ConocoPhillips Awards FMC with Bayu Undan Phase III Contract

ConocoPhillips Australia Pty. Ltd. and FMC Technologies Inc. have signed a contract for the supply of subsea equipment for its Bayu-Undan gas and condensate project in the Timor Sea. The contract is valued at $26 million.

Bayu Undan, which has been in production since April 2004, is undergoing a third phase of development. The contractor will supply subsea trees, wellheads, jumper kits and associated control systems.

During the first half of 2013, the Bayu-Undan Phase 3 development will focus on procuring long-lead items and securing contracts for a semisubmersible drilling rig, the company said. A final investment decision is expected in mid-2013 and will be followed by further detailed engineering and procurement activities. Drilling is anticipated to commence in the second quarter of 2014.

"FMC Technologies is pleased to provide ConocoPhillips with the subsea systems required to develop this field," said Tore Halvorsen, FMC Technologies' senior vice president, subsea technologies, in a statement.

The field sends hydrocarbons to the Darwin LNG plant which converts gas from the field into LNG for sale to Tokyo Electric and Tokyo Gas in Japan. In 2012, the company sold 148 billion gross cubic feet of LNG.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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Cal Dive Makes a Big Splash with Pemex Contract

Pemex Exploracion y Produccion (PEMEX) awarded Cal Dive International, Inc. two additional contracts totaling $188 million on top of a previously awarded contract in March.

In March, Cal Dive received a contracted to engineer, procure, install and commission 7 miles (12 kilometers) of 8-inch subsea pipeline and associated tie-ins on four existing platforms located in the Abkatun-Pol-Chuc field in the Bay of Campeche.  

The newly-minted contract is for the procurement, installation and commissioning of a 29 mile-long pipeline of 20-inch diameter and associated tie-ins to an existing platform. Offshore work construction on this portion of the contract will commence in the third quarter using two of the company's vessels and a third-party unit.

The second contract is for the procurement, installation and commissioning of 6 miles (9 kilometers) of two medium diameter subsea pipelines and associated tie-ins to existing platforms. Offshore construction for this contract is expected to commence in the fourth quarter of 2013 and should be completed by the end of the second quarter 2014.

"With the $63 million Pemex contract we announced in March, total contract awards with Pemex this year currently stand at $250 million," stated Cal Dive's Chairman, President and Chief Executive Office Quinn Hebert, in a released statement. "These awards increase our total Company backlog to over $400 million, our highest level in five years. We believe these awards demonstrate Pemex's confidence in Cal Dive as a reliable contractor. These recent contract awards not only secure work for the second half of 2013, but also provide significant visibility for the first half of 2014 when our domestic business is historically slow due to the winter work season. Also, we continue to bid for additional work in Mexico that would mostly benefit our 2014 results."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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Offshore Canada Contract for Aker

Norwegian oilfield services firm Aker Solutions reported Friday that it has won a five-year, $150 million contract with Husky Energy to support Husky's activities at the White Rose field offshore Canada.

Aker said the project will employ around 70 management and engineering employees onshore, as well as 20 people on rotation offshore. The scope of the work includes studies, modifications and campaign maintenance services. There is also an option to extend the contract for as many as 10 one-year periods.

"We are delighted that Husky has chosen us as their preferred partner for offshore engineering services at the White Rose field," said Tore Sjursen, head of maintenance, modifications and operations at Aker Solutions.

"Our presence in North America is increasing and the award will be a good foundation for further growth in Canada."

The White Rose field is located approximately 215 miles southeast of St. John's, Canada, and uses a floating production, storage and offloading (FPSO) vessel.

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Bilfinger Salamis Wins Chevron North Sea Contract

Bilfinger Salamis UK reported late Thursday that it has won a major contract with Chevron Upstream Europe to provide maintenance services to the company's North Sea platforms.

The contract, which has a potential value of approximately $77.5 million, will last for three years and has two additional renewal options. It will secure continuity of employment for more than 80 Bilfinger Salamis employees offshore and onshore.

