Cargotec Enters Vietnamese Market with Mooring Contract

- Cargotec Enters Vietnamese Market with Mooring Contract

Friday, September 09, 2011
Cargotec

A contract for mooring equipment for a pipelaying barge marks Cargotec’s successful entry to the Vietnamese offshore market

In July this year, Cargotec won a contract from the joint stock company Vinh Nam (VAM JSC)/TECMACH to supply mooring equipment outfits for Vietsovpetro’s 110m-long by 30.5m-breadth pipelaying crane barge, Con Son. The 1969-built vessel is currently undergoing a conversion at Dung Quat Shipbuilding Industry Co Ltd.

“The signing of this maiden contract in Vietnam demonstrates our client’s confidence in our capability,” says Gavin Lim, Cargotec's director of sales for towing and mooring solutions. “It also marks Cargotec’s successful entry to the Vietnamese offshore market.”

As part of the conversion project, Cargotec will supply eight mooring winches complete with local and remote controls, tension and length-monitoring systems, hydraulic power packs, sheaves, and fairleads. The mooring equipment is scheduled for delivery at the beginning of 2012 and will be manufactured at Cargotec’s facility for offshore load handling in Singapore.

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Hess Boosts Utica Position with $750MM Acquisition

- Hess Boosts Utica Position with $750MM Acquisition

Thursday, September 08, 2011
Hess Corp.

Hess has acquired Marquette Exploration LLC and other leases in Ohio's Utica Shale, boosting its acreage position by 85,000 net acres at a cost of approximately $750 million.

The leases, in which Hess will have a 100 percent working interest, are in Jefferson, Harrison and Belmont counties. Appraisal activities on this acreage are planned to commence in the fourth quarter. Together with the previously announced joint venture with CONSOL Energy, the transactions provide Hess with approximately 185,000 net acres in the Utica Shale play.

"With these transactions, we have built a strategic acreage position in the Utica Shale, allowing us to strengthen our portfolio of unconventional resources in high quality assets, leverage our operating expertise and create significant potential for future growth in reserves and production," said John Hess, Chairman and CEO of Hess Corporation.

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Viking Moorings Inks 2-Year Agreement with Deep Sea Anchors

- Viking Moorings Inks 2-Year Agreement with Deep Sea Anchors

Wednesday, September 07, 2011
Viking Moorings

Viking Moorings has signed a two-year agreement with Norwegian company, Deep Sea Anchors (DSA) to supply its industry leading deep water 'torpedo' anchors to mooring installations worldwide. The announcement was made at Offshore Europe in Aberdeen where Viking Moorings is exhibiting in the Deep Water Zone.

The agreement, which will cover all regions of the world outside Norway, will allow Viking Moorings to provide an even greater breadth of integrated anchoring solutions to its clients with, once a suitable project is identified, an exclusive agreement with DSA put in place to supply it anchors.

The Deep Penetrating Anchor (DPA), also known as the 'torpedo' anchor, is a dynamically installed anchor which is released freely from a predetermined height over the seabed using gravity as the installation force. The anchor penetrates well below the mudline and sets into stiff clay sediments providing a secure and cost effective anchoring solution irrespective of water depths and allowing for both taut leg and catenary mooring installations.

Other benefits include simplified installation, precise positioning and the elimination of the need for hydraulic and electrical lines which are often used for traditional anchor installations.

"Viking is all about providing greater innovation, greater choice and the optimal mooring solution for our customers," said Viking Moorings Chief Executive – Mooring Solutions, Wolfgang Wandl.

"Having considered a number of our recent mooring installations to be ideal for torpedo anchoring, the formal teaming up with DSA, one of the few providers of such anchors, was an obvious fit. There's no better forum to showcase these new capabilities than the Deep Water Zone and Offshore Europe this year and we look forward to a mutually collaborative arrangement with DSA."

"Deep Sea Anchors is very pleased to have signed this agreement with Viking Moorings," said Ivar Erdal, CEO of Deep Sea Anchors. "Working with Viking Moorings is a perfect match for us, combining our unique anchoring solutions for soft seabed and deep waters with Viking Moorings' comprehensive mooring services and dedicated team of experts.

