THE OFFICIAL 2008 OFFSHORE TECHNOLOGY CONFERENCE … · career insights and career management for...

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THE OFFICIAL 2008 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER

OTC .08SHOW NEWSPAPERD

AY 3

Petrobras briefi ng yields morequestions than answers

Next Wave program offers careeradvice for young professionals

RELIANT PARK :: HOUSTON, TEXAS USA WEDNEDAY 7 MAY 2008

Our energy is your energy.

Today Dmitry Medve-dev, chairman of the board of directors of Gazprom, enters offi ce as Russia’s new president, ushering in a not-so-new era of government-controlled capitalism for both the nation and the gas giant. Gazprom has fl ourished under Vladimir Putin’s presidency. In 2001, Pu-tin began to assert control over the company by fi ll-ing key positions with as-sociates from his hometown of Saint Peters-burg. Under his leadership, the government gained majority control of the company in 2005. Under Putin’s watchful eye, Gazprom has become the largest natural gas producer in the world and Russia’s largest company.

Gazprom is now 19th on the Forbes Glob-al 2,000 list, which covers the largest publicly traded companies, posting the third-highest profi ts at $23.3 billion with the fourth-highest market value at $306.79 billion—both num-bers have exponentially increased over the past seven years under Putin’s rule. I fi nd it ironic that US-based ExxonMobil, the most profi table company on the list, is so loathed by most American citizens that the company was brought before Congress to defend its earnings while Gazprom is so loved by most Russians that the general populace elected its chairman as president of the nation.

Due in part to Gazprom’s growth, Rus-sia has become the single largest mineral energy supplier to the European Union (EU), providing 30% of the EU’s oil imports and roughly 44% of its gas imports. The depen-dence on Russian supplies has caused some concern among members of the international community. Gazprom’s recent gas row with Ukraine, which sits on the main transit route for Russia’s gas exports to Europe, echoes a 2006 dispute in which the company cut off all gas to the Ukraine because Kiev had refused to agree to a much higher price for supplies. The result was a wave of gas shortages across Europe. The most recent dispute was quickly resolved, and supplies to the EU re-mained steady; however the disagreements raise questions about Russia’s ability to use energy supplies as a political tool.

In a bid to provide more gas to the EU, Russia aims to build the South Stream pipe-line, a project being jointly developed by Gaz-

FromGazprom with love

Krista H. Kuhl, Technical Editor,World Oil

Continued on page 31

Th e Next Wave program for young pro-fessionals has a full day of keynote speakers, panel and breakout sessions scheduled today. Th e program was established in 2006, and about 300 young professionals attended the half-day session. Th at fi gure rose to around 400 in 2007 when the program was expanded to a full day. Th e Next Wave organizers are ex-pecting attendance to increase again this year.

Th e program was established to recognize the importance of young professionals to the future of the oil and gas industry. Using OTC board recommendations, a leadership team comprised of young professionals represent-ing the OTC societies was selected from the previous leadership teams and the large pool of volunteer commitments received after the 2007 event. As the program grew, the Next Wave leadership team became more formal-ized as a committee and co-chairs were select-ed for the 2008 and 2009 programs.

Th e 2008 co-chairs are Matt Boyd, Senior Geologist at Southwestern Energy Company, and Nigel Hicks, Geophysicist for Chesapeake Energy Corporation. Th e 2009 program co-chairs are Basil Adams, a power systems en-gineer with Chevron, and Jonathan Rhoads, Marketing Manager for National Oilwell Varco (NOV).

Th e Next Wave is designed to provide career insights and career management for young professionals 35 years and younger who are looking to grow their roles within the off shore E&P industry.

“Th e Next Wave event is a petroleum indus-try event and not strictly an off shore petroleum industry event,” Mr. Hicks said. “It is meant to reach out to all young professionals in the petro-

leum industry with their various backgrounds.”“Th e event is for early career professionals

interested in the energy industry, and more specifi cally in the off shore energy industry,” Mr. Boyd said, “but also for those who want or may already have a career in the inshore industry. Th e topics are going to be relevant no matter what type of asset an individual is working. It is really about managing a profes-sional career in the energy industry.”

Young professionals attending the Next Wave event benefi t by listening to the pro-gram’s keynote speakers and panelists as they share their views and expertise on a variety of relevant topics that change with the industry. Additionally, young professionals attending the breakout session have the opportunity to closely interact with small groups for discus-sions on more detailed topics.

“Th e Next Wave is a fantastic opportu-nity for young professionals to gain valu-able information shared by our expert key-note speakers, panelists and facilitators,” Mr. Hicks said. “It has impacted my professional life in a positive way by allowing me to inter-act with a great deal of people from a variety of technical and international backgrounds through planning the event and meeting the many attendees.”

By Perry A. Fischer

In a unique question and answer ses-sion at OTC, six Petrobras executives assembled strictly for the purpose of an-swering questions from the press—no prepared message or presentation was given. Before proceeding further, howev-er, a word is needed about how the most recent spate of interest by the press in Brazil’s subsalt discoveries came about.

In the February issue of World Oil, contributing editor Arthur Berman, who regularly writes the “What’s new in exploration” column, speculated on the magnitude of Brazil’s recent off shore dis-coveries. Based on information released by Brazil’s governmental licensing agen-cy, the ANP, Berman speculated that, if the Sugarloaf structure—including Tupi, Carioca and Jupiter discoveries—were all connected and hydrocarbon-fi lled, then the structure could hold a potential of 33

billion barrels of oil (see fi gure). Th e informa-tion was received by the oilfi eld community

correctly, in the speculative context that it was presented.

Regrettably, two months later, at a press conference in Houston, Har-old Lima, the head of ANP, created a fi restorm when he quoted Berman’s ar-ticle as meaning that Petrobras had defi -nitely made such a discovery, without giving all the caveats and precautions of the speculative nature of the reserves number. Suddenly, the popular press thought that a 33 billion barrel discov-ery had been made, and the phone of this writer, and Mr. Berman, would not stop ringing. Brazil national television featured the story, and Petrobras stock shot up.

So, it was sort of understood that most of the press wanted to get better answers on the reserves estimates from the subsalt discoveries. Guilherme Es-


Matt Boyd (left) is a senior geologist

at Southwestern Energy Co. and a

2008 Next Wave co-chair. Nigel Hicks

(right) works as a geophysicist for

Chesapeake Energy Corp. and serves

as a Next Wave co-chair.

Fig. 1. If the huge structure in red were connected,

of good quality rock and hydrocarbon fi lled, it

would be, “very huge possibility,” said José Sergio

Gabrielli de Azevedo, the Petrobras president.

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WEDNESDAY 7 MAY 2008 – PAGE 3

OTC parties, receptions and fetes were in full swing Monday evening. Th e British Con-sulate and UKTI held court at the Hilton Post Oak while unveiling a new marketing strategy for continued development of the UK Continental Shelf. MCS celebrated 25 years of existence with Guinness, champagne and hearty conversation at Maggiano’s. Friede Goldmon entertained friends on the roof of the Westin Oaks, off ering a lovely view of the city. Th e Canadian Consulate promoted Canadian networking downtown at the Aquarium, with Consul General Norris Pettis overseeing the proceedings. Meanwhile, at the Intercontinental, the Dutch Consulate hosted a lovely gathering. Down at the jazz club Sambuca, Honeywell Analytics plied their

guests with beef tenderloin, Gulf shrimp and generous pours of red wine. Are you host-ing a wild fandango? Is the bar open, are the guests dancing, are people smiling? If that’s

case, send photos from your event to the nightlife gurus here at the OTC show daily, Billy Th innes ([email protected]) or Mark Peters ([email protected]).

Nightlife report

By Billy Thinnes

Tuesday morning’s industry breakfast re-inforced the conventional wisdom that it is currently a good play to be involved in the energy business in China. Th e sold out session explored commercial opportunities in China’s off shore oil and gas sectors. While early rising OTC attendees consumed biscuits and gravy and pounded cups of coff ee, offi cials from Chi-na regaled the audience with remarks chock full of data illustrating how China has emerged from sleeping giant to global superpower.

According to Jin Ju, Minister Counselor, Embassy of the People’s Republic of China to the US, China’s energy supply capacity has been remarkably enhanced.

“In 2006, China’s output of primary energy equaled 2.2 billon tons of standard coal, rank-ing second in the world,” Mr. Jin said. “Crude oil increased to 185 million tons, ranking Chi-na the fi fth largest oil producer in the world. Plus, the installed capacity for electricity gen-erated reached 600 million kilowatts.”

While Mr. Jin’s numbers support the con-cept of China’s increased supply capacity, questions still linger in regard to the country’s

overall energy strategy. To assuage such crit-ics, Mr. Jin said, “China will develop its in-dustry sector by relying on domestic resources and increasing domestic production, all while opening up to the outside world.

“We believe that China’s energy develop-ment will bring opportunities for other coun-tries, expand the global market and make positive contributions to the world’s energy stability and security.”

Since this is the OTC, Mr. Jin came armed with off shore statistics that had that respectful crowd slightly surging forward in their seats. Recent numbers show that China’s off shore oil output is 27 million tons, with 58 off shore oil and gas fi elds in operation by the end of 2007. Of these, 30 had foreign investment.

“Foreign companies have played an impor-tant role in the exploration and development of off shore oil in China,” Mr. Jin said. “Twen-ty-eight companies from 11 countries are cur-rently implementing 44 contracts in China.”

Th e total accumulated investment by for-

PublisherMark [email protected]

EditorBilly [email protected]

OTC ContactsJim KlingeleMargaret Watson

Publisher, World OilRon Higgins

Editors, World OilPerry A. FischerVictor SchmidtDavid M. CohenKrista H. KuhlKatrina BoughalMark Tran

Contributing EditorsBuddy IvesJerry Greenberg

Design and LayoutChris Valdez

Corporate DesignerAmy Dodd

Artist/IllustratorDavid Weeks

Manager–Advertising ProductionCheryl Willis

Director–ProductionSheryl Stone

SalesWorld Oil Sales Staff

John D. “Rusty” Meador,President/CEOMark Peters, Vice PresidentRon Higgins, Vice PresidentPamela Harvey,Business Finance Manager

Part of Euromoney Institutional Investor PLC. Other energy group titles include:Petroleum Economist

GULF PUBLISHING COMPANY

Publishers of and .

OTC .08SHOW NEWSPAPER

published by .

www.WorldOil.comwww.HydrocarbonProcessing.comwww.GulfPub.com

The offi cial Schedule of EventsFor more detailed information about each day’s sessions and events,pick up an offi cial OTC program or visit www.otcnet.org.

Wedneday, 7 MayRegistration .......................................................................... 7:30 a.m.–5:00p.m.Breakfast Session ................................................................7:30 a.m.–9:00 a.m.Pavilion and Stadium Exhibition ........................................8:00 a.m.–5:30 p.m.Coffee in Pavilion and Stadium ........................................................... 8:00 a.m.The Next Wave ....................................................................8:30 a.m.–4:30 p.m.Reliant Center and Outdoor Exhibition .............................9:00 a.m.–5:30 p.m.Energy Roundtable ............................................................9:30 a.m.–11:45 a.m.Technical Sessions ............................................................9:30 a.m.–12:00 p.m.Topical Luncheon ............................................................. 12:15 p.m.–1:45 p.m.General Session.................................................................. 2:00 p.m.–4:30 p.m.Technical Sessions ............................................................. 2:00 p.m.–4:30 p.m.