Services provided to Chevron's assets – Alba North, Alba FSU, Captain WPP, Captain FPSO and the Erskine Platform – will include the supply of deck crews, rigging, coatings and insulation work, scaffolding, rope access, specialist cleaning and architectural services.

Bilfinger Salamis Delivery Manager Doug Sheal commented in a statement:

"We see this long-term contract award as an opportunity to invest further in our people and the equipment assigned to Chevron and further cement our positive working relationship. The contract award to Bilfinger Salamis UK builds on our existing track record, relationships and knowledge of the assets in a seamless manner without disruption to crews work plans or safety culture."

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Offshore Canada Contract for Aker

Norwegian oilfield services firm Aker Solutions reported Friday that it has won a five-year, $150 million contract with Husky Energy to support Husky's activities at the White Rose field offshore Canada.

Aker said the project will employ around 70 management and engineering employees onshore, as well as 20 people on rotation offshore. The scope of the work includes studies, modifications and campaign maintenance services. There is also an option to extend the contract for as many as 10 one-year periods.

"We are delighted that Husky has chosen us as their preferred partner for offshore engineering services at the White Rose field," said Tore Sjursen, head of maintenance, modifications and operations at Aker Solutions.

"Our presence in North America is increasing and the award will be a good foundation for further growth in Canada."

The White Rose field is located approximately 215 miles southeast of St. John's, Canada, and uses a floating production, storage and offloading (FPSO) vessel.

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Shell Awards Wood Group-CCC Majnoon Oil Field Contract

Anglo-Dutch oil company Royal Dutch Shell PLC has awarded Wood Group PSN and Consolidated Contractors Company, or CCC, a commissioning services contract, Wood Group said in a statement Tuesday.

The contract is to commission the first phase of the super giant Majnoon oil field in southern Iraq, it said without giving the value of the contract.

Wood Group-CCC, or WGCCC, will be responsible for the provision of skilled resources, tools, services and test equipment to assist the start-up, commissioning and testing of the new production facilities at the field.

Iraq's Oil Minister Abdul Kareem Luaiby said recently that Shell and its partners, Malaysia's Petronas Gas Bhd and the Iraqi state company will start production this month of 100,000 barrels a day from the field, believed to hold as much as 12.6 billion barrels of proven oil reserves.

The one-year contract will commence in June this year and see WGCCC employ about 200 personnel to service the contract, the statement said.

The new production facilities at the field include well site facilities, a central production facility and all new-build facilities and utilities required to operate the field, including pipelines and infrastructure.

Shell and Petronas were awarded the deal in December 2009 to develop the field located in southern Iraq near the Iranian borders and near Basra. Shell owns 45% of the venture and Petronas owns 30%, with the Iraq state-run company holding 25%.

Copyright (c) 2013 Dow Jones & Company, Inc.

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EMAS AMC Awarded Smorbukk South Contract by Statoil

Subsea services firm EMAS AMC reported Thursday that it has been awarded a $75-million contract from Statoil for its Smørbukk South extension project in the Norwegian Sea.

The contract will see EMAS AMC supply subsea engineering, procurement and offshore construction services to the project. This will include the installation of flexible flowlines, tie-in spools, manifolds and umbilicals, as well as associated abandonment and removal activities. The extension will be developed with a new subsea template connected to existing infrastructure in the area.

Offshore activities will start in the second quarter of 2014, with the project being expected to last through 2015.

EMAS Managing Director Lionel Lee commented in a statement:

"We have been investing heavily in building up our global engineering expertise as well as technologically advanced and game-changing assets. This has borne fruit and I am extremely pleased with this latest win by EMAS AMC. It demonstrates an ever growing confidence in our project execution capabilities and validates EMAS."

Discovered in 1985, the Smørbukk South Extension holds estimated recoverable reserves of 16.5 million barrels of oil equivalent. 