He continued, "Viking Moorings' knowledge and presence in many countries and regions where our DPA's can be applied with success and to the great benefit of clients was a major reason for entering into this agreement. Being a small and focused company, market entrance remains a challenge - a challenge which can be made easier through this agreement."

Using gravity, the DPA™ anchor starts its descent under cable control before accelerating at up to 100 kilometers per hour for the final 75 meter drop, shooting the anchor deep into the seabed sediments to attain sufficient holding capacity. The anchor penetrates typically 25-35m into stiff clay sediments thus allowing for taut leg as well as catenary mooring. The anchors are not affected by waves and can be deployed at depths of between 500 and 3000 meters. Deep Sea Anchors is based in Trondheim, Norway.

Viking Moorings provides total mooring solutions to operators and drilling contractors, consisting of initial mooring design and analysis, rig move procedures, risk assessments and safety approvals, equipment rental, installation and support, chain inspection, spooling services and logistics services, marine sales, repair and maintenance.

Through a comprehensive evaluation of seabed conditions, Viking Moorings decides upon the optimal anchoring solution for each client whether it be a DPA or more traditional anchoring solution. Other anchors that Viking Moorings supplies to its customers includes the Vryhof Stevpris MK6 and MK 5 anchors, the Vryhof Stevshark anchor, the Stevin anchor, the Bruce Twin Shank and Dennla MK4 anchors and a number of others.

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Watson: Energy Renaissance Possible with Right Regulatory, Tax Policies

- Watson: Energy Renaissance Possible with Right Regulatory, Tax Policies

Thursday, September 01, 2011
Rigzone Staff
by Karen Boman

Chevron Chairman and CEO John S. Watson said Wednesday that the U.S. is within reach of an energy renaissance that would unlock U.S. energy resources and generate economic growth if a rational, robust and comprehensive energy policy in the U.S. can be established.

"Such a policy would prepare us for rising demand, expand safe and responsible production at home and promote energy efficiency across the country," Watson told attendees at the Greater Houston Partnership luncheon in Houston. This policy also would encourage alternative sources, not by mandates and subsidies, but by allowing the market to identify the best new fuels and bring them up to commercial scale.

"Make no mistake – this is not the kind of energy policy we have today," Watson said. "To the extent that we have an energy policy, it is paralyzed by a fundamental contradiction. On one hand, there is wide consensus in America that we should strive for energy security. Whether we can be truly energy independent is debatable, but we can certainly do much more to enhance our country's energy security."

At the same time, the U.S. government has declared the Outer Continental Shelf on the east and west coasts off limits to new development, and regulatory agencies have put a strong collar on development pace in the U.S. Gulf of Mexico and Alaska.

Watson said the company is seeing progress with the Bureau of Ocean Energy Management, Regulatory and Enforcement's (BOEMRE) permitting process. While it has taken time for BOEMRE to decide on the standards for permitting and time for the energy industry to understand, Watson believes the permitting process will accelerate going forward. Still, exploration and production in the Gulf of Mexico "is still far short of where we should be."

Watson agrees with President Obama that the U.S. should support vigorous development of Brazil's oil and gas industry – where Chevron has partnered with Brazil's state energy company Petrobras for two major offshore Brazilian projects – but noted that "we have an even bigger opportunity to build a stronger oil and gas industry in the United States, with results like job creation, revenue growth and economic expansion directly benefiting U.S. citizens."

While Chevron has made significant investment in U.S. unconventional gas plays with its acquisition Atlas Energy, the company remains bullish on conventional oil and gas assets, including conventional assets in California and the deepwater Gulf of Mexico. The company has sanctioned $14 billion in deepwater U.S. Gulf projects despite the moratorium resulting from the Macondo incident in 2010.

Chevron will continue to make its headquarters in California, but is expanding its presence in Houston, with the recent acquisitions of buildings on Smith Street and Louisiana Street downtown. The most recent acquisition, the former YMCA building site, will give Chevron three buildings in the downtown area.

"I always like visiting Texas," Watson said. "It's a chance to catch up with business friends who have moved here from the West Coast. I've even heard a new saying out there: If you want to find a happy California businessperson, just visit Texas." However, the company's 130 year-plus history in California, along with its refineries, substantial retail station presence, employees and access to Silicon Valley technology in the state, offer compelling reasons for the company to stay, a company spokesperson said.

