GULF OF MEXICO REPORT - ocsadvisoryboard.org · Continental Shelf through regulatory oversight of...

GULF OF MEXICO REPORT

OCS ADVISORY BOARD

June 2017

GULF OF MEXICO REPORT | 2

CONTENTS

Industry News ........................................................................................................................ 3

Exploration News ................................................................................................................... 8

Recent Discoveries and Development 16

Drilling Activity 22

Rigs and Service 24

Acquisitions, Divestitures, and Ventures 25

Tables .................................................................................................................................. 31

Status of Gulf of Mexico Well Permits 31

Approved Permits to Drill – Deepwater 32

Status of Gulf of Mexico Plans 44

Approved Exploration Plans 45

Approved Development Operations Coordination Documents 47

OOSA Deepwater Rig Report 48


Ex-Louisiana State Official Becomes Head of BSEE Offshore Energy Today Staff | 05/23/2017 | http://www.offshoreenergytoday.com/

Former Louisiana State Official Scott A. Angelle has been named the director of the U.S. Bureau of Safety and Environmental Enforcement (BSEE).

The BSEE said on Monday that Angelle, who most recently served as the vice chairman of the Louisiana Public Service Commission, would assume his new position on Tuesday, May 23.

Secretary of the Interior Ryan Zinke said: “Scott Angelle brings a wealth of experience to BSEE, having spent many years working for the safe and efficient energy production of both Louisiana’s and our country’s offshore resources.”

Angelle, who will serve as the fourth director in BSEE’s history, held numerous positions in Louisiana State and Parish governments, including Interim Lieutenant Governor, Secretary of the Louisiana Department of Natural Resources, and St. Martin Parish President.

In the aftermath of the Deepwater Horizon oil spill, Angelle served at the request of then Louisiana Governor Bobby Jindal as a liaison to the federal government and negotiated an early end to the previous administration’s drilling moratorium.

Angelle said: “I welcome the opportunity to serve President Trump and Secretary Zinke, and work with BSEE staff to meet the critical goal of energy dominance for our country. I look forward to leading our efforts to empower the offshore oil and gas industry while ensuring safe and environmentally responsible operations.”

He also served for eight years as Louisiana’s Secretary of the Department of Natural Resources. Under his leadership, the state’s coastal permitting system was reformed, providing for efficient permitting while increasing drilling rig counts in Louisiana by more than 150 percent during his tenure.

President Proposes $204.9 million in FY 2018 Budget for Bureau of Safety and Environmental Enforcement BSEE | 05/24/2017 | https://www.bsee.gov/

WASHINGTON — President Donald Trump today proposed a $204.9 million Fiscal Year (FY) 2018 budget for the Bureau of Safety and Environmental Enforcement (BSEE). The budget ensures continued support of the offshore energy industry’s safe and responsible operations providing for secure and reliable energy production for America’s future. BSEE fosters safe and environmentally responsible energy production on the U.S. Outer Continental Shelf through regulatory oversight of oil and gas operations.

The FY 2018 budget request is $204.9 million, a $600,000 increase above the FY 2017 CR level, and includes $112.0 million in current appropriations and $92.9 million in revenue from rental receipts, cost recoveries, and inspection fees.

“President Trump promised the American people he would cut wasteful spending and make the government work for the taxpayer again, and that's exactly what this budget does,” said U.S. Secretary of the Interior Ryan Zinke. “Working carefully with the President, we identified areas where we could reduce spending and also areas for investment, such as addressing the maintenance backlog in our National Parks and increasing domestic energy production on federal lands. The budget also allows the Department to return to the traditional principles of multiple-use management to include both responsible natural resource development and conservation of special


places. Being from the West, I've seen how years of bloated bureaucracy and D.C.-centric policies hurt our rural communities. The President's budget saves taxpayers by focusing program spending, shrinking bureaucracy, and empowering the front lines."

“The President’s proposed FY 2018 budget fully reflects the Administration’s emphasis on ensuring the safe and responsible development and production of the Nation’s offshore energy resources,” said Acting Director Margaret N. Schneider. “The President’s request supports BSEE’s efforts to permit offshore energy operations efficiently and ensure safety of advanced technology required to explore, develop, and produce in deeper waters and challenging environments.”

“The Bureau uses a comprehensive program of appropriate regulations, compliance monitoring and enforcement, inspections, technical assessments, and incident investigations to mitigate risk and ensure safe and responsible operations,” Schneider said.

The FY 2018 budget supports the following priorities:

America First Energy: To advance domestic energy production while ensuring that development of the Nation’s vast offshore energy resources is conducted in a safe and environmentally-responsible manner, the 2018 budget provides for the continued training and retention of expert engineers, scientists, inspectors, and oil spill planning, prevention, and response specialists and other disciplines.

Consistent with Secretary Zinke’s support of focusing resources on the front lines and reviewing the work processes of the Bureau, BSEE’s budget request includes a $1.2 million increase for training. This increase will expand staff development efforts for BSEE's field inspectors and engineers to ensure staff have the tools needed to streamline permitting and support BSEE's efforts to efficiently provide for secure and reliable energy production.

Oil Spill Research: To support Interior Secretary Ryan Zinke’s priority of increased access to the U.S. Outer Continental Shelf for energy development, the budget request for BSEE includes $12.7 million for Oil Spill Research. This will help protect public lands by addressing key knowledge and technology gaps in oil spill response, focusing on deepwater and Arctic environments.

OTC Commentary: Expanding Offshore Access is Critical for Energy Security By Erik Milito | 05/03/2017 | http://fuelfix.com/

Last week marked the 100-day milestone for the Trump administration, and the White House is making steady progress on pledges to remove roadblocks to oil and natural gas development. At the heart of executive orders aimed at scaling back regulatory overreach, expanding offshore access and cutting through red tape on pipeline construction is the recognition that energy production is a key pillar of U.S. economic growth and national security.

American families and businesses are experiencing that reality firsthand. Drivers saved over $550 at the pump in 2015, while household budgets saved $1,337 on utility bills and energy-related expenses. U.S. industrial electricity costs are 30 to 50 percent lower than those of our foreign competitors, spurring a manufacturing renaissance.

We lead the world in production and refining of oil and natural gas, but we’re still not taking full advantage of our energy resources – especially offshore, where restrictions keep 94 percent of federal offshore acreage off limits to responsible energy exploration.

Opening areas in the Atlantic, Eastern Gulf of Mexico and Pacific could lead to production gains of more than 1 million barrels of oil equivalent per day and generate thousands of well-paying jobs in both blue collar and STEM job fields. Alaska’s Beaufort and Chukchi seas are considered home to the world’s largest remaining


conventional, undiscovered oil and natural gas reserves – enough to meet California’s energy demands for close to 40 years.

Eighty percent of American voters support increased domestic production of oil and natural gas, but a vocal minority opposes energy development – not based on the merits of individual projects, but as part of an overarching goal to permanently halt oil and natural gas production. It stands to reason that cutting off supplies of affordable, reliable energy could lead to skyrocketing costs and plummeting employment.

New research from OnLocation — a firm with more than 20 years of experience providing technical support for Energy Information Administration (EIA) modeling — reaches exactly that conclusion. Using EIA’s Annual Energy Outlook for 2016 and applying the “keep it in the ground” movement’s policy wish list, we can quantify the potential impact of policies to halt oil and natural gas leases, ban hydraulic fracturing, prohibit new or expanded coal mines, and stop permitting energy infrastructure, including pipelines and import/export facilities.

It’s not a pretty picture. The modeling shows domestic oil and natural gas production experiencing a steep decline, adding potential costs of $40 per barrel for crude oil and $21 per million BTUs for natural gas – taking us back to energy dependency and erasing the economic benefits of the American energy revolution. The average American household could see its costs jump $4,550 in 2040 due to increased costs for transportation fuel, electricity, home heating, and goods and services.

The U.S. economy could lose a projected 5.9 million jobs, plunge the economy into persistent recession-level unemployment throughout 2020 to 2040, with major energy-producing states hardest hit.

That’s a lot of economic upheaval to inflict on ourselves based on the false premise that energy security is incompatible with environmental progress.

The United States leads the world in carbon reductions thanks primarily to availability of natural gas. Carbon emissions from power generation have plunged to nearly 30-year lows, and more than 60 percent of those reductions from 2005 to 2016 have been the result of switching to generation from clean-burning natural gas.

Even under the most optimistic scenarios for renewable energy growth, oil and natural gas will supply 60 percent of U.S. energy needs in 2040. With worldwide energy consumption projected to increase by 38.6 percent by 2040, it’s clear we’ll need more energy to meet U.S. needs and remain dominant in lucrative world markets.

It makes no sense to forfeit potentially massive resources offshore. Comprehensive efforts focused on safety systems and capabilities ensure offshore development is safer than ever. Plus, decades of experience operating in Arctic environments show the oil and natural gas industry has the technology and expertise to safely develop Arctic offshore resources.

So long as the vast majority of offshore areas remain off limits, the United States will never realize the full economic and security potential of our energy resources. Expanding offshore access is a significant achievement for the first 100 days of a presidential administration but it’s even more important for U.S. energy security over the next several decades.

Interior Department Advances America-First Offshore Energy Strategy Office Of The Secretary | 05/10/2017 | https://www.doi.gov/

WASHINGTON – In accordance with Secretarial Order 3350, which implements President Trump’s America-First Offshore Energy Strategy, the Department of the Interior today announced it will move forward to resume its evaluation of applications from six companies seeking permits to conduct geological and geophysical (G&G) activities in the Atlantic Ocean in order to resume their evaluation, upon the grant of the remand by the Interior Board of Land Appeals (IBLA).

“Seismic surveying helps a variety of federal and state partners better understand our nation’s offshore areas, including locating offshore hazards, siting of wind turbines, as well as offshore energy development,” said


Secretary of the Interior Ryan Zinke. “Allowing this scientific pursuit enables us to safely identify and evaluate resources that belong to the American people. This will play an important role in the President’s strategy to create jobs and reduce our dependence on foreign energy resources.”

The last G&G seismic data for the Mid- and South- Atlantic Outer Continental Shelf (OSC) were gathered more than 30 years ago when technology was not as advanced as today. Aside from providing data on potential offshore oil and gas resources, seismic surveys are also used to site offshore wind structures, locate potential seafloor hazards, locate potential sand and gravel resources for beach replenishment activities, and locate potential archaeological resources. Data from seismic surveys also assists the Department in determining Fair Market Value of offshore resources.

Today’s action reverses a decision by the previous administration that ordered the Bureau of Ocean Energy Management (BOEM) to deny the permit applications. That decision underestimated the benefits of obtaining updated G&G information and ignored the conclusions of BOEM’s Atlantic G&G Programmatic Environmental Impact Statement and Record of Decision, which showed that no significant impacts are expected to occur as a result of these seismic surveys. Following the denial of the permit applications, the six companies filed appeals with the IBLA to have their applications reinstated. Today, BOEM Acting Director Walter D. Cruickshank asked the IBLA to remand the six Atlantic G&G Permit Application denials under appeal. The remand would not approve the permits, but would allow BOEM to resume its evaluation to determine whether they will individually be approved or denied.

Seismic surveys are not expected to have significant impacts on marine mammal populations or the environment given the use of advanced technology and other safeguards that are currently required. BOEM currently employs mitigation measures and safeguards to reduce or eliminate impacts to marine life while setting a path forward for appropriate G&G survey activities off the Mid- and South Atlantic coast to update data on the region’s offshore resources.

“BOEM’s mission is to manage the development of our nation’s offshore resources in an environmentally and economically responsible way,” said BOEM’s acting director Dr. Walter Cruickshank. “We will continue to keep the public informed as we renew our efforts to evaluate these permits.”

While the Atlantic was removed from consideration for oil and gas leasing and development in the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Program, President Trump last month directed the Department of the Interior and BOEM to begin development of a new national program, and the information gained from possible seismic surveys in the Atlantic will help inform future decision-making.

Zinke’s Secretarial Order 3350 implements President Trump’s Executive Order on the America-First Offshore Energy Strategy and directs BOEM to develop a new five-year program for oil and gas exploration in offshore waters and reconsider a number of regulations governing those activities.

Since 1998, BOEM has invested over $50 million on protected species and noise-related research, including marine mammals. It has also convened workshops for acoustic experts to help identify questions for future research.

BOEM estimates that the U.S. OCS contains about 90 billion barrels of undiscovered technically recoverable oil and 327 trillion cubic feet of undiscovered technically recoverable gas. Production from all OCS leases provided 550 million barrels of oil and 1.25 trillion cubic feet of natural gas in FY2016, accounting for 72 percent of the oil and 27 percent of the natural gas produced on federal lands and offshore areas.

Energy production and development of new projects on the U.S. OCS supported an estimated 315,000 direct, indirect, and induced jobs in FY2016 and generated $2.8 billion in total revenue that was distributed to the Federal Treasury, state governments, the Land and Water Conservation Fund, and the Historic Preservation Fund.


Trump Pulling U.S. Out of Paris Climate Deal By Valerie Volcovici | 05/31/2017 | http://www.reuters.com/

President Donald Trump will follow through on a campaign pledge to pull the United States out of a global pact to fight climate change, a source briefed on the decision told Reuters, a move that should rally his support base at home while deepening a rift with U.S. allies.

Trump, who has previously called global warming a hoax, did not confirm the decision in a post on Twitter, saying only, "I will be announcing my decision on the Paris Accord over the next few days."

Trump had refused to endorse the landmark climate change accord at a summit of the G7 group of wealthy nations on Saturday, saying he needed more time to decide. He then tweeted that he would make an announcement this week.