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EMAS AMC Awarded Smorbukk South Contract by Statoil

Subsea services firm EMAS AMC reported Thursday that it has been awarded a $75-million contract from Statoil for its Smørbukk South extension project in the Norwegian Sea.

The contract will see EMAS AMC supply subsea engineering, procurement and offshore construction services to the project. This will include the installation of flexible flowlines, tie-in spools, manifolds and umbilicals, as well as associated abandonment and removal activities. The extension will be developed with a new subsea template connected to existing infrastructure in the area.

Offshore activities will start in the second quarter of 2014, with the project being expected to last through 2015.

EMAS Managing Director Lionel Lee commented in a statement:

"We have been investing heavily in building up our global engineering expertise as well as technologically advanced and game-changing assets. This has borne fruit and I am extremely pleased with this latest win by EMAS AMC. It demonstrates an ever growing confidence in our project execution capabilities and validates EMAS."

Discovered in 1985, the Smørbukk South Extension holds estimated recoverable reserves of 16.5 million barrels of oil equivalent. 

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Shell Looks Set for Bab Sour-Gas Contract

ABU DHABI - State-run Abu Dhabi National Oil Co., or Adnoc, said that Royal Dutch Shell PLC has "good standing" in its bid to operate the Bab sour-gas field, the firm's director general Abdulla al-Suwaidi said Monday. 

The company has shortlisted Shell and France's Total SA for the estimated $10 billion deal, but is yet to make an official announcement on the winner. 

"Shell has good standing... in a couple of weeks we will pick one of them," Mr. Suwaidi told reporters in Abu Dhabi. 

Industry sources have said that Shell won the bid, after the two firms presented competitive offers. The main difference between the two bids was their approach in handling the massive amounts of sulfur produced at the field. 

The Bab field, once developed, will produce between 500 million cubic feet and 800 million cubic feet of gas per day, but expertise is required to handle the large amounts of sulfur generated from the estimated 15% hydrogen sulfide content of the gas. 

Shell has recommended exporting the sulfur, while Total submitted a proposal to reinject the sulfur back into the reservoir. 

The deal needs to be signed off by the emirate's highest oil authority, the Supreme Petroleum Council – which includes the most senior leaders in the emirate.

Copyright (c) 2013 Dow Jones & Company, Inc.

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Technip Wins Brazilian FPSO Contract

French oilfield services firm Technip announced Wednesday that it and partner Techint have been awarded a "substantial contract" by PNBV (a Petrobras subsidiary) to support the construction of the P-76 floating production, storage and offloading (FPSO) unit. Tasks include the topside construction and integration of the unit, as well as providing commissioning and start-up assistance.

Technip said its operating center in Rio de Janeiro will perform the project management, engineering and procurement for the contract. Fabrication, integration and commissioning of 24,000 tons of modules will be performed in Techint's yard in the south of Brazil. The project is scheduled to be completed by mid-2017.

José Jorge Araújo, Technip's senior vice president for onshore Latin America and offshore Brazil, commented in a statement:

"We are delighted to have the opportunity to keep working with Petrobras. This contract strengthens furthermore our presence in the burgeoning Brazilian offshore pre-salt market, where our leading-edge position enables us to meet its high standards and requirements. 

"We fully expect that our partnership with Techint will be a key to the success of the P-76 FPSO. Moreover, this project will contribute to the local economy as it will require approximately 70 percent of Brazilian local content."

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Technip Wins Brazilian FPSO Contract

French oilfield services firm Technip announced Wednesday that it and partner Techint have been awarded a "substantial contract" by PNBV (a Petrobras subsidiary) to support the construction of the P-76 floating production, storage and offloading (FPSO) unit. Tasks include the topside construction and integration of the unit, as well as providing commissioning and start-up assistance.

Technip said its operating center in Rio de Janeiro will perform the project management, engineering and procurement for the contract. Fabrication, integration and commissioning of 24,000 tons of modules will be performed in Techint's yard in the south of Brazil. The project is scheduled to be completed by mid-2017.