The company employs 10,000 workers in Houston, triple the number of workers it had here in 2001. Chevron's current employees in Houston include 7,000 full-time employees and 3,000 contract workers. Watson noted that Texas understands that energy must play a vital role in any economic growth scenario. "A strong oil and gas industry certainly makes a difference for Texas, but it's every bit as important to the future of our whole country," said Watson, adding that the energy industry has still been hiring, investing and generating tax revenues during the recession.

The company continues to recruit on college campuses, but also is hiring large numbers of experienced workers. Petrotech workers, including engineers and scientists, are in high demand both in the U.S. and worldwide, and Chevron has been scrambling to find these workers. Watson wouldn't give an exact number for how many new workers it would hire, but noted that the company has twice increased the number of new employees it would add to its roster this year. Chevron typically hires around 5,000 petrotech workers worldwide per year. Chevron has hired a number of former nuclear industry employees for its refining operations, and would welcome former NASA employees. "We need to continue hiring good people wherever we can," Watson said.

Watson said he agrees with U.S. Energy Secretary Chu's leadership on enabling public-private partnerships such as Chevron's research partnership with Los Alamos National Laboratory in New Mexico, where work to develop wireless technology for use in onshore and offshore oil and gas production from declassified military technology is underway. In June, Chevron announced a second strategic partnership with NASA's Jet Propulsion Lab in California to jointly develop technology that can benefit energy production. "If we're going to make step-changes in technology, our national laboratories are a great place to start."

Watson estimated that Chevron will make more than $7 billion in capital investments in the U.S. and $26 billion worldwide. Watson said Chevron's existing global portfolio of oil and gas assets puts the company is a position in which it does not have to make acquisitions; however, the company will continue to look for opportunities with the right fit, including opportunities in Russia. The company's current Russian operations include its interests in the Caspian Sea pipeline. "We see more opportunities in Russia, which has welcomed Western companies and their technology in recent years."

Watson anticipates further consolidation among U.S. onshore producers with shale gas assets. "While these companies went door-to-door, farm-to-farm, ranch-to-ranch putting together large acreage positions, a high business standard is needed to develop these opportunities, and larger companies are in a good position to develop these assets."

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Solstad Offshore Inks Contract with Ocean Installer for CSV

- Solstad Offshore Inks Contract with Ocean Installer for CSV

Wednesday, August 31, 2011
Solstad Offshore ASA

Solstad Offshore ASA (SOFF) has signed a contract with Ocean Installer AS (OI.II) for hire of SOFF's offshore construction vessel (CSV) Normand Clipper.

The duration of the contract is firm for 5 years with further 5 x 1 year option. Commencement is expected to be during second quarter of 2012.

The contract value is confidential between the parties, but gives SOFF an acceptable return on its investment. SOFF and OI.II intend to investigate and develop opportunities for further co-operation with regards to future assets.

Normand Clipper is a CSV built in 2001 and extensively upgraded in 2005. The vessel is very well suited for subsea construction work in both deep and more shallow waters. The vessel has a 250 t subsea crane, a deck area of approximately 1700 m2 and accommodation to approximately 100 people.

Ocean Installer is a newly established subsea construction company based in Stavanger, Norway. O.II is 100% owned by HitecVision.

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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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Cambodia Calls for Talks with Thailand on Disputed Oil and Gas Zone

- Cambodia Calls for Talks with Thailand on Disputed Oil and Gas Zone

Tuesday, August 30, 2011
Deutsche Presse-Agentur (dpa)

Cambodia called Tuesday for the newly elected Thai government to resume talks on resolving claims to a 27,000-square-kilometer stretch of seabed considered rich in oil and gas.

The Cambodian National Petroleum Authority, a government body, said it had "a firm commitment to finding an equitable and transparent resolution to the overlapping claims area."

"The [government] would welcome the resumption of open and official negotiation on this issue and will pursue such a course as soon as practicable," it said.

The statement marked the second time in little more than a month that Cambodia has sought to restart the talks.

