NOVEMBER / DECEMBER 2009

AOG
ASIAN

OIL

&

GAS

West Atlas write-off:

the inquest begins
Chinese purchase
presents pretty puzzle
Deepdish of the day
for Japanese driller

Heading for
the floater
frontier

AUTOMOTIVE . EQUIPMENT . MANUFACTURING & ENGINEERING . OIL & GAS

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Beyond Boundaries

AOG_M_4_UMW_FP.indd 1

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Learn more about UMWs True Stories at
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11/12/09 17:18:41

contents

november/december 2009

AOG
ASIAN OIL & GAS

Asian Oil & Gas

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7-12

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ASIAN OIL & GAS november/december 2009

http://interactive.aog-mag.com

Editorial

Asia Pacific Editor: John Mueller

US tel: (+1) 802 229 5194
jrreports@hotmail.com

AOG is now
available in
digital format
replicating
the printed version
with many added
features and
benefits including:
> early issue delivery
> full search
> archiving
> PDF download
> website
> e-mail links

AUSTRALIA

CHINA
INDIA
INDONESIA

KAZAKHSTAN
MALAYSIA
MIDDLE EAST
NEW ZEALAND
PAPUA NEW GUINEA
PHILIPPINES
TIMOR SEA
TURKMENISTAN
VIETNAM

Asia Pacific oil and gas news

and views at a glance, including:
Wheatstone partnered;
Gorgon yields more gas;
Pluto LNG nearing
completion; Longtom gas
tapped
Petronas buys into Cairn;
CBM targeted in Shanxi
Bengal for Cauvery Basin;
Tamil Nadu gas startup
Sizing up the CBM resource;
Masela stake swap; Oyong gas
flows; Lemang block moves
French take Kazakh stake
Two Sabah awards; China
LNG cargo first
Al Shaheen module loadout
Taranaki Basin moves
Sinopec HoA for PNG LNG
Deepwater Palawan pact;
Tindalo oil a step closer
West Atlas rig a write-off
German focus on Turkmen
FPSO for White Rhinoceros;
Lac Da Nau oil strike

COVER: The finishing touches being put to the BW Pioneer at

Singapores Keppel yard prior to the FPSOs December sailaway.
In 2010 it will become the first such vessel in the US Gulf of Mexico
as well as extending the operational water depth record for FPSOs
to 8200ft. AOGs update on this and other recent Asia Pacific
shipyard developments starts on page 40.

http://interactive.aog-mag.com
3

contents

14/15

TIMOR TRIAL BY FIRE

17-20

CHINAS SEISMIC SHIFT

22/23

BOHAI TEAMWORK

24-28

DEEPWATER DASH

30-32

DEEPDISH TO GO

34/35

PIPE WELD PUSH

36-39

RECOVERY ROAD

REGULAR FEATURES

The monetary and environmental cost of

the 72-day Montara field oil leak which
culminated in a devastating two-day
platform fire in the Timor Sea has yet
to be determined, but the Australian
government has been quick to establish a
Commission of Inquiry into the incident
that will have the powers and authority
of a Royal Commission. Rick Wilkinson
reports.
Major players in the marine seismic
market are playing it cool, but there must
be some apprehension about the potential
impact of recent moves by the Chinese
contractor BGP. Andrew McBarnet
reviews the story so far. Plus: the latest
Asia Pacific seismic briefs.
A major oilfield discovery in Chinas
Bohai Bay is being developed using a
collaborative visualization environment.
The state-of-the-art iCenter facility is
discussed here by PetroChinas Mu Lihua
and Zang Feng and Schlumbergers
Yuan Xiang Gao.
International drilling contractors Ensco
and Pride are starting to see the pay
off from carefully nurtured strategic
initiatives aimed at transforming
themselves into dedicated deepwater
players. Jennifer Pallanich talks to both.
Continuing in rig technology vein,
the Japan Drilling Companys
semisubmersible drilling rig Harukuryu-5
was recently upgraded with Exmar
Offshores innovative Deepdish pontoon
sponson. Exmars Joel Wetmore and
Ed Nagel discuss how the concept can
improve the capabilities and operating
life of ageing rigs.
Pipeline specialist CRC-Evans
engineering VP Shankar Rajagopalan
discusses the thinking behind his
companys new smart laser sensors and
their potential for global deployment.
As operators aim to recover more
and more hydrocarbons from each
reservoir, oilfield service companies are
lining up offerings to help them do so.
Jennifer Pallanich reviews some of the
service companies latest production
optimization offerings.
Shipyards roundup (40/41), Product review
(42/43), Contracts/deliveries (44/45),
Company news (46/47), Appointments
(47/48), Events (48), Display advertisers
index (48), AOG Bookshop (49-51).
november/december 2009 ASIAN OIL & GAS

OE_M_4_Light_House_HPV.indd 1

11/12/09 14:36:14

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11/12/09 17:07:09

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news update

West Atlas jackup a write-off

TIMOR SEA
The West Atlas jackup
drilling rig has been formally
condemned by its insurers
following a fire on PTTEP
Australasias Montara
wellhead platform that took
place in the Timor Sea early
November 2009.
Rig owner Seadrill,
acknowledging its
responsibility for the removal
of West Atlas from the
field and confirming it has
adequate insurance coverage
to fulfil this obligation, said on
4 December that it had started
the process of assessing the
damage to the rigs drilling
package and superstructure
resulting from the fire.
Prior to the fire, the drilling
package was located above and

separate from the Montara

wellhead platform but it
now appeared to be partially
resting on the Montara
platform, said Seadrill.
It is uncertain at this
time how long it will take
to remove the West Atlas
from the Montara field, the
Bermuda-based company
noted early December. The
drilling rig will require
detailed inspection by a range
of structural and equipment
experts. The removal
process will be developed
and managed by specialist
contractors familiar with
such operations in liaison
with relevant regulatory
authorities in Australia.
z Montara fire: the inquests
begin, see feature page 14.

VIETNAM

CHINA

FPSO for White

Rhinoceros

CBM targeted
in Shanxi

Bumi Armada Berhad

of Malaysia and partner
Vietsovpetro are to provide
a floating production unit
for the Te Giac Trang (TGT
or White Rhinoceros)
field development project
in Vietnam, undertaken
by Hoang Long JOC, a
partnership of PetroVietnam,
Soco International, PTTEP
and OPECO.
The seven year contract,
with annual extensions
up to 15 years, requires an
FPSO capable of producing
45,000bopd and storing
1mmbo, to be converted from
a Suezmax tanker acquired
by Bumi Armada and
operated and maintained by
Vietsovpetro, and includes
offshore installation, hookup
and commissioning.
TGT is located in the
northern part of block 16-1, in
the Cuu Long Basin, 100km
southeast of Vung Tau and
20km northwest of the Bach
Ho Field.

Pacific Asia Petroleum has

commenced a multi-well
drilling programme on its
100% owned and operated
Zijinshan onshore CBM gas
asset in Shanxi Province,
China.
The Zijinshan Asset,
estimated by the China United
Coal Bed Methane to have
potential gross gas resources
in excess of 3.8tcf, is in close
proximity to the major
West-East gas pipeline and
the Ordos-Beijing Pipeline.
Another new pipeline
dedicated to CBM is under
construction in the Ordos
Basin, also near the Zijinshan
Asset.
INDONESIA

FLNG stake
Inpex Masela has agreed to
transfer a 10% stake of their
100% held and operated
Masela block, located in
the Arafura Sea, eastern
Indonesia, to PT EMP Energi

ASIAN OIL & GAS november/december 2009

Indonesia, a subsidiary of
PT Energi Mega Persada, an
Indonesian upstream oil and
gas company.
The 3221km Masela Block,
situated in 300-1000m water
depths, contains the Abadi gas
field, discovered in 2000 and
approved by the Indonesian
Government to output 4.5mtpa
of LNG and 13,000b/d of
condensate using a floating
liquefied natural gas (FLNG)
facility. Startup is expected in
2016.

funding, and 25% by PNOC

Exploration.
BHP Billiton has also
purchased a 25% stake in
ExxonMobil E&P Philippines
SC56 in the South Sulu Sea,
where the consortium has
started drilling an exploration
well at an estimated cost of
$100 million.

PHILIPPINES

Hindustan Oil Exploration

(HOE) has commenced
production from the PY-1
gas field, located offshore
Tamil Nadu province on the
southeast coast of India.
HOE, an Indian company
controlled by Eni through a
47.16% share, is 100% interest
holder and operator of the
PY-1 field, and its onshore
plants, located about 60km off
the coast and 300km south of
Chennai.
PY-1 gas production,
estimated to reach 50mmcfd,
will be sold to GAIL for supply
to the local power generation
market.

Deepwater
Palawan pact
BHP Billiton Petroleum and
PNOC Exploration are to
jointly explore for oil and
gas in the West Balabac
area in Service Contract 59
(SC59), off the southwestern
tip of Palawan Island, the
Philippines, close to the
producing Kikeh oil field in
Sabah, East Malaysia.
SC59, covering 14,760km in
water depths up to 3000m, is
75% held by BHP Billiton, who
will be operator and provide

INDIA

Tamil Nadu
gas startup

news update

Sizing up the CBM resource

INDONESIA
Indonesias extensive
coal reserves have been
estimated to hold up to 450
trillion cubic feet of coalbed
methane (CBM). As yet
there is no commercial CBM
production in the country,
but a production sharing
contract awarded to a Vico-led
consortium by the Indonesian
government is aiming to
change all that.
The Vico joint venture
owned jointly by BP and
Eni leads the consortium
that has signed a PSC for the
exploration and development

of CBM resources on the

Sanga-Sanga block in East
Kalimantan, heralding the
first significant development
of CBM in Indonesia. The
consortium will pay a
signature bonus of $4 million,
and will now start work
towards delivering the
$38 million work programme
commitment.
Vico has been producing
conventional gas resources
from the block for over 40
years.
Andy Inglis, BPs chief
executive of exploration and
production, said: Alongside

the Tangguh LNG project in

Papua, this important new
access to Sanga-Sangas CBM
resources will allow BP to
continue to grow our LNG
production in Indonesia
and underlines Indonesias
continuing significance to BP.
The PSC covers an area
of around 1700km2 in the
Kutai Basin. Preliminary
studies suggest the block has
a CBM resource potential of
at least 4tcf of gas but further
appraisal is required to more
closely define this potential.
The PSC overlays the same
acreage as the existing

AUSTRALIA

interest and Kufpec 8.75%,

with Chevron remaining
project operator.
Chevron expects to make
a Wheatstone project final
investment decision in 2011,
the facilities to be located
at Ashburton North on the
mainland.

well, drilled to a total depth

of 4500m, encountered
approximately 100m of net gas
pay in permit WA-374-P.