Foreign investment is notablein China’s offshore industry

By Mark Tran

Veteran polycrystalline diamond company adds nanostructured thermally stable diamond technology to innovative line of products

US Synthetic, an operating company of the Dover Corporation and the leading provid-er of Polycrystalline Diamond Cutters (PDCs) for the oil and gas industry, and Los Alamos National Laboratory (LANL) in Los Alamos, N.M., a multidisciplinary research institution operated by Los Alamos National Security, LLC for the US Department of Energy, today announced an exclusive license agreement that will grant US Synthetic rights to nanostructured thermally stable Diamond Silicon Carbide (Di-amond-SiC), originally developed at LANL.

Th rough this agreement, US Synthetic can use and develop thermally stable Diamond Si-C across a broad range of applications, in-cluding industrial bearings, wire drawing dies, oil and gas wear parts, heat sink devices used in silicon-based electronic devices, and other industry applications. Th rough this exclusive agreement, US Synthetic customers will now have access to innovative technology that is thermally stable, tough, and extremely wear-resistant under high temperatures.

“Th e thermal stability, high thermal con-ductivity, overall toughness and extreme du-

rability of diamond silicon carbide makes it a perfect solution for extending the functional life of any tool,” said Dr. Yusheng Zhao, a staff scientist and team leader at the Los Ala-mos Neutron Science Center (LANSCE) at LANL. “US Synthetic has been a tremen-dous partner to work with in developing an ultra-strong, diamond-based material that has toughness similar to tungsten carbide.”

Th e diamond silicon carbide material is prepared under high-pressure, high-temper-

ature (HPHT) liquid-phase sintering using proprietary US Synthetic technology. Th e early stages of development are showing posi-tive results in thermal stability and wear re-sistance. Th e nanostructured diamond silicon

US Synthetic signs exclusive license agreement with Los Alamos

Fig. 2. US Synthetic proprietary cubic

press.

Fig. 1. SEM micrograph of a typical

Diamond-Silicon Carbide (D-SiC)

composite.



Place your ad today.Advertising closes May 12, 2008.Contact Ron Higgins at +1 (713) 520-520-4406 [email protected]

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OTC .08DISTRIBUTED TO ALL OTC ATTENDEES

Steven Graham, OTC, Don Vardeman,

Chairman OTC .08, Jiping Zhou, VP of

China National Petroleum Corp. and

Mark Ruben, OTC,share a moment on

the fl oor.

WEDNESDAY 7 MAY 2008

By Katrina Boughal

On Monday, Alison Scott, Deputy Minis-ter of Energy for Nova Scotia, discussed Nova Scotia’s interest in attracting and encouraging E&P companies to begin work in off shore Nova Scotia.

Beyond well-known Sable Island, off shore Nova Scotia is not well understood. However,

seismic data shows that the same geologic structures that occur in productive basins also exist in off shore Nova Scotia. Th e government of Nova Scotia has devised four strategies to attract more oil companies to the area: new exploration and investment in geoscience, new policy development, improving regula-tory effi ciency and better marketing.

In the next 12 to 18 months, the gov-

ernment of Nova Scotia will be working to commission detailed play analysis studies. Al-most $25 million is potentially available for exploration funding, and once completed, the work will be immediately available to the public online at no charge. Nova Scotia’s goal in investing in geoscience information is to put new geological ideas in front of current and potential investors.

Nova Scotia has also removed the require-ment for fl ow testing on wildcat wells off -shore. Licenses are more fl exible and entry is at a lower cost. Nova Scotia is off ering a three-year evaluation period for exploration endeavors, and has cut the minimum bid from $1 million to $500,000. Nova Scotia is giving companies up to 150% credit on the fi rst three years of exploration, and allowing companies to walk away from exploration after the three year period if they choose to abandon the area, losing only their deposit of $500,000.

“Th is new approach rewards early explora-tion and encourages smaller, less capitalized companies to explore off shore Nova Scotia, and generates ideas and new opportunities for all,” Ms. Scott said.

Th e current call for bids is open until June 30 for one light oil and one gas parcel. Th e government of Nova Scotia has introduced an economic scoping model online for gas devel-opments for investors, and Ms. Scott noted that a summary of opportunities in off shore Nova Scotia is available in a November 2007 supplement to World Oil.

Nova Scotia is also interested in improving its regulatory effi ciency. Yesterday, Dave Kop-person, Vice President, Off shore East Coast Canada for EnCana, discussed how pleasant working with Nova Scotia has been in En-Cana’s Deep Panuke prospect.

“Th e environmental review of the project from the oversight of the Canadian Environ-ment Assessment Agency, the review of the project development plan by the Canada Nova Scotia Off shore Petroleum Board and the review of the project’s pipe line applica-tion by the National Energy Board all took place essentially concurrently.

“Th is smooth and greater effi ciency and eff ectiveness shaved months, if not years, from the regulatory review cycle, and helped to show Encana that things could be done in Nova Scotia,” said Kopperson.

Th e Nova Scotian regulatory review pro-cess, which was estimated to take about 36 months, only took 11 months to complete, speeding EnCana’s entrance into the off shore environment. EnCana is projecting that fi rst gas from Deep Panuke will be in 2010.

“Th at was an important piece of work and I applaud the regulator and all the regu-latory authorities,” Mr. Kopperson said in regard to the 11-month regulatory review approval process.

EnCana and Nova Scotia also enjoy a posi-tive relationship with a strategic agreement between the off shore project developer and the government about matters related to local benefi ts to the province.

“We are proud to refl ect on the positive economic impacts that the project will have, and in fact is already having, in Nova Scotia. We estimate that over the life of Deep Panuke,

Nova Scotia attracts offshore investors like EnCana

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ATR GROUP ACQUISITIONATR Group has acquired Bridon Internation-

al Ltd.’s lifting services division. The acquisition adds a new dimension to ATR Group with the introduction of on- and offshore inspection and certifi cation services to ensure compliance with various regulations. It also signifi cantly expands on ATR’s existing range of specialist lifting equipment and accessories, supplied for both rental and sale to the offshore operations and maintenance market.


By David Michael Cohen

Drilling company Transocean has equipped two of its drilling platforms with a new thruster power supply system that improves reliability of power to the vessels’ dynamic po-sitioning thrusters while saving up to almost a third of fuel costs.

At the Siemens Energy booth (1117) on Tuesday, power transmission and distribu-tion specialist Jürgen Moser described the new system, called Siplink and designed by Siemens and Transocean, to OTC attendees. Th e two vessels in which the new dynamic positioning power supply system has been in-stalled are Transocean’s Sedco 702 and Sedco 706 drilling platforms.

As off shore drilling platforms move into increasingly deep water, conventional mooring systems become more diffi cult to use, making DP the primary method to keep the platform directly above the drilling location. Platforms must be held in position not only against the wind and currents, but against the torque of the drilling drive unit. If electricity to the DP thrusters fails, the operator usually has about 45 seconds to bring power back before the drill string must be cut, causing millions of dollars in repairs costs, Moser said.

Conventional thruster power supply systems are of redundant design, with two separate pow-er networks on board, each with its own diesel generators that must be kept running at very low load. Th is is uneconomical because the die-sel engines seldom run at their optimal torque; it also increases engine wear. If a fault occurs in a conventional system, all the thrusters supplied by the failed 11-kV subnetwork lose power. Be-cause of the high inrush current of the trans-formers, the operator often must connect the generators to load several times, which can re-sult in a time of more than 60 seconds to restore full thruster operation, Moser said.

Th e new design supplies each thruster via two converters that are interconnected by a direct current link and are each connected to one of two independent power generator net-works. Th e two 11-kV subnetworks are con-nected via this DC link, but are electrically decoupled. If a fault occurs in one of the sub-networks, the DC link ensures that the thrust-ers are supplied with power from the other subnetwork. As a result, Moser said, the two Transocean vessels supplied by the new system are in a position to recover from a black-ship condition in as little as 18 seconds.

Th e power requirement of both medium-voltage subnetworks is measured continuous-ly in all operating states, and a failsafe energy bus automatically optimizes the load fl ow for each DC subnetwork.

Th e decoupling of the subnetworks allows one generator to continue operating normally if the other suddenly and dramatically in-creases or decreases its power output, whereas

this could have tripped a circuit breaker, caus-ing the generator to shut down, in a conven-tional system.

In addition to increased reliability, the new design allows fuel savings of up to 30% versus conventional power supplies, because only one diesel generator in each subnetwork needs to be run in a calm sea, whereas in the past two always ran in parallel in each sub-

network to ensure redundancy and maintain DP2 or DP3 status, even if their power was not needed at that time. Now the other gen-erators can be switched on only in rough seas or when higher power supply is required.

Th e new system also cuts maintenance costs for the diesel generators, because they can run at a much more favorable operating point ver-sus in conventional systems, where they run

continuously in the lower partial load range in which they are subject to high wear.

One of the two Transocean vessels with the new power supply design, the semisubmersible platform Sedco 702, has been operating off the coast of Nigeria since early 2008. Moser said the vessel, which is a refi t of a 30-year-old platform, has been using dynamic positioning alone to keep the vessel above the drilling location.

Improved reliability for dynamic positioning

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between 6.5 and 7.3 million person-hours working will be completed by Nova Scotians,” said Kopperson.

Nova Scotia is trying to make off shore Nova Scotia an attractive place to do business, and has already succeeded in EnCana’s eyes.

“EnCana is pleased to be developing the Deep Panuke natural gas project in Nova Sco-tia’s off shore. In EnCana’s view, Nova Scotia is a positive place to do business,” Mr. Kop-person said.

NOVA SCOTIA cont’d from page 4


Award winners personify distinguished serviceOTC honored two individuals with the

2008 Heritage Awards, recognizing them for providing distinguished service and signifi -cant contributions to the development of off -shore resources.

Pierre-Armand Th omas, Senior Vice Presi-dent, New Technologies Off shore for Tech-nip; and Gordon Sterling, a retired Shell Oil Co. executive who also served as 1998-1999

chairman of the OTC Board of Directors, received their Heritage Awards at the annual awards luncheon on Tuesday.

Mr. Th omas began his career with the Com-pagnie Française d’Entreprises Métalliques and remained there 13 years, ultimately work-ing as an engineering director. He then joined Technip Geoproduction (TPG), a subsidiary of Technip, as the deputy technical director.

In 1996, he was named the vice president of engineering and projects, and later became the deputy general manager with responsibil-ity for the technical and commercial perfor-mance of major projects. He then served as the CEO when TPG became a unit of the Technip Group and was appointed vice president of technology, innovation and risk management after the merger of Technip and Cofl exip.

Mr. Th omas is a graduate civil engineer of the Ecole Supérieure des Travaux Publics de Paris and of the Centre des Hautes Etudes de la Construction.

Mr. Sterling became a private consultant following retirement from Shell Oil in 2000 after 35 years in the off shore industry. He has worked extensively in the areas of off shore systems research, design, construction instal-lation and project management.

He was also the off shore manager of deep-water projects at Shell in the 1990s when a substantial number of the TLP and subsea systems were installed in the Gulf of Mexico.

Mr. Sterling has served as a board member and president of the Coast Oceans Ports and Rivers Institute of the American Society of Civil Engineers (ASCE). He represented ASCE on the OTC Board for eight years, serving as OTC chairman in 1998 and 1999. He also is an active member of the Society of Petroleum Engineers as a Forum and Workshop Chairman, and has been a guest keynote speaker for ASME.

Currently, he is a member of the supervisory board of INTEC Engineering, a consultant to John M. Campbell Co. and a member of the Board of Governors for Region 6 of ASCE.

Sterling received a Bachelor of Applied Sci-ence degree from the University of Waterloo in Ontario, Canada, in 1963, and a Master of Science in Civil Engineering from Lehigh University in Pennsylvania.