The authority said discussions held from 2001 to 2007 had been "fruitful," adding that the government of Abhisit Vejjajiva, which took power in 2008 and had rocky relations with Phnom Penh, had sought to resolve the dispute prior to this year's election.

To that end, it said, Bangkok and Phnom Penh had held secret talks to try to reach a deal.

A number of major oil companies have signed exploration deals with Cambodia in the Gulf of Thailand, including the US firm Chevron Corp and France's Total SA.

In 2001, the two nations signed an agreement that outlined their joint management of resources in the disputed zone, but the details have yet to be worked out.

Cambodia hopes to reap a windfall from oil and gas revenues that could transform the impoverished nation.


Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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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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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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Gulfsands: Fully Compliant With Syrian Sanctions

- Gulfsands: Fully Compliant With Syrian Sanctions

Wednesday, August 24, 2011
Gulfsands Petroleum plc

Gulfsands provided the following information on the Company's activities in Syria.

In light of the recent sanctions against Syria, and following certain comments in the press concerning the relationship between the Group, Mr. Rami Makhlouf and corporate entities in which Mr Makhlouf and other members of his family are involved (collectively the "Makhlouf Interests"), Gulfsands wishes to provide the following clarifications.

US and EU Sanctions

Gulfsands notes that the US and EU have imposed a number of sanctions against Syria and various named individuals and organizations. Gulfsands is fully compliant with all applicable sanctions and is committed to continuing compliance with any sanctions that may apply from time to time.

Background to the Group's involvement in Syria

The Group first entered Syria in 2000, as the junior partner of Ocean Energy in a collaborative venture which was subsequently awarded a license to explore and develop Block 26 ("the Block 26 Joint Venture"). This followed a public tender in 2002 in which several other international oil companies participated, with the resultant Production Sharing Contract ("PSC") eventually being signed in May 2003. The PSC was ratified by the People's Assembly and signed into Syrian law via presidential decree. The public tender for Block 26 was the first such tender in Syria, all previous oil and gas licenses having been awarded by direct negotiation.

Following the takeover of Ocean Energy by Devon Energy in 2003, the latter elected to withdraw from the Middle East in 2005, as a result of which Gulfsands was able to increase its interest to 50% and assume operatorship of Block 26. The remaining 50% interest was assumed by a Russian company which was subsequently purchased by Emerald Energy, which in turn was taken over by Sinochem in 2009.

The Group's Syrian interests are held in a subsidiary of Gulfsands Petroleum PLC, which is a UK incorporated, British managed and UK domiciled public company. Gulfsands Petroleum PLC has not changed its place of incorporation or domicile since incorporation, and recent press reports that might suggest otherwise are incorrect.

Relationships with the Makhlouf Interests.

Since the time of its first entry into Syria, the Group has had constructive commercial relationships with various Makhlouf Interests. All such relationships have been conducted on arms-length commercial terms, have been properly documented and have been disclosed as required by pertinent laws and regulations, including the AIM Rules of The London Stock Exchange ("the AIM Rules.")

The Group has fulfilled all contractual obligations pertaining to such commercial relationships and has behaved at all times with absolute propriety.

Following the imposition by the UK in May 2011 of sanctions against certain individuals and organizations in Syria, including Mr. Rami Makhlouf and members of his family, the Group has suspended all payments to the Makhlouf Interests under the commercial agreements noted below, and has suspended the voting, dividend and transfer rights pertaining to the shares in Gulfsands held by Al Mashrek.

The commercial relationships between the Group and the Makhlouf Interests are as follows:

Al Mashrek Shareholding

Al Mashrek Global Invest ("Al Mashrek"), a company owned beneficially by Makhlouf Interests, owns 5.75% of the Company's issued share capital. These shares were acquired in August 2007, at a premium to the then prevailing market price, in a placing that was disclosed at the time in accordance with the AIM Rules. Al Mashrek is not represented on the Board of the Company, has no influence over or involvement in the management of the Group's affairs and has at no time sought such influence or involvement.

Damascus Office Lease

The Group rents office premises in Damascus from a company owned beneficially by Makhlouf Interests. The lease is on terms negotiated at arms-length and considered normal for a commercial lease of this kind in Syria. The rent payable has been approved for cost recovery by Syria's General Petroleum Corporation, pursuant to the Block 26 Production Sharing Agreement.