José Jorge Araújo, Technip's senior vice president for onshore Latin America and offshore Brazil, commented in a statement:

"We are delighted to have the opportunity to keep working with Petrobras. This contract strengthens furthermore our presence in the burgeoning Brazilian offshore pre-salt market, where our leading-edge position enables us to meet its high standards and requirements. 

"We fully expect that our partnership with Techint will be a key to the success of the P-76 FPSO. Moreover, this project will contribute to the local economy as it will require approximately 70 percent of Brazilian local content."

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HFG Wins EPC Contract for Alba Compression Platform

Heerema Fabrication Group (HFG) in the Netherlands has been awarded the EPCI (engineering, procurement, construction and installation) contract for the 6,000 ton Alba PSC B3 compression platform for Marathon Oil Corporation subsidiary Marathon E.G. Production Limited. The new Alba B3 greenfield gas compression platform to be bridge-linked to the existing Alba B2 platform.

Heerema Fabrication Group as the main contractor will manage the overall project from Houston in the United States and subcontract the EPCI scope, including offshore hook-up and commissioning of the platform in Equatorial Guinea, to third parties.

The Alba PSC B3 compression platform will consist of a topsides with a weight of 4,500 tons, a length of 131 feet (40 meters), a width of 131 feet (40 meters) and a height of 114 feet (35 meters). The 4-legged jacket will have a weight of 1,500 tons, a length of 108 feet (33 meters), a width of 108 feet (33 meters) and a height of 265 feet (81 meters).

HFG together with Iv-Oil & Gas in Papendrecht, the Netherlands, will jointly execute the EPC scope from Iv's subsidiary offices Iv-AGA in Houston. Sister division Heerema Marine Contractors in Leiden, the Netherlands, has been subcontracted for the transportation and installation of the platform in the Alba Field offshore Equatorial Guinea. The fabrication scope, including local content fabrication of the flare boom and bridge in Equatorial Guinea, will be tendered during 2013 aiming at offshore installation late 2015 with start-up planned for mid-2016.

Wim Matthijssen, Chief Operating Officer of Heerema Fabrication Group, said: "A challenging project for Heerema Fabrication Group and an opportunity to fully deploy our project management capabilities, which are fundamental for a project's success. An experienced project management team will coordinate the overall project scope from design to commissioning and manage subcontractors and equipment deliveries in order to succesfully deliver a high quality product safely and on time."

The Alba Field is a gas and condensate field located approximately 20 miles (32 kilometers) north of Bioko Island. MEGPL operates the Alba Field on behalf of itself and working interest partners Samedan of North Africa, Inc. a wholly-owned subsidiary of Noble Energy, Inc and Compania Nacional de Petroleos de Guinea Ecuatorial.

Copyright 2013 Dion Global Solutions Limited. All Rights Reserved.

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Aker Wins Solan Field Contract

Aker Solutions reported Thursday that UK independent Premier Oil has awarded it a $46-million contract to provide hook-up, commissioning and facility management services to Premier Oil at its Solan field development, west of Shetland. The contract is valid for three years from first oil, with two one-year extension options.

Aker said the hook-up project will see two subsea production and two subsea injection wells tied back to a fixed production platform located in Block 205/26a of the UK North Sea, the first of its kind west of Shetland. The platform, which will not be permanently manned, will produce oil that will be stored in a subsea tank before being exported via an oil-offloading system to shuttle tankers.

Aker said that work on the project will be led from its Aberdeen facility.

 Mike Forbes, Aker's managing director for its maintenance, modifications and operations business, commented in a statement:

"I am pleased that we are continuing to develop our relationship with Premier Oil and their joint venture partner on this significant project in a challenging and increasingly important sector of the North Sea.

"Having worked with Premier Oil and Chrysaor on the project since 2010 and played a supporting role in the sanction of this development and the technology behind it, we look forward to embarking on the next stage of Solan's evolution."

The UK's Department of Energy and Climate Change approved Premier's plans for the Solan oil field in April 2012. Once brought online, Solan is expected to produce 40 million barrels of oil at an initial rate of 24,000 barrels per day.