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For further information on UK Trade & Investment at OTC please visit www.ukatotc.com

Visit UKTI during OTCwithin the UK Group inHall C/D/E at Stand 2457.

Monday 5 MayChallenges Facing Brazil and Mexico

Tuesday 6 MayAfrica/Middle East Working withLead Operators

Wednesday 7 MayWorking with National OilCompanies/National Service Companies

Thursday 8 MayMarine & Wind Energy Seminar

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Get urgent, Indian Oil chairman tells industryTim Lloyd Wright, European Editor, Hydrocarbon Processing

Quoting Martin Luther King, J.F. Ken-nedy and the Bhagavad Gita, the chairman of Indian Oil Corp. said we need to urgently change the way we live—in a presentation in London that addressed peak oil, downshift-ing, localization and the twin catastrophes, as he sees it, of climate change.

After his remarks, polite conversation quickly resumed, desserts were served; a metaphorical orchestra, to use a grim mari-time analogy, “played on.” After all, this was International Petroleum Week, which in the past decade has had to get used to captains of industry telling it that the ship is, if not sink-ing, then listing alarmingly.

Lord Browne of Madingley in 2006 told IP Week dinner guests that, while oil supplies were “plentiful,” there was a “serious prob-lem.” Reserves were dislocated from interna-tional oil company (IOC) investment, a fact that had left the world precariously dependent on Russia, West Africa and the fi ve countries in the Persian Gulf.

Th is year, we had the remarkable speech by Sarthak Behuria during lunch at Th e Dorchester. Mr. Behuria presides over India’s largest company, which had $51 billion in revenues last year. Th e company is a pillar of the Indian nation-building project—which seeks to deliver Indians from the desperate poverty that affl icts the majority—to create a new middle class, and to end the country’s acute energy dependence. Today India im-ports 75% of its oil.

Politics. So in a country where many live on less than a $1/day, you might expect its leading entrepreneurs to have their noses to the grind-stone—too busy with GDP growth of 9% to be concerned with European preoccupations such as climate change and energy sustainability. At the least, you might expect to hear the argu-ments some US companies have used to deny ground to the Kyoto Protocol. If ExxonMobil feels it has to make the “threat-to-American-livelihoods” case against carbon pricing, then why not India, where the majority have yet to own a telephone or take their first vacation?

Instead, said Mr. Behuria: “We are con-fronted with the ‘fi erce urgency’ of a crisis that links our today and tomorrow. Th at crisis is climate change.”

“Government policies have to play a vital role in demand management and in adjust-ing tariff s and taxes in such a way as to ensure a smooth transition from fossil fuel econo-mies to alternative, renewable fuel regimes. . . . It amazes me that global climate change is viewed as a partisan issue. . . . Even the most basic ideas of conservation and effi ciency have been eschewed.”

Th e twin catastrophes of climate change, he said, were a real and present threat to the development of the emerging nations, and a future threat to the planet and mankind. “Why” he asked, “is it political suicide to sug-gest that we conserve energy?”

In his speech, he also recounted “demand shock”—a peak oil phenomenon that this Honorary Fellow of the Energy Institute said was akin to the “future shock” of futurologist Alvin Toffl er’s 1970s best-seller. ”Th e global economy, he said, ”faces a threatening pros-pect of an acute energy and resource squeeze that presents a defi ning moment and impacts our collective future.”

According to Mr. Behuria, the “global peak oil event” will change everything about how we live. No combination of alternative fuel systems now known will allow us to run what we are running, the way we are running it, or even a substantial fraction of it. “Th e writing on the wall is clear. We will have to change the way we live; we will have to downscale and rescale virtually everything we do.”

In his view, peak oil would manifest as a “bumpy plateau.” Markets and prices would wobble, international friction would increase, particularly around the places where oil resourc-es are. “As we slide down the Hubbert ‘peak oil’ curve, our frenetic eff orts rely on energy con-servation, alternative energy sources and new fi nds of traditional fossil fuel,” he said.

Carbon-intensity levels in the developed

world vastly exceeded per capita CO2 emis-

sions in today’s and tomorrow’s India, Mr. Behuria said.

As developed nations witness their share of global GDP dwarfed by the emerging world in the coming decades, it’s in all our interests that they never emulate our own levels of carbon intensity. Th e developed world must show leadership.

V i s i t TA M I n t e r n a t i o n a l i n B o o t h 3 3 0 5

EXTENDING THE TECHNOLOGY™

Let us show you how TAM’s inflatable and swellable packer applications are limited only by one’s imagination. On display will be our latest advances in swellable packers for intelligent wells, extended-reach wells and conventional well completions. www.tamintl.com

FREECAP®

Swellable Packers

Expro’s Tronic subsea connection systems are key to

enabling production in high-pressure deepwater environments.

Our range of Tronic high integrity subsea power and data

connection systems deliver high reliability in deepwater.

Together with our Matre subsea sensors, they offer Expro

customers a convenient and integrated scope of supply.

Make Expro your partner in Well Flow Management.

Find out more from exprogroup.com

Make the right subsea connection

Subsea UK Company of the Year 2008

Visit us at OTC booth 4329


Global Industries, Ltd. ,reports the Olympic Challenger, a new-build DP-2 multi-service, ROV, deepwater construction and diving ves-sel, will be ready for service in early July 2008.

Th e Olympic Challenger is a new-build 347 ft × 69 ft fuel effi cient, environmentally friendly Aker ROV 2 vessel. In addition to SURF capabilities, the vessel is suitable for subsea installations, marine construction for

fi eld development, IRM/MMO, ROV mis-sions and diving support.

Challenger’s design incorporates a “comfort class” and has accommodations for 100 per-sonnel. Facilities include 22 single-man state-rooms, 39 double-man cabins, all complete with satellite TV, phone, internet access and private toilets/bathrooms. Th e Challenger also has multiple offi ces, a galley, a hospital, day

rooms, conference rooms, a gymnasium, a sky lounge and various mission workrooms.

Th e vessel, additionally, is equipped with two moon pools and 1,000 sq meters of clear deck space. Th e ship will be outfi tted with a modular 60-metric ton vertical lay system and reeling system capable of handling rigid pipe, fl exible pipe and umbilicals. Further, it is equipped with an ROV hanger and a state-of-

the-art ODIM launch and recovery system, allowing the option of simultaneous deploy-ment of two ROVs over the side or through the dedicated ROV moon pool.

Th e Challenger also has a 250-metric ton, active heave compensated crane. A Hydrama-rine crane is designed with the capability of lowering up to 200 metric tons to a depth of 3,000 meters on its single crane line. Th e crane line can be “two-parted” to lower the full 250 metric tons. Rounding out the equipment are two Schilling ultra-heavy-duty, work class ROVs. Th e ROVs are rated to 4,000 meters of water and are Schilling’s latest 200 horse power vehicles complete with station holding capabilities and other modern subsea/ROV technology.

GLOBAL INDUSTRIES APPROVES CONSTRUCTION OF SECONDNEW VESSEL

Global Industries, Ltd., has approved the construction of a second $250 million new generation dynamically positioned combina-tion Derrick/Pipelay vessel for its worldwide off shore fl eet.

Th is decision is in line with Global’s growth plan for fl eet upgrades, geographic expansion and a broadened product line with an increas-ing focus on deepwater/subsea/SURF work. Th e new vessel is scheduled for delivery in April 2011, just 12 months after delivery of the Global 1200, its sister ship.

Th e vessel, designated the Global 1201, is a next-generation multi-purpose vessel designed for work in both deep and shallow water, with a high bollard pull allowing for pipelay with-out the need for supplemental tugs. With a length of 587 feet, the Global 1201 will have a pipelay system capable of operating in water depths to 10,000 ft. and handling up to 60-in concrete coated pipe.

Global Industries readies Olympic Challenger

Fig. 2. The Global 1201 will be able to

transit at speeds of up to 15 knots.

Fig. 1. The Olympic Challenger will be

ready for service in early July 2008.

SMOOTH FLOAT-OVER

Dockwise Ltd. is the parent company of the Dockwise group of companies (the "Dockwise Group"), one

of the world's leading integrated heavy lift services providers. The Dockwise Group is able to transport

the heaviest cargoes over vast distances. In addition, the Dockwise Group provides its customers with

high value added services such as engineering and project management, particularly in the transportation

and installation of offshore structures. Smooth float-over operations with our semi-submersible heavy

transport carriers, are illustrative of our capabilities in exceptional transport management. With a global

network of offices and agents, we provide an extensive service network to our clients. Visit us at OTC

2008 for a convincing float-over demonstration while enjoying your free coffee at our booth.

Want to know more? Just go to www.dockwise.com

VISIT USAT OTCHOUSTON, 5-8 MAY

B O O T HNO. 1663

EXCEPTIONAL TRANSPORT MANAGEMENT


SBM Offshore is SBM Atlantia,

Single Buoy Moorings, GustoMSC

and SBM Malaysia. We are a

global leader in offshore energy

infrastructure development.

sbmoffshore.com

It’s a big promise. And we keep it.


From subsea to onshore, Yokogawa has what you need – when you need it. Let our team of VigilantPlant® professionals help you to see clearly, know in advance and act with agility throughout your project’s lifecycle.

See our upstream solutions at booth #5577

What you need . . . when you need it.

Two of Cameron’s CAMFORCE Subsea Processing technologies – MARS (Multiple Application Reinjection System) and POS-Sibilities (Production Optimization Simula-tion Software) have been successfully utilized as part of the BP King multiphase pumping project in the Gulf of Mexico.

MARS serves as the interface between the subsea production tree and the processing

equipment modules (pumping, metering, separation or well stimulation) and has been described as a USB port for subsea produc-tion trees. Th e technology has been developed and supplied by DES (a Cameron company). Th e patented MARS system enables process-ing equipment modules to be installed on any subsea tree at any time and provides a universal interface.

POSSibilities software is used to compare numerous production optimization solutions and confi gurations throughout the life of the fi eld to determine an optimum solution.

Th e BP King project is the fi rst multiphase pump installation in the Gulf of Mexico and the fi rst fi eld application of both the MARS and POSSibilities technologies.

DES founder and managing director, Ian

Donald, says, “Th is is a double fi rst for us. We are delighted that BP chose POSSibili-ties software and MARS hardware solutions to both evaluate and enable this ground-breaking project.”

“In the King project, MARS off ered BP a low-risk method of gaining access to the well-stream. Th is was achieved without breaking into the existing fl owline system while mini-

mizing well downtime,” Donald added.Historically, installing processing hardware

on an existing wellhead, especially subsea, has been a high-risk and high-cost activity, where typical projects may have required fi eld shut-down, new hardware foundation and pipeline de/recommissioning.

MARS serves as a universal interface for all trees—topside and subsea, vertical and horizontal—and enables any processing equipment to be retrofi tted between the existing Christmas tree isolation barriers, eliminating the need for high risk/cost in-tervention to the fi eld architecture. MARS enables fl exibility and choice for production optimization in new and existing fi elds, pro-viding a universal work platform, low cost intervention, low risk intervention and cost-eff ective wellhead processing.

It also allows for multiple processing pos-sibilities on new and existing wells at any time in fi eld life. Th e system establishes the wellhead as the unit of production, enabling the connection of production optimization systems to be easily installed into the fi eld ei-ther on or off the Christmas tree. It can liter-ally facilitate “any process on any well” with minimal risk, including multiphase pumping, multiphase metering, fl uid sampling, sand management, separation, bulk water manage-ment and re-injection, raw seawater injection, pressure boosting, dehydration, chemical in-jection and HIPPS systems.