The decision will put the United States in league with Syria and Nicaragua as the world's only non-participants in the Paris Climate Agreement. It could have sweeping implications for the deal, which relies heavily on the commitment of big polluter nations to reduce emissions of gases scientists blame for sea level rise, droughts and more frequent violent storms.

The accord, agreed on by nearly 200 countries in Paris in 2015, aims to limit planetary warming in part by slashing carbon dioxide and other emissions from the burning of fossil fuels. Under the pact, the United States committed to reducing its emissions by 26 to 28 percent from 2005 levels by 2025.

Axios news outlet, which first reported the withdrawal, said details of the pullout are being worked out by a team that includes EPA Administrator Scott Pruitt. The choice is between a formal withdrawal that could take three years or leaving the U.N. treaty that the accord is based on, which would be quicker but more extreme, according to the Axios report.

The decision to withdraw from the climate accord was influenced by a letter from 22 Republican U.S. senators, including Majority Leader Mitch McConnell, calling for an exit, Axios reported.

Former President Barack Obama, who helped broker the accord, praised the deal during a trip to Europe this month.

The United States is the world's second-biggest carbon dioxide emitter behind China.

Supporters of the climate pact are concerned that a U.S. exit could lead other nations to weaken their commitments or also withdraw, softening an accord that scientists have said is critical to avoiding the worst impacts of climate change.

Canada, the European Union, and China have said they will honor their commitments to the pact even if the United States withdraws. A source told Reuters that India had also indicated it would stick by the deal.

PROMISE KEPT

Trump had vowed during his campaign to "cancel" the Paris deal within 100 days of becoming president, as part of an effort to bolster U.S. oil and coal industries. That promise helped rally supporters sharing his skepticism of global efforts to police U.S. carbon emissions.

After taking office, however, Trump faced pressure to stay in the deal from investors, international powers and business leaders, including some in the coal industry. He also had to navigate a split among his advisers on the issue.

Trump aides including Steve Bannon, Stephen Miller, lawyer Don McGahn and Peter Navarro, along with EPA chief Pruitt, argued hard for leaving the accord. They said the deal would require the U.S. government to regulate greenhouse gas emissions, which would hurt business.

Trump’s administration has already begun the process of killing Obama-era climate regulations.


The "stay-in" camp, which included Trump's daughter Ivanka, chief economic adviser Gary Cohn, and Energy Secretary Rick Perry, had argued the United States could reduce its voluntary emission-cuts targets while still keeping a voice within the accord.

Oil majors Shell and Exxon Mobil have also supported the Paris pact, along with a number of Republican lawmakers. Several big coal companies, including Cloud Peak Energy, had publicly urged Trump to stay in the deal as a way to help protect the industry's mining interests overseas, though others asked Trump to exit the accord to help ease regulatory pressures on domestic miners.

Trump has repeatedly expressed doubts about climate change, at times calling it a hoax to weaken U.S. industry. An overwhelming majority of scientists, however, say climate change is driven by human use of fossil fuels. US EPA Halts Methane Rule For Oil And Gas Industry By Reuters | 05/31/2017 | http://www.rigzone.com/

WASHINGTON, May 31 (Reuters) - The U.S. Environmental Protection Agency on Wednesday halted methane emission standards for oil and gas companies in its latest move to unwind Obama administration climate change rules, amid reports that the United States will withdraw from a global climate change agreement.

The agency issued a 90-day stay of the 2016 New Source Performance Standards for the oil and gas industry, which require companies to capture fugitive emissions, obtain engineer certifications and install leak detention devices while it reconsiders the rule.

The rule, completed last year under former President Barack Obama, was due to go into effect on June 3.

The EPA said it expects to prepare a proposed rule and launch a public comment period after the stay.

Environmental groups vowed on Wednesday to block the EPA move in court.

"The Trump administration is giving its friends in the oil and gas industry a free pass to continue polluting our air," said David Doniger, director of the climate and clean air program at the Natural Resources Defense Council. "We will fight Trump’s latest polluter giveaway in court.”

The Environmental Defense Fund also said it would sue the EPA to block a rollback of the rule.

Methane is the second most prevalent greenhouse gas after carbon dioxide. Though it only lasts in the atmosphere for 20 years, methane is 84 times more potent than carbon dioxide when it comes to trapping heat.

House Votes to Limit EPA to Science Based on “Public Data” By James Osborne | 03/29/2017 | http://fuelfix.com/

Legislation putting stricter limits on what scientific findings the U.S. Environmental Protection Agency can and can not use to justify its regulations passed the Republican-controlled House Wednesday.

The bill, called the HONEST Act, would require the agency to use only scientific findings for which the underlying data is publicly available, potentially leaving out medical studies that do not make data public to protect patient privacy. Such studies are used frequently by the EPA in creating regulations on everything from power plant emissions to acceptable levels of cancer-causing toxins in drinking water.

“The American people have a right to see the data that is used to justify EPA’s costly regulations,” Rep. Lamar Smith, R-San Antonio, author of the bill and chairman of the House Science, Space and Technology Committee, said in a statement. “The days of ‘trust me’ science are over. Allowing EPA’s data to be independently reviewed promotes sound science that will restore confidence in the EPA decision-making process.”


Democrats have long opposed the measure, arguing it, “would prevent EPA from functioning effectively and using the most relevant scientific data,” according to a recent memo from the Democratic Staff of the Committee on Science, Space, and Technology.

Groups opposing the bill include the American Lung Association, the American Thoracic Society and the Association of American Universities, which represents the University of Texas and Texas A&M University.

Within Smith’s legislation there is a provision requiring the EPA to redact any confidential information or that which might be used to identify an individual before releasing the data. But the bill only sets aside $1 million for the process of making studies public – something the Congressional Budget Office estimated in 2015 would cost $1 billion over the next four years.

“The result—EPA’s work grinds to a halt and the health of Americans and the environment are put at risk,” the Democratic memo reads.

Similar legislation, also authored by Smith, passed the House in 2015 and but never got a floor vote in the Senate.

API: Regulatory System Should Promote Technological Innovations and Industry Best Practices By Reid Porter | 12/23/2016 | http://www.api.org/

WASHINGTON – API today urged the EPA to adopt a regulatory system that enhances safety and protects the environment while prioritizing the production and refining of American natural gas and oil. The comments filed today are part of the agency’s solicitation of input from the public to inform its Regulatory Reform Task Force's evaluation of existing regulations.

“We share the government’s goal of enhancing safety and protecting the environment while producing and refining more natural gas and oil here at home,” said API Senior Director of Regulatory and Scientific Affairs Howard Feldman. “Technological innovations and industry leadership have propelled the natural gas and oil industry and benefited American consumers with lower prices despite the unprecedented level of federal regulatory actions targeting our industry.

“Consistent with President Trump’s stated objectives of American energy leadership and economic growth, EPA and other federal agencies should embrace and advance a regulatory system that promotes responsible access to domestic oil and natural gas resources, streamlined permitting and cost-effective regulations based on sound science.”

Record U.S. production and refining is happening alongside greater environmental progress: CO2 from power generation is down to near 30-year lows, thanks in large part to greater use of natural gas. Also, cleaner burning transportation fuels and industry investments in emissions reducing technologies have enabled reduced emissions of criteria air pollutants.

In 2015, energy-related savings put an extra $1,337 back in the pocket of the average American family, and AAA reports that drivers saved as much as $550 in fuel costs. Energy abundance has helped cut energy and material costs for American manufacturers and is helping to attract manufacturing back to the U.S.

In 2011 and 2015, API supported EPA efforts to relieve the burdens imposed by its rules, while protecting public health, safety and the environment, according to API.

“API will continue to work closely with the administration to ensure that strong regulations and industry best practices continue to support improvements to safety and environmental protection,” Feldman said. “We rely upon a cost-effective regulatory system that provides certainty and predictability necessary for the massive capital investments our industry must make.”


API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 40 million Americans.

Crude Rises on Reported OPEC Agreement to Extend Output Cuts into 2018 By Bloomberg | 05/22/2017 | http://fuelfix.com/

Oil rose to the highest in a month as Saudi Arabia said all producers participating in output cuts agree on extending the deal through the first quarter of 2018.

Futures climbed as much as 1.5 percent in New York after advancing 5.2 percent last week. Prolonging the cuts will help producers reach their goal of trimming stockpiles in developed economies to the five-year average, Saudi Arabia’s Energy Minister Khalid Al-Falih said Sunday. The exact duration of an extension will be discussed in Vienna on May 25, said OPEC Secretary-General Mohammad Barkindo.

Oil has climbed as Saudi Arabia and non-OPEC member Russia rally support for a nine-month extension to the deal to curb output by the Organization of Petroleum Exporting Countries and its allies. Not all participants were fully on board with the proposal, with Iraq supporting another six months of cuts, according to Falah Al-Amri, the head of the country’s State Oil Marketing Organization.

“The Saudi statement that everyone agreed to a nine-month extension spurred optimism that the cuts will do something to correct the over-supply scenario,” Gene McGillian, manager of market research for Tradition Energy in Stamford, Connecticut, said by telephone.

West Texas Intermediate for June delivery, which expires Monday, rose 43 cents, or 0.9 percent, to $50.76 a barrel at 1o:29 a.m. Central on the New York Mercantile Exchange. Total volume traded was about 6.4 percent below the 100-day average. The more-active July contract advanced 46 cents to $51.13.

Cut Extension

Brent for July settlement rose 37 cents, or 0.7 percent, to $53.98 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a $2.85 premium to June WTI.

“OPEC and some non-OPEC producers are highly likely to maintain cuts for another six to nine months and this is likely to drive global oil inventories down towards normal at the end of 2017,” said Bjarne Schieldrop, chief commodities analyst at SEB AB in Oslo. “But if the U.S. market keeps adding 30 rigs a month till then, production is likely to grow by 2.3 million barrels a day, putting a downside price risk on 2018 and 2019.”

Rigs targeting crude in the U.S. are on the longest run of gains since August 2011, climbing by eight to 720 last week, according to data Friday from Baker Hughes Inc.

Iraq’s Oil Minister Jabbar Al-Luaibi said almost all countries participating in the cut had agreed to extend it, though there was no consensus yet on how long the extension should be. “Some ministers say nine months, some ministers think six months,” Al-Luaibi said Sunday in an interview in Jordan. Iraq, OPEC’s largest producer after Saudi Arabia, is also its biggest cheater. The country pumped about 80,000 more barrels of oil a day more than its quota.


Petroleum Demand Last Month Highest for April since 2008 (Includes Monthly Statistical Report) By Sabrina Fang | 05/18/2017 | http://www.api.org/

WASHINGTON – Total petroleum deliveries in April moved up by 1.7 percent from April 2016 to average 19.6 million barrels per day. These were the highest April deliveries in nine years, since 2008. Compared with March, total domestic petroleum deliveries, a measure of U.S. petroleum demand, decreased 0.3 percent. For year to date, total domestic petroleum deliveries moved up slightly by 0.1 percent compared to the same period last year to average 19.4 million barrels per day.

The overall economy in the U.S. showed gains for the fourth time in the year, adding 211,000 jobs in April, according to the latest U.S. Bureau of Labor Statistics (BLS) report. The U.S. unemployment rate was little changed at 4.4 percent, and the number of unemployed persons was little changed at 7.1 million.

“The manufacturing sector expanded in April while the overall economy grew for the 95th consecutive month,” said Chief Economist, Erica Bowman. “These positive economic signs along with relatively low fuel prices have benefited American consumers and workers.”

Gasoline deliveries in April were up from the prior month and the prior year, but down from the prior year to date. Total motor gasoline deliveries, a measure of consumer gasoline demand, moved up 0.6 percent from April 2016, to average nearly 9.3 million barrels per day–the highest April deliveries on record. Compared with March 2017, total motor gasoline deliveries increased 0.4 percent.

At 9.2 million barrels per day, crude oil production was the second highest April output in 44 years, since 1973. Crude oil production increased 1.0 percent from March, and up by 3.4 percent from April 2016. This was the highest for any month in 17 months, since November 2015. For year to date, crude production was also up 2.2 percent compared with year to date 2016. Natural gas liquids (NGL) production, a co-product of natural gas production, was down from the prior year, but up from the prior month and the prior year to date. NGL production in April averaged nearly 3.5 million barrels per day, down 1.5 percent from last year, but up 0.4 percent from last month and up 1.4 percent from the prior year to date. This was the second highest April output level on record.

U.S. total petroleum imports in April averaged nearly 10.2 million barrels per day, up 1.6 percent from the prior month and were up 3.3 percent from the prior year. For year to date, total petroleum imports were also up by 3.4 percent compared with year to date 2016. Crude oil imports increased 3.4 percent from April 2016 to just below 7.9 million barrels per day in April 2017. Compared with March, crude oil imports were 0.4 percent higher. For year to date, crude imports were also up 2.7 percent compared with year to date 2016.

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 40 million Americans.

Offshore Needs ‘Sense of Urgency,’ Chevron VP Says By David Hunn | 05/02/2017 | http://www.fuelfix.com/

Deep-water oil production companies are trying to figure out how to work better together, produce projects more quickly and cut costs.

Operators have collaborated on research and development projects for years, Chevron vice president Roy Krzywosinski told attendees at the Offshore Technology Conference at NRG Park on Tuesday. But companies have often struggled to work together, bogging down on administrative nuts-and-bolts.


Now the collaborators have re-started an old agency to cut through the red tape and focus on projects. The group, called the DEEPSTAR Offshore Operators Committee, will be administered by an external party and focused on “core R&D,” Krzywosinski said.

“We need a sense of urgency,” he said. Offshore drillers are in a race to make deep-water drilling competitive with the onshore U.S. shale revolution. “Costs must come down,” Krzywosinski said. “Ultimate recovery must come up.”