Cham Holdings, a company in which Al Mashrek is reported to be a material shareholder (alongside other prominent Syrian businessmen and companies also rents space in the same building). Its lease is completely independent of the Group's lease, as are the operations of the two organizations.

Ramak Services Agreement

Ramak, a company owned beneficially by Makhlouf Interests, has since 2000 provided various support and administrative services to the Block 26 Joint Venture(s). Ramak was engaged by the original Ocean Energy (80%) and Gulfsands (20%) joint venture to provide advice and to assist in identifying, evaluating and pursuing E & P opportunities in Syria, including in connection with the successful public tender for Block 26.

These services, which are all in the ordinary course of business for an E & P venture operating in a foreign jurisdiction, are documented in a service contract with the original joint venture which is governed by English law and has been amended as appropriate from time to time. The fees payable in respect of these services, which today aggregate less than $250,000 per annum, have been borne by successive joint ventures pro rata to the participants' respective participating interests from time to time and are today the responsibility of the current 50/50 joint venture between the Company and Sinochem.

In addition, Ramak has since the commencement of the original agreement in 2000, received milestone payments totaling US$900,000 from these joint ventures. Gulfsands has been responsible for US$270,000 of these payments, reflecting the Company's, pro rata interest in these joint ventures at various points in time. Further, modest milestone payments may be earned by Ramak in the event various Block 26 production targets are reached. None of those production levels have been reached to date and only one such production level involving the potential payment of a US$500,000 milestone payment is anticipated to be reached.

The services agreement entered into with Ramak and documented at that time under the oversight of Ocean Energy's general counsel (as 80% participating interest holder and senior partner in the collaborative venture), provided Ramak with an entitlement to receive a 2.5% Net Profit Interest on Block 26 production attributable to the joint venture and Ramak began to receive payment in respect of this Net Profit Interest during 2010. The cost of the Net Profit Interest has been borne in equal proportions by the Group and Sinochem.

Lapsed 2007 Proposal for Joint Venture with Cham Holdings

In October 2007, as announced at the time pursuant to the AIM Rules, the Group proposed to establish a strategic joint venture in partnership with Cham Holdings. The purpose of the proposed joint venture was to pursue the acquisition of several high value energy projects in Syria and Iraq. The joint venture did not in fact proceed and no projects were acquired.

There are no other commercial relationships between the Group and Makhlouf Interests and no additional commercial relationships are currently in contemplation.

Block 26 Operations

To date the company's operations in Block 26 continue unaffected by events in Syria. Further, we have no information beyond that which has appeared in the press as would enable speculation as to the possible course of future events in Syria.

Andrew West, Chairman, said, "The Board of Gulfsands Petroleum recognizes the importance of the Company's interests in Syria and is satisfied that the Group is in compliance with the current US, EU and UK sanctions regime and that our commercial relationships with various Makhlouf Interests have at all times been conducted with propriety and in accordance with pertinent laws and regulations, including the disclosure obligations enshrined in the AIM Rules."

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Transocean Strengthens Management with New Appointments

- Transocean Strengthens Management with New Appointments

Monday, August 22, 2011
Transocean Ltd.

Terry B. Bonno has been promoted to Senior Vice President, Marketing, for Transocean Ltd. She previously served as Vice President, Marketing.

Ms. Bonno has approximately 30 years of industry experience, including 17 years with Global Marine Inc. and Applied Drilling Technology Inc., two subsidiaries of GlobalSantaFe Corporation assumed in a 2007 merger. Her prior service also includes management positions in marketing, accounting and corporate planning functions.

A Certified Public Accountant, Ms. Bonno earned a Bachelor's degree in Business Administration, Accounting, from Stephen F. Austin State University.

In addition, Mark Monroe has been promoted to Vice President, Account Management, for Transocean. Based in Houston, he is responsible for overseeing our relationships with the key U.S. based customers.

Before being named to his new position, Mr. Monroeserved since 2010 as Managing Director, Marketing, responsible for customer relationships with major Customers such as BP, Exxon and Chevron as well as overseeing the development of the company's Customer Focus workshops. He joined a predecessor company Global Marine in 1983 as Manager, London Sales and Contracts and held numerous Marketing positions with Global Marine and GlobalSantaFe. In 2000, he was promoted to Vice President, Sales and Contracts with responsibility for the sales, contracts and marketing of the GlobalSantaFe fleet in North and South America, Southeast Asia and West Africa.