MARS works between existing isolation barriers without disrupting existing fi eld in-frastructure. Its design off ers many operation-al and HSE benefi ts, including elimination of environmental exposure of the reservoir and pipeline. In addition, it eliminates potentially hazardous and expensive diver operations.

Th e system works through the introduc-

MARS technologies utilized on BP King project

Less than it takes to boil a kettle, believe it or not. The new Shell Monotower, deployed in theNorth Sea, runs on just 1.2 kilowatts of power supplied by its own wind turbine and solar

panels. That’s the kind of innovation that makes small reservoirs economically viable – and just the kind of thing we’ll expect from you.

Right now we're looking for more people to join us, across engineering disciplines asdiverse as Well, Petroleum, Production, Facilities, Chemical, Mechanical,

Equipment, Process and Control Systems.

Can you apply a creative mind to some of the world’s biggest energy challenges?

For career opportunities with Shell, visit www.shell.com/careers/technical ➔ Job Search ➔ Region ➔ Americas

and quote ref. KTL266B.

Shell is an Equal Opportunity Employer

ENGINEERS / US LOCATIONS

IDEAS PEOPLE WANTED

Fig. 1. MARS deployment for BP King

project.



tion of a coaxial fl ow path insert into the top of the Christmas tree or the choke body, al-lowing well fl uids to be directed externally to a fl ow loop which houses a processing technology. Th e fl ow is returned through the Christmas tree and back into the existing fl owline infrastructure. Because the process-ing hardware is installed between the existing tree isolation barriers, MARS eliminates the need for expensive, high-risk well interven-tion, fi eld shut-down or fl owline decommis-

sioning, minimizing production losses.In addition to multiphase pumping, MARS

has been selected by Shell for subsea well stim-ulation operations in the North Sea and by Total for subsea multiphase metering in West Africa. Th e MARS technology has also been the recipient of several industry awards.

MARS and POSSibilities are two of the technologies included in Cameron’s CAM-FORCE Subsea Processing System which includes multiphase boosting, separation and other enabling technologies for the emerging subsea processing market. Utilizing Cam-

eron’s well-known expertise in the subsea production arena, CAMFORCE combines technology from some of the world’s most respected names to provide the strategic pro-cessing solutions.

An example of this is the CAMFORCE separation technology which is provided through Cameron’s Petreco Process Systems division. Petreco is an industry provider of custom-engineered process packages for sep-aration, desanding, water purifi cation and fi ltration of oil, gas, produced water and sol-ids. Petreco technology, in combination with

Cameron’s traditional subsea expertise, drives the two-phase, all-electric separation unit on the subsea fl oor.

Cameron’s CAMFORCE product line will continue to expand with the right balance of innovation and reliability as the subsea pro-cessing market continues to evolve. Th e key to this success will be the integration of fi eld-proven techniques with unique solutions as the demands for longer tie-back distances, improved recovery and fl ow assurance and reduced topside processing requirements con-tinue to grow.

Which way would you rather do your well interventions?

Welltec® World leader in rigless interventions

welltec.com/intervention.aspx

Booth # 4405 www.cudd.com

Ride the Wave of Innovation

CAMERON BP cont’d from page 12

INCREASINGLY GLOBAL,

DYNAMIC LNG MARKET

FORECAST

In the race to meet the world’s growing energy demands, natural gas “remains the favorite,” according to Linda Cook, an ex-ecutive director on the board of Royal Dutch Shell, speaking to energy industry stakehold-ers during CERAWeek in Houston. The Mid-dle East, normally thought of as an exporter, is now also a growing demand center. Natu-ral gas consumption there is expected to approach European levels by 2015. Looking elsewhere around the world, Ms. Cook iden-tifi es two emerging themes: 1) Many coun-tries are talking about importing LNG for the fi rst time. These include traditional exporters of natural gas such as Mexico, Canada and In-donesia; 2) LNG project developers in Egypt, Trinidad, Nigeria, Australia and elsewhere are being asked to reserve a certain percent of their natural gas for future domestic needs.

A NOTE ON THE US ECONOMY

The slowing US economy combined with high oil prices is expected to constrain growth in US consumption of liquid fuels and other petroleum products to just 40,000 bar-rels/day in 2008, according to the US Energy Information Administration’s recently updat-ed short-term energy forecast (www.eia.dov.gov). The government’s outlook over the next two years predicts “some easing” of the oil market balance due to increased production outside of OPEC and planned additions to OPEC capacity. Meanwhile, the Henry Hub natural gas spot price averaged $7.17/thou-sand cubic feet (Mcf) in 2007 and is expected to average $8.18/Mcf in 2008 and $7.95/Mcf in 2009. Total gasoline stocks for April 2008, the onset of peak driving season in the US, are projected to be 22.3 million barrels above last year and 18.6 million barrels above the fi ve-year average.

Fig. 2. CAMFORCE Subsea Separation

System.


Computational Flow AssuranceRisk Mitigation & Performance ImprovementFlow, Thermal, Stress3D Simulation Software & Services

• STAR-CCM+ • STAR-CD • STAR-CAD SeriesFor more information on Flow, Thermal & Stress Simulation, please visit: www.cd-adapco.com Or contact: [email protected] www.cd-adapco.com

Visit us at:

OTC 2008 Booth 5701

Pick up your FREE DVD:

3D Flow, Thermal and Stress

Simulation Solutions for the

Oil & Gas Industry

Baker Hughes Inc. receives two Spotlight awards for the third consecutive year

Baker Oil Tools received an award for its RAM Rotatable Self-Aligning Multilateral System. Th e system off ers a solution for ex-tended-reach multilateral wells where getting liners to the bottom may require continuous rotation. Th e system is the fi rst—and thus far, only—multilateral system that allows

continuous rotation of the lateral liner while simultaneously and reliably landing a comple-tion system that can mechanically support the lateral junction.

Th e system delivers reliable multilateral junctions for widely-used Level-3 and Level-5 completions. It provides mechanical support for, selective control of, and access to all lateral junctions that join cased and cemented main

bores with screened or lined openhole laterals in wells with commingled production.

Th e system was fi rst successfully installed on Alaska’s North Slope in 2007. An off shore installation is pending in the North Sea in early 2008, followed by applications in the Middle East.

Inteq, a division of Baker Hughes Inc., received an award for its MagTrak technol-

ogy. Th is technology is an LWD tool that provides a comprehensive range of mag-netic resonance answer products, including formation porosity, bound-fl uid volume, free-fl uid volume, permeability, hydrocar-bon detection and T1 and T2 distribution spectrums. Th e porosity measurement is not dependent on formation lithology, being based upon magnetic resonance technology,

and the service does not require a radioac-tive source. Th e service is available as a stan-dard 6¾-in. collar-based tool, fully combin-able with rotary steerable systems, and can be utilized in borehole diameters from 8⅜ in. to 9⅞ in.

MagTrak delivers real-time T2 distribu-tions. Th ese real-time answers empower the asset team to become more infl uential in the decision-making process to optimize wellsite

effi ciency, safety and hydrocarbon recovery. Real-time applications and benefi ts include identifying potential borehole problems by clay typing, earlier input to improve perfora-tion programs based on permeability index, identifying missed pay in low-resistivity for-mations, geosteering into production “sweet spots” and obtaining high-quality data in high-risk wells.

More Spotlight on New Technology award winners

Baker Oil Tools’ RAM Rotatable Self-

Aligning Multilateral System.

INTEQ’s Magtrak LWD tool.



Ask for a demonstration at the Vryhof OTC booth 2233.

Monitor your anchors every step of the way.

The Stevtrack Anchor Data Acquisition System safely secures your assets.

[email protected]

Dockwise is placing itself in the OTC spot-light with its fl oat-over deck installations. Th e global provider of heavy-lift marine transports and installation has shown that the fl oat-over deck installation is a competitive alternative for an off shore installation operation.

“Th e fl oat-over deck installation will im-prove workability and will be able to reduce costs considerably,” says Michel Seij, a project engineer at Dockwise. “Compared to installa-tion by a submersible crane vessel, the fl oat-over deck installation will excel.”

In recent years, Dockwise has off ered its cli-ents a full range of logistic services. Tradition-ally known for its ability to transport extremely large and heavy cargoes over vast distances, the company recently has been focusing on the improvements that can be made in installing platforms using fl oat-over techniques.

“We not only deliver extraordinary struc-tures from A to B, we also take care of the entire process from A to Z,” Mr. Seij says. “By looking at the chain of events from our client’s perspective, we can bring all of our knowledge and experience to the table, creating a seam-less, hassle- and carefree operation. Th is way, we are also able to reduce off shore integration costs for our clients.”

Mr. Seij continued his analysis by saying, “It is a competitive method to install plat-forms in areas where semisubmersible crane vessels are a rare commodity or where the in-tegrated deck weight has a larger weight than the available crane capacity. Th e number of barges and vessels outnumber the available semisubmersible crane vessels that are capable of lifting heavy topsides. Th ese provide the operator with more fl exibility and the ability to save costs.”

When multiple lift operations are needed, fl oat-over operations will reduce hook-up and commissioning costs.

“Th e single lift capacity of a fl oat-over deck installation exceeds the maximum ca-pacity of the semisubmersible crane vessels,” says Mr. Seij. “When heavy cargoes have to be installed, it can only be done at once by a fl oat-over deck installation.”

He points out that this installation method reduces the time required to execute off shore hook-up and commissioning, and it is safer because the fl oat-over deck installation can be designed in such a way that any single point of failure can be dealt with. For a fl oat-over operation only one vessel is required to trans-port the module and handle the fl oat-over deck installation. Th is avoids risks due to the alignment of scheduling a transportation ves-sel and the semisubmersible crane vessel.

According to Seij, the advantages of the

fl oat-over deck installation overrule any weak-nesses. One can think of a bigger spacing for a jacket slot, when compared to a lifted deck and the fact that the installation engineering needs to be executed in the early design phase, when the impact of the fl oat-over installation method is determined.

“Advantages such as improved workability, reduced jacket slot requirements and the fact

that standardization will reduce early com-mitment requirements, outshine any weak-nesses, he says. “Future developments will put those disadvantages right. We’ll be able to strengthen the fl oat-over deck installation on both a technical and an organizational level. Th ere are a number of alternatives available in the market to reduce the cost increase for fabricating the jacket and the module.”

He says that these alternatives are relatively new and the applications can be optimized to further improve the fl oat-over concept and make it even more competitive to lift installa-tions from a steel weight point of view.

Dockwise welcomes OTC attendees who would like to gain additional information about the aspects of fl oat-over operations and maritime heavy transport at Booth 1663.

Float-over deck installation offers fl exibility

QUICK MOVE RIGSIDM’s QuickSilver Rig is the latest innova-tion in quick moving drilling systems. Available in ratings of 1000hp, 1200hp and 1600hp, this innovative design allows the operator to be more competitive through economy of movement, safer operations and reduced rig up/rig down time. The QuickSilver is designed to RD/RU on a new location (within 100 mi.) in less than 48 hours. Elevated components are raised with hydraulic cylinders; no cranes are required. Additional features like IDM’s electronic driller, round-bottom mud tanks, and climate controlled driller’s cabin help make QuickSilver one of the fastest and safest drilling rigs available today.

If you need quick move rigs, make a quick call to IDM.

IDM Group/HoustonPhone: +1 281.447.9000Email: [email protected]

IDM Group/LondonPhone: +44 (0) 1895 876620 Email: [email protected] www.idmequipment.com

D R I L L I N G S Y S T E M S

IDM’s touch screen controls and electronic driller improve performance

All components requiring elevation are raised with hydraulic cylinders

See us at OTC BOOTH 2179

Fig. 1. The fl oat-over deck installation

shown here has matured rapidly in

the last couple of years.