Wheatstone
partnered . . .
Chevron has signed an
agreement with Apache
Julimar and Kufpec Australia
(Julimar), to bring them into
the Wheatstone LNG project
as natural gas suppliers and
25% equity partners in project
facilities.
Under the accord, Apache
and Kufpec will provide
natural gas from their offshore
Julimar and Brunello fields
amounting to 25% of the inlet
gas to trains 1 and 2 of the
Wheatstone project. Apache
will receive a 16.25% equity
QATAR
LAUDING LOADING: As part
of the Al Shaheen Field
development offshore Qatar
by Maersk Oil Qatar, Lift &
Shift India has achieved
the heaviest, and largest
offshore loadout in India,
totaling 3300t. Fabricated
by Larsen & Toubro, the
package included a total of
five modules of 300t to 2800t,
moved using 116 hydraulic
axle lines.
The Al Shaheen field, in
block 5 and in production
since 1994, is being further
developed, involving the
8

. . . as Gorgon
yields more gas
Chevron has made an
additional natural gas
discovery in the Greater
Gorgon area of the Carnarvon
Basin, about 160km offshore
Western Australia.
The Achilles-1 exploration

PAPUA NEW GUINEA

Sinopec heads
of agreement
for PNG LNG
Esso Highlands, operator of
the PNG LNG project in Papua
New Guinea, and participants
have entered into a HoA
with Unipec Asia Company,
a Sinopec subsidiary, for the
long-term supply of 2mtpa of
LNG to a receiving terminal
Sinopec will build in China.

Sanga-Sanga conventional
PSC, which has extensive gas
production infrastructure
already in place with access
to markets internationally
through the Bontang LNG
plant as well as to local
customers.
This existing infrastructure
is expected to accelerate
development of CBM to
production. BP Indonesia
president William Lin
said: With VICOs existing
knowledge and infrastructure,
we expect production to begin
rapidly in a very few years
and its supply to Bontang will
enable Indonesia to become
the worlds first CBM-to-LNG
producer.

PNG LNG operator

ExxonMobil has provided a
revised capital expenditure
for phase one of the project,
now put at approximately
$15 billion, an increase on
the $12.5 billion pre-FEED
estimate due principally to
the inclusion of pre startup operating costs and
scope changes including
acceleration of some works.
At the same time, LNG plant
output is expected to increase
from 6.3mtpa to 6.6mtpa
resulting from greater fuel
efficiency.
Overall the PNG LNG
project is progressing towards
first gas in late 2013 to early
2014.

drilling of more than

160 additional production
and water injection wells,
as well as installation of
15 new production and
accommodation platforms,
interconnected by subsea
pipelines.
Oil output is planned to
plateau at 525,000b/d from
the end of 2009.
Maersk Oil Qatar, 100%
interest holder of the
3600km2 block, will also build
and operate additional
facilities for gathering and
delivery of associated gas to
Qatar Petroleum.
november/december 2009 ASIAN OIL & GAS

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11/12/09 18:31:29

news update

Pluto LNG nearing completion

AUSTRALIA
The huge Pluto LNG Project
offshore Western Australia,
now over 80% complete, has
received a boost from a series
of contracts at the end of 2009.
Approved by Woodside in
mid-2007, the development
of the Pluto and Xenia gas
fields in the Carnarvon Basin
includes five subsea large
bore wells producing to a
shallow-water production
platform 27km away. Gas
will be transported from the
fixed platform in an 85m
water depth through 180km
of pipeline to an onshore
LNG plant at Dampier on
the Burrup Peninsula. The
initial single-train LNG
processing facility, in the
new Burrup LNG Park, will
have a production capacity of
4.3mtpa, as well as an export
jetty and storage facilities.
Located in 830m of water,
the five subsea wells are being
developed through subsea
trees linked to two subsea
production manifolds.
The Foster Wheeler and
WorleyParsons project joint
venture and KBR are to
provide a Pluto LNG Train 2

MALAYSIA

Two Sabah
awards
Petronas has awarded
production sharing contracts
for block SB309 and block
SB310 offshore Sabah, East
Malaysia to a 70:30 partnership
of Talisman Malaysia, as
operator, and Petronas
Carigali.
The two blocks, measuring
5815km2 and 7271km2
respectively, are located in
water depths of up to 150m,
where exploration efforts have
largely been confined to the
shallower areas.
Block SB309 is required
to have 1300km2 of new
3D seismic data gathered
10

and 3 FEED study for an

undisclosed sum, expected to
be completed in 2H 2010.
AGC Industries, an
AusGroup subsidiary, will
receive $28 million over a
three-year period for provision
of fabrication services
in support of a facilities
maintenance programme, both
on the Burrup Peninsula and
offshore.
AGC Industries will also
undertake the painting,
insulation and cladding works
for the Pluto LNG onshore
plant, located next to the
existing North West Shelf

Karratha gas plant, for

$31 million.
Additionally, AGC
Industries has a $19 million
order for work associated with
construction of an effluent
treatment plant and another,
worth $9 million, to fabricate
and load out the temporary
living quarters module for
offshore commissioning of the
Pluto riser platform.
Thiess Kentz will earn
$80 million at the LNG
processing site for efforts
that include installation and
testing of electrical, lighting
and power equipment and

and three wells drilled to a

minimum aggregate depth
of 8500m, with a financial
commitment estimated at
$75 million.
Block SB310 must have
1300km2 of new 3D seismic
data acquired and five wells
drilled to an aggregate depth of
14,500m, and an expenditure of
at least $117 million.

to sell a 10% interest in six

of its operated blocks off the
Greenland coast to Petronas
for $70 million under a farm-out.
Moreover, Cairn India
has raised $1.6 billion from
domestic and overseas lenders
to repay debt and accelerate
the Rajasthan project where
crude oil production recently
commenced.

INDIA

INDONESIA

Petronas buys
into Cairn

Oyong gas flows

Petronas has purchased a 2.3%

stake in Cairn India for
$240 million, raising its
holding in the company to
14.94%.
Cairn India has also agreed

The gas production phase

has begun from the Santosoperated Oyong oil and gas
field, located in the Sampang
PSC, offshore the east coast
of Java and south of Madura
Island, Indonesia, transported
via a 60km pipeline from the

control and instrumentation

and safety systems.
To date, Jumbo Shipping
heavylift vessels Daniella
and Fairlift have completed
23 voyages for Pluto LNG,
transporting 256 pieces of
equipment to Dampier,
including pre-assembled
structures and pipe racks
weighing up to 240t, loading
from Laem Chabang Port and
Port Sattahip in Thailand, Port
Klang, Malaysia and the port of
Melbourne in Australia. Fairlift
will complete the final phase
with five more shipments by
early 3Q 2010.
Woodside has determined
that the cost of the project, on
schedule to deliver first gas
end 2010 and LNG in early
1Q 2011, is now expected
to be 6% to 10% above the
$10.35 billion approved by the
company at the time of the FID
(final investment decision) in
2007, due to under budgeting
onshore and offshore
construction overheads.
Woodside Petroleum is
Pluto project operator and
90% interest holder, with
Kansai Electric and Tokyo Gas
each retaining 5%.

offshore wellhead platform to

an onshore processing plant
at Grati for use in electrical
power generation.
VIETNAM

Lac Da Nau
oil strike
Oil has been discovered
offshore southeast Vietnam in
block 15-01/05 with the LDN-1X
exploration well, drilled in the
Lac Da Nau prospect, located
in the southern part of the
permit, producing 4200bopd on
test in basement rock.
Phu Quy Petroleum
Operating E&P, a subsidiary
of PetroVietnam, is the
operator of 3800km2 block
15-1/05, holding a 40% stake.

november/december 2009 ASIAN OIL & GAS

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11/12/09 16:55:04

news update

German focus on Caspian Sea area

TURKMENISTAN
RWE Dea of Germany has
set up a branch office in
Ashgabat, Turkmenistan with
first focus on the exploration
phase of 940km2 block 23,
located in the Turkmen
section of the southeastern
Caspian Sea, awarded to the
company as part of a PSC
concluded in 3Q 2009.
An environmental impact
study will be carried out
initially, prior to a 400km2
3D seismic survey, based on

existing 2D data, followed by

an exploration well.
Meanwhile, the Southern
Yoloten-Osman field, located
in the Amudarya Basin in
eastern Turkmenistan, has
been assessed by Gaffney,
Cline & Associates to have
estimated natural gas reserves
of 14tcm, ranking it fourth
worldwide.
Development has been
suggested in stages, each
designed for production of
10bcm (350bcf) per annum.

. . . as French take Kazakh stake

NEW ZEALAND

30%, and Cue Taranaki 20%.

The other permit, largely
onshore and south of New
Plymouth, contains several
gas prospects for which
there is an option to drill
exploration wells in later
years. Stakeholdings here are
Todd Exploration 50%, Mighty
River Power 30%, and Cue
Taranaki 20%.

of Kairiki Energy, to farmout 5% of its 40% stake in

SC54A, offshore the northwest
coast of Palawan Island, the
Philippines, for $3.8 million.
Nido Petroleum Philippines,
Kairikis joint venture partner
in SC54A, has also entered into
an agreement with Trafigura
to farm-out 10% of its working
interest in the block on similar
terms and conditions.
The two farm-outs will
enable the JV to progress
towards development of the
Tindalo oil discovery followed
by other targets within SC54A,
which also contains the Yakal
oil discovery.
Nido, as operator, is
finalising arrangements
for a drilling rig and a FSO
vessel and preparing final
investment decision approvals
for the project.

