GE Secures Support Expansion Work for Brazil's Pre-Salt Fields

GE's Power Conversion business (GE) is proving to be an ideal partner for builders and operators of drillships and semi-submersibles. In the last 12 months, GE has won contracts valued at more than $600 million to provide propulsion systems with customers leading the pre-salt oilfield expansion off Brazil's east coast. GE's systems will power, propel, navigate, position and control drillships and also power and control the drilling process itself.

Today, GE is in the process of building systems for 22 of the 29 drillships for the current phase of the Brazilian oil and gas exploration by Brazilian energy corporation Petrobras.

"Our advanced power generation, propulsion technology, drilling drives, dynamic positioning (DP) and automation and control systems are being harnessed to improve today's marine and offshore processes with cleaner, more productive vessels," said Paul English, GE's Power Conversion marine business leader.

"Vessel builders are coming to GE because it has proven equipment and systems, it has considerable experience in supplying equipment for use in deep domains, it is a flexible engineering partner with very strong technical credentials and has a record of supplying on time and within budget. One of our unique specialties is that we design and deliver complete integrated electrical and control systems packages in house - our single-source approach significantly relieves shipbuilders of much of the technical and commercial risk and effort associated with managing and coordinating multiple individual equipment suppliers."

The four most important contracts won by GE in recent months related to the Brazilian pre-salt oil and gas exploration venture by Brazilian energy corporation Petrobras, include:

Seven "Espadon 200" drillships to be built by Estaleiro Atlântico Sul (EAS) in Ipojuca, northeast Brazil will be supplied with electrical power generation, propulsion, drilling drives. DP and control systems from GE.Ecovix-Engevix will use integrated electric power and propulsion, drilling drives, DP and controls packages from GE for three new GustoMSC PRD 12000 ultra-deepwater drillships it is building in Rio Grande, in the south of the country.Enseada do Paraguaçu Shipyard will use a comprehensively integrated package of electric power, propulsion, drilling drives, DP and control systems from GE for six new ultra-deepwater drilling ships (also GustoMSC PRD 12000 design) it is building in Maragogipe, northeast Brazil.Keppel Offshore & Marine Ltd. will use GE's thruster power, propulsion and drilling drive technology for six new, semisubmersible drilling rigs being built for Brazil's national oil company Petrobras. Keppel is a leading designer and builder of high-performance, mobile offshore rigs.

Petrobras is searching for hydrocarbons up to 186 miles (300 kilometers) off the coast of Brazil, in rock formations up to 5 km below the seabed and in water depths of up to 6,562 feet (2,000 meters). The pre-salt layer holds an estimated 10–16 billion barrels of oil equivalent.

Exploration and recovery of these reserves are expected to require the construction of around 40 new drilling vessels between now and 2020. The Brazilian government is calling for local content to be used as much as possible in these vessels.

A large part of GE's Power Conversion operations for production and support of systems for the pre-salt are located in Brazil. The company has operated manufacturing facilities in Brazil for more than 30 years, including production facilities in Betim (near Belo Horizonte), and in Campinas, 60 miles from Sao Paulo City, GE's Americas center of excellence for medium- and high-voltage induction motors employs 1,200 people.

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ConocoPhillips to Shut 3 North Sea Gas Fields

LONDON - ConocoPhillips will close its J-Block natural-gas operations in the U.K. North Sea for 10 days from April 8, the company said Thursday.

In a notice on its website, ConocoPhillips said the shut-down, which is weather dependent, will involve the Judy/Joanne, Jade and Jasmine fields, which together supply between 4.5 million and 5 million cubic meters of gas a day.

Last week, the U.K. government issued a statement to reassure consumers that the country's supply of natural gas would be sustained, despite the closure of a crucial pipeline connected to mainland Europe, during an ongoing period of unseasonably cold weather, and the low volume of gas in storage.

Also Thursday, Houston, Tx.-based ConocoPhillips said its onshore Teesside Oil Terminal, in northeast England, will close from July 3 to July 27. Crude oil and natural gas liquids from J-Block and the Greater Ekofisk Area fields are delivered to Teesside, at a rate of between 9.5 million and 10.7 million cubic meters a day.

