OS_20111201_Dec_2011

December 2011

Houston London Paris Stavanger Aberdeen Singapore Moscow Baku Perth Rio de Janeiro Lagos Luanda

World Trends and Technology for Offshore Oil and Gas Operations

For continuous news & analysiswww.offshore-mag.com

INSID

E:

Wes

t Africa

map

Petrobras

CEO interview

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Fall 2011 Energy

Catalog

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One trip down.

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© Copyright 2011 Aker Solutions. All rights reserved. www.akersolutions.com/subsea

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THE WORLD’S NEWSSTAND®

Previous Page | Contents | Zoom in | Zoom out | Front Cover | Search Issue | Next Page

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International Edition

Volume 71, Number 12

December 2011

C O N T E N T S

Offshore (ISSN 0030-0608) is published 12 times a year, monthly by PennWell, 1421 S. Sheridan Road, Tulsa, OK 74112. Periodicals class postage paid at Tulsa, OK, and additional offices. Copyright 2011 by PennWell. (Registered in U.S. Patent Trademark Office.) All rights reserved. Permission, however, is granted for libraries and others registered with the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, Phone (508) 750-8400, Fax (508) 750-4744 to photocopy articles for a base fee of $1 per copy of the article plus 35¢ per page. Payment should be sent directly to the CCC. Requests for bulk orders should be addressed to the Editor. Subscription prices: US $101.00 per year, Canada/Mexico $ 132.00 per year, All other countries $167.00 per year (Airmail delivery: $234.00). Worldwide digital subscriptions: $101 per year. Single copy sales: US $10.00 per issue, Canada/Mexico $12.00 per issue, All other coun-tries $14.00 per issue (Airmail delivery: $22.00. Single copy digital sales: $8 worldwide. Return Undeliverable Canadian Addresses to: P.O. Box 122, Niagara Falls, ON L2E 6S4. Back issues are available upon request. POSTMASTER send form 3579 to Offshore, P.O. Box 3200, Northbrook, IL 60065-3200. To receive this magazine in digital format, go to www.omeda.com/os.

Celebrating Over 50 Years of Trends, Tools, and Technology

TOP 5 PROJECTS

Nord Stream completes world’s

longest subsea pipeline .......................................................... 30

With the completion of Line 1, developers of the €7.4-billion ($10-billion) Nord Stream pipeline project have realized the ambitious goal of moving Russian gas to European markets directly through the Baltic Sea.

Pazfl or development relies

on subsea separation system handling four reservoirs ........ 32

The Pazfl or fi eld offshore Angola boasts a number of fi rsts. Foremost among them is that it is the fi rst-ever project anywhere to deploy a de-velopment plan based on gas/liquid separation at the mudline spanning several reservoirs.

Karan marks fi rst-ever non-associated

gas project offshore Saudi Arabia .......................................... 34

Startup of Saudi Aramco’s $8-billion Karan gas fi eld project offshore Saudi Arabia is signifi cant because it marks the fi rst-ever non-associat-ed gas development project in the country.

Peregrino producing heavy oil

for Statoil offshore Brazil ........................................................ 36

The achievement of fi rst oil from the Peregrino heavy oil fi eld in Brazil in April marked a major milestone for Statoil, the operator. It is the fi rst fi eld to be brought onstream by the company in Brazil and its largest operated fi eld outside Norway.

Who Dat initiates production

in GoM in post-Macondo era ................................................... 38

LLOG Exploration Co. L.L.C., operator of the deepwater Who Dat oil and gas fi eld in the Gulf of Mexico, expects production before year-end, making it the fi rst fl oating production unit (FPU) in the Gulf of Mexico in the post-Macondo era.

OFFSHORE WEST AFRICA

Detailed study leads Repsol to offshore West Africa ............. 42

Dramatic changes in the global economy, and specifi cally the oil and gas industry, have led to a greater interest in development of new upstream resources. As a result of many of these sweeping changes, Repsol chose to pursue a greater presence in the offshore West Africa region.

Offshore West Africa returns to Nigeria .................................. 46

Offshore West Africa, the region’s premier technical forum focused ex-clusively on West Africa’s offshore oil and gas industry, will be held Jan. 24-26, 2012, at the International Conference Centre in Abuja, Nigeria.

PETROBRAS INTERVIEW

Innovation and investment propel

Petrobras toward deeper waters ........................................... 50

In this exclusive interview with Offshore, President/CEO José Sergio Gabrielli de Azevedo offers insight into Petrobras’ plans to develop Brazil’s immense offshore reserves, and make the country into one of the world’s top oil producers in the coming decade.

GEOLOGY & GEOPHYSICS

Data management in a multi-platform age ............................ 54

Energy companies generate digital information at an unprecedented pace at all stages of exploration and production. Different stages of that life cycle benefi t from varying degrees of structured data management, but there is no single solution that encompasses all the data from all sources and for all disciplines.

Ocean bottom seismic a key technology

offshore West Africa ................................................................ 57

Seabed seismic data acquisition can be applied to many seismic and geological challenges, and may improve reservoir characterization and management. The technology has in recent years become strategic for many oil companies in their de-risking of wells and recovery factor improvement.

ENGINEERING, CONSTRUCTION,

& INSTALLATION

Structured offshore fi eld development

concept selection adds real value .......................................... 58

Any company that undertakes an offshore fi eld development must proceed through a process to determine the best alternatives available to develop their fi eld. Companies who do not follow a rigorous concept identifi cation/selection process fall into traps that leave considerable value on the table.

34

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International Edition

Volume 71, Number 12

December 2011

D E P A R T M E N T S

PRODUCTION OPERATIONS

Remedial design restores cathodic protection to corrosion-damaged hull ............ 60

Vessels are a crucial part of the offshore oil and gas industry and provide a means for delivering vital services such as IRM (inspection, repair and maintenance). Operating across the world in waters of varying salinity and temperature means vessels are highly susceptible to critical corro-sion damage.

SUBSEA

New sensor system generates multi-phase measurements downhole ................... 84

From pressure and temperature information to sand erosion and corrosion monitoring, opera-tors today know more about the inner depths of their oil and gas reservoirs than ever.

FLOWLINES AND PIPELINES

Pipeline management system enhances inspection results .................................... 86

Offshore operators often fail to fully benefi t from their pipeline inspection programs. In so doing, they are effectively leaving money on the table, because an effective pipeline integrity manage-ment system (PIMS) captures all the benefi ts of an inspection and enhances the value of an asset throughout its lifecycle.

COVER: Offshore announces

the Top 5 projects for 2011. The proj-

ects are selected on the basis on

best use of innovation in produc-

tion method, application of technol-

ogy, and resolution of challenges,

along with safety, environmental

protection, and project completion

time. The operator for each field will

receive an Offshore Five Star Award

trophy, with the project’s name

and operator etched on the base.

This cover was designed by Adam

Questell (questell@akyudesign.

com).

Online .................................................... 6

Comment ............................................... 8

Data ..................................................... 10

Global E&P .......................................... 12

Offshore Europe .................................. 16

Gulf of Mexico ..................................... 18

Subsea Systems ................................. 20

Vessels, Rigs, & Surface Systems ...... 22

Drilling & Production .......................... 24

Geosciences ........................................ 26

Offshore Automation Solutions ......... 28

Business Briefs ................................... 96

Advertisers’ Index ............................... 99

Beyond the Horizon .......................... 100

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PennWell1455 West Loop South, Suite 400, Houston, TX 77027 U.S.A.

Tel: (01) 713 621-9720 • Fax: (01) 713 963-6296

SALES

WORLDWIDE SALES MANAGERHOUSTON AREA SALES

David Davis [email protected] Tel: (713) 963-6206Mitch Duffy [email protected]

CUSTOM PUBLISHINGRoy Markum [email protected]

Tel: (713) 963-6220

PRODUCTION MANAGERKimberlee Smith [email protected]: (918) 832-9252 • Fax: (918) 831-9415

AUDIENCE DEVELOPMENT MANAGERRon Kalusha [email protected]

Tel: (918) 832-9208 • Fax: (918) 831-9482

SUBSCRIBER SERVICESContact subscriber services for address changes

Tel: (847) 559-7501 • Fax: (847) 291-4816Email: [email protected]

REPRINT SALESRhonda Brown [email protected]

Tel: (219) 878-6094 • Fax: (219) 561-2023

OFFSHORE EVENTSDavid Paganie (Houston) [email protected]

Eldon Ball (Houston) [email protected] Killough (Houston) [email protected] Vrettos (London) [email protected]

Jenny Phillips (London) [email protected]

CORPORATE HEADQUARTERSPennWell; 1421 S. Sheridan Rd., Tulsa, OK 74112

MemberAll Rights reserved

Offshore ISSN-0030-0608Printed in the U.S.A. GST No. 126813153

CHAIRMAN:Frank T. Lauinger

PRESIDENT/CHIEF EXECUTIVE OFFICER:Robert F. Biolchini

CHIEF FINANCIAL OFFICER:Mark C. Wilmoth

Publications Mail Agreement Number 40052420

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CONTRIBUTING EDITORSF. Jay Schempf (Houston)

Nick Terdre (Norway)Peter Howard Wertheim (Brazil)

Gurdip Singh (Singapore)

SENIOR EDITOR,TECHNOLOGY & ECONOMICS

Eldon R. [email protected]

EDITOR-EUROPEJeremy Beckman

[email protected]

PRESENTATION EDITORJosh Troutman

[email protected]

TECHNOLOGY EDITOR,SUBSEA & SEISMIC

Gene [email protected]

ASSISTANT EDITORJessica Tippee

[email protected]

POSTER EDITORE. Kurt Albaugh, P.E.

[email protected]

VICE PRESIDENT and GROUP PUBLISHERMark Peters

[email protected]

MANAGING EDITORBruce A. Beaubouef

[email protected]

CHIEF EDITOR/CONFERENCE EDITORIAL DIRECTORDavid Paganie

[email protected]

6 Offshore December 2011 • www.offshore-mag.com

Latest newsThe latest news is posted daily for the offshore oil and gas industry coveringg

ttechnology, companies, personnel moves, and products. www.offshore-mag.com

New videos

➤ National Ocean Industries AssociationAccording to NOIA, the Gulf of Mexico could spur 190,000 new jobs by 2013.

➤ Nord StreamSee videos that depict that the latest stages of construction and project activityy

oon the Nord Stream project, which calls for the installation of two 760-mi, 48-in.ppipelines that will move gas from Russia to Germany through the Baltic Sea.

➤ Ghana’s JubileeThe fi rst oil production milestone was achieved only 41 months after the

JJubilee fi eld was discovered, an enviable record for any offshore development,pparticularly in a frontier deepwater area such as that found off Ghana. Jubileeiis the country’s fi rst signifi cant offshore fi nd.

➤ Wright’s Well Control ServicesHydrate Remediation Skid

A new hydrate remediation system from Wright’s Well Control Servicesrrecently cleared a hydrate-blocked pipeline in the Gulf of Mexico in 7,200 ft ofwwater.

➤ Shell Floating FacilityThe Royal Dutch Shell board of directors has approved the fi nal investment

ffor the Prelude fl oating LNG project offshore Australia. This will be the fi rstssuch installation.

http://www.offshore-mag.com/index/video.html

New On Demand Webcasts

➤ Offshore’s Top 5 Projects of 2011Dec. 16, 2011: The editors of Offshore have made their choices for winners

oof the Five Star Award – the top fi ve offshore fi eld development projects for22011 – and the winners will be announced in a webcast to be held on Dec. 16,aand will be covered in the December issue. The projects are selected on thebbasis on best use of innovation in production method, application of technol-oogy, and resolution of challenges, along with safety, environmental protection,aand project completion time.

➤ Compliance Management - Best Practices Preven-tion and Solutions for the Upstream Market

This Webinar will address the issues raised in this outline and provide insightiinto industry: Thought leadership, Macro societal drivers, Economic value thatccan be derived, Trends, Directions, and Best Practices, and Lessons learned.

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

webcast-display/4702579761/webcasts/pennenergy/

live-events/compliance-management.html

New maps, posters, & surveys•• 2011 Worldwide Offshore Pipeline Installation & Burial Contractors

& Vessels Survey•• 2011 Environmental Drilling & Completion Fluids Survey•• 2011 MWD/LWD Services Survey•• 2011 World Survey of Stimulation Vessels•• 2011 Rotary Steerables Survey•• 2011 Marine Seismic Vessel Survey

DoDoDownwnwnlololoadadad::: wwwwwwww.w.ofofoffsfsfshohohorerere m-mmagagagg c.c.comomom/i/i/indndndexexex/m/m/mapapappss-s popopop stststerererss.s.hththtmlmlml

Available at Offshore-mag.com

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seeks subse

a innovati

on

Drilling and Completion

Production

Subsea

Construction and Installation

Transportation and Logistics

Geology and Geophysics

In-depth coverage of

offshore oil and gas

industry for more

than 56 years

Our Tradition

Runs

Deep

www.offshore-mag.com

Our depth is a tradition you can count on.


To respond to articles in Offshore, or to offer articles for publication,

contact the editor by email ([email protected]).

C O M M E N T David Paganie • Houston

Award-winning projectsSelecting the winners of this year’s Five Star Award – the Top 5 offshore fi eld develop-

ment projects – was no easy task. The geographic distribution of candidates stretched from the Americas to Europe, Africa, Asia, and Australia. Technological innovation was widespread as well. After careful consideration, a consensus has been reached.

In no particular order, the Top 5 offshore fi eld development projects of 2011 are:Nord Stream: With the completion of Line 1, developers of the €7.4-billion ($10-bil-

lion) Nord Stream project have realized the ambitious goal of moving Russian gas to Eu-ropean markets directly through the Baltic Sea. First announced in 2001, the project calls for the construction of two parallel 759-mi, 48-in. pipelines that will move natural gas from Vyborg, Russia, to Lubmin near Greifswald, Germany. The Nord Stream consortium in-cludes Gazprom, Wintershall, E.ON Ruhrgas, Gasunie, and GDF SUEZ.

Bruce Beaubouef, managing editor, gives the full details in his report beginning on page 30.

Pazfl or: The Pazfl or fi eld offshore Angola boasts a number of fi rsts. Foremost among them is that it is the fi rst-ever project to deploy a development plan based on gas/liquid sepa-ration at the mudline spanning several reservoirs. This technological innovation is what will make it possible to produce the heavy, viscous oil contained in three of the four reservoirs in this gigantic development in the Angolan deep offshore. Pazfl or, operated by French oil company Total, lies 150 km (93 mi) off Luanda in water depths ranging from 600 to 1,200 m (1,968 – 3,937 ft) and has estimated proved and probable reserves of 590 MMbbl.

The project is described in detail by Eldon Ball, senior editor, technology & eco-

nomics, beginning on page 32.Karan: Saudi Aramco’s $8-billion Karan gas fi eld project offshore Saudi Arabia is the

fi rst-ever non-associated gas development in the country. Currently, fi ve wells are fl ow-ing 120 MMcf/d on the way to a design capacity of 1.8 bcf/d by 2013. The fi eld produces gas via a 110-km (68-mi) long subsea pipeline to the onshore Khursaniyah process facil-ity. Plans call for approximately 20 total wells spread over four production platforms that tie in to a main platform with associated electrical power, communications, and remote monitoring and controls.

The project report by Gene Kliewer, technology editor, subsea & seismic, begins on page 34.

Peregrino: The achievement of fi rst oil from the Statoil-operated Peregrino heavy oil fi eld in Brazil in April marked a major milestone for the operator. It is the fi rst fi eld to be brought onstream by the company in Brazil and its largest operated fi eld outside of Norway. And by bringing Peregrino’s 14ºAPI crude to the surface, Statoil provided convincing testimony of its heavy oil expertise.

See the full report by Nick Terdre, contributing editor, beginning on page 36.Who Dat: Discovered in December 2007, the LLOG Exploration-operated Who Dat

fi eld lies in an average water depth of 3,200 ft (975 m) in Mississippi Canyon blocks 503, 504, and 547, in the Gulf of Mexico. Three wells – two in MC 503 and one in MC 547 – have been completed, with 10 more infi ll wells to be drilled and completed in the coming months using the semisubmersible rig Noble Amos Runner. Notable achievements for the fi eld development include the fi rst use of the OPTI-EX design; the fi rst use of an FPU built “on spec;” and the fi rst use of a privately owned FPU.

Jessica Tippee, assistant editor, gives a detailed report beginning on page 38.Congratulations to all of our winners for their contribution to the successful applica-

tion of new and innovative technology. More information on the award-winning proj-ects is available in a special webcast hosted on the Offshore magazine homepage: www.offshore-mag.com.

If you would like to nominate a project for 2012, please send me a short description of it and a paragraph to support your recommendation.

The projects are selected on the basis of best use of innovation in production method, application of technology, and resolution of challenges, along with safety, environmental protection, and project execution. Only projects that are expected have fi rst production in 2012 will be considered.

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http://www.cameronacquiresletourneaudrilling.com





Worldwide offshore rig count & utilization rate

November 2009 – October 2011

950

850

750

650

550

450

350

100

90

80

70

60

50

40

No

. o

f ri

gs

Fle

et u

tilizatio

n ra

te

Nov09

Feb10

May

10

Aug10

Nov10

Feb11

May

11

Aug11

Contracted fleet utilization Total fleet Contracted Working

Sourc

e: O

DS

-Petr

odata

Inc.

DrillshipsJackupsSemisub

West Africa rig utilization

Perc

ent

100

90

80

70

60

50

40

30

20

10

0

Oct

10

Nov10

Dec10

Jan

11

Feb11

Mar 11

Apr 11

May

11

June

11

July

11

Aug11

Sept 11

Oct

11


Gulf of Mexico rig utilization

Perc

ent

100

90

80

70

60

50

40

30

20

10

0

Oct

10

Nov10

Dec10

Jan

11

Feb11

Mar 11

Apr 11

May

11

June

11

July

11

Aug11

Sept 11

Oct

11


Worldwide rig utilization

Perc

ent

90

80

70

60

50

40

30

20

10

0

Oct

10

Nov10

Dec10

Jan

11

Feb11

Mar 11

Apr 11

May

11

June

11

July

11

Aug11

Sept 11

Oct

11

Sourc

e: R

igzo

ne.

com

Sourc

e: R

igzo

ne.

com

Sourc

e: R

igzo

ne.

com

Worldwide day rates

Year/Month Minimum Average Maximum

Drillship

2010 Nov $125,000 $405,756 $667,000

2010 Dec $125,000 $410,966 $667,000

2011 Jan $155,000 $430,438 $667,000

2011 Feb $155,000 $437,013 $667,000

2011 Mar $90,000 $433,414 $667,000

2011 April $90,000 $433,174 $667,000

2011 May $90,000 $436,865 $690,000

2011 June $90,000 $444,191 $690,000

2011 July $90,000 $442,925 $690,000

2011 Aug $90,000 $442,880 $690,000

2011 Sept $90,000 $445,517 $690,000

2011 Oct $90,000 $436,855 $690,000

Jackup

2010 Nov $10,000 $110,458 $335,000

2010 Dec $30,000 $109,753 $335,000

2011 Jan $32,000 $109,199 $335,000

2011 Feb $32,000 $107,993 $335,000

2011 Mar $31,000 $106,869 $335,000

2011 April $31,000 $106,404 $335,000

2011 May $31,000 $106,454 $335,000

2011 June $31,000 $105,685 $339,000

2011 July $35,000 $106,332 $339,000

2011 Aug $35,754 $107,264 $339,000

2011 Sept $35,754 $106,527 $339,000

2011 Oct $20,000 $105,090 $339,000

Semi

2010 Nov $47,800 $362,361 $650,000

2010 Dec $47,800 $363,818 $650,000

2011 Jan $47,800 $364,351 $650,000

2011 Feb $83,000 $360,418 $665,000

2011 Mar $83,000 $355,296 $665,000

2011 April $83,000 $357,293 $665,000

2011 May $83,000 $358,150 $665,000

2011 June $83,000 $362,199 $665,000

2011 July $83,000 $357,916 $665,000

2011 Aug $85,000 $362,710 $665,000

2011 Sept $137,000 $366,671 $665,000

2011 Oct $137,000 $366,924 $665,000

Source: Rigzone.com

G L O B A L D ATA


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http://www.Rigzone.com







We put you fi rst.

And keep you ahead.

We put you fi rst.

And keep you ahead.

© 2011 FMC Technologies. All rights reserved.

Total’s Pazfl or project off Angola represents yet another fi rst

for FMC Technologies: It’s the fi rst deepwater development

based on full-fi eld gas/liquid separation at the mudline.

Three vertical separation systems make it feasible to extract

heavy, highly viscous oil economically from deep Miocene

reservoirs. With proven subsea separation technologies, we

are pushing the limits of oil recovery in deepwater basins

around the world. And that’s only the beginning.

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______________________

http://www.fmctechnologies.com





Peroá

0 Km 50

0 Miles 31

Ring fencesConcessãoBM-ES-21-1

,500

mVitória

135 km

Malombe (1-BRSA-983-ESS)

414

BM-ES-21

13 km

Cagoá

Espírito Santo basin

G L O B A L E & P Jeremy Beckman • London


North AmericaHusky Energy has started production from a two-well pilot

scheme on the West White Rose fi eld offshore Newfoundland. The aim is to derive further data ahead of a full development of the fi eld.

In the same region, Husky has been drilling the Fiddlehead explo-ration prospect, south of the Terra Nova fi eld.

•••Pemex has contracted Cal Dive International to install an 8-in.

(20.3-cm) subsea pipeline next April in the Gulf of Mexico. The facil-ity, in 47 m (154 ft) water depth, will serve the Abkatun fi eld.

South AmericaPetrobras has asked Brazil’s regulating agency ANP to postpone

closure of an Evaluation Plan for the Carioca area in offshore block BM-S-9. This follows discovery of another oil accumulation, Abaré, 35 km (21.7 mi) south of the Carioca discovery well, and a highly productive extended well test.

The new fi nd is in carbonate reservoirs at a depth of 4,830 m (15,846 ft). As for the ongoing test on the Carioca Northeast well, which is connected to the FPSO Dynamic Producer, results here sug-gest potential for production of 28,000 b/d per day, well above the initial estimates.

Petrobras had further successes elsewhere, fi nding gas in the Malombe structure in 980 m (3,215 ft) water depth in the postsalt area of the Espirito Santo basin. The location is 13 km (7.4 mi) southeast of the Peroa fi eld. Another deepwater well in the Santos basin presalt cluster confi rmed an extension of the Franco area oil reserves, 7.7 km (4.8 mi) to the northwest, known as Franco NW.

•••Another on the growing roster of presalt fi nds is the BP-operated

Itaipu in the Campos basin. A recent appraisal well 4 mi (7 km) south-east of the discovery appears to extend the accumulation by 120 m (393 ft) downdip. Partner Anadarko is preparing to spud another presalt ap-praisal well on the Wahoo fi eld in the same basin later this month.

•••Rockhopper Exploration has proven oil and gas while drilling

a multiple-target well in the Casper structure, a short distance southwest of its Sea Lion fi nd in the offshore North Falkland basin. Casper could be equipped with a gas disposal well under a potential joint development with Sea Lion.

Mediterranean SeaGas production has started from the Eni-operated Gendalina fi eld

platform, 47 km (29 mi) off northeast Italy. Final development costs will likely be 7% above original estimates, according to partner Medi-terranean Oil & Gas (MOG). The fi eld is in 42 m (138 ft) of water in the AC 35 concession, with probable reserves of 22 bcf.

MOG has secured a short-term loan of up to $4.8 million, much of which will be used for a 1,000-sq km (386-sq mi) seismic survey in Area 4, offshore Malta, which may already be under way. Large structures have been identifi ed in the permit, and the new survey should help defi ne drilling targets.

•••Gas production has restarted through the Sabratha platform, 110

km (68 mi) northwest of Libyan capital Tripoli, following the shutdown enforced by the recent confl ict. Mellitah Oil & Gas, the joint venture op-erating company between NOC and Eni, expected output to ramp up to 11-13 MMcm/d (388-450 MMcf/d) by the end of last month, with all 15 platform wells being progressively reopened. Production rates should rise further as the subsea wells come online next year. The gas is sent to shore for processing at the Mellitah complex before heading north to Italy across the Mediterranean Sea via the Greenstream pipeline.

•••Burullus Gas Co. has brought onstream the $1-billion Phase 8a of

the West Delta Deep Marine project offshore Egypt. This involves adding nine wells to the existing subsea infrastructure, 90 km (56 m) from the Nile Delta.

In the Nile Delta shallow water region, IEOC has discovered gas in the Salmon prospect, the third gas fi nd in the North El Burg con-cession since it was awarded in mid-2005. The semisub Scarabeo IV

drilled the well in 87 m (285 ft) of water, 50 km (31 mi) north of Damietta, encountering gas in two shallow Pleistocene intervals.

In the Gulf of Suez, Egyptian General Petroleum Corp. has made available various blocks under the 2011 exploration bid round. These include NorthWest Abu Zenima, East Raps Burden Offshore, and NorthEast Issran. Applications must be received by Jan. 30.

Caspian SeaLukoil has commissioned a new riser platform and a living quar-

ter platform for its Filanovsky oil fi eld development in the Russian sector. Construction of related drilling/operations and central pro-cessing platforms should start by early 2012. Oil will be exported to shore through a new 330-km (205-mi) subsea pipeline.

•••Dragon Oil is targeting 100,000 b/d of oil in 2015 from the Chele-

ken Contract Area off Turkmenistan, and to sustain that level for at least fi ve years or even exceed it. This could be achieved by a combi-nation of new platforms and new rigs to speed up development drill-ing, and enhanced oil recovery measures such as water injection on the Dzheitune (Lam) fi eld. This year 13 new wells have been drilled, which should push current output to 70,000 b/d by the end of 2011.

Middle EastSaipem has an EPIC contract from South Oil Co. for Phase 2 of the

Iraq Crude Oil Export Expansion Project. This involves expansion of the Basra Oil terminal offshore the Al Faw Peninsula. Saipem’s scope includes construction and installation of a central metering and mani-fold platform in 28 m (92 ft) water depth, and associated facilities. This will be built at the company’s yards in Dammam, Saudi Arabia, and Karimum, Indonesia, for installation in the second half of 2013.

•••ADMA-OPCO has contracted Fluor Offshore Solutions for FEED

work for new facilities on the Nasr fi eld, 30 km (18.6 mi) northeast of the Umm Shaif complex off Abu Dhabi. The Nasr full fi eld devel-opment calls for seven new wellhead towers, utilities and quarters platforms, new gas processing and oil separation facilities, an infi eld subsea pipeline, and an export pipeline to Das Island.

East AfricaEni is claiming a giant gas discovery via its fi rst well in Area 4 off Mo-

zambique. Mamba South 1, drilled in 1,585 m (5,200 ft) water depth 40 km

Malombe is one of three new deepwater finds for Petrobras offshore Brazil.

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Arrive in Lagoswith a full tank.Announcing new daily nonstop service from Houston to Lagos, Nigeria.

Service operated by Continental Airlines, Inc. MileagePlus accrual and redemption is subject to the terms and conditions of MileagePlus.Lagos to Houston service starts November 17, 2011.

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G L O B A L E & P

(25 mi) off Cabo Delgado coast, encountered 212 m (695 ft) of continuous gas pay in good-quality Oligocene sands, and a 90-m (295-ft) wide sand which could potentially hold 7.5 tcf. The well was due to be deepened to TD of 5,000 m (16,404 ft), with a second well to follow 22 km (13.5 mi) to the north on the Mamba North structure.

IndiaONGC has awarded McDermott Interna-

tional an EPIC contract for the Cluster 7 Devel-

opment offshore western India. McDermott’s scope includes construction and installation of fi ve wellhead platforms with a total weight of 20,000 metric tons (22,046 tons), all to be built at the company’s yard in Jebel Ali, UAE. Instal-lations should start from late 2012.

In the KG-DWN-2003/1 (D3) block off eastern India, the Reliance/BP/Hardy Oil & Gas consortium plan a dry gas, subsea clus-ter development for the Dhirubhai 39, 41, and 52 gas discoveries. The facilities would

provide fl exibility for tie in of further accu-mulations in the area.

West AfricaWessex Exploration has signed an assur-

ance agreement for the Imlili block PSC off-shore Western Sahara. This was awarded by the Sawahari Arab Democratic Republic, recog-nized by the UN as the democratically elected government of the territory despite the occupa-tion by Morocco. Imlili covers an area of 16,965 sq km (6,550 sq mi) in water depths of up to 150 m (492 ft), and is in between two other blocks where Wessex holds 50% interest.

•••Mauritania’s government has agreed

terms for new offshore PSCs with Tullow Oil and its partners. The previous PSC-Area A and PSC-Area B have been replaced by a single concession, C-10, covering 10,725 sq km (4,141 sq mi). Tullow is operator with 59%, although Petronas will continue to op-erate the producing Chinguetti fi eld based on the original license interests. The revi-sion should hasten development of the Ban-da gas and oil discoveries, and spur further exploration drilling.

•••Anadarko’s fi rst well in Liberian waters

found subcommercial light oil. The discovery came in the deeper secondary (late Creta-ceous) objective. Although the well has since been plugged, it did establish a working hy-drocarbon system in the Liberian basin, part-ner Tullow points out. The drillship was due to mobilize north to appraise the same partner-ship’s Mercury discovery off Sierra Leone.

•••Namibia’s Ministry of Mines and Energy

has awarded UK independent Serica Energy 85% interests in four large blocks and part-blocks in the offshore Luedritz basin. Other parters are state-owned NAMCOR and In-digenous Energy. The blocks cover a total of 17,400 sq km (6,718 sq mi) in the center of the little-explored basin, south of the Walvis ridge. Analysis of existing seismic suggests potential for four-way dipped closed struc-tures in the undrilled deepwater parts of the concessions.

Chariot Oil & Gas has won a drilling per-mit for its deepwater Tapir South prospect in northern license 1811 A&B offshore Namib-ia. This followed submission of detailed well and oil spill response plans.

•••Total has achieved a second discovery in

the OML 102 concession, 65 km (40 mi) off Nigeria’s southeastern coast. Etisong North was drilled in 80 m (262 ft) water depth, 15 m (49 ft) southeast of the Total-operated Ofon complex. It tested 40º API oil at 8,500 b/d from one of three reservoirs encountered. The previous fi nd was Etisong Main in 2008.

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G L O B A L E & P

Total is considering a new development hub.To the south off Gabon, the new platform

for Total’s Phase 3 Anguille fi eld redevelop-ment was due to sail out of Eiffel’s yard in southern France this month. It should arrive at the offshore destination in February.

Asia-Pacifi cA joint investigation team in China has

concluded that operator ConocoPhillips was responsible for the leak earlier this year from the offshore Penglai 19-3 oil fi eld. The team

cited violation of the Overall Development Plan, defects in procedures and manage-ment, and failure to take necessary measures after clear accident signs emerged. Partner CNOOC says it will assist ConocoPhillips in dealing with subsequent issues.

•••Chevron has started gas production from the

$3.1-billion Platong II project in the Gulf of Thai-land, which eventually will deliver 330 MMcf/d and 18,000 b/d of NGLs. The development is in shallow water, 120 mi (200 km) from the southern Thai coast. New facilities connected to the existing infrastructure include a central processing platform, four wellhead platforms, and living quarters for 200 personnel.

•••Petronas Carigali and Shell Malaysia will col-

laborate on enhanced oil recovery (EOR) projects offshore Sarawak and Sabah. They have signed a heads of agreement for two 30-year PSCs de-signed to extend the life and of the Baram Delta (BDO) and North Sabah fi elds, and to increase production from the fi elds by a further 90-100,000 boe/d. A technology review could lead to imple-mentation at North Sabah of the world’s fi rst fi eld-scale offshore chemical EOR process.

•••ExxonMobil has contracted Malaysia Marine

and Heavy Engineering to build two four-leg sat-

ellite platforms for the Telok gas development. Gas produced through these facilities will head through a new 25-km (15.5-mi) subsea pipeline to the existing Guntong E platform off Malaysia for processing. Start-up is scheduled for early 2013.

•••Niko Resources has awarded Diamond Off-

shore a four-year, $700-million contract for use of the semisub Ocean Monarch for a deepwater exploration program offshore Indonesia. The rig is equipped to drill to depths of 35,000 ft (10,668 m), in water depths of up to 10,000 ft (3,048 m). It will start work on Niko’s 16 Indo-nesian PSC areas in mid-2012.