“In the shale gas, look what they’re doing with their well programs. They’re drilling so many wells,” he said. And if operators can cut 15 minutes out of the drilling time for each well, that “makes a real difference,” Krzywosinski said. “You bring a manufacturing mindset into that space.”

But offshore collaboration won’t work, he continued, “if it takes the lion’s share of time figuring out how to collaborate.”

The new DEEPSTAR committee, he said, will focus on R&D collaboration, cooperation with suppliers and standardization.

Trump Faces Dilemma as Maritime Fleets Face Off in Gulf By James Osborne | 05/01/2017 | http://www.houstonchronicle.com/

WASHINGTON - For years, international ships and crews have traveled in and out of the Gulf of Mexico to construct the offshore platforms and deep-sea pipelines that allow oil and gas thousands of feet below the surface of the ocean to get to market.

But now a long-running fight between U.S. energy and maritime companies about what work international crews can do under U.S. law has come to a head, forcing a decision from the Trump administration. At issue is whether to require offshore oil and gas drillers to shift work handled by international construction crews to domestic ones, something oil lobbyists warn could decimate deep-sea drilling in the Gulf.

For President Donald Trump, who has promised to both grow the domestic energy industry and preserve American jobs for American workers, finding a path forward is fraught with political pitfalls. Whatever decision he makes, he is bound to end up alienating one of his key constituencies.

"It is the quintessential buy American, hire American law," said Aaron Smith, president of the Offshore Marine Service Association, a trade group representing U.S. vessel owners and operators. "How they get away from that is beyond me."

At the center of the conflict is the seemingly small but lucrative matter of how equipment and other materials are moved around the offshore Gulf of Mexico.

Under a century-old law known as the Jones Act, only U.S.-owned vessels are allowed to perform such work within American waters. But over the decades U.S. customs officials made a series of exemptions, allowing oil and gas companies to employ foreign vessels to perform specific tasks such as moving the fluid that drillers use to lubricate wells between sites or laying down massive subsea equipment that can weigh hundreds of tons.

Then in 2009, former President Barack Obama ordered a review of those rules, setting off a panic in the offshore industry that gradually abated over the next eight years as no action was taken. Then, just days before leaving office, the Obama administration released a proposal that would repeal decades of U.S. Customs and Border Protection rulings that allowed the exemptions, forcing offshore oil companies to use U.S. ships and crews.

'Incredibly Serious'

The oil and gas industry, however, maintains the American merchant fleet does not have the equipment and technical capacity to replace a larger and better capitalized international fleet that works in deepwater oil and gas fields all over the world and maintains large operations all along the Gulf Coast.


"This is incredibly serious," said Allen Leatt, CEO of the London-based International Marine Contractors Association, which represents ships and operators from outside the United States. "You remove all these rulings and put nothing in its place, these projects will have to stop. Industry cannot risk being in violation of the Jones Act."

The White House did not respond to a request for comment, but a spokeswoman for U.S. Customs and Border Protection said the agency, which postponed a decision by two months to allow more time for public comment, is scheduled to rule by May 18.

In response, the U.S. oil and gas industry has undertaken a fierce lobbying campaign to block a repeal. The American Petroleum Institute recently released a study forecasting 30,000 job losses in this year alone, mostly in the Gulf region, and a 23 percent drop in U.S. oil and gas production by 2030.

But around U.S. shipyards along the Gulf, that's all just noise. Since the steep drop in oil prices in 2014, the amount of work on offshore Gulf projects has mostly dried up. What's left typically goes to foreign crews, whom American captains and mariners maintain work for a fraction of the rates they command.

Jill Friedman, a 55-year-old captain living in Lake Jackson, has returned to school, hoping that if she can't sail, she might at least find work teaching search and rescue and other skills.

"I want to be out on the water," she said. "There's no work for us out there right now. Dozens and dozens of people I can name right now are out of work: captains, mates, deck hands. The foreign people work a lot cheaper than we do."

Preparing U.S. Ships

In the minds of American mariners, when the Obama administration said it was reviewing the Jones Act rulings, the oil and gas industry was put on notice that its days of using foreign ships to move materials and equipment between drilling sites were at an end. Over the past eight years, the U.S. offshore marine industry - often referred to as merchant marines - has invested $2 billion retrofitting more than 30 ships to perform the deepwater work currently performed by international ships, said Smith, the president of the American maritime group, arguing his fleet was up to the task.

"We didn't have the vessels to do the work, so we went into U.S. shipyards and began building them. These are 300- to 400-foot-long vessels, with cranes that weight between 60 and 250 tons," he said. "This is about cost. A good U.S. captain in my industry makes $600 a day. A foreign captain makes $200 a day."

The Jones Act was created following World War I, to protect a U.S. merchant fleet considered essential to supplying American soldiers abroad with guns and other equipment in the event of war. To this day, foreign flagged ships are not allowed to transports goods between American ports.

Over the years, however, it was not uncommon for the U.S. government to allow exemptions in times of need, said Michael Sturley, a maritime law professor at the University of Texas-Austin. For example, after the Deepwater Horizon explosion in 2010, BP received a Jones Act waiver to hire foreign ships to bring spilled oil back to shore.

"There's a much smaller U.S. fleet on now (than during WWI)," he said, "but what there is now depends much more on the existence of the Jones Act," to prevent customers from hiring cheaper ships from abroad.

'Nice propaganda'

Meanwhile, international ship owners and crews continue to make the case in Washington that without them, offshore work in the Gulf would come to a halt.

Among the arguments used by U.S. maritime companies is that oil and gas drillers prefer international crews, which might be drawn from the less prosperous countries like the Philippines or Eastern Europe, because they are cheaper. Leatt, chief executive of the international maritime group, described that assertion as "nice propaganda."


He said the international crews are paid just as much as American ones, arguing it is their technical skills that oil and gas companies seek. As a result, he added, if they were forced to leave U.S. waters, oil companies would shift investment to deepwater fields in other countries where the crews could work.

"Some people might think they'll have a large slice of the pie," Leatt said. "But the reality is the pie will be a lot smaller and everyone loses."

Jones Act Changes Batted Down By Offshore Staff | 05/11/2017 | http://www.offshore-mag.com/

WASHINGTON, D.C. – US Customs and Border Protection Agency withdrew a previously announced plan to extend the Jones Act, mandating that cargo-carrying vessels traveling between US ports to fly US flags and be staffed by US crews. The regulations would have reversed exemptions to certain types of vessels that move equipment.

“A recent report projected that this proposal could have resulted in the loss of thousands of American jobs, reduced US oil and natural gas production, and diminished revenues for federal and state government,” said API Upstream Director Erik Milito.

The proposal, made in the final days of President Barack Obama’s administration, was immediately met with a backlash from the industry, with a chief complaint being that there would be an inadequate supply of US-flagged vessels to meet the current needs. Groups including the API and International Marine Contractors Association (IMCA) issued reports in April detailing the possible negative effects of the changes.

IMCA wrote that “the impact on business in the Gulf of Mexico could be catastrophic, simply because there would be no capacity to install the production facilities offshore.”

The API’s analysis found the proposal would cause workforce reductions “in the range of 30,000 industry supported jobs in 2017, with as many as 125,000 jobs lost by 2030,” with the Gulf of Mexico states standing to be the most impacted, as well as a decrease in US oil and natural gas production in the range of 23% from 2017-2030.

“By rescinding the proposal, CBP has decided not to impose potentially serious limitations to the industry’s ability to safely, effectively, and economically operate,” Milito continued in the API’s response to the decision.

Allen Leatt, chief executive of IMCA, also expressed that the group welcomed the decision. “Members of the International Marine Contractors Association with vessels active in US waters, together with their clients, welcome the decision by the CBP Agency to withdraw its proposed revocation of longstanding decisions made over the last 40 years concerning the Jones Act. The proposals, which would have represented a major change in maritime policy if enacted, had been forecast to result in a substantial GDP loss coupled with significant American job losses along the entire US Gulf coast.

“Now that the CBP proposal has been withdrawn, IMCA and its members, look forward to working with CBP and other regulatory and industry stakeholders to consider ways to conduct complex operations offshore under the Jones Act. This development will greatly assist in providing operators and international contractors the confidence they need to continue investing in the Gulf of Mexico, and continuing to create American jobs and prosperity.”


More than 10 Years after Hurricane Rita, Well Owner Awarded $41.6 Million from Insurers By Christopher Scheefer | 12/15/2016 | http://www.offshore-mag.com/

Hurricane Rita destroyed an oil and gas well about 75 miles off the coast of Louisiana in 2005, but when Prime Natural Resources sought to recover damages from its insurance company, it was rebuffed.

Prime, a Houston venture capital firm that owned a 50 percent stake in the well, sued several underwriters through the Lloyds of London syndicate to help repay the $17 million it cost to rebuild the well and adjacent platform.

On Friday, a Harris County jury awarded Prime $41.6 million, a decision that could benefit other drillers that carry similar insurance policies on their wells. The case, which wound its way through the courts for the past decade, is a dispute that isn’t all that different from the problems homeowners face when they discover that foundation or other types of damage aren’t covered under their homeowners policy.

J. Clifton Hall III, the Houston lawyer representing the underwriters, said his clients are considering the jury verdict and what will eventually be entered as the judgment by state district Judge Michael Gomez. From there, he said, the underwriters will give close scrutiny to their appellate options.

http://www.offshore-mag.com/


Oil Discoveries Dropped to Record Low in 2016, IEA Says By Collin Eaton | 04/27/2017 | http://fuelfix.com/

The oil industry only found 2.4 billion barrels of oil last year, the smallest annual figure ever recorded, the International Energy Agency said Thursday.

The Paris-based group, which advises oil-importing countries, said last year’s small number of oil discoveries compares to an average 9 billion barrels discovered each year between 2000 and 2015.

Energy companies also sanctioned the smallest number of conventional oil projects in more than seven decades, approving just 4.7 billion barrels for development, nearly a third lower than the previous year.

Meanwhile, the IEA expects global oil demand to increase 1.2 million barrels a day each year over the next half decade, which the group believes could eventually flip the oil market on its head, with demand rising above supply in a few years.

The IEA has argued even the U.S. shale industry, which is expected to balloon domestic production up to about 10 million barrels a day by the end of next year, can’t fill the looming supply gap.

“Every new piece of evidence points to a two-speed oil market, with new activity at a historic low on the conventional side contrasted by remarkable growth in U.S. shale production,” IEA executive director Fatih Birol said in a written statement.

“The key question,” he said, “is how long can a surge in U.S. shale supplies make up for the slow pace of growth elsewhere in the oil sector.”

Offshore projects made up only 13 percent of all the new ventures approved by oil companies last year, down from an average 40 percent over the previous decade and a half, the IEA said.

Cobalt Confirms Plan to Scale Down Shenandoah By Kathrine Schmidt | 05/08/2017 | http://www.upstreamonline.com/

Cobalt International Energy has confirmed that its partners in the potential Shenandoah development in the deep-water US Gulf of Mexico are considering a smaller production facility after the latest appraisal of the Lower Tertiary field proved disappointing.

The US independent said its estimate of Shenandoah's gross recoverable resource now stands at between 200 million and 300 million barrels of oil equivalent.

Operator Anadarko Petroleum revealed last week that the Shenandoah-6 appraisal and sidetrack well did not encounter the reservoir's oil-water contact on the eastern flank, leading to a large write-down on the project.

Cobalt still believes the field has a development future with the 200 million barrels of resource that have been firmed up after extensive appraisal. A new standalone facility or a tieback to existing infrastructure are both in the discussion, Cobalt chief executive Tim Cutt said.


"We are currently running development economics for a 60,000 barrels-per-day facility, assuming a $15-$20 boe development cost and a $5-$10 per barrel operating cost, at consensus pricing of $70-$80 from 2023 forward," Cutt said on a quarterly conference call on Monday.

"Under this scenario the Shenandoah development is economically justified. We are working with our partners to evaluate and reach alignment on the options available to us to progress the development in the field."

Cobalt has a 20% stake in the project, but has opened a data room to market its position in Shenandoah.

Other partners US indie ConocoPhillips and privately held Venari Resources.

In its quarterly earnings and operational report last week Anadarko booked a charge of $435 million on Shenandoah and said it would suspend further appraisal drilling as it evaluates the path forward.

Cobalt, which has struggled since a proposed sale of its Angolan assets fell through, also took a corresponding charge on Shenandoah of $232.8 million during the first quarter, contributing to an overall loss of $306.3 million in the first three months of 2017.

BP Boosts Hidden Gulf of Mexico Oil Estimates to 1 Billion Barrels By David Hunn | 11/22/2016 | http://fuelfix.com/

British oil major BP now believes it has discovered 1 billion barrels of oil previously hidden by salt formations across four fields in the Gulf of Mexico.

Last week, the company revealed that a new algorithm, run through its supercomputer, had identified 200 million barrels of oil in a pocket in the Atlantis field.

But, on Monday morning, BP’s Gulf of Mexico chief, Richard Morrison, told attendees at the Offshore Technology Conference at NRG Park in Houston that the company has already run similar computations in its other three Gulf fields, Mad Dog, Thunder Horse and Na Kika. BP scientists now believe there are roughly 1 billion barrels under salt formations that couldn’t be identified without the algorithm and supercomputer.

The technology, Morrison said, “has completely transformed what we can illuminate both inside the salt and below.”

Anadarko Cheers New Deep-Water Discoveries By Luke Johnson | 05/02/2017 | http://www.upstreamonline.com/

Texas-based Anadarko Petroleum revealed new deep-water discoveries in the US Gulf of Mexico and Colombia as it enjoyed the first full quarter of new production from offshore assets acquired last year.

On the home front, the US operator drilled a successful exploration well at a prospect dubbed Calpurnia in Green Canyon Block 727.