Taranaki Basin
moves
Australian Worldwide
Exploration has been granted
new Taranaki Basin permit
PEP51558, offshore New
Plymouth, along the west
coast of New Zealands North
Island. AWE and its two
partners Mitsui E&P Australia
and Mighty River Power Gas
Investments each hold a 33.3%
share in the permit, named
Parihaka.
The work programme for
2850km2 Parihaka requires
200km of the 2D seismic data to
be acquired within two years
and an exploration well drilled
in three years.
Meanwhile, Cue Energy has
obtained 20% stakes in two
Taranaki Basin exploration
permits from their operator
Todd Exploration through
farm-ins.
One permit, covering
2628km2 offshore and adjacent
to the Maari and Manaia oil
fields, involves a two-year
seismic programme that
consists of data reprocessing,
and 2D and 3D seismic
acquisition, with an option to
drill exploration wells in the
third and fifth years of the
five-year permit.
Permit participants are
Todd Exploration 50%,
Horizon Oil (New Zealand)
12

MALAYSIA

China LNG
cargo first
Malaysia LNG Tiga, a
Petronas subsidiary, has
delivered its first cargo of
60,500t of LNG to Shanghai
LNG, shipped by the vessel
Puteri Intan Satu from the
LNG complex at Bintulu,
Sarawak, East Malaysia to
Yangshan LNG receiving
terminal, south of Shanghai.
This consignment is part of
a 25-year sale and purchase
agreement to supply up to
3.03mtpa of LNG, the first
long-term contract between
Petronas and China.
PHILIPPINES

Tindalo oil
a step closer
Trafigura Ventures III
has reached agreement
with Yilgarn Petroleum
Philippines, a subsidiary

Total and GdF-Suez in partnership with KazMunaiGas

have signed a heads of agreement for development of the
Khvalynskoye condensate field, located in the Caspian Sea
in a 25m water depth on the border between Kazakhstan and
Russia.
Total and GdF-Suez will acquire a participation of 25%
(Total 17%, GdF-Suez 8%) from the initial 50% stake held by
KazMunaiGas.
The Khvalynskoye field, operated by Lukoil (50%) is
scheduled to come onstream in 2016 with an estimated
production of up to 9bcf of gas per annum, to be transported to
Russia.

INDIA

Bengal for
Cauvery Basin
Bengal Energy has been
provisionally assigned a 100%
stake and operatorship of
1362km2 offshore southeast
India block CY-OSN-2009/1
by the Directorate General of
Hydrocarbons, part of
NELP VIII bid round.
The award requires Bengal
Energy to acquire 310km of 2D
and 81km2 of 3D seismic data
during the first four years of

the seven-year exploration

phase of in the block, located
in the southern Cauvery
Basin in the Gulf of Mannar,
stretching seven to 16km
offshore.
AUSTRALIA

Longtom gas
tapped
Nexus Energy has initiated
gas production from its wholly
owned and operated Longtom
field, situated in a water
depth of 56m offshore in the
Gippsland Basin, southeast
Australia, in permit VIC/P54.
INDONESIA

Lemang block
moves
Ramba Energy, based in
Singapore, has paid $7 million
for the 41% interest held by
PT Indelberg Indonesia in the
Lemang block, an oil and gas
concession bordering Jambi
and Riau provinces in central
Sumatra, Indonesia.
Furthermore, Ramba
Energy and Lemang block
partners PT Hexindo
Gemilang Jaya and Super
Power Enterprises Group
have entered into a TAA
with PetroChina Jabung
for the provision of oil and
gas technical services to the
prospect.

november/december 2009 ASIAN OIL & GAS

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timor sea

LEFT & INSET:

Montara on fire
with the West
Atlas cantilever buckled over and down
on to the wellhead platforms helideck
and flames spreading to the jackup
rigs upper superstructure. The pictures
were taken on 2 November from
the firefighting vessel Nor Captain
during a run to within 200m of the
burning structures to allow an Alert
Well Control team to better assess the
situation. PHOTO: PTTEP AUSTRALASIA.
BELOW: West Atlas sister rig West
Triton (background), brought in to
drill the relief well.

Inquests and investigations

follow Montara incident

The monetary and environmental cost of the 72-day Montara field oil leak which culminated
in a devastating two-day platform fire in the Timor Sea has yet to be determined, but the
Australian Government has been quick to establish a Commission of Inquiry into the incident
that will have the powers and authority of a Royal Commission. Rick Wilkinson reports.

he company at the centre of the

drama, 100% field owner and operator
PTTEP Australasia a subsidiary of
the Thai national petroleum exploration
and production company has pledged
funding for an extensive environmental
monitoring program of the surrounding
seas and northern Australian coastline.
In addition, four parallel reviews
and investigations are being carried
out by Northern Territory and Federal
Government departments, the National
Offshore Petroleum and Safety Authority
and the Australian Maritime Safety
Authority.
The Montara oil and gas field, which
lies in 80m of water about 650km west
of Darwin, was still in development
stage when the saga began on 21 August.
14

A steel wellhead platform had been

installed earlier in the year and Seadrills
jackup rig West Atlas was engaged in
simultaneously drilling and completing
two horizontal production wells plus a
gas re-injection well through the platform
jacket when oil and gas were detected
leaking from one of them.
The rig and platform were immediately
evacuated and PTTEP engaged
troubleshooting company Alert Well
Control to lead a well control program. It
was decided to bring in another Seadrill
jackup West Triton to drill a relief well.
There was a delay of several weeks while
the second rig was towed in from Singapore
and then another month to drill the relief
well.
In the meantime oil continued to

leak into the sea at an estimated rate of

400b/d, a circumstance which caused
an outcry from environmental groups
around Australia and internationally.
PTTEP, backed by the oil industry,
maintained that as Montara oil is very
light crude much of the spill dispersed
and evaporated quickly in the tropical
temperatures of the region.
More delays occurred when four
attempts to intersect the rogue well from
West Triton failed. The fifth attempt
on 30/31 October succeeded and heavy
mud was pumped down to kill the leak.
Unfortunately during that operation gas
and oil from the leaking well ignited at
the surface and fire broke out around
the cantilever section of the West Atlas
engulfing the rig and platform.
november/december 2009 ASIAN OIL & GAS

timor sea

ABOVE: The Montara wellhead platform,

illustrated by the black cross in the centre
of the image, and oil spill. The image is
from the TERRA satellite, part of the Earth
Observing System (EOS) established by
NASA.
Initial attempts to douse the fire with
seawater from a nearby service vessel
failed and the company decided the best
course of action was to continue pumping
heavy mud to kill the well and stop the
flow of fuel for the fire at its downhole
source.
This was accomplished on 2 November,
although spot fires continued on the
rig for another day. They were allowed
to burn themselves out. The resultant
damage is graphically illustrated in the
accompanying photos (below).
PTTEP has conducted several aerial
reconnaissance flights to help assess the
damage and said it would re-board the

ASIAN OIL & GAS november/december 2009

platform when deemed safe (see page 7).

However the company was tight-lipped
about the cause of the incident saying it
would save any comment for the official
inquiries. Its future plans for the field
are also uncertain. PTTEP acquired the
Montara field along with nearby Swift,
Swallow and Skua oil fields in December
2008 when it bought the assets of private
Australian company Coogee Resources.
Coogee had already established plans
to develop all four fields (in Skuas case
re-develop as BHP Petroleum produced it
until 1997) using subsea completions and
flowlines to Montara as the hub where an
FPSO would be stationed. PTTEP picked

up those plans and intended to bring the

fields onstream beginning in early 2010.
Montara was originally found by
BHP Petroleum in 1988. It has a 10m oil
column underlying a 25m gas cap. Overall
2P oil reserves for the four fields have
been estimated at 38 million barrels
recoverable.
The Australian Governments
Commission of Enquiry is to report
its findings before April 2010 and
include recommendations on measures
that might prevent similar incidents
occurring and alleviate the safety,
environmental and resource impacts
arising from such an incident.

15

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11/12/09 18:22:57

seismic

Marine market ponders

latest Chinese puzzle

Major players in the marine seismic market are playing it cool, but there
must be some apprehension about the impact of recent moves by the
Chinese contractor BGP. Andrew McBarnet reviews the plot so far.

he Houdini act performed by ION

Geophysical in time for this years
SEG Annual Meeting held in Houston
late October must rate as one of the great
escapes by a company facing a dismal
financial situation and a persistently
poor outlook for improved performance
of some of its key offerings. Rescue came
in the form of a major joint venture
with the Chinese geophysical contractor
BGP, announced on the eve of the SEG
gathering. The deal, which still has to be
okayed by various regulatory authorities,
only involves IONs land seismic
acquisition product lines which have
struggled for years to make

inroads into the increasingly dominant

position held by the CGGVeritas company
Sercel.
However, the marine seismic
community seems unlikely to remain
immune from the fall-out. You only have
to consider the implication of BGP now
having a significant 16% share of ION
as part of the land deal. BGP has made
no secret of its ambition to become a
significant force in the marine seismic
world.
Furthermore, as a state-owned
subsidiary of the Chinese National
Petroleum Company (CNPC) it

presumably has access to funds to acquire

the rest of ION at a stroke if it felt so
minded, shareholders were persuaded
and the US government allowed such an
acquisition. In such a case BGP would
have control of the jewels in the ION
collection, which are the marine seismicrelated acquisition and processing
companies acquired over the last decade
or so.
In 1998 Input/Output as ION was
known then, acquired New Orleansbased DigiCOURSE, the designer and

NEW PARTNERS AT SEG (left

to right): Guo Yueliang,
VP, BGP International;
Wang Tiejun, president,
BGP; Jay Lapeyre,
chairman, ION;
Bob Peebler,
CEO, ION

ASIAN OIL & GAS nov

november/december
vemb
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17

seismic

OHM Leader: CSEM project for BGP.

manufacturer of industry leading marine
positioning systems for the seismic
industry, including birds, which control
streamer cable depth during towing,
compasses, and acoustical devices. The
DigiFIN streamer steering device, subject
of a serious seeming patent dispute with
Schlumbergers WesternGeco Q-Marine
system, is the most recent Digi product.
In 2004 I/O bought Concept Systems
which with the old DigiCOURSE now
forms IONs marine imaging systems
business unit.
Concept has been producing the
favoured positioning and navigation
seismic software systems for most of
the marine seismic contractors outside
WesternGeco for more than 20 years.
It has also branched into multi-vessel
operational data management. The
same year I/O added GXT, a high-end
processing company which has expanded
its horizons by commissioning a series of
multi-client 2D seismic surveys around
the world targeting basin-wide, ultradeep, hydrocarbons prospects.