•••Mobil Cepu has agreed a $300-million con-

tract under which Sembawang Shipyard will convert a tanker to a VLCC-size FSO for the Banyu Urip project. This will be deployed off-shore East Java, Indonesia. The conversion should be completed early in 2014.

AustralasiaChevron has notched two further gas dis-

coveries off Western Australia, both in per-mit area WA-205-P. Acme West-1 and Acme West-2 were drilled in 3,035 ft (925 m) of water, and encountered combined gas pay of 561 ft (171 m). Chevron expects to eventu-ally tie both into its Wheatstone LNG hub. �

Cameroon

Areashown

Nigeria

Nigeria

Benin

Niger

Bay of Benin

Gulf of Guinee

Total operatorTotal partner 0 50 km

0 31 Miles

OML 102

Etisong North is Total’s second find in the

shallow-water OML 102 concession off Nigeria.

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O F F S H O R E E U R O P E Jeremy Beckman • London


Ithaca brings in FPF1 for North Sea hubIthaca Energy has drawn up plans for a new oil and gas produc-

tion hub in the UK central North Sea. The Greater Stella Area (GSA) project will develop up to four fi elds in blocks 29/10a & b and 30/6a, all tied back to the Petrofac-owned semisubmersible production platform FPF1.

The initial focus will be on the Stella and Harrier fi elds, with the addi-tion of the Hurricane and Helios structures, depending on the outcome of appraisal drilling. Ithaca has lined up the Awilco semisub Wilhunter

for a well on Hurricane early in 2012, while Helios faces a “drill or drop” decision in 2013. Start-up is targeted for the second half of that year at an initial average rate of 30,000 boe/d, pending approval for the devel-opment plan due to be submitted to the UK government this month.

GSA has been on the drawing board for some time, but what drove this fi nal solution forward was a series of deals that included Ithaca acquiring Stella/Harrier partner Challenger Minerals North Sea from parent company Transocean, and Petrofac providing the FPF, and earning a 20% interest in the project at fi rst oil.

The fl oater, which is more than 30 years old, was known as AH-001,and previously operated for Hess on the Rob Roy/Ivanhoe fi elds, also in the central UK sector. Petrofac had been looking for a new “home” for the facility for some time. The company’s Offshore Engineering & Operations division will perform modifi cation and upgrades ahead of the new deployment, to bring capacity up to 38,000 b/d of oil and 2.4 MMcm/d (84.75 MMcf/d) of gas, and Petrofac will subsequently provide duty holder services under a life-of-fi eld contract.

Ithaca says the development will prioritize oil and condensate pro-duction over gas during the early years to maximize value. GSA oil will be piped 31 km (19-mi) to the Grane Area Export Line which feeds through to the Forties system to Cruden Bay, north of Ab-erdeen. The gas will be exported through a 59-km (36-mi) pipeline connecting to a tee on the CATS trunkline to Teesside.

Norwegian contenders off the starting blocksTwo of the Norwegian sector’s leading independents have won

approvals for their fi rst development projects. Lundin Norway’s Brynhild fi eld (formerly Nymo) is in 80 m (262 ft)

water depth in North Sea license PL 148, close to the median line with the UK. Development calls for three subsea wells tied back 38 km (23.6 mi) to Shell’s Pierce FPSO on the UK side. Aker Solutions has the EPC contract for the subsea production system, which includes the trees, template-manifold structure, and control umbilicals. Tech-nip will manufacture and install the reeled pipe-in-pipe production and plastic lined water injection fl owlines. Start-up is slated for late 2013.

Det norske oljeselskap’s project is Atla (ex-David) in southern Norwegian North Sea license 102C. The Total-operated gas fi eld

was discovered in October 2010 – this will be converted for use as a producer, with the gas exported to Total’s Hemidal complex 20 km (12 mi) to the southwest. Costs are estimated at $227 million.

Among the other major new North Sea projects going forward, Britain’s Department of Energy and Climate Change has approved Nexen Petroleum’s $3.2-billion Golden Eagle area development in the UK central sector. Facilities will include a combined production, utili-ties, and quarters platform linked to a wellhead platform – Lamprell will build both the decks in Jebel Ali, UAE. Plans call for 16 platform-based wells and four subsea wells, with an initial production rate of up to 70,000 boe/d. Start-up is scheduled for late 2014.

DONG E&P has approval from the Danish Energy Agency (DEA) for its $1.67-billion Hejre oil and gas project in the northern part of the Danish central graben. Here the focus will be a fi ve-well pro-cessing/wellhead platform with new pipelines connected to existing infrastructure, and fi rst oil during 2015.

Danes, Norwegians launch chalk initiativesTen oil companies are working with the Norwegian Petroleum Di-

rectorate (NPD) and the DEA to improve recovery from tight chalk fi elds offshore Norway and Denmark. Phase 7 of the Joint Chalk Re-search program, which started in 1982, will investigate:

• Ways to maximize effi ciency in application of water injection in chalk fi elds

• Weakening/compaction of chalk rocks during water/CO2 injection

• How to model the impact on the reservoir of CO2 injection for im-

proved recovery.Collectively, the 10 companies will provide sponsorship of up to $367

million/yr from 2012 for an initial period of three years.In a separate initiative, Maersk Oil with Danish sector partners Shell

and Chevron will provide further funds for a fi ve-year research program on chalk reservoirs in the Danish North Sea, led by Copenhagen’s Depart-ment of Geography and Geology (DGG). Here the goal is to clarify the original processes that dictated where chalk was laid down and how res-ervoir characteristics were formed, but with a focus on hard-to-detect inter-chalk variations indicative of overlooked hydrocarbon traps. Currently no geological models exist to predict these variations well, DGG claims.

Heavier vessels needed for platform removals

North Sea decommissioning could provide $75.6 billion of new business opportunities over the next three decades, according to analysts Deloitte and Douglas-Westwood. According to their latest North Sea Offshore Decommissioning Market Report, most of the activity and associated spend will occur between 2016 and 2031.

However, the projected workload will likely exceed existing heavy-lift vessel and onshore dismantling capacity, increasing the pressure for new specialized vessels and purpose-built yards. And this situation could be exacerbated by activity in the local offshore wind sector.

The report outlines two scenarios for developing offshore lift technologies. One involves using existing heavy-lift vessels per-forming decommissioning as an “offshore deconstruction” process. The other examines the impact of new super heavy lift vessels ca-pable of lifting 15,000 tons or more.

Last month, engineering consultancy PDi started work in the UK on a study concerning decommissioning of pipeline bundles. Over 60 bundles have been installed for North Sea subsea developments, incorporating fl ow lines, gas-lift, water injection, and chemical injec-tion lines into one carrier pipe, with an estimated combined length of 250 km (155 mi). However, according to funding provider ITF, no guidance is available for the removal process.

PDi offi cials said that although bundles may appear similar to trunklines – they have a large diameter and rest on the seabed – all are less than 7.5 km (4.6 mi) long. �

Total’s Atla subsea tieback to Heimdal is partner Det norske oljeselskap’s

first development project.

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PAI Miocene & Pliocene discoverySource: PetrobrasPAI Lower Tertiary discoveries

Mexico

Texas

Austin

Tiber

LuciusKeathley Canyon

Walker Ridge

Logan

St. Malo

Stones

ChinookCascade

Hadrian N

Hadrian S

HoustonNew Orleans

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Louisiana

G U L F O F M E X I C O Bruce Beaubouef • Houston


BOEM announces proposed OCS leasing program for 2012-2017

The Bureau of Ocean Energy Management (BOEM) has an-nounced its proposed outer continental shelf (OCS) oil and gas leas-ing program for 2012–2017.

The plan focuses on exploration in the Gulf of Mexico; proposes three auctions in the Arctic; and rules out development in unex-plored areas along the Atlantic coast.

In all, the Interior Department will hold 15 lease sales in six off-shore areas, including the eastern Gulf of Mexico, near an area where development is currently off limits under a federal ban.

The following sales are included in the proposed program: • Western GoM: Five annual area-wide lease sales beginning in

the fall of 2012 that make available all unleased acreage • Central GoM: Five annual areawide lease sales beginning in the

spring of 2013 that make available all unleased acreage • Eastern GoM: Two sales, in 2014 and 2016, in areas of the east-

ern Gulf that are not currently under congressional moratorium • Beaufort Sea: One sale in 2015 with time to learn from any in-

terim exploration and further analyze environmental issues, subsistence use needs, and infrastructure capabilities

• Chukchi Sea: One sale in 2016, with time to learn from any interim exploration and further analyze environmental issues, subsistence use needs, and infrastructure capabilities – so that the lease sale can be tailored to balance these issues

• Cook Inlet: One special interest sale including the entire plan-ning area, which is initially scheduled for 2013, but may be moved to later in the program depending on industry interest in the sale.

Interior Secretary Ken Salazar described the new proposal as an expansion of “safe and responsible oil and gas production from the outer continental shelf” that would “help us continue to reduce our dependence on foreign oil.” He said that the program would make available more than 75% of the oil and gas resources that the govern-ment estimates are under the outer continental shelf and deemed to be technically recoverable.

FMC sets new deepwater completion record in GoM

FMC Technologies, Inc. reports that its enhanced vertical deep-water tree (EVDT) system has set a new deepwater completion re-cord of 9,627 ft (2,934 m). The world record depth was achieved at the Shell-operated To-bago fi eld, part of the Perdido development located in the Gulf of Mexico.

The new depth record surpasses the previ-ous milestone of 9,356 ft (2,852 m) that was established in 2008 at Shell’s Silvertip fi eld, which is also a part of the Perdido develop-ment. That record was also achieved with an FMC-designed EVDT, a subsea oil and gas production tree system that earned FMC the 2008 Spotlight on New Technology Award at the energy industry’s Offshore Technology Conference in Houston.

Located on Alaminos Canyon Block 815, Shell’s Perdido development includes the Great White, Silvertip and Tobago fi elds. FMC’s overall scope of supply for the project

has included 25 subsea trees pressure rated at 10,000 psi, fi ve sub-sea caisson separation and boosting systems, two subsea manifolds and related controls and equipment. Shell operates the Tobago fi eld on behalf of partners Chevron, Unocal and Nexen.

Petrobras strikes oil in deepwater Walker Ridge area

Petróleo Brasileiro S.A (Petrobras) has announced a new oil strike at the southeast end of its Walker Ridge concession area in the Gulf of Mexico.

The Logan discovery is 400 km (250 mi) southeast of New Or-leans, at a water depth of 2,364 m (7,750 ft). The discovery is by well WR 969 #1 (Logan #1), in block WR 969. New exploratory activities will determine the recoverable volumes and commerciality.

Statoil is the operator with a 35% interest. Petrobras América Inc. holds 35%, while Ecopetrol America and OOGC have a 20% and a 10% interest, respectively.

Hess to proceed with Tubular Bells Hess Corp. has announced plans to proceed to develop the deep-

water Gulf of Mexico Tubular Bells oil and gas project, subject to re-ceipt of the necessary government permits.

The plan initially calls for three subsea production wells and two water injection wells from two subsea drill centers tied back to a third-party owned spar production facil-ity, the fi rst of its kind to be constructed en-tirely in the United States. Drilling is sched-uled to begin in 2012 and initial production is expected in 2014.

The development is estimated to cost $2.3 billion, with additional commitments for pro-duction handling, export pipeline, and oil and gas gathering and processing services.

Annual gross production is expected to peak in the range of 40,000-45,000 boe/d. Total estimated recoverable resources for Tubular Bells are estimated at more than 120 MMboe.

Hess will hold a 57.14% interest in the fi eld and Chevron U.S.A. Inc. will hold the remain-ing 42.86%.

Tubular Bells was discovered in 2003, along with a number of other deepwater fi nds. �

Petrobras has announced a new oil discovery at the southeast end of its

Walker Ridge concession area in the Gulf of Mexico, some 400 km (250 mi)

southeast of New Orleans.

FMC Technologies, Inc. says that its enhanced

vertical deepwater tree (EVDT) system has set a

new deepwater completion record in the GoM of

9,627 ft (2,934 m).

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S U B S E A S Y S T E M S Gene Kliewer • Houston


Aker Solutions, ABB team on record subsea electrical system

A record for distance, voltage, and fre-quency will be set when ABB provides to Aker Solutions drives and transformers for the subsea power distribution system at Statoil’s Åsgard oil and gas fi eld. Åsgard is in the Haltenbanken in water depths of 240-310 m (787-1,017 ft). Gas and condensate from the Midgard and Mikkel reservoirs are transported through long distance fl owlines to the Åsgard B platform.

Aker has contracted ABB for $36 million to power the world’s fi rst subsea gas com-pression system from the Åsgard FSO off-shore Norway. The system will be able to send 15 megavolt-amperes and 189 hertz over 43 km (26¾ mi). That will set a record for distance, voltage, and frequency between a drive on a fl oating production facility and seabed compressor, says ABB.

Aker Solutions has contracted MAN Die-sel & Turbo Schweiz to supply four com-pressor units for Statoil Åsgard subsea com-pression project in the Norwegian Sea.

ABB and Aker Solutions combined on a similar project to power a subsea water in-jection system in Statoil’s Tyrihans fi eld, 31 km (19¼ mi) from the surface operating platform.

Åsgard umbilicalsNexans has been awarded a €75 million

($102 million) contract by Statoil to design, manufacture and supply a total of 165 km (102½ mi) of static and dynamic power um-bilical and power cables, as well as neces-sary accessories, for Åsgard.

Nexans’s manufacturing facilities in Nor-way, Halden, Rognan and Namsos, as well as Charleroi in Belgium, will be involved in the project. Nexans will supply four lengths of power cable and power umbilical, each 40

km (24.8 mi) long, two lengths of dynamic power umbilical, and 2.3 km (1.4 mi) of stan-dard service umbilical cable.

Aker to supply more subsea systems

Lundin Norway has awarded Aker Sub-sea a NOK-700 million ($123.9-million) EPC contract for a subsea production system for the Brynhild project in the Norwegian North Sea. The scope of work includes one template-manifold structure, one riser base, three subsea trees, three wellhead systems, a control system, a tie-in system, 38 km (23.6 mi) of umbilicals, an HP riser, and rental tooling.

There are also options for additional equip-ment, including other fi eld developments.

Brynhild is northwest of the Ula fi eld and 38 km (24 mi) east of the Pierce in UK wa-ters of 80 m (262 ft). It will be developed as a fasttrack subsea tieback to the Pierce FPSO.

Engineering and procurement of the sub-sea production system will be conducted mainly at Aker Solutions’ headquarters in Oslo. Fabrication of the subsea trees will be completed at Aker Solutions’ manufacturing center in Tranby, Norway, while the com-pany’s yard in Egersund will handle the tem-plate-manifolds. The umbilical will be manu-factured in Moss, Norway, and the control and wellhead systems in Aberdeen, UK. Aker Solution’s service base in Aagotnes,

Norway, will handle the installations, with fi nal deliveries scheduled for spring 2013.

BP awards GoM subsea work to EMAS

BP Exploration & Production, Inc. has awarded Ezra Holdings Ltd subsea construc-tion division, EMAS AMC, a contract for sub-sea work at Atlantis in Green Canyon block 743 in the GoM.

The project scope is installation and re-placement of subsea equipment comprised of manifolds, pipeline end manifolds (PLEMs), jumpers, and associated hardware in 6,800 ft (2,073 m) of water, as well as assisting BP to commission and start-up of the equipment.

Atlantis is the world’s deepest moored fl oating production facility and can process 200,000 b/d of oil and 180 MMcf/d of gas.

Noble calls for subsea trees on Tamar in the eastern Mediterranean

Noble Energy has awarded Delmar Sys-tems Inc. a contract to install fi ve subsea trees in the Tamar gas fi eld offshore Israel in the Mediterranean Sea.

Delmar says it will use the Heave Com-pensated Landing System to install the equip-ment on the Matan block in 5,500 ft (1,676 m) water depth working with the Transocean Sedco Express semisubmersible rig. Project commissioning is expected in late 2012. �

ROV spending to reach $1.7 billion in 2015Total annual expenditure on ROV support of underwater operations is expected to

grow from $891 million in 2010 to $1,692 million in 2015, predicts Douglas-Westwood in its World ROV Market Forecast 2011-2015.

The world fleet of work-class ROVs consists of 641 units operated by 21 companies.“Although ROVs are today used in many sectors ranging from academic research

to military applications and salvage, the largest commercial user is the offshore oil and gas industry where they have become an essential tool for deepwater operations,” said John Westwood, Douglas-Westwood chairman. “This was clearly demonstrated recently in the subsea work to cap the Macondo blow-out in the US Gulf of Mexico.”

Launching a Saab Seaeye Panther ROV on location. Cal Dive International (Australia) Pty Ltd has bought a Saab Seaeye Panther XT Plus ROV configured for hazardous-area operations. The ROV configuration chosen by Cal Dive, includes a Seaeye wide-angle low-light black and white camera and a Kongsberg compact color zoom camera. It also has a Tritech Super SeaKing sonar with dual frequency sonar head, and a Tritech altimeter with auto altitude option. Fitted to the ROV are two Schilling Orion manipulators: starboard side, a seven function posi-tion feedback manipulator with 3.8-in. gripper, and port side, a four function rate manipulator with 7.8-in. gripper. For debris clearance, the Panther comes with a rotary disc cutter and a 38 mm anvil cutter. There is also a water jetting system, a clean-ing brush assembly and manipulator-held cleaning brush tool. A Cygnus ultrasonic thickness gauge comes with the ROV, together with a CP proximity probe to check anode protection.

In addition, Cal Dive has won a contract to install an 8-in subsea pipeline in Abkatun field, Gulf of Mexico, for Pemex Exploración y Producción. The $27-million project, scheduled to begin in April 2012, will be in 47 m (154 ft) water depth.

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V E S S E L S , R I G S , & S U R FA C E S Y S T E M S Bruce Beaubouef • Houston


DNV to class Dockwise heavy-lift vessel under new rules

DNV reports the Dockwise Vanguard heavy-lift vessel will be the fi rst such semisubmersible vessel built under DNV’s new class rules for this type of ship.

The Vanguard has no forecastle and therefore can carry longer cargo. The deckhouse is positioned mostly outside the hull, giving the vessel the capacity to carry 70-m (230-ft) wide cargo. The vessel is about 80 m (264 ft) in total width, and is 275 m (902 ft) in length.

The vessel is to be built by Hyundai Heavy Industries in Korea. Its keel will be laid in December and the vessel is due to be delivered in October 2012.

Subsea 7 gets Petrobras contract, orders newbuild pipelay vessel

Petrobras has awarded Subsea 7 SA a fi ve-year contract to provide a dedicated deepwater fl exible pipelay vessel for use offshore Brazil.

The $500-million contract means Subsea 7 will construct a new-build vessel for $350-million. The vessel will be 146 m (479 ft) long, 30 m (98 ft) of beam, and a Class 2 dynamic positioning system.

Further, it will be equipped to transport and install fl exible fl ow-lines and umbilicals in 3,000 m (9,842 ft) water depths. Equipment is to include a tiltable lay system with top-tension to 550 metric tons (606 tons), two under-deck storage carousels, deck crane, and two ROVs. Delivery is scheduled for the second half of 2014.

Hornbeck contracts 16 newbuild OSVsHornbeck Offshore Services Inc. has signed contracts for con-

struction of 16 high-specifi cation offshore supply vessels following the recent announcement of its $720-million newbuild program.

VT Halter Marine Inc. of Pascagoula, Mississippi, and with Eastern Shipbuilding Group Inc. of Panama City, Florida, each have separate contracts to construct eight 300 class vessels with options to build ad-ditional such vessels.

VT Halter will construct eight vessels based on the Super 320 design it developed for Hornbeck Offshore. These DP-2 OSVs are designed to have 6,200 long tons of deadweight capacity, approxi-mately 20,900 bbls of liquid mud carrying capability, 11,863 sq ft (1,102 sq m) of deck area and a fi re-fi ghting class notation. The Su-per 320 design has a double-hull that eliminates any fuel storage adjacent to the sideshell, and propulsion machinery that meets the requirements of EPA Tier 3 for stack emissions.

The eight OSVs to be constructed by Eastern Shipbuilding will be DP-2 classed and consist of four vessels based on the STX Marine SV 300 design and four vessels based on the STX Marine SV 310 design. Features include more than 20,000 bbls of liquid mud carrying capacity and a fi re-fi ghting class notation. The SV 300 design calls for 5,500 long tons of deadweight capacity and 10,976 sq ft (1,020 sq m) of deck space,

while the SV 310 design calls for 6,144 long tons of deadweight capacity and 11,536 sq ft of deck space. The STX designs meet the same envi-ronmental standards as the Super 320 design and will also carry the ENVIRO class notation by the American Bureau of Shipping.

Buccaneer completes jackup rig purchase for Cook Inlet project

Buccaneer Energy Ltd. says its Kenai Offshore Ventures organi-zation has completed acquiring from Transocean Offshore Resourc-es Ltd. the GSF Adriatic XI jackup drilling rig for $68.5 million. The rig has been renamed Endeavour–Spirit of Independence.

The Marathon LeTourneau 116-C jackup is in Singapore for modi-fi cations to winterize it and to return it to duty following a cold stack. The fi rst well for the Endeavour is expected to be at Buccaneer’s Southern Cross project offshore Alaska. Drilling is expected to be-gin 2Q 2012 on the Cook Inlet site.

Aseng FPSO reaches fi rst production offshore Equatorial Guinea

The FPSO Aseng has started fi rst production offshore Equatorial Guinea in block I with 1,000 m (3,280 ft) water depth, reports SBM Offshore N.V.

This marks the hand-over of the FPSO to Noble Energy EG Ltd. two months ahead of schedule. Noble has contracted the FPSO for 15 years with provisions for extensions to fi ve more years.

The FPSO serves not only Aseng fi eld, but also will be a liquids hub for Noble Energy’s future developments in the area with pro-cessing capacity for 120,000 b/d of liquids including 80,000 b/d of oil and an injection capacity of up to 150,000 b/d of water, as well as handling 170 MMcf/d of gas. The unit can store 1.6 MMbbl of oil including up to 500,000 bbl of condensate.

SBM Offshore has a joint venture with Compania Nacional de Petroleo de Guinea Ecuatorial (GEPetrol), the state oil company of Equatorial Guinea, for the ownership and operation of the Aseng unit. Under this agreement, SBM Offshore owns a 60% share with GEPetrol holding the remaining 40%.

TSC secures second Super M2 jackup rig package

TSC Group Holdings Ltd. says it has secured the second Super M2 jackup rig (300 ft) package from CIMC Raffl es Shipyard, following close-ly after the fi rst package that was signed in October this year. Combined with the previous order, the two jackup rig orders worth a total of approxi-mately $68 million. Both rigs are expected to be delivered by 4Q 2013.

The Friede & Goldman-designed Super M2 is a self-elevating drilling unit operating in water depths of up to 300 feet, with a drilling depth of 30,000 ft. TSC Group will design, manufacture, install, and commission the integrated drilling rig package for the rig which will be delivered to CIMC Raffl es Shipyard in Yantai, Shandong Province, China.

Hamworthy to supply gas generator for BP FPSO

Hamworthy says it has won a contract from South Korea’s Hyun-dai Heavy Industries to supply its inert gas generator (IGG) package for the QUAD 204 FPSO project. The BP-operated FPSO is to be de-ployed some 110 mi to the west of the Shetland Isles in the North Atlantic as a replacement for the Schiehallion FPSO.

Hamworthy will supply two sets of inert gas generator units, including two deck water seals, two control systems, two inert gas cleaners and two pressure vacuum breakers. The IGG system together with the control system will be placed inside a dedicated inert gas room to protect it from the harsh operating environment. The new FPSO, measuring 270 m by 52 m, will be able to produce 130,000 bbl of oil and 2.2 MM cu m of gas per day and will have a storage capacity of 1.06 MMbbl of oil. �

Dockwise’s new heavy lift vessel, the Dockwise Vanguard, will be able to

lift and transport units of up to 110,000 m tons (121,254 tons) weight.

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D R I L L I N G & P R O D U C T I O N Eldon Ball • Houston


Forecast for 2012 oil prices It’s that time of year again. Sleigh bells

ring and we’re listening and in the lane, snow is glistening, and we’re ready for an-other annual forecast of oil prices for 2012, and all that implies.

This year, after consulting with the gnomes of Zurich, the sheiks of Dubai, and the entrails of a number of environmentally un-endangered birds, we have divined a 2012 average price that we believe will stand the tests of logic and probability.

But fi rst, let’s examine the rationale.Remember that price is a function of supply

and demand, so that whatever increases sup-ply – demand being static – decreases price, and vice versa. Seldom does either price or de-mand remain static, so we are challenged with anticipating the size, direction, and timing of their movements. Here are some currently oc-curring trends that can move the market:

Bullish indicatorsAt press time, WTI sweet crude prices

are creeping past $100/bbl on the futures market and Brent crude is weighing in at just over $111/bbl. This is a strong trend, although of indefi nite duration. Recent eco-nomic reports in the United States show that consumer spending increased for elec-tronics, appliances, hardware, building sup-plies and at grocery stores, restaurants and health care stores, suggesting a healthier economy and growing energy demand. The economies of Asia, specifi cally India and China, continue to expand, increasing en-ergy demand.

In addition, the strength of the US dollar continues to fall. Since oil is priced in dol-lars, the less they are worth, the more it takes to buy something, including a barrel of oil. Although the US dollar is currently trading slightly above its 200-day moving av-erage, it has been in a steady decline since May of this year. Current fi scal policy by the US administration and the Federal Reserve won’t change that trend.

Bearish indicatorsReports from Libya maintain that all fac-

tions, still red in tooth and claw from violent disagreements, can at least agree that it be-hooves them to sell oil, and that hence a sup-ply of 1.6 MMb/d will return to the market by June of next year. This increased supply will put downward pressure on prices.

As the long-running drama of European government debt continues to unfold, we fi nd that now even France, the Netherlands, Finland, Spain, Belgium, and Austria are at risk of rising interest rates and in danger of joining Greece and Italy in approaching unsustainable debt service costs. If that happens, Europe could see a ripple effect

of defaults or write-downs that would result in widespread recession. Analysts say that oil traders have priced in the potential for a slowdown in the euro zone. This editor would beg to differ.

New reserves from the shale oil and gas plays in the US are a double-edged sword. While the new sources of supply will reduce American reliance on imports – helping the US balance of payments and relieving the impact of higher energy prices on the US economy – they will have a downward infl u-ence on prices (something already occurring for gas). In fact, we expect gas to gradually replace oil for some energy uses, bringing further downward pressure on crude prices. There is little doubt that the shale boom in the US is signifi cant. Anadarko Petroleum, for example, says its horizontal Niobrara program in the Wattenberg fi eld in Colorado generates returns competitive with its best projects. Anadarko says reserve potential in Wattenberg alone is 500 MM to 1.5 Bboe. It is the tip of a very large iceberg.

OPEC has traditionally held the trump hand on oil prices, able to increase or reduce supply when price gets out of hand in one di-rection or the other. It has been the strategy of oil-consuming nations for years to fi nd sources outside the OPEC cartel and there-fore more responsive to market forces. Wit-ness China, which, steeped in the Confucian wisdom of peering far into the future and planning accordingly, has taken E&P and purchasing positions throughout the globe in such oil-rich environs as Brazil, Venezu-ela, most of West Africa, Australia, and Can-ada. Leaving no stone unturned, CNOOC is even now exploring off Cuba. Even so, OPEC still controls an estimated 70% of sup-ply, clearly enough to control prices if all the members follow policy. It is OPEC’s policy to not allow oil to price itself out of the market.

Iran: The wildcard Even the United Nations now admits that

Iran is working to develop a nuclear strike capability, and even the most gullible of world leaders doubts that once it reaches that capability, Iran will use it. If that hap-pens, or if Israel mounts a preemptive strike, as has been speculated, all other calcula-tions are meaningless.

For the fi rst half of 2012, the bullish trends outweigh the bearish, and we see an average fi rst half price of $98/bbl, with short-term prices whipsawing as much as 20% on either side of that level. It will take until May for the European situation to resolve into some-thing the market can assimilate, after which price could fall. Remember that in late April, crude oil futures contracts were trading at $115, and as recently as early October they were at $75.

It’s not an exact science. And we’re not ready to make a call on the second half of 2012.

McMoRan hits pay dirtMcMoRan Exploration Co. has encountered

new hydrocarbons at its Lafi tte ultra-deep pros-pect, Eugene Island Block 223, in 140 ft (42 m) of water. The well has been drilled to a TVD of 29,756 ft (9,070 m) and has been logged with wireline logs to 29,740 ft (9,064 m). The wire-line log results indicated 56 net ft (17 m) of hydrocarbon-bearing sand over a 58-ft (17.6 m)

gross interval in the Cris-R section of the Lower Miocene with good porosity, the company said. Flow testing will be required to confi rm the ul-timate hydrocarbon fl ow rates from this zone, which was full to base. McMoRan controls ap-proximately 15,000 gross acres in the immedi-ate area of Lafi tte.

The new Cris-R sand interval combined with the previously encountered 115 ft (35 m) of po-tential net pay (250 gross ft (76 m)) brings the total possible productive net sands to 171 ft (52.4 m) in the Lafi tte well. These results enhance the potential of McMoRan’s other acreage in the Lafi tte strategic area, including its Barataria and Captain Blood ultra-deep prospects. Barataria (10,000 gross acres) is located west-southwest of Lafi tte and Captain Blood (10,000 gross acres) is located immediately south of Lafi tte.

McMoRan plans to apply for a permit to deepen the Lafi tte well to a proposed TD of 32,000 ft to evaluate deeper objectives. �

Lafitte is McMoRan’s third ultra-deep prospect

to encounter Miocene age sands below the salt

weld on the GoM Shelf.

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G E O S C I E N C E S Gene Kliewer • Houston


Arctic areas in the newsIn addition to the offshore Iceland seismic

available from Spectrum as described on the map (right), there is more arctic exploration news. TGS is acquiring 1,500 sq km (580 sq mi) of 3D multi-client seismic data between the Finnmark Platform and Nordkapp basin of the Barents Sea. TGS says the survey will follow the bended strike direction of the in-verted margin between the two structures. The data will be processed by TGS and avail-able to clients by 2Q 2012.

TGS, in partnership with PGS, also has a 22,000-km (13,670-mi) long multi-client sur-vey offshore Labrador-Newfoundland. After suspending work on the program this fall, the vessel will return early next summer to complete the survey.

Further northeast, TGS started a 1,800-km (1,118-mi) 2D program offshore north-east Greenland. This is a joint TGS/Fugro

project, with TGS processing the data.In southeast Greenland, TGS acquired

29,000 km (18,019 mi) of airborne gravity, magnetic, and seep data during the third quarter of the year, the fi rst time the com-pany has deployed Seepfi nder technology to detect oil seeps on the sea surface.

Another survey still under way is a 2D op-eration in the Laptev and East Siberian Sea of the Russian arctic, in partnership with Rus-sian contractor DMNG. The vessel acquired 5,050 km (3,138 mi) of MC 2D during 3Q and early 4Q. Acquisition will continue into 4Q as long as ice conditions allow.

IONGeophysical acquired another 5,200 km (3,231 mi) of seismic offshore northeast Green-land. In addition, ION also worked in the 2011 Arctic Expedition at the Exclusive Economic Zone of the Russian Federation. The survey was performed by order of the Federal Subsoil Resources Management Agency, under the guidance of the State Research Navigation and Hydrographic Institute, in support of submission of Russia to the U.N. for extension of the limits of the continental shelf. Seismic data (approxi-mately 6,000 km, or 3,728 mi) was acquired over 57 days, culminating in the acquisition of data at a distance of less than 300 km (186 mi) of the North Pole.

Reprocessing adds to pros-pects offshore Ireland

In climate contrast, Providence Resources

says the Dragon discovery in the St. George’s Channel basin off southeast Ireland may con-tain more gas than previously suspected. The new assessment resulted from a seismic inver-sion study over the area by IKON Geoscience.The study involved modeling of historic well and seismic data using more modern technol-ogy. The results suggest that the presence of the Dragon gas-bearing reservoir sands may be directly detectable from the 3D seismic data.

Revised mapping using these inverted seismic data indicates that the gas accumulation may extend further into Irish waters than had been previously been mapped, with potential re-sources of up to 300 bcf. Providence has started additional reprocessing of the 3D seismic data ahead of a planned appraisal well in 2012.