Mr. Monroe serves on the Board of Directors of the Offshore Energy Center, the Advisory Board of Spindletop International and is a member of the IADC (International Association of Drilling Contractors) and SPE (Society of Petroleum Engineers). He earned a Bachelor of Arts, Business Administration, degree from Texas Christian University in Fort Worth in 1976.

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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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Commodity Corner: Crude Rallies Along with Equities

- Commodity Corner: Crude Rallies Along with Equities

Monday, August 15, 2011
Rigzone Staff
by Matthew V. Veazey

Light sweet crude oil for September delivery gained $2.50 Monday to settle at $87.88 a barrel.

Rallies in equities markets worldwide, coupled with a weaker dollar, propelled oil futures forward. Major merger announcements Monday by heavyweights such as Google and Transocean helped the Dow Jones Industrial Average and S&P 500 to finish the day 1.9 percent and 2.18 percent higher, respectively.

The U.S. Dollar, meanwhile, weakened against other major currencies after a monthly Federal Reserve Bank of New York report showed worsening business conditions in the Empire State. A weaker greenback makes dollar-denominated crude oil a better buy for investors holding other currencies. The New York Fed's survey revealed falling orders, decreasing prices, plunging capital expenditures, and a future general business conditions index hitting its lowest point since February 2009.

The WTI peaked at $88.05 and bottomed out at $84.40. Brent futures settled at $109.91 a barrel, a $1.88 day-on-day gain and four cents shy of Monday's intraday high. The September Brent contract fell to $108.20 earlier in the session.

Thanks in part to milder temperatures in much of the U.S., August natural gas futures lost four cents to settle at $4.02 per thousand cubic feet. The front-month contract price fluctuated from $3.95 to $4.06.

The price of a gallon of reformulated gasoline gained a nickel to end the day at $2.87. August gasoline traded within a range from $2.81 to $2.88.

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GTI Boosts Marcellus Presence with Pittsburgh Office

- GTI Boosts Marcellus Presence with Pittsburgh Office

Tuesday, August 09, 2011
Gas Technology Institute

Gas Technology Institute (GTI) on Wednesday announced the opening of the organization's newest office in Pittsburgh, PA. Headquartered in the Chicago suburb of Des Plaines, IL, GTI has field offices across the country, and the new office in Pittsburgh represents GTI's local commitment to the natural gas industry in the Marcellus Shale fairway and the surrounding region.

GTI's continued growth in this region will be achieved by generating effective technology development and services based on customer needs, and through partnering to develop technology, create collaborative opportunities and achieve strategic business results. The efforts led by the Pittsburgh Office will advance the development of innovative solutions to the region's most pressing challenges.

"We're excited about establishing a stronger presence in this important region," says David Carroll, President and CEO of GTI. "We are committed to the future of natural gas and see tremendous opportunity for growth in the shale market where GTI has performed analysis since the 1980s. Our new office location will help us provide the continued high-level customer service and technology developments that will help meet today's complex energy and environmental challenges."

The Director of the Pittsburgh office is Patrick Findle, who has worked for GTI earlier in his career and has returned to help establish a strategic beachhead for business growth. He brings many years of technology business development in the natural gas industry that will help GTI build industry relationships and facilitate new business.

Notes Findle, "Along with growing global demand for natural gas, there is a correlating demand for new technologies to enable and ensure its responsible production, distribution, and use. The opening of the Pittsburgh Office is evidence of GTI's commitment to become a valued resource and partner to the natural gas industry as it transforms this region."

The GTI PA office can be found at 800 Old Pond Road, Suite 706 B, Bridgeville, PA 15017; 412-319-7249.

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CCS Expands Operations with New Bakken Acquisition

- CCS Expands Operations with New Bakken Acquisition

Monday, August 01, 2011
CCS Corp.

CCS Corporation continues to expand into the United States with the acquisition of KT Hot Oil Company (KT) of Watford City, North Dakota. This is the company's second acquisition this month in the attractive Bakken region shale play and third in the United States. Financial details were not disclosed.