A long engagement?
The idea that BGP might one day bid for
ION is of course complete speculation. In
the event of a bid for ownership, BGPs
Chinese credentials might become an
issue. In common with its competitors,
IONs streamers contain elements of
technology which have potential military
application in the submarine warfare
field. This could be a stumbling block for
US regulators. It is also the case that BGP
has no experience of managing a major
western technology company, and could
be wary about taking on the significant
language, cultural and management style
barriers likely to arise. The land seismic
joint venture may turn out to be just as
a getting to know you period or dating
before any mention of the marriage word.
Yet, ION appears to be somewhat
vulnerable to predators or a break-up.
The joint venture highlights cracks in
the companys faade revealing a number
of business units which are not fully
18

integrated. ION management seemed

to be developing a smaller version of
CGGVeritas or Schlumberger with
a finger in seismic data acquisition
and processing as well as equipment
manufacture and development. But with
the land seismic acquisition drafted into
a new entity, the company must look very
different to the financial markets.
Although its share price has seen
a recovery from rock bottom since
the Chinese deal was announced, the
company could be considered a bargain
from a share value perspective. Thanks
to the joint venture agreement, the
balance sheet will be cleared of its most
worrisome debt. It was observed by many
that Bob Peebler, CEO of ION, looked a
relieved man at the SEG meeting. The
upside for ION was the cash injection of
some $175 million in total from BGP plus
$40 million in bridge financing arranged
by BGP. The price was the 16% stake in
ION and the hand-over of more or less
its entire land seismic business to a joint
venture in which BGP will be the 51%
shareholder.
This may not be such a bad thing.
BGP is by far the dominant contractor
on land. It has over 100 seismic crews
operating in China and around the
world needing equipment. In theory this
provides a ready market for the joint
venture without looking further afield.
An existing ION customer, BGP was the
first company to buy the FireFly cableless
land seismic acquisition system in which
ION had invested great hopes.
As for its marine seismic ambitions
BGP announced its intention to get
serious in February 2006. That was when
BGP bought a factory stern trawler with
a view to converting it into a six streamer
3D seismic vessel, the BGP Pioneer
(AOG January/February 2007). It also
revealed that OYO Geospace would be
supplying equipment to the companys
first ocean bottom cable vessels. Company
chairman Wang Tiejun declared at the
time that customers had been asking BGP
to enter the market for five years. The
request was certainly logical in view of
what the company had achieved on land.
In the international marine seismic
community, it has been the assumption
ever since this launch that BGP would
gradually, remorselessly build itself into
a global marine geophysical contractor.
This would mirror the companys land
seismic experience which began in the
1960s. BGP only entered the international
land seismic market in 1994, but today
has 40 crews overseas. Over time it

has worked for most of the major oil

companies. The company lists a total of
101 land seismic crews, eight shallow
water and transition zone crews, seven
vertical seismic profile crews and 20 nonseismic crews operating in 29 countries
on four continents. This dwarfs any
western company with 20 or so crews at
maximum.
BGP has a relatively modest fleet of
seismic vessels today. It consists of the 3D
seismic vessel BGP Pioneer, the 2D
BGP Surveyor, and the BGP Researcher,
whose ocean bottom cable seismic
operations to date have been largely
confined to Chinese waters ahead of
seeking work worldwide. The
BGP Challenger entered the fleet
very recently. This is a 2D/3D vessel,
ironically equipped with two of IONs
newly introduced DigiSTREAMER solid
streamers plus a recording system.
Start-up of BGPs marine operations
has not all been plain sailing, and there
is an impression that the company
has found marine seismic operations
much more challenging than land. For
example, it took on the Odincova fishing
trawler conversion to a 2D seismic vessel
called BGP Atlas. It was chartered from
Nordic Maritime, a Singapore-based ship
management company and did some work
for the multi-client specialist survey
company TGS-Nopec. For reasons which
have never been made public BGP gave
up on the running of the vessel in 2008,
but renamed as Nordic Venturer it is still
working for TGS-Nopec.
In July the keel-laying ceremony was
held for the construction at a Chinese
shipyard of a 12-streamer 3D seismic
vessel due out in 2010, probably the first
of a number of similar vessels in the next
few years signalling a step up in the pace
of BGPs market penetration.
If BGPs land seismic business model
applies, there will be some breathing
space before the company makes its
presence felt by the current marine
seismic leaders such as WesternGeco,
CGGVeritas, Petroleum Geo-Services
(PGS) and Fugro. BGP will most probably
operate its 12-streamer vessel in Chinese
waters for a time as a learning process.
On land the companys first international
survey contracts tended to be with
relatively unsophisticated national oil
companies around the world at prices
that western contractors could not match.
Its service to begin with may not have
been to the highest standards but was
clearly cost effective for many countries
seeking hydrocarbons prospects data.
november/december 2009 ASIAN OIL & GAS

seismic

Nordic Venturer, formerly BGP Atlas.

Today there is no question that BGP
operations meet the quality expectations
of the major oil companies.

Future family
One would expect that BGP will be
equally circumspect with the growth
of its seismic marine services. There is
little doubt that it is preparing for bigger
things. Last year the company opened
an international marine office and
more recently announced initiatives to
train foreign nationals in China and in
Houston. In order to build the integrated
global geophysical services company BGP
is explicitly aiming for, land and marine
seismic data acquisition capability is
not enough. A huge reservoir geophysics
research centre opened a few months
ago appearing to confirm the companys
realisation that it has to have the all
round technology to compete.
Another symptomatic development was
last months strategic partnership agreed
between BGP and UK-based Offshore
Hydrocarbons Mapping (OHM) for
carrying out marine controlled source
electromagnetic (CSEM) survey design,
acquisition and processing services. OHM
was awarded a $2.5 million CSEM data
contract offshore Equatorial Guinea,
scheduled to start late November.
This first foray into marine CSEM
technology follows in the footsteps of the
tentative moves made by all the leading
contractors. BGP, it seems, wants to have
the full panoply of geophysical service
offerings and stay abreast of marine
CSEM as it evolves.
There is no suggestion at this stage
that BGP wants to invest in OHM which
already has CGGVeritas as a minority
shareholder. It is more a case of giving
OHM first refusal on jobs it comes across
and working together to find the best
solution. Fugro and Norwegian company
Electromagnetic GeoServices (EMGS)
have a somewhat similar cooperative
arrangement.
In some areas, despite the Chinese
reputation for long term planning
ASIAN OIL & GAS november/december 2009

Six streamer 3D seismic vessel BGP Pioneer.

unthinkable in the Western hemisphere,
there may be a temptation to accelerate
the companys build-up. The likely
availability of some seismic vessel for
sale bargains could be a case in point.
The newbuild fiasco in Spain over
one or two vessels ordered and then
cancelled by PGSs Arrow subsidiary
because of delays, and the three vessels
in India unfinished as a result of Scan
Geophysicals insolvency, presumably
leave potentially high-end 3D seismic
vessels looking for buyers. Also, ships
taken off the market by the big players
to reduce available capacity have a habit
of returning to the market unless, like
CGGVeritas did recently, the ships are
sent directly for scrap. BGP among others
may want to review the opportunities to
pick up well priced additional capacity
for when the market ticks up, admittedly
not a scenario anticipated in 2010.
One potentially weak ingredient in
BGPs make-up may prove to be an
internationally recognised full seismic
data processing and earth modelling
service, which can offer oil company

OHM vessel: ready for first CSEM

operation off Equatorial Guinea.

client all the latest techniques to

optimise the interpretation of subsurface
information and its integration with
other data. The company does have its
own line of software and makes use
of foreign brands, but it would be a
stretch to say it could compete with big
processing houses such as CGGVeritas
and WesternGeco in terms of advanced
imaging techniques.
Which kind of brings us back to ION.
The companys GXT division offers
advanced seismic imaging solutions
which at the right price would be of
interest to lots of companies wanting
to strengthen their data processing
credentials. Working alongside ION on
land and as a company shareholder,
BGP will get an inside view not just of
GXT, but the marine imaging systems
operation. Who is to say that the joint
venture business model emerging for
IONs land seismic equipment could not
be repeated for its marine side?
Here, BGP might find itself in
competition with other geophysical
contractors. PGS and Fugro come to mind
as companies that might see upside in a
joint venture. Both would like to bolster
their processing capability so that they
can do more third party work, which
makes GXT an attractive proposition. The
addition of GXTs active Span multi-client
library activities would also do no harm.
Both companies have been longstanding
customers of IONs marine imaging
systems (Concept Systems), so know their
potential value in the world market.
ION management and shareholders
may not like their assets being ruthlessly
weighed up in this way, especially when
they are currently undervalued because
of the continuing dampener on demand
for seismic services. The problem is that
the genie cannot be put back in the bottle.
Right now the industry has its eye on
BGP and where it will go with its ION
connection.
But there are other players who may
create scenarios beyond even the level of
speculation expressed here.

19

seismic briefs

Kuwait land seismic

system deployed
WesternGeco announced early December
that it had deployed the UniQ pointreceiver land seismic acquisition and
processing system in Kuwait for Kuwait
Oil Company (KOC). The system is
currently acquiring data from 45,000 live
point-receiver channels utilizing
WesternGeco DX-80 Desert Explorer
vibrators and MD Sweep technology.
Part of the Q-Technology portfolio, the
UniQ system combines extreme channel
count point-receiver technology with
support for advanced simultaneous
source techniques. Building upon the
fidelity provided by the broad bandwidth
geophone accelerometer sensor, UniQ can
support up to 150,000 live channels at a
two-millisecond sample interval.
The point-receiver fidelity, advanced
source techniques and tailored noise
removal opportunities provided by UniQ
generate high-quality seismic data,
enabling decisions to be made faster and
with more confidence, said Marwan
Moufarrej, WesternGeco VP land.
The WesternGeco suite of advanced
geophysical services includes
electromagnetic services and the
Q-Technology point-receiver high-fidelity
seismic acquisition-to-inversion platform.

Frontier basins survey

Crown Minerals of New Zealand has
contracted the CGGVeritas seismic vessel
Bergen Resolution for seismic surveys
encompassing frontier basins off the
coasts of both North and South islands.
Along the southeast coast of North
Island approximately 3000km of 2D
seismic data will be acquired in the
Pegasus Basin, where preliminary
studies by GNS Science suggest there is
considerable hydrocarbon potential.
Subsequently, Bergen Resolution will
gather around 4000km of 2D seismic in the
Great South Basin and Bounty Trough,
off the south and southeast coast of South
Island, respectively
Reconnaissance data will also be
acquired across the Challenger Plateau
and Bellona Trough area, outer Taranaki
Basin, and Northland East Slope Basin
area off the west coast of North Island,
where satellite surveys have detected
natural oil seeps.
It is anticipated that exploration
companies will utilise the Bergen
Resolution to acquire further 2D
20

to last approximately two years, covering

several urban districts as well as shoals
and shallow water and crossing the
Manifa oilfield in the northern sector of
the Arabian Gulf.
A 2D project over the S63 desert
prospect is expected to last about four
years.
The S64 2D TZ effort involves surveying
in shallow water and to depths of 1700m,
and includes shoals, islands and desert,
through 2010.