The well, drilled with Diamond drillship Ocean Black Hornet, hit about 20 feet of "net-oil pay on water in a well-developed Miocene-aged sand", the company said. It was then sidetracked updip where it found nearly 60 net feet of oil pay.

"The wellbore was temporarily abandoned and is expected to be utilised for future production as a tieback to one of the company's nearby operated facilities," Anadarko said.

Calpurnia is located near Anadarko's Caesar/Tonga, Heidelberg and Holstein facilities. It was drilled to a total depth of more than 21,000 feet.


Anadarko also hit more than 70 net feet of oil pay in its first development well at the Horn Mountain truss spar, a facility it acquired through last year’s acquisition of Freeport-McMoran's deep-water US Gulf portfolio. The well is expected to come online later this year.

Overall oil-and-gas sales volumes in the US Gulf more than doubled for Anadarko in the quarter to about 160,000 barrels of oil equivalent per day. That was due in large part to a full quarter on the books for the Freeport-McMoran assets, as well as "continued strong performance" at Lucius and Caesar/Tonga.

In less cheery US Gulf news, Anadarko did not encounter the oil-water contact it sought with the closely watched Shenandoah-6 appraisal and sidetrack well in the eastern part of the field.

"The company has currently suspended appraisal activity in the field while it evaluates the path forward," it said.

In Colombia, Anadarko made its third offshore discovery in the country with its Gorgon-1 wildcat. The well, which follows previous successes at Purple Angel and Kronos, hit 260 to 360 net feet of gas pay.

It was drilled in the norther part of the Grand Fuerte area offshore Colombia. Anadarko said it acquired a "whole-core across the primary reservoir interval".

Drillship Bolette Dolphin, which drilled Gorgon, will now mobilise to Ivory Coast to drill a appraisal of Anadarko's Paon discovery. It is scheduled to spud in May to test the updip extent of the oil accumulation in the "south channel" of the field.

If successful, a drill stem and interference testing programme is planned for late 2017, Anadarko said.

Anadarko posted a loss of $318 million in the first three months of 2017. That compares to a loss of more than $1 billion a year ago.

The 2017 loss included $1.01 billion in dry hole expenses and impairments of unproved properties, up from $35 million a year ago.

Revenues for the 2017 quarter were $3.8 billion, up from $1.7 billion a year earlier.

Total oil production for the quarter was 353,000 barrels per day, compared to 281,000 bpd in the 2016 quarter.

The 2017 results were bolstered by record oil sales in the deep-water US Gulf and the onshore Delaware basin.

Thunder (Horse) Rolls By Audrey Leon | 05/01/2017 | http://www.oedigital.com/

Audrey Leon profiles the Thunder Horse field, speaking with project manager Steve Raymer about the BP-operated field’s most recent expansion project, which came in 11 months ahead of schedule and $150 million under budget.

This year is set to be an exciting one for BP. The firm is looking to bring seven projects online in 2017. One project, the Thunder Horse South Expansion (THSX) in the deepwater Gulf of Mexico (GoM), was originally slated for start up in late 2017, but it had the good fortune to come online earlier than scheduled, due to good planning and execution.

The THSX project is expected to boost production at the Thunder Horse facility by an estimated 50,000 gross boe/d.

BP achieved this with the installation of two new 11,000ft flowlines, and a four-slot manifold, which creates a new subsea drill center (No. 45), 2mi south of the Thunder Horse platform.

The THSX project started up in December 2016, 11 months ahead of schedule. BP saw US$150 million in savings on the $1 billion project. Bringing a project online quickly and cost-effectively is quite a boon in today’s


low oil price environment. These kinds of numbers are positives that plenty of oil and gas firms will want to replicate.

BP acknowledged the success the firm has had at previous GoM projects, such as its Kepler field, which ties back to BP’s Na Kika platform.

“We are also making significant progress in exploration by shortening our cycle time from discovery to production on some of our latest discoveries,” said CFO Brian Gilvary in BP’s 3Q 2016 analyst call. “Our Nooros discovery in Egypt was on production two months after discovery and Kepler-3 came online within 11 months of discovery, which is faster than typical GoM developments of this scale.”

The main drivers for bringing THSX online ahead of schedule and under budget were standardization, cooperation between suppliers and contractors, and great planning and coordination on execution efforts, says Steve Raymer, THSX project manager, BP.

The Field

While Thunder Horse is one of BP’s largest fields in the GoM, it hasn’t been the easiest to develop. This is owed to its complex geology and mother nature’s whim.

Discovered in July 1999, BP did not bring the field into production until 2008, three years after its initial target, due to issues stemming from a direct hit by Hurricane Dennis (2005).

BP operates Thunder Horse (75%) along with co-owner ExxonMobil (25%). The field sits inside Mississippi Canyon blocks 778/822 in the Boarshead basin, 150mi southeast of New Orleans in water depths ranging from 5800-6500ft.

Thunder Horse consists of two adjacent fields (North and South) with reservoirs in the Upper Miocene turbidite sandstones. In BP’s fact sheet on the field, the company calls the wells required to access the reservoirs, “some of the most challenging and deepest in the Gulf.”

The development consists of subsea wells producing to a permanently moored, floating semisubmersible production, drilling and quarters (PDQ) facility. The PDQ, which is BP’s largest facility in the GoM, is taut-wire moored in 6300ft water depth. It has 250,000 bo/d and 200 MMcf/d of natural gas processing capacity, and accommodation for nearly 300, BP said. Oil and gas is exported through the Mardi Gras Transportation System.

BP awarded FMC Technologies a frame agreement in 2001 to provide the field’s subsea production system, which is designed for 350°F and 15,000psi and operated via an electro-hydraulic controls system. The field has 5in x 2in conventional subsea trees and manifolds. Round-trip pigging capability is incorporated into the manifold architecture, FMC (now part of TechnipFMC) says.

Geology

According to a 2010 OTC paper on Thunder Horse, some two-thirds of the oil in place is in the South with one-third in the North. North and South share a common aquifer in the syncline separating the two regions, says Arnold et. al.

The paper describes Thunder Horse South as a large 4-way dip closure that begins at approximately 20,000ft true vertical depth subsea (TVDSS) and persists to 30,000ft TVDSS. Arnold et al said that half of the closure lies below a thick salt canopy.

Arnold et. al describe Thunder Horse North as a large 3-way dip closure against a near vertical salt stock. The paper says that there is a high degree of lateral stratigraphic and structural segmentation. The closure lies below the salt canopy, which also results in poor imaging (similar to Thunder Horse South).

Multiple stacked reservoirs are found in Miocene age sandstones on both the North and South fields, the paper states, which are grouped as Pink, Brown, and Peach stratigraphic intervals.


“Not all of those are developed at every drill center in the North or South,” Raymer says. “By and large, the North is Pink and Brown, and the South is Brown and Peach.”

Raymer says that the sections grouped as Pink, Brown and Peach denote different reservoir sections, depths, pressures and hydrocarbon composition. “They have different properties that result in different production,” he says. “They can all mix together and produce together. Part of the beauty and part of the challenge is developing those three different reservoir sections.”

Field Improvements

Since start up in 2008, BP has steadily worked to improve production from the field. In May 2016, the supermajor started up a water injection project on the North field, with the goal of extending production life and recovering an additional 65 MMboe.

Aimed at Thunder Horse’s North Pink geology, the water injection will boost overall recovery within that section of the field, Raymer says.

“It’s always been in Thunder Horse’s long-term plan to have water injection as part of the overall development concept to deliver full recovery from the field,” he adds. “We are seeing a good response from the project and we’re very happy with it.”

Expansion

Raymer says that when the Thunder Horse field was initially developed, BP knew to provide for future expansion.

“When we first sanctioned Thunder Horse, we knew it would be a massive field,” he says. “We put the infrastructure in to initially develop a good chunk of that. And, while we did that, we also recognized that we didn’t have perfect understanding of the reservoir.”

Raymer says that, as time has gone by, and BP drilled more wells in the South, the firm increased its knowledge about not only the size of the reservoir, but how best to develop it.

“It became clear that the most economical way for us to [develop it] was to add another drill center and expand an area of the field that we called South Expansion, to tie into the existing infrastructure, using the expansion capability that we built in initially,” he says.

Part of what made the THSX project so successful is the use of standardized components and working with contractors who had previously provided equipment on the field.

Raymer says that for THSX, BP wanted to use what Thunder Horse already had. “We had an existing subsea tree design,” he says. “All we had to do was call FMC Technologies and order a few more. We had existing subsea equipment, the same manifold design. We did not redesign anything from scratch where we had the opportunity to use something that we already had.”

The project came together quickly. Raymer says BP ordered its first long-lead equipment in August 2014, taking delivery of most of that equipment around August/September 2016. “We installed the majority of that equipment toward the back end of 2016 and we brought production on in December.”

In 2015, Technip, prior to its merger with FMC Technologies – another supplier on the project – was tasked with design, engineering, fabrication, installation and pre-commissioning of the new production pipeline systems on THSX. The project scope included: project management and engineering; coating, fabrication, installation and permanent anchoring of two rigid, 3.25km production flowlines, each with four pipeline end terminations; pre-commissioning and testing. Technip’s ultra-deepwater pipelay and subsea construction vessel, Deep Blue, handled offshore installation work.

Deep Blue unspooled and lowered the two new flowlines to the seabed over a period of eight days, with the help of Helix’s Grand Canyon II, to connect the existing drill center below the Thunder Horse platform with the new drill center, according to BP Magazine.


Grand Canyon II assisted with the pull-in operations as well as pre-commissioning work for the flowlines once they were installed on the seabed.

BP also used the subsea construction vessel, Siem Stingray, to install the rest of the subsea equipment including production manifolds and jumpers.

Overcoming Challenges

One major hurdle that plagues most large-scale developments is the scheduling of simultaneous activities. Raymer said that the THSX project came together because of good communication and well-coordinated project execution.

“There was a high amount of SIMOPS (simultaneous operations) going on in the field while we were doing our construction,” Raymer says. “The Thunder Horse asset itself was drilling a well as well as producing. We had [Transocean’s] DD3 [Development Driller III] drilling our first South Expansion well at drill center 45 – where we were putting all the expansion equipment.”

Raymer adds that while those operations were going on, Technip was in the process of laying the flowlines with Deep Blue.

“Just in that time frame alone in summer 2016, we had three extremely valuable assets working together in close proximity, and we were able to complete all that construction work without disruption to the ongoing production and drilling activities that were occurring simultaneously,” Raymer says. “While it certainly was a big challenge, it was also our greatest success as a project to be able to deliver that work safely, without incident and without any disruption to operations.”

Planning played a big role as well in executing the project’s SIMOPS.

“We did an enormous amount of upfront work,” Raymer says. “We employed some 3D modeling techniques to explicitly map out and model the paths that the flowline installation vessel would need to take. We did similar 3D models showing any required offsets or movements that the drilling rigs might need to do while operating.

“Once we had all that technical information, then, the bulk of the work from that point is communication, and regular engagement sessions with the leadership and the operations managers of each of the different assets coming together, and being very clear on the roles and responsibilities on the execution plans and on the scope of work, and the timing that we were all going to follow to orchestrate the execution of all this activity.

“That coordination was a major driver towards us being able to deliver the project 11 months ahead of schedule,” Raymer says, adding: “Being able to do all those things simultaneously (flowline, subsea equipment construction and installation at the same time as drilling and completions of the wells), made the execution extremely efficient versus having to do all those things one at a time, in a series.”

Of course, another potential challenge, like with any offshore project in the GoM, is mapping out a window to execute work before the worst of Hurricane season. BP is famous for its severe weather assessment team, which boasts a team of meteorologists who keep tabs on GoM storm conditions.

For the THSX project, BP ran into a spot of good luck due to a relatively mild 2016 hurricane season.

“We specifically aimed for and targeted a window of opportunity that was right before the start of hurricane season,” Raymer says of the THSX project. “We were able to get this flowline installation done in the late July/beginning of August time frame. And that was before the active part of hurricane season, allowing us to minimize that risk.

“If there had been a storm that had come through, during that time, we had contingency plans in place to be able to postpone and re-assemble post-event as necessary. But, fortunately, that wasn’t the case for us.”

What’s next?


Raymer says that BP expects to see an increase of 50,000 boe/d at the field. “We have two of our four wells online, at this point, with the third currently being drilled (by the West Vela),” he says. “The fourth is in line to be done after that.”

BP expects full production to be achieved at THSX in 2019.

Stampede Rumbles out to Deep-Water US Gulf By Luke Johnson | 05/11/2017 | http://www.upstreamonline.com/

The newest production facility in the deep-water US Gulf of Mexico has sailed from Texas and will soon arrive at its final location.

The Hess-operated Stampede tension-leg platform set sail from Kiewit Offshore Services' yard in Ingleside, Texas, on 5 May, the New York-based company confirmed.

The integrated facility will be installed in Green Canyon Block 468 in the deep-water Gulf of Mexico, about 170 miles south-east of New Orleans.

The journey is expected to take about 10 days, Upstream understands. Heerema is handling the tow-out, and installation work, which is due to begin later this month or early next month.

The hull was designed and engineered by Modec and built by Samsung Heavy Industries in South Korea. DMAR did the detailed design for the hull and mooring system. Wood Group Mustang designed and engineered the topsides.

The $6 billion project, which was sanctioned in 2014, will produce from the 2005 Knotty Head and Pony discoveries, which Hess reckons hold gross recoverable resource of between 300 million and 350 million barrels of oil equivalent.

The TLP has a processing capacity of 80,000 barrels per day of oil, 100,000 bpd of water injection and 80 million cubic feet per day of gas throughput.