Black Sea survey completedMelrose Resources has started acquisi-

tion of a 3D seismic survey on the Galata exploration block in the Bulgarian sector of the Black Sea. Around 500 sq km (193 sq mi) of data will be acquired over the central part of the concession which contains the Chaika prospect, with estimated prospective resourc-es of 80 bcf, and two other exploration leads.The main focus of the Muridava acquisition program will be Eocene and Cretaceous leads and prospects in the same play as the existing Olimpiskiyi discovery and Lebada oil fi elds.

3D survey pending offshore Northwest Australia

TGS should be under way in acquiring new 3D multi-client seismic data over the Exmouth plateau in the Carnarvon basin offshore Northwest Australia. The acreage covers blocks WA-364-P, WA-365-P, and WA-

367-P. Completion is expected in 1Q 2012 and a fasttrack data volume is to be available in 2Q 2012 with fi nal data in 1Q 2013.

Elsewhere offshore Australia, Bengal En-

ergy is designing a 750-sq-km (290-sq-mi) 3D program for late this year or early next in AC-P 47 off northern Australia. The area is 150 km (93 mi) west of the Vulcan graben production.

Bengal also is reprocessing available seismic data over its CY-OSN-2009/1 block offshore India. Additional seismic data may be collected between now and 1Q 2012 to ac-celerate the drilling of an exploration well.

3D program fi nished offshore Bahamas

Bahamas Petroleum says the 3D data acqui-sition phase of its seismic program offshore the Commonwealth of the Bahamas is complete. Acquired by CGGVeritas, the data is undergo-ing processing by the same supplier. A fi nal total of 3,075 sq km (1,187 sq mi) was covered. The area was extended during the acquisition based on initial data quality. Bahamas Petro-leum says the processing and interpretation of the 3D data will refi ne and reinforce the conclu-sions reached based on earlier 2D data and also will help defi ne individual structures for further screening prior to drilling. �

Spectrum has released of 10,000 km (6,214 mi) of 2D multi-client seismic data over the Dreki/Jan

Mayen Ridge offshore the northeastern Iceland. The datasets are within the acreage scheduled by

the National Energy Authority of Iceland as part of the Second Licensing Round for hydrocarbon

exploration and production. The application deadline is April 2, 2012. The Spectrum datasets have

identified pre-Tertiary basalt sequences (possibly Mesozoic) and a number of seismic anomalies

indicating hydrocarbons may be present. All the elements of a potential working hydrocarbon

system have been identified within the area in both structural and stratigraphic play types. The

inset map traces 1,702 km (1,058 mi) of regional tie lines that link the Jan Mayen through the Lo-

foten basin toward the Barents Sea margin and the proven petroleum system of the North Voering

basin offshore Norway. The National Energy Authority of Iceland (NEA) has unveiled the second

round for hydrocarbon exploration and production licenses on the Icelandic continental shelf.

The blocks are in the Dreki area northeast of Iceland, and cover 42,700 sq km (16,486 sq mi).

Water depths are in the 800-2,000 m (2,625-6,562 ft). Dreki is part of the Jan Mayen ridge.

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O F F S H O R E A U T O M AT I O N S O L U T I O N S


Ian VerhappenIndustrial Automation Networks Inc.

Alarms are the most common way to tell an operator about an abnormal situation, and that is why they are such an important part of a modern control system. Because control systems make alarms so easy to confi gure and the addition of an alarm has no direct cost, alarms are often confi gured and enabled by default. An offshore platform may have 20,000 alarms – a lot of data points to maintain.

Prior to the distributed control system (DCS), with the wall-mounted instrument panel, an operator had around 50 “light box” alarms for events requiring corrective action. Today, it is not un-usual to see one operator console confi gured with 3,500-plus alarms.

Each alarm is initiated by a fi eld device or combination of signals, all of which require calibration and maintenance. If the fi eld device is improperly maintained, the associated alarm will be unreliable and can result in inaccurate alarms. The question then becomes one of managing and maintaining sensitive/accurate hazard warnings versus the tradeoffs of false alarms.

The practice of maintaining this balance is the science of Abnor-mal Situation Management. The EEUMA 191 (http://www.eemua.org) standard forms the basis for alarm and abnormal situation man-agement best practices. The EEUMA defi nition of the purpose of an alarm system is to direct the operator’s attention towards plant conditions requiring timely assessment or action.

The most basic guideline from the EEUMA and Abnormal Situation Management consortium (http://www.asmconsortium.net/Pages/de-fault.aspx) in determining if you have an alarming problem is if the rate of alarms in fi rst 10 minutes following upset is more than 10/10 minutes while average alarm rate during normal operations as per fi gure below should be less than one low priority alarm every 10 minutes.

Because DCS alarm problems take various forms, additional work on alarm management and control system confi guration is being done by two ISA (www.isa.org) Standards committees: ISA S.18.02 “Alarm Management for the Process Industries” and ISA-106 “Pro-cedural Automation for Continuous Process Operations.”

Some of the most prevalent alarm problems found on a DCS in-clude the following.

• Alarm fl oods. An operator gets hundreds of alarms within a few minutes of a minor upset, and consequently misses detecting critical alarms

• High, continuous alarm rates. Rates are often far above an op-erator’s ability to handle. In this case, hundreds to thousands of alarms are ignored each week with no guarantee that the “right” ones are ignored

• Improperly suppressed alarms, without records or notifi cations a risk to operations.

• Chattering and similar nuisance alarms make detection of valid alarms more diffi cult and therefore more likely to be missed. This can make an upset condition worse and/or last longer

• Stale or long-standing alarms that result from situations like these clutter an operator’s view of the overall situation to make it more diffi cult to quickly and easily identify the root cause of the problem or identify any new alarms.

Timely detection, assessment, and response to an alarm are criti-cal to success in keeping a platform up and running.

Abnormal situations that impact production vary from minor up-sets to full shutdowns. They can be caused by a number of factors, including equipment failure, human error, and severe weather con-ditions. These situations then impact profi tability through reduced product quality, diminished job satisfaction, lower product through-put, increased equipment damage, higher personal injury rates, and greater risk of loss of life. The result on production alone from unex-

pected events typically costs a facility 3 – 8% of capacity.Production platforms and processing facilities are dynamic, wtih

multiple operating states requiring different alarm settings. Control systems alarms are inherently designed to support a single operating state and, therefore, become useless outside the normal steady state. For optimum performance, alarm systems should be altered in real time under certain defi ned, controlled conditions to support each op-erating state. The need is expressed in three related functions:

• Alarm shelving – Inactivating an alarm for a period of time but in such a way that you are reminded that it is not operational

• State-based alarming – Changing of alarm set points based on the operating status of the facility such as start-up, shutdown, etc.

• Alarm fl ood suppression – Designing the alarm system so that if one alarm is activated none of the related subsidiary alarms annunciate. For example a pump failure alarm will suppress an associated resulting low pressure alarm.

One example of an offshore platform typical alarm fl ood candi-date is the building air pressure monitor. Air conditioning maintains pressurization in inhabited areas. This is an inherently noisy signal, and it is complicated by doors opening and closing and wind direc-tion changes. If the alarm is not confi gured properly to differentiate these from a true alarm (resulting from a sustained drop in pres-sure), many spurious alarms will result. When something does hap-pen, the alarm will be ignored. An alarm management system will classify such an alarm as a “bad actor” and fl ag it for follow-up.

Compounding the alarm problem are false alarms such as the just described air conditioning situation or false signals from fl ame or gas detectors which pose dangers to workers and can be expensive in production losses.

False alarms add their own brand of safety issues. Workers can be injured as they respond to the false alarms. Conversely, if workers hear enough false alarms, their response time might decrease. In addition, false alarms cost time and money: lost production dollars, lost work time for crews, and, of course, overtime pay for the folks who get pulled from sleep at 3 a.m. to address the false-alarm call.

We will never eliminate abnormal situations, but that does not mean we cannot make an effort to manage them. The tools and practices, as well as the incentive to do so, are certainly there – all it takes is the will power to do so. �

The author Ian Verhappen, P. Eng., is an ISA Fellow, ISA Certifi ed Automation Professional,

and a recognized authority on Foundation Fieldbus and industrial communica-

tions technologies. Verhappen operates a global consultancy Industrial Automation

Networks Inc. specializing in fi eld level industrial communications, process analytics

and hydrocarbon facility automation.

Basic guideline put forward by the EEUMA and Abnormal Situation Man-

agement consortium.

Alarmed about abnormal situations

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T O P 5 P R O J E C T S

Nord Stream completes world’s

longest subsea pipeline

With the completion of Line 1, developers of the €7.4-billion ($10-billion) Nord Stream pipeline project have realized the ambitious goal of moving Russian gas to European markets directly through the Baltic Sea.

First announced in 2001, the project called for con-struction of two parallel 759-mi, 48-in. pipelines to move natural gas from Vyborg, Russia, to Lubmin, near Greifswald, Germany. The Nord Stream consortium includes Gazprom, Wintershall, E.ON Ruhrgas, Gasunie, and GDF SUEZ.

In early November, the developers announced that Line 1 had become operational, and that gas is now fl owing to Lubmin, Germany, where Nord Stream is connected to the European gas grid. Line 1 is expected to be able to move up to 27.5 bcm (971 bcf) of gas on an annual basis.

Pipelay activities were completed on Line 1 in June, making Nord Stream the longest subsea pipeline in the world, surpassing the re-cently completed Ormen Lange gas pipeline (which runs about 725 mi, or 1,167 km, in the North Sea).

Construction of Nord Stream Line 2 is also progressing on sched-ule, and some 600 km (373 mi) of this line have been installed to date. Pipelay on this line is expected to be completed in 3Q 2012, and the line is scheduled to become operational before the end of next year.

Building the fi rst Nord Stream pipeline was a major engineering and construction accomplishment. Because it passes through the waters of fi ve countries and could affect others, an extensive permit-ting and consultation process had to be followed. The twin pipeline system runs through the exclusive economic zones and territorial waters of Russia, Finland, Sweden, Denmark, and Germany. The na-tions of Poland, Latvia, Lithuania, and Estonia were designated as affected parties.

An important part of the process focused on pre-serving safety and reducing environmental impact. The consortium invested €100 million ($135.5 mil-lion) and engaged in extensive dialogue and con-sultations with governments, authorities, experts, and stakeholders in all Baltic Sea states to ensure that the design, routing, construction, and opera-tion of the pipeline will be safe and environmentally sound. The terrain along the route was carefully researched and cleared in preparation for the pipe laying, and Nord Stream was routed to keep clear of munitions dump sites. Construction was scheduled to avoid environmental impact and not interfere with critical seal breeding and fi sh spawning sea-sons. With these concerns addressed, the required permits were received in February 2010, and con-struction of Line 1 began the following April.

Preliminary engineering design was performed by INTEC Engineering (now INTECSEA); with the detailed design engineering conducted by Snamprogetti. Saipem and its subcontractor All-seas carried out the offshore pipelaying activities. A joint venture of Royal Boskalis Westminster, and Tideway did the pre-lay seabed dredging work.

The line pipe was manufactured by EURO-PIPE, OMK, and Sumitomo Heavy Industries,

with the concrete weight coating and logistics services provided by EUPEC PipeCoatings S.A. For the concrete weight coating, new plants were constructed in Mukran (Germany) and Kotka (Finland). Each pipeline will be comprised of 100,000 12-m (39-ft) long concrete-weight coated steel pipe joints, each weighing around 23 metric tons (25 tons). For the construction period, Nord Stream created a logistics center in Gotland (Sweden); and other interim stock yards were located in Mukran, Kotka, Hanko (Finland), and Karlshamn (Sweden) to continu-ously supply the concrete-coated pipe joints to the lay barges.

Since plans called for the pipeline to be laid in three sections, Saipem organized three laybarge vessels, two with special requirements. Its pipelay vessel Castoro Dieci, designed to operate in shallow waters, worked in the Bay of Greifswald, Germany. It installed 28 km (17 mi) of each of the twin pipelines, working from June to October 2010.

The Allseas Solitaire – the biggest pipelay vessel in the world – installed a 342.5-km (212.8-mi) segment of each of the twin pipelines offshore Finland, starting in September 2010 and completing in Au-gust 2011. With its dynamic positioning system, the Solitaire was ide-ally suited for working in the congested Gulf of Finland.

Saipem’s Castoro Sei installed about 70% of Line 1, some 853.5 km (530.4 mi). It started work on Line 1 in April 2010, and fi nished in May 2011. It began work on Line 2 this past June, and is expected to complete pipelay activities on Line 2 in 3Q 2012.

The fi nal weld connecting the offshore and onshore parts of Line 1 was completed in August, and all three sections were joined using underwater hyperbaric tie-ins. These tie-ins were conducted at two locations. The connection of the Gulf of Finland and central sections

took place offshore Finland in a water depth of 80 m (262 ft). Linking of the central and south-western sections was performed in 110 m (361 ft) of water off the Swedish island of Gotland. Each tie-in was conducted in an underwater welding habitat and remotely controlled from the Technip DSV Skandi Arctic.

A key design element for Line 1 is that the sys-tem will operate without an intermediate compres-sor station, which will lower operational costs and reduce CO

2 emissions. Gas travels the full 759 mi

distance thanks to the 220 bar pressure generated at the Portovaya compressor station near Vyborg. The pipeline has a constant internal diameter of 1,153 mm (approx. 45 in.), but the system was de-signed to have three different design pressure sec-tions (220, 200, and 177.5 bar) and pipe wall thick-nesses (34.4, 30.9 and 26.8 mm; or 1.35, 1.21 and 1.055 in., respectively) corresponding to the gas pressure drop over the long journey from Russia to Germany. By designing each section according to the changing pressures, Nord Stream was able to save on the amount of steel used, and thus the cost of the pipe.

When the second line is completed in 2012, Nord Stream will have the capacity to move 55 bcm/yr (1,942 bcf/yr) to the European gas net-work. �

Bruce BeaubouefManaging Editor

Saipem’s Castoro Dieci pipelay vessel

worked in the Bay of Greifswald, Germany,

from June to October 2010. Designed to oper-

ate in shallow waters, it installed 28 km (17

mi) of each of the twin pipelines in that area.

Photo courtesy Nord Stream.

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Pazflor development relies on subsea

separation system handling four reservoirs

The Pazfl or fi eld offshore Angola boasts a number of fi rsts. Foremost among them is that it is the fi rst-ever project anywhere to deploy a development plan based on gas/liquid separation at

the mudline spanning several reservoirs.This technological innovation is what will

make it possible to produce the heavy, vis-cous oil contained in three of the four res-ervoirs in this gigantic development in the Angolan deep offshore.

Pazfl or, operated by French oil company Total, lies 150 km (93 mi) off Luanda in water depths ranging from 600 to 1,200 m (1,968-3,937 ft) and has estimated proved and probable reserves of 590 MMbbl. The fi eld will gradually ramp up to its full produc-tion capacity of 220,000 b/d over the coming months.

“Pazfl or’s start-up, several weeks ahead of schedule and within budget, is a remarkable achievement of the teams involved,” said Yves-Louis Darricarrère, president of ex-ploration and production at Total. “The sup-port and trust of Sonangol, our concession holder and partner, also made an invaluable contribution to our effi ciency.”

Pazfl or comprises a vast subsea gather-ing network, the most complex ever built in Angola, including 180 km (111.8 mi) of lines tying in 49 subsea wells and 10,000 metric tons of subsea equipment and the giant Paz-fl or FPSO.

Held in position by 16 subsea mooring connectors, the FPSO is the largest in the world at 325 m (1,066 ft) long, 62 m (203 ft) wide and a weight of more than 120,000 metric tons. It can store up to 1.9 MMbbl of oil that is then exported to tankers via an offl oading buoy. The associated gas is re-injected into the reservoir, but could also be exported to the Angola LNG plant once the latter becomes operational.

The Pazfl or FPSO was constructed in South Korea by Daewoo Shipbuilding and Marine Engineering (DSME), which was contracted to provide the engineering, pro-curement, and construction for the FPSO vessel’s moorings, hull, and topsides. In turn, Daewoo awarded KBR the contract to provide topsides engineering, procurement, and interface design services for the FPSO.

The FPSO has a topside weight of 35,494 metric tons. It is designed with a process-ing capacity of 200,000 b/d of oil and 150

MMcf/d of gas. Facilities are planned for a 20-year design life, and quarters are pro-vided for 220 operation and maintenance personnel. It began the 10,000-nautical-mile (19,000 km; 12,000 mi) journey to Angola in January, towed by three Fairmount Marine tugs, and was moored and installed on ar-rival.

A key technical challenge was producing two very different grades of oil from four separate reservoirs. Producing the heavy, viscous oil from the three Miocene reser-voirs, which account for two-thirds of the reserves, and the related fl ow assurance constraints, represented a major challenge. The gas has to be separated from the liquids on the seabed so that the viscous liquids can then be pumped to the surface. The design and installation of subsea gas/liquid separa-tion units and pumps are a world fi rst on this

scale. The pumps were purpose designed and tested for Pazfl or.

Pazfl or’s fi rst discovery – the Perpetua reservoir – came in 2000. Acacia and Zinia were discovered in 2002, followed by Hor-tensia in 2003. Pazfl or encompasses all four reservoirs and covers an area of over 600 sq km (231 sq mi).

Acacia contains light, good quality oil, similar to that of Girassol. The Perpetua, Zinia, and Hortensia reservoirs contain heavier, more viscous oil, making them more diffi cult to produce. Total decided to combine the production of these two very different oils, in keeping with its ongoing aim of optimizing the production of deep off-shore resources. The choice called for two different subsea production systems tied into a single FPSO.

For the three Miocene reservoirs contain-ing heavy oil, the gas is separated from the oil and water on the seabed. Once separated, the oil and water are forced to the surface using pumps designed for Pazfl or, also in-stalled on the seabed. The lighter gas rises naturally to the FPSO. The subsea modules are critical to production and are designed to operate for a 20-year period.

FMC Technologies supplied the three subsea separation systems. FMC also sup-plied the fi eld’s 49 subsea trees (25 produc-tion, 22 water-injection and two gas-injection trees) and 49 wellhead systems. In addi-tion, the company provided three four-slot production manifold systems, a production control and umbilical distribution system, gas export and fl owline connection systems, ROV tooling, and local support for installa-tion and start-up activities.

Total awarded a $1.1-billion contract for subsea work to a consortium led by Technip and including Acergy. Technip was respon-sible for engineering, procurement, fabrica-tion, and installation of more than 80 km (50 mi) of production and water injection rigid fl owlines, fl exible risers, and integrated pro-duction bundle risers, plus engineering, pro-curement, and fabrication of 60 km (37 mi) of umbilicals. Installation was by Technip’s vessels Deep Blue and Deep Pioneer.

Acergy was responsible for engineering, procurement, fabrication, and installation of 55 km (34 mi) of water injection, gas injec-tion, and gas export lines, umbilicals, and 20 rigid jumpers. �

Eldon BallSenior Editor

Technology & Economics

Pazfl or by the numbers• 150 km (93 mi) offshore, comprises

four reservoirs covering 600 sq km (231 sq mi)

• 600 to 1,200 m water depth• FPSO is 325 m (1,066 ft) long, 62 m

(203 ft) wide• Living quarters for 140 people• Production plateau of 220,000 b/d• Two subsea production systems encompass 49 wells (25 producers, 22 water injectors and two gas injectors) and three subsea separation units connected to six pumps

• 180 km (111.8 mi) of pipeline • 60 km (37 mi) of umbilicals

The Pazflor FPSO is the largest in the world at

325 m (1,066 ft) long, 62 m (203 ft) wide and a

weight of more than 120,000 metric tons.

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Karan marks first-ever non-associated

gas project offshore Saudi Arabia

Production to reach 1.8 bcf/d at full fl ow

Startup of Saudi Aramco’s $8-billion Karan gas fi eld project offshore Saudi Arabia is signifi cant because it marks the fi rst-ever non-associated gas de-velopment project in the country.

At this point, fi ve wells are fl owing 120 MMcf/d on the way to a design capacity of 1.8 bcf/d by 2013. The fi eld produces gas via a 110 km (68 mi) long subsea pipeline to the onshore Khursaniyah process facility. Plans call for approximately 20 total wells spread over four production platforms that tie in to a main platform with associated electrical pow-er, communications, and remote monitoring and controls.

Karan originally was to target a production rate of 1 bcf/d at the initial workup in 2007. Subsequently, the target production was in-creased to 1.5 bcf/d and then again to today’s 1.8 bcf/d. Even with this 80% increase, the project schedule was decreased by a year in order to meet rising in-country demand for natural gas.

Karan is designed to increase sales gas production capacity when linked to the Saudi Master Gas System and to provide fuel and feedstock to the petrochemical industries.

The discovery well, Karan-6 drilled in 2006, struck gas in Permian and Triassic carbonate sequences of the Khuff formation. With gross

thickness of 1,000 ft (305 m), this is the thick-est Khuff reservoir found to date in Saudi Ara-bia. The formation depth ranges from 10,500 ft to 13,700 ft (3,200 m to 4,176 m). Karan is in 40-60 m (131-197 m) water depth.

The offshore work at Karan is under a $1.2-billion contract awarded to J. Ray McDer-mott S.A. McDermott won the turnkey con-tract that included manufacturing and install-ing four wellhead platforms, each with gas, chemical injection, and controls facilities as well as a bridge-connected auxiliary platform, associated fl are bridges and stacks, and con-struction of the 110-km subsea pipeline.

The fabrication scope included topsides and jackets weighing a total of 27,000 met-ric tons (29,762 tons) and used J. Ray’s new cladding facility in Jebel Ali.

As part of that agreement, McDermott also will work on the procurement, fabrica-tion, and installation in the Berri oil fi eld and support structure for Karan.

The offshore work contract includes 120 km (75 mi) of 40-in fi eld gas pipeline in addi-tion to the 100 km 36-

in pipeline to shore. McDermott was assigned the two fl are structures with bridge, three gas handling platforms, and the wellhead platforms.

In 1Q 2009, Aramco awarded the onshore EPC contracts to Hyundai Engineering & Construction and to Petrofac. Hyundai is responsible for the six gas processing trains at Khursaniya, consisting of gas handling, sweetening, acid gas enrichment, gas de-hydration, and propane refrigeration. Petro-fac’s contract covers the utilities and cogen-eration facilities which includes 47 km (29 mi) of sales gas pipeline and upgrade of the plant electrical system and support facilities.

Getting to the point of construction and then startup took some turns and re-starts. In early 2009, Aramco reduced by $2 billion the total available to develop the fi eld. This followed re-submission of bids from fi rms for the main EPC packages. Saudi Aramco wanted to spend less because oil and commodity prices had fallen and there was greater competition among con-tractors in a slowing work environment. Shortly thereafter, Saudi Aramco also eased the terms and conditions for contractors in a bid to reduce construction costs on Karan. �

Gene KliewerTechnology Editor, Subsea & Seismic

(Left) Setting platform topsides at Karan field.

(Below) Platform base set and awaiting topsides installation.

Karan Project Summary Project Name: Karan Gas Field Development Name of Operator: Saudi Aramco - Saudi Arabian Oil Co.Budget: $8 billion through to completion Main Contractors: GS Engineering, J Ray McDermott , Petrofac, Hyundai EngineeringLocation: Khursaniyah, Eastern Province

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Peregrino producing heavy oil

for Statoil offshore BrazilNick Terdre

Contributing Editor

The achievement of fi rst oil from the Peregrino heavy-oil fi eld in Brazil in April marked a major milestone for Statoil, the operator. It is the fi rst fi eld to be brought onstream by the company in Brazil and its largest operated fi eld outside Nor-way. And by bringing Peregrino’s 14ºAPI crude to the sur-

face, Statoil provided convincing testimony of its heavy oil expertise.Lying in a water depth of 100-120 m (330 to 390 ft) in the Campos

basin, some 85 km (53 mi) from shore, Peregrino was developed with two wellhead/drilling platforms which deliver production to an FPSO for processing and storage. First oil was achieved through a single well, but within a year production is due to ramp up to a peak of some 100,000 b/d.

The FPSO, Maersk Peregrino, is supplied and operated under a 15-year lease, with options for a further 15 years, by Maersk FPSOs. Converted from a newbuild VLCC tanker at the Keppel FELS yard in Singapore, it has 1.6 MMbbl storage capacity, production capacity of 100,000 b/d of oil and 7.3 MMcf/d of gas, and liquids-handling capacity of 350,000 b/d. The 15 modules which constitute the topsides weigh 12,500 metric tonnes (13,779 tons) and there is accommodation for 100 personnel. The topside process modules were delivered by J. Ray McDermott.

The vessel is moored to a submerged turret production system

provided by APL, which is held in place by 10 chain-and-wire moor-ing lines attached to 90-metric tonne (99 ton) piles. The mooring was performed by Aker Marine Contractors.

The two wellhead platforms were constructed at Kiewit’s Cor-

The Peregrino layout: Two wellhead platforms tied back to an FPSO. (Im-

age courtesy of Statoil)

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pus Christi, Texas, yard. Each has a topsides of about 8,200 metric tonnes (9,039 tons) dry weight supported by a 6,700-metric tonne (7,385-ton) jacket. The platforms were installed by Heerema Marine Contractors’ crane-barge Hermod. Operations, maintenance, and modifi cation services are provided by Wood Group.

Each wellhead platform connects to the FPSO by two oil produc-tion pipelines and an injection water pipeline, while two power and signal cables also run from the FPSO to each platform. Pipelay and cable-lay was performed by Subsea 7.

In the fi rst phase, 37 wells are planned, consisting of 30 horizontal producers and seven water injectors. With its rather unconsolidated sands and thin oil-bearing sections, the reservoir represents a chal-lenge to drill, which is being done by Archer. But the achievements are already being recorded, including the longest horizontal open-hole gravel-packed section ever drilled in Brazil – 1,300 m (approx. 4,200 ft) – and future plans call for even longer sections

Electric submersible pumps are installed downhole in each pro-duction well to boost the wellstream fl ow to the surface. On arrival on the FPSO, the crude is heated to 130-150ºC to facilitate process-ing, and the stabilized oil is stored at 65-70ºC.

Next year, Statoil plans to start implementing IOR (increased oil recovery). The fi rst of these is multi-lateral wells, which the compa-ny is familiar with due to its extensive use of them on the Norwegian continental shelf. However, the Peregrino multi-laterals will be the fi rst such wells in Brazil.

Polymer fl ooding of the reservoir will also be implemented, to improve the effect of water sweep. This is a proven technique on onshore fi elds, and in 2010 Statoil ran a successful pilot on the Heid-run fi eld in Norway. The third IOR measure is a smart tool known as the autonomous infl ow control device (AICD), a version of which

Statoil has patented. Installed as part of the well completion, the AICD is able to distinguish between high-viscosity heavy oil, which is allowed to pass into the well-bore, and low-viscosity water and gas, which is kept out.

Hydro bought into Peregrino in 2005; and then StatoilHydro, as the company came to be known, bought Anardarko’s stake in 2008, becoming the sole licensee and operator.

By applying its heavy oil expertise, Statoil reckons it will achieve base-case recovery of 20% of the estimated 2.3MMbbl of in-place re-serves, more or less double what previous owners were envisaging. Recoverable reserves are estimated at 300-600MMbbl. There are several reasons why it has not yet been possible to establish more exact estimates. The main reservoir which is being developed in the current phase extends over an area of 535 sq km. In the reservoir itself, the thickness and distribution of the sand bodies is uncertain, and some parts are below seismic resolution, so that reliable data will only become available when they are drilled.

Further development looks likely following the discovery of ad-ditional reserves. To a 2007 fi nd on the Peregrino South-West pros-pect, Statoil in April added a promising strike with the Peregrino South exploration well, which discovered a gross 130-m (427-ft) oil column. Appraisal drilling will show if these are commercial.

Further potential has also been identifi ed in the carbonate Macae formation of the main fi eld, which does not form part of the present development. Statoil plans to carry out a long-term production test in the Macae to establish whether it should be brought into perma-nent production.

In 2010, Statoil took on a partner, Sinochem, to which it agreed to sell a 40% interest in the fi eld for $3.1 billion. The deal was com-pleted just after start-up. �

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Who Dat initiates production in GoM

in post-Macondo era

LLOG project features fi rst-ever use of a privately owned FPU

LLOG Exploration Co. L.L.C., operator of the deepwater Who Dat oil and gas fi eld in the Gulf of Mexico, expects produc-tion before year-end, making it the fi rst fl oating production unit (FPU) in the

Gulf of Mexico in the post-Macondo era.Discovered in December 2007, Who Dat

lies beneath an average water depth of 3,200 ft (975 m) in Mississippi Canyon blocks 503, 504, and 547. The fi eld, named after the chant delivered passionately by fans of the New Orleans Saints National Football League team, exhibits 10 stacked reservoirs located at 10,000-17,000 ft (3,048-5,182 m) in Pliocene and Upper Miocene zones.

Three wells – two in MC 503 and one in MC 547 – have been completed, with 10 more infi ll wells to be drilled and completed in the coming months using the Noble Amos Runner

semisubmersible rig. Combined, the three completed wells penetrated seven of the fi eld’s 10 horizons and were completed in mainly oil zones, testing 17° to 26° API crudes with gas/oil ratios (GOR) ranging from 400 to 1,300. Reservoir pressures vary from 6,000 to 12,500 psi, and fl ow tests indicated an open fl ow of 10,000 b/d of oil and 60 MMcf/d of non-asso-ciated natural gas for the three wells alone.

Notable achievements for the Who Dat fi eld also include the fi rst use of the OPTI-EX design; the fi rst use of an FPU built “on spec”; and the fi rst use of a privately owned FPU in the world.

LLOG Exploration, based in Covington, Loui-siana, believes the fi eld holds 300 MMboe.

LLOG managed to cut at least four years off its timeline for bringing fi rst oil and gas production to market from Who Dat by team-ing with Exmar Offshore Co. to use the semi-submersible production platform. Based in Houston, Exmar’s confi dence in the suitabil-ity of their proprietary OPTI-EX design FPU for the deepwater Gulf of Mexico enabled them to build one without a contract – the fi rst such semisubmersible FPU in the indus-try’s history to be built “on spec.”

The OPTI-EX transaction, in which LLOG purchased the semi-based FPU outright for more than $400 million, payable over 62 months, resulted in what is thought to be the fi rst privately owned FPU in the world. What’s more, because the OPTI-EX design

met the suitability and safety rules posed by U.S. Gulf of Mexico regulators, it was the fi rst deepwater FPU to be given the go-ahead by the U.S. Coast Guard, BOEMRE, and other government entities to be installed in the Gulf since the April 2010 Macondo in-cident. The OPTI-EX was moored in MC 547 without incident in mid-July, less than a year after LLOG purchased the system.

According to Exmar, the OPTI-EX’s deep-draft ring pontoon hull has improved motion response in a range of extreme sea states, allowing it to be installed on one of the most onerous areas of the Gulf. The ring pontoon and large ballast capacity also allow for in-stallation of a large number of production and export risers without any internal hull modifi cation.

As built and equipped, the LLOG FPU has a liquid-handling capacity of 60,000 b/d, including facilities for handling up to an ad-ditional 40,000 b/d of water. The unit’s gas dehydration capacity is up to 150 MMcf/d.

According to Nicolas Saverys, Exmar Group CEO, the Exmar team’s second big achievement was matching the hull, fabricat-ed at the Samsung yard in South Korea, with the topsides, fabricated at the Kiewit Off-shore Services shipyard in Ingleside, Texas.

The LLOG exploration team, most with years of both shelf and deepwater experience with other companies, has taken advantage of both their combined experience and of

the company’s $150-200 million inventory of seismic data that covers virtually the entire Gulf. With access to its volume of the detailed geophysical and geological information, the LLOG exploration team has generated more than 300 prospects in the Gulf, with a nearly 70% success rate.

Broussard, Louisiana-based mooring con-tractor Delmar Systems Inc. completed preset mooring systems installation and facility con-nection operations for the Mississippi Canyon 547 “A” fl oating production facility in August.

Delmar provided project engineering for anchor/mooring system design, fabrication oversight, installation engineering, operation procedures, and installation services for the facility. In addition, Delmar says it procured, marshaled, and stored the 12-leg suction an-chor, chain, polyester, chain mooring system at Delmar’s 11-acre Fourchon dockside facil-ity. The mooring legs were connected to the pre-installed suction anchors using Delmar’s patented subsea mooring connector.

