienced drilling contractors to invest in premium high quality jackups with the world's leading shipyard. We are looking forward to build a number of rigs with the strong partnership of Keppel FELS in the years to come".

Mr. Wong Kok Seng, Managing Director of Keppel FELS, added, "We are glad to be working with familiar partners. Mr. Kumar is highly respected in the industry and Dynamic Offshore Drilling is backed by a recognised team of professionals.

Customers come to us because of our award winning products, excellent execution of projects and our commitment and ability to deliver rigs of the highest standards. In building their first rig to our KFELS B Class design, we are pleased to be able to support them in meeting the market requirements of newer rigs with superior technical and safety capabilities."

With 33 such units delivered worldwide, the KFELS B Class design continues to be the preferred jackup choice for drilling operators.

John Gellert, President of Seacor Marine LLC ("Seacor") and Board Member of Dynamic Offshore Drilling said, "Seacor is pleased to be a part of the project as an investor and joint venture partner in Dynamic Offshore Drilling. With the long term rising demand for premium jackups, we are looking forward to the development of the company (Dynamic Offshore Drilling)."

Dynamic Offshore Drilling's rig is equipped with enhanced features to expand the operational coverage of the rig. Provisions have been made for the rig to work in high pressure high temperature (HPHT) environments and have Offline Stand Building capabilities.

Developed by Keppel's technology arm, Offshore Technology Development, the KFELS B Class jackup design provides maximum uptime with reduced emissions and discharges. Its environmental-friendly features won the KFELS B Class design the prestigious Engineering Achievement Award from Institution of Engineers Singapore in 2009.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

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