It will also support two export risers, and a variety of other risers, tied back from multiple subsea well centres. First oil is due in the first half of 2018.

Hess holds a 25% operating stake in the project, with US supermajor Chevron, Norway's Statoil and Nexen, wholly-owned by China's CNOOC Ltd, also holding stakes of 25% each.

BHP Spuds Wildling-2 in GoM By Melissa Sustaita | 04/26/2017 | http://www.oedigital.com/

BHP Billiton spudded the Wildling-2 ultra deepwater well in the Gulf of Mexico earlier this month, and plans to spud the nearby Scimitar wildcat in September.

The Australian company encountered mechanical difficulty at the Wildling-1 well, and had to plug and abandon it earlier this month, which led to BHP to spud Wildling-2. Drilling at Wildling-2 is currently underway, with results expected in September 2017.

BHP says that Wildling is expected to establish the scale of the Caicos oil discovery.


Wildling-1 is in Green Canyon 520 at 1230m water depth. It was spudded on 8 January.

In September, BHP will also spud the Scimitar exploration well in the Gulf of Mexico.

In its Q1 2017 report, BHP Billiton says it was the apparent high bidder on two leases adjacent to the Scimitar prospect (GC260 and GC304) in the Central Gulf of Mexico Lease Sale 247. BHP Billiton (28.32%), with BP (operator), was the apparent high bidder on two leases adjacent to the Mad Dog field (GC 738 and GC870). The award of the leases remain subject to regulatory approval.

During the period, BHP executed its contract with Mexico’s Pemex to acquire operatorship and 60% in Blocks AE-0092 and AE-0093 in the GoM, which contains the Trion discovery. The deal includes one appraisal well, one exploration well and the acquisition of additional seismic data.

Offshore Trinidad and Tobago, appraisal work continues following Phase 1 of the deepwater drilling campaign to assess the potential commercialization of the gas discovery at LeClerc and to prepare for deepwater oil exploration in Phase 2, which is expected to start in 2H 2018.

Off Australia, seismic work continued in the Exmouth sub-basin following regulatory approval of the Good Standing Agreement in relation to the WA-475-P permit. The seismic survey is expected to be completed during May 2017.

Stone Considers Amethyst Sidetrack By Caroline Evans | 05/08/2017 | http://www.upstreamonline.com/

Stone Energy is considering potential sidetrack operations on a deep-water US Gulf of Mexico well that has been shut-in for over a year due to a suspected tubing leak.

The deep-water operator, which emerged from chapter 11 bankruptcy in February, said the possibility of conducting sidetrack operations on the Amethyst well is dependent on finding an "appropriate" partner.

In its first-quarter earnings report, Stone said it had completed temporary abandonment operations at the well in late April at a cost of $19 million.

The Amethyst well is tied back to the Pompano platform and was shut in late April of 2016 for a technical evaluation to address suspected blockage around the perforated section.

In November, Stone initiated acid stimulation work and "intermittently" flowed the well throughout the month, at a rate of 10 million to 15 million cubic feet per day of gas.

A routine shut-in later that month to record pressures led to the determination there was a likely tubing leak.

Stone also disclosed results from its Pompano platform drilling programme. Stone completed its Mt Bona well, in which it holds a 100% working interest, at the end of April. The well is currently producing around 950 Boe per day, according to the release.

Stone also said it would postpone drilling the Providence prospect using the Pompano platform drilling rig, and plans to release the rig by mid-summer.

The company reported net income of $370.7 million for the first quarter of 2017 compared to a net loss of $259.6 million in the prior-year quarter. Stone also booked operating revenues of $94.7 million compared to $25.8 million a year ago.


Offshore Fracking? Baker Hughes Builds Deep-Water Tool By David Hunn | 05/01/2017 | http://fuelfix.com/

The Houston oil field services firm Baker Hughes has built a new hydraulic fracturing device for deep-water drilling, and says the service could save operators hundreds of millions of dollars.

Baker Hughes announced the device, called DEEPFRAC, on Monday morning, as the Offshore Technology Conference was opening at Houston’s NRG Park, home to the National Football League’s Texans.

Hydraulic fracturing is a laborious, multi-stage process. DEEPFRAC eliminates many of those steps, Baker Hughes said. It uses sleeves that can be set in multiple positions and balls that control the flow of oil and fracking liquids and eliminates the casing and cementing operations. Baker Hughes said the device will provide “unprecedented efficiency gains.”

To create the device, the company adapted hydraulic fracturing technologies and techniques from the U.S. onshore shale revolution, said Jim Sessions, vice president of completions at Baker Hughes.

DEEPFRAC will allow companies to frack 20 stages — up from just five, in some cases — and cut certain well completion steps from weeks to days, the company said.

On a recent job, DEEPFRAC saved about 25 days of rig time and $40 million on a first-ever 15-stage deep-water completion in the Gulf of Mexico, Baker Hughes said.

Wood Group Awarded Conceptual Engineering Contracts for Chevron's Tigris, Anchor By Staff | 05/17/2017 | http://www.worldoil.com/

HOUSTON -- Wood Group has signed a 10-year master services agreement (MSA) with Chevron that allows them to deliver conceptual engineering, pre-front-end engineering design (pre-FEED), FEED, detailed design and procurement services in multiple locations across Chevron’s global onshore and offshore asset portfolio.

Contracts to provide topsides conceptual and pre-FEED for two semisubmersible platforms on the Tigris and Anchor developments in the Gulf of Mexico (GoM) have been awarded as the first work orders under this new agreement.

The Tigris and Anchor platforms will operate in 4,000 to 5,000 ft of water, approximately 140 mi offshore Louisiana in the GoM.

Chevron and Wood Group share a long-standing relationship, with several projects in the GoM, including Jack and St. Malo and Blind Faith, plus the Gorgon project in Australia.

Robin Watson, chief executive of Wood Group, said, “The MSA and Gulf of Mexico contracts continue our strong relationship with Chevron and demonstrate the quality of our people, our capability and our long track record of successful delivery to this key client.

“We have in excess of 30 years of experience in deepwater developments for a broad range of customers, from concept to closure. The amalgamation of this knowledge and experience will be brought to bear for Chevron for an optimal solution.”


Oceaneering to Provide Services and Products for Shell’s Appomattox Development in Gulf of Mexico Press Release | 05/16/2017 | http://www.oceaneering.com/

HOUSTON – Oceaneering International, Inc. (“Oceaneering”) (NYSE:OII) announced that it has been awarded a contract to provide services and products to support the design, fabrication and installation of ancillary flowline hardware for the Appomattox development in the Mississippi Canyon Area of the U.S. Gulf of Mexico for Shell Offshore Inc. (“Shell”).

The scope of work for ancillary flowline hardware will include the procurement and installation of pre-lay and post-lay crossing mattresses, flowline jumper fabrication and installation, manifold installation, as well as the design, procurement, fabrication and installation of subsea buoyancy for flowline thermal expansion.

Oceaneering’s state-of-the-art, U.S. flagged vessel, the Ocean Evolution, scheduled for delivery in the latter part of 2017, is expected to be used to perform the offshore installation services in various phases commencing late 2017 and ending sometime in 2019. Oceaneering is also expected to provide project management, engineering, remotely operated vehicle services, survey services, subsea tooling and global data solution services to Shell as needed for this work.

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, said, “We are extremely pleased to expand our scope of supply, in addition to previously securing the control umbilicals contract, on this Shell deepwater Gulf of Mexico development. This project demonstrates Oceaneering’s capabilities to leverage our comprehensive portfolio of offshore services and products to produce safe, reliable and cost effective solutions that meet all of a customer’s requirements.”

Oceaneering is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment and aerospace industries.

Blake Lands Energy XXI GoM Deal By OE Staff | 04/04/2017 | http://www.oedigital.com/

Blake International Rigs signed a contract to mobilize the Blake Rig 651 to Energy XXI’s South Pass 77 C platform.

The initial contract term is for one well, which is scheduled to start in late April following a 30-day make ready period at Blake’s Houma facility.

This initial term should keep the rig under contract into June 2017, and Energy XXI retains the right to any option wells. The Blake Rig 651 recently completed a 14 well P&A program with a major oil company in the US Gulf of Mexico, says Blake International.

The Blake Rig 651 is a 650 horsepower self-erecting modular platform rig. Blake International Rigs owns and operates a fleet of 10 platform rigs in the US and Mexico.

Siemens Opens Gulf Coast Facility By OE Staff | 04/12/2017 | http://www.oedigital.com/

Siemens has officially opened the doors of a new service center in Geismar, Louisiana, devoted to serving the region’s oil and gas industry, and related markets.

http://www.oceaneering.com/


With 28,000sq ft of shop floor space, the service center can repair and rebuild critical equipment such as centrifugal and reciprocating compressors, steam turbines, expanders, pumps, and rotary compressors.

Judy Marks, CEO for Siemens USA and executive vice president for new equipment solutions at the Dresser-Rand business, and Tim Holt, CEO for Siemens power generation services division, were among several senior executives who joined employees for a special ribbon cutting ceremony at the facility.

“When our customers’ assets require physical services, we invest in our people and in modern facilities like this one to ensure we have the right expertise and the right resources available to help create differentiating value for our customers,” said Holt. “And we put them both close to our customers because we know that’s the difference between mere service and excellence.”

As part of the grand opening activities, Siemens hosted an ‘Oil and Gas Summit and Technology Tailgate’ at the Geismar service center. The summit convened a discussion with industry leaders focused on digitalization and innovation in the oil and gas sector, including a panel devoted to cyber security. The event provided an opportunity for local oil and gas solution integrators, original equipment manufacturers, refinery engineers and managers, and engineering, procurement and construction companies to engage in a conversation with technical experts and public policy leaders about the trends that are shaping the industry’s future in the Gulf Coast region. The ‘technology tailgate’ included mobile technology showcases and hands-on displays.

For oil and gas customers, Siemens supplies a broad spectrum of products, services and solutions that support upstream, midstream and downstream applications. With its acquisition of Dresser-Rand and the addition of Rolls-Royce Energy’s aero-derivative gas turbine business, Siemens has an installed base of more than 130,000 compressors, gas turbines and steam turbines.

Cobalt Looks For North Platte Partner By Melissa Sustaita | 05/08/2017 | http://www.oedigital.com/

Cobalt International Energy has opened a data room for its deepwater US Gulf of Mexico North Platte field as it announced the latest appraisal well drilling results on the field.

Cobalt, which says the field, with an estimated 500-800 MMbbl resource range, making it one of the 10 largest field in the Gulf of Mexico, is looking to sell off from 20% to its entire 60% ownership in the field. A bid date is set for early July.

Tim Cutt, Cobalt CEO, said in the firm's Q1 2017 earnings call that sidetrack #2 of the North Platte #4 well had intersected "high-quality, lower tertiary Sands, that are full to base with oil.” The well, about 1.2 mi north of the discovery well, proves that the high-quality oil bearing sands extend across the crest of the field, Cutt said.

“We are currently conducting bypass operations to collect core samples to complete the appraisal program on the eastern flank of the field. Through extensive appraisal drilling, we have determined that the true vertical thickness of the reservoir quality sands range from approximately 500ft on the crest to approximately 1000ft on the flanks of the field,” Cutt said.

“Prior to incorporating the new data from North Platte #4, sidetrack #2, the probabilistic mean recoverable volume is estimated at 650 MMboe... North Platte is one of the most attractive oilfields on the global market in terms of size, quality and physical terms.”


When speaking of North Platte, Cutt said that it's just fundamentally different. “It's one of the large, what's called a four-way closure in the Gulf of Mexico, where it's actually kind of sealed dome, it has faulting around the perimeter, but it's kind of a four-way closure to the oil migrates to the top, that's in very simple terms,” Cutt said. “We started the appraisal program with a #1 well in the Northwest, we then came down to the southwest with the #3 well, went to the crest of the field with the #3 sidetrack, came across to the southeast with the #4 well, which found oil field base. We just now have gone a mile - over a mile north and we drilled substantially down dip.”

Over at Anadarko Petroleum’s Shenandoah, also in the deepwater Gulf of Mexico, Cobalt said that the company is currently in the preliminary stages of working with its partners to understand the operator's intension, and working to evaluate multiple ways to progress efforts at Shenandoah.

“The Shenandoah partnership, having completed its appraisal drilling program, is evaluating well results to properly determine the optimal development path forward for the field. Although the Shenandoah #6 and the #6 sidetrack wellbores were wet, Cobalt believe that the appraised resources will justify a right-sized standalone facility or a tied back to an existing facility. The Shenandoah appraisal program to date has established a recoverable resource of approximately 200 MMboe,” Cutt said.

Cutt also said that the untested western flank of the field offers additional potential. “Cobalt's assessment of the field's total recoverable resource range is 200-300 MMboe. However, the fully appraised 200 MMboe resource is economic, with the appropriate development concept and with current market rates for drilling, fabrication and installation,” Cutt said. “We are currently running development economics for a 60,000 b/d, assuming a 15-20 boe development cost and a US$5-$10/bbl operating cost, at consensus pricing of $70-$80/bbl from 2023 forward.”

Under this scenario, Cutt said that the Shenandoah development is economically justified, and that Cobalt is working with its partners to evaluate and reach alignment on the options available to us to progress the development of the Shenandoah field.

“We have progressed the Shenandoah marketing process, hosted companies in the physical data room and had set a bid date for mid-June. The recent appraisal results have been incorporated into that data room,” Cutt said.

Douglas Brooks Appointed Energy XXI CEO By OE Staff | 04/18/2017 | http://www.oedigital.com/

Energy XXI Gulf Coast (EGC) has appointed Douglas E. Brooks as chief executive officer and president effective 17 April 2017. The EGC board concurrently increased the size of the board from six to seven directors and named Brooks to fill the newly-created directorship.