Once on location, Delmar connected the preset moorings using two conventional AHVs (anchor handling vessels) and supported by a fi eld ROV support vessel. Facility connections were completed in seven days.

Various subcontractors are engaged in hooking it up to the Who Dat seafl oor layout, which features two well centers, “A” and “E,” in MC 503. Designed by Pinnacle Engineer-ing, both well centers are about 12 mi (19 km) from the FPU, with dual 6-in., round-trip piggable insulated fl owlines connecting them to the FPU. One well center features two four-slot manifolds connected in series to allow for tiebacks from eight wells. A single four-slot manifold services the other well center. All well center fl owlines, as well as both oil and gas export pipelines, are connected by fl ex-ible risers to the OPTI-EX.

A 5,000-ft (1,524 m), 11.5-in. fl exible riser from the OPTI-EX connects to a 19-mile (31-km), 14-in. heavy wall thickness oil export pipeline that ties into Shell’s Mars pipeline system. For gas export, the OPTI-EX is con-nected via a 9.5-in. fl exible riser to a 17-mile (27-km), 10-in. pipeline connecting to the Independence Trail pipeline, operated by Enterprise Field Services. �

Jessica TippeeAssistant Editor

Moored in MC 547, LLOG Exploration’s Who Dat

field semisubmersible production unit, OPTI-EX,

has 60,000-b/d, 150-MMcf/d oil and gas handling

capacity. Photo courtesy LLOG.

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GALVESTON, TEXAS USA

MARCH 6-8, 2012

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NOV 6-8, 2012

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JAN 24-26, 2012

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O F F S H O R E W E S T A F R I C A

Detailed study leads Repsol

to offshore West Africa

Dramatic changes in the global econo-my, and specifi cally the oil and gas in-dustry, have led to a greater interest in development of new upstream re-sources. As a result of many of these

sweeping changes, Repsol chose to pursue a greater presence in the West African region throughout 2011.

At the beginning of 2003, the majority of exploration and production news out of Africa was concerned with the competition between oil and gas majors and their ability to expand their asset portfolios in deepwater offshore areas. This drive focused initially on Nigeria and Angola, and then came renewed interest in countries such as Gabon and Congo, plac-es considered newly mature for exploration. The discovery of large deposits in deepwater offshore from Mauritania seemed to indicate the emergence of a new oil province in the African-Atlantic margin.

Repsol needed to fi nd new reserves to replace its maturing fi elds, especially those in Argentina. For Repsol, the inherent dif-fi culty in fi nding replacement resources for its Argentinian fi elds was the need to fi nd an innovative strategy to avoid competing fi nancially with other oil and gas majors, yet not compromise production.

Repsol approached this new challenge by posing two questions:

• What would be the new hot area for ex-ploration?

• Which markets would be the least com-petitive to enter while also providing the greatest potential for oil?

For Repsol, the answers were found using documented evidentiary research.

First, Repsol began to build an extensive seismic database spanning tens of thousands of kilometers covering the Atlantic region of Africa, from Ceuta to Cape Town. This database then was cross referenced with hundreds of potential wells. After more than a year of painstaking work, the West Africa New Venture Department began to highlight some promising areas for further study.

These results helped push Repsol in the right direction, but they also highlighted a pressing problem: The data presented tech-nical risks and from the initial impressions, the possibility of success seemed unlikely.

Although the data were discouraging, Repsol did have valuable experience with

risky, ultra-deep offshore extraction. The company already was looking into promis-ing but risky locations in the Brazilian ultra-deep offshore margin. The true challenge was to balance the need for greater explora-tion and development without overstretch-ing Repsol’s capabilities.

Repsol realized it needed to introduce an-other parameter to its screening of potential opportunities. Specifi cally, this meant ex-ploring and understanding the types of con-tracts Repsol was eligible to sign in order to begin exploratory work. Economists from the planning department joined the project in an attempt to identify specifi c areas where contractual terms would allow the company to maximize its rewards if successful but to mitigate the impact of unavoidable failures.

With the remaining selection of deep off-shore basins, Repsol ultimately decided the most intriguing were those between Benin and Senegal. In part, these areas revealed a much greater potential than some oth-ers. Most importantly, however, the area between Benin and Senegal was chosen be-cause there were no other oil majors operat-ing within that area. This allowed Repsol to balance its opportunities with the potential downside risks that direct competition with

other oil majors would bring.During the fi rst half of the 20th century,

many areas offshore West Africa already were explored extensively, beginning with the fi rst discoveries along the coast of Nige-ria. This exploration was successful in the Tertiary and Mesozoic series; specifi cally, successful opportunities were identifi ed in the passive regions characterized by active salt tectonics (as existed in Angola, Congo, and Gabon) and in the Tertiary series of pas-sive regions associated with the development of large deltaic systems (which was the case in Nigeria, Cameroon, and Equatorial Guin-ea, in addition to the Congo and Angola).

However, the Equatorial Atlantic region be-tween Benin and Senegal, which is connected to the transfer zone between the northward propagating tip of the South Atlantic and the southward propagating tip of the Central At-lantic, had been explored for several decades with disappointing results. In fact, the Lower Cretaceous region showed poor reservoir properties and the quantities of hydrocar-bons discovered were extraordinarily small.

The Baobab fi eld, discovered in Ivorian deep water in 2002, was a notable exception. Seismic data showed Canadian Natural Re-sources had drilled the largest structure ly-

Stefano MoraRoger Baudino

Repsol

The West Africa margin area investigated by Repsol.

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The Offshore Pioneers

will be inducted into the

Offshore Energy Center’s

Hall of Fame

in September of 2012

Call For Nominationsof Offshore Pioneers

For the 2012 Hall of Fame

recognizes important achievements of individuals

who are recognized leaders in the offshore energy

industry.

recognizes important technologies by individuals,

companies, organizations or institutions.

To receive a nominating package, please contact the

Offshore Energy Center at 281.679.8040,

email [email protected] or log on to

www.oceanstaroec.com and download the forms.

Hugh Elkins - Chairman, Hall of Fame Committee

Technology Pioneers Award

Industry Pioneers Award

is currently calling for nominations of Industry

Pioneers and Pioneering Technologies for induction

into the Hall of Fame. For 2012, the committee would

like to place an emphasis on receiving nominations for

the individuals who formed some of the foundations

for the offshore industry's technology and/or were

corporate leaders, preferably before 1985 including

overseas developments.

The Offshore Energy CenterHelp us honor those

that made our industry

what it is today.

Nominations CloseDecember 31, 2011

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ing along the equatorial margin.In other words, the discoveries in the margin exhibited relatively

poor reservoirs, small structural closures, and undefi ned source rocks. The seismic data interpretation showed a relative abundance of well developed turbiditic systems across all of the mid- and upper-Cretaceous section. The main trapping mechanism was, of course, stratigraphic, but seal and pressure studies demonstrated the shales were able to seal relatively large columns of hydrocarbons.

The other main uncertainties included reservoir quality (espe-cially permeability), and the effects of source rocks and migration.

Although Baobab-1 illustrated that a working petroleum system could exist, a deeper understanding of the stratigraphic position and the typology of source rocks was crucial to defi ning an exploration strategy. As a result, it was important to ascertain whether all com-ponents of the existing petroleum system were operating effi ciently, including source rocks, reservoirs, seals, and traps, in order to gen-erate and contain suffi cient volumes of oil.

A basin modeling exercise was performed to better assess the pe-troleum system in this area. Thermal and maturity data for calibration were, as usual, scarce in such a frontier area. Thermal gradient fi nd-ings showed a variation between 31º and 36º C/km (88º and 97º F/0.6 mi). While illuminating, these fi ndings could not be used as a con-stant. The largely unexplored environment required Repsol to apply its understanding of global dynamics by analyzing plate tectonics and earth structure. Indeed, the regional nature of a rift basin evolving into a passive margin implies huge variations of the thermal gradient through space and time. Ultimately, Repsol decided to apply a heat fl ow at the base of the sediment which helped clarify these variations.

Closer to the coastline, on a stable non-stretched continental crust, temperature and maturity data could be calibrated using a constant heat fl ow over time. However, the ability to maintain con-stant heat fl ow became impossible. Instead, a rifting heat fl ow was applied, characterized by a peak during stretching and a progressive cooling in line with the existing McKenzie and Royden models.

The fi ndings concluded that large areas of several source inter-vals actually had suffi cient maturity to generate gas, as well as large volumes of oil, around the Equatorial West African margin.

From the seismic stratigraphy interpretation and attribute analy-sis, Repsol mapped the sedimentary assemblage of the turbiditic systems. The results showed several interesting prospects. Howev-

An example of 3D geochemical modeling, showing the levels of maturities

along the transform Atlantic margin of Equatorial Africa.

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er, the study of subsurface analogues showed that at similar depths for the same reservoir facies, the porosity values could vary from 3% to 25% due to diagenetic processes.

These results revealed the greatest uncertainty about this project: Repsol was confi dent regarding the presence of oil, but less so about whether the reservoirs were adequate.

Repsol then attempted to model the diagenetic processes fol-lowing a detailed petrologic study coupled with temperature and fl uid-fl ow information produced by the petroleum system model. Al-though this improved the understanding of diagenetic alteration, it did not develop any predictive results.

Uncertainty remained. Repsol could not adequately predict the quality of the reservoir nor assess its ability to store and produce liquid hydrocarbons. This is not uncommon when diagenetic pro-cesses are concerned, especially since they are controlled by many factors that can vary greatly even over small distances (compactions, grain size, grain composition, type of circulating fl uids, hydrother-mal events, volcanic events, etc.).

It is rare, however, for an oil company not to drill when it believes a reservoir exists.

Although oil companies ought to make decisions based on the high-est standards and analytic techniques, this case study illustrates that some parameters always remain beyond control. The gap between what explorers can control and what they can actually analyze explains why many oil companies take a leap of faith to pursue an aggressive explora-tion strategy. It is this strategy that leads to innovative methods of explo-ration and the discovery of new sources of oil previously out of reach.

How do an aggressive exploration strategy and a rigorous techni-cal analysis help to build new sources for consistent future develop-ment?

In 2004, the maps of concessions in the Equatorial Atlantic margin offshore of Africa show Repsol as the only oil major holding explora-tion permits. Woodside also held a block in Liberia, but a majority of the area was dominated by small African fi rms and a handful of other small companies focused entirely on exploration.

How and why did this change?Repsol’s exploration strategy acted as a catalyst, triggering the in-

dustry’s shift to focus on offshore West Africa. The latest update of oil and gas maps of West Equatorial Africa shows that Kosmos and its partners have produced the fi rst oil from Jubilee, while Repsol and its partners have made the Venus and Mercury discoveries. In other words, these maps show that oil majors now have a signifi cant presence in the region, and have several appraisal and exploration wells planned for the next few years.

The systemic uncertainties involved with oil and gas exploration, especially in deepwater offshore, can make explorers unsure of their strategies. However, pioneering exploration coupled with risk mitigating geological analyses can help minimize the uncertainty in-volved with attempting to explore and cultivate new sources of oil. �

The authorsStefano Mora serves as new venture manager for Africa at Repsol.

He joined the company in 2007. Previously, Mora spent nearly

15 years at Total. His oil and gas industry experience is in basin

analysis and his main research interests include tectonics and

sedimentation, seismic and basin modelization. He received his

MSc and PhD from Parma University, Italy.

Roger Baudino is a senior exploration geologist and works as a se-

nior advisor in the geology disciplines group at Repsol. He has a PhD

in sedimentary basins geodynamics and structural geology from the

University of Pau (France). He has been involved in numerous proj-

ects around the world, mainly in Latin America. He joined Repsol-

YPF in 2003. He earned a BSc from Nice University (France), and

both a MSc and PhD from Pau University (France).

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Offshore West Africa returns to Nigeria

This year’s theme is ‘Deepwater Technologies for West Africa’

Offshore West Africa, the region’s premier technical forum focused exclusively on West Africa’s offshore oil and gas in-dustry is scheduled for Jan. 24-26, 2012, at the International Conference Centre in Abuja, Nigeria.

The Offshore West Africa Conference and Exhibition pro-vides an annual forum that addresses the technical, environmental, and business challenges associated with the oil and gas exploration and production industry within West Africa. With the full support of the Nigerian National Petroleum Corp. (NNPC), the conference pro-vides a unique networking opportunity for attendees to share tech-nology and address issues with experts in their respective fi elds.

For the 16th edition, the conference program will consist of two and one-half days of two concurrent tracks of technical sessions. The sessions will focus on topics such as subsea technology, well construction and drilling operations, fi eld development, fl oating production, fl owlines and pipelines, geosciences, and local content, based around the conference theme of “Deepwater Technologies for West Africa.”

The conference and exhibition offi cially opens on Tuesday, Jan. 24. Nigeria’s distinguished Honorable Minister of Petroleum Re-sources Mrs. Diezani Alison-Madueke has been invited to deliver the keynote address.

Formatted as an extension to the opening plenary, an Operators’ Perspectives session comprises senior managers from some of the top international operating companies in the region. Among those invited to participate include BP, Shell, ExxonMobil, Tullow Oil, and Total.

Tuesday SessionsSession 1 begins at 17:00.Track 1, Local Content 1, will be chaired by Nosa Omorodion,

Schlumberger; and Simbi Wabote, SNEPCo (invited).Presentations include:• Boosting Participation of Indigenous Firms in Drilling and

Completion for Nigerian Deepwater Development: USAN Deep-water Development Experience, Eng. Jude Atebe, TOTAL E&P

• Building Local Capability: SNEPCO Deepwater Pipelines Sys-tems, Engr. Daniel Adebola, SNEPCo.

Track 2, Subsea Technology 1, will be chaired by Monday Ota-bor, Addax Petroleum (invited); and Philippe Bonneau, Technip.

Presentations include:• Wet Park of Subsea Well Jumpers, Chiwuike Amaechi, SNEPCo.• Autonomous Shutdown Valve for Subsea PLEM Valves, Brian

Ennever, Paladon Systems.

Wednesday sessionsSession 2 begins at 9:30.Track 1, Well Construction and Drilling Operations 1, will be

chaired by James Ibe, Mobil Producing Nigeria, subsidiary of Exx-onMobil; and Anthony Abolarin, Total E&P Nigeria.

Presentations include:• Systematic Approach Used to Optimize Frac-Pack Completions

in Multilayer and Low Stress Contrast Environment Encoun-tered in the Usan Field, Martin Prada, Chevron

• Deepwater Intelligent Well Completion: Case Study of an In-

New awards programOffshore West Africa has announced the inclusion of the

Offshore West Africa Awards within the 2012 conference and exhibition.

The Offshore West Africa 2012 Awards include individual, corporate, technology and academia awards, and will be pre-sented at Offshore West Africa on the final day of the confer-ence and exhibition. Winners will also be announced on the Offshore West Africa website and within Offshore magazine.

The Academia Award is for individuals or institutions within academia who have contributed to the offshore indus-try, by providing solutions, reports, case studies, and techno-logical advancements within West Africa.

For the Corporate Award, the company must demonstrate a unique or significant achievement in West Africa. Categories include, but are not limited to, services related to the design, construction, and installation of drilling and production facili-ties and equipment; project execution; leadership; community service; development of young professionals; resolution of challenges; and special consideration to health, safety, and environment.

The Individual Award is one where a candidate must demonstrate a unique or significant achievement in West Africa. Categories include, but are not limited to, services related to the design, construction, and installation of drilling and production facilities and equipment; project execution; leadership; community service; development of young profes-sionals; resolution of challenges; and special consideration to health, safety, and environment.

The Technology Award will be judged in four main areas. These include well construction and drilling operations, subsea technology, floating production systems, and flowlines and pipelines. To be considered for this award, the nominated technology must meet four key criteria, which are that it must be new and innovative, proven, health, safety and environ-mentally conscious, and must be relevant to the West African region.

OWA 2011 in Accra, Ghana, attracted more than 1,100 attendees from 37

countries.

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stallation Failure in Usan Project, Unwana Bassey, Total E&P Nigeria.

Track 2, Field Development 1, will be chaired by Francis Alabo Ogaree, Nigerian National Petroleum Corp.; and Leonard Quarcoo-pome, Tullow Oil Ghana Ltd.

Presentations include:• Mitigating Development Risks in Deepwater Projects Through

Production, Engr. O. J. Okwudiri Uzoh, SNEPCo.• The Failure and the Emergency Repair of an FPSO Mooring

System, Omotunde Akinwale, SNEPCo.Session 3 begins at 11:30.Track 1, Geosciences, will be chaired by Engr. I. G. Okafor, Ni-

gerian Petroleum Development Co. (invited); and James Ibe, Mobil Producing Nigeria, subsidiary of ExxonMobil.

Presentations include:• Integrated Reservoir Modeling of Bonga SouthWest/Aparo 692

Reservoir, Peter Obidike, SNEPCo.• Multi-Resolution Analysis of Seismic Data Using Continuous

Wavelet Transforms: A Case Study from Niger Delta Nigeria, Dr. Adekunle Abraham Adepelumi, Obafemi Awolowo Univer-sity.

Track 2, Subsea Technology 2, will be chaired by Theo Ahwi-reng, Ghana National Petroleum Corp.; and Rajan Batra, Chevron International Exploration & Production.

Presentations include:• Maximizing Field Tieback Opportunities, John Shaw, First Sub-

sea• Subsea Wellhead Capping Deployment During an Intervention

on a USAN Well Development, Jerome Lucas, TOTAL.Session 4 begins at 14:00.

Track 1, Local Content 2, will be chaired by Sammy Ojigbo, Ni-gerian National Petroleum Corp.

Presentations include:• Local Content Development – Closing Opportunity Gaps, Akin

Osuntoki, Richardson Oil and Gas Ltd.• Nigerian Content Act and the Insurance Industry: One Year Af-

ter, Adekunle Ahmed, Guaranty Trust Assurance Plc.Track 2, Flowlines and Pipelines, will be chaired by Akin Odu-

makinde, DeltaAfrik (invited); and Richard Taylor, DNV.• How Advances in Diverless Pipeline Repair Technology Made

it Possible for an Operator to Save Field Development Costs, Edgar Keijser, Oil States Industries Inc.

• Dead Leg Management, Emhodumhe Ikhenebome, National Engineering and Tech Co. (Subsidiary of NNPC).

Session 5 begins at 16:00.Track 1, Well Construction and Drilling Operations 2, will be

chaired by Cletus Egbuzie, ExxonMobil Corp.; and Pierre Nouama, PETROCI.

Presentations include:• Expandable Liner Hanger Technology Provides Increased By-

Pass Area and Reduces Equivalent Circulation Density During Installation: Case Histories, Daniel De Clute-Melançon, Halli-burton

• Coring Point Selection Using ‘Resistivity at Bit’ Technology: A West Africa Successful Case History, Luca Magini, ENI Ghana E&P Ltd.

Track 2, Field Development 2, will be chaired by Adeyemi Su-ara, Shell Nigeria Exploration and Production Co. Ltd.; and Akin Os-untoki, Richardson Oil & Gas Ltd.

Presentations include:

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Thursday panel discussionRegional Local Content starts at 9:30, and will be moderated by

Ernest Nwapa, executive secretary, Nigerian Content Development and Monitoring Board. Panelists include Zenith Bank, invited; An-drew Badoo, director of administration, Ghana National Petroleum Corp., invited; and Emeka Ene, vice president, Petroleum Technol-ogy Association of Nigeria (PETAN).

Concluding programThe conference program concludes at 12:00 on Thursday with

the Conference Chairman’s Closing Remarks presented by Francis Alabo Ogaree, general manager, International Venture Opportuni-ties, Nigerian National Petroleum Corp., followed by the Awards Ceremony and Closing Remarks, presented by David Paganie, con-ference director, PennWell Corp.

ExhibitorsExpected exhibitors include: Asbury International Ltd., Atlantic

Bluewater Services Ltd., Belzona Polymerics Ltd., Damagix Group, Dantussynergyn Oil Ghana Ltd., EMS Ship Supply & Seven Seas Shipchandlers, EPIC Atlantic, FLIR Systems, Furmanite, Geoplex, Halliburton, Hull Inspections/Hull Engineering, Hydratight Ltd, In-terspiro AB, Kamag Transporttecknik GMBH & Co. KG, Kay Global Ltd., Makon Engineering & Technical Services Ltd., Mansfi eld En-ergy, Modec Inc., Nestoil, Nicolas Industrie S.A.S., Nigerian Society

of Engineers, NOV ASEP Elmar-UK, OCO, Oil and Gas Freezone Authority, Oil Review Africa, Oilserv Nigeria Ltd., Oiltest, Petroleum Technology Association of Nigeria (PETAN), Petrolog, Pipeline Pro-fessionals Association of Nigeria, Q-SHE Ltd., Radial Circle Group, Redwise Maritime Services B.V., Richardson Oil & Gas, Ropetec, Scheuerle Fahrzeugfabrik GMBH, Senacare, Shell Nigeria E&P, SPX Hydraulic Technologies, Tecon Oil Services Ltd., Tilone Sub-sea Ltd., TOTAL, Wachs Subsea, LLC, and Weafri Well Services Ltd.

Media sponsors include: Offshore, Oil & Gas Journal, Oil & Gas Fi-

nancial Journal, Oil, Gas & Petrochem Equipment, and PennEnergy.For additional information or to register for the conference, please

visit the website at http://www.offshorewestafrica.com/index.html. �

Theo Ahwireng, manager geophysics, Ghana National Petroleum Corp.

and 2011 advisory board chairman, greets attendees.

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16TH EDITION

CONFERENCE & EXHIBITION

24 - 26 JANUARY 2012

INTERNATIONAL CONFERENCE CENTRE

ABUJA, NIGERIA

Register To Attend Now And

Save 40% With Our Early Bird Offer*

The 16th annual Offshore West Africa Conference & Exhibition will be held in Abuja, Nigeria at the International Conference Centre on

24 – 26 January 2012. Offshore West Africa is the premier technical forum focused exclusively on West African offshore exploration

and production. The conference delivers the latest technological innovations, solutions and lessons learned from leading industry

professionals, plus:

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NIGERIAN NATIONAL PETROLEUM CORPORATION

Europe, Africa & Middle East:

Jane Bailey

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P E T R O B R A S I N T E R V I E W

Innovation and investment propel

Petrobras toward deeper waters

President/CEO José Sergio Gabrielli de Azevedo

offers insight into company’s plans

Petrobras estimates that Brazil’s presalt reserves contain about 50 Bboe – enough to turn the country into one of the world’s top oil producers in this coming decade. To realize these goals, the company is moving into deeper waters and placing produc-tion equipment onto the seabed, including the latest subsea

processing, separation, boosting, and gas compression technologies. By the end of this year, some of the world’s most innovative subsea

technology will be tested in the Marlim fi eld, Campos basin, with the world’s “fi rst” deepwater (postsalt) subsea oil/gas/water and sand separation system. In this test, Petrobras expects to enhance oil re-covery by reinjecting water into the reservoir to boost production in the mature fi eld. This would open the way to reducing the weight of fl oating production facilities. When visiting the Petrobras R&D center (Cenpes) in Rio de Janeiro Cenpes, one sees a dome featur-ing two rooms where operations personnel can manage unmanned platforms via computer, with the aid of huge 3D display screens.

José Sergio Gabrielli de Azevedo has achieved great success as Petrobras CEO, most notably in leading efforts to enable Brazil to realize petroleum self-suffi ciency; and in the discovery and produc-tion of massive quantities of oil and gas in ultra-deepwaters below 2,000 m (6,561 ft) at the presalt.

The company’s oil production rose to 2 MMb/d in 2010 from 1.7 MMb/d in 2003, when Gabrielli was appointed president, a growth of 17%. Oil and gas reserves increased 30% during the same period from 11.6 Bbbl in 2003 to 15 Bbbl at present.

Net profi ts rose to $19.184 billion in 2010 from $6.599 billion in 2003. Petrobras plans to spend almost $107,000 a minute over the next four years as part of its immense and recently modifi ed spending plan.

In this exclusive interview with Offshore, Gabrielli describes the company’s efforts to advance these plans, and how it is working to become one of the world’s major oil exporting countries.

•••Offshore: Your most recent investment plan calls for $224.7 bil-

lion to be spent through 2015. What is the forecasted production increase in Brazil by 2020 and how much will be in the presalt? How much do you expect your reserves to grow in this period?

Gabrielli: Petrobras’ total production planned for 2020 is 6,418,000 boe/d, including fi elds located in countries where the company has operations. Of this total, 1,993,000 bbl will come from the presalt re-gion, including areas acquired under the transfer of rights agreement.

At present, we do not know to what extent the presalt discoveries will increase our reserves, since this depends on the ongoing explo-ration activities. However, based only on what we already know, we can say that Brazil’s reserves, currently standing at around 15 Bbbl, are expected to double.

Offshore: How much are you investing in your R&D center in Rio de Janeiro, and what are the main areas of research in this center? What is Petrobras doing to train and increase the availability of man-power in the industry?

Gabrielli: In addition to our Research and Development Center, Petrobras’ technological management involves all of our operating bodies, universities and research institutions in Brazil, international research institutions, as well as global oil companies and suppliers. Our 2011-2015 Business Plan calls for approximately $1.3 billion in investments in technology per year. We have hundreds of research groups working in Brazil to address the key issues, not only in all oil, gas, biofuel and energy industry activities, but also in environ-mental preservation. There are 50 thematic networks involving 80 institutions and average annual investments of $270 billion. These

Peter Howard WertheimContributing Editor

Born in Salvador, capital of Bahia state, Petrobras president and CEO José Sergio Gabrielli de Azevedo graduated with bachelor’s degree in economics from Universidade Federal da Bahia, where he also received a masters degree in fiscal incentives and regional development. He obtained a PhD in economics from Boston University with a dissertation on the financing of the Brazilian public sector companies from 1975 to 1979. From 2000 to 2001, he was a visiting research scholar at the London School of Economics and Political Science.

Gabrielli has been the chief executive officer of Petroleo

Brasileiro (Petrobras) since July 22, 2005, and serves as its president and member of the executive board. Gabrielli also serves as president of Petrobras America Inc.

Prior to that, he served as the chief financial officer and investor relations officer of Petrobras from Jan. 31, 2003, to July 21, 2005, where he was respon-sible for the executive management of accounting, corporate finance and treasury, project finance, investor rela-tions, tax administration and financial planning and risk management. He has

published several articles and books on productive restructuring, the labor market, macroeconomics and regional development.

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www.offshore-mag.com • December 2011 Offshore 51


networks have enabled the implementation of world class laboratories and the training of researchers.

One of the biggest challenges our industry faces is manpower qualifi cation. Petrobras is the primary supporter of the National Profes-sional Qualifi cation Plan developed by the National Oil and Natural Gas Industry Mobi-lization Program (Prominp). This program is expected to qualify around 213,000 people to work in 185 categories of the industry’s sup-ply chain. Of this total, about 70% are at the primary and secondary levels, which com-prise the supply chain’s greatest needs.

We are increasing Petrobras’ staff, which is expected to grow from the current 61,000 workers to 74,400 employees in 2015, not including subsidiaries. We have held selec-tion processes each year, always with many more candidates than openings. For the se-lection process currently in progress, there are 174,000 registered candidates to fi ll 590 positions nationwide and to form a reserve reference fi le.

Offshore: How much are you investing in offshore safety and health as well as envi-ronmental protection? What measures were taken to tackle these issues?

Gabrielli: Petrobras has a robust and rig-orous policy for issues related to equipment and personnel training. All procedures are in full compliance with the requirements set forth by the regulators that oversee our mari-time operations, including the navy, ANP, and

IBAMA, among others. Pursuant to the most advanced internation-

al standards, the company has installed nine EDCs (environmental defense centers) in Bra-zil, the goal of which is to ensure maximum protection for its operating units in the event of an emergency. The EDCs complement the existing local contingency plans in force at the terminals, refi neries, and other company operating units. They are equipped with col-lector vessels, barges, chemical dispersants, bioremediation agents, and up to 20,000 linear meters of oil containment and absorption bar-riers, which can be moved quickly to address an emergency anywhere in the country.

All of the staff working on the platforms is accredited by the International Associa-tion of Drilling Contractors. Internal well safety training has been provided since 1971. A well closure drill, which measures both team and equipment response times, has also been addressed by an internal pro-cedure. There are also emergency plans for oil spills in place for all Brazilian oil basins.

Offshore: Petrobras is increasing its pro-duction faster than any oil company in the world. What role will Brazil’s regulatory mod-el play in the development of the new presalt discoveries? Why was this model modifi ed for the presalt? Do you believe that Petrobras should operate all presalt fi elds alone?

Gabrielli: Brazil has a privileged position. We have a huge consumer market; a diver-sifi ed energy matrix; a solid and growing

industry; leading oilfi eld technology, particu-larly with regard to offshore activity; and in-stitutional, economic and legal stability. From what we already know about the presalt, we can say that the exploration risk is low and productivity is very high. Under the produc-tion sharing system adopted for the presalt reserves, contractors bear the exploration risks and will only be refunded if they make commercial discoveries. Payments will be made in oil. The remaining production will be divided between the government and the contractors. Petrobras is a leading deepwater operator, holding 22% of the areas this hori-zon worldwide; and we have the technology and technical teams with extensive experi-ence in offshore exploration and production. All this places Petrobras in an excellent po-sition to successfully operate in the presalt region, where it already produces 130,000 bbl/d.

Offshore: How do you compare what is happening in Brazil with other oil booms, such as North Sea during the ‘70s? What les-sons did Brazil learn from the experience in other countries?

Gabrielli: One of our concerns is to avoid the phenomenon that became known as the “Dutch disease.” [Editor’s note: The “Dutch

disease” refers to the deindustrialization of a na-

tion’s economy that occurs when the discovery of

a natural resource raises the value of that na-

tion’s currency, making manufactured goods

less competitive with other nations, increasing

Comparison between Petrobras’ fi gures for 2003 and 2010/2011.

2011 2003

Petrobras’ oil and gas reserves in barrel equivalents in Brazil and abroad (SPE criterion) 16 billion 10.5 billion

Average daily oil and gas output in barrel equivalents (Brazil and abroad) 2.6 million 1.8 million

Average output of oil alone in bbl/d in Brazil (average of year) 2 million 1.5 million

Average oil and gas output abroad in barrel equivalents 240,000 59,000

Average daily production only of oil in barrels/day – abroad 150 mil 35.2 mil

Average daily natural gas output in millions of cubic meters – in Brazil 55 million 44 million

Average daily natural gas output in millions of cubic meters – abroad 15 million 3.8 million

Average natural gas output in millions of cu m/d in Brazil and abroad 56 million 44 million

Producing wells operating in Brazil and abroad 14,000 9,800

Number of drilling rigs in operation (onshore and offshore) 120 31

Production platforms in operation 134 96

Own and chartered oil tankers 190 115

Terminals operating in Brazil 66 43

Refineries in Brazil and abroad 15 14

Biodiesel plants (including experimental) 5 0

Installed refining capacity in bbl/d in Brazil and abroad 2.223 million 2.021 million

Oil and oil product exports in barrels per day 712,000 b/d 439,000 b/d

Net income R$35.2 billion (2010) R$8 billion

Net operating income R$213 billion (2010) R$69.2 billion

Economic contribution to the country R$65 billion (2010) R$43 billion

Total investments R$76.4 billion (2010) R$11 billion

Payment of royalties and holdings R$20.3 billion 2010) R$5.9 billion

Number of Petrobras’ own employees 80,000 46,700

Source:Petrobras

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imports and decreasing exports. The term origi-

nated in Holland after the discovery of North Sea

gas.] Among other initiatives, we are making efforts to increase the local content in our hiring, driving the growth of the entire pro-duction chain, and motivating international companies to come to Brazil in association with Brazilian companies. And we have been quite successful in this. Brazil is already building production platforms equipped with 75% domestic content at terms and pric-es consistent with those practiced abroad.

Offshore: The presalt fi elds are rather distant from the coast (around 350 km/218 mi). What is Petrobras doing to maintain ter-minals onshore and overcome the logistical challenges in these operations? Where will the best opportunities for suppliers be? What were the largest operational diffi culties found in the presalt and what is the break even cost for petroleum in the presalt?

Gabrielli: Much progress has been made in recent years, allowing not only for stable drilling through the layer of salt, but also re-ducing well drilling time and investments. It is all a matter of technology. For example, the fi rst well Petrobras drilled in this presalt section took more than a year and cost $240 million to be completed. The most recent wells Petrobras drilled there took 60 days and cost, on average, $66 million.