"KT is a well-respected organization with a long history of providing safe and reliable solutions in the basin," said John Gibson, CCS Corporation Chief Executive Officer. "This acquisition will add significant value to our current Bakken operations and builds on CCS's commitment to providing innovative energy and environmental solutions to the oil and gas industry."

KT was founded in 1995 and operates in four key segments: frac water heating, hot oiler services, fluid hauling and salt water disposal wells.

"We are very happy to join the CCS family," said Kent Norbeck, President of KT Hot Oil Company. "I feel the CCS high-performance culture matches well with KT and that we will continue offering our customers with the highest quality services."

KT's 53 employees will join the CCS team and operate under the CCS brand.

Today's acquisition of KT, in addition to last week's purchase announcement of Venture Oilfield Service Inc., further strengthens CCS Corporation's position as one of the leading providers of frac water heating and hot oil services in North Dakota.

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Noble Adds to High-Spec Jackup Fleet with Two Newbuilds

- Noble Adds to High-Spec Jackup Fleet with Two Newbuilds

Monday, August 01, 2011
Noble Corp.

Noble has exercised options with Sembcorp Marine's subsidiary Jurong Shipyard for the construction of two additional high-specification heavy duty, harsh environment JU3000N jackup drilling rigs. This order will bring to six the total number of new jackup rigs the Company will have under construction with the Jurong Shipyard.

David W. Williams, Chairman, President and Chief Executive Officer, Noble Corporation, stated, "We continue to see a growing interest from clients for the advanced features of the JU3000N jackup design. Opportunities for these units are evident in several offshore regions, including the North Sea, Middle East and Asia. This latest rig order reflects our continuing commitment to expand our ownership of industry-leading offshore drilling technology, enabling us to address some of the most demanding well construction challenges around the world."

Total delivered costs for these latest two orders are estimated at approximately $245 million per rig, including project management, spares, and start-up costs, but excluding capitalized interest. Payment terms are consistent with the order of the four previous rigs placed with the Jurong Shipyard since December 2010: 20 percent of the construction price due at contract signing, 20 percent due at steel cutting, and the remainder due at rig delivery. The two latest orders are expected to be delivered from the shipyard during the third and fourth quarters of 2014, following which would be mobilization and acceptance testing by their respective future customers.

The Friede & Goldman JU3000N design is an enhanced evolution of the JU2000E design and represents the latest generation of high-specification jackup drilling rig with greater capacities and capabilities than most existing units. The rigs, which are approximately 231 feet in length and 270 feet in breadth, will have the capability to operate in water depths up to 400 feet and drill to depths of 30,000 feet. The rigs will each have a seventy-five foot cantilever, 2.5 million pounds of hook load capacity, a high-capacity mud circulating system, and a 15,000 psi blowout preventer system. The units are capable of off-line pipe handling and offer accommodations for up to 150 people.

In addition to six newbuild jackup projects, Noble has seven ultra-deepwater drillships under construction, three of which are scheduled to be delivered later this year. The Company continues to evaluate an option it has with Hyundai Heavy Industries Co. Ltd. for the construction of an additional ultra-deepwater drillship that expires on August 31, 2011, with delivery taking place in the second half of 2014.

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Sartor Secures Rescue Vessel Contract with Ithaca

- Sartor Secures Rescue Vessel Contract with Ithaca

Wednesday, July 27, 2011
Sartor Offshore Rescue Ltd.

Sartor Offshore Rescue Ltd has secured a three year contract with Ithaca Energy UK Ltd worth £8.2million, in a deal brokered by Clarksons Offshore, Aberdeen.

Sartor's Ocean Sprite, a multi-role offshore support vessel which will operate as a field support and emergency rescue and response vessel for the contract duration, is expected to commence the contract at the Athena field in the North Sea, 180 kilometres Northeast of Aberdeen, in Q4 2011 when Ithaca commences production there.

John Bryce, managing director of Sartor Offshore Rescue Ltd, said, "We are delighted that Ithaca Energy has chosen Sartor Offshore Rescue and our Ocean Sprite, it is a fine vessel with an excellent safety record of 2,860 days without a lost time injury (LTI).