Brooks has over 34 years of experience in the energy industry. Most recently he served as the chief executive officer for Yates Petroleum Corp., a privately-owned exploration and production company, from April 2015 until Yates’ merger with EOG Resources in October 2016. Brooks previously served as chief executive officer of Aurora Oil & Gas Ltd. from October 2012-June 2014, and as a senior vice president at Forest Oil Corp. from April 2012-October 2012. In addition, he spent 24 years with Marathon Oil Co. in roles of increasing responsibility, lastly as the director of upstream mergers and acquisitions and business development for the Americas. He has also built two private equity-sponsored firms focused on unconventional resource projects in the western US.

Brooks currently serves on the board of directors of Chaparral Energy and has served as a board member for Aurora Oil & Gas Ltd., Magdalena Energy Co., Yates Petroleum and the Houston Producers’ Forum. Additionally, he is currently an advisor for Hart Energy’s A&D (acquisition and divestiture) Watch, a global energy research publication. Brooks holds a bachelor of science degree in business management from the University of Wyoming – Casper and a masters of business administration, finance from Our Lady of the Lake University in Texas.

“[Brooks’] impeccable reputation, extensive industry experience and clear track record of value creation as chief executive at other exploration and production companies make him the perfect fit for our company,” said Michael


S. Reddin, chairman of the board, EGC. “His skills are also highly complementary to those of Scott Heck, our chief operating officer, who has an extensive offshore, engineering and operations background.”

“Energy XXI is at an inflection point in its history since it has emerged from restructuring with a strong balance sheet that provides maximum flexibility for future value creation,” said Brooks. “I look forward to working with our board, senior management, our technical and financial teams, and our stockholders as we plan and execute our new path forward.”

Ensco to Takeover Atwood Oceanics By Melissa Sustaita | 05/30/2017 | http://www.oedigital.com/

Ensco is set to acquire Atwood Oceanics in an all-stock transaction worth some US$839 million, creating a company with the largest jackup fleet in the world.

Ensco and Atwood entered the definitive merger deal today (30 May), which was unanimously approved by each company’s board of directors.

Under the terms of the merger agreement, Atwood shareholders will receive 1.60 shares of Ensco for each share of Atwood common stock for a total value of $10.72 per Atwood share based on Ensco’s closing share price of $6.70 on 26 May 2017. Upon close of the transaction, Ensco and Atwood shareholders will own approximately 69% and 31%, respectively, of the outstanding shares of Ensco plc. There are no financing conditions for this transaction, the two companies said in a joint statement.

Ensco says it expects to realize annual pre-tax expense synergies of approximately $65 million for full year 2019 and beyond; and 2018 cost synergies are projected to be more than $45 million.

Ensco expects the acquisition to strengthen its position as the leading offshore driller with exposure to deep- and shallow water markets that span six continents.

The deal is still subject to approval by the shareholders of Ensco and Atwood, as well as other customary closing conditions. Ensco and Atwood intend to file a joint proxy statement/prospectus with the Securities and Exchange Commission as soon as possible. The companies anticipate the deal could close as soon Q3 2017.

Upon closing the deal, Ensco will add six ultra deepwater floaters, including four of the most capable drillships in the industry, and five high-specification jackups.

The combined company will have a fleet of 63 rigs, comprised of ultra deepwater drillships, versatile deep- and mid-water semisubmersibles and shallow water jackups, along with a diverse customer base of 27 national oil companies, supermajors and independents.

The combined fleet will be among the most technologically advanced in the industry, says Ensco. Within the fleet of 26 floating rigs (semisubmersibles and drillships) are 21 ultra deepwater drilling rigs, capable of drilling in water depths of 7500ft or greater, with an average age of five years – establishing this fleet among the youngest and most capable in the industry.

The jackup fleet will be the largest in the world, composed of 37 rigs, including 27 premium units. These jackups are all equipped with many of the advanced features requested by clients for shallow water drilling programs, such as increased leg length, expanded cantilever reach, greater hoisting capacity and offline handling capabilities.

The combined company will have operations and drilling contracts spanning six continents, including the Gulf of Mexico, Brazil, West Africa, Middle East, North Sea, Mediterranean and Asia Pacific.

Ensco’s executive management will continue with Carl Trowell as president and CEO; Carey Lowe as executive VP and COO; and Jon Baksht as senior VP and CFO.


Ensco plc’s chairman will continue to be Paul Rowsey and the board of directors will include Carl Trowell, plus two members from Atwood’s current board effective at closing.

Ensco will continue to be housed in the UK and senior executive officers will be located in London and Houston.

“The combination of Ensco and Atwood will strengthen our position as the leader in offshore drilling across a wide range of water depths around the world – creating a broad platform that we can build upon in the future. This acquisition significantly enhances our high-specification floater and jackup fleets, adding technologically advanced drillships and semisubmersibles, and refreshing our premium jackup fleet to best position ourselves for the market recovery,” says Ensco CEO Carl Trowell.

“By bringing together our high-specification rig fleets, technology and innovation, and talented rig crews, we plan to continue delivering high levels of operational and safety performance to an even larger group of clients. We will remain one of our industry’s best capitalized companies,” says Trowell. “Our combined financial strength, diverse customer base and larger scale should lead to greater strategic and competitive advantages as well as cost efficiencies, allowing for opportunistic investments through the market cycle.”

“The combination is an ideal strategic fit,” says Atwood CEO Rob Saltiel. “We believe the combined company will offer an unmatched rig fleet and workforce. These attributes, anchored by a strong balance sheet, should enable the company to thrive as market conditions improve and allow Atwood shareholders to fully participate in the market recovery.”

GulfMark Offshore Plans Bankruptcy Filing By Ryan Maye Handy | 05/16/2017 | http://fuelfix.com/

Houston-based GulfMark Offshore, which runs support vessels for offshore drilling, said Tuesday that it plans to to file for bankruptcy after reaching an agreement with bond holders to convert debt to equity.

The reorganization, which was first reported in the Houston Business Journal, would help the company shed $430 million in debt. Shareholders will have .75 percent of the equity in the reorganized company. GulfMark said it expects to file for Chapter 11 bankruptcy by May 21.

“We are confident that this step will position GulfMark to seize opportunities as the downturn continues and in the eventual market recovery,” said Quintin Kneen, GulfMark’s CEO, said in statement.

While operators drilling in West Texas’ shale plays have managed to turn a profit with lower oil prices, the offshore drilling industry has struggled to recover as oil prices hover at or below $50 a barrel.

Earlier this month at the Houston’s annual Offshore Technology Conference, the industry’s largest gathering, executives from large companies discussed the need to cut costs in offshore operations. Some companies, like British oil company BP, said they can profit with “lower- for- longer” oil prices. But smaller offshore drillers and service companies haven’t managed to profit, conference goers said.

Oil Bankruptcies Slow, Even as Market Recovery Wobbles By Collin Eaton | 05/05/2017 | http://fuelfix.com/

After a two-year downpour, bankruptcies in the oil patch have slowed dramatically, new data shows.

In the first four months of the year, the number of new oil and gas Chapter 11 cases have come in much lower than what it was in the same period last year, according to reports this week by Dallas law firm Haynes & Boone.

Nine U.S. oil producers, including Houston’s Memorial Production Partners and Vanguard Natural Resources, have filed for Chapter 11 bankruptcy protection this year, compared to 29 this time last year. These cases bring


the number of North American oil-company bankruptcies to 123 since 2015, involving nearly $80 billion in debt. Houston-based Adams Resources Exploration Corp. filed the most recent bankruptcy on Haynes & Boone’s list.

The slowdown in oil-producer bankruptcies is a sign higher crude prices and relentless cost-cutting have eased the financial pressure on companies. But this week, U.S. oil prices fell below $46 a barrel, putting the industry on edge again.

“Maybe the storm has not passed,” said Charles Beckham, a partner at Haynes & Boone. Beckham said he wouldn’t be surprised to see another wave of bankruptcies if oil prices don’t quickly recover back into the $50 a barrel range.

“The patience of their lenders could evaporate,” he said.

Oil field services companies, which can’t use oil hedges to bolster their balance sheets, haven’t fared as well. Sixteen service firms have filed for bankruptcy this year, compared to 22 this time last year. The increase brought the number of oil and gas services Chapter 11 cases since 2015 to 127. Those cases involved a combined $25.9 billion in debt, according to Haynes & Boone.


Well Permits Statistics Updated Monthly

Data last updated on 05/01/2017

Permit Type

Water Depth Less than 500ft1 Water Depth Greater than 500ft2

Total Approved

*all water depths Permits

Approved

Apr 1-30,

2017

Permits

Approved

Apr 1-30,

2017

Permits

Approved

Apr 1-30,

2017

Permits

Approved

Apr 1-30,

2017

Permits

Approved

Apr 1-30,

2017

Permits

Approved

Apr 1-30,

2017

New Well 1 9 2 6 3 15 7

Revised New Well 3 0 0 24 2 5 27

Bypass 0 1 1 4 0 0 4

Revised Bypass 2 0 0 9 0 0 11

Sidetrack 2 13 2 1 3 2 3

Revised Sidetrack 2 0 0 2 0 0 4

1Shallow water drilling operations became subject to new rules and information requirements as of June 2010. 2Deep water drilling operations became subject to new rules and information requirements as of October 2010. 3Submitted permit applications may be returned for further information or clarification.

Approved Permits By

Water Depth For All Types

Shallow Water (< 500 ft) Deep Water (> 500 ft)

New

Wel

l

Rev

ised

N

ew W

ell

Byp

ass

Rev

ised

Byp

ass

Sid

etr

ack

Rev

ised

Sid

etr

ack

New

Wel

l

Rev

ised

New

Wel

l

Byp

ass

Rev

ised

Byp

ass

Sid

etr

ack

Rev

ised

Sid

etr

ack

Total for 2017 4 13 4 4 7 9 18 115 12 25 9 19

20

17

Apr 1 3 0 2 2 2 6 24 4 9 1 2

Mar 0 6 1 1 3 4 4 27 6 10 3 9

Feb 2 3 2 0 0 2 1 28 1 3 2 6

Jan 1 1 1 1 2 1 7 36 1 3 3 2


Approved Permits to Drill from February 1, 2017 to May 31, 2017

Approved Date

Permit Type

Surface Area

Block Number

Company Name Well Type Well

Name Water Depth

Rig Name

3/22/2017 Revised

New Well GC 782

BP Exploration & Production Inc.

Development MD016 4428 MAD DOG SPAR RIG

2/2/2017 New Well AC 772 Shell Offshore Inc. Exploratory 001 8807 NOBLE GLOBETROTTER

2/2/2017 Revised

New Well GC 512 Hess Corporation Development SA002 3589

DIAMOND OCEAN BLACKRHINO

3/23/2017 Revised

New Well MC 392 Shell Offshore Inc. Exploratory AE001 7257

T.O. DEEPWATER PROTEUS

2/21/2017 Revised

Sidetrack MC 809 Shell Offshore Inc. Development P007 3646 NOBLE DON TAYLOR

3/7/2017 New Well MC 127 Anadarko Petroleum Corporation

Exploratory 004 5466 ROWAN RESOLUTE

2/6/2017 Sidetrack VK 989 Stone Energy Corporation Development A024 1290 H&P 100

2/17/2017 Revised

New Well WR 758 Chevron U.S.A. Inc. Exploratory PS007 6960 PACIFIC SHARAV

4/4/2017 New Well GC 512 Hess Corporation Development SB001 3580 DIAMOND OCEAN

BLACKLION

2/7/2017 Revised

New Well WR 508 Shell Offshore Inc. Exploratory 010 9582

T.O. DEEPWATER THALASSA

4/3/2017 New Well GC 627 Anadarko Petroleum Corporation

Exploratory 003 4410 DIAMOND OCEAN

BLACKHORNET

4/12/2017 New Well MC 74 LLOG Exploration Offshore, L.L.C.

Exploratory 001 2626 SEADRILL SEVAN

LOUISIANA

2/1/2017 Revised

Sidetrack WC 544 Arena Offshore, LP Development A004 182 ROWAN EXL III

3/21/2017 Revised

Sidetrack WR 584 Exxon Mobil Corporation Development JU105 7147 MAERSK VIKING

2/2/2017 Revised

New Well GC 727

Anadarko Petroleum Corporation


BLACKHORNET

2/2/2017 Revised

New Well WR 52



BLACKHAWK

2/3/2017 Revised

New Well ST 260

Walter Oil & Gas Corporation

Exploratory 001 294 ENSCO 75

2/1/2017 WC 544 Arena Offshore, LP A004 182 ROWAN EXL III

2/6/2017 Revised

New Well GC 521

BHP Billiton Petroleum (GOM) Inc.

Exploratory 001 4036 T.O. DEEPWATER

INVICTUS

2/3/2017 Revised

Sidetrack GB 959

Cobalt International Energy, L.P.