This was possible for several reasons: learn-ing that took place in well drilling in order to cut through the 2,000-m thick salt section; improvements in well lining specifi cations; advances in drilling fl uid quality; enhanced well geometry design; better drill bit specifi -cations; and progress achieved from chemical analysis performed at the research center and by Petrobras’ well engineering group.

The lifting costs are also lower in the pre-salt region now due to the volume of produc-tion. The well that is connected to the Lula pilot produces 36,000 b/d. The presalt lifting cost is lower. All separation and injection units that are currently on the surface will be installed on the seabed. With fewer peo-ple on board, logistics will also be optimized.

Offshore: Could you give us more informa-tion about the $13.6 billion divestment plan? What shares are you selling in some of your assets? What interests do you forecast in these assets, mainly in Brazil? What E&P as-sets in Brazil are you planning to sell?

Gabrielli: Divestments are commonplace in many companies. Petrobras’ divestments are relatively minor considering the size of the investment, and half of them are fi nan-cial. Half are adjustments of receivables. A lot of this has been facilitated with the es-tablishment of Progredir, a program that in-volves the six largest Brazilian commercial

banks. It can offer Petrobras suppliers – and the suppliers’ suppliers – money for less than the market can pay, because they are assured that Petrobras will pay. It is hoped that Progredir will replace the company in the payments of the intermediate phases, freeing resources. Another way is the series of cash collaterals. We can substitute this guarantee for insurance, bank guarantees, and free resources. All of this will add up to half of the $13 billion set out in our business plan. Asset sales, meanwhile, will account for the other half of the $13 billion.

Offshore: Are you worried about increas-ing costs caused by the requirements of local content in Brazil? How many ships, FPSOs, and drilling rigs you plan to build and how many will be built in Brazil? What are you do-ing to minimize your costs with distribution?

Gabrielli: We have already commissioned the construction of seven drilling rigs, of a total of 28 to be built in Brazil, in addition to 30 other ones that will come from abroad. In Brazil, we have also already ordered seven hulls for FPSOs that will operate in the pre-salt region. We are calling them “replicants.” The reason for this is that they have the same design and will serve as the basis for the construction of the other systems that are needed to undertake all of the opera-tions in the presalt area.

At a fi rst stage, we are using a combina-tion of existing technologies that we have already mastered and improved. At a second one, we will use new technologies, with em-phasis on reducing equipment weight and size, increasing automation on the surface, and enhancing underwater production and fl uid separation systems.

With respect to logistics, we currently have a fl eet of 287 support vessels and ex-pect to have 568 by 2020. We will use sup-ply distribution hubs for fuel, drilling fl uids, and other products and materials that are used on a large scale on platforms. They will be installed at strategic points between the coast and the presalt cluster. Unprecedent-ed in the industry, these centers will reduce costs and minimize environmental risks. We are also developing similar solutions for pas-senger transportation to increase transport speed and safety, and to reduce costs.

Offshore: Can you tell us what Petrobras is doing to support its supply chain? How do you fi nance your suppliers with working capital, and what investments have you un-dertaken in the supply chain? How are you going to diversify your suppliers?

Gabrielli: Petrobras supports its network of suppliers in several ways. These include the provision of professional training; structuring funding mechanisms; improved supply chain

management; facilitating partnerships be-tween Brazilian and foreign technology base companies; and encouraging the insertion of small and midsize enterprises in the indus-try’s production network. We also undertake actions that facilitate funding, especially the Progredir program, which enables the supply of credit at a volume and under competitive conditions to companies operating in the sup-ply chain. The suppliers’ cost of borrowing is expected to decrease by an average of 20%. The evolution of our goods and services sup-plier reference fi le, which currently adds up to more than 5,500 companies, also stands out in our internal procedures. The reference fi le also encourages companies to improve their management practices.

Offshore: How can Brazilian fi nancial and capital markets be developed to make avail-able new fi nancial instruments and more insurance capacity in Brazil? What is Petro-bras doing to help develop fi nancial and ser-vices markets in Brazil?

Gabrielli: As mentioned, Progredir is an important program to develop the market, since it increases industrial competitiveness and provides more local content. Progredir aims to facilitate, in a quick, standardized manner, the supply of credit at a reduced cost to all companies in the Petrobras supply chain. More than 250,000 businesses are cur-rently part of this chain, which enhances the potential of the initiative. In order to improve fi nancial and risk conditions, Petrobras is the anchor of Progredir, contributing with the company’s entire production chain by trans-ferring to the participants its better credit perception in the market.

Offshore: Petrobras plays a fundamental role in Brazil’s economy and has a great im-pact over infl ation rates, trade balance, and the currency. As Petrobras president, how do you balance the interests of your main shareholder – the government – with the need to increase investments? What are the diffi culties of aligning Petrobras interests, government, and minority shareholders?

Gabrielli: Despite the apparent ambiguity – being controlled by the government and hav-ing private shareholders – we have no diffi cul-ties making this alignment because the goals are convergent. We do not need government investments for our investment programs and have achieved highly positive fi nancial results over the years. In 2010, for example, we posted record profi t, and in the fi rst half of 2011 we achieved a net income 37% up on 2010. �

The author Peter Howard Wertheim is Offshore’s Contributing

Editor based in Rio de Janeiro. He can be reached at:

[email protected].

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http://www.arcweb.com/res/forumorl






G E O L O G Y & G E O P H Y S I C S

Data management in a multi-platform age

Clash of storage requirements calls for long-term approach

Energy companies generate digital in-formation at an unprecedented pace at all stages of exploration and pro-duction. Different stages of that life cycle benefi t from varying degrees of

structured data management, but there is no single solution that encompasses all the data from all sources and for all disciplines. As the many parties that manage and con-sume data come to realize, the one-size-fi ts-all comprehensive data repository will never materialize. Alternate strategies based on modern data federation and interoperability attract increasing interest as a realistic way to support operational effi ciency.

Multi-platformThe defi nition of an IT or infrastructure

platform normally includes only the combi-nation of an operating system and a hard-ware standard. In this day and age in oil and gas, that means mostly Windows on Intel architecture and Linux on Intel architec-ture. In effect, additional separation occurs based on the actual data structures used by the subsurface, engineering, fi eld, and back-offi ce applications.

Subsurface systemsThe massive amounts of data generated by

seismic surveys require a high level of struc-tured storage strategies to remain traceable and to be accessible to an increasing number of stakeholders. Gone are the days when the petabytes of fi eld data remained in the con-fi nes of the mega-data processing centers (typ-ically running Linux clusters augmented by graphic card processors); nowadays interpret-ers need to access the fi eld information even as they look at the stack-migrated datasets that are only a few hundred gigabytes in size.

For monolithic data management systems this creates disconnects where interpretation operates on Windows-based systems. Subsur-face scientifi c applications also rely on direct access to all well measurements, which on a regional basis can number many hundreds of thousands of boreholes each with many logs, cores, samples, etc. So it is no surprise that software suites used in subsurface explora-tion, delineation, and production monitoring are highly relational, offer powerful search capabilities, and for the more evolved ones also deliver cross-platform interoperability in-

cluding browser-based navigation and selec-tion tools. In most cases, subsurface activity is in areas where production activity already is on-going. This requires access to existing production data, which typically resides in other data systems.

Engineering systemsEngineering software covers many activi-

ties from the planning of the development of a fi eld using modeling and simulation tech-nologies, to the software operated mostly by contractors for construction and operation. While modeling and simulation are often built on the same or similar infrastructure as sub-surface solutions, data remains structured and manageable. As one ventures into the realm of engineering, structured systems yield center stage to ad hoc solutions built around Micro-soft Excel, pivot tables, and other mainstream generic software products. Data management is, therefore, almost impossible, beyond disas-ter recovery and data backup.

Field systemsModern drilling facilities carry a lot of

computer resources, much of it operating in proprietary environments managed by

the many contracting companies perform-ing the logging, mud-logging, rig operation, and other tasks that are part of the life on the rig. Real-time information is transmitted off-site using industry standard protocols such as WITS-ML. In recent years, the in-strumentation of both drilling systems and to a much larger extent production facilities has resulted in a massive generation of data. The software systems to screen and monitor this avalanche of information are still in their early years of development and deployment.

Back-offi ce systems by nature will oper-ate on top of a highly structured platform, built on process software from major provid-ers. The need to sustain audits tracing back over the years, the complex accounting of cost sharing, and the need for some degree of transparency among partners and for compliance with many regulations all point toward well-structured data systems.

A connected environmentActivity integration is a driving process

for most energy companies, mirroring the accelerating pace of energy projects while keeping an eye on an ever-changing busi-ness environment and increasingly complex hydrocarbon plays. Assembly-line work-fl ows (in which each discipline performs its designated task and hands on the result to the next one) has given way to integrated, team-based workfl ows that have multiple disciplines tackling a problem together, and iterating through certain steps to converge on an ideal outcome or to explore multiple scenarios. This trend motivates a lot of the data integration initiatives, e.g. in subsur-face systems. As the drive for more effi cien-cies and further risk reduction continues, it is set to expand in scope.

Assembly-line work does not require in-tegration, and can operate smoothly as long as data hand-over is streamlined. Team-ori-ented work demands integrated data man-agement, including sophisticated user role management and data ownership tracking, to allow each user to safely add value to the outcome without interfering in other team member roles.

Limits of large systemsIn theory, one could envision a seamless

single data management system inclusive of

Philip NeriParadigm

Prestack data is now part of the daily life of

the interpreter – the challenge is to make the

terabytes of data available online.

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all data from all aspects of the business, but many things make that unrealistic. Furthermore, this would entail that all data already exist in some form of a structured environment.

The reality of large footprint systems, i.e. systems that span many disciplines or even different departments within an organization, is that while they may improve the effi ciency of a specifi c asset, group of assets, or regional entity, their size and the complexity of their management will result in one company having a number of these systems with the separation no longer along the lines of technical disciplines or departments but along lines separating different geo-graphical businesses. While each entity becomes more effective through its vertical integration, trans-regional or multi-asset studies become more diffi cult, or will require data duplication across the lateral boundaries of the different verticals.

A different approachData federation is an alternate data strategy deployed in many

domains, not the least in subsurface data management. The need to manage concurrently data that is in a high-production seismic data processing center (mostly on Linux), while using models and inter-pretation information from geoscientists working on Linux or Win-dows workstations, and pushing results into an engineering environ-ment that operates mostly using Windows software is a challenge that can be addressed with distributed, cross-platform systems. The client-server architecture links applications to a number of different repositories, each in a different physical location (data center, work-station data servers, individual workstations, or laptops) and each with its own data management specifi cs. Seismic data requires highly optimized data streaming as well as random access to extremely large data volumes; interpretation data needs high levels of security and the real-time preservation of editing activity; well data requires optimized structures for random search and fi ltering on the fl y of millions of small records; and modeling data must support real-time updates of many related and highly complex objects using transforms.

A federated client-server architecture allows each data type to be hosted and structured in the most appropriate way, while giving the appearance of a unifi ed collection of data. The architecture is open to the addition of new data objects, including those from other plat-forms, and thus avoids data duplication without requiring a migra-tion of existing data to a new system. Among other benefi ts, this greatly facilitates group data review.

Tools for oversightRegardless of the data system structure, the reality is that within

a given company there will be more than one system, and in many

instances more than one system of a particular type, either to ac-commodate a multi-vendor environment, or because each different business unit has its own system. Over the life of an energy com-pany’s data repositories, and with the evolution of data systems in each department over the years, even a single system will contain invalid, erroneous, or duplicate data objects. This has spurred the need to develop tools that give the high-level view of what data is stored where, as well as allowing for a drill-down to specifi c data objects to locate and analyze data duplication, multiple versions of a particular data object, labeling errors, and other common issues.

The futureIt is increasingly clear to data management experts that no single

solution can address the needs of on-line, active-use data systems and at the same time provide for the perennial availability of older data items that, while not in active use, may be needed for future reference. Companies typically retain data and in some cases repro-cess it up to 10 years. In that time, a given system will have gone through a number of format changes. It is not uncommon that over such a time span a new vendor may have replaced the incumbent for specifi c parts of the application portfolio. Archiving strategies that retain data in application-specifi c formats are well suited to short –term re-use scenarios and disaster recovery, but for longer-term archiving it is necessary to build a vendor-neutral environment in which data is stored in industry-standard formats (e.g. LAS for well data) so it can be retrieved by any future data system without the penalties of data structure upgrades that are the norm for access to application-specifi c data archives that have been on a shelf for a number of years. Industry standards exist for many types of data. If none is available, structured data tables with ample metadata will be easier to access and reload than a proprietary data structure.

Closing reviewData management and cross-disciplinary integration are crucial

to increase the effi ciencies of all aspects of oil and gas exploration, production, and administration. Data is generated in unprecedented volumes, while the business environment has become more de-manding at all stages of an energy asset life cycle. Innovation is key to solving new challenges and to redefi ning the paradigms that govern this critical activity. At stake is the ability for a competitive organization to extract more information, materialize more oppor-tunities, and make the best use of cost effi ciencies to remain ahead of the game. �

Large visualization systems allow groups of decision makers to review

vast amounts of data and decide on an optimal course of action. Data searching: all information is referenced in geographic coordinates,

and combined with Google Earth to provide terrain and infrastructure

information.

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Ocean bottom seismic a key technology

offshore West Africa

Seabed seismic data acquisition can be applied to many seismic and geologi-cal challenges and may improve res-ervoir characterization and manage-ment. The technology has in recent

years become strategic for many oil compa-nies in their de-risking of wells and recovery factor improvement.

By placing sensors on the seafl oor and decoupling the source and receiver, the ac-quisition layout and equipment ensures a number of benefi ts and it proves ocean bot-tom seismic (OBS) delivers results unique to this technology while resolving many streamer seismic limitations.

This strategic application is seen in West Africa where RXT has been acquiring ocean bottom cable (OBC) seismic since 2007 in Nigeria, working for clients like Afren, MPN (ExxonMobil Nigeria), Chevron, and Total.

RXT acquires OBC seismic using a num-ber of steel cables connected to an autono-mous buoy that records all data, making it possible to retrieve that data without retriev-ing the cable. Every 25 to 50 m (82 to 164 ft) along the VectorSeis Ocean (VSO) cable is a hydrophone and three orthogonal geo-phones or accelerometers on the seafl oor acquiring 4C data.

Among the benefi ts of 4C is that both com-pressional data (PP) and converted shear wave data (PS) volume are acquired. The PP data consists of a downgoing compres-sional wave that is refl ected and recorded as a compressional wave at the seabed. The PS data consists of a downgoing compres-sional wave that is refl ected and converted

as shear wave and recorded at the seabed.Placing sensors at the seafl oor has ben-

efi ts. Two sources of noise that impact both data quality and operational performance of towed streamer surveys are avoided by plac-ing sensors on the seafl oor. Both the noise arising from towing the sensors through the water, as well as the noise induced by the movement of the sea surface, is eliminated. Using both the geophone and hydrophone data gives a straight-forward process to separate the recorded data into upward and downward traveling components that can be used effi ciently in multiple elimination. By placing the sensors on the seabed, optimal coupling also is achieved. With a shorter ray path, OBC provides superior bandwidth compared to streamer data.

These benefi ts of OBC seismic can be achieved in highly obstructed areas because it is possible to deploy cables close to the

subsurface and surface infrastructure for better data coverage and it reduces the need for undershooting.

To improve imaging in complex geology and salt structures, OBC provides the op-portunity for wide-azimuth and full-azimuth designs, as there is a lot of fl exibility in how to place the receiver arrays relative to the source arrays. Multiple vessels and passes are not required with OBC to acquire wide-azimuth data, making OBC competitive with streamer data.

Because converted shear waves are ac-quired, the issue of gas clouds can be re-solved as the shear waves are insensitive to gas and can image both within and below the cloud. The insensitivity of the shear waves to both oil and gas provides a unique hydrocarbon prediction attribute as well. Compressional data is infl uenced by hydro-carbons, however, the converted shear wave data will not be. Therefore, it is possible to separate a lithological/diagenetic effect and hydrocarbons, as an amplitude brightening on the PP data will only be a hydrocarbon effect if not also present on the PS data.

With benefi ts such as better seismic res-ervoir characterization using seismic inver-sion, the application of OBS as a strategic technology to solve similar seismic chal-lenges to those of West Africa will increase especially as many of the oil fi eld challenges that are also seen in West Africa can be re-solved by OBS. �

Kim Gunn MaverRXT

Bandwidth comparison

of streamer and VSO

OBC seismic data. The

OBC data enables a

more detailed interpre-

tation and better fault

definition and the low

frequency information.

The autonomous VSO OBC system from ION uses cables connected to a buoy for power generation

and data recording.

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E N G I N E E R I N G , C O N S T R U C T I O N , & I N S TA L L AT I O N

Structured offshore field development

concept selection adds real value

Any company that undertakes an off-shore fi eld development must pro-ceed through a process to determine the best alternatives available to de-velop their fi eld. Companies who do

not follow a rigorous concept identifi cation/selection process fall into traps that leave considerable value on the table. It is im-portant to consider all viable concepts that explore potential approaches to increasing value and mitigating risk.

Many companies evaluate fi eld development alternatives by using a stage gate process that includes formal concept identifi cation and con-cept selection phases. However, it is also com-mon for companies to favor fi eld development concepts based on prior experience, using past concepts, without fully evaluating other options. Other operators, generally those with less ex-perience or smaller budgets, may perform a minimum amount of concept selection, omit-ting attractive concepts. To ensure a successful outcome, concept identifi cation and selection are process steps that cannot be overlooked. It does not have to be a long and expensive effort, but it should ensure that all viable options are considered, including those that might be con-sidered innovative.

One common method for comparing differ-ent concepts is to use decision analysis (DA). The DA process starts with framing the prob-lem to ensure all stakeholders agree on the structure of the problem; e.g., what is being considered and what will not be considered, objectives, decision criteria, givens, and so on. DA uses a numerical model in which key alternatives can be evaluated and compared. Inputs would normally include production profi les for each well, costs and schedules for drilling and facilities, operating cost over the life of the fi eld, and key economic criteria such as discount rate, price of oil, and production-sharing terms. The outputs of the DA model might include net present value (NPV), return on investment (ROI) and cash fl ow.

Here, we take the example of a brownfi eld project where infi eld drilling and knowl-edge of reservoir performance over time indicates that there are more reserves and recovery to be had. The current infrastruc-ture does not have the capacity to produce the extra barrels. The goal of the exercise is to identify what alternatives exist for de-veloping this currently untapped potential and compare these to select the one or two

best concepts. In this type of project, there are fi ve key drivers that must be considered:

• Reservoir performance• Capital cost• Operating cost• Economic recovery• Life of fi eld.

Concept identifi cationTo ensure that all alternative approaches

are identifi ed, ideas should be solicited both internally and externally. This process gives internal operator groups the opportunity to include ideas with input from additional geo-graphical regions, as well as the opportunity to learn from experience gained by their peers with other technologies. External sources may offer solutions less known to the operator.

The goal of the identifi cation phase should be focused on fi nding as many viable concepts as possible to make sure nothing is overlooked. This process is much like brainstorming in that no alternatives should be removed until every-thing has been listed and categorized. Concept identifi cation/selection is often focused on fa-cilities and should include appropriate facility disciplines such as process, structural, fl oating production, and subsea systems, as well as op-erations.

To begin the concept identifi cation effort, it is important to develop key design crite-ria. Accurate subsurface characterization is essential (ranges and best estimates) includ-ing well counts, production fl ow rates, water injection and artifi cial lift requirements, gas injection/utilization, and crude properties. Existing infrastructure information is also critical, such as storage/pipeline capacities and production facility capacities and con-straints. In addition, all data that is “known” should be identifi ed at the outset.

Known data may include water depth, GPS location, other active fi elds in the surround-ing area, and any known partner/govern-ment requirements and preferences.

Best practicesBelow are a number of points to consider

when listing best practices. Start by listing

every major alternative and any viable sub- options. For example, a spar or tension leg platform is not practical for a fi eld in 300 ft of water, but other types of fl oating systems or fi xed platforms could be used.

List prototype and “fi rst of the kind” con-cepts in the initial effort if these are a good fi t for this location. However, these should be discussed with the operator and potentially the fi eld partners to determine if they will consid-er a unit that has not been proven previously.

Document all options that are considered, in-cluding those that are deleted early in the pro-cess. Use of these options may be questioned later and it is important to document why they were removed. Avoid becoming bogged down in costs. Make high-level estimates, if neces-sary, to resolve multiple options that are similar in other respects but do not try to develop spe-cifi c detailed costs for all options.

Involve the operator, operating partners, and key stakeholders as often as is reasonably practical. Other possible stakeholders may include appropriate government entities, ex-isting contractors (such as an existing FPSO lease provider), and adjacent operators whose facilities might be utilized. The purpose of this communication is to ensure that all concerns and biases are addressed as soon as possible. The operator will decide how much shared information is appropriate, but generally, the more feedback at this point the better. Key feedback can include schedule, quality, and cost expectations for the project.

It is critical to obtain partner agreement on basic assumptions – a process often referred to as “framing.” A simple example of framing would be deciding which future reservoirs are included and which are not. Other items needing agreement may include number and locations of wells and downhole completion confi guration (electrical submersible pumps, gas lift, gravel pack, etc.). Specifi c criteria such as production rates and number of wells are required in order to evaluate the various fi eld development concepts.

Concept selectionThe selection process begins with a series

of efforts to reduce the number of concepts. Generally, the amount of effort per alterna-tive concept increases as the number of alter-natives is reduced. It is important to obtain regular stakeholder review of the inputs to the Decision Analysis model during the process.

Bruce CragerEndeavor Management

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E N G I N E E R I N G , C O N S T R U C T I O N , & I N S TA L L AT I O N

This step will avoid many of the arguments that may occur when the results are present-ed, because inputs and the method of model-ing are understood and agreed upon up front.

The DA model provides numerical outputs such as net present value, return on capital, total recoverable reserves, and cash fl ow over the life of the project. These outputs must be evaluated with technical issues captured as pros and cons of various alternatives. These qualitative and quantitative results can be used to continue to compare and reduce the num-ber of concepts. Initial analyses can be run deterministically to get fi rst order insights on what drives the best results and then probabi-listically to better understand the major risks and opportunities from the uncertainties.

Often, several alternative concepts have benefi ts that can be combined into a “hybrid.” This hybrid can then be evaluated using the DA model to ensure it improves on other alterna-tives. Major assumptions made in the initial phase of the project can be checked using the DA model to determine if they make a signifi -cant difference when changed.

The end result of concept selection is likely to be one or two alternative concepts with sub-options that can be evaluated prior to the front-end engineering design (FEED) phase. This evaluation, commonly referred to as pre-FEED, normally takes three to six months. At the end of pre-FEED, there should be one fi eld development concept with a specifi c design basis for FEED where detailed engineering, costing, and schedul-ing can be performed.

Case studyLet’s explore a recent project for West Af-

rica in about 200-ft water depth. This project underwent an identifi cation phase that gener-ated a large number of concepts to expand the existing fi eld. The fi eld already had an FPSO

with wellhead platforms and subsea tiebacks. More wells and increased production through-put appeared to be profi table based on recent drilling and reservoir modeling.

Major concepts identifi ed initially included more platforms (both wellhead and full pro-duction), fl oating facilities (including semi-submersibles with FSO, expansion of the existing FPSO, and a replacement FPSO), a jackup production facility, and more subsea tiebacks (including direct tieback, manifolds, daisy chain, and subsea processing). These major concepts were then compared on a relative basis. This step resulted in a large number of initial options, which were then fi ltered to about 20 viable options using com-parison criteria.

These criteria, developed by the project team and approved by the operator, included: minimize risk; continuity of revenue stream; minimize estimated capital cost; minimize es-timated operational cost; minimize schedule; maximize fl exibility for future expansion; and maximize reuse of existing facilities.

This subjective grading was carried out by a group of knowledgeable engineers from various disciplines before formal costs and schedules were developed. The purpose was to reduce the number of options before per-forming more complete DA, so there were no formal economic results to compare, such as net present value.

In this project, it was initially felt that expan-sion or replacement of the existing FPSO was the logical solution. However, the option of a semisubmersible production system with an adjacent FSO, in place of an FPSO, was retained for the concept selection phase. While two fl oat-ing units were expected to have a higher operat-ing cost versus one FPSO, the semi could also have workover capability. This could be quite cost effective if subsea wells were placed below it that needed regular workover.

While it is generally not necessary to identi-fy specifi c existing production units during the identifi cation phase, it can be advantageous to check the current market for existing or speculative fl oating or jackup production facili-ties that might be compatible with the specifi c fi eld being evaluated. This process ensures that a concept based on an available existing vessel is not excluded prematurely. It is impor-tant to note that an existing production unit can potentially be less expensive and can also bring on new production more quickly.

After the 20 options were identifi ed for a given set of production profi les, pros and cons were developed for each major alternative. The 20 options were then reduced to six. At this point, a more rigorous cost and schedule effort was developed for each one, so that they could be more closely compared using the DA model.

In this example expansion project, the FPSO had process throughput limitations but had enough storage capacity for in-creased production. A viable hybrid was to add a new production platform, instead of a wellhead platform, with all existing wells routed to this new platform. Processed crude could then fl ow through a single pipe-line from the new production platform to the FPSO which would now act as an FSO.

The new production platform with FSO compared favorably to other options. The hy-brid (production platform with FSO), when looked at probabilistically, increased NPV by several hundred million dollars, because it provided additional processing capacity capable of handling the upside of the produc-tion profi le uncertainty. Deterministically, the NPVs were virtually identical. The costs of the two alternatives were identical. The qualitative advantage of the hybrid was that it naturally mitigated the risk of failure (need for trip to dry dock) with the current aging FPSO. �

(Left) Subsea wells producing to a spar. (Source: JP Kenny) (Right) Subsea wells producing to a production semi. (Source: JP Kenny)

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P R O D U C T I O N O P E R AT I O N S

Remedial design restores cathodic

protection to corrosion-damaged hull

Vessels are a crucial part of the offshore oil and gas industry and provide a means for delivering vital services such as IRM (inspection, repair, and maintenance). Operating across the world in waters of varying salinity and temperature means vessels are highly susceptible to critical corrosion damage.

For example, localized pitting can occur on steel or aluminium hull plates and result in the complete penetration of the hull below the waterline. This can render a vessel unseaworthy, leading it to be dry docked for unscheduled and costly maintenance.

Cathodic protection (CP) is a cost-effective and effi cient corro-sion mitigation solution and is central to almost every hull design. With accurate datasets, it is possible to predict the most likely future state of a hull’s integrity, which helps operators effectively plan pre-ventative action. However, a number of factors impact the effective-ness of a CP system, such as structural components, surface area, and existing coatings; and as these variables can change over time, it is possible for premature corrosion to occur.

A recent example of this is when Stork Technical Services UK Ltd. was approached by a major subsea services provider to investi-gate the premature depletion of sacrifi cial anodes on the hull of one of its survey vessels. A remedial design and installation plan was required within the week the vessel was dry docked for ongoing maintenance.

CP system development A CP system comprises an anti-corrosion coating and either sac-

rifi cial anodes, most commonly used subsea, or impressed current anodes with a power unit to drive them. The aim of a CP system is to polarize a structure as quickly as possible and maintain the optimum protection for the design life.

To develop an effective CP system for a hull, information and data on factors such as the sea chests and operating environment has to be ana-lyzed and related to certifi ed industry design standards and previous project experience.

The condition of the surface area and type of existing coatings must also be determined to calculate the required mass of the anodes, the electrical current output by the total anodes pres-ent, and from each individual anode. Using this information and recommended current density values, it is then possible to develop an effective CP system based on the mass and electrical cur-rent demands.

CP monitoring systemOnce designed and installed, planned inspec-

tions to gather datasets are required to determine if the system has achieved its initial goal of con-tinuously protecting the hull. For sacrifi cial CP

systems used below the waterline, an ROV is equipped with a multi-electrode system to measure potentials and current densities around the hull. Both the potential and current density readings are used in detailed data analysis. Anode output currents can be calculated from the readings using an appropriate mathematical model such as a mod-ifi ed Dwight’s equation or McCoy’s formulae. Since the ROV survey system uses a traceable calibration source, a historic trend analysis can also be evaluated accurately and used to make meaningful predic-tions. All of the gathered data, along with the original design details, allow for an accurate assessment of a hull’s corrosion risk and helps in planning preventative maintenance.

For vessels without ROV capabilities, an electrochemical poten-tial survey around the hull can be carried out using a “dip-cell” meth-

od. This utilizes a standard silver/silver-chloride reference electrode which is placed close to the hull in various locations at varying depths, and is measured with a high input impedance voltmeter. While this method is effective, it can only be used to identify CP potentials.

Monitoring the effectiveness of an impressed current cathodic protection (ICCP) system is more complex. In addition to monitoring the an-odes, it is also essential to test the power units, stationary reference cells, and other components that comprise the ICCP system to ensure that it is working effectively.

Case study In October 2011, Stork Technical Services UK

Ltd. (STS UK) was contracted to review sacrifi cial anodes on a vessel that had suffered corrosion damage. Analysis of the data sourced regarding the previous CP system found that the premature

Stephen HallStork Technical Services UK Ltd.

Propellers on a vessel present a unique CP system design challenge.

A CP technician performing a dip cell

hull potential survey.

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IPLOCA’s mission is to provide value to members through a forum for sharing ideas,

engaging the industry and its stakeholders, facilitating business opportunities and

promoting the highest standards in the pipeline industry.

Visit www.iploca.com for more information on membership

IPLOCA - Supporting the global

pipeline construction industry

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P R O D U C T I O N O P E R AT I O N S

anode depletion was caused by an insuffi -cient anode mass, which in turn increased the current demand required per anode.

A new CP system was required. Given the short operating window, the decision was made to design a system remotely from Ab-erdeen, UK, which could then be assembled and installed locally using only the anodes that were readily available at the yard in West Africa.

The vessel’s original CP design consisted of a sacrifi cial anode system in conjunc-tion with a coating system instead of an ICCP system. To design the new system, the vessel was analyzed in various catego-ries, including the hull, rudder, nozzle, sea chests and thrusters, since each component presented a different design challenge. The possible electrical discontinuity between components meant that the CP systems on

areas that were not electrically connected had to operate independently.

After considering a range of options, a con-servative current density was used to allow for a more rapid breakdown in coating than normal. This decision was also infl uenced by the fact the vessel normally operates in warmer tropical water, which can result in a higher corrosion rate. The conservative cur-rent density employed in the design ensured that the previous high depletion rate would not occur within the system’s intended de-sign life.

CP systems can be based on a predomi-nantly zinc alloy (designed to last for three years) and a predominantly aluminium al-loy (designed to last for fi ve years). These were developed to allow the subsea services provider to draw a comparison on the most effective design based on what was available on site. The aluminium based system pro-vides a greater current be drawn for a longer period of time per unit mass than zinc.

In addition to selecting the most effective materials, the placement of the anodes is equally important to ensure that the entirety of the vessel’s hull and associated compo-nents are suffi ciently protected. Detailed docking plans were also developed to enable the onsite engineers to correctly position

the anodes onto the ship’s hull for optimum effi ciency.

The vessel has now been re-fi tted and has returned to operational capacity. Regular dip cell potentials will be taken around the hull to monitor the effectiveness of the system and ensure it is operating as planned.

Conclusion With signifi cant global demand for servic-

es such as survey, IRM and diving, vessels that are dry docked for corrosion-related is-sues can result in signifi cant loss of revenue for subsea service providers. CP systems are a cost-effective corrosion mitigation solution, but they must be designed and in-stalled correctly to operate for the expected design life. Failure to do this can result in premature corrosion and a remedial design being required. For this particular job, STS UK developed a CP solution remotely and within a tight operating window for a sur-vey vessel that helped prevent any further unnecessary downtime due to corrosion-related issues. �

The author Stephen Hall is cathodic protection engineering and

design manager, Stork Technical Services UK Ltd.

An example of a corroded prop and stern prior

to a CP system installation

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http://www.iploca.com





Mark your calendar for the 10th annual Deepwater Operations Conference and Exhibition.

The event will continue the tradition of excellence in addressing operational challenges involved

in developing deepwater resources. The Deepwater Operations Conference and Exhibition

provides a unique experience for attendees and exhibitors to share, learn and connect.