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

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EnerMech Scores Work for BG Group's North Sea Fields

Mechanical engineering services company, EnerMech, has been awarded a process services contract by BG Group which could be worth up to $24 million (GBP 16 million).

The three year contract (+1 year option) covers all BG Group's UK North Sea assets including the Lomond, North Everest and Armada platforms.

The workscope includes the provision of topside process, flange management and nitrogen services and is the first contract EnerMech has secured with BG Group.

Aberdeen-based EnerMech said the contract win will create new jobs and take its total workforce to more than 1,400.

EnerMech's director of Process, Pipeline & Umbilicals, Les Graves, said: "We are looking forward to assisting BG Group in supporting their assets in the North Sea and this award reaffirms our position as a major supplier of process services to the oil and gas sector."

In January EnerMech acquired Australian valves engineering and servicing company, Valve Tech Engineering, in a multi-million pound deal which followed the acquisition in December of Cape Town based Water Weights International SA (Pty) Ltd which specializes in heavy load testing of cranes and lifting equipment.

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EnerMech Scores Work for BG Group's North Sea Fields

Mechanical engineering services company, EnerMech, has been awarded a process services contract by BG Group which could be worth up to $24 million (GBP 16 million).

The three year contract (+1 year option) covers all BG Group's UK North Sea assets including the Lomond, North Everest and Armada platforms.

The workscope includes the provision of topside process, flange management and nitrogen services and is the first contract EnerMech has secured with BG Group.

Aberdeen-based EnerMech said the contract win will create new jobs and take its total workforce to more than 1,400.

EnerMech's director of Process, Pipeline & Umbilicals, Les Graves, said: "We are looking forward to assisting BG Group in supporting their assets in the North Sea and this award reaffirms our position as a major supplier of process services to the oil and gas sector."

In January EnerMech acquired Australian valves engineering and servicing company, Valve Tech Engineering, in a multi-million pound deal which followed the acquisition in December of Cape Town based Water Weights International SA (Pty) Ltd which specializes in heavy load testing of cranes and lifting equipment.

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Brazil's OGX Declares Three Offshore Oil Fields Commercial

RIO DE JANEIRO - Brazilian independent oil producer OGX Petroleo e Gas Participacoes SA, part of billionaire businessman Eike Batista's industrial empire, said late Wednesday that it had declared three offshore oil fields commercially viable for development.

The commercial declarations mean that OGX will move forward with development of the fields, which could add a much-needed boost to the company's crude-oil production after disappointing results at the Tubarao Azul field. Investors have punished OGX's shares recently amid concerns that the company will be unable to generate sufficient returns.

OGX said two fields in the previously named Pipeline accumulation will be renamed Tubarao Tigre and Tubarao Gato, while the Fuji-Illimani discover will be renamed Tubarao Areia. Evaluation plans were also submitted to local regulators to further explore the Tulum, Viedma and Vesuvio discoveries in the Campos Basin and the Curitiba Belem and Natal discoveries in the Santos Basin.

The submissions were required after exploration periods for OGX's concessions expired on Tuesday.

While commercial declarations are generally seen as positive developments for oil companies in Brazil, OGX's decision to report "in place" oil volumes for the three fields of between 521 million barrels of oil equivalent, or BOE, and 1.34 billion BOE is raising questions.

In-place oil volumes aren't the same as recoverable volumes, or the amount of oil that a company can be expected to recover from a reservoir, noted Credit Suisse in a research report. "We ask ourselves why announce 'in situ' ['in place'] when industry practice is to announce recoverable volumes, something which OGX itself did for its other two fields," Credit Suisse said.

OGX didn't provide the market with the "certainty" about the company that it needs, Credit Suisse said. A month-on-month decline in crude oil output in February caused market analysts to issue a series of downgrades on the company's shares this week, many of them equivalent to a sell rating with price targets at about $1.

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

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Abu Dhabi Invites More International Firms to Bid for Biggest Oil Fields

DUBAI - Abu Dhabi National Oil Co., or Adnoc, has invited several international oil firms, in addition to existing partners, to bid for the renewal of a shared license to operate some of the emirate's largest onshore oil fields, two people familiar with the matter said.