Exploratory 004 4566 ROWAN RELIANCE

2/3/2017 Bypass WC 544 Arena Offshore, LP Development A004 182 ROWAN EXL III

2/6/2017 Revised

New Well GB 216 Hess Corporation Exploratory 006 1372 NOBLE PAUL ROMANO



Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

2/3/2017 Revised

New Well GC 727



BLACKHORNET

2/2/2017 Revised

New Well MC 778


Development 014 6037 THUNDER HORSE PDQ

2/9/2017 New Well WC 544 Arena Offshore, LP Development A012 182 ROWAN EXL III

2/9/2017 Revised

New Well MC 822


Development 012 6268 SEADRILL WEST VELA

2/8/2017 Revised

New Well MC 807 Shell Offshore Inc. Development MB007 3038 OLYMPUS N88

2/8/2017 Revised

New Well GC 727



BLACKHORNET

2/17/2017 Bypass SS 349 W & T Offshore, Inc. Development A016 372 H&P 107

2/8/2017 Revised



2/10/2017 GC 727 Anadarko Petroleum Corporation

004 4595 DIAMOND OCEAN

BLACKHORNET

2/9/2017 Revised

New Well GC 420 Shell Offshore Inc. Exploratory 001 3049


2/16/2017 Bypass GC 727 Anadarko Petroleum Corporation


BLACKHORNET

2/9/2017 Revised


2/17/2017 Revised

New Well AC 772 Shell Offshore Inc. Exploratory 001 8807 NOBLE GLOBETROTTER

2/23/2017 New Well WC 544 Arena Offshore, LP Development A011 182 ROWAN EXL III

2/13/2017 Revised

New Well MC 778



2/14/2017 Revised


3/22/2017 Sidetrack ST 204 EnVen Energy Ventures, LLC Development B001 153 ENSCO 68

2/14/2017 Revised

New Well MC 822



2/16/2017 Revised



2/13/2017 Revised

Sidetrack VK 989 Stone Energy Corporation Development A024 1290 H&P 100

3/31/2017 New Well WR 508 Shell Offshore Inc. Exploratory 013 9582 T.O. DEEPWATER

THALASSA

3/3/2017 New Well GC 478 LLOG Exploration Offshore, L.L.C.


LOUISIANA

2/15/2017 Revised

New Well WC 544 Arena Offshore, LP Development A012 182 ROWAN EXL III

2/17/2017 Sidetrack WR 52 Anadarko Petroleum Corporation


BLACKHAWK



Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

2/15/2017 Revised



2/16/2017 Revised

Sidetrack GB 959



2/17/2017 Revised

New Well GC 521



INVICTUS

2/17/2017 Revised Bypass

GC 727 Anadarko Petroleum Corporation


BLACKHORNET

2/21/2017 Revised



2/17/2017 Revised

Sidetrack SM 192 Arena Offshore, LP Exploratory A003 402 ROWAN GORILLA IV

2/23/2017 Revised

New Well MC 822



2/21/2017 Revised

New Well GC 521



INVICTUS


GC 389 LLOG Exploration Offshore, L.L.C.


LOUISIANA

2/23/2017 Revised


2/18/2017 GB 216 Hess Corporation 006 1372 NOBLE PAUL ROMANO




BLACKHORNET

2/22/2017 Revised

New Well GC 521



INVICTUS

3/2/2017 Bypass GB 216 Hess Corporation Exploratory 006 1372 NOBLE PAUL ROMANO

2/24/2017 Revised

Sidetrack WR 52



BLACKHAWK

2/22/2017 Revised



Exploratory 001 6134 SEADRILL WEST

NEPTUNE

5/1/2017 New Well VR 191 ANKOR Energy LLC Development C009 97 ENSCO 68

2/23/2017 Revised


3/3/2017 Revised





BLACKHORNET

3/1/2017 Revised

New Well MC 822



3/1/2017 Revised

New Well MC 778



4/28/2017 New Well GC 519 Anadarko Petroleum Corporation


BLACKHAWK



Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

3/2/2017 Revised

New Well WR 758 Chevron U.S.A. Inc. Exploratory PS007 6960 PACIFIC SHARAV

2/28/2017 Revised


3/2/2017 Revised


3/3/2017 Revised


4/10/2017 MC 807 Shell Offshore Inc. A016 2945 H&P 201

4/13/2017 Sidetrack MC 807 Shell Offshore Inc. Exploratory A016 2945 H&P 201

3/1/2017 Revised


3/3/2017 Revised


3/2/2017 Revised

New Well GC 521



INVICTUS




BLACKHORNET

4/27/2017 Revised

New Well GB 427 Shell Offshore Inc. Development DC005 2719 NOBLE DON TAYLOR

4/6/2017 Revised


3/6/2017 Revised

Sidetrack GB 959




GB 216 Hess Corporation Exploratory 006 1372 NOBLE PAUL ROMANO

3/3/2017 Revised

New Well WR 677

Union Oil Company of California

Exploratory PS002 7039 T.O. DEEPWATER

CONQUEROR

3/6/2017 Bypass WR 52 Anadarko Petroleum Corporation


BLACKHAWK

4/18/2017 New Well PL 23 Talos Energy Offshore LLC Development E003 60 ENSCO 87

3/7/2017 Revised


3/7/2017 Sidetrack GC 727 Anadarko Petroleum Corporation


3/6/2017 Revised



3/7/2017 Revised




3/15/2017 Revised



3/7/2017 Revised

Sidetrack EI 238 Chevron U.S.A. Inc. Development H007 140 ENSCO 68



Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

5/5/2017 New Well GC 720 Union Oil Company of California

Exploratory 001 4625 T.O. DISCOVERER CLEAR

LEADER

3/8/2017 Sidetrack GC 420 Shell Offshore Inc. Exploratory 001 3048 T.O. DEEPWATER

PROTEUS

3/9/2017 Revised

New Well MC 127



3/10/2017 Revised


3/9/2017 Revised


3/10/2017 Revised

Sidetrack GC 727



3/10/2017 Revised

New Well GC 478

LLOG Exploration Offshore, L.L.C.


LOUISIANA

3/13/2017 Revised

New Well MC 822



3/13/2017 Revised


3/13/2017 Revised


3/14/2017 Revised

New Well ST 260



3/14/2017 Revised

New Well MC 127



3/21/2017 Revised


4/6/2017 Sidetrack WC 544 Arena Offshore, LP Development A003 182 ROWAN EXL III


SS 349 W & T Offshore, Inc. Development A016 372 H&P 107



3/16/2017 Revised


3/17/2017 Bypass MC 127 Anadarko Petroleum Corporation


3/31/2017 Bypass GC 521 BHP Billiton Petroleum (GOM) Inc.


INVICTUS


WR 52 Anadarko Petroleum Corporation


BLACKHAWK

3/17/2017 Revised


3/20/2017 Revised


3/20/2017 Revised

New Well GC 478



LOUISIANA





Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

3/29/2017 Sidetrack GB 959 Cobalt International Energy, L.P.


5/2/2017 New Well VR 282 GoMex Energy Offshore, Ltd.

Development D016 191 ENTERPRISE 264

3/23/2017 Revised


3/22/2017 Revised

New Well MC 822




3/21/2017 MC 809 Shell Offshore Inc. P007 3646 NOBLE DON TAYLOR

3/23/2017 Bypass MC 809 Shell Offshore Inc. Development P007 3646 NOBLE DON TAYLOR

3/23/2017 Revised



5/15/2017 New Well WR 677 Union Oil Company of California


CONQUEROR


3/23/2017 Revised

New Well ST 260



3/27/2017 Revised

Sidetrack GC 727






MC 127 Anadarko Petroleum Corporation



MC 809 Shell Offshore Inc. Development P007 3646 NOBLE DON TAYLOR

5/18/2017 New Well VR 282 GoMex Energy Offshore, Ltd.


3/27/2017 Revised




3/26/2017 SM 192 Arena Offshore, LP A003 402 ROWAN GORILLA IV

3/29/2017 Revised

Sidetrack GC 727



3/27/2017 Revised

New Well MC 300



NEPTUNE


3/28/2017 Bypass SM 192 Arena Offshore, LP Development A003 402 ROWAN GORILLA IV

3/29/2017 Bypass WR 758 Chevron U.S.A. Inc. Exploratory PS007 6955 PACIFIC SHARAV

3/29/2017 Revised





Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

3/31/2017 Revised

New Well ST 260





4/12/2017 New Well EW 834 Walter Oil & Gas Corporation

Development A003 1186 H&P 203

5/15/2017 Bypass SS 349 W & T Offshore, Inc. Development A008 372 H&P 107

4/5/2017 Revised

New Well MC 822



4/24/2017 Sidetrack SS 198 Renaissance Offshore, LLC Development I009 100 ENTERPRISE 205

3/30/2017 Revised

New Well MC 300



NEPTUNE

4/5/2017 Revised


3/31/2017 Revised









GC 521 BHP Billiton Petroleum (GOM) Inc.


INVICTUS


SM 192 Arena Offshore, LP Development A003 402 ROWAN GORILLA IV


4/28/2017 Revised



4/14/2017 Revised

New Well MC 822



4/7/2017 Revised

New Well GC 478



LOUISIANA

4/10/2017 Revised






4/10/2017 Revised



MC 809 Shell Offshore Inc. Development P007 3646 NOBLE DON TAYLOR

4/11/2017 Revised



4/12/2017 Revised

New Well ST 260





Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name




4/21/2017 New Well GC 520 BHP Billiton Petroleum (GOM) Inc.


INVICTUS

4/14/2017 Revised

New Well GC 627



BLACKHORNET


SM 192 Arena Offshore, LP Development A003 402 ROWAN GORILLA IV

5/19/2017 New Well GC 389 LLOG Exploration Offshore, L.L.C.


NEPTUNE

4/13/2017 Revised

New Well GC 478



LOUISIANA

5/5/2017 Revised

New Well GC 743


Exploratory DC144 6829 SEADRILL WEST AURIGA

4/13/2017 Revised

New Well GC 512 Hess Corporation Development SB001 3580

DIAMOND OCEAN BLACKLION

5/8/2017 New Well KC 875 Anadarko Petroleum Corporation




4/15/2017 Revised


4/17/2017 Revised



4/17/2017 Revised

New Well GC 627



BLACKHORNET

4/17/2017 Revised


4/18/2017 Revised






LOUISIANA

5/25/2017 New Well MC 117 Deep Gulf Energy III, LLC Exploratory 001 2666 T.O. DEEPWATER

ASGARD

4/20/2017 Bypass AC 772 Shell Offshore Inc. Exploratory 001 8796 NOBLE GLOBETROTTER

4/19/2017 Revised

New Well EW 834



4/26/2017 Revised

New Well ST 260



4/20/2017 Revised


4/21/2017 Revised

New Well MC 300



NEPTUNE

4/20/2017 Revised




Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name


4/21/2017 Revised

New Well EW 834



4/25/2017 Revised

New Well MC 822



4/21/2017 Revised

New Well PL 23 Talos Energy Offshore LLC Development E003 60 ENSCO 87

4/22/2017 WR 758 Chevron U.S.A. Inc. PS007 6955 PACIFIC SHARAV


4/24/2017 Revised



5/26/2017 Revised



4/26/2017 Revised

New Well MC 300



NEPTUNE

4/27/2017 Revised

New Well GC 627



BLACKHORNET

5/4/2017 Bypass GB 959 Cobalt International Energy, L.P.


4/27/2017 Revised

New Well MC 74



LOUISIANA

5/2/2017 Revised

New Well PL 23 Talos Energy Offshore LLC Development E003 60 ENSCO 87

5/1/2017 Revised


5/4/2017 Revised



5/8/2017 Revised

New Well MC 822



5/2/2017 Revised

New Well GC 627



BLACKHORNET

5/2/2017 Revised

New Well GC 520



INVICTUS

5/3/2017 Revised


5/4/2017 Bypass GC 512 Hess Corporation Development SB001 3580 DIAMOND OCEAN

BLACKLION

5/3/2017 Revised

New Well MC 74



LOUISIANA

5/3/2017 Revised

Sidetrack ST 204 EnVen Energy Ventures, LLC Development B001 153 ENSCO 68

5/3/2017 Revised

New Well ST 260



5/5/2017 Revised

New Well MC 74



LOUISIANA



Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

5/5/2017 Revised

New Well GC 627



BLACKHORNET

5/23/2017 Sidetrack EI 182 Arena Offshore, LP Development A003 88 ROWAN GORILLA IV



5/11/2017 Revised


5/30/2017 Revised

New Well ST 260



5/9/2017 Revised



5/9/2017 Revised


5/10/2017 Revised

New Well GC 519



BLACKHAWK

5/9/2017 Revised

New Well MC 822



5/9/2017 Revised

New Well MC 74



LOUISIANA


AC 772 Shell Offshore Inc. Exploratory 001 8796 NOBLE GLOBETROTTER

5/11/2017 Revised

New Well MC 74



LOUISIANA


WR 758 Chevron U.S.A. Inc. Exploratory PS007 6955 PACIFIC SHARAV

5/11/2017 Revised

New Well KC 875



5/11/2017 Revised

New Well GC 519



BLACKHAWK

5/15/2017 Revised


5/11/2017 Revised

New Well MC 822



5/15/2017 Revised


5/16/2017 Revised



GC 512 Hess Corporation Development SB001 3580 DIAMOND OCEAN

BLACKLION

5/12/2017 Revised

New Well EW 834



5/15/2017 Revised





5/15/2017 Revised





Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name

5/15/2017 Revised

New Well GC 782


Development MD016 4428 MAD DOG SPAR RIG

5/18/2017 Revised

New Well GC 720



LEADER

5/16/2017 Revised

New Well MC 74



LOUISIANA

5/17/2017 Revised


5/16/2017 Revised

New Well GC 743


Exploratory DC144 6829 SEADRILL WEST AURIGA

5/12/2017 GB 216 Hess Corporation 006 1372 NOBLE PAUL ROMANO

5/19/2017 Revised




GB 959 Cobalt International Energy, L.P.


5/18/2017 Bypass GB 216 Hess Corporation Exploratory 006 1372 NOBLE PAUL ROMANO

5/17/2017 Revised

New Well MC 822



5/22/2017 Revised

New Well WR 677



CONQUEROR

5/26/2017 Revised

New Well VR 282

GoMex Energy Offshore, Ltd.


