Sunday, February 3, 2013

Noble: SembMarine Jackup Incident Not Linked to Structural Defects

Noble: SembMarine Jackup Incident Not Linked to Structural Defects

Noble Corporation confirmed late Thursday in an earnings conference call that the Noble Regina Allen (400' ILC jackup), which tilted during a jacking system test on Dec.3, 2012, is now securely berthed by Jurong Shipyard.

Noble Corp's Chairman and CEO David Williams noted that an investigation conducted by Jurong Shipyard and Friede & Goldman (F&G) shows that the legs, jacking system and hull suffered no structural damage.

"Data collected to date by the various investigation teams has ruled out structural or component defects, and teams are now concentrated on the jacking software control logic, electrical components relating to the jacking system, and the break holding capacity," Williams said in a statement.

Jurong Shipyard, a subsidiary of Sembcorp Marine, is still working to isolate the exact cause and rectify the problem. Sembmarine confirmed on Jan.15 that the rig was successfully restored to its upright position, and that the rig is expected to exit the shipyard by the end of 3Q 2013.

Commenting on the health and safety aspect of the incident, Williams remarked that "thankfully, of more than 700 people aboard the rig, there were no serious injuries reported."

Singapore's Ministry of Manpower (MOM) Occupational Safety and Health Inspectorate confirmed that 89 workers were injured as a result of the incident. A stop-work order (SWO) imposed by the MOM, which covers all production works on the rig, is still in place.

After the incident, F&G instructed Chinese state-owned shipbuilder, Dalian Shipbuilding Industry Offshore (DISC), to suspend the construction of jacking systems for F&G JU-2000E rigs for Prospector Offshore Drilling.

Prospector Offshore Drilling, incorporated in Luxembourg in 2010, is new to the drilling industry. It has six high-spec jackups under construction, four by DISC and two by Shanghai Waigaoqiao (SWS) with deliveries from 1Q 2013 to 1Q 2014.

CIMB Research's analyst, Lim Siew Khee, noted in a report issued in late December that DISC and SWS were awarded these rig contracts due to attractive payment arrangements that required as little as one percent in deposits.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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PA Resources' Rights Issue Ends

The subscription period for PA Resources AB’s rights issue ended on Jan. 23, 2013, the company reported Friday.

The preliminary result of the rights issue indicates that approximately 3,569 million shares, representing approximately 51 percent of the shares offered, were subscribed for with primary preferential right. Of these, approximately 2,334 million represented A-shares and approximately 1,235 million represented B-shares.

Additionally, subscription forms corresponding to approximately 194 million shares have been received for subscription with subsidiary preferential right and without preferential right. The remaining approximately 3,290 million shares will be allotted to the guarantors pro rata in relation to their total undertaking, in accordance with the underwriting agreements entered into with the Company. Through the rights issue, which consequently is fully subscribed, PA Resources will receive proceeds amounting to approximately SEK 705 million before transaction related costs.

Those who have subscribed for shares with subsidiary preferential rights and without preferential rights will be allotted shares according to the principles outlined in the prospectus which was published on Dec. 28, 2012. Notice to those who have subscribed for shares with subsidiary preferential rights and without preferential rights is expected to be distributed on or around Jan. 29, 2013. The final outcome of the rights issue is expected to be announced on or around Jan. 29, 2013.

Through the rights issue PA Resources’ share capital increases by SEK 705,275,104.80 to SEK 1,414,599,897.20. The number of shares increases by 7,052,751,048 shares (whereof 3,824,865,912 A-shares and 3,227,885,136 B-shares) to 14,145,998,972 shares (whereof 4,462,343,564 A-shares and 9,683,655,408 B-shares).

The last day for trading in paid subscribed shares (BTA-A) on NASDAQ OMX Stockholm will be Jan. 25, 2013. New A-shares subscribed for with primary preferential right are expected to start trading on NASDAQ OMX Stockholm on Feb. 1, 2013, and new A-shares subscribed for with subsidiary preferential right and without preferential right are expected to start trading on NASDAQ OMX Stockholm on Feb. 4, 2013. On Feb. 7 2013, the B-shares are expected to automatically be converted into A-shares and are then subject to trade on NASDAQ OMX Stockholm.

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Statoil Confirms Third Norwegian Victim in Algeria

Three Norwegians who worked at the In Amenas gas facility in Algeria were confirmed dead on Friday, with little hope left that two who are still unaccounted for survived last week's terrorist attack.