Busy SeaBird

and 3D seismic data. Additionally,

Crown Minerals will conduct detailed
geotechnical studies in the Taranaki
Basin.

PNG highland
prospect
The Barikewa 60km 2D seismic survey
in the highlands of west central Papua
New Guinea has commenced in PRL9,
scheduled for completion in early 1Q 2010.
The Barikewa-1 discovery well in 1957
intersected gas in the Toro and Hedinia
sandstones and flowed up to 9mmscf/d
on test, with no gas-water contact
encountered. Barikewa-2 was drilled in
1982 with no shows due to unexpected
faulting.
To date the Barikewa structure has
only been defined by surface geological
mapping and one seismic line recorded
in 1997. Improved structural definition
will determine the location of Barikewa-3,
expected to be drilled during 2011.
PRL9 participants are Oil Search
(PNG), seismic survey operator, and
Barracuda (permit operator), each now
holding 42.553% interests, along with
Cue PNG Oil (14.894%).

SeaBird Exploration secured a series of

awards in the 4Q for its marine seismic
vessels Aquila Explorer and Northern
Explorer in Asia.
The Acheron non-exclusive 2D seismic
survey has been undertaken using the
Aquila Explorer within permit WA-385-P,
located in southwest Carnarvon Basin,
Western Australia. Partner Searcher
Seismic has proposed that the survey be
opened for bidding in the 2010 Federal
acreage release round.
The Aquila Explorer (pictured below)
was scheduled to initially gather 3500km
of long-offset 2D seismic data to the west
of the Bernier Ridge, with an option to
return to the area in January 2010 to
acquire an additional 2000km of infill
data, subsequent to a 4500km 2D survey
in the Bremer Basin, southwestern
Australia. These three surveys, along
with a fourth in Indonesia in October, are
estimated to be collectively worth some
$5-$7.5 million.
SeaBird has also obtained letters of
award for the Northern Explorer in
Indonesia for 1000km of 2D in North Java
and 13,200km of 2D in an unidentified
area for an oil company consortium.
This second Indonesian contract carries
contingent options for survey expansion
to 20,612km of 2D. The two contracts are
expected to have a duration of 5-7 months
and a combined value of $10-$15 million.
In addition, SeaBird has been awarded
an 3000km 2D survey, valued at about $2.4
million, off the east coast of India using
its recently reactivated seismic vessel
Osprey Explorer.

BGP triple
BGP of China has begun three seismic
data acquisition projects in Saudi
Arabia for Saudi Aramco worth over
$300 million. One, the S53 prospect 3D
transition zone (TZ) project, is expected
november/december 2009 ASIAN OIL & GAS

for LIBYA - Tripoli

GLOBAL EDUCATION AND TRAINING FOR ENERGY

8th - 9th December 2009 - PTQI

A two day event to address the procurement of education and training for the oil and gas industry in Libya
Bringing together the Libyan national companies with IOCs / NOCs and Education and
Training providers.The programme will look at a number of issues central to the
development of Libyas oil and gas workforce:

Who should attend?

- NOCs / IOCs

- The current education and training provision for the Libyan oil and gas industry
since the disbandment of Um Al-Jawabi and Medoil.

. Heads of Learning & Development

. Heads of Human Resources

- Education and training requirements in the oil and gas industry for the next 3 - 5 years;

. New Business Development Directors

including details of requirements for existing and future projects in exploration and

. Regional Country Managers

production.

- Libyan education and training providers

- An analysis of the Libyan oil and gas skills marketplace, including how it works and
- International education and training providers

whos who within it.

- How International companies and institutions can contribute to Libyas capability
development for its oil and gas industry and international good practice in education
and training provision.

- Qualifications awarding bodies

BOOK online your delegate pass at www.getenergyevent.com or contact us at: Tel:+44 (0)207 0965600
Working with:

Sponsored by:

Email: Gustavo@getenergyevent.com

www.getenergyevent.com

National Oil
Corporation Libya

22nd - 24th March 2010

Kuala Lumpur - Malaysia
6th Annual Global Education and Training Event for Upstream Oil & Gas
The programme will feature sessions on the education and training provision and requirements of
10 major exploration and production fields/projects and will look at the opportunities and challenges
faced in skills and workforce development.
Learning Arena Sponsors:

Who should attend?

- NOCs / IOCs
- Heads of Learning & Development
- Heads of Human Resources
- New Business Development Directors
- Regional Country Managers
- Education and training providers
- Qualification awarding bodies

For Sponsorship and Exhibiting Opportunitties visit our website or Contact us at:
Tel: +44 (0)207 0965600
Email: gustavo@getenergyevent.com
www.getenergyevent.com

AOG_M_4_Ad_Page21.indd
1 1
AOG_M_4_GE_Libya_HPH.indd

11/12/09 18:03:57
17:23:01

visualization

Abstract
Collaboration among diverse E&P team
members is now more important than ever
as China strives to fulfill its urgent energy
demands and keep pace with the countrys
huge economic growth. PetroChina worked
with Schlumberger to design and build a
state-of-the-art iCenter secure networked
collaborative environment that supports
the sophisticated visualization and decision
support needs for technical asset meetings.
The fully equipped, centralized space
was custom designed not only to enhance
multi-discipline team performance, but to
also effectively accomplish strategic goals
that require well-informed, quick decision
making to add reserves and increase
production. Enabling real-time data
sharing between office and remote rig sites
was another key element of this projects
ambitious goals.

Collaboration the key to

Jidong oilfield development
A major oilfield discovery in Chinas Bohai Bay is being developed using a collaborative
visualization environment. The state-of-the-art iCenter facility is discussed here by
PetroChinas Mu Lihua and Zang Feng and Schlumbergers Yuan Xiang Gao.

hina National Petroleum

Corporation (CNPC) and its
subsidiary, PetroChina, were
charged with the task of providing
solutions for Chinas fast-growing
demand for energy. To provide for
the countrys booming economy and
increasing consumption, PetroChinas
Jidong oilfield began accelerating its oil
and gas exploration and development
activities in an attempt to address this
challenge.
In 2007, CNPC discovered a large oil
field (Jidong) in the Nanpu block of Bohai
Bay on the northern China coast. Partly
offshore in the bays shallow water area,
the fields oil reserves are estimated at
1 billion tons, or about 7.35 billion bbl,
with the expectation that it will reach

About the authors

Mu Lihua is director of PetroChina Jidong
Exploration & Production Research Institute.
Zang Feng is chief of the science
management section, PetroChina Jidong
Oilfield E&P Research Institute.
Xiang Gao Yuan is a system engineer and
project manager at Schlumberger.

22

an annual production level of 10 million

tons of light crude by the year 2012. Thus,
Jidong oilfield is considered critical to
Chinas energy security strategy, making
the task of finding efficient and economic
means of exploiting the field a high
priority over the next several years.
This discovery provided the impetus
for PetroChina to build a collaborative
visualization environment (CVE) which
reservoir engineers and geoscientists
could use for holding their technical and
decision-making meetings throughout the
entire drilling life cycle from reservoir
evaluation to well planning, drilling
optimization and field development.
The CVE had to deliver high-resolution
graphics through a state-of-the-art
communications infrastructure that
would enable real-time sharing of detailed
data between office and rig sites within
a secure satellite-based, networked
environment.

Industry purpose
In the oil and gas industry, visualization
facilities typically focus on well planning
and reservoir modeling activities, serving
a dual purpose: they can be used for

collaborative technical meetings and for

decision making sessions.
The first is a meeting attended by
personnel from different disciplines who
gather together in the CVE to collaborate
on their ideas, bringing together
perspectives from multiple domains,
using technology tools as the platform
upon which to view integrated workflows
through the visualization of multiple
concurrent applications.
The second is typically a follow-up
session, often with management
involvement, with the sole intent of
reaching an agreed upon strategic
decision and action plan (for example,
deciding whether or not to drill a new
well in a particular reservoir at a
particular point in time).
Once the various reservoir models are
narrowed to the best possible scenarios
and projected onto high-resolution
screens, collaborative decision making
begins. Consensus can be quickly
achieved by having all the stakeholders
present in one centralized location with
access to the same data and the ability
to also communicate in real time to
field locations. E&P companies that
november/december 2009 ASIAN OIL & GAS

visualization

Completed iCenter
facility showing 3D
virtual reality software
projected onto a wide
screen.

have implemented iCenter facilities

experience improved decision-making
quality, based on a single, unified view of
the reservoir, and improved confidence
in their decisions as a result of better
collaboration.

Customized iCenter design

After Schlumberger Information
Solutions (SIS) thoroughly evaluated the
workflow requirements of PetroChinas
Jidong oilfield, implementation of a
fully equipped, fit-for-purpose iCenter
CVE was recommended, that would
exceed the basic capabilities of a typical
visualization facility. The project plan
was to build a centralized, flexible space
complete with state-of-the-art hardware,
Petrel seismic-to-simulation software,
GeoFrame reservoir characterization
software, GigaViz 3D interpretation and
visualization software and a real-time
infrastructure using the latest VSAT
satellite technology.
SIS experts provided consulting
services to help with specifying all
aspects of the iCenter environment
construction, including initial
assessment, system network design,
global satellite connectivity, hardware/
software installation, system integration
and projection technology. Other related
services were provided as well, such
as hardware maintenance, software
and hardware training, onsite software
support and consultation and interior
design.
SIS collaborated with PetroChina
Jidong oilfield to select various thirdparty vendors (including Sun, Intel,
HP, Cisco, GE, Hitachi and Panasonic),
ASIAN OIL & GAS november/december 2009

A collaborative
decision-making
session in progress
at the Jidong Oilfield
iCenter facility.
which supplied a wide array of essential
components for the iCenter environment
from high-resolution monitors to
wireless receivers, network systems,
servers and racks.
The equipment layout and network
design consisted of:
z hardware: a Barco 2-channel stereo
projection system, HP workstations, HP
high-compute clusters, storage,
an audiovisual system and a control
system; and
z workflow software: 8-CPU system
running GigaViz, GeoFrame and Petrel
2007 software with a real-time link to rigs.
The iCenter facility was opened at
Jidong oilfield in time to assist with and
improve the monitoring and placement of
a horizontal wellbore in the Nanpu block,
keeping it in the reservoir to maximize
well productivity. In addition to
improved well planning, risk assessment
capabilities were enhanced via iterative
geologic modeling and visualization,
supporting real-time monitoring and
modeling-while-drilling to optimize
drilling operations.
Multidiscipline E&P teams are now
able to hold collaborative technical

meetings, in which they can easily

monitor real-time drilling data, better
assess and mitigate risk and make
well-informed decisions. It is now
possible to obtain quick consensus and
readily communicate results as soon
as they are available through secure,
networked satellite links to the oilfield
technicians so they can take immediate
action.
The combination of having
integrated workflows and sophisticated
3D visualization techniques is also
helping PetroChina achieve higher
efficiency in its overall operations
and a higher degree of accuracy in its
predictions.
Jidong continues to leverage the
comprehensive iCenter capabilities as
geoscientists, geologists and reservoir
engineers pursue their exploration efforts
to find the additional large oil fields that
Bohai Bay is believed to contain. In the
long term, this collaborative visualization
environment will help PetroChina, and
its parent company CNPC, maximize
these efforts to successfully meet the
accelerating energy needs in China now
and for the future.