Visit www.deepwateroperations.com for more information and to register online.

owned & produced by: presented by: supported by:

moody gardens hotel & convention center | galveston, tx | november 6-8, 2012

www.deepwateroperations.com

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Conference & Exhibition

21 - 23 February 2012Kuala Lumpur Convention Center (KLCC)

Kuala Lumpur, Malaysia

www.offshoreasiaevent.com

DEVELOPINGASIA’S

ENERGYRESOURCES

PRE-SHOW GUIDE

Supporting Organizations:Owned and Produced by:

States

Presented by: Supported by: Gold Sponsor:

SUBSEA TECHNOLOGY

TOPSIDES

MULTIPHASE PUMPING

CONSTRUCTION & INSTALLATION

DEEPWATER PRODUCTION

DECOMMISSIONING

FLOWLINES & PIPELINES

RISK MANAGEMENT

LNG

DRILLING AND COMPLETION

REGISTER BY 21ST JANUARY

FOR EARLY BIRD DISCOUNTS

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2 www.offshoreasiaevent.com

INVITATION TO ATTEND

Dear Industry Colleague,

On behalf of the Advisory Board, PennWell, and Offshore magazine,

I invite you to join us for the 7th annual Offshore Asia Conference &

Exhibition, which will be held at the state-of-the-art KLCC Convention

Centre in Kuala Lumpur, Malaysia from 21st to 23rd February 2012.

Malaysia is the oil and gas hub of Southeast Asia, with Petronas

remaining the dominant force. By 2020, Malaysia will have a more

diversified oil, gas and energy sector to enhance its competitive

advantage.

A key development is the intensifying of exploration and production

from domestic areas, including offshore of Sabah which will see

approximately half of the country’s investment in the industry in the

coming years.

The last time Offshore Asia was held in Malaysia in 2010, the

event attracted a record 5,025 attendees from 63 countries.

A strong attendance is expected again, as world energy demand

accelerates, particularly in the Southeast Asia region, due to its rapidly

developing economies.

Total capital expenditures in the region are expected to exceed $90

billion during 2011-2015, a 55% increase from the previous five-year

period, according to Infield Systems Ltd.

Malaysia, the site of Offshore Asia 2012 requires the highest percentage

share of the estimated capex allocated to all major offshore producing

nations in the region.

Meanwhile, the U.S. Geological Survey estimates a mean of 21.6

Bbbl of oil and 299 tcf of undiscovered natural gas is to be found in

23 provinces of Southeast Asia, more than 90% of them offshore. The

assessment of undiscovered gas resource is equivalent to more than

twice the estimate of undiscovered oil resource.

The Advisory Board for Offshore Asia 2012 has shaped a conference

program that highlights new technology, regional trends, and

challenges. We will look at issues from well construction and drilling

to subsea technologies and floating production systems. The LNG

track aims to tackle a range of challenges from design to processing

and storage.

In this Pre-Show Guide you will find the conference program,

correct at the time of printing, and all the relevant information you need

to fully prepare and plan your visit to the show. To participate, simply

complete and return the enclosed Registration Form, or register online at


We look forward to welcoming you to the KLCC Convention Centre,

Kuala Lumpur, Malaysia from 21st to 23rd February 2012, where you

will discover some of the best offshore O&G networking opportunities

available in Asia.

Sincerely,

David PaganieDirector, Offshore Conferences

PennWell

2 Invitation to Attend

3 About Offshore Asia

3 Why Attend

4 Operator Partner Program

5 Schedule of Events

6 How To Register

7 Offshore Asia Conference Program at a Glance

8-11 Offshore Asia Conference Program

11 Advisory Board Members

12 Opening Night Reception

12 High Tea

13 Exhibition Floorplan

13 How To Exhibit

14 DirectEventConnect

15 Sponsors

16 How to Get There

17 Organiser Contacts

18 Hotel Accommodation

19 Hotel Booking Form

20 Registration Form

CONTENTS

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3www.offshoreasiaevent.com

ABOUT OFFSHORE ASIA

The annual Offshore Asia Conference & Exhibition remains the leading source of information on new technology and operating expertise for the

Asia-Pacific region. Over 5000 offshore oil and gas professionals are expected to attend this regional showcase of key industry suppliers of products

and services to the offshore industry.

Running alongside the exhibition is a three-day conference exploring emerging trends and current solutions facing the industry in the Asia-Pacific

region. Overall, Offshore Asia provides a unique annual forum for the industry – a world-class technical conference exclusively for the Asia-Pacific

offshore market combined with an exhibition showcasing the latest technologies, products and services. With the continued development and

investment of LNG, Offshore Asia has further developed the LNG conference track to provide an enhanced view on this important industry sector.

WHY ATTEND?

BENEFITS OF ATTENDING OFFSHORE ASIA

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on the issues, challenges and technical solutions unique to the region.

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the entire region.

A WORLD-CLASS TECHNICAL CONFERENCE

Technical focus areas include:

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OPERATORS PARTNER PROGRAM

DO YOU WORK FOR AN

OPERATING COMPANY?

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Operators Partner Program!

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The more delegates you send, the more you save!

Introducing the Operators Partner Program. In response to a growing

concern from our supporters about the current economic climate

and the need for exposure to new technology applications in this

sector, PennWell has developed the Operators Partner Program

solely for operators in the offshore industry.

Offering a range of discounts and benefits to operators and their

employees, enabling them to listen to key industry presentations,

providing relevant, real world technology applications, networking

with peers and meeting with the supplier market, PennWell is

committed to making sure your company has the ability to stay

abreast of key market trends.

HOW TO REGISTER

Visit: www.offshoreasiaevent.com

Email: [email protected]

Fax: Direct: +1 918 831 9161

Toll-Free (US only): +1 888 299 8057

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applicant is from an approved operator in order to qualify for

discount

BENEFITS

In addition to the standard conference registration Operator

Program Partners receive:

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refreshments throughout the day

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STANDARD CONFERENCE

REGISTRATION INCLUDES:

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FUTURE EVENTS

Offshore Operators are invited to participate in future events,

in any or all of the following ways:

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Advisory Board

For further details and to register visit


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SCHEDULE OF EVENTS

MONDAY, FEBRUARY 20

10:00 – 17:00 Registration Open Registration Counter 2

TUESDAY, FEBRUARY 21


13:00 – 18:30 Exhibition Open Exhibition Hall 2

17:00 – 18:30 Opening Reception Exhibition Hall 2

WEDNESDAY, FEBRUARY 22


09:00 – 10:30 Opening Plenary Session Banquet Hall (Level 3)

10:30 – 18.00 Exhibition Open Exhibition Hall 2

10:30 – 11:30 Delegate Coffee Break Exhibition Hall 2

11:30 – 13:00 Conference Sessions 1 Rooms 401-402 & 403-404

13:00 – 14:30 Delegate Lunch Exhibition Hall 2




17:00 – 18:30 High Tea - Sponsored by MOSGC Exhibition Floor

THURSDAY, FEBRUARY 23


09.00 – 16.00 Exhibition Open Exhibition Hall 2




13:00 – 14:30 Delegate Lunch Exhibition Hall 2


16:00 – 16:15 Awards Ceremony & Closing remarks Rooms 401-402

EXHIBITION HOURS

Tuesday, February 21 13:00 - 18:30

Wednesday, February 22 10:30 - 18:00

Thursday, February 23 09:00 - 16:00

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REGISTRATION HOURS

Monday, February 20 10:00 - 17:00

Tuesday, February 21 08:00 - 18:30

Wednesday, February 22 08:30 - 18:00

Thursday , February 23 08:30 - 16:00

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CHOOSE FROM 4 SIMPLE WAYS TO REGISTER FOR THE OFFSHORE ASIA

CONFERENCE AND EXHIBITION:

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TX 7 5397-3059, USA

ARE YOU SMART READY?

If you have a SmartPhone, you can also register on your mobile smartphone by scanning this QR code to go straight to online registration.

REGISTER BY 21ST JANUARY 2012 FOR SAVINGS

Register yourself and your colleagues as conference delegates by 21st January 2012 and benefit from the Early Bird Discount Rate.

Pre-register for the Offshore Asia exhibition online at www.offshoreasiaevent.com for Fast Track entry.

CONFERENCE DISCOUNT FOR ASSOCIATION MEMBERS

If you are a member of one of the following associations, benefit from a 20% discount on conference delegate fees:

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See registration form on back page for delegate fees

HOW TO REGISTER

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CONFERENCE PROGRAM AT A GLANCE

TUESDAY 21 FEBRUARY 2012

E&P TECHNOLOGY TRACK LNG TRACK

13:00 EXHIBITION OPENING

17:00 - 18:30 OPENING NIGHT RECEPTION Sponsored by Oil States

WEDNESDAY 22 FEBRUARY 2012

09:00 - 10:30 OPENING PLENARY

10:30 – 11:30 COFFEE BREAK Sponsored by Cameron

11:30 – 13:00 SESSION 1: Well Construction and Drilling Operations SESSION 1: LNG Outlooks

13:00 – 14:30 LUNCH

14:30 – 16:00 SESSION 2: Pipelines & Transportation SESSION 2: LNG panel

16:00 - 17:00 COFFEE BREAK Sponsored by Cameron

17:00 - 18:30 SESSION 3: Production Optimization SESSION 3: LNG Design

THURSDAY 23 FEBRUARY 2012

09:00 - 10:30 SESSION 4: Subsea Technology SESSION 4: LNG Processing Issues


11:30 – 13:00 SESSION 5: Floating Production Systems SESSION 5: Liquids and LNG Storage

13:00 – 14:30 LUNCH

14:30 – 16:00 SESSION 6: Riser Technology

16:00 - 16:15�@�X=J�:!X!>QY^��Y=�:ZQJ;Y[�X!>�X�J��

DAVID PAGANIE, CONFERENCE DIRECTOR, PENNWELL CORPORATION

States

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OFFSHORE ASIA CONFERENCE PROGRAM

TUESDAY, 21 FEBRUARY 2012

WEDNESDAY, 22 FEBRUARY 2012

TRACK: E&P TRACK: LNG


13:00 – 14:30 DELGATE LUNCH

17:00 - 18:30 OPENING NIGHT RECEPTION Sponsored by Oil States

09:00 – 10:30 OPENING PLENARY

WELCOME & INTRODUCTION: Mr. David Paganie, Conference Director, PennWell Corporation

WELCOME ADDRESS: Representative from Economic Planning Unit, Prime Minister’s Department, Malaysia

UPSTREAM OUTLOOK: Examination of Key Market Drivers, Influences and Trends, Mr. Will Rowley, Acteon Group

LNG OUTLOOK: Mr. Atsunori Takeuchi, Chief Representative, Asia Pacific Regional Office, Tokyo Gas Co., Ltd.

11:30 – 13:00 SESSION 1: WELL CONSTRUCTION/DRILLING

OPERATIONS

Chair – Mr. Ben Lim, Schlumberger Malaysia,

Co-chair – Mr. David Paganie, PennWell Corporation

11:30 – 12:00 A Concept of Drilling Deepwater Wells with Riser

Margin and a Greatly Simplified Well Design;

Mr. Robert Ziegler, Petronas Carigali

12:00 – 12:30 Geopressure Prediction Using Artificial Intelligence

Modelling for Pre-Drilling Operations;

Mr. Haravinthan MS Arumugam, Talisman Malaysia

12:30 – 13:00 13 3/8-in. Riser-less Subsea Casing Drilling

Campaign, A Step Change in Tophole Drilling

Performance;

Mr. Andrew Harris, Tesco Singapore Pte Ltd

Alternate Meeting the Challenges of Deep Water, Large Bore

Gas Completions - Safety Systems;

Mr. Robert McDaniel, Baker Hughes Inc

SESSION 1: SESSION 1: LNG OUTLOOKS

Chair – Mr. Warren True, Oil & Gas Journal

Major LNG Liquefaction Projects in the Asia Pacific;

Mr. Stuart Traver, Gaffney, Cline Associates

How Asia Pacific LNG Industry is Going to Play a Key Role in the

Global Arena;

Mr. Sumit Kumar Chaudhuri, GlobalData

The Role of Flexible Trade in Meeting Asian LNG

Demand;

Mr. Chris Holmes, Purvin & Gertz Inc.

States

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14:30 – 16:00 SESSION 2: PIPELINES & TRANSPORTATION

Chair – Mr. Rodney Silberstein, ARV Offshore Co. Ltd.,

Co-chair – Mr. Geoff Stone, Penspen Limited /

Andrew Palmer & Associates

14:30 – 15:00 The SoftClamp™ system, a New Power Umbilical

Design for Medium Voltage Cables,

Mr. Arild Figenschou, Aker Solutions

15:00 – 15:30 Pipeline Recovery and Decommissioning Offshore

Brunei and Sarawak;

Mr. Mark Wood, First Subsea Ltd

15:30 – 16:00 Collision and Oil Spill Risks in DP Shuttle Tanker

Direct Offloading Operations;

Dr. Haibo Chen, Lloyd’s Register Scandpower

Alternate Improvement of Fatigue Characterisitcs of Pipeline

at Lateral Buckling Locations;

Mr. Kumar Pandravada, McDermott Middle East Inc.

17:00 – 18:30 SESSION 3: PRODUCTION OPTIMIZATION

Chair – Mr. Mads Hjelmeland, Framo Engineering

Asia Pacific Sdn Bhd,

Co-chair – Mr. Geoff Stone, Penspen Limited /

Andrew Palmer & Associates

17:00 – 17:30 Design, Implementation and Evaluation of an

Open Hole Gravel Pack in Kikeh Field Deepwater

Malaysia.;

Mr. Scott Crowder, Murphy Oil Corporation

17:30 – 18:00 Improved Reservoir Monitoring to Evaluate

a Marginal Offshore Well within a Multidisciplinary

Team;

Mr. Sri Khresno Pramboeidi Pahlevi, EMP Malacca Strait

18:00 – 18:30 Looking at Convective Heat Transfer in Tubing

Casing Annulus of Offshore Oil Wells Through the

Lens of Well Integrity;

Engr. Mohd Amin Shoushtari, Universiti Teknologi PETRONAS (UTP)

Alternate Produced Water Reinjection – What determines

its Quality and What Strategy Can Be Employed if

Water Quality Falls Outside the Specification?

Miss. Gayathri Ariaratnam, Jorin Ltd.

SESSION 2: LNG PANEL

Chair – Mr. Dan Rogers, King & Spalding, Singapore

SESSION 3: LNG Design

Chair – Mr. John Sheffield, WIGLOX LNG Consultancy, London

Development of Floating LNG Production Units with Modular/

Scalable SMR Processes;

Mr. Robert Germinder, Black & Veatch Corp.

Guidelines for the Classification of FLNG: What Have Been the

Most Demanding Lines of Development For These Guidelines;

Mr. Jose Esteve, Bureau Veritas

Offshore GBS LNG Liquecation Plant Design and Layout Challenges

for a Mid-Scale LNG Plant;

Mr. Peter Lardi, WorleyParsons Services Pty Ltd

FPSO/FLNG Noise and Vibration Control - From FEED Through EPC

to Commissioning;

Mr. Olivier Verin, Vibratec


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09:00 - 10:30 SESSION 4: SUBSEA TECHNOLOGY

Chair – Mr. Tony Findlay, Fluor Offshore Solutions,

Co-chair – Mr. Mads Hjelmeland, Framo Engineering

Asia Pacific Sdn Bhd

09:00 - 09:30 Subsea Multiphase Pumping, Issues and Challenges;

Engr. Samuel Ogbodo, Manpower UK

09:30 - 10:00 Subsea Wet Gas Compression – A State of the Art

Update;

Mr. Mads Hjelmeland , Framo Engineering Asia Pacific Sdn Bhd

10:00 - 10:30 Subsea Multi Manifold Technology – A System

Approach to Enhanced and Cost Effective Subsea

Production;

Mr. Rudisham Marjohan, Framo Engineering Asia Pacific Sdn Bhd

Alternate Latest Developments in Acoustic Subsea Control

and Monitoring for the Drilling Industry;

Mr. Lindsay Macdonald, Nautronix

11:30 – 13:00 SESSION 5: FLOATING PRODUCTION SYSTEMS

Chair – Mr. Will Rowley, Acteon,

Co-chair – Mr. Joseph H. Rousseau, ABS Pacific

11:30 - 12:00 A Comparative Review of Floating Production

and Drilling/Production Field Development

Alternatives for Offshore Asia;

Dr. Neil Williams, Wison Offshore & Marine USA

12:00 - 12:30 Introduction to HVS Semi-Submersible Floating

Platform,

Dr. Allan Magee, Technip

12:30 - 13:00 Production and Mooring System for Marginal Fields;

Mr. Douglas Davidson, Moorings Systems Ltd

Alternate Making the Case for Appraisal & Early

Development Systems;

Mr. David Fellowes, Just Energy Pte Ltd

SESSION 4: LNG PROCESSING ISSUES

Chair – Mr. Warren R. True, Oil & Gas Journal

Pretreatment Options for Floating LNG Plants;

Engr. David Farr, UOP Malaysia, SB

APCI - TBD

Introducing Flexibility into FLNG Topside Plant Designs;

Mr. Vince Atma Row, Johnson Matthey Catalysts

SESSION 5: LIQUIDS AND LNG STORAGE

Chair – TBD

Condensate: Revenue Insurance for Uncertain Future LNG Prices;

Mr. Al Troner, Asia Pacific Energy Consulting

Enhancing Revenue by Processing Associated Gas Condensate

Rather than Mixing and Selling Stabilised Condensate with Crude Oil

- A Case Study;

Mr. Subhajit Das, Oil & Natural Gas Corporation Ltd.

TBD;

Mr. John Sheffield, WIGLOX LNG Consultancy, London

THURSDAY, 23 FEBRUARY 2012

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TRACK: E&P

13:00 – 14:30 DELGATE LUNCH

��}}�'�� @�X=J�:!X!>QY^��Y=�:ZQJ;Y[�X!>�X�J��=��;=�#�[�Y;!��:QY<!X!Y:!�=;X!:?QX��#!YY@!ZZ�:QX#QX�?;QY

14:30 – 16:00 SESSION 6: RISER TECHNOLOGY

Chair – Mr. Geoff Stone, Penspen Limited / Andrew Palmer & Associates,

Co-chair – Dr. Gregory Chiu, Asian Institute of Technology

14:30 - 15:00 Riser Configurations for Challenging Deepwater Asian fields;

Mr. Henri Morand, Technip

15:00 - 15:30 SCR Design and Analysis for Deepwater Applications;

�� =�*�̂ ��:��X��;�� !��;�

15:30 - 16:00 An Innovative Riser Tower System;

�� >�*��̂ ��;�� @��/# ��[��

Alternate Advances in Intervention-less Latching Mechanism Technology for Risers;

Dr. John Shaw, First Subsea


ADVISORY BOARD MEMBERS

Mr. Dale Bradford, Murphy Oil Corporation

Mr. Julian Callanan, Infield Systems Limited

Dr. Gregory Chiu, Asian Institute of Technology

Mr. Tony Findlay, Fluor Offshore Solutions

Mr. Ben Lim, Schlumberger Malaysia

Mr. Mads Hjelmeland, Framo Engineering Asia Pacific Sdn Bhd

Mr. Phil MacLaurin, Premier Oil

Mr. Chandru Sirumal Rajwani, Keppel FELS Limited

Mr. Brian Reeves, Oil & Gas Field Facilities Consultants Ltd

Mr. Joseph H. Rousseau, ABS Pacific

Mr. Will Rowley, Acteon

Mr. John Samson, Aker Solutions

Mr. John A. Sheffield, John M. Campbell & Company

Mr. Rodney Silberstein, ARV Offshore Co. Ltd.

Mr. Ricky Simic, Oil States Industries Inc.

Mr. Geoff Stone, Penspen Limited / Andrew Palmer & Associates

Dr. Joko Widjaja, Technip Eng. Thailand Ltd.

Mr. Rene Wit, PDO

Mr. Datuk Iskandar, SOGCA

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OPENING NIGHT RECEPTION

HIGH TEA

Date: Tuesday 21 February

Time: 17:00 – 18:30

Location: Exhibit Floor

The highly anticipated Opening Night Reception sponsored by Oil States, will take place on the exhibit floor on Tuesday 21 February between 17:00

– 18:30. An extremely popular and well attended event at Offshore Asia, the Opening Night Reception promises to be one of the highlights of the

three days.

Exhibitors, conference delegates and visitors from the event are cordially invited to attend the party. With food and drinks provided, the Opening

Night Reception will provide a perfect opportunity for you to catch up with friends and make valuable new ones. This social event is not to be missed.

Date: Wednesday 22 February

Time: 17:00 – 18:30

Location: MOGSC Booth

We are delighted that the Malaysian Oil & Gas Services Council will be hosting a High Tea reception on the exhibition booth on Wednesday

22 February and have invited their members and Offshore Asia delegates and visitors to join them on their booth to enjoy the opportunity

for more networking.

Sponsored by:

States

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FLOOR PLAN

HOW TO EXHIBIT

FOR A FULL LIST OF EXHIBITORS, PROVIDERS AND SERVICES, VISIT WWW.OFFSHOREASIAEVENT.COM

GAIN ACCESS TO KEY DECISION MAKERS IN THE OFFSHORE E&P INDUSTRY

Offshore Asia not only delivers critical business information on the region’s offshore E&P

industry but also provides an excellent opportunity to meet and conduct business with the

key decision makers from the region’s most important companies.

If you are interested in exhibiting and sponsorship opportunities at Offshore Asia 2012

contact:

Asia Pacific

Michael Yee

T: +65 9616 8080

F: +65 6734 0655


EMEA

Jane Bailey

T :44 (0) 1992 656 651

F: +44 (0) 1992 656 700


USA & Americas

Sue Neighbors

T: +1 713 963 6256

F: +1 713 963 6212


As of 4 November 2011

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____________________________








DIRECTEVENTCONNECT

DO YOU WANT TO MAKE OFFSHORE ASIA 2011 THE MOST VALUABLE

EVENT OF THE YEAR?

START PLANNING WITH MY EVENT PLANNER TODAY!

HOW IT WORKS

My Event Planner is an exhibition organizer and scheduler that lets you view, compare and bookmark exhibiting companies, products

and services that interest you while you search the DirectEventConnect Global Community exhibitor directory. You can build, refine and

add to your planner right from your desktop. After you bookmark exhibitors and products, they are automatically saved as favourites and

are highlighted on your printable floor plan for you to follow on site.

SEARCH

� Preview who and what will be at the event

� Stay up-to-date on new products and exhibitors in the community with customized newsletters

sent directly to you based on your attendee profile

� Request information and book appointments with exhibitors that interest you save

� Bookmark products and exhibitors that interest you to save to your favourites

� Recommend exhibitors and products to supervisors and colleagues

� Maximize your time at the event and save money by planning ahead with your Event Planner

CONNECT

� Network with other registered attendees and exhibitors

� Build your event planner that lists your favourite exhibitors on a printable floor plan

for you to follow at the event

� Print your customized floor plan based on your favourite exhibitors

Logon to the DirectEventConnect exhibitor directory and start planning your event now!

http://community.offshoreasiaevent.com

For further information or questions please contact:

Tel: +1 877 214 8364

Fax: +1 888 783 4305

E-mail: [email protected]

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http://community.offshoreasiaevent.com






SPONSORS

Owned and Produced by:

Presented by:

Supporting Organizations:

Media Supporters:

Supported by:

Technology Sponsor:Gold Sponsor: Coffee Break Sponsor:

Rigs World

NATURALGASA S I A

As of 4 November 2011

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HOW TO GET THERE

Offshore Asia

Hall 2, KLCC Convention Centre

KLCC Convention Centre,

Kuala Lumpur City Centre,

50088 Kuala Lumpur, Malaysia.

Tel : +60 3 2333 2888

Fax : +60 3 2333 2800

Email : [email protected]

BY ROAD:If you are in a taxi, approach the Centre along Jalan

Pinang and turn left into the main entrance (second

turn after the Mandarin Oriental Hotel) for dropping off.

BY TRAIN:Take the Light Rail Transit (LRT), Putra Line to KLCC

station. Turn left after exiting the turnstiles and walk

through the Suria KLCC shopping centre Concourse

Level to the Centre Court. Turn left and make your

way past Cold Storage to the Guardian Pharmacy

where there is a walkway (open from June 12, 2005)

through to the Convention Centre. Take the elevator

to the Ground Floor where you will be directed to the

Registration area.

ON FOOT:From the Suria KLCC shopping centre Ground Floor

centre court take the park exit into the KLCC Park and

turn right. Follow the Esplanade along towards the

Mandarin Oriental Hotel and then follow the path

around the edge of the park towards the centre of

the building and enter via the Park Entrance.

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ORGANISER CONTACTS

Exhibition Sales Team

EMEA

Jane Bailey

T: +44 (0) 1992 656 651

F: +44 (0) 1992 656 700


Asia Pacific

Michael Yee

T: +65 9616 8080

F: +65 6734 0655


The Americas

Sue Neighbors

T: +1 713 963 6256

F: +1 713 963 6212


Conference Director

David Paganie

T: +1 713 963 6217

F: +1 713 963 6296


Conference Manager

Jenny Phillips

T: +44 (0) 1992 656 629

F: +44 (0) 1992 656 700


Marketing Manager

Neil Walker

T: +44 (0) 1992 656 643

F: +44 (0) 1992 656 700


Exhibitor Services Manager

Karina Pharoah

T: +44 (0) 1992 656 615

F: +44 (0) 1992 656 700


Operations Manager

Stefan Tebbenhoff

T: +44 (0) 1992 656 715

F: +44 (0) 1992 656 700


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__________________________







HOTEL ACCOMMODATION

KUALA LUMPUR

The Malay Peninsula is not only home to beautiful beaches, untouched rainforests, and inspiring mountains, it is also the site of one of Asia’s most energetic and exiting cities: Kuala Lumpur. “KL” takes understandable pride in its cultural diversity – evidenced by Malay artworks, Islamic architecture, Indian temples, Chinatown markets, and, most importantly, an astonishing array of ethnic foods.In fact, for locals and visitors alike, KL is a food-lover’s paradise, whether you’re navigating the famed food hawker stalls of Jalan Alor or lounging with the hip young things on Jalan Sultan Ismail.

The Petronas Towers monopolies the skyline, the tranquil Lake Gardens offer a beautiful retreat from city life, and just out of town lie the Batu Caves

and Kuala Gandah Elephant Sanctuary.

THE OFFICIAL PARTNER FOR ACCOMMODATION & TRAVEL

Events in Focus is a market leader in accommodation, travel and on-site management for worldwide events. Offering competitive rates at a wide

range of hotels including transfers, meet and greet, organising private functions and dinners during this event.

Director – International Events/Conferences

Randy Wright

T: +44 (0) 207 902 7761

F: +44 (0) 207 633 9427


Executive – International Events/Conferences

Elizabeth Kelly

T: +44 (0) 207 902 7764

F: +44 (0) 207 633 9427


FOR MORE INFORMATION PLEASE CONTACT:

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HOTEL BOOKING FORM

RETURN COMPLETED BOOKING FORM TO

Email: Elizabeth Kelly [email protected] or Randy Wright [email protected]

Discount rates are only available from Events in Focus, the Official Housing Agent

DELEGATE INFORMATION Please fill in BLOCK LETTERS (Please fill in one registration form per delegate)

First Name Last Name:

Dr. Mr. Mrs. Ms.

Company Name:

Address:

City: PostCode: Country:

Phone (Country Code _____) ______________________Fax (Country Code _____)

Email:

ACCOMMODATION Rates are shown per room, per night basis

Hotel Name: Single Double

Arrival Date: Departure Date: No of Nights:

I will be sharing a room with Smoking Non-smoking

GUEST INFORMATION SELECT ONE: Exhibitor Attendee Other

BOOKING CONDITIONS

Room availability will be guaranteed for reservations received by 20th January 2012, after that date Events in Focus will handle requests subject to availability

All rooms will be guaranteed through a valid credit card number received Credit Card (American Express, Visa, MasterCard)

Card Number Expiry Date ____ /____

3 or 4 (for Amex) digit numbers in a signature space / security code on the reverse side __________

Cardholder’s Name:

Cardholder’s Signature:

CANCELLATION POLICY Cancellation policies vary depending on hotel. Please ask for these at the time of booking.

Conference & Exhibition21 - 23 February 2012

Kuala Lumpur Convention Center (KLCC)Kuala Lumpur, Malaysia


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First Name: Last Name:

Position:

Company:

Complete Mailing Address:

Postal code:

Country Code: Telephone: Fax:

Email:Registration confirmation will be sent via-email, if unique email address is provided above

PLEASE USE PROMOTIONAL CODE WHEN REGISTERING

��

��

21-23 February 2012

KLCC - Convention Center, Kuala Lumpur

Method of Payment:

� Cheque enclosed (in Euros funds only) � Wire Transfer (Wire information will be provided on invoice)

Credit Card: � Visa � Mastercard ��AMEX � Discover

Credit Card Number:______________________________________ Expiration Date:__________________

Full Name (as it appears on card): _________________________________________________________

Card Holder Signature: _____________________________________Date:_________________________

(Required for credit card payment)

4. Purchasing Role: � 50 Specify � 51 Recommend � 52 Aprove � 53 Purchase � 99 None

1. Individual Delegate (Full Conference Registration)*

Includes:��

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2. Corporate Plan (5 delegates) Includes:

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� ��%��&'�/��!�&;<&� =>L>U>

Operator Partner Program (Unlimited Delegates)��Z��[��\� =&L;;;

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approved operator in order to qualify for discount

3. Exhibitor Delegate Exhibit booth staff can upgrade their registration to include

to access to the conference at a discounted rate

Includes:

� ��

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move-out

� ��

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5. � Supporting Association Full Conference��=};;

Please indicate the association you are registering under

� MOGSC � SOGCA � MOGEC � MSET

6. � Exhibit Visitor (Visitor) Free Includes:

� ��

K{��"��#��j��$��!{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{#��$�~�=&>��!�

��"��!{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{{#��$�~�=&>��!

TOTAL PAYMENT AMOUNT

(In Euros only) = € _________________________

*Your full -price registration fee includes a one-year paid

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Conference Fees:��[��[��_��_��

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%��QQ�#;$<??&�}>}�}&?


3 ways to register:

Pre-register on line before

16 February 2012

Register on site after.

1 Fax:

��<�?<U�U'<�?<}<

"��j��#Z��!$��<�UUU�&??�U;>K

2 Website:


3 Mail:

PennWell C&E Registration (OA)

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For questions please call:

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Q�Email:

[email protected]

Payment must be received prior to the conference. If payment is

not received by the conference date, the registration fee must be

guaranteed on charge card until proof of payment is provided.

Make cheque payable to PennWell/Offshore Asia 2012.

Cancellation: Cancellation of registration must be received

in writing. Any individual, exhibitor, or corporate registrations

cancelled before 27 January 2012 will receive a 50% refund

of registration fee. After 27 January 2012 , no refunds will be

permitted. Substitutions may be made at any time by contacting

the registration office in writing.

1. Primary business activity:

� 02 Major oil & gas operating company

� 03 Independent oil & gas company

� ;Q��[_��!

� ;K��

� 51 Consulting company engaged in projects or

� _�`��`��[_��

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� 39 Engineering company

� ;U��

� 10 Seismic company

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� 36 Equipment manufacturing company

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� 12 Insurance or financial services

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research lab

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2. Job title:

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3. Areas of Interest/Involvement

� 10 Exploration

� 01 Production

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� 39 Financial

� 05 Drilling

� 29 Gas Processing

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ANYWHERE

SIGN UP FOR YOUR FREE

DIGITAL SUBSCRIPTION TODAY!

Since 1954, Offshore Magazine has lead the industry with exceptional editorial, reporting on offshore opera-tions, technology, trends and events worldwide.

If you are actively involved in the offshore industry you may qualify to receive a free subscription and join tens of thousands of other offshore professionals around the world that rely on Offshore magazine every month.

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S U B S E A

From pressure and temperature infor-mation to sand erosion and corrosion monitoring, operators today know more about the inner depths of their oil and gas reservoirs than ever.

Such has been the speed of these technol-ogy developments around reservoir monitor-ing that many well intervention techniques, such as logging, perforating and plug setting, and impeded wellbore access (through sand eroded components for example) mercifully are becoming less and less frequent.

Despite these developments, however, there remains one missing downhole reser-voir monitoring element – multi-phase me-ters and the ability to measure multi-phase fl ow downhole.

Multi-phase meters today provide crucial real-time information on fl ow conditions in the reservoir and are an important alterna-tive to traditional well testing.