Oil and gas major Statoil ASA (STL.OS, STO) said that three of its employees--Tore Bech, 58, from Bergen, Thomas Snekkevik, 35, from Austrheim and Bergen, and Hans M. Bjone, 55, from Brandbu--had been found dead, and that the company remained deeply concerned for those still missing.

"Our thoughts are first and foremost with the families and close friends who have lost their loved ones in this horrific and senseless attack on innocent people," said Chief Executive Helge Lund.

Norway's Ministry of Foreign Affairs earlier Friday said it no longer believes there is hope that the remaining Norwegians will be found alive.

"There are still search operations going on, inside and outside the In Amenas facility, but unfortunately we no longer consider it likely that survivors will be found," said Ministry of Foreign Affairs spokesman Svein Michelsen.

Algeria has said at least 37 foreigners were killed in the four-day siege of the facility, which began on Jan. 16. A team of forensic experts from Norway is working with Algerian authorities in the capital Algiers to identify bodies recovered after the attack.

The Norwegian victims were all employees of Statoil, which operates the gas field in a joint venture with BP PLC (BP, BP.LN) and Algerian state oil company Sonatrach.

Since Algerian forces ended the siege at the facility on Saturday, hope has diminished that the missing Norwegians may still be alive.

Mr. Lund and Norwegian Prime Minister Jens Stoltenberg have repeatedly urged citizens to be prepared for bad news.

"As Statoil has said, hope dwindles as time passes, and a number of days have now passed since the attack. Therefore it is now less likely that survivors will be found," said Mr. Michelsen. Mr. Stoltenberg met the U.K. Prime Minister David Cameron in Davos, Switzerland, on Friday. The two countries will cooperate to "prevent and handle future crises," Mr. Stoltenberg told Norwegian public broadcaster NRK, adding that the countries would also perform joint emergency response drills.

--Anna Molin contributed to this article.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Petronas Drops Offshore Tembikai, Chenang RSC Award

Petronas clarified through a statement Friday that it has decided not to proceed with the award of the Small Field Risk Service Contract (RSC) for the Tembikai and Chenang Cluster. The state-backed company's disclosure comes amid recent heavy speculation about companies said to have been dropped off the bidding process.

"We decided that in this case, it will be best to issue a clarification statement directly from Petronas," a spokesperson told Rigzone on Friday.

Malaysia's Scomi Group issued a statement on Jan.11, stating that it will continue to support a bid submission to Petronas for the Tembikai and Cenang Cluster Offshore Terengganu RSC project, after local media reported earlier that week that the bid placed by Scomi-Cue Resources was not progressing smoothly.

Cue Energy was among the marginal oil field contractors invited to bid for the contract, with Scomi brought onboard as the local partnering company.

Petronas is understood to have held technical reviews for Tembikai and Cenang with the shortlisted bidders that include the likes of international oil field services providers such as Baker Hughes, Halliburton and Petrofac, as well as independents such as AWE and Hydra Energy. Potential Malaysian companies in the bidding mix with the foreign players include SapuraKencana, Dialog, Alam Maritim, Daya Materials and Scomi.

The spokesperson confirmed that Petronas held a competitive bid exercise last year. The company eventually decided not to proceed with the RSC award as it is still in internal discussions about terms and conditions governing the RSC.

"But this does not mean that the RSC will not be re-opened at a later stage," the spokesperson added.

The development at Tembikai and Cenang will primarily target gas production. Discovered in the 1980s, Tembikai is expected to be developed over a period of up to nine years, with the project costing $500 million to $1 billion.

RSC contracts from Petronas have drawn much interest among international oil exploration companies, given Malaysia’s renewed focus on developing its domestic oil and gas assets. Back in 2011, Petronas noted that it aimed to award four marginal fields per year. However, thus far, only the Berantai and Balai fields have been dished out. This implies that Petronas could ramp up on its efforts on the RSC front, and look to award more contracts this year.

Quintella has reported on the upstream and downstream oil and petrochemicals markets from 2004. Email Quintella at quintella.koh@rigzone.com.

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Drilling Report, January 17

Posted 11:46 pm  Sunday, January 27, 2013

The drilling report was produced with data from the Texas Railroad Commission, from January 13 to 19. The following counties were searched: Anderson, Angelina, Camp, Cass, Cherokee, Dallas, Ellis, Freestone, Gregg, Harrison, Henderson, Houston, Kaufman, Leon, Limestone, Marion, Nacogdoches, Navarro, Panola, Rains, Robertson, Rusk, San Augustine, Shelby, Smith, Upshur, Van Zandt and Wood. For information contact Business Editor Casey Murphy at cmurphy@tylerpaper.com or 903-596-6289.