5/23/2017 Revised

New Well GC 519



BLACKHAWK

5/18/2017 Revised

New Well KC 875



5/19/2017 Revised

Sidetrack SS 198 Renaissance Offshore, LLC Development I009 100 ENTERPRISE 205

5/19/2017 Revised

New Well GC 520



INVICTUS



5/22/2017 Revised

New Well GC 720



LEADER

5/25/2017 Revised


5/31/2017 Revised


5/23/2017 Revised

New Well GC 389



NEPTUNE

5/23/2017 Revised

New Well MC 74



LOUISIANA

5/23/2017 Revised







Approved Date

Permit Type

Surface Area

Block Number


Name Water Depth

Rig Name


GC 512 Hess Corporation Development SB001 3580 DIAMOND OCEAN

BLACKLION



5/25/2017 Revised

New Well MC 822



5/30/2017 Revised

New Well KC 875



5/30/2017 Revised

New Well EW 834



5/30/2017 Revised

New Well GC 720



LEADER

5/30/2017 Revised



5/30/2017 Revised

New Well GC 519



BLACKHAWK



5/31/2017 Revised

New Well WR 677



CONQUEROR

5/30/2017 Revised

New Well MC 74



LOUISIANA


Shallow and Deepwater Exploration and Development Plans

Data last updated on 5/31/2017.

Status of Exploration

Plans and DOCDs

for New Wells Only

Received prior

to June 8, 2010

Received since

June 8, 2010

Modification

Requested1 Withdrawn2 Pending3

Deemed

Submitted4

Approved since

June 8, 20105

Water Depth Less than or equal to 500 feet

Initial Exploration Plans 3 120 4 11 2 1 105

Revised Exploration Plans 0 43 0 6 0 1 36

Supplemental Exploration

Plans

3 26 0 1 0 0 28

Initial Development

Operations Coordination

Document (DOCDs)

8 74 1 11 0 5 65

Revised DOCDs 0 423 2 26 5 16 374

Supplemental DOCDs 10 146 3 8 8 2 135

Water Depth Greater than 500 feet

Status of Exploration

Plans and DOCDs

for New Wells Only

Received prior

to Oct 12, 2010

Received since

Oct 12, 2010

Modification

Requested1 Withdrawn2 Pending6

Deemed

Submitted4

Approved since

Oct 12, 20107

Initial Exploration Plans 8 197 0 7 3 2 193

Revised Exploration Plans 5 339 1 32 1 3 306

Supplemental Exploration

Plans 5 138 0 10 2 2 129

Initial Development

Operations Coordination

Document (DOCDs)

5 53 0 2 1 3 52

Revised DOCDs 3 155 0 20 2 0 136

Supplemental DOCDs 3 97 0 4 5 1 90

1. A modification may be requested if further information or clarification is needed for submitted exploration plans and DOCDs. These exploration plans and DOCDs are not counted as pending.

2. Applications may be withdrawn by an operator at any time in the application process. 3. Pending exploration plan and DOCD figures in this table include applications submitted before and after June 8, 2010. They do not

include applications where there has been a modification requested. 4. Consistent with federal regulations, a plan is deemed "submitted" once all supporting materials and documentation has been

provided. Once a plan is deemed submitted, BOEMRE has 30 calendar days to analyze and evaluate Exploration Plans and 120 calendar days to analyze and evaluate DOCD.

5. Approved exploration plan and DOCD figures in this table include exploration plans and DOCDs submitted before and after June 8, 2010.

6. Pending exploration plan and DOCD figures in this table include applications submitted before and after October 12, 2010. They do not include applications where there has been a modification requested.

7. Approved exploration plan and DOCD figures in this table include exploration plans and DOCDs submitted before and after October 12, 2010.

https://www.boem.gov/Oil-and-Gas-Energy-Program/Plans/Exploration-and-Development-Plans-Definitions.aspx



















Approved Exploration Plans from 02/01/2017 – 05/31/2017

Surface Area

Surface Block

Lease Number

Operator Name Water Depth

Received Date

Plan Final Action Date

GC 436 G32506 BHP Billiton Petroleum (Deepwater) Inc. 4119 2/1/2017 3/8/2017














GB 959 G30876 Cobalt International Energy, L.P. 4566 2/1/2017 3/15/2017

GC 478 G35662 LLOG Exploration Offshore, L.L.C. 3790 3/7/2017 4/6/2017

MC 300 G22868 LLOG Exploration Offshore, L.L.C. 6162 3/10/2017 4/13/2017

WR 375 G35735 Shell Offshore Inc. 6551 3/17/2017 5/9/2017

GB 959 G30876 Cobalt International Energy, L.P. 4566 3/20/2017 4/26/2017

MC 117 G35314 Deep Gulf Energy III, LLC 2666 3/31/2017 5/10/2017


MC 117 G35314 Deep Gulf Energy III, LLC 2666 2/3/2017 3/29/2017

MC 215 G24060 Deep Gulf Energy II, LLC 6024 2/9/2017 5/17/2017

MC 215 G24060 Deep Gulf Energy II, LLC 6022 2/9/2017 5/17/2017

WR 51 G31938 Anadarko Petroleum Corporation 5843 3/14/2017 5/12/2017




Approved Exploration Plans from 02/01/2017 – 05/31/2017

Surface Area

Surface Block

Lease Number


Received Date






GC 955 The University of Texas at Austin 6670 3/23/2017 4/28/2017





Approved Development Operations Coordination Documents from 02/01/2017 –05/31/2017

Surface Area

Surface Block

Lease Number


Received Date


WD 73 G01083 Energy XXI GOM, LLC 172 2/9/2017 5/5/2017

WD 73 G01083 Energy XXI GOM, LLC 172 2/9/2017 5/5/2017

EW 873 G12136 EnVen Energy Ventures, LLC 775 2/16/2017 5/24/2017

EW 873 G12136 EnVen Energy Ventures, LLC 775 2/16/2017 5/24/2017

SS 300 G07760 W & T Offshore, Inc. 251 2/16/2017 5/23/2017

SS 300 G07760 W & T Offshore, Inc. 251 2/16/2017 5/23/2017

SS 198 G12355 Renaissance Offshore, LLC 100 3/10/2017 3/29/2017

SS 198 G12355 Renaissance Offshore, LLC 100 3/10/2017 3/29/2017

GI 115 LLOG Exploration Offshore, L.L.C. 366 3/22/2017 5/30/2017

WC 544 G14342 Arena Offshore, LP 182 2/3/2017 5/2/2017




MC 127 G19925 Anadarko Petroleum Corporation 5465 2/6/2017 5/12/2017



EW 834 G27982 Walter Oil & Gas Corporation 1183 2/7/2017 4/10/2017

EW 834 G27982 Walter Oil & Gas Corporation 1183 2/7/2017 4/10/2017

GC 627 G25174 Anadarko Petroleum Corporation 4405 2/10/2017 5/30/2017

GC 627 G25174 Anadarko Petroleum Corporation 4412 2/10/2017 5/30/2017


OOSA DEEPWATER RIG REPORT

AS OF 05/31/2017

CONTRACTOR RIG TYPE CURRENT

OPERATOR LOCATION WD PROSPECT ACTIVITY

BLAKE 1007 PLATFORM

HOUMA

READY STACKED

DIAMOND OCEAN BLACK

HAWK DRILL SHIP ANADARKO

GC 519 #1

4122 WARRIOR WORKOVER

DIAMOND OCEAN BLACK

HORNET DRILL SHIP ANADARKO

GC 627 #3

4410 CONSTELLATION DRILLING

DIAMOND OCEAN BLACK

LION DRILL SHIP HESS

GC 512 #SB-1

3580 STAMPEDE DRILLING

DIAMOND OCEAN BLACK

RHINO DRILL SHIP HESS

GC 512 #SA-2

3618 STAMPEDE DRILLING

DIAMOND OCEAN ONYX SEMI

WC 166

COLD STACKED

ENSCO MAD DOG SPAR PLATFORM BP GC 782 #MD-16

4428 MAD DOG DRILLING

ENSCO PDQ PLATFORM BP MC 822 6037 THUNDER HORSE DRILLING

ENSCO 8500 SEMI

INGLESIDE, TX SHIPYARD

COLD STACKED

ENSCO 8501 SEMI

GALVESTON, TX SHIPYARD

COLD STACKED

ENSCO 8502 SEMI

GALVESTON, TX SHIPYARD

COLD STACKED

ENSCO 8505 SEMI

READY STACKED

ENSCO 8506 SEMI

GI 91

READY STACKED

ENSCO DS-3 DRILL SHIP

GI 63

STACKED


GI 69

READY STACKED


GI 63

READY STACKED

H&P 201 PLATFORM SHELL MC 807

#A-16ST3 2945 MARS DRILLING

H&P 202 PLATFORM SHELL GC 158 2985 BRUTUS

H&P 204 PLATFORM SHELL MC 809 3798 URSA WAITING ON

LOCATION

H&P 205 PLATFORM SHELL AC 857 #GA-5

7821 GREAT WHITE DRILLING

H&P 406 PLATFORM SHELL GB 427 2862 AUGER WAITING ON

LOCATION

H&P OLYMPUS N88 PLATFORM SHELL MC 807 MB-22

3036 OLYMPUS WORKOVER

H&P 100 PLATFORM STONE

WORKOVER

H&P 203 PLATFORM WALTER EW 790

#A-3 1183 COELACANTH DRILLING


OOSA DEEPWATER RIG REPORT AS OF 05/31/2017



HELIX Q 5000 SEMI SERVICE

VESSEL BP GI 61

HELIX Q 4000 SEMI SERVICE

VESSEL

MAERSK DEEPWATER

VIKING DRILL SHIP EXXON

WR 540 #JU-105ST

7147 JULIA 5 DRILLING

MAERSK DEVELOPER SEMI

GI 44

STACKED

MAERSK VALIANT DRILL SHIP

GI 44

READY STACKED

NABORS MOD 200 PLATFORM

NEW IBERIA

READY STACKED

NABORS MOD 202 PLATFORM

NEW IBERIA

READY STACKED

NABORS 85 PLATFORM CHEVRON GC 205 2590

WAITING ON LOCATION

NABORS 87 PLATFORM CHEVRON VK 786

#A-7ST2 1754 PETRONIUS WORKOVER

NABORS HOLSTEIN SPAR PLATFORM

GC 644

WARM STACKED

NABORS NABORS 140 PLATFORM

STACKED

NABORS SUPER

SUNDOWNER XIV PLATFORM

READY STACKED

NOBLE PAUL ROMANO SEMI HESS GB 216

#6 1380 PENN STATE DEEP DRILLING

NOBLE DON TAYLOR DRILL SHIP SHELL GB 427

DC-5 2719 CARDAMOM DRILLING

NOBLE GLOBETROTTER I DRILL SHIP SHELL AC 772

#1 8807 WHALE DRILLING

NOBLE AMOS RUNNER SEMI

WC 37

COLD STACKED

NOBLE BULLY 1 DRILL SHIP

GI 61

STACKED

NOBLE DANNY ADKINS SEMI

MUSTANG ISLAND

WARM STACKED

NOBLE JIM DAY SEMI

MUSTANG ISLAND 807

READY STACKED

NOBLE SAM CROFT DRILL SHIP

PORT ISABEL, TX

STACKED

NOBLE TOM MADDEN DRILL SHIP

PORT ISABEL, TX

STACKED

PACIFIC SHARAV DRILL SHIP CHEVRON WR 758

#PS-7 6955 JACK DRILLING

PACIFIC SANTA ANA DRILL SHIP

GI 50

STACKED

ROWAN RESOLUTE DRILL SHIP ANADARKO KC 875

#4 6809 LUCIUS DRILLING

ROWAN ROWAN

RELIANCE DRILL SHIP COBALT

GB 959 #4ST3

4566 N PLATTE DRILLING

ROWAN ROWAN

RENAISSANCE DRILL SHIP

WARM STACKED


OOSA DEEPWATER RIG REPORT AS OF 05/31/2017



SEADRILL WEST AURIGA DRILL SHIP BP GC 743

#DC-144 6829 ATLANTIS WORKOVER

SEADRILL WEST

CAPRICORN SEMI BP GI 71

WAITING ON

LOCATION

SEADRILL WEST VELA DRILL SHIP BP MC 822

#12 6268 THUNDER HORSE WORKOVER

SEADRILL SEVAN

LOUISIANA SEMI LLOG

MC 75 #1

2647 PECAN DRILLING

SEADRILL WEST NEPTUNE DRILL SHIP LLOG GC 390

#2 3604 KHALEESI 2 WORKOVER

SEADRILL WEST SIRIUS SEMI

PORT ARANSAS

COLD STACKED

STENA DRILLING STENA FORTH DRILL SHIP HESS GI 70

WAITING ON LOCATION

TRANSOCEAN DW INVICTUS DRILL SHIP BHP GC 520

#2 4057 WILDLING 2 DRILLING

TRANSOCEAN DEEPWATER CONQUEROR

DRILL SHIP CHEVRON WR 678

#PS-5 7035 ST. MALO DRILLING

TRANSOCEAN DISCOVERER

CLEAR LEADER DRILL SHIP CHEVRON

GC 720 #1

4625 GATOR LAKE DRILLING

TRANSOCEAN DISCOVERER INSPIRATION

DRILL SHIP CHEVRON GC 640 #PC-1

4239 TAHITI DRILLING

TRANSOCEAN DEEPWATER

PROTEUS DRILL SHIP SHELL

MC 392 #AE-1

7259 APPOMATTOX DRILLING


THALASSA DRILL SHIP SHELL

WR 508 #13

9582 STONES WORKOVER


ASGARD DRILL SHIP

GI 63

READY STACKED

TRANSOCEAN DEVELOPMENT

DRILLER III SEMI

GI 92

MODIFICATION

TRANSOCEAN DISCOVERER

INDIA DRILL SHIP

READY STACKED

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