U.S.-based firms Chevron Corp. and Occidental Petroleum Corp. (OXY), China National Petroleum Corp., or CNPC, Japan's Inpex Corp., Korea National Oil Corp., or KNOC, Norway's Statoil ASA and Russia's OAO Rosneft were among the new companies invited, the people said.

The 75-year-old concession, which expires at the end of the year, produces more than half the United Arab Emirates crude production of 2.6 million barrels a day and is one of the few major oil-producing areas in the Persian Gulf where international companies hold a stake.

Without an invitation, the companies would not have an opportunity to be involved in the concession as the emirate does not open the competition to any bidder.

Adnoc holds a 60% controlling stake in Abu Dhabi Co. for Onshore Oil Operations, or Adco, which operates the concession. The remaining 40% is shared between BP PLC, Exxon Mobil Corp., Royal Dutch Shell PLC, Total SA and Partex Oil & Gas.

Adnoc has already invited all existing partners except for Partex to reapply for the concession.

In addition, "Adnoc is interested in getting new partners in the concession and therefore they sent invitation letters to several companies back in June," a person close to the matter told Dow Jones Newswires. "More people could be allowed later but it is a good way to see who has the right criteria to bid."

Chevron, Statoil, Rosneft, and CNPC would not say whether they had received the invitations.

KNOC said it has submitted documents for the preliminary qualification review and is waiting to hear back from Adnoc.

An Inpex spokesman would not comment on any specific project but said that the company intends to expand its presence in Abu Dhabi.

Occidental Petroleum did not respond to requests for comment.

Adnoc has already proposed to Abu Dhabi's highest oil authority, the Supreme Petroleum Council, a one-year extension to the concession, saying the next 10 months aren't enough time to complete a new deal with international partners. The council is expected to approve the extension soon.

The Adco concession, which covers six main deposits, is the largest in the country with capacity to produce about 1.5 million barrels daily. The United Arab Emirates, which includes Abu Dhabi, plans to increase its output capacity to 3.5 million barrels a day by 2017, from its current estimated maximum output capacity of around 2.85 million barrels a day.

Abu Dhabi is home to more than 90% of crude in the U.A.E., one of few Middle East countries that allow foreign companies to explore for and produce oil within its borders. The Gulf state has four major concessions and has said it may allow more foreign companies, such as from South Korea and China, to be partners in other, more marginal, oil fields.

In-Soo Nam in Seoul, Mari Iwata in Tokyo, James Marson in Moscow, Kjetil Malkenes-Hovland in Oslo, Wayne Ma in Beijing and Ben Lefebvre in Houston contributed to this story.

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

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UK Energy Secretary Expects 28 New Fields on UKCS in 2013

The UK Secretary of State for Energy and Climate Change Ed Davey confirmed at a meeting in Parliament Wednesday night that the government expects around 28 new oil and gas fields on the UK Continental Shelf to get approval this year, following the approval of 29 projects in 2012.

Speaking at the British Oil & Gas Industry All Party Parliamentary Group at its annual reception at Westminster Palace, which was attended by Rigzone, Mr Davey reiterated the UK government’s support for the UK oil & gas industry.

"Oil and gas will form an integral part of the UK energy mix for decades to come. Over 70 percent of the UK's primary energy demand may still be filled by oil and gas into the 2040s. With 20 billion barrels or more still to be drawn from the UK’s North Sea fields, having an indigenous source helps prevent overreliance on imports from more volatile parts of the world," Mr Davey said.

"So the UK oil and gas industry is a vitally important strategic resource now and over the next half century, to help fulfill our energy needs and as a contribution to the UK’s energy security."

Davey illustrated how the UK government has been acting to encourage investment and innovation in the oil and gas sector.

"Introducing, for instance, new field allowances West of Shetland; extending the small fields allowance; and putting in place new allowances for shallow-water gas fields."

The result of this has seen the level of investment in new oil and gas fields increase significantly in recent years, the Energy Secretary pointed out.

"The level of investment in new oil and gas projects sanctioned in 2011 was over 10 times the amount of 2009. 18 projects with a total value of $20.5 billion (GBP 13 billion) were approved. In 2012, 29 projects [were] approved with capital expenditure of over $17.3 billion (GBP 11 billion). In 2013, we are already expecting around 28 new fields to get approval."