Tim Davis, TAM International

Technology advancements in drilling and production are turning fi nancially unattractive prospects into valuable assets for off shore oper-ators all over the world. Many thin oil sections that could not be produced economically with a vertical wellbore are now being produced at profi table fl owrates by drilling horizontal and

multilateral wells. Initially, the primary way to achieve annular isolation was to cement pro-duction casing in place and then perforate. Although in some locations there has been suc-cess with this approach, annular isolation was usually less than desirable or not achieved at all. Without reliable annular isolation, the ability to compartmentalize the wellbore for effi cient reservoir management is lost. Additionally, the

ability to shut off potential water production gets complicated, if not impossible.

Over the past fi ve years, swellable-packer technology has gained wide acceptance as a reliable way to achieve annular isolation be-tween production casing and open hole. TAM International has developed the Fluid Reactive Expanding Elastomer Casing An-nulus Packer (FREECAP) product line to

achieve annular isolation, Fig. 1. Th is tech-nology has simplifi ed completion design and installation without sacrifi cing reliability. Th e typical completions that use swellable packers to achieve annular isolation are:

• Slotted and predrilled liners• Stand-alone screens with infl ow control

devices• Expandable screens• Gravel pack (including alternate-path

technology)• Smart well completions• Frac sleeves for multistage stimulations.By far the most common application for

openhole horizontal wells in unconsolidated to semi-unconsolidated sandstones is stand-alone screens. Th is approach allows the entire sandface to be exposed to a pressure draw-down. Th is in turn signifi cantly increases the productivity index as compared to a typical completion where the production liner is cemented in place and perforated. Th is ap-proach also eliminates potential near-wellbore damage which can occur during cementing and perforating operations.

As in any completion, there are critical areas that have to be addressed and annular isolation is one of them when dealing with a horizontal completion. Th ere are mechanical openhole packers that have been used with great success. Th ey require that the wellbore be in gauge at the setting depth. However, in horizontal wells, there are many occasions where it is desirable to underream the hole to allow for more run-ning clearance in case cutting beds cannot be cleared out. In this case, a mechanical packer is at a disadvantage with the increased gap be-tween packer OD and wellbore ID.

Swellable packers have the ability to swell more than 200% by volume. Th is means that

Achieving annular isolation with FREECAP

Fig. 2. Using swellable packers avoids

excessive pressure- and temperature-

induced stresses on the cement

sheath.

Fig. 1. The Fluid Reactive Expanding

Elastomer Casing Annulus Packer

(FREECAP) swellable packer is a

valuable application in horizontal

completions.

TIRED OF WIRE ROPE? READY TO SWITCH? Samson’s expertise makes it easy…

BOOTH 9301 IN THE PAVILION

HIGH PERFORMANCE SYNTHETIC ROPES

www.samsonrope.com

6646 Complex Drive • Baton Rouge, LA 70809 • 225-906-2343 • [email protected]

• The Genuine Article. Developed and patentedby Orion, Aurora is the world’s first redundantMagnetic Level Indicator. It’s engineered for toughapplications.

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Orion’s Aurora magnetic level indicators take on theworld’s most demanding liquid level applications.

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Booth #1505



IDM Group has a construction contract withUnion Drilling, Inc. to provide a 1,600 hp AC QuickSilver drilling system. Upon de-livery, expected in June of this year, the rig is slated for operations principally in Pennsylva-nia targeting the Marcellus Shale formation.

Th e QuickSilver drilling system is the lat-est innovation in quick-moving drilling rigs. Available in ratings of 1,000 hp, 1,200 hp and 1,600 hp, this design allows the opera-tor to be more competitive through economy of movement, safer operations and reduced rig-up/rig-down time. Th e drilling system is designed to rig down, then rig up on a new location—within 100 miles—in less than 48 hours. Elevated components are raised with hydraulic cylinders; no cranes are required.

“Th is rig has been designed to allow easy retrofi tting of our QuickSkid drilling system,” says Byron Dunn, IDM’s chief executive of-fi cer. “QuickSkid technology features the ability to reposition or “skid” the rig on an integrated rail track in single or bi-directional

planes from the initial well to other positions along the skidding track.”

Th e skidding system eliminates the need for multiple rig moves where time and space are critical issues, especially in fi eld develop-ment programs and where environmental considerations may limit operational access to specifi c locations.

“We have a history of horizontally drilling

the deeper formations in this area. Substan-tially more powerful rigs, like those we use in the Barnett Shale in Texas, may drill long horizontal sections in deeper formations more effi ciently, but their design is not well-suited to the Northeast,” says Christopher D. Strong, Union Drilling’s president and chief executive offi cer. According to Strong, the cost of fl atten-ing uneven terrain for larger rig locations and

time consuming rig moves due to infrastruc-ture constraints (such as low bridge heights and weight limitations) often can more than off set the advantages of having a larger rig.

“We have worked closely with IDM en-gineers to modify their standard quick-move drilling system, so that later we can accom-modate skidding drilling applications as they arise,” Strong says.

an 8.13-in.-OD swellable packer on a 7-in. production liner can swell and seal in an 8.5-in. open hole that was underreamed to 9 in. under eccentric conditions. Th e packers can be manufactured directly on the base pipe and installed as an integral part of the comple-tion, or they can be manufactured to slip onto the base pipe. Th is is especially convenient in the case of sand screens where a one-foot packer can be placed on the sand-screen blank section for fl uid-diversion purposes.

In addition to the above applications, swellable packers have proven to be valuable in enhancing primary cement jobs. Off shore drill-ing can be a diffi cult environment to achieve a good primary cement job. A number of factors may contribute to this, including highly devi-ated wellbores, a small window between pore pressure and frac pressure, and eccentric fl ow profi les that may leave behind mud channels. Even the best cement job is subject to excessive stresses, caused by pressure and temperature cycles, which may create cracks in the cement sheath, Fig. 2. Th ese cycles in pressure and temperature may also create a microannulus which may cause the loss of annular isolation. A swellable packer can protect the cement sheath from the forces induced by pressure and temperature cycles, or it can fi ll voids from a microannulus or mud channel.

Swellable packers have also been used as a long-term backup to the primary liner-top packer. Th is can prevent costly interventions necessary to repair a leaking liner-top seal, es-pecially in remote subsea completions. Long term well integrity is becoming an integral part of the well-design phase and swellable packers are proving to be a valuable tool in this area.

IDM building new rig for Union Drilling

Magnetrol offers more thanone measurement solution.

Because there’s morethan one type of liquid

INTERFACE

Booth #1504

®

Worldwide Level and Flow Solutionssm

nowing the position of your process

interface is essential for product

quality and operations efficiency. But

interface measurement can pose one of the

biggest challenges in liquid level sensing.

That’s why Magnetrol—experts in level

and flow instrumentation for over 75 years—

offers interface solutions in seven different

product technologies. Whether you monitor

liquid/liquid, liquid/solids, foam/liquid or

vapor/liquid interfaces, if there’s an inter-

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5300 Belmont Road • Downers Grove, IL 60515 • 630-969-4000 • magnetrol.com

K

Fig. 1. IDM’s QuickSilver drilling

system.

FREECAP cont’d from page 20


NEW ALTAMIRA FABRICATION YARD PROVIDES DIRECT ACCESS TO SEA

J. Ray McDermott recently expanded its Americas fabrication facilities portfolio with construction of a new deepwater fabrication yard in Altamira, Mexico, with direct, unre-stricted access to the open sea.

“We chose the Altamira site because we needed a deepwater-access facility to serve our

key customers in the region,” says Jack Mc-Cormack, Senior Vice President, Global Ser-vices and Engineering. “Th e traditional yards in Mexico are on the Panuco River, where the water is shallow at 20 ft. Also, there are bridge obstructions, limiting the height of fabricated structures being transported from those yards. Th e Port of Altamira is the logical choice for our new facility. It has direct, unrestricted ac-

cess to the Gulf of Mexico (GOM), and the water depth in the port is some 148 ft. It’s ideal for what we want to do in the future, in terms of fabricating deepwater facilities.”

With approximately a 2-mile tow to open water in the GOM, the yard’s location in the Port of Altamira and state of Tamaulipas is a strategic decision for the company. Th e Mexi-can facilities location off ers a skilled, competi-

tive local labor force right on the shores of the Gulf.

“Initially, we plan to target projects for Petró-leos Mexicanos (PEMEX),” says President and CEO Bob Deason. “In the long term, we hope to win work for export to the Gulf of Mexico, Caribbean, South America and West Africa.”

In December 2007, J. Ray McDermott was awarded its fi rst contract for the Altamira fa-cility by PEMEX Exploración y Producción, Northeast Marine Region. Th e contract called for fabricating the Maloob-C Drilling Plat-form for the Ku-Maloob-Zaap fi eld in the Bay of Campeche, Mexico, in 270-foot waters.

Fabrication work on the drilling platform started in April this year, and is expected to involve more than 275 craftsmen and pro-fessionals. Designed to sustain 18 wells, the drilling platform will have a 2,903-metric ton eight-legged jacket and a two-level deck weighing just over 2,268 metric tons, with more than 2,994 metric tons of piles. Th e contract is expected to be completed in the fi rst quarter of 2009.

“Th e Altamira facility is a bright spot on the company’s long-term plan,” says Juan Manuel Pineda, the company’s Vice President in Mexico. “Th e progress of its construction has been rapid since we broke ground in Janu-ary 2007. Key features include a quayside wa-ter depth of 40 ft, a 985-ft bulkhead and two 328-ft skidways.”

Under the lease agreement, J. Ray McDer-mott has the capability to extend the bulk-head length to 3,280 ft, which will provide the space needed to execute deepwater fl oat-ing hull assemblies at Altamira.

“We will also begin work in the second quarter of this year to double the capacity of our existing skidways and we are actively plan-ning the next phase of the facility’s expansion for 2009. Th at expansion will include build-ing a heavy-lift device to enhance our capabil-ity to support deepwater fl oating production projects for the Gulf of Mexico and Atlantic,” Pineda continued.

With a 30-year partial concession agree-ment with the port authority of Altamira, the fi rst phase includes two skidways with bearing capacities exceeding 10,000 metric tons. Th e second phase will add to the existing struc-ture with rolling mills, assembly buildings, skidway extensions, a heavy lift device with a capability of up to 22,680 metric tons to sup-port integration activities and an additional skidway that will boast more than 20,000 metric tons of bearing capacity.

Additionally, the Altamira location will be integrated with the company’s four other fab-rication yards around the world.

COMPANY NEARS COMPLETION OF EPCI PROJECT FOR RELIANCE

J. Ray McDermott’s Middle East operation is nearing completion of a fast-track EPCI project for Reliance Industries Ltd. (RIL). Th e project, an 18,100-metric ton Control Riser Platform (CRP), is part of the Dhirub-hai 1 and 3 block developments of the KGD6 gas fi elds in the Bay of Bengal’s Krishna Go-davari Basin.

Hook-up activities are currently underway following installation of the jacket and top-sides by J. Ray McDermott’s derrick barge DB101. Project completion is expected early summer of 2008, just 18 months from the date of project award. When fully operational, the

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EWECO. Quietly revolutionizing the mud pump – again.For more than three decades, the name Ellis Williams has been synonymous with superior mud pumps. We pioneered the triplex, and now, we’re revolutionizing mud pumps again.

The patented EWECO Quintuplex features five cylinders, instead of the typical three. This new design reduces pressure variance by more than 70 percent compared to an equivalent horsepower triplex, greatly enhancing MWD/LWD decodeability. The Quintuplex extends useful life, reduces footprint and increases ROI. It also greatly reduces piston rod loads, increasing the life of all load components. For more information on this ground-breaking pump, contact your Ellis Williams Engineering representative or visit booth #7309 at OTC May 5-8.