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Johan Sverdrup Appraisal Well Successful

Sweden's Lundin Petroleum and the Norwegian Petroleum Directorate (NPD) announced Friday that the 16/2-16AT2 appraisal well on the Johan Sverdrup discovery on production license 501 has been successfully completed.

The well was drilled as a side track to well 16/2-16 on the northeastern flank of the Johan Sverdrup field – approximately 0.6 miles to the west of the main bore hole. The objective of the side track was to improve the understanding of the lateral variations in reservoir qualities and relations to oil-water contacts in the neighboring wells.

Lundin (the operator, with a 40-percent interest) reported that the well encountered a gross oil column of approximately 98 feet with "largely excellent" reservoir quality within the Jurassic reservoir sequence. The acquired data also confirms an oil-water contact at approximately the same level as in well 16/2-10, which is the deepest observed at Johan Sverdrup.

"We are very pleased with the results of the latest appraisal well which has encountered excellent reservoir as well as confirming the deep oil water contact at this location," Lundin CEO Ashley Heppenstall commented in a company statement.

According to the NPD, the 16/2-16 and 16/2-16A appraisal wells were drilling into Permian and Triassic rocks, with vertical depths of 7,175 feet and 6,760 feet respectively. These wells will now be permanently plugged and abandoned, while the Transocean Winner (DW semisub) rig that drilled them will proceed to production license 388 to drill wildcat well 16/1-17 – where Lundin is also the operator.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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RusPetro to Boost Production with New Heat Exchanger

RusPetro reported Friday that a heat exchange system is expected to come on line on the firm's Krasnoleninsky Arch field, which is located in the Khanty-Mansiysk region of West Siberia.

RusPetro said that the heat exchanger will enable condensate production to increase from a current level of 1,400 barrels of oil per day (bopd) towards 4,000 bopd, bringing total crude and condensate production from around 6,500 bopd to approximately 9,000 bopd.

The firm has updated its development plan and aims to produce average crude and condensate at a rate of 10,000 bopd in 2013, with a targeted exit rate of 13,000 bopd for the year. For the end of 2014 and 2015, it plans exit rates of 20,000 bopd and 31,000 bopd respectively.

RusPetro also announced that it has strengthened its balance sheet. The firm has commenced an offering of senior secured notes, which will be used to repay a senior term loan and for general corporate purposes. It is also proposing to convert Limolines Transport's outstanding shareholder loan into new shares in the company. Most significant, however, has been the establishment of a new revolving credit facility at an initial level of $50 million with Sberbank.

RusPetro Chief Executive Don Wolcott commented in a company statement:

"We are delighted to announce our plans for strengthening of our balance sheet through a range of actions today, including the notes offering, Limolines loan conversion and the new Sberbank facility. These will simplify our capital structure and raise new funds that can be deployed in to the field. Our business is now operating cash flow positive and we believe that our strategic development plan will put the business on a firm trajectory for growth in 2013 and beyond."

Analysts who follow the company at London-based FoxDavies Capital saw the update as positive.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Falcon Raises Beetaloo Resource Estimate

Falcon Oil & Gas announced Thursday that an independent study by RPS Energy has substantially increased Play level Prospective Resources in the Beetaloo exploration permits in Northern Australia, held by Falcon's 73 percent subsidiary, Falcon Oil &Gas Australia Limited (Falcon Australia) as well as providing an update on the Contingent Resources in the Mako Trough, Hungary.

The company recently engaged RPS Energy to carry out an updated independent evaluation of and produce a Competent Person's Report (CPR) on the potential hydrocarbon resources pertaining to Falcon Australia's acreage interests in the Beetaloo Basin, Australia and the Mako Trough in Hungary as of Jan. 1, 2013.

Previous work carried out by Ryder Scott on the Beetaloo Basin in July 2009 and May 2010 indicated Prospective Resource recoverable volumes of 64 trillion cubic feet (Tcf) of gas and 18 billion barrels of oil. The work completed by RPS Energy, which considers the potential of the whole of the on-block basin, indicates a considerable increase in the Play level Prospective Resource recoverable volumes of 162 Tcf of gas and 21 billion barrels of oil. Falcon is pleased to see that its on-going efforts in the basin-scale re-evaluation of the Beetaloo Basin and the new information obtained in the Shenandoah-1 well are fully reflected in the latest resource volumes.