Also at the meeting was Oil & Gas UK Chief Executive Malcolm Webb, who commented in his own speech: "We welcome the Coalition government’s new long-term approach to the UK oil and gas industry which is already reaping rewards for the British economy... With improvements to the tax regime as a result of better engagement with the Treasury, no less than 30 new offshore oil and gas developments were approved in the last twelve months.

"Furthermore, 167 new licences to explore for petroleum in UK offshore waters were awarded in the latest licensing round. This upturn is set to continue and presents excellent business opportunities right across our world-class supply chain to the benefit of the UK’s energy security, balance of trade and tax revenues. Most importantly at this time however, it has, as predicted, resulted in thousands of new and well paid jobs."

Statoil said in December that its recent decision to go ahead with its $7 billion-plus Mariner heavy oil field in the UK North Sea was positively affected by the expansion of the UK's Ring Fence Expenditure Supplement – a measure taken by the UK government to support investment in marginal fields.

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.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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UK Energy Secretary Expects 28 New Fields on UKCS in 2013

The UK Secretary of State for Energy and Climate Change Ed Davey confirmed at a meeting in Parliament Wednesday night that the government expects around 28 new oil and gas fields on the UK Continental Shelf to get approval this year, following the approval of 29 projects in 2012.

Speaking at the British Oil & Gas Industry All Party Parliamentary Group at its annual reception at Westminster Palace, which was attended by Rigzone, Mr Davey reiterated the UK government’s support for the UK oil & gas industry.

"Oil and gas will form an integral part of the UK energy mix for decades to come. Over 70 percent of the UK's primary energy demand may still be filled by oil and gas into the 2040s. With 20 billion barrels or more still to be drawn from the UK’s North Sea fields, having an indigenous source helps prevent overreliance on imports from more volatile parts of the world," Mr Davey said.

"So the UK oil and gas industry is a vitally important strategic resource now and over the next half century, to help fulfill our energy needs and as a contribution to the UK’s energy security."

Davey illustrated how the UK government has been acting to encourage investment and innovation in the oil and gas sector.

"Introducing, for instance, new field allowances West of Shetland; extending the small fields allowance; and putting in place new allowances for shallow-water gas fields."

The result of this has seen the level of investment in new oil and gas fields increase significantly in recent years, the Energy Secretary pointed out.

"The level of investment in new oil and gas projects sanctioned in 2011 was over 10 times the amount of 2009. 18 projects with a total value of $20.5 billion (GBP 13 billion) were approved. In 2012, 29 projects [were] approved with capital expenditure of over $17.3 billion (GBP 11 billion). In 2013, we are already expecting around 28 new fields to get approval."

Also at the meeting was Oil & Gas UK Chief Executive Malcolm Webb, who commented in his own speech: "We welcome the Coalition government’s new long-term approach to the UK oil and gas industry which is already reaping rewards for the British economy... With improvements to the tax regime as a result of better engagement with the Treasury, no less than 30 new offshore oil and gas developments were approved in the last twelve months.

"Furthermore, 167 new licences to explore for petroleum in UK offshore waters were awarded in the latest licensing round. This upturn is set to continue and presents excellent business opportunities right across our world-class supply chain to the benefit of the UK’s energy security, balance of trade and tax revenues. Most importantly at this time however, it has, as predicted, resulted in thousands of new and well paid jobs."

Statoil said in December that its recent decision to go ahead with its $7 billion-plus Mariner heavy oil field in the UK North Sea was positively affected by the expansion of the UK's Ring Fence Expenditure Supplement – a measure taken by the UK government to support investment in marginal fields.

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.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UK Energy Secretary Expects 28 New Fields on UKCS in 2013

The UK Secretary of State for Energy and Climate Change Ed Davey confirmed at a meeting in Parliament Wednesday night that the government expects around 28 new oil and gas fields on the UK Continental Shelf to get approval this year, following the approval of 29 projects in 2012.

Speaking at the British Oil & Gas Industry All Party Parliamentary Group at its annual reception at Westminster Palace, which was attended by Rigzone, Mr Davey reiterated the UK government’s support for the UK oil & gas industry.