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Aker Wins Solan Field Contract

Aker Solutions reported Thursday that UK independent Premier Oil has awarded it a $46-million contract to provide hook-up, commissioning and facility management services to Premier Oil at its Solan field development, west of Shetland. The contract is valid for three years from first oil, with two one-year extension options.

Aker said the hook-up project will see two subsea production and two subsea injection wells tied back to a fixed production platform located in Block 205/26a of the UK North Sea, the first of its kind west of Shetland. The platform, which will not be permanently manned, will produce oil that will be stored in a subsea tank before being exported via an oil-offloading system to shuttle tankers.

Aker said that work on the project will be led from its Aberdeen facility.

 Mike Forbes, Aker's managing director for its maintenance, modifications and operations business, commented in a statement:

"I am pleased that we are continuing to develop our relationship with Premier Oil and their joint venture partner on this significant project in a challenging and increasingly important sector of the North Sea.

"Having worked with Premier Oil and Chrysaor on the project since 2010 and played a supporting role in the sanction of this development and the technology behind it, we look forward to embarking on the next stage of Solan's evolution."

The UK's Department of Energy and Climate Change approved Premier's plans for the Solan oil field in April 2012. Once brought online, Solan is expected to produce 40 million barrels of oil at an initial rate of 24,000 barrels per day.

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Odfjell Drilling Wins Mariner Contract

The UK's Odfjell Drilling has been awarded a $245-million contract to provide drilling services on the Mariner platform, Statoil announced Wednesday.

Aberdeen-based Odfjell will perform drilling services, maintenance of the drilling facility and drill pipe logistics for the Mariner field development, with options also on the Bressay field development, Statoil said. The contract duration is four years from November 2016 and will include three two-year options.

The Mariner platform is currently under construction. Odfjell Drilling will provide engineering and commissioning services to Statoil under the construction and start-up phase of the field development.

Morten Ruud, vice president Western Europe for Statoil Development and Production International, commented in a statement: 

"Mariner is the largest new offshore development in the UK in more than a decade. Over its lifetime the project will generate jobs and substantial ripple effects for UK and the Aberdeen region. This contract award is an example of that."

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Foster Wheeler Wins Technical Consultancy Contract in Egypt

Foster Wheeler AG (FWLT) announced that subsidiaries of its Global Engineering and Construction Group have been awarded contracts by Apache Khalda Corporation LDC (Apache Khalda) for the provision of technical consultancy services to oversee the engineering, procurement and construction (EPC) phase of the Qasr Compression Project in Egypt. The Qasr Compression Project will provide additional compression to the existing facilities at the Qasr gas condensate field, in the Western Desert, approximately 326 miles (525 kilometers) west of Cairo.

The Foster Wheeler contract value was not disclosed and will be included in the first-quarter 2013 bookings.

Foster Wheeler will assist Apache Khalda in the management and administration of the EPC phase of the project as part of a joint project management team. The EPC phase is expected to be completed in the first- quarter 2015.

The company also provided project management consultancy services to Apache Khalda during the front-end engineering design phase.

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FMC Wins Contract to Supply Smorbukk South

Oilfield equipment supplier FMC Technologies reported Wednesday that it has received a $96 million order from Statoil to supply the Smørbukk South extension project in the Norwegian Sea with several subsea components.

The scope of the contract includes ubsea trees, wellheads, a manifold, control systems and other associated equipment.

Smørbukk South is part of the Åsgard development in the Norwegian Sea, and the award is the third order for FMC Technologies from the fast-track portfolio agreement announced in 2012. The equipment is scheduled for delivery in 2014.

Tore Halvorsen, FMC Technologies' senior VP for Subsea Technologies, commented in a statement:

"FMC Technologies has been providing subsea equipment for the Asgard field since 1996."