23

rig technology

Deepwater by design

Ensco spent the better part of 2004 contemplating how best to invest revenues it
anticipated landing on the books between 2006 and 2008. After considering
many options, the board voted to pursue the deepwater in a meaningful way.
Jennifer Pallanich reports on how the Dallas-based drillers plans are starting to pay off.

hen Ensco took delivery of

its second deepwater rig the
ENSCO 8500 semi the company
doubled its ultra-deepwater drilling
capabilities. The new semi joined
the ENSCO 7500, which entered the
companys fleet in 2000. In September
2008, the ENSCO 8500 started its journey
from the Keppel Fels yard in Singapore
to the US Gulf of Mexico. In June, the rig
began drilling activities for Anadarko
and Eni. The day before the 8500 went to
work, the drilling company took delivery
of the ENSCO 8501, the second deepwater
semi in a $3 billion, seven-rig series that
will see delivery of the final semi in late
2012. Ensco has about $1.4 billion more to
spend to complete the construction of all
seven rigs in the 8500 series.
When the company took delivery of the
8500, CEO Dan Rabun said: We anticipate
that approximately one-third of our
revenue will be derived from deepwater
operations by 2012, when all seven
8500 series rigs are expected to be fully
operational.
Ensco cut its deepwater teeth with
the ENSCO 7500, which is contracted to
Chevron through August 2010 offshore
Australia. Increasing queries for
deepwater rigs to work around the world
helped Ensco come up with the strategy
to meet that demand, says
Carey Lowe (pictured),
senior vice president.
Theres a growing
demand for rigs, he says.
Mexicos making a foray
into deepwater. Plus, he
says, the deepwater Gulf of Mexico with
its subsalt blocks, Brazil with its pre-salt
draw, and West Africa, which has some
of the same subsurface geology as Brazil
with the pre-salt area all factored in as
the company formed its deepwater plan.
Jay Swent, senior VP and CFO, says
that back in 2004, the company expected
some excess liquidity in the next few
years. We thought it was important to
understand what we might do with any
excess liquidity we might generate,
Swent says. The company focused on
good ways to invest in the business,
considering as many as 85 options over
24

ENSCO 8500, the first rig in the companys $3 billion ultra-deepwater expansion
program, is now drilling in the Gulf of Mexico.
the better part of a year, he adds. We got
to the end of that process and convinced
ourselves that the best thing to do for
our shareholders and customers was to
continue to invest in our core business . . .
the business that weve been investing in,
which is the offshore drilling business,
he says.
When you decide your world is limited
to being an offshore drilling company,
you have to focus on what you can do in
that space. The board decided to pursue
meaningful deepwater activity despite
the sectors cycles. A lot of things had
changed over the last 10, 15 years that
made that a very attractive market for
us, Swent adds.
With marching orders to focus on the
deepwater market, Enscos executives
formed a strategy that revolved around
providing clients with access to a total
of eight ultra-deepwater rigs including
the existing ENSCO 7500 for a day rate
that will keep shareholders happy and

the clients feeling like theyre getting fair

value for the asking price. Ensco tapped
Keppel Fels in Singapore to fabricate
seven identical semis to form the 8500
series; the yard has delivered two already.
The ENSCO 8500 began drilling for Eni
and Anadarko this summer. The 8501
has begun working for Nexen and Noble
Energy in the Gulf of Mexico. The 8502 is
slated for delivery in 1Q 2010 and is under
contract to Nexen. The 8503 is slated for
delivery in 4Q 2010 and is under contract
to Cobalt. The 8504 is slated for delivery
in 2H 2011, the 8505 in 1H 2012, and the
8506 in 2H 2012. Ensco is in discussions
with potential clients to contract the final
three rigs.
One strength of our strategy is to have
a universal design for our whole fleet,
Lowe says. Were building all of them the
same with effectively the same pieces of
drilling equipment on all the rigs. If its
red on one rig, its red on the next rig and
the next rig and the next.
november/december 2009 ASIAN OIL & GAS

rig technology

Lowe sees the similarity from semi to

semi as being helpful in many ways, not
least of which is streamlined training.
By having the same rig with the exact
same equipment, we can train people
on the 8500 for the 8501, 8502, etc, he
says. Additionally, he says, personnel
experienced on another of the series will
know where every valve is if they move
to work on a different rig in the series.
An added benefit comes from the need to
stock fewer spares as replacement parts.
Finally, Lowe says, building all seven
rigs in the same yard will pay off in time
savings as Keppel Fels applies lessons
it learned in building the early semis
to the rest of the order. Lowe says there
was a noticeable efficiency improvement
between the 8500 and 8501. One reason for
this, notes Lowe, is that at the beginning,
the shipyard built the deck structure
and all the areas above the main deck in
relatively small pieces and used cranes to
lift them. The approach was efficient, but
not as efficient as Keppels later decision
to use megablocks, which involves
lifting the deck structure components
in much larger pieces with heavy duty
floating cranes. Theyve really reduced
the number of lifts theyve had to make,
Lowe says.

A drillers rig
Following the classic marketing
scenarios, Ensco asked its customers
what they wanted to see in a newbuild
for drilling in ultra-deepwater. Totaling
it all up resulted in a $650 million rig,
Swent says. But what was the customer
willing to pay? You have a customer
who wants a $650 million asset and wants
to pay $250,000/day for it. On a rate of
return basis, that makes no sense for
shareholders, Swent says. It was time
to carry out a cost-benefit analysis on
every element on the rig, along with
interviewing customers about the various
features. Swent says the answer was
often: I want that if I dont have to pay for
it, but if I have to pay for it, I could live
without it.
One of the first features to wind up on
the cutting room floor was self-propulsion
for long moves. This reduced our head
count by 16 people, Lowe notes. While the
rig can make in-field moves up to 24 hours
on its own, larger moves require a tow
assist, he adds. The decision to opt out of
self-propulsion was based on the reality
that many rigs arrive in an area and work
there for quite a while, Lowe says.
Further, the semis are not designed
to handle harsh environments. Its
ASIAN OIL & GAS november/december 2009

addressing the heart of the market and

trying not to address the last 10%, Lowe
says.
While initial conversations with
prospective clients revealed they all
wanted the capability of drilling in
10,000ft water depth, few actually had
immediate need for working in those
depths, Swent notes. Eventually, the
compromise of an 8500ft
of water rating with the
ability to upgrade was
reached. Every single
[customer] said 8500ft
is more than adequate
for my needs right now,
Swent (pictured) says. The DP2 semis in
the series are designed to work in 8500ft
of water but can be upgraded to handle
10,000ft of water. The upgrade would
address plumbing, mechanical interfaces
and other elements that would enable
the semi to work in 10,000ft water depth,
Swent says.
The 8500 series has a rated drilling
depth of 35,000ft. It has an 8000 ton
variable deck load at operating draft
combined with an open deck layout to
make the design suitable for subsea
completion activities, according to the
company. Other features include offline
pipe handling capability, automatic
station keeping ability, and living

Main deck
Moonpool
Pontoons
Columns
Keel to main deck
Air gap
8500 series specs.

240ft x 255ft
30ft x 120ft
56ft x 24ft x 310ft
50ft x 45ft
97ft
34ft at 55ft drilling draft

quarters for 150. The semis are ABS

classed as Maltese Cross A1 column
stabilized drilling units. The 8500 design
increases capacities from the ENSCO
7500, features redundancy of critical
rig equipment, open deck modular
layouts for improved visibility and safer
operations for cargo handling and offline
work inclusive of subsea tree activity,
according to the company.
NOV is supplying the lions share of
the drilling equipment: a 201ft x 46ft x
40ft derrick that has a 2 million pound
static hook load; a 6000hp drawworks
with 2in drill line; a 1000 ton hydraulic
rotary, a 1000 ton top drive, drill string
compensator, travelling block and pipe
handling.
Hydril manufactures the BOPs and
Lewco the mud pumps.
For lifting, Ensco looked to Seatrax
for the deck cranes and chose Patriot for
the riser gantry crane. The active mud
pits can hold 4500 barrels. Reserve liquid
mud storage is at 11,750 barrels. The bulk
mud/cement capacity is 26,000ft3. The
helideck can accommodate a Sikorsky
S-61 or S-92.
In 2008 Ensco opened an office in
Houston to support the companys
deepwater focus. Late this year, the
company also revealed plans to transfer
its headquarters to London.
Enscos philosophy has been to
reinvest in its business, good times or
bad, Swent says. Most companies, when
times get tough, they pull in their horns
. . . shut everything down . . . at Ensco,
were countercyclical in our thinking
because we have a long-term view of our
industry.
He adds: Bad times are the best time to
be working on your rigs. He cites the
$1.3 billion, 10-year program Ensco
completed last year to upgrade its
existing jackup fleet, as well as the
companys purchase of 10 new jackups
from Keppel Fels. During that time
period, the company also introduced its
debut deepwater driller, the ENSCO 7500.
When the final semi of the series all to
bear a Liberian flag rolls off the line at
the Singapore yard, Ensco will operate
eight ultra-deepwater rigs.
Swent says some may consider Ensco a
latecomer to the ultra-deepwater game.
Sometimes being a little late is better
than being early. By starting with one
ultra-deepwater rig and then watching
the market develop, we were able to
learn some valuable lessons and build an
even more capable rig at a lower cost,
Swent says.