"Oil and gas will form an integral part of the UK energy mix for decades to come. Over 70 percent of the UK's primary energy demand may still be filled by oil and gas into the 2040s. With 20 billion barrels or more still to be drawn from the UK’s North Sea fields, having an indigenous source helps prevent overreliance on imports from more volatile parts of the world," Mr Davey said.

"So the UK oil and gas industry is a vitally important strategic resource now and over the next half century, to help fulfill our energy needs and as a contribution to the UK’s energy security."

Davey illustrated how the UK government has been acting to encourage investment and innovation in the oil and gas sector.

"Introducing, for instance, new field allowances West of Shetland; extending the small fields allowance; and putting in place new allowances for shallow-water gas fields."

The result of this has seen the level of investment in new oil and gas fields increase significantly in recent years, the Energy Secretary pointed out.

"The level of investment in new oil and gas projects sanctioned in 2011 was over 10 times the amount of 2009. 18 projects with a total value of $20.5 billion (GBP 13 billion) were approved. In 2012, 29 projects [were] approved with capital expenditure of over $17.3 billion (GBP 11 billion). In 2013, we are already expecting around 28 new fields to get approval."

Also at the meeting was Oil & Gas UK Chief Executive Malcolm Webb, who commented in his own speech: "We welcome the Coalition government’s new long-term approach to the UK oil and gas industry which is already reaping rewards for the British economy... With improvements to the tax regime as a result of better engagement with the Treasury, no less than 30 new offshore oil and gas developments were approved in the last twelve months.

"Furthermore, 167 new licences to explore for petroleum in UK offshore waters were awarded in the latest licensing round. This upturn is set to continue and presents excellent business opportunities right across our world-class supply chain to the benefit of the UK’s energy security, balance of trade and tax revenues. Most importantly at this time however, it has, as predicted, resulted in thousands of new and well paid jobs."

Statoil said in December that its recent decision to go ahead with its $7 billion-plus Mariner heavy oil field in the UK North Sea was positively affected by the expansion of the UK's Ring Fence Expenditure Supplement – a measure taken by the UK government to support investment in marginal fields.

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.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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O&G Firms Evacuate Workers, Shut In Fields for Cyclone Peta's Passing

Oil and gas companies operating offshore northwest of Western Australia have started shut in operations and personnel evacuation programs, after they received warnings to expect winds of up to 62 miles an hour in the wake of a tropical low which has strengthened into Cyclone Peta.

People in the area are being warned to expect thunderstorms and heavy rainfall, and a flood warning has been issued for Pilbara.

A spokesperson representing Apache Corp. confirmed with Rigzone Wednesday that the Stag and Van Gogh fields are shut in, due to the expected path of Cyclone Peta.

"Preparations include the making safe of all facilities in the forecast radius to gales, and the evacuation of non-essential personnel from offshore operations in the area," the spokesperson said.

Meanwhile, a spokesperson representing Woodside said that the company is taking the necessary precautions to safeguard its people and assets in response to Cyclone Peta.

Cyclone Peta follows closely on the heels of Cyclone Narelle, which passed offshore Western Australia in the second week of January.

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

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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O&G Firms Evacuate Workers, Shut In Fields for Cyclone Peta's Passing

Oil and gas companies operating offshore northwest of Western Australia have started shut in operations and personnel evacuation programs, after they received warnings to expect winds of up to 62 miles an hour in the wake of a tropical low which has strengthened into Cyclone Peta.

People in the area are being warned to expect thunderstorms and heavy rainfall, and a flood warning has been issued for Pilbara.

A spokesperson representing Apache Corp. confirmed with Rigzone Wednesday that the Stag and Van Gogh fields are shut in, due to the expected path of Cyclone Peta.

"Preparations include the making safe of all facilities in the forecast radius to gales, and the evacuation of non-essential personnel from offshore operations in the area," the spokesperson said.

Meanwhile, a spokesperson representing Woodside said that the company is taking the necessary precautions to safeguard its people and assets in response to Cyclone Peta.

Cyclone Peta follows closely on the heels of Cyclone Narelle, which passed offshore Western Australia in the second week of January.

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

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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