866.943.9326 • www.eweco.comContinued on page 23


fi eld will produce 80 MMscm/d of natural gas for domestic consumption in India. Th is will increase India’s domestic natural gas produc-tion by approximately 100%, supporting the country’s growing demand for gas, expected to increase from 117 MMscm/d today to a level of 200 MMscm/d by 2012.

J. Ray McDermott reports the project has maintained an excellent safety record to date, with zero “lost-time incidents” at both fabri-cation yards. A “total recordable incident” rate for the project to date stands at 0.51, against a corporate benchmark of 0.66.

El Paso E&P is one of two core businesses of El Paso Corporation, based in Houston. Th e second business unit is the company’s pipeline asset with 42,000 miles of interstate pipelines that transports more than one-quarter of daily natural gas consumption in the U.S.

Th e company says its E&P drilling pro-gram has experienced a 99% success rate on gross wells drilled. Internationally, the com-pany has expanded its footprint and diversi-fi ed its international presence by adding ex-ploration blocks in Egypt to go along with activities in Brazil.

Activity highlights include a balanced pro-gram of development drilling, exploration and acquisitions, principally in the US, Brazil and Egypt. Additionally, the fi ve-year drilling inventory provides solid returns using con-servative natural gas price assumptions. Plus, proved natural gas and oil reserves have been in the range of 3.3 Tcf equivalent, including underdeveloped reserves.

El Paso’s objective is to remain focused on consistent growth by creating value through its drilling program and strategic acquisitions. Recently stated objectives are to:

• Produce between 800 and 860 MMcf equivalent per day, including the proportion-ate share of Four Star volumes

• Continue to emphasize lower-risk on-shore drilling projects, with additional high-er-risk, higher return opportunities

• Increase capital program to $1.7 billion, while monitoring the capital performance

• Increase proved reserves by 1%-5%As for areas of operation, El Paso’s E&P

business in the U.S. is managed as three geo-graphic regions—Onshore, Texas Gulf Coast and Gulf of Mexico. Internationally, El Paso has a presence off shore Brazil and in Egypt.

Onshore. The Onshore division is the foun-dation of the company’s portfolio, providing consistent production and reserve growth through a low-risk drilling program. A sub-stantial portion of the drilling is in unconven-tional natural gas areas, and the E&P division is one of the largest coal bed methane produc-ers in the nation. The future for this division is considered bright given a five-year drilling in-ventory and an extensive lease-hold position.

Texas Gulf Coast. The Texas Gulf Coast team has successfully focused on low- to medium-risk opportunities in shallower formations. In 2006, the division produced some 190 MMcf equivalent per day each quarter from more than 750 wells. Then, in January 2007, producing properties and undeveloped acreage in Zapata County, Texas, was acquired. The 23,000 net acres acquired in the transaction provide a multi-year drilling inventory with significant exploration and development opportunities.

Gulf of Mexico. El Paso has the industry’s fifth largest acreage position on the conti-nental shelf and one of the industry’s most extensive 3D seismic inventories. The Gulf of Mexico team continued a record of success with its deep-shelf drilling program. Offshore operations present unique technical challeng-es, but offer higher rewards. In-house seismic processing techniques provide a competitive

advantage, leading directly to the West Cam-eron 132 discovery in 2006.

International. In Brazil, the team has fo-cused on oil exploration and production, diversifying the commodity portfolio. Sig-nificant growth in Brazil is expected with oil production doubling over the next four years. Most of the activity is taking place in

the Camamu Basin offshore Brazil. Addi-tionally, through the acquisition of a major block the company has a substantial onshore position in Egypt that will complement the oil exploration efforts.

El Paso E&P has employment oppor-tunities. For more information, visit www.elpaso.com/careers and select “OTCShow-DailyGuide08.”

Getting familiar with El Paso E&P

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From pioneering AUV technology to providing unprecedented levels of excellence in surveying, C & C has created a “new vision” for the oil and gas industry. Our fleet of AUVs (C-Surveyor® I, II, III) has set new standards by reaching depths to 4,500 meters in ultra-deep waters across the globe with over 100,000 km surveyed. We have also integrated C-Nav® (globally corrected GPS service) in pursuit of breakthrough technology for our clients. We produce the most reliable, accurate and timely data to help our clients make sound decisions, while also providing expert data interpretation. With more than 400 employees globally, we provide marine construction survey services, high-resolution multichannel geophysical surveys and geotechnical laboratory testing to bring you a complete package for your next project.

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McDERMOTT cont’d from page 22


CAMERA INCREASES OPERATOR’S VISIBILITY DOWNHOLE

Expro received an award for its ViewMax side-view camera. Th is versatile camera al-lows the operator to switch between a tradi-tional down view to a new side camera with the fl ick of a switch. Th e entire camera will then rotate 360º on its motor section to en-able a full investigation.

Th e camera can provide more information to help operators make remediation decisions,

particularly in wells with suspected casing damage. By providing images of the pipe wall, the camera can provide operators with more information on the causes of failures in their well.

Th e ViewMax incorporates a second cam-era, Expro’s downhole video backlight. Th e second camera is pointed sideways and rotates,

allowing unobstructed and undistorted views of the wall of the pipe or openhole formation.

BIT DRILLS AND REMOVES CUTTINGS

Welltec won for its Well Miller Circulat-ing Bit (CB), best described as a tunnel power drill. Th e Well Miller CB is able to establish full fl ow conditions by drilling through even the hardest materials. Th e novel drill has the unique ability to both drill out and remove cuttings to surface.

It is operated in conjunction with the Well Tractor that provides WOB and controls the reactive torque of the drilling process. Th e tool consists of a Basic Rotational Unit (BRU) including electronics, pressure compensator

and electric motor sections. Th e BRU drives an impeller, which creates the vacuum fl ow to circulate through the liquid environment tool “dragging” sand into the 0.5-in. intake holes where it will deposit in the sand trap bailers. Depending on the confi guration of the tool, a diff erent number of bailer sections can be mounted.

Interventions can be performed in a rig-less environment, and with its unique ability to operate localized with E-line depth con-trol, the Well Miller CB ensures that wells are quickly restored to production.

LIFT SYSTEM PROVIDES CONTROL DURING HEAVYLIFTING OPERATIONS

Bottom Feeder, a new heavy-lift system de-signed, built, and operated by Versabuild, an affiliate of Versabar, received a Spotlight award. The Bottom Feeder retrieved six hurricane-toppled platform topsides from the seabed in 2007. Each of the eight-leg topsides was re-trieved as single lifts, with peak lift weights of up to 1,600 t. The decks were set onto cargo barges and scrapped onshore. This approach, compared to small-piece removal, results in reduced personnel exposure offshore and is extremely cost-effective.

This new lift system has a rated lifting capacity of 4,000 t. The technology has a number of unique features that make it well-suited for heavy-lifting salvage opera-tions. Four independent lift blocks provide an excellent degree of control during lifting operations, an essential requirement when lifting large, unbalanced structures where ac-curate weight data is not available, as well as structures resting on the seabed at varying unlevel degrees. As an example, some of the lifts for the system included topsides sitting upside down on the seabed.

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Industry working to meet challenges of CO2

By Jerry Greenberg

What to do with CO2 emissions follow-ing oil and gas exploration is a primary issue among oil companies. Proposed solutions in-clude injection into subsea salt caverns and saline aquifers or injecting them several hun-dred meters below the seafl oor.

Saline aquifers provide the greatest poten-tial storage capacity, according to Sally M. Benson with the Global Climate Energy Proj-ect (GCEP) at Stanford University. Th ere are several advantages to this storage method, in-cluding the fact that saline aquifers are widely distributed and are located with many CO2 sources. Th ey off er the potential to store on the order of up to 104 billion tons of CO2, which could provide the capacity for storage of hundreds of years or more of the current CO2 emission from fossil fuels.

With this storage method, Ms. Benson notes, the leakage risk actually is minimized long-term as CO2 is injected. Th e leakage risk increases as injection begins due to pres-sure buildup in the storage reservoir. Potential contact between the injected CO2 and active or abandoned wells may also increase leakage as uncertainties with regard to the rate and direction of CO2 migration. However, after injection stops, potential leakage decreases be-cause the storage reservoir pressure decreases and the eff ectiveness of secondary trapping mechanisms increase over time.

GCEP is currently performing theoretical and laboratory studies together with fi eld-scale simulations to improve the fundamental understanding of the trapping processes and develop quantitative approaches for predict-ing them.

Daniel P. Schrag with the Department of Earth and Planetary Sciences at Harvard Uni-versity says CO2 can be injected in less than 3,000 meters of water about 500 meters be-low the seafl oor.

“Th e CO2 plume will stay there essentially forever,” Mr. Schrag said. “It is leak proof and long-term monitoring is drastically reduced.”

At high pressures and low temperatures common in deep sea sediments several hun-dred meters below the seafl oor, CO2 will be in its liquid phase and denser than the overly-ing pore fl uid. Th e lower density of the pore fl uid provides a cap to the denser CO2 and ensures gravitational trapping in the short-term. Additionally, the potential to form CO2 hydrates will act as a more or less permanent cap to CO2 migration toward the seafl oor.

Also, thermal modeling has shown that continued CO2 injection will not disturb the local geothermal gradients to provide an es-cape route for the CO2.

Th e method’s advantages include no need for a pipeline in heavily populated areas. Th e permanence of storage avoids some liability is-sues and off ers an end-around on NIMBY de-velopments. According to Mr. Schrag, the so-lution is appropriate for about 30% of current power-generating stations close to the coast.

Th ere is no perfect solution, though. “In-jection into lower permeability sediments is an issue, and there are some legal and regula-tory issues but these are relatively minor,” Mr. Schrag said.

Analysis shows that there are some places with a high enough permeability for direct injection but locating them represents one of the challenges of this sequestration strategy. An approach is being developed that involves injection through a network of horizontal

wells that increases the eff ective surface area during injection. Th is would allow adequate fl owrates to proceed even in lower permeabil-ity sediments.

Additionally, Mr. Schrag said, “costs are large but are not prohibitive. Th e big cost in the northeastern U.S. is the legal cost of deal-ing with pipeline companies.”

In Australia, the Australian Cooperative

Research Center for Greenhouse Gas Tech-nologies (CO2CRC) is currently injecting 100,000 tons of CO2 in a large scale test of storage technology. Th e pilot project is in the Otway Basin, which has natural CO2 accumu-lations and many depleted natural gas fi elds. Th e project’s goal is to demonstrate that CO2 can be safely transported, stored underground and its behavior tracked and monitored.

Kevin Dodds with the BP Alternative Energy Group said this project off ers up a diff erent set of questions than a typical ex-ploration or development project. “A site risk assessment must be carried out and a regula-tory framework must be established. Public acceptance must also be gained, and carbon credit validation from the project must be monitored,” he said.

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trella, Upstream director for Petrobras, took the fi rst question, “Could you defi ne the re-serves estimates at Sugarloaf any better?” His response was simply, “No, I can’t.” Similar questions and answers were given, but no fur-ther information was given.

Finally, Petrobras’ president José Sergio Gabrielli de Azevedo gave the audience a little more to chew on, but not much: “We have suspicion of very large volumes, but we don’t

know if the [Sugarloaf ] structure is continu-ous.” And a little later, “We need more drill-ing to get a more precise view, but it’s “a very huge possibility.”

Mr. Estrella added, “Th e only reserves that we can give are at Tupi, where there have been two wells drilled, and the reserves are estimat-ed at 5 to 8 billion barrels.”