Through the accurate characterization of multi-phase fl ows, the meters can determine maximum oil production and gas handling capacity and can provide early warnings on threats to production, such as water break-through.

As of 2010, there were 3,314 multi-phase meters and wet gas meters installed world-wide, according to Gioia Falcone of Texas A&M University and Bob Harrison from Soluzioni Idrocarburi Srl. This fi gure is ex-

pected to double over the next 10 years. Recent technical developments include

the ability to mix effects and velocity profi les and to detect changes in fl uid composition more rapidly using more compact versions. Furthermore, today there are multi-phase meters for all types of fi eld conditions, cov-ering the full operating range of 0 -100% wa-tercut and 0 - 100% gas void fraction.

However, for all this progress, there is one crucial piece of information that multi-phase meters have not delivered consistently until now - the fl ow from individual wells and well zones downhole. The need for this infor-mation has increased all the more with the move towards complex well architectures.

Complex well architectures The last few years have seen a growth in

different types of well architectures, includ-ing multi-lateral, horizontal and multi-zone wells, and intelligent completions. In many cases, the rationale has been to increase well exposure, extend well reach and productivity, and reduce capital and operating costs.

Multi-lateral well technology from a single wellbore, for example, requires fewer pro-duction well slots to drain a reservoir, result-ing in reduced subsea infrastructure costs, reduced costs for top-hole drilling, and ac-celerated production. Today, there are multi-lateral well examples throughout the world

from Statoil’s Glitne and Sleipner develop-ments on the North Sea to Petrobras’ devel-opments in the Campos basin where Level 5 multi-lateral wells are deployed.

Extended reach wells have led to multiple production targets as well as an operator re-quirement to pinpoint production data not only from each wellhead but from each pro-ducing zone.

In such circumstances, real-time monitor-ing of downhole oil, gas, and water fl ows can improve production by providing input to the use of infl ow control valves, for example. Furthermore, if a gas or water cone is de-tected in a multi-lateral well, such informa-tion can lead to the closure of an individual well where the incident occurs, rather than the complete well as is often the case.

While downhole multi-phase monitoring has been a focus for many years, to date, the direct monitoring of multi-phase fl ows has been hindered by a variety of factors ranging from cost to concerns over accuracy and the extreme conditions downhole. The result is that often multi-phase meters have provided only data on total production fl ow from all wells rather than fl ow from specifi c zones.

Flow sensor systemAgainst this backdrop, Emerson has de-

veloped a new fl ow sensor system that gen-erates multi-phase fl ow measurements from downhole in the well.

The new system – Roxar Downhole Flow Sensor System – can generate multi-phase measurements, including fl uid fractions and fl ow rates, from either single bore or multi-lateral confi gurations. This allows operators to control multiple production wells, measure the individual fl ow zones of oil, gas and water, and to establish optimum fl ow rate control.

Typical applications include zonal allocation in multi-zone wells where the downhole sen-sor can help allocate production from different zones; improved assessments of well produc-tivity; reduced need for alternative well testing requirements; and improved production log-ging that provides more details on fl uid dis-tributions. This is important in horizontal and deviated wells where well deviations result in more unpredictable fl ow regimes.

Probably the most important application is detecting threats to production. If there is water breakthrough or gas encroachment in a par-ticular well, for example, the problem can be

New sensor system generates

multi-phase measurements downhole

Multi-phase metering becomes a bigger challenge in multi-lateral wells and complex production

architecture.

Terje BaustadEmerson Process

Management

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PENNWELL’S OFFSHORE EVENTS!

PennWell’s Offshore Events cover key issues, trends and technologies relative to offshore oil and gas E&P operations. Covering

every aspect of the offshore industry including topsides, platforms and hulls, subsea tiebacks, deepwater production, operations and

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detected early and only the branch of the well in question closed rather than the complete well.

Other production anomalies or warnings of transient behavior such as slugs also can be detected earlier. Actions, such as injecting water or gas into the reservoir for improved sweep effi ciency, also can be monitored and the injection rate in each individual reservoir layer closely controlled. In this way, many of the causes for well intervention can be miti-gated and any remedial action localized.

The new measurement principle is based on an electrode geometry sensor which al-lows for capacitance and conductivity mea-surements in separate sectors, in addition to the full cross-sectional area. This results in more combinations and more accurate frac-tion and phase measurements.

Rather than being able to perform only cross-sectional measurements, for example, the meter can perform both rotational near wall measure-ments and cross-volume measurements, there-by providing a comprehensive mapping of the fl ow regimes downhole. The meter is designed to handle all types of downhole fl ow regimes, from horizontal laminar fl ow to fully developed vertical annular fl ow.

The new system includes a new water cut measurement tool based on dual velocity mea-surements and a density sensor which mea-

sures the density of the fl uid using gamma rays. Providing the necessary robustness to op-

erate in extreme conditions was a key design requirement. To this end, the sensor system uses state-of-the-art electronic components, rigorously selected and tested. The fi rst series tools are qualifi ed to operate at pressures and temperatures of up to 10,000 psi and 150 °C (300 °F) for at least 20 continuous years.

Easy, fl exible installation also was factored in, with the need to avoid subsea interven-tions, to have a small footprint to accommo-date limited well space, and to avoid danger of infl uencing fl ow regimes.

The tool, which measures 3.5 in. and has a ¼-in. cable, is compact and easy to install and can be fi tted in both short zones between packers and in 7-in. liner/casing. Measure-ments are performed in the tubing through non-intrusive sensors and the system is modular. Users can pick the tool combination which best suits their needs.The system can be fi tted to existing subsea control systems without the need for modifi cation.

Integration downholeThe main design philosophy behind the

new multi-phase fl ow sensor system is that it should be just one element of a broader and integrated downhole monitoring solution.

For example, the fl ow sensor system is a key element of a fully integrated Intelligent Down-hole Network (IDN), which allows operators to install up to 32 instruments on a single cable, all of which provide information to help manage a range of production wells or separate zones simultaneously. The intelligent network can act as a hub for downhole choke position indica-tors, for additional third-party sensors and for the transmission of power and data.

Multi-phase measurements downhole can also be integrated with data from other in-strumentation for more intelligent downhole reservoir management. Threats to produc-tion, for example, can be detected downhole by the multi-phase meter and then pinpoint-ed even further by other downhole sensors.

Find the missing partDownhole monitoring always has played

a key role in fl ow assurance, negating the need for well intervention and ensuring a more effi cient and effective production process. Just as temperature and pressure measurements can now be taken from all ar-eas of the reservoir, the measuring of multi-phase rates downhole, and information on water, oil, gas fractions and fl ow velocity are another missing part of the jigsaw fi nally be-ing addressed. �

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F L O W L I N E S A N D P I P E L I N E S

Pipeline management system

enhances inspection results

Holistic approach yields better data and optimizes technology

Rachel BoyleLloyd’s Register

Offshore operators often fail to fully benefi t from their pipeline inspection programs. In so doing, they are ef-fectively leaving money on the table, because an effective pipeline integri-

ty management system (PIMS) captures all the benefi ts of an inspection and enhances the value of an asset throughout its lifecycle.

A well designed and managed pipeline integrity program reduces scheduled and unscheduled downtime and improves HSE performance. It also helps to assure greater value for money on inspection and mainte-nance programs; yields auditable data to demonstrate regulatory and internal com-pliance; drives a more effi cient steward-ship of assets and resources; improves risk management and preparedness; enhances corporate governance; and promotes opera-tional confi dence.

At the bottom line, it helps to increase uptime and productivity, extend the life of pipeline assets and signifi cantly improves business performance and the return on in-vestment.

The costs associated with pipeline failures or unplanned shutdowns are high in terms of lost production and repairs. HSE prob-lems can raise those costs to another level. A fully implemented PIMS can prevent many of the failures, incidents, and shutdowns that typically occur on less well-managed pipelines. Distilled to its essence, PIMS is a comprehensive risk-assessment program.

Risk assessment The general categories of risk for offshore

pipelines are well known and documented in a study prepared for the U.S. Minerals Man-agement Service in 2000 and in the PARLOC studies in the North Sea. These studies ana-lyzed thousands of incidents – involving haz-ardous liquid and natural gas pipelines, in-cluding risers and other components – that occurred between 1984 and 2000. The prin-cipal causes of these incidents were internal and external corrosion, material defects, defects from construction or installation, equipment malfunction, operator error, and damage from outside forces. These risks all can be mitigated by managing the integrity

of the pipeline, provided they are accurately identifi ed and assessed.

While risk assessment can be conducted

at any time during a pipeline’s operational life, and becomes a continuous process in an ongoing PIMS program, it is most effective when started during the design stage. Risks identifi ed during the design stage can be mitigated or eliminated with modifi cations that also reduce future operating costs.

Strategies also can be developed for man-aging any additional risks. For example, careful monitoring of risks during construc-tion and installation will help to ensure that the condition of the pipeline is thoroughly documented when it is commissioned and put into service. A complete dossier of ac-curate data about a pipeline’s design, startup condition, and subsequent operational his-tory is of great value when setting up and operating an effective PIMS.

Risk assessment is also the starting point for establishing a PIMS for operational pipe-lines, following the same methods used for new pipelines. The process begins with a re-view of the design and condition data, such as inspection and maintenance reports, as well as operating procedures and HSE sys-tems. Further inspections and testing may be needed for a complete baseline condition profi le. Gap analysis then pinpoints vulner-abilities and defi ciencies, and also identifi es strengths, which are built upon. This is fol-lowed by an assessment of the probability and consequences of every potential failure, which may be conducted with the assistance of risk-based mechanical integrity (RBMI) software. The results are summarized in a probability/consequence matrix that clearly ranks each risk. These rankings are used to determine inspection and maintenance priorities and to recommend changes in operating and management procedures. The areas of risk that present a high prob-ability of failure with severe consequences are fl agged for diligent monitoring and a higher frequency of inspections, perhaps using sophisticated technologies. Risks with a low probability of occurrence and minor consequences simply may be ignored until a failure occurs.

Risk assessment fi ndings may lead to rec-ommendations for bespoke inspection pro-grams. For a new pipeline, the assessment

This picture, from an ROV inspection in the Gulf

of Mexico, shows anode wastage with approxi-

mately 50% deterioration. A pipeline integrity

management system (PIMS) captures all the

benefits of an inspection and enhances the

value of an asset throughout its lifecycle.

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MARCH 6 – 8, 2012 • Moody Gardens Hotel & Convention Center • Galveston, Texas

2 0 1 2 S U B S E A T I E B A C K F O R U M & E X H I B I T I O N

Owned & Produced by Presented by Supported by

In recent years, the subsea industry has seen many technology challenges, engineering demands, resource availability

issues, Quality Assurance requirements, manufacturing constraints, and most recently, changes in the governmental

regulatory agencies affecting existing standards and/or processes. The Subsea Tieback Forum & Exhibition will provide

information and the opportunity for you to exchange ideas to address many of these concerns and challenges.

The Subsea Tieback Forum & Exhibition has become the premier event for one of the fastest growing sectors of the oil

and gas industry. Next year’s Subsea Tieback Forum & Exhibition is scheduled for March 6-8, 2012 in Galveston, TX

at the Moody Gardens Hotel & Convention Center. Visit www.subseatiebackforum.com for up-to-date information

about the event. You can’t afford to miss it!

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http://www.SubseaTiebackForum.com






F L O W L I N E S A N D P I P E L I N E S

will yield clear risk rankings and inspection priorities, along with a highly optimized frequency schedule. An in-service pipeline that lacks adequate documentation of its operations could make risk rankings prob-lematic, so more frequent inspections may be required.

As the operator gains confi dence in the data, the inspection program can be op-timized. Where good documentation is available for an existing pipeline, including complete inspection records, the informa-tion will support risk rankings that allow op-timization, which in some cases may lower inspection frequency or alter the techniques used.

There is no universally recognized stan-dard for offshore pipeline inspection pro-grams and the overall safety management of pipeline systems. Regulatory agencies in various regions require operators to prove initially that a pipeline is safe and fi t for purpose and to report certain information, such as results of cathodic protection tests, at regular intervals. Otherwise, the inspec-tion and maintenance of offshore pipelines is left to the discretion of individual opera-tors. It is thus essential that operators un-derstand their risks, assess and rank them accurately, and establish inspection pro-grams that use the right methods and tools to yield data that represent the conditions of their pipelines.

Commensurate results Pipeline integrity is commonly viewed as

a technical matter mainly involving inspec-tions. The available technology is impressive. Sophisticated fl ow modeling and probabilis-tic analysis are available for risk assessment. Intelligent pigs snake though pipelines car-rying many highly sensitive instruments. Remotely operated vehicles fl y along risers and pipeline routes to look for coating dam-age, external corrosion, leakage, scour and spanning, while also gathering side-scan so-nar images. Chemical analysis of effl uent can detect evidence of corrosion if pigging is not possible.

Yet the results often do not refl ect the state-of-the-art technology we employ to as-sess risks and determine the condition of our pipelines. The number of failures and in-cidents remains stubbornly high. If it were mainly a matter of technology, the advances should have brought similar improvements.

Experience suggests that how the tech-nology is used and managed plays a critical role. To achieve the best results, we must fully understand what data we need, select the right tools and procedures to obtain it, interpret it correctly, act upon the fi ndings, and use the lessons learned to improve our PIMS performance. All of this requires a

level of expertise that lies outside the core competencies of many pipeline operators.

Pipeline inspection is often seen as a cost-ly imposition done mainly to satisfy regulato-ry or internal corporate demands – in other words, to put a check in a box. Only fi ndings of serious defects prompt further action. This short-term mindset fails to see inspec-tions as a vital part of a comprehensive pro-cess to maintain the long-term integrity of the pipeline – its continuing availability and fi tness for service. In the absence of serious defects, the inspection results are consigned to a shelf without further review and never again consulted.

Offshore pipeline inspection can be ex-pensive. ROV visual inspection usually re-quires support vessels, with attendant day rates. Inspections performed as an exercise without commitment to pipeline integrity are simply wasteful.

Using intelligent pigs and instrumented ROVs in this context may provide a feeling of assurance. But, in reality, it can simply amplify the waste. Even a carefully opti-mized inspection program can be wasteful if the data is used only to assess a pipeline’s condition. We should get more from our ef-forts than a check in a box and a binder on a shelf.

Integrity management can increase the value of the investment in monitoring, in-specting, and maintaining pipelines. The PIMS perspective is comprehensive and long-term. Since the integrity of a system involves each individual component, PIMS evaluation and monitoring covers every part and piece of equipment associated with a pipeline – pig launchers and receivers, me-tering skids, instrumentation and controls, structural supports, welds and connectors, and coatings. Operating and environmental factors such as fl uid composition, the fl ow regime and throughput volumes, the poten-tial for fl uid accumulation and slugging, sea-bed topography, seawater temperature, sa-linity and oxygen content, and the strength of currents are all considered in assessing risks and are then monitored for changes.

Measurement and analysis are not limited to physical components and environmental factors in a PIM program. All aspects of how a pipeline system is operated and managed are scrutinized to identify elements of risk and opportunities for improvement. HSE policies and procedures are closely ana-lyzed and many other factors that affect sys-tem integrity are also considered, including hiring qualifi cations and personnel training, compensation and incentives, supervisory organization and approach, data collection and documentation, and even supply chain and contractor management. Gaps and defi -ciencies identifi ed in these and other areas

represent opportunities to further reduce risk and improve performance.

Diligenceand continuity

The area where a PIMS can have the greatest positive impact, however, is in the quality of inspection data and its benefi cial uses. In many instances, inspections do not target the areas that will yield the most useful data. Or if they do, the tools or tech-niques may not be the best ones to measure those parameters accurately; or the instru-mentation may not be calibrated correctly to provide measurements within a useful range of tolerances. Optimizing the inspection pro-cess for data quality and utility demands a level of expertise that may be diffi cult for individual pipeline operators to maintain. In such cases, it often is worth the effort and expense to bring in a qualifi ed consultant.

Securing appropriate and accurate inspec-tion data remains just a technical exercise, however, if the data is not used to maxi-mum benefi t. Putting the data to good use is part of the comprehensive nature of a sound integrity management program. Spot-ting defects and impending accidents is, of course, primary and of urgent importance. This information, particularly if it can be re-viewed in the context of previous inspection records, will determine whether remedial or mitigating actions are required. If no ac-tionable defects are found, the data provides proof to senior management, regulators, and other stakeholders that the pipeline remains fi t for purpose.

When current data is then added to the historical record of the pipeline’s condition going back to the inauguration of the PIMS, the continuous record can be used to reas-sess risks and to confi rm or modify risk rankings. It also can be used to assess the PIMS’ performance and determine whether it should be adjusted or changed. A length-ening record of clean inspections may allow for benefi cial changes in operating parame-ters and procedures or a relaxed inspection frequency, measures that lower costs. Re-ducing an annual visual ROV inspection to biannual, for example, could save hundreds of thousands of dollars. Changes of this sort, however, can only be justifi ed by a continu-ous data record.

Diligence and continuity are key aspects of a successful PIM program. Details must receive due attention. Records must be thor-ough and complete. Confi dence based on poorly managed inspections is always over-confi dence. Failure to review and maintain data continuously will ultimately compro-mise the ongoing inspection process so that it loses much of its value and further effort is wasted. �

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Conference & Exhibition

21 - 23 February 2012

KLCC Convention Center

Kuala Lumpur, Malaysia


DEVELOPING ASIA’SENERGY RESOURCES

Owned and Produced by: Presented by: Supported by: Supporting Organizations:

SUBSEA TECHNOLOGY

TOPSIDES

MULTIPHASE PUMPING

CONSTRUCTION INSTALLATION

DEEPWATER INTERVENTION

DECOMMISSIONING

FLOW LINES & PIPELINES

RISK MANAGEMENT

LNG

FINANCE

The annual Offshore Asia Conference & Exhibition remains the leading source of information on new

technology and operating expertise for the Asia-Pacific region.

� A unique audience of the world’s leading executives, managers and engineers from major and

independent E&P companies focusing on the issues, challenges and technical solutions unique

to the region

� A world-class technical conference program

� An exhibition showcase of technology and capabilities to support improvements in

E&P operations.

� Expert Opinions on the new issues, challenges, and solutions associated with the exploration

and production activity across the entire region.

For full conference program and how to register visit www.offshoreasiaevent.com

Who Attends Offshore Asia

� Industry leaders who seek information on emerging technologies in order to plan

future operations

� Multinational audience of senior executives and decision makers from international and

regional operators

� Service & equipment suppliers

� Engineering & construction personnel

� Contractors

� Consultants who need to stay abreast of industry and regional trends

� Business Development Managers

Do you work for an Operating company?

� If you answered YES then your company qualifies for the Operators Partner Program!

� Send unlimited delegates for €2,000*!


For more details on the Operator Partner Program visit www.offshoreasiaevent.com

Don’t miss this annual gathering of offshore industry professionals

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C o n f e r e n c e & E x h i b i t i o n

January 31 – February 2 , 2012 . Hilton New Orleans Riverside . New Orleans, Louisiana USA

Join hundreds of colleagues and exhibiting companies for this high-level technical conference and exhibition and connect

with key decision makers and technical experts directly involved in the topsides industry. Over three days, Topsides,

Platforms & Hulls will feature presentations covering technical issues, business challenges and future trends, plus showcase

an exhibition of products and services from dozens of key engineering fi rms, contractors, suppliers and service providers.

w w w . To p s i d e s E v e n t . c o m

OWNED &

PRODUCED BY PRESENTED BY SUPPORTED BY HOSTED BY

TECHNOLOGY

SPONSOR

GOLD

SPONSOR

COFFEE BREAK

SPONSOR

WEDNESDAY NIGHT

RECEPTION SPONSOR

SILVER

SPONSOR

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SPONSOR

BOTTLED WATER

& CONTINENTAL

BREAKFAST SPONSOR

PLATINUM

SPONSOR

THURSDAY LUNCH

SPONSOR

Follow us on: www.offshoreoilevents.com

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___________________________







27 – 29 November 2012

Perth Convention Exhibition Centre

Perth, Australia

www.deepoffshoretechnology.com

2012 call for papers

Hosted By:

Owned & Produced By: Presented By: Supported By:

developing for frontier regionsTechnologies

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The Advisory Board of DOT International — the leading global conference & exhibition for deepwater and ultra deepwater

exploration and production — invites you to submit an abstract and share your knowledge, experience, and ideas with leading

technological experts and strategic decision-makers.

The conference topics for DOT 2012 refl ect the industry’s increasing demand for new technology and services to safely and

effi ciently grow the global reserves base from the world’s most prolifi c, and prospective, resource play — deepwater.

call for papers

CALL FOR ABSTRACTS

The Advisory Board of DOT International — the leading

global conference & exhibition for deep and ultra-deepwater

exploration and production — is now accepting paper

abstracts for the 2012 Conference.

We invite you to submit an abstract and share your

knowledge, experience and ideas with technical and strategic

decision-makers and strategists.

This conference is a great opportunity to network with

leading organizations and high level infl uencers and for you

to represent your company at the most prestigious event for

the industry.

ABSTRACT SUBMISSION DEADLINE: 26 MARCH 2012

WHO WILL BE YOUR AUDIENCE?

Oil & Gas industry professionals, experts and managers,

including:

Industry leaders who seek information and

technologies for future operations

Senior decision makers from international and regional

operators

Oil and gas operating companies

Service and equipment suppliers

Engineering and construction companies

Contractors

Consultants

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To submit an abstract go to www.deepoffshoretechnology.com

Deadline: 26 March 2012

conference topics

• Floating Production Facilities

• Lessons Learned - Field Development

• Brownfield Development

• Multi-Field Development

• Lessons Learned in Deepwater Operations

• Marginal Field Development & Maximization

• Production Optimization

• Field Architecture & Development Concepts

• Technology Qualification and Implementation

• Subsea Technology

• Subsea Boosting & Processing

• Long Distance Subsea Tiebacks

• Risers & Riser Technology

• Arctic Technology

• Flow Assurance

• Flowlines & Pipelines

• Well Construction / Drilling Technology

• HP/HT Drilling & Completion

• Completion Design in Deepwater

• Subsea Intervention

• Mooring & Station-Keeping

• Advanced Materials

• Construction / Installation

• Risk & Reliability

• Technology Development Initiatives

• Project Execution & Management

• Workforce Resource Issues

• HSE

• Gas Development

• Floating LNG

• Model Testing & Response Prediction

• Subsea Well Intervention

• Oil Spill Recovery & Containment

• Emergency Response Technology

• Project Financing

• Regulatory Compliance

• Geology & Geophysics

• Training & Development

• Asset Integrity

• Reservoir Monitoring & Control

• Pipeline Installation

• Enhanced Oil Recovery

• Subsea Increased Oil Recovery

• Decommissioning

• Production Operations

• Downhole Monitoring & Control

• Reservoir Simulation

• Geotechnical Challenges & Solutions

• Regional Challenges & Trends

• Trends in Deepwater Exploration & Production

• Operational Readiness in Frontier Regions

• Environmental Challenges for Gas Projects

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ABSTRACT SUBMITTAL PROCEDURE

Should you wish to submit an abstract for consideration,

please follow the procedures below.

ABSTRACT DEADLINE: 26 MARCH 2012

All abstracts must be submitted using the on-line form

found on the DOT International web site:


The main body of your abstract should be between 150

and 300 words. For full guidelines and requirements,

please visit the DOT International website:

www.deepoffshoretechnology.com under the

conference section.

STEP-BY-STEP PROCEDURE:

go to www.deepoffshoretechnology.com

click on “submit abstract” in the left navigation bar

complete the required fi elds

press submit

relax, your abstract has been submitted!

Please submit your abstract ONLY ONCE and wait for the

automatic e-mail confi rmation.

ABSTRACT DEADLINE: 26 MARCH 2012

Exhibit Sales and Corporate Sponsorship:

Ana Monteiro

Southern & Eastern Europe & Africa

T: +44 (0) 1992 656 658

F: +44 (0) 1992 656 700


Sue Neighbors

Americas

T: +1 713 963 6256

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Michael Yee

Asia Pacific

T: +65 9616 8080

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Conference: Marketing:

Niki Vrettos

Conference Manager

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AnNicole Faeth

Marketing Manager

T: +1 918 832 9347

F: +1 918 832 9274


contacts


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INVESTING IN

OFFSHOREMATTERSCALL FOR ABSTRACTS

DEADLINE EXTENSION

DEADLINE FOR SUBMITTAL: 19 December 2011

The Advisory Committee of Offshore Middle East 2013 has extended the

Offshore Middle East Call for Papers deadline to 19 December 2011.

We invite you to submit an abstract for Offshore Middle East 2013 and share

your knowledge, experience and solutions with industry colleagues from

around the world.

Providing a platform for technology exchange and new business development,

Offshore Middle East will for the first time include a Gas Industry Operations

track, providing a comprehensive dual-track conference covering all aspects

of natural gas and gas liquids as part of this technical track, parallel with the

upstream and exploration emphasis, seen at previous Offshore Middle East

events.

To have your presentation considered for the technical session program, please

submit your 150 - 400 word abstract on one or more of the technical focus

areas listed at www.offshoremiddleeast.com by 19 December 2011

For further information and to submit an abstract please visit:

www.offshoremiddleeast.com


21 - 23 JANUARY 2013

QATAR NATIONAL CONVENTION CENTRE

DOHA, QATAR

WWW.OFFSHOREMIDDLEEAST.COM

OWNED AND PRODUCED BY: PRESENTED BY: SUPPORTED BY:

UNDER THE PATRONAGE OF

H.E. Dr. Mohammed Bin Saleh Al-Sada

Minister of Energy & Industry

State of Qatar

ORGANIZED BY:

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______________________________








B U S I N E S S B R I E F S


PeopleUTEC Survey International has appointed

Kevin McBarron as managing director for the U.K., Mediterranean, and West Africa regions.

Liu Guo Yuan has been appointed chair-man, non-independent and non-executive director of COSCO.

Cummins Inc. has appointed Jim Lyons as VP – chief manufacturing offi cer.

EGS Electrical Group has appointed Ri-

cardo Mejia to VP of performance excellence.Atlas has appointed Stewart Buchanan as

the new product development manager. Norbar Torque Tools has announced that

Catherine Rohll has been appointed to the board as commercial director, and Craig

Brodey has been appointed commercial direc-tor for Australia beginning in January 2012.

Sino Gas And Energy Holdings Ltd. has appointed Peter Mills to the board as a non-executive director.

Lamprell has appointed Jonathan Cooper

to the board of directors as CFO, and Scott

Doak has stepped down from the board and has assumed the role of integration and development director.

The Abu Dhabi National Energy Co. (TAQA) has appointed Carl Sheldon as CEO.

RBG has appointed Sandeep Sharma as its new fi nance director.

Giovanni Ranieri has been named the new busi-ness development director at UTEC Survey Mediterranean located in Naples, Italy.

ClerkMaxwell has ap-pointed Graham Callander

to the role of business development director. Dril-Quip Inc. announced that J. Mike

Walker has retired and is stepping down from his positions as chairman of the board, CEO, and a board member. As a result, the board of directors has appointed John V. Lovoi as chairman of the board, Blake T. DeBerry

as president, CEO and a board member, and James A. Gariepy as senior vice president and COO.

BDO USA has appointed Mike Grubbs as assur-ance partner in the Natural Resources industry practice. He will be based in the fi rm’s Houston offi ce, where he will work with the fi rm’s energy clients and focus primarily on SEC registrants.

Atwood Oceanics has appointed Phil D.

Wedemeyer to its board of directors and to the chair of its Audit Committee.

OSBIT Power has appoint-ed Ben Webster as sales and marketing manager, and Robbie Blakeman as senior engineer.

Greene’s Energy Group has named Ray Keller senior sales representative for the northeastern region of the United States.

H2O Inc. has named Mar-

lon Joseph as vice president of its new electrochemistry division.

DNV has appointed Mat-

thias Laatsch to lead its wind energy operations in Hamburg, Germany.

HOERBIGER Corp. of America, Inc. has appointed Donald York as COO and senior vice president.

Senergy has appointed Frode Linge as project/asset manager for the company’s new regional offi ce in Oslo, Norway.

Exova has added Roylins

Ehigie as a specialist test engineer.

Omar Sekkat has been named senior vice president of the energy division at DnB NOR Asia.

ACE Winches has appoint-ed Graeme Wood as COO.

Mike Arnold has been appointed managing director of Bibby Remote Intervention Ltd., and he will take up a position on the main board of Bibby Offshore Holdings Ltd.

Cynthia Linnenkohl has been appointed manager of sales operations for Global Tubing.

Ikon Science has named Henry Morris as vice president global corporate development, and David Flett as VP of Ikon Sciences Asia Pacifi c.

E2S has appointed Vernon Cotton as VP, sales and marketing USA.

Wood Group has appointed Les Thomas as group director.

Reservoir Exploration Technology has appointed Kim Gunn Maver as vice president of sales and marketing, and Fredd Causevic

as vice president of business development.

Graeme McRobb has been appointed COO of Omega Completions.

Stuart Wordsworth, gen-eral manager of InterAct, has been voted onto the board of

Decom North Sea.Eiva has appointed Jeppe Nielsen as CEO.Artifi cial Lift Co. has appointed Andrew

Puhala as VP and CFO.Prodrill Energy Resource Solutions has ap-

pointed Akin Awe as contract specialist.

Company newsCortland has expanded its Anacortes, Wash-

ington, facility in order to create upgraded sales, engineering, and administrative spaces.

McDermott has selected Allocate Software

plc’s maritime suite to globally manage the planning, scheduling, competency, and training management of its worldwide offshore staff.

T.D. Williamson, Inc. has announced plans for the creation of a Global Pipeline Integrity Center in Salt Lake City, Utah.

Delmar Systems, Inc. has formed an Australian subsidiary, Delmar Systems Pty

Ltd., with offi ces in Perth, Western Australia, to support the growing Australian offshore drilling and production operations.

S3 ID has been awarded a contract to supply its technologies to the Statoil Gudrun Person-nel Tracking System (PTS) Project via Siemens

Norway.Amarinth has won an order for $850,000 for

eight pumps to be used in the harsh conditions off Sakhalin Island, Russia.

2H Offshore Inc. has relocated to new premises within Houston’s Energy Corridor District at 15990 North Barkers Landing, Suite 200, Houston, Texas 77079.

Hertz Global Holdings Inc. announced that its equipment rental division, Hertz Equip-

ment Rental Corp., has acquired Delta

Rigging & Tools’ offshore equipment rental division based in New Iberia, Louisiana. The acquisition expands its oil and gas customer base into the offshore market.

Outreach has won contracts to supply seven pipe handler systems to various platforms in the North Sea and the Middle East. Four will be de-livered to Apache North Sea for the Forties oil platforms Alpha, Bravo, Charlie, and Delta. Two more should be installed by end-November on the drilling rigs Rowan Bob Palmer and Rowan Ralph Coffman.

Shell UK has contracted Archer to continue providing drilling, maintenance, and engineer-ing services on the Nelson platform and the four Brent platforms, all in the UK North Sea. Archer has been performing this role on the fa-cilities since 2004. Its current contract was due to expire in 2012, but has now been extended by one year.

EPC Offshore has created three dedicated business streams to capitalize on growth in key sectors of the North Sea oil and gas industry. The move will see project units focused on the subsea, brownfi eld, and fl oating production stor-age and offl oading (FPSO) markets.

Plains Exploration & Production Co.

Sheldon

Keller

York

Sharma

Joseph

Linge

Wood

McRobb

Grubbs

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B U S I N E S S B R I E F S

has executed a securities purchase agreement with EIG Global Energy Partners in which PXP will receive $450 million of cash proceeds in exchange for a 20% equity interest in Plains

Offshore Operations Inc.

Knutsen NYK Offshore Tankers AS has signed a time-charter party with Eni for two shuttle tankers for a maximum 10-year period starting from summer 2013.

BMT Cordah has launched the NEMS Accounter Light reporting software to the UK market.

Scotland’s First Minister Alex Salmond of-fi cially opened the global headquarters of the Ferguson Group at Midmill Business Park, Kintore.

Tendeka has agreed to a distributor agree-ment with Matpatson Petroleum Services

for the exclusive promotion and sale of Tendeka products in Nigeria.

Lankhorst Mouldings and RiserTec have announced a cooperation agreement for the de-sign and manufacture of dynamic bend stiffen-ers. Under the agreement, RiserTec will design and test the riser ancillary products and provide project-specifi c technical support to Lankhorst. Lankhorst Mouldings will manufacture the bend stiffeners at its facility in the Netherlands.