25

rig
g te
tech
technology
chn
ch
nolo
no
log
gy
y

Future vision floats

into the present

With
W
i its mat-supported jackup spin-off and four high-dollar,
ult
ultra-deepwater
drillships under construction, Pride International
m
is meeting
CEO Louis Raspinos goal of restructuring the
co
company
to step into the future. Jennifer Pallanich looks at
the drillers
dril
the
transformation in just four years.

n the
e la
las
last
ast fo
ffour
our ye
our
year
y
years,
ars says Ron Toufeeq,
Prides
ides new senior vice president
operations, asset management and
engineering, the company has made great
strides in becoming an offshore drilling
company with a primary emphasis on
deepwater. The strategy, Toufeeq says,
was to spin-off the mat-supported jackups
and move toward becoming a floater
drilling company with an emphasis on
the deepwater. To that end, Pride has
four ultra-deepwater sixth-generation
drillships nearing completion in the
Samsung Shipyard in South Korea.
We have moved from a company
that had almost any conceivable rig
type you could think
of . . . everything that
you have heard of, we
had it in our fleet, says
Toufeeq (pictured), who
joined Pride in 2004 as
engineering vice president.
On 1 April 2004, a snapshot of the
companys fleet showed: two drillships,
13 semis, 35 jackups of which 23 were matsupported jackups, five tender-assisted
rigs, three barge rigs, 22 platform rigs and
253 land rigs. A series of asset sales dots
the timeline between then and now.
The August spin-off of Seahawk with its
mat-supported jackups was intended to
allow Pride management to focus on the
deepwater business and allow Seahawks
management to base its strategy on
consolidation of low-spec Gulf of Mexico
jackups. With the spin-off complete,
Randall Stilley heads up Seahawk and its
fleet of 20 jackups; he was appointed CEO
of Prides mat-supported jackup business
last year.
Prides focus on deepwater reflects
the companys view that it is the most
resilient sector of the contract drilling
market. Additionally, the sector has
seen high utilization rates with average
contract lengths of four years.
Following the spin-off and asset sales
over the last handful of years, Prides

26

fleet picture has radically altered. As

of 1 September, the fleet included: two
drillships, 12 semis, seven independent
leg jackups, and three managed units as
well as the four aforementioned drillships
Pride is building under a $3 billion
construction program. When the final
new drillship leaves Samsung, Pride will
have a total of seven assets capable of
drilling in waters beyond 7500ft.
Prides revenue streams between
2004 and 2008 show how the companys
strategy is unfolding. In 2004, Pride took
in its largest chunk of revenue from its
jackups and land drilling businesses, both
bringing in 23% of the total revenues.
Deepwater brought in 18%, midwater
brought in 7% and other offshore brought
in 14%. The company brought in its
remaining 15% of 2004 revenue from
E&P services and the unspecified other
category. The 2008 revenue sources
paint a more focused picture. Deepwater
accounted for 38% of the revenues, with
jackups bringing in 36%. Midwater
brought in 18% with the remaining 8%
of revenues stemming from the other
category. By 2012, Pride anticipates that
78% of its revenues will come from the
deepwater sector with midwater bringing
in 16% and jackups the remaining 6%.
We have a strategy. We have a clear
focus. We are financially disciplined,
Toufeeq says. Outsiders are noticing the
companys overhauled approach. Earlier
this year, Standard & Poors upgraded
Prides rating to investment grade.
We havent been a typical speculator,
Toufeeq says of the companys order of
the four drillships. Pride waited until
it was sure several contracts would be
forthcoming before giving Samsung the
go-ahead to construct the rigs. Three
of the four have five- to seven-year
contracts, but Pride has not secured a
contract for the fourth rig, to be delivered
in late 2011.
Each of the new drillships will be
capable of handling single, dual or

triple activity, or any combination

thereof as specified by the client, says
Russ Krohn (pictured),
director of engineering.
Every rig is being offered
with a slightly different
configuration. It appears
the flexibility is looked
upon in good favor.
The flexibility leaves room for later
upgrades, Krohn notes, although
upgrades will require a shipyard stay.
A single activity rig will feature a dual
derrick, single hoisting and offline
stand building. A dual activity rig will
feature a dual derrick, dual hoisting and
offline stand building, and dual derrick
capabilities will include: drilling and
running top hole casings offline; building
of tubular, BHA and casing stands
performed simultaneously with main well
center activities; and landing christmas
trees and subsea manifolds offline. A
triple activity rig will feature a dual
derrick with dual hoisting and offline
subsea well construction activities using
an active heave compensated knuckle
boom crane.
All four of the new DP3 drillships are
750ft long with a breadth of 137.8ft, an
operating draft of 39.3ft and a drilling and
transit mode payload of 20,000 tons. They
are based on the Samsung Saipem 10,000
hull. All can accommodate 200 people to
meet the demands of the second drilling
center when its used that way. The
drillships are outfitted to work in water
depths of 10,000ft although they are
designed for a maximum water depth of
12,000ft with an upgrade and can drill to
40,000ft. The moonpool is 41ft by 84ft.
NOV supplied the bulk of the drilling
equipment. NOV Hydralift cranes are on
all four rigs. The Deep Ocean Ascension
and Deep Ocean Clarion both have
three Hydralift knuckle boom cranes
(93 tons at 62ft) and one Hydralift AHC
knuckle boom crane (110 tons at 10,000ft
water), while the Deep Ocean
> overleaf
november/december 2009 ASIAN OIL & GAS

rig technology

PHOTOS: MCNEE PRODUCTIONS

The first of Pride

Internationals
new sixthgeneration
drillships, Deep
Ocean Ascension,
taking shape in
Korea: its derrick
ready for loadout
from Samsungs
quayside facility
(left), being towed
to the drillship
(right) and ready
for placement
(below).
below).
w

ASIAN OIL & GAS november/december 2009

27

rig technology

Deep Ocean Ascension

Clarion

Mendocino

Molokai

Delivery

1Q 2010

3Q 2010

1Q 2011

4Q 2011

Spec

Single derrick with

three heavy duty
cranes and an
AHC crane

Dual derrick with Single derrick with Single derrick with

three heavy duty four heavy duty
four heavy duty
cranes and an
cranes
cranes
AHC crane

Contract

BP,
BP,
Petrobras,
2Q 2010-2Q 2015 4Q 2010-4Q 2015 2Q 2011-2Q 2016

Pride deepwater rig specs.

Mendocino and Deep Ocean Molokai
each have four Hydralift knuckle boom
cranes (93 tons at 62ft). Wrtsil provided
six 9000HP engines for the Deep Ocean
Ascension, while MAN B&W provided
six each 9000 HP engines for the other
three rigs. ABB provided the 8750kVA AC
generators for all the rigs. Rolls-Royce
provided six 5.5MW azimuth thrusters
per rig. The thrusters, Krohn says, give a
little more punch in stationkeeping.
The rigs have 12,000 barrels of mud
capacity, 2800bbls of base oil capacity and
18,800ft3 of bulk cement storage.
We have added everything we could
think of, Krohn says. It has all the
features we believe are essential for
deepwater drilling. One of the features
he likes to mention is an independent
brine system to prevent contamination
of the costly fluids. The mud and fluids

DSS series keeps

Keppel busy
Singapores Keppel Fels
delivered the Maersk Discoverer,
the second of three DSS 21
deepwater rigs, to Maersk Drilling
in August. Keppels Deepwater
Technology Group and Marine
Structure Consultants jointly
developed and own the DSS
21 design, which
maximizes uptime while
reducing emissions and
discharges. The series
features a dynamic
positioning system, with
the ability to attach to a
prelaid mooring system.
Optimized for field
development work,
the new generation
DSS 21 series is derived
from the experiences
gained from our
highly successful DSS
20 Maersk Explorer
semisubmersible built in

28

up to 6000bbls in the active system can

be configured into 6000bbls of mud or
6000bbls of brine or split into a double
isolated dual system consisting of 3000
barrels of mud and 3000 barrels of brine.
Another goal was to speed up the riser
running process. To this end, Krohn
says, the company signed on to use the
Vetco MR-6HSE automated latch and
lock system. Weve automated the riser
running process. Its not certain yet, he
adds, how much time this new system
will save, but the company is expecting
to record the improvements during
system integration testing. Were also
serial number 1 on this from Vetco,
he says. Taking serial number 1 has
its advantages, but we also have to do
our due diligence to ensure its going to
operate the way its been advertised to
operate.
operate.

2003, says Maersk Drilling CEO

Claus Hemmingsen.
The first DSS 21 rig, Maersk
Developer (pictured below),
delivered in June 2008, is slated
to begin a four-year contract
with Statoil in the US Gulf of
Mexico. Woodside Energy has
signed a three-year deal for
the Maersk Discoverer to work
offshore Australia. The third rig

While the fifth generation drillships

were primarily meant for discovery
drilling, Krohn says, the sixth generation
the category to which the four new
drillships belong is meant for field
development and subsea construction.
When the era of the seventh generation
drillship dawns, Krohn says, improved
performance and efficiency will be
signs. A seventh generation rig will have
better drilling performance and lower
costs, with increased capacities in just
about every aspect while not necessarily
becoming any larger than existing
drillships, he says.
While the trend of moving into the
deepwater waters led from the fifth
generation to the sixth generation,
Krohn says, the seventh generation wont
necessarily need to work in even deeper
waters unless an operator is exploring
a deep trench. So we take the 10,000ft
(capacity) and make it more efficient, he
says.
As Pride keeps an eye on its future,
Toufeeq is already thinking about what
the companys clients will be looking for
in drilling capability in the upcoming
years. Subsea construction work, batch
drilling and completion activities will
be in demand, he says, but the heavy,
heavy focus will be in production drilling,
development drilling.

of the series is scheduled for

delivery in 2Q 2010.
Meanwhile, Keppel Fels says
it expects to deliver Gold Star
(pictured below), the worlds
first DSS 38 semi, to Brazilian
operator Queiroz Galvo leo
e Gs (QGOG) on time and
within budget by year end.
Also jointly developed and
owned by Keppels Deepwater

Technology Group and Marine

Structure Consultants, the
compact, cost-effective DSS 38
rig design has the operational
requirements of deepwaters
Golden Triangle Brazil, Africa
and the Gulf of Mexico firmly
in its sights. Keppel Fels is building
two of them for QGOG.
This latest addition to the
DSS series is rated to drill to
depths of 30,000ft
below mudline in over
9000ft water depth.
It has an operational
displacement of
over 38,000t and can
accommodate 130. The
rig also features both
vertical and horizontal
riser storage and is
configured with eight
3000kW azimuth thrusters
for stationkeeping.
QGOGs second DSS
38 unit, Alpha Star, is
scheduled for delivery in
mid-2011.

november/december 2009 ASIAN OIL & GAS

SPE Intelligent Energy

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Conference & Exhibition 2325 March
Jaarbeurs Centre, Utrecht, The Netherlands

HIGHLIGHTS
Record number of submissions
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change management in a collaborative conference
and exhibition environment.