Finally, the questions turned elsewhere. Mr. Azevedo acknowledged that there were “discussions with a Pasadena refi nery” but refused to comment further, saying only that

“negotiations are underway.”By 2012, Petrobras intends to invest $15

billion abroad, 70% of which is planned for E&P. Th e United States will receive the largest share, some $4.9 billion, or 32% of the total invested outside of Brazil.

Petrobras is a partner in Cascade and Chi-nook fi elds—two important ultra-deepwater discoveries made in the Gulf of Mexico that are located in Walker Ridge. Th e fi elds will be operated by Petrobras. Th e innovation lies in obtaining permission from the MMS to

operate the Gulf ’s fi rst FPSO (Floating Pro-duction, Storage and Offl oading) platform. Contracts for construction of the FPSO have been signed, with production slated to begin in 2010. Petrobras also has participation in the Saint Malo and Stones discoveries, which are under assessment by operators Chevron and Shell, respectively.

When asked about Mexican water in the Gulf of Mexico, Azevedo said that they were interested, but had to await changes in the law to allow investment there.

One of the more interesting questions concerned ethanol production. Azevedo said that, unlike the US and the rest of the world, we feel that production of biofuels lowers food costs. In Brazil, we “can man-age several problems with social conditions of labor, the environment, and so on . . . and that rather than reduce food produc-tion, our biofuels increase food production, and our food production costs less because of biofuels, because one of the reasons for the increase in the price of food is because of the high price of oil, which is, unfortu-nately, tied to [food production].”

Petrobras is a repeat winner of several OTC Distinguished Achievement Awards, includ-ing one in 1992 for the technologies applied at the Marlim Field, and another in 2001 for technologies used at the Roncador Field.

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carbide is formed by using a novel composite structure that consists of diamond particles embedded in a matrix of nanocrystalline sili-con carbide. Th e nanostructured matrix halts the growth of cracks that lead to fracture—greatly strengthening the resulting material.

Th e licensed technology arose out of the claims from US Patent 7,060,641 issued to LANL on June 13, 2006. Th ose claims provide a method of increasing the fracture toughness of Diamond-SiC composites by incorpo-rating nanocrystalline diamond into them. LANL hypothesized that the nanocrystalline diamond and SiC hinder dislocation growth and microcrack propagation in the compos-ite better than microcrystalline diamond and SiC do, which improves fracture toughness. Th e proposed method involved liquid sili-con infi ltration of nanocrystalline diamond powder under HPHT conditions (7.7 GPa, 1,700–2,300°K). Th e resultant composite had increased fracture toughness but was only partially infi ltrated by the liquid silicon. Th e patent claims also proposed refi nements to this method to allow full penetration of the liquid silicon, creating fully dense Diamond SiC and, thus, further enhancing the compos-ite’s fracture toughness.

Using the patented methods, sintering the ball-milled powder mixture at 5–8 GPa pressure and 1,400–2,400°K will yield a fully dense Diamond-SiC composite with a frac-ture toughness of 10 MPa(m)½ . Th e patent claims also describe a similar method to create a fully dense Diamond-SiC composite with a fracture toughness of 12 MPa(m)½ .

“As a company, our goal has always been to focus on researching and developing the best technology for our customers—to help them succeed in their respective industries,” said Dr. Ken Bertagnolli, vice president of research and development at US Synthetic. “Th is license agreement, with one of the most recognized research and development laboratories in the world, represents our continued commitment to fi nding the best technologies and delivering the best solutions to our customers.”

SYNTHETIC cont’d from page 3

PETROBRAS cont’d from page 1

It starts with the right people and it ends with the right solution. VetcoGray has been pushing offshore and subsea technology boundaries for more than 50 years. Our complete systems and services help customers meet their production goals – whatever and wherever they may be. We have a long list of industry milestones, including the successful design and six years of operating experience with Troll C, the world’s first commercially scaled and longest-running pilot subsea separation system. As part of GE, VetcoGray is investing heavily to further advance technologies for subsea separation and processing. Our combined expertise provides one seamless package for separation, power, boosting, compression and controls. To some, deep water is an obstacle. To us, it’s an opportunity.

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Deepwater drilling session highlights equipmentBy Victor Schmidt

Deepwater drilling continues to face chal-lenges with every piece of equipment needed to get the well down. Tuesday’s session, “Ad-vances in Deepwater Drilling Technology,” spotlighted some recent ways the industry has pressed the envelope further through increased study and extreme-environment engineering.

For wells drilling in jackup territory a project begins by setting the rig into the soft mudline soils. Th e authors studied 13 wells in the GOM shelf, examining the soil profi les and spud can penetrations, and then evalu-ating the penetrations by four methods. Th e wells were drilled using seven diff erent jackup designs with spudcans of diff erent sizes and shapes. Th eir results demonstrate the diffi cul-

ty of predicting load-penetration using stan-dard methods because of the varying spudcan confi gurations. Th e study resulted in a recom-mendation that penetrations be continuously monitored during preload operations and compared to the predicted penetration rates. In areas where deep penetrations are expected during preloading, the maximum preload should be held until penetration becomes

negligible. New studies are recommended to estimate spudcan depth and soil backfl ow during and after preload activities, and before leg extraction from the seabed.

Moving off the shelf into deepwater, rig positioning problems change, as do problems faced by the drilling operation, Fig. 1. One key element is the ability of a semisubmers-ible to maintain position with fl exible moor-ing lines. Standard lines are made from Poly-ethylene Terephthalate (PET), commonly referred to as polyester, but recent advances using Polyethylene Naphthalate (PEN) pro-vide greater stiff ness. Ropes made from this material can be important in regions where a stiff er intermediate rope can provide bet-ter performance through a smaller diameter, smaller weight gain and lower pretensioning. Strain and creep studies were performed, as were fatigue life and yarn-on-yarn abrasion tests. Th e authors recommend that transport, handling and installation costs need to be checked against the additional material cost.

Once the deepwater rig is secured, the next element to consider is the integrity of the riser. Most risers are made from steel, which is sub-ject to corrosion and pitting. Th is degradation places the riser in danger of failing in a num-ber of ways. API standards are set such that the riser should be replaced if corrosion re-duces the metal by 12.5%. Th e authors inves-tigated this assumption using fi nite element analysis to determine if a diff erent standard was needed. Th eir study modeled a riser from a semisubmersible in 1,900-m water depth in metaocean conditions simulating those in the Campos Basin. Th e riser was studied in three parts, the lower section above the lower fl ex joint (1,900 m to 1,700 m), the intermediate section from 1,700 m to 100 m and the top portion from 100 m to the upper stress joint. Th e authors found that the normal criteria are too conservative and that it is best applied to the top section of the riser. Th ey suggest the next step is to develop maximum stress ac-ceptance criteria for corroded riser joint wall thickness to extend the service life of risers.

Risers fl oat in the seawater and are subject to current forces and Vortex Induced Vibra-tion (VIV), as well as corrosion. Th e indus-try uses assorted fairing designs to minimize their eff ects and has developed certain rules of thumb for fairing design. Th e authors studied the eff ect of diff erent fairing geometries on re-ducing drag and suppressing VIV. Tests were preformed in the supercritical Reynolds num-ber ranges with fairing Chord-To-Th ickness (CTT) ratio of 1.33 to 2.52. Fairings with sta-bilizers and without stabilizers were examined, as were full-faring and pointed-tail forms.

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At the OTC 2008 Worldwideworker is hosting their Recruitment Event in booth 1167 and 1270. The following companies will actively be looking for suitable candidates. They will be presenting new and exciting job opportunities, and would be happy to meet you! Do you want to nd out what you’re worth? Come and talk to the recruiters face to face!

The Worldwideworker.com website is a global leader in energy jobs with millions of page views per month. Its design allows jobseekers to easily search for jobs and employers to effectively brand their company, by posting jobs and placing banners. In addition, Worldwideworker offers companies a wide range of services to help them facilitate their recruitment needs, such as Recruitment, Manpower, Executive Search and Recruitment Events.

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Fig. 1 Subsurface drilling challenges

abound in deepwater drilling, from

OTC 19656, © OTC 2008.


Fairings with straight sides, pointed tails and no stabilizers produced reduced low displace-ment and low drag. Fairings with a CTT greater than 2 provided good VIV suppression and very low drag. Fairings with stabilizers were usually more eff ective for systems with CTT greater than 2. Th e authors found that for areas requiring very low drag long fairings were the best, but for most applications, short-er fairings with straight sides, a straight thin tail and no stabilizer were suffi cient to suppress VIV and provide low drag. Th ey were also less expensive to produce and install, and were cost competitive with helical strakes.

Well planning in deepwater has to consider the pore pressure-fracture gradient envelope, Fig. 2. Th e expandable liner enables an op-erator to install a casing string further uphole

to extend the 13⅝ -in. × 13⅝ -in. casing shoe without losing hole diameter, so that high col-lapse liners can be used deeper in the well.

Lastly, as the industry continues to move into deeper more extreme environments, the need for a more capable subsea wellhead system has become evident. Authors from FMC Technologies explained the develop-ment of a new wellhead system that extends

the standard 15,000 psi, 250°C, 1-million-lb wellhead to 20,000 psi, 350°C, 2-million-lb capacity. It uses proven features and designs with standard operating procedures to limit problems running the new system. Th e high-er capacity wellhead can run up to eight pipe strings, starting with a 32-in. surface casing. Most importantly, the wellhead bearing struc-ture splits the forces generated by the lower-

load upper string from the higher load lower strings. Th is provides better load carrying per-formance and better sealing of the strings.

With these featured developments and extensions, the industry is well able to con-tinue its expansion of the deepwater operat-ing envelope.

Paper number: 19251, 19656, 19159, 19377, 19694, 19315.

www.fardux.co.uk+44 1603 [email protected]

Visit booth 4582

Uncontrolled Emission - Flowline Washouts - Choke Optimization ???

While a high velocity well effluent carries a load, Frac Sand or even Produced Sand, the potential exists to erode surface flowlines.To combat flowline washouts, Fardux have developed two new products Sandsnoop and Wallwatch. Data is displayed, recorded and plotted on our award winning IDEA Enterprise software suite either in isolation or alongside all of your surface and downhole pressure, temperature and calculated fluid flow parameters.

WallWatch: Safer all round

Realtime Wall Thickness monitoring system

Wallwatch uses an array of sensors clamped around the pipe to produce an accurate wall thickness profile. Each mat contains 14 individual acoustic transducers capable of measuring wall thickness between 5 to 25 mm.

SandSnoop: Knows what to listen for

Realtime Sand Particle monitoring system

Sandsnoops non invasive acoustic probe hears even the most minute sand impingements while at the same time filtering out unwanted background noise.

ALL THE DATA, WHEN AND WHERE YOU WANT IT

Baker Hughes Displays New Completion & Production Technologies

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Hughes Christensen INTEQ Baker Hughes Drilling Fluids Baker Atlas

Baker Oil Tools Baker Petrolite Centrilift ProductionQuest

Baker Hughes is showing its latest completion and production technologies

in its Offshore Technology Conference exhibit:

RAM™ multilateral system for continuous rotation of the lateral liner while

landing a completion system – winner of the OTC Spotlight on New

Technology award.

Centurion™ electrical submersible pump with improved thrust and radial

handling capabilities for an extended operating range

SentryNet™ automated chemical injection system featuring wireless remote

sensing, e-business inventory management and optional solar power

Insight™ fiber-optic pressure/temperature gauge and distributed

temperature sensing system

Real-Time Casing Imaging (RTCI) for continuous, real-time monitoring of

casing deformation caused by formation movement

To discuss these innovations with Baker Hughes experts,

visit Booth 4241

■

■

■

■

■

Fig. 2. The pore pressure environment

becomes a challenge in deep water,

producing a need for solid expandable

drilling options, from OTC 19656, ©

OTC 2008.