RPS Energy also updated their previous report on the Mako Trough, including for the first time Prospective Resource recoverable volumes attributable to the shallow Algyo Play which the company and its partner NIS will be targeting this year. According to the RPS CPR report, eight of the ten prospects identified by Falcon contain 568 billion cubic feet of prospective recoverable gas resources. Falcon and NIS have high graded the top three prospects which will be targeted by the initial three well exploration drilling program announced on the 14th January 2013 and commencing in late Q1 2013.

Philip O'Quigley, CEO of Falcon commented:

"The recent work completed by RPS Energy resulting in a substantial increase in the potential recoverable volumes in our acreage in the Beetaloo Basin augurs well for the future prospectivity of the Beetaloo Basin as well as confirming the substantial un-risked potential resources of the Algyo Play, now the target of a drilling campaign due to start by the end of March 2013."

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Statoil Confirms Third Norwegian Victim in Algeria

Three Norwegians who worked at the In Amenas gas facility in Algeria were confirmed dead on Friday, with little hope left that two who are still unaccounted for survived last week's terrorist attack.

Oil and gas major Statoil ASA (STL.OS, STO) said that three of its employees--Tore Bech, 58, from Bergen, Thomas Snekkevik, 35, from Austrheim and Bergen, and Hans M. Bjone, 55, from Brandbu--had been found dead, and that the company remained deeply concerned for those still missing.

"Our thoughts are first and foremost with the families and close friends who have lost their loved ones in this horrific and senseless attack on innocent people," said Chief Executive Helge Lund.

Norway's Ministry of Foreign Affairs earlier Friday said it no longer believes there is hope that the remaining Norwegians will be found alive.

"There are still search operations going on, inside and outside the In Amenas facility, but unfortunately we no longer consider it likely that survivors will be found," said Ministry of Foreign Affairs spokesman Svein Michelsen.

Algeria has said at least 37 foreigners were killed in the four-day siege of the facility, which began on Jan. 16. A team of forensic experts from Norway is working with Algerian authorities in the capital Algiers to identify bodies recovered after the attack.

The Norwegian victims were all employees of Statoil, which operates the gas field in a joint venture with BP PLC (BP, BP.LN) and Algerian state oil company Sonatrach.

Since Algerian forces ended the siege at the facility on Saturday, hope has diminished that the missing Norwegians may still be alive.

Mr. Lund and Norwegian Prime Minister Jens Stoltenberg have repeatedly urged citizens to be prepared for bad news.

"As Statoil has said, hope dwindles as time passes, and a number of days have now passed since the attack. Therefore it is now less likely that survivors will be found," said Mr. Michelsen. Mr. Stoltenberg met the U.K. Prime Minister David Cameron in Davos, Switzerland, on Friday. The two countries will cooperate to "prevent and handle future crises," Mr. Stoltenberg told Norwegian public broadcaster NRK, adding that the countries would also perform joint emergency response drills.

--Anna Molin contributed to this article.

Copyright (c) 2012 Dow Jones & Company, Inc.

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BP CEO Says Four BP Staff Most Likely Died In Amenas Attack-E-Mail

LONDON--Four members of BP PLC's (BP) staff have most likely died in the terrorist attack last week on an Algerian gas plant, the company's chief executive said Friday, adding that the U.K. oil giant will learn lessons from the tragedy.

An attack by Islamist militants in Algeria's Sahara on the In Amenas gas plant--run by BP, Statoil ASA (STL.OS) and Algerian state oil company Sonatrach--left at least 37 foreign workers dead. The event highlighted a formidable new threat for oil companies investing in the region.

In an internal e-mail to staff, BP CEO Bob Dudley said "it is now clear that four of our colleagues in all likelihood lost their lives in the attack on the In Amenas joint venture." Over the weekend, he had said the company had feared "the worst" for them.

Using unusually harsh language, Mr. Dudley said the plant was "attacked by murderers on what should have been an ordinary working day. This was an appalling act of evil--a barbarous and pre-meditated criminal attack."

But he insisted BP would help governments investigate the tragedy as well as learn lessons to avoid it being repeated.

"Governments will also be conducting their enquiries. BP will participate fully and share what knowledge and insights we have," Mr. Dudley said. "We will ensure any lessons are applied to prevent such an outrage occurring again."

The e-mail also hinted that the tragedy could hurt staff morale.

"This has been a heavy blow for BP and I can imagine people across the company asking many questions," the CEO said in the e-mail. "I am very clear about where BP goes. We go on."

Copyright (c) 2012 Dow Jones & Company, Inc.

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