Fugro Survey B.V. and IPOZ LLC have signed a worldwide exclusive agreement for free inertial metrology technology GIPSEA and the associated software and support services.

Reservoir Group has acquired GeoSearch

Logging Inc. All 232 personnel currently employed by GeoSearch will remain in the business, which will join with Reservoir Group’s existing surface logging services and unite under the Empirica brand.

Transocean has opened its training center and offi ces in Kuala Lumpur, Malaysia.

Petrobras and BG Brasil have signed a technical cooperation agreement to develop key technological solutions for overcoming the challenges they face. The three-year agree-ment will initially cover well construction and production optimization. Over this period, joint investments are projected at some R$60 million ($33.7 million) for developing the technological solutions required.

Britain’s National Grid has contracted Wood Group Kenny for studies connected to development options for offshore storage of car-bon dioxide (CO2). National Grid is investigat-ing the possibility of transporting and injecting CO2 into a prospective offshore saline aquifer storage location in the UK southern North Sea.

The Gulf Technical & Safety Training

Centre has opened a new facility in Erbil, northern Iraq. The center will provide training, including safety, fi re fi ghting and fi rst aid, risk management, environmental awareness, and its technical training programs.

Intertek has invested £15 million ($24 million) in new Aberdeen, UK, headquarters for its energy services operation. Intertek will move in phases to the 41,000 sq ft (3,800 sq m) North Point building on the Energy Park in Bridge of Don with the fi rst service line now based there and 160 employees to relocate by March 2012.

Paradigm has opened a new offi ce in Gurgaon, Haryana, the greater New Delhi met-ropolitan area. The company recently relocated its Mumbai offi ce to Platinum Techno Park, Navi, Mumbai, a more strategic location closer to its customer base.

EnerMech has secured a multi-million pound crane maintenance contract from Maersk Oil North Sea UK Ltd. for assets operating in the UK. The contract covers the in-spection, periodic maintenance and engineering support for all deck cranes on-board the Janice

FPU, Gryphon and Global Producer III FPSOs managed and operated from Aberdeen.

Indepth reports on activity and spending –

• The World Offshore Drilling Spend Forecast

• The World Floating Production Market

• The World Offshore Oil & Gas Production &

Spend Forecast

• The AUV Gamechanger Report

• The World Deepwater Market Report

• The World Offshore Wind Report

• The World FLNG Market Report

• Subsea Processing Gamechanger

Offshore Oil and Gas Industry of Russia and CIS:

Outlook to 2020

Provides a detailed analysis of all current and projected

offshore projects and develops an outlook for their

development to 2020.

Surveys in Excel Spreadsheets for easy analysis –

• US Gulf of Mexico Deepwater Discoveries & Status

• Worldwide Seismic Vessel Survey

• Global Field Development Survey

• Rotary Steerable Tool Directory

• Production Projects Worldwide

• Construction Projects Worldwide

Directories that download to your desktop –

• Offshore E&P Industry Worldwide

• Pipeline Industry Worldwide

Statistical Tables in Excel (Historical)

• Offshore Crude Oil Production - Monthly

• Offshore Gross Withdrawals of Natural Gas - Annual

• GOM Federal Offshore Production - Annual

• North Sea Crude Oil Production – Monthly

• US Active Seismic Crew Counts - Monthly

918-831-9421 or [email protected]

www.ogjresearch.com

Strategic Data from PennEnergy

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• Display Ads: $235.00 per column inch. Same discount as above. 15% agency commission. $235.00 minimum charge for inser-tions. Page size is 3 columns wide by 10 inches deep. One Column = 2.25” wide, Two Columns = 4.75” wide, Three Columns = 7” wide. Minimum Size: 1 Column X 1 Inch.• Deadline for classifi ed advertising is the 15th of the month preceding publication. Contact Glenda Harp, (918) 832-9301, orfax your ad for a quote (918) 832-9201. E-mail: [email protected]• No special position available in classifi ed.

C L A S S I F I E D A D V E R T I S I N G

CONSULTANTS

Hiring?

Selling Equipment?

Need Equipment?

New Business Opportunity?

CONTACT: GLENDA HARP+1-918-832-9301

or 1-800-331-4463, Ext. 6301Fax: +1-918-832-9201


SURVEYS: In-depth details for industry segments in fl exible spreadsheets

STATISTICAL TABLES: Key worldwide stats for all industry sectors in spreadsheets

DIRECTORIES: Comprehensive contact data

REPORTS: In-depth analysis of specifi c industry sectors

Your Source for

Offshore Industry Data

For more information or to order

Visit: www.PennEnergyResearch.com


BRAZIL LEGAL & REAL

Oil & Gas | Energy & Renewables

The giant has awaken, and you need effective strategic counseling to cut into this new investment frontier + quality technical advice from local, experienced specialists.

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Rio de Janeiro & Natal - Brazil www.expetro.com.br


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PENNWELL PETROLEUM GROUP1455 West Loop South, Suite 400, Houston, TX 77027

PHONE +1 713 621 9720 • FAX +1 713 963 6228David Davis (Worldwide Sales Manager)

[email protected] Duffy (Regional Sales Manager)

[email protected] Harp (Classified Sales) [email protected]

GREATER HOUSTON AREA, TXDavid Davis [email protected]

USA • CANADAMitch Duffy [email protected]

UNITED KINGDOM • SCANDINAVIA •THE NETHERLANDS

9 Tarragon Rd.Maidstone, Kent, United Kingdom ME16 OUR

PHONE +44 1622 721222 • FAX +44 1622 721333 Roger Kingswell [email protected]

FRANCE • BELGIUM • PORTUGAL • SPAIN • SOUTH SWITZERLAND • MONACO

• NORTH AFRICAProminter

8 allée des Hérons, 78400 Chatou, France PHONE +33 (0) 1 3071 1119 • FAX +33 (0) 1 3071 1119

Daniel Bernard [email protected]

GERMANY • NORTH SWITZERLAND • AUSTRIA • EASTERN EUROPE •

RUSSIA • FORMER SOVIET UNION • BALTIC • EURASIA

Sicking Industrial Marketing, Kurt-Schumacher-Str. 16 59872 Freienohl, Germany

PHONE +49 (0) 2903 3385 70 • FAX +49 (0) 2903 3385 82 Andreas Sicking [email protected]

ITALYSILVERA MEDIAREP

Viale Monza, 24 - 20127 Milano, ItalyPHONE +39 (02) 28 46716 • FAX +39 (02) 28 93849

Ferruccio Silvera [email protected]

BRAZIL / SOUTH AMERICASmartpublishing Ltd/ OGJLA Pennwell Brazil

HEADQUARTERS: Rua Raimundo Chaves 2182, L5Natal RN 59064-390, BRAZIL

RIO OFFICE: Ave. Erasmo Braga 227, 11th fl oorRio de Janeiro RJ 20024-900, BRAZIL

PHONE +55 (21) 2533 5703 or +55 (21) 3084 5384FAX +55 (21) 2533 4593

Jean-Paul Prates [email protected]

JAPANICS Convention Design, Inc.

6F Chiyoda Bldg., 1-5-18 Sarugakucho Chiyoda-Ku, Tokyo 101-8449, Japan

PHONE +81 3 3219 3641 • FAX +81 3 3219 3628Manami Konishi [email protected]

SINGAPORE19 Tanglin Road #05-20 Tanglin Shopping Center

Singapore 247909 PHONE +65 9616 8080 • FAX +65 6734 0655

Michael Yee [email protected]

INDIAInterads Ltd., A-113, Shivalik, New Delhi 110 017 PHONE +91 11 628 3018 • FAX +91 11 622 8928

Rajan Sharma [email protected]

NIGERIA/WEST AFRICA Flat 8, 3rd fl oor (Oluwatobi House) 71 Allen Ave, Ikeja, Lagos, Nigeria

PHONE +234 805 687 2630 or +234 802 223 2864 Dele Olaoye [email protected]

SALES OFFICESA

Aker Solutions .......................................... C2www.akersolutions.com/subsea

Aramco Services Company ......................25www.aramcoservices.com

ARC Advisory Group .................................53www.arcweb.com/res/forumorl

ASTICAN .....................................................47www.astican.es

B

Bredero Shaw .............................................29www.brederoshaw.com

C

Cameron / LeTourneau DrillingSystems ........................................................9

www.c-a-m.com

D

Delmar Systems, Inc. .................................37www.delmarus.com

Dril-Quip ....................................................C3www.dril-quip.com

F

FMC Technologies ..................................... 11www.fmctechnologies.com

Fugro GeoServices ....................................33www.fugro.com/deepwater

Fugro Gravity and Magnetic Services ......14www.fugro-gravmag.com

G

Gulf Copper Dry Dock and Rig Repair .....44www.gulfcopper.com

GVA Consultants AB .................................48www.gvac.se

I

IPLOCA .......................................................61www.iploca.com

J

Jumbo Offshore VOF .................................45www.jumbo-offshore.nl

K

KBR ............................................................ C4www.kbr.com

KOBELCO / Kobe Steel Ltd. ......................31www.kobelcoedti.com

www.kobelco.co.jp/compressor

L

L&M Radiator .............................................36www.mesabi.com

LLOG Exploration ......................................39www.llog.com

N

National Oilwell Varco. ...............................23www.nov.com

O

Offshore Energy Center. ............................43www.oceanstaroec.com

ORR Safety. ..................................................3www.orrsafety.com/kong

P

Parker Hannifin Corporation .. ..................21www.parker.com

PennWellDeep Offshore Technology

Conference & Exhibition .................91-94www.deepoffshoretechnology.com

Deepwater Operations Conference & Exhibition ......................62

www.deepwateroperations.comOffshore Asia Conference &

Exhibition .................................. 63-82, 89www.offshoreasiaevent.com

Offshore Events ....................................85www.offshoreoilevents.com

Offshore Group .......... 8, 27, 40-41, 55, 83www.offshore-mag.com

Offshore Middle East Conference & Exhibition ..............................................95

www.offshoremiddleeast.com Offshore West Africa Conference &

Exhibition ..............................................49www.offshorewestafrica.com

PennEnergy Research .................... 97, 98www.PennEnergyResearch.com

PennWell Books ..............................44, 48www.PennWellBooks.com

Subsea Tieback Forum & Exhibition ..............................................87

www.SubseaTiebackForum.comTopsides, Platforms, & Hulls

Conference & Exhibition ......................90www.TopsidesEvent.com

R

RM Young Company ..................................47www.youngusa.com

S

ShawCor .......................................................7www.shawcor.com

Siemens AG ................................................17www.siemens.com/oilandgas

StatOil .........................................................35goodideas.statoil.com

Szczecin Ship Repair Yard Gryfia JSC .....15www.gryfia.com.pl

T

Thuraya Datacom .......................................19www.thuraya.com/ip

U

United Airlines ...........................................13www.united.com

V

Vallourec & Mannesmann USA...................1www.vam-usa.com

W

Weatherford ..............................................4, 5weatherford.com

The index of page numbers is provided as a ser-vice. The publisher does not assume any liability for error or omission.

ADVERTISERS INDEX

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This page refl ects viewpoints on the political, economic, cultural, technological, and environmental issues that shape the future of the petroleum industry. Offshore Magazine invites you to share your thoughts. Email your Beyond the Horizon manuscript to David Paganie at [email protected].


B E Y O N D T H E H O R I Z O N

Many offshore operators argue that new regulations do not make their operations safer because their voluntary standards were al-ready superior to requirements set forth by the Bureau of Safety and Environmental Enforcement (BSEE). Nevertheless, compliance with that agency’s Safety and Environmental Management Systems (SEMS) regulation is not optional.

Since SEMS was announced just over a year ago, I’ve heard many offshore operators say they feel they have been meeting SEMS stan-dards for years. But upon further discussion, they admit that they may not have been doing everything to the degree that is now re-quired, especially in terms of documentation. And, as accountability moves higher up the chain of command, the need to make SEMS part of an enterprise sustainability management strategy has never been more important.

Adhering to the 13 elements required for SEMS compliance can be daunting. However, when it is done correctly, the compliance pro-cess should help organizations gain new insights and should have positive implications across their operations. So, while some may have thought that the SEMS deadline was much ado about nothing, it should have forced a re-thinking of how the 13 elements are docu-mented and used to drive strategic decisions.

From my experience, six best practices help simplify the process and drive effi ciency while ensuring the safe operation of offshore facilities.

First of all, treat all elements as parts of the sum; not independent-ly. Consider that each SEMS element is the spoke of a wheel, and that the purpose of the wheel is to prevent catastrophic events. Each spoke must remain intact and connected to the wheel in order for the wheel to accomplish its purpose. Information in one area often impacts another, so it must be easily accessible and shared among groups. Limited communication can limit success.

Next, involve stakeholders and experts throughout the asset life cycle. It is important to remember that if you comply with each stage of SEMS fully and correctly the fi rst time, not only will you ensure safety across your operations but also make it more effi cient to update and revalidate elements. Bad information leads to bad de-cisions. Information used on one element serves as a basis in other elements, so it is imperative that all the right people are involved in the right stages.

And remember, the life cycle of the whole process must be ac-curately identifi ed. When evaluating the safety of your operations, you must identify all possible hazards, including, for example, those from equipment labeled as “out-of-service.” As equipment ages, de-cisions must be made regarding repair, replacement, and decom-missioning. Simply turning off a machine does not remove it from SEMS coverage and mechanical integrity oversight. The equipment may no longer be in operation, but it remains an active threat until it

is properly disconnected, decommissioned, and disposed.Another best practice often ignored is to treat each risk assess-

ment as if it were the fi rst. Do not become overconfi dent in prior process hazard analysis (PHA) results. It is easy to blindly trust in your operations when you have gone several years without incident, but complacency can lead to catastrophe. After several rounds of re-validations, I see companies become overconfi dent in their PHAs, assuming that previous analyses were performed properly. A poor quality PHA that is revalidated incorrectly just compounds the prob-lem. If a retro-fi t is performed, the next revalidation should be a complete re-do.

You also must select the correct methodology at the start. Some facilitators select a risk assessment methodology based on what they perceive as the overall risk of a process. However, it is nec-essary to consider other variables such as: amount of knowledge and experience with the process based on its time in service; how many changes the process has undergone; the size of the process; and most importantly, the complexity of the process. For example, using a checklist or what-if approach on a complex system may not be appropriate.

And fi nally, beware of inconsistencies from fragmented business processes or outside contractors. Mergers, acquisitions, and joint ventures happen frequently in our industry. Compounded by the extensive usage of outside contractors and subcontractors, many divergent risk management processes are often in place. Reporting becomes fragmented and key information is only available at a site level. Legacy personnel tend to keep what they know in their own silo. As companies move to standardize process and procedures, they also should consider standardizing and centralizing SEMS documentation and systems.

I do not disagree with my offshore clients who say they already comply with SEMS’ operational requirements, but it is apparent that documentation will be the Achilles heel of most SEMS programs. SEMS compliance can be made more effi cient and expedited with a common operational risk management solution (ORM) that ag-gregates and leverages information across the enterprise, from one SEMS element to the next. ORM systems are built on the principles of continuous improvement, providing seamless communication from the operator up to the executives, with customized dashboards and reporting for every level of the company. This is how SEMS compliance can be ensured and transformed into a driver for opera-tional excellence.

Jeff Ladner Senior Director for EHS

and Sustainability SolutionsIHS

Best practices for SEMS compliance

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_____________

http://www.dril-quip.com





You’re in Good Hands with KBR Since 1947, KBR has been at the leading edge of offshore design,

engineering and construction. By bringing together the right people,

the right planning and the right projects, we continue to build

the infrastructure to get oil and gas resources to market … delivering

successful solutions around the world.

For more information, visit www.kbr.comK11158 © 2011 KBR, All Rights Reserved

We Deliver

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http://www.intermoor.com

http://www.infield.com

http://www.moduspec.com/SEMS

http://www.tgsnopec.com

http://www.rxt.com

http://www.offshoreenergygateway.com

http://www.audubon-engineering.com

http://www.seatrucksgroup.com

http://www.bakerhughes.com/africa

http://www.alliance-engineering.com

16TH EDITION


24 - 26 JANUARY 2012


ABUJA, NIGERIA

DO YOU WORK FOR AN OPERATING COMPANY?

• If you answered YES then your company qualifies for the Operators Partner Program!

• Send unlimited delegates for €2,000!


INTRODUCING THE OPERATORS PARTNER PROGRAM

In response to a growing concern from our supporters about the current economic climate and the need for exposure to new technology

applications in this sector, PennWell has developed the Operators Partner Program solely for operators in the offshore industry.

Offering a range of discounts and benefits to operators and their employees, enabling them to listen to key industry presentations, providing

relevant, real world technology applications, networking with peers and meeting with the supplier market, PennWell is committed to making

sure your company has the ability to stay abreast of key market trends.

VISIT WWW.OFFSHOREWESTAFRICA.COM FOR MORE INFORMATION.

��

SUPPORTED BY


OWNED & PRODUCED BY PRESENTED BY SUPPORTING PUBLICATIONS

DEEPWATER

TECHNOLOGIES FOR

WEST AFRICA

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PRESENTED BYOWNED & PRODUCED BY SUPPORTING PUBLICATIONS

16TH EDITION


24-26 JANUARY 2012


ABUJA, NIGERIA

DEEPWATER

TECHNOLOGIES FOR

WEST AFRICA

Pre Show Guide

SUPPORTED BY

NIGERIAN NATIONAL PETROLEUM CORPORATION

Register to attend today and save 40% on the Individual

Conference fee. Register before 14 January 2012 to

take advantage of the Early Bird offer.

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Dear Industry Colleagues

It is my great pleasure to invite you to Abuja, Nigeria for the Offshore West Africa

2012 conference and exhibition. This event marks the 16th year of Offshore West

Africa and, it is a home-coming for the annual event to Abuja after two years of

making the rounds in other West African countries.

As an annual event, the Offshore West Africa provides the technical forum for the

discussions of the advancement of oil and gas exploration and production activities

in the West African sub-region. The accompanying exhibition to the conference

will present the technologies that are available and applicable to the industry for the

exploitation of the abundant resources in the offshore West Africa.

As the chairman of the advisory board, I encourage you to attend the annual event

taking place in the hub of oil and gas activities in the sub-region and benefit from the

carefully packaged session topics touching on areas such as: lessons learned from recent field

developments and emerging technical solutions; new challenges in deepwater and understanding

key technological solutions; and perspectives on local content in the sub-region.

The benefits from the forum are not limited to the technical sessions; it equally provides networking

opportunities with leading players and stakeholders in the industry. This business opportunity for partnering in

the search for replicating hydrocarbon reserves in the deepwater becomes imperative in a world where the

price of oil and gas are stimulating industrial activities.

Once again, on behalf of the Offshore West Africa Advisory Board, PennWell Corporation and Offshore, the

world’s leading offshore oil and gas magazine, I am pleased to invite industry leaders from West Africa and

around the world to this exceptional forum to exchange ideas, share solutions, and learn from each other’s

experience.

Francis Alabo Ogaree

General Manager, International Venture Opportunities

Nigerian National Petroleum Corporation

Offshore West Africa 2012 Advisory Board Chair

How to Register

Register yourself and your colleagues as Individual Full Conference Delegates by 14 January 2012

and benefit from a 40% discount through the Offshore West Africa EARLY BIRD OFFER!*

Four Ways to Register:

�� Online: www.offshorewestafrica.com

�� Fax: Fax completed form to +1 888 299 8057 (U.S. only) or +1 918 831 9161

�� Mail: PennWell / OWA 2012, PO Box 973059, Dallas, TX 75397-3059

�� Email: Complete the Registration form and send to [email protected]

*To receive the Early Bird discount, payment must be received by 14 January 2012.

Visit www.offshorewestafrica.com for more details or call +1 918 831 9160

Invitation from Advisory Board Chair

2 | WWW.OFFSHOREWESTAFRICA.COM

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Sponsors & Supporters

OWNED & PRODUCED BY PRESENTED BY SUPPORTED BY

SUPPORTING ORGANIZATIONS

SUPPORTING PUBLICATIONS

SPONSORED BY

MEDIA PARTNERS

World ilsWorld's Oil Central

WWW.OFFSHOREWESTAFRICA.COM | 3

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http://www.africaoilandgas.com


http://www.nigerianoilgas.com





http://www.businessmonitor.com

Responding to the growth, demand and vitality of the region in West

Africa’s offshore industry, Offshore West Africa is returning to Abuja,

Nigeria for its 2012 conference and exhibition.

Offshore West Africa 2012 will be held on 24-26 January 2012 at International Conference Centre in

Abuja, Nigeria.

In its 16th year of providing a platform for information exchange and new business development,

Offshore West Africa is the region’s premier technical forum focused exclusively on West African offshore

exploration and production activity.

Offshore West Africa provides an annual forum that addresses the technical, environmental and business

challenges associated with oil and gas exploration and production industry within West Africa. The

conference provides a unique networking opportunity for attendees to share technology and address

issues with experts in their respective fields.

The Offshore West Africa technical program is developed with the help of an Advisory Board of

industry professionals who determine the content of the technical sessions and help solicit speakers.

The conference program will consist of two and one-half days of two concurrent tracks of technical

sessions. The sessions will focus on topics such as lessons learned offshore, field development case

histories, and deepwater challenges and solutions, based around the conference theme of “Deepwater

Technologies for West Africa”.

Why Attend Offshore West Africa?

The annual Offshore West Africa Conference and Exhibition remains the leading

source of information on new technology and operating expertise for this booming deepwater

and subsea market and is the most significant offshore Africa deepwater technology event in

the world.

�� A unique audience of the world’s leading executives, managers and engineers from major and

independent E&P companies focusing on West Africa’s specific requirements

�� A world-class two-track technical conference program

�� An exhibition showcase of technology and capabilities to support improvements in African

E&P operations

�� Expert opinions on the new issues, challenges and solutions associated with the expanding African

exploration & production activity

Who attends Offshore West Africa?

�� Industry leaders who seek information and emerging technologies in order to plan future operations

�� Multinational audience of senior executive decision makers from international and regional operators

�� Service and equipment suppliers

�� Engineering and construction companies

�� Contractors

�� Consultants

About Offshore West Africa


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Tuesday 24 January

11:00-12:30 Opening Plenary - Executive Hall

12:30-13:30 Exhibition Ribbon Cutting & Exhibition Tour - Exhibition Floor

13:30-14:30 Lunch - Delegate Restaurant - Africa Hall

14:30-16:00 Operators' Perspective - Executive Hall

16:00-17:00 Coffee Break - Exhibition Floor

Track 1 - Niger Hall Track 2 - Benue Hall

17:00-18:00 Session 1: Local Content 1 Session 1: Subsea Technology 1

18:00-19:30 Welcome Reception - Exhibition Floor

Wednesday 25 January

09:30-10:30 Session 2: Well Construction & Drilling Operations 1

Session 2: Field Development 1


11:30-12:30 Session 3: Geosciences Session 3: Subsea Technology 2

12:30-14:00 Lunch - Delegate Restaurant - Africa Hall

14:00-15:00 Session 4: Local Content 2 Session 4: Flowlines & Pipelines


16:00-17:00 Session 5: Well Construction & Drilling Operations 2

Session 5: Field Development 2

Thursday 26 January

09:30-11:00 Panel Discussion - Regional Local Content


12:00-13:30 Lunch, Awards Ceremony & Closing Remarks Delegate Restaurant - Africa Hall - Lunch Sponsored by Shell

Conference at a Glance


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Company Booth no.

African University of Science and Technology 125

Aftrac Limited* 62

Ansett* 62

Asbury International Limited 76

Atlantic Fluids* 62

Belzona Polymerics Limited 74

BGT* 62

Chesroc* 62

Damagix Group 134

Dantussynergyn Oil Ghana Ltd 51

Emval* 62

Epic Atlantic Limited / Colfax - Allweiler 138

Furmanite West Africa Ltd 133

Geoplex* 34

Halliburton 6

Hull Inspections / Hull Engineering 137

Hydratight Limited 66

Interspiro AB 39

Kay Global Limited 73

Laser Engineering and Resources Consultants Ltd* 62

Mansfield Energy Nigeria Limited* 65

MODEC Inc. 2a

Nestoil* 36

Nigerian National Petroleum Corporation 4

Nigerian Society of Engineers 128

OCO* 64

Oil Review Africa 127

Oilserv Nigeria Ltd.* 105

Oiltest* 35

PennWell Corporation 122

Petroleum Technology Association of Nigeria* 62

Petrolog Group* 63

Pipeline Professionals’ Association of Nigeria 129

Q-She Limited 39

Radial Circle Group 52

Redwise Maritime Services B.V. 71

Richardson Oil & Gas 75

Ropetec 61

Senacare 39

Shell Nigeria E&P, Ltd 1

Society for Underwater Technology 126

Spx Hydraulic Technologies 10

Tecon Oil Services Limited* 106

Tilone Subsea Limited 7

Total Upstream Companies in Nigeria 5

Weafri Well Services Limited* 104

Exhibitor List

Exhibitor List as of 30 September 2011

*As part of the Nigerian Pavilion


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P1P1P1P1P

P2PPP

P3PP3P3P P3PPP P4PP44P44 P5P5P555PP6P6P6P6P6

P19111

P8P8P8P8PP7P7P7

P9P9P9P9P P10PP1P1

P11P1PP1

P13P1P11P1

P15P111PP1

P17P111P1P

REGISTRATION

Pe

nn

We

ll

Nothing (Main Mapp)

1

SHELL NIGERIA

E&P, LTD

10

SPX HYDRAULIC

TECHNOLOGIES

100

101

102

103

Reserved

104

WEAFRI WELL

SERVICES

LIMITED

105

OILSERV

NIGERIA LTD.

106

Tecon

Oil

Servic

es

Limite

d

108

Reserved

11

Reserved

110

Reserved

111

112

113

114

115

116

117

12

Reserved

123

124

125

Reserved

126

Reserved

127

Reserved

128

Reserved

129

Reserved

13

130

131

132

Reserved

133

Furmanite

134

DAMAGIXA

GROUP

135 136 137

HULL

INSPECTIO

NS / HULL

138

EPIC

Atlantic

14

15

16

17

18

19

2

Reserved

20

2a

MODEC INC.

3

Reserved

31

32

33

34

Geoplex

35

OILTEST

36

Nestoil

39

Q-SHE

4

Reserved

40

42

43

5

TOTAL

51

DANTUSSY

NERGYN

OIL GHANA

52

RADIAL

CIRCLE

GROUP

53

54

55

Reserved

56

57

58

59

6

Halliburton

60

61

ROPETEC

62

PETROLEUM

TECHNOLOGY

ASSOCIATION

OF NIGERIA

(PETAN)

63

Petrolog

64

OCO

65

Mansfield Energy

66

Hydratight

Limited

67

68

69

6a

Reserved

7

TILONE

SUBSEA

LIMITED

70

71

REDWISE

MARITIME

SERVICES

72

73

KAY

GLOBAL

LIMITED

74

Belzona

Polymerics

Limited

75

RICHARDS

ON OIL &

GAS

76

ASBURY

INTERNATIO

NAL

77

78

79

8

80

81

82

83

Reserved

84

Reserved

85

86

87

88

89

9

90

91

92939495

99

Delegate Restaurant

Floor Plan


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1. Primary business activity:

� 02 Major Oil & Gas Operating Company

� 03 Independent Oil & Gas Company

� 04 National/State Oil Company

� 07 Drilling/Drilling Contractor

� 51 Consulting Company Engaged in

Projects or Providing Services to Oil and/

or Gas Companies

� 09 EPC/Main Contractor

� 39 Engineering Company

� 08 Subcontractor

� 10 Seismic Company

� 29 Pipeline/Installation Contractor

� 37 Supply Company

� 41 Marine Support Services

� 36 Equipment Manufacturing Company

� 38 Service Company

� 11 Ship/Fabrication Yard

� 12 Insurance or Financial Services

� 13 Educational Institution/Govt Agency

Research Lab

� 98 Other ________________________

2. Your job title:

� 40 Executive Management

� 41 Management

� 39 Engineering

� 43 Field Professional

� 45 Purchasing

� 48 Consulting

� 46 Geologist or Geophysicist

� 47 Other _______________________

3. Purchasing Role:

� Specify

� Recommend

� Approve

� Purchase

� None

First Name: Last Name:

Position:

Company:

Complete Mailing Address:

Postal code:

Country Code: Telephone: Fax:

Email:

Registration confirmation will be sent via-email, if a unique email address is provided above.

Conference Fees:1. Individual Delegate (Full Conference Registration)*

� Access to all Conference Sessions and Conference Proceedings

� Access to the Exhibition Hall

� Coffee Breaks in Exhibition Hall

� Delegate Lunch on Tuesday, Wednesday and Thursday (Ticketed)

� Conference Proceedings

� Paid By 14 January 2012 � € 870

� Paid After 14 January 2012 � € 1,445

2. Corporate Plan (10 delegates)*

� Access to all Conference Sessions

� Access to the Exhibition Hall, including Opening & Networking Receptions




� Paid By 14 January 2012 � € 10,390

� Paid After 14 January 2012 � € 12,220

3. Exhibitor Delegate (Exhibiting Company’s Only)

Exhibit booth staff can upgrade their registration to include access to

the conference at a discounted rate

� Access to all Conference Sessions and Conference Proceedings

� Access to the Exhibition Hall, including move-in and move-out

� Access to Opening & Networking Receptions




� Paid By 14 January 2012 � € 620

� Paid After 14 January 2012 � € 725

4. Operators Partner Program (OPP)

Unlimited Delegates - Open to Operators only. For further details please

visit the Registration page on www.offshorewestafrica.com � € 2,000

5. African State Oil Companies & Other Government Agencies

� Access to all Conference Sessions

� Access to the Exhibition Hall, including Opening & Networking Receptions


� Delegate lunch on Tuesday, Wednesday and Thursday (Ticketed)


� Paid By 14 January 2012 � € 620

� Paid After 14 January 2012 � € 725

6. Single Day Conference Delegate

� Access to all Conference Sessions on the corresponding day

� Access to the Exhibition Hall, including both the Opening & Networking

Receptions


� Luncheon on corresponding day (Ticketed)

� Tuesday � @ € 735

� Wednesday � @ € 735

� Thursday � @ € 735

7. Exhibit Visitor

Pre-registered visitors FREE (Deadline to pre-register January 18, 2012, after

January 18, 2012 register onsite).

� Access to the Exhibition Hall, including Opening & Networking receptions,

Coffee breaks in Exhibition Hall

Free before 18 January 2012 �

Paid after 18 January 2012 � € 20

8. Additional Lunch Tickets (for non-delegates)

� Tuesday � @ € 50/day

� Wednesday � @ € 50/day

� Thursday � @ € 50/day

TOTAL PAYMENT

(In Euros only) = €

For Information on

corporate packages,

contact Registration

Phone: +1 918-831-9160


3 ways to register:Pre-register on line before

18 January 2012.

Register on site after

18 January 2012.

1Fax:

Direct: +1 918 831 9161

Toll-Free (US only):

+1 888 299 8057

2Website:

www.offshorewestafrica.com

3Mail:

PennWell C&E Registration (OWA)

P.O. Box 973059

Dallas, TX 75397-3059 USA

For questions please call:

Phone: +1 918 831 9160

Toll Free (US only):

+1 888 299 8016

*Your full-price registration fee includes a one-year paid subscription to Oil & Gas Journal (US $69 value).

Method of Payment: � Check enclosed payable to Pennwell/OWA 2012

� Wire (Wire information will be provided on invoice) Credit Card: � Visa � Mastercard � AMEX � Discover

Credit Card Number Expiry Date

Full Name (as it appears on card):

Card Holder Signature: Date:

Payment must be received prior to the

conference. If payment is not received by the

conference date, the registration fee must be

guaranteed on charge card until proof of

payment is provided. Make check payable

to PennWell/Offshore West Africa 2012.

Cancellation: Cancellation of registration

must be received in writing. Any individual,

exhibitor or corporate registrations cancelled

before 14 January 2012 will receive a 50%

refund of registration fee. After 14 January

2012 no refunds will be permitted.

Substitutions may be made at any time by

contacting the registration office In writing.

(Required for credit card payment)

�

REGISTRATION FORM

24 - 26 JANUARY 2012


ABUJA, NIGERIA

OWAPSG12Please use this promotional code when registering

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OS_20111201_Dec_2011

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