"This is a very significant contract win for us as it is our first time to work with Ithaca Energy and I look forward to strengthening our relationship. We will supply two crews, each of 12 seamen, aboard the Ocean Sprite and I anticipate a continuation of our excellent safety record on board.

"We have invested heavily into our fleet, staff training and the Scottish shipping industry. We actively promote safety onboard our vessels and seven of our vessels have at least 1,000 days with no LTI's, with the more recent acquisitions gradually working towards this milestone. I am delighted that our strong safety record and reputation is attracting new clients such as Ithaca Energy and I look forward to a long and safe working partnership with them," he continued.

James Lund, Projects Manager of Ithaca Energy (UK) Ltd, said, "This agreement is a major contract to be awarded for the operational phase of the Athena project. Sartor Offshore Rescue Ltd and their vessel the Ocean Sprite have an excellent safety and track record which were key to their selection to support the Athena asset in the operational phase. Ithaca looks forward to working closely with Sartor over the next three years"

Sartor Offshore Rescue currently manages a fleet of 9 ERRVs (emergency response and rescue vessels) & 4 PSVs (platform supply vessels) out of Aberdeen.

The company's aim has been to continue to expand its standby and emergency response capabilities within both the Norwegian and British sector of the North Sea and to be able to provide cross-border solutions reflecting the needs of its clients.

Sartor Offshore Rescue employs approximately 330 seamen in its ERRV and PSV fleet and provides multi-role offshore and emergency rescue and response vessels for many of the oil majors operating in the North Sea.

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Eni Signs Memorandum Of Understanding With Sinopec

- Eni Signs Memorandum Of Understanding With Sinopec

Friday, July 22, 2011
Dow Jones Newswires
ROME
by Liam Moloney

Eni confirmed it signed a memorandum of understanding with China Petroleum & Chemical Corp., or Sinopec, as Italy's biggest oil and natural gas company strengthens its ties with Chinese hydrocarbon firms.

Eni confirmed an earlier report from Italian newswire ANSA on the accord.

Eni is particularly interested in the development of shale gas in China, said Chief Executive Paolo Scaroni, according to ANSA.

The deal "signed today allows us to analyze together a series of opportunities in China and outside China," said Scaroni, according to ANSA. "I believe that if shale gas is found in China, its development will be strong."

ANSA wrote details of the deal will be announced in the coming days.

Once the companies move from assessing the situation to an operational phase in China, Eni will sign deals in which it become the owner of gas produced, said Scaroni, wrote ANSA.

Chinese companies are interested in expanding abroad through deals with Eni, especially in Africa, said Scaroni, according to ANSA.

Eni and Sinopec are no strangers as they have some joint deals, such as Angola's 15/06 block.

Eni, which entered the Chinese market in 1984, is a small player is the world's number two economy with a daily output of 12,000 barrels of oil equivalent, according to figures released earlier this year.

The Italian company is seeking to tap into China's gas market, which is still in its infancy when compared with coal. At the start of the year, Eni signed a deal with China National Petroleum Corp., or CNPC, as part of this strategy.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Rowan Parts with Land Drilling Division

- Rowan Parts with Land Drilling Division

Wednesday, July 20, 2011
Rowan Companies Inc.

Rowan has entered into a purchase and sale agreement (the "Agreement") with Ensign United States Drilling (S.W.) Inc., a subsidiary of Ensign Energy Services Inc.("Ensign"), to sell Rowan's land drilling division for $510 million in cash, plus working capital of approximately $30 million. The Agreement is subject only to regulatory approval, which the Company expects to obtain within 60 days.

Matt Ralls, President and Chief Executive Officer, commented, "We are pleased to enter into this agreement with Ensign, as we continue to execute our stated strategy to separate non-core businesses. We expect that our after-tax proceeds, estimated at approximately $370 million, will be redeployed into our offshore drilling business and recently announced deepwater expansion. We believe our high-specification land rig fleet will be a strong addition to Ensign's global fleet of over 300 land rigs, and that our land division employees will have significant opportunities with such a large and well-respected operation. I want to personally thank all of the land division employees for their dedication and service over the years as part of the Rowan family, and wish them the best in their careers with Ensign."

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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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