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Petrofac Awarded Satah Al Razboot Contract

Petrofac announced Tuesday that it has been awarded an engineering, procurement, installation and commissioning (EPIC) contract by Abu Dhabi Marine Operating Company (ADMA-OPCO) for the Satah Al Razboot (SARB) package 3 project offshore Abu Dhabi. The $500-million contract will start shortly and will be delivered by April 2016, Petrofac said.

The SARB Project is described by the firm as a high-priority and new field development off the northwest coast of Abu Dhabi. Drilling will be conducted from two artificial islands (SARB1 and SARB2) with the well fluid sent by subsea pipeline to a facility on Zirku Island for processing, storage and export.

Under the terms of the contract Petrofac will deliver approximately 130 miles of subsea pipelines for well fluid, water injection, gas injection, flare and export, along with two miles of onshore pipeline and 32 miles of subsea power and communication cables. The offshore scope of the contract includes the provision of two riser platforms and four flare platforms with four interconnecting bridges and one single point mooring (SPM) buoy located at the north of Zirku Island.

The onshore scope of the contract includes the following: drilling utilities, foundations on SARB1 and SARB2, transport, install, hook up and assistance in the commissioning of the accommodation modules.

Yves Inbona, managing director of Petrofac's Offshore Capital Projects (OCP) business, commented in a company statement:

"We are delighted to have been chosen to deliver this important project as part of the high priority SARB development. This award is further confirmation of the increased demand we see for Petrofac to broaden its market leading EPC capability offshore, and we look forward to cooperating with ADMA-OPCO and meeting its fast track requirements on this highly significant development." 

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ProSep Clinches Gulf of Mexico Contract

ProSep Inc. announced Tuesday it was awarded a contract for the supply of a produced water treatment system valued at approximately $1.3 million, for installation on a floating production storage and offloading (FPSO) vessel that will operate in a deep-water field in the Gulf of Mexico. The equipment is expected to be delivered during the first half of 2014.

"ProSep offers one of the industry's most advanced portfolio of solutions for the treatment of produced water. Our equipment is specifically designed to operate under the strictest operating and environmental standards, a key value proposition for oil and gas companies," said Jacques L. Drouin, president & CEO.

The solution provided consists of an induced gas flotation unit (IGFU) which recovers oil and reconditions produced water for overboard discharge or re-injection. ProSep's IGFU design delivers high efficiency removal of oil and solids with a separation efficiency of up to 98%, allowing the customer to meet stringent Gulf of Mexico specifications.

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Petrofac Awarded Satah Al Razboot Contract

Petrofac announced Tuesday that it has been awarded an engineering, procurement, installation and commissioning (EPIC) contract by Abu Dhabi Marine Operating Company (ADMA-OPCO) for the Satah Al Razboot (SARB) package 3 project offshore Abu Dhabi. The $500-million contract will start shortly and will be delivered by April 2016, Petrofac said.

The SARB Project is described by the firm as a high-priority and new field development off the northwest coast of Abu Dhabi. Drilling will be conducted from two artificial islands (SARB1 and SARB2) with the well fluid sent by subsea pipeline to a facility on Zirku Island for processing, storage and export.

Under the terms of the contract Petrofac will deliver approximately 130 miles of subsea pipelines for well fluid, water injection, gas injection, flare and export, along with two miles of onshore pipeline and 32 miles of subsea power and communication cables. The offshore scope of the contract includes the provision of two riser platforms and four flare platforms with four interconnecting bridges and one single point mooring (SPM) buoy located at the north of Zirku Island.

The onshore scope of the contract includes the following: drilling utilities, foundations on SARB1 and SARB2, transport, install, hook up and assistance in the commissioning of the accommodation modules.

Yves Inbona, managing director of Petrofac's Offshore Capital Projects (OCP) business, commented in a company statement:

"We are delighted to have been chosen to deliver this important project as part of the high priority SARB development. This award is further confirmation of the increased demand we see for Petrofac to broaden its market leading EPC capability offshore, and we look forward to cooperating with ADMA-OPCO and meeting its fast track requirements on this highly significant development." 

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