MACGREGOR’S HYDRAMARINE

SYSTEMS HANDLE HEAVY

SUBSEA LOADSThe module handling system’s great ad-

vantage is that it can undertake the kind of guided load handling that a crane cannot, thus eliminating many of the risks of non-guided lifts. The system is a fully integrated system where the load carrying structures are part of the vessel structure and even skid beams are fully integrated into the vessel’s deck. The advantages with this solution com-pared with a “modularized add-on” system are a better working environment, with more space and better overall safety under all op-eration conditions. The entire tower system is in this case located inside a large heated work hangar and the system is well suited for Arctic operations.

PARKER’S COMPOSITE

ACCUMULATORS AND GAS

BOTTLES Parker, the global leader in motion and

control technologies, announces the avail-ability of higher capacity composite bladder accumulators with pressures up to 6,000 psi and 120 gallons for increased offshore deep drilling payloads. Additionally, composite aux-iliary gas bottles are also ready for system de-sign with 200-gallon capacity. Parker’s carbon fi ber composite technology eliminates up to 80% of the weight of traditional steel accu-mulators used on blowout preventer control units and offshore riser tensioner systems.


Scenes from OTC .08

• SAVE MONEY—avoid shipping costs by carrying items home

• BROWSE AND BUY—from more than 400 titles

• SHOP IN COMFORT—food services and restrooms nearby

• CONVENIENT SHIPPING—shipping booth next to bookstore

OTC Bookstore FREE GIFTwith USD 100 minimum purchaseAvailable only while supplies last.

Reliant Stadium, Field LevelEast Entrance—Take ramp/escalator to

second level at Coca-Cola Entrance

Open 0800–1730Your on-site source for books published by OTC societies

Considerable progress has been made on the replica of the MODU at Weatherford

(Booth 3317). Traffi c was heavy in the exhibit area throughout the day on Tuesday.

John Otto Jaschke, Jeff Whittaker,

Kay Drummond and Chad Ragas of

Expro hold the Viewmax Sideview

Camera a Technology Spotlight Award

Winner 2008.

Han Tiebout, Wim Janse of SBM visit

with ir. Sander Groenteman and Peter

Doesburg of Siemens at SBM (Booth

4141).

Reliant Stadium is full of exhibitors this year.

The offi cial show newspaper is

required reading for the attendees at

OTC .08.

The outdoor exhibits are the place to be if you are in the market for a drilling rig.

Jesús F. Reyes-Heroles, Director

General Petróleos Mexicanos (PEMEX)

gives keynote address at the 2008

Awards Luncheon.


News in briefABS’ NEW REQUIREMENTS FOR FPSO EVALUATION

ABS announced it is adopting new struc-tural requirements for the analysis of fl oating production, storage and offl oading units (FP-SOs). Th e new requirements have been devel-oped from experience ABS has gained from classing the 50 FPSO units—both newbuilds and conversions—that it has in class. Th e new

guide will require hull girder ultimate strength evaluation and fi nite-element analysis as part of the tanker conversion to FPSO require-ments to receive Class.

RUBBERATKINS’ NEW HIGH PRESSURE PACKER CUPS

Rubberatkins launched a new range of High-Pressure Packer Cups at OTC. Cre-

ated to hold diff erential pressures up to 18,000 psi at temperatures reaching 160°C, the cup off ers higher capabilities. Provid-ing a reliable and robust solution for liner hanger, well intervention, sand fracturing, sand control and wellhead testing, the HP cup is designed to contain high diff erential pressure in an annular gap. Engineered us-ing specially formulated anti-extrusion elas-

tomers, its custom-designed thin walls can accommodate larger outer-diameter man-drels allowing increased fl ow through the mandrel inner diameter. Th e HP cup has an integral cup and thimble and its fl exibility provides increased reliability when work-ing at very high pressures and temperatures, therefore minimizing risk.

prom and Italy’s Eni. The pipeline will even-tually take 1 Tcf of Russian gas per year to Europe. As part of the South Stream project, Russia recently signed a deal with Serbia’s largest oil and gas company, Naftna Industrija Srbije (NIS), for a 51% stake in the company. In 2007, Gazprom initially offered €400 million for the company. Serbian Economy Minister Mladjan Dinkic called the offer “humiliating,” since the company’s property value alone to-tals around €800 million and its book value is estimated at around €2 billion. When the deal was fi nalized in early 2008, it was agreed that Gazprom would pay €400 million for NIS and invest an additional €500 million. Gazprom also promised that its South Stream pipe-line would pass through Serbia. Many have said the deal was politically motivated—re-payment for Russia’s support of Serbia in its quarrels with Kosovo.

When Putin came to power, Western oil companies praised his election saying he would bring stability to the nation, thus pro-viding them with more future business op-portunities. The companies might have been less enthusiastic had they read Putin’s dis-sertation on the importance of state manage-ment of natural resources for his graduate degree in economics. Since then, oil and gas prices have continued to increase and Russia has worked to play a more dominant role in the management of its oil and gas reserves. In late 2006, Shell was removed from the Sakhalin-II project and Gazprom was put in its place. Environmental concerns surrounding Shell were cited when the disputes began, but once Gazprom gained control it appeared that the environmental problems were just a pretext for the government to begin rene-gotiations for a better deal. Russia’s actions have caused a ripple effect; other nations, such as Kazakhstan, are beginning to take similar measures in dealings with foreign companies operating in its fi elds.

After a raid on TNK-BP’s Moscow head-quarters in May, rumors began to fl y that Gazprom is attempting to gain control of the company. TNK-BP is owned jointly by BP and a group of Russian businessmen. Specula-tion is that Gazprom intends to buy out the Russian shareowners’ 50% stake, as well as 1% from BP—giving Gazprom majority ownership of the venture. Also, in April, the Russian parliament adopted amendments to laws with the result that offshore blocks in the northern, northeastern and far eastern areas of the country can be developed only by companies in which the state has at least a 50% interest, thus limiting participants to Gazprom and Rosneft.

It’s hard to tell if Russia’s nationalization of its resource companies is a throwback to its Communist days or if it’s just Russia’s own form of capitalism run by the government—either way, it seems to be working. High oil and gas prices don’t hurt either.

GAZPROM cont’d from page 1


By Krista H. Kuhl

At a press conference on Monday, the Min-erals Management Service (MMS) released its deepwater Gulf of Mexico (GOM) report, cov-ering leasing, drilling, development and pro-duction for the area. Th e report was presented by MMS Director Randall Luthi and MMS Regional Director Lars Herbst. According to

the report, about 54% of all GOM leases are located in deep water, with deep water being classifi ed as depths greater than 1,000 ft and ul-tra-deep water as depths greater than 5,000 ft.

“In 2007, 72% of the Gulf ’s oil production (and 38% of the Gulf ’s gas production) came from wells drilled in water depths greater than 1,000 ft. A generation ago that was unheard of,” Mr. Luthi said. “As we move into deeper

water, new solutions are being tested. Just last week the MMS approved the development plans for the Cascade Chinook project, oper-ated by Petrobras. Th is includes the use of a Floating Production Storage and Offl oading (FPSO) facility. Th is project is in about 8,200 ft of water in the Walker Ridge area of the Gulf of Mexico.”

Th is is the fi rst FPSO for use in the GOM.

Another fi rst for the GOM will be the in-stallation of a ship-shape, dynamically posi-tioned, detachable turret Floating Production Unit (FPU) for the Phoenix development in Green Canyon, with a planned production startup in the third quarter of 2008. Th e At-lantis semisubmersible platform in deepwater GOM is the deepest moored, fl oating oil and gas production facility in the world.

Proven deepwater fi elds in the GOM in-creased to 125, representing a 44% growth since the end of 2006. Th e GOM has 52 dis-coveries in ultra-deep water. Lower Tertiary rocks were encountered approximately 27% of the time. Th e GOM had eight industry-announced discoveries in 2007, including one in the Lower Tertiary.

At the end of 2007, there were 130 pro-ducing projects in the deepwater GOM. Th e number of rigs working in deep water and ul-tra-deep water increased in 2007, with a record high of 15 rigs operating in ultra-deep water. At the end of 2007, there were 130 producing projects in the deepwater GOM, and for the fi rst time, all of the 20 most prolifi c produc-ing blocks are located in deep water. At least 13 new drilling rigs are being built and con-tracted for use in the ultra-deepwater GOM and will be ready for operation in the next 2–3 years—they will be capable of operating in water depths up to 12,000 ft and drilling up to 40,000 ft in depth. Several fi elds associated with Independence Hub production facility came online in 2007. When the hub is at full capacity, the gas production will represent over 10% of the total GOM gas production.

“Deepwater Gulf of Mexico is and will continue to be one of the most important de-velopments of US domestic production,” said Mr. Herbst. “In 2007, 142 wells were spudded in deepwater with 24 of those wells in water depth greater than 7,500 ft. Th is is a record for those water depths for any given year.”

Th e MMS also had record lease sales this year in the GOM. Sale 206 attracted approxi-mately $3.7 billion in high bids—the most since Federal off shore leasing began in 1954. Sale 224 was the fi rst lease off ering in the East-ern Gulf since 1988; it was also the fi rst sale where the revenue sharing provisions of the Gulf of Mexico Energy Security Act of 2006 were enacted. Sale 205 attracted over $2.9 bil-lion in high bids on 723 blocks, the third larg-est total in US off shore leasing history.

Future exploration and production in the deepwater GOM remains promising. Several key discoveries, the recognition of high produc-tion rates, the evolution of development tech-nologies and a rise in oil and gas prices contrib-ute to the increase in deepwater activity.

Booth 8817TheCortlandCompanies.com

GOINGDEEPERThe World’s Largest 12-Strand Braider For Longer, Stronger Repairable Torque Free Ropes

You need more efficient drilling and production techniques to increase recovery rates

and enhance productivity. Weatherford has spent years building a product and service

portfolio committed to improving your drilling and production efficiency, including

offshore applications. To find out how we can help you build more value into your well,

visit Booth 3317, contact us at 713-693-4000, or visit weatherford.com.

Drilling Directional Drilling Drilling Tools Controlled Pressure Drilling® Cementation Expandable Solids Mechanized Rig

Systems Drilling with Casing Wellheads Evaluation Open-Hole Wireline Cased-Hole Wireline Integrated Evaluation Services

Geoscience Completion Sand Control Cased-Hole Completion Specialty Chemicals Intelligent Completion Production

Fracturing Technologies Artificial Lift Systems Production Optimization Systems Pipeline & Specialty Services Intervention

Casing Exits Fishing Thru-Tubing Decommissioning

© 2008 Weatherford International Ltd. All rights reserved. Incorporates proprietary and patented Weatherford technology.

Deepwater GOM activity continues to grow

eign companies is $11.3 billion, including $5.3 billion in exploration. In 2007, off shore oil production with foreign investment result-ed in 17 million tons of oil and accounted for more than 60% of total off shore production.

Mr. Jin was followed by Chen Weidong, Executive Vice President, CNOOC Oilfi eld Services Ltd. Mr. Chen provided a time-line overview of China’s oil industry. From 1982–1998, the country saw an industrial system reform as related to oil. Th e period 1998–2002 off ered more companies being established, not just national-based. Finally, 2002–2007 clearly illustrated that China’s oil industry in particular and entire economy as a whole are now active global participants.

CHINA cont’d from page 3

THE OFFICIAL 2008 OFFSHORE TECHNOLOGY CONFERENCE … · career insights and career management for...

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