Confirmed Plenary Speakers for 2010

Andy G Inglis, Chief Executive Officer, BP Exploration & Production
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Pieter Kapteijn (Moderator), Director Technology and Innovation Maersk Oil and Gas AS
Timothy Probert, President, D&E and Corporate Development, Halliburton
Ashok Belani, Chief Technology Officer, Schlumberger
Margareth vrum, Executive Vice President, Technology and New Energy, StatoilHydro
Samer AlAshgar, Manager EXPEC Advanced, Research Center Saudi Aramco
Melody Meyer, President, Chevron Energy Technology Company
John Brantley, General Manager for Chemicals and Petroleum, IBM
Denis Lemarchal, Director of Block17, Total
Bernard Looney, Managing Director, BP North Sea
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AOG_M_4_Ocean_FP.indd 1

11/12/09 17:48:44

rig technology

Deepdish to order
Japan Drilling Companys semisubmersible drilling rig Hakuryu-5
was recently upgraded with Exmar Offshores Deepdish
pontoon sponson, an innovative combination of pontoon
sponsons and integrated cross bracing designed to increase
the capabilities and operating life of ageing rigs. Exmar s Joel
Wetmore and Ed Nagel discuss the design process that led to
the successful application of the Deepdish concept.

xisting mobile offshore drilling units

(MODUs) are under continuous
pressure to maintain their contract
rates and compete with new units
entering the market. This often requires
a rig to withstand greater drilling loads
and operate in deeper waters than those
anticipated by its original designer.
Conversely, a drilling contractor is
usually reluctant to remove a revenue
earning asset from service for the
amount of time typically required for a
comprehensive upgrade.
Operators looking to improve their
rigs capabilities and performance are
typically required to add displacement
and improve stability via the attachment
of pontoon sponsons, column blisters,
and/or additional stability columns
to the existing hull. While it may be
relatively easy to define the basic
objectives and work scope of such an
upgrade, integration problems may not be
discovered until after the rig has arrived
at the shipyard, causing schedules to slip
and costs to escalate.
Mitsubishi Heavy Industries (MHI)
built the Japan Drilling Company (JDC)
Panama/UMW Drilling semisubmersible
Naga 1 (formerly Hakuryu-3) in 1974. This
rig is limited to a maximum design water
depth of 1640ft at a time when there is
increasing demand for MODUs capable

About the authors

Joel Wetmore is a naval
architect with over 10 years
experience in the shipping and
offshore industries. He is a project
manager with Exmar Offshore,
having joined the company in 2005.
Ed Nagel is VP of Exmar
Offshore and has over 30 years
of experience in the design,
fabrication and operation of
offshore platforms. He has been
with the company since it was founded in
1997.

30

of working in water depths greater than

3000ft. JDC has maintained the rig well
throughout its lifetime. It was therefore
possible for JDC to consider favorably
the cost-benefit relationship of a life
enhancement upgrade and the technical
feasibility of a 20-year service life
extension.
JDC, however, have been required by
their classification society to maintain
an annual inspection programme due to
fatigue issues with the existing brace end
connections. This obligation was difficult
to accommodate and so, when JDC began
to evaluate options for a life enhancement
and capability upgrade, they desired an
engineering solution that would:
z eventually enable the rig to operate in a
water depth of 3500ft;
z increase variable deck load (VDL) by
over 40%;
z ensure that the upgraded rig would
have a fatigue life exceeding 20 years; and
z minimize the required shipyard time.
Inspired by the cross pontoon and
diamond brace arrangement possessed by
some fifth generation semisubmersibles,
JDC and their technical consultants
developed an upgrade configuration
that included cross pontoons, outboard
pontoon side sponsons, and column
sponsons. Also included was the removal
of the existing horizontal and inboard
vertical braces to eliminate fatigue-prone
areas. In 2003, JDC requested Exmar
Offshore to evaluate their configuration
and propose alternatives.
Although readers may be familiar
with a general association between
sponsons and upgraded capability,
each of the before mentioned sponson
types are designed to improve the
performance of a specific operating mode
and its corresponding draft. To briefly
summarize:
Cross pontoons: A sea state will subject
a semisubmersibles braces to cyclic
pry-squeeze, pitch connecting, and
racking loads. The Naga 1s braces and

end connections are graceful in their

complexity but are, unfortunately,
particularly sensitive to fatigue. Cross
pontoons are designed to connect the two
existing pontoons and to be stiff enough
to cause a load transfer from the existing
braces to the cross pontoons.
Pontoon sponsons: Like many other
semisubmersibles, the Naga 1
has a reserve of stability when at
the transit draft and its transit draft
payload is limited by displacement.
Pontoon sponsons, together with the
cross pontoons, increase transit draft
displacement so that the greater VDL can
be carried with the minimum possible
increase in hydrodynamic resistance. The
latter consideration is often of particular
concern to operators who anticipate wet
tow voyages.
Column sponsons: The operating and
survival drafts of the Naga 1 are stability
limited. Column sponsons are attached to
columns to increase a drafts metacentric
height with the smallest possible increase
in waterplane area. The optimization of
column sponson geometry is therefore
an exercise in providing the required
amount of stability without imposing an
adverse effect on motions response.
Pencil columns: Pencil columns serve
in a manner similar to that of column
sponsons and are, in some cases, easier to
integrate with the existing hull structure.
It is, however, not always possible to
design a pencil column that contributes
enough additional waterplane area to the
stability of the transition draft (the draft
at which the pontoons become immersed),
thus resulting in an instantaneous
reduction in metacentric height.
Exmar developed preliminary upgrade
configurations that consisted of various
combinations of all four sponson types
described above. Exmar, together with
JDC, evaluated all configurations with
respect to cost, constructability, and
performance. The upgrade configuration
eventually recommended by Exmar and
selected by JDC was a solution that used
pontoon bottom sponsons combined with
integral and co-planar cross pontoons and
diamond braces. Dubbed the Deepdish
by Exmar, the 2.5m-deep assemblage
was designed to be pre-fabricated in its
entirety on a drydock floor such that
the existing rig could be floated over,
aligned, and lowered onto the Deepdish
for integration.
The Deepdish pontoon sponson,
together with column sponsons, offers
an elegant solution to all of JDCs
requirements and provides ancillary
november/december 2009 ASIAN OIL & GAS

rig technology

A semi model showing a Deepdish pontoon sponson in yellow and the

column sponsons in orange; and (inset) view from below.

ASIAN OIL & GAS november/december 2009

IMAGES GENERATED BY EXMAR

benefits that include improved motions

behavior (particularly with respect to
heave, roll and pitch). Pre-fabrication
reduces the time that the rig is required
to be in the shipyard and the associated
loss of revenue. The 7x2.5m transverse
cross pontoons and 3.5x2.5m diagonal
braces are rigid enough to absorb most
of the loads previously supported by
the existing braces. This load transfer
also results in a large increase in the
fatigue lives of the existing brace end
connections, and eliminates the need to
remove or reinforce the existing braces.
This proved to be fortuitous as Exmars
preliminary global strength assessment
revealed that some other form of upper
hull support would be required in the
event that the existing horizontal and
inboard vertical braces were removed.
Replacing the existing braces with some
other form of support would be expensive
work challenged by limited crane access
to the affected areas.
In June 2005 the Naga 1 secured
a long term contract with its
original capabilities, thus delaying
the implementation of the 3500ft
upgrade. JDC, however, had similar
life enhancement objectives for its
Hakuryu-5, a Mitsubishi MD 501 design
that MHI delivered in 1977. JDC therefore

contracted with Exmar to prepare a 3500ft

upgrade basic design package for the
Hakuryu-5 that was based on the Naga 1
package.
In preparing the basic design package
for the Hakuryu-5 upgrade, Exmar
was responsible for sponson sizing,
performing the various engineering
analyses required to obtain class
approval of the concept, and producing
class-approved scantling and piping
schematic drawings for JDCs shipyard
tender package.
Due to concerns over the fatigue
life of brace end connections, Exmar
performed a detailed fatigue analysis
of both the existing and upgraded hull

configurations. Global finite element

models (FEMs) were subjected to spectral
fatigue analyses to identify critical areas.
Fine mesh FEMs of these areas were
then studied in greater detail. JDC had
maintained detailed records of the rigs
operational history and so Exmar was
able to accurately quantify the fatigue life
consumed by the existing structure prior
to the upgrade, and to demonstrate that
the upgraded rig would have an expected
post-upgrade fatigue life of over 20 years.
The global FEM was also used to
establish maximum misalignment
tolerances between the Deepdish and
existing structure. Although JDC
provided Exmar with as-built drawings
31

PHOTOS COURTESY JDC

rig technology

ABOVE: The Hakuryu-5 and Deepdish in the IHI Aichi Works

drydock.
RIGHT: The Hakuryu-5 after the Deepdish conversion.
Operating mode

Displacement

VDL

(% change over existing)

(% change over existing)

Lightship

+23%

n/a

Transit

+52%

61%

Survival

+49%

+92%

Operating

+48%

+64%

Before/after comparison for the Hakuryu-5 Deepdish conversion.

of the Hakuryu-5, it was expected that
the existing hull geometry would deviate
to some degree from the theoretical
arrangement. It was also possible that the
mating process might have introduced
some amount of misalignment. Element
stress data from the spectral fatigue
analysis was therefore combined with
stress concentration factors to determine
the fatigue lives associated with a range
of different misalignment values. Exmar
then modified some of the interface
details to reduce fatigue sensitivity and
worked with ABS to establish maximum
misalignment tolerance of 50 mm for
major structure.
The piping system modifications
required by the Deepdish were minimal.
The majority of the pontoon ballast
tanks were extended into the Deepdish
pontoon and, once it was determined
that the existing ballast pumps could
accommodate the additional 2.5m of
suction head, the existing ballast lines
were simply extended down into the
Deepdish. The remaining Deepdish
compartments were designated as
void spaces. JDC elected to equip these
spaces with a leak detection system and
portable pumps and so, with no bilge
system modifications, the remaining
piping systems were limited to vent and
sounding lines.
JDC has decided to carry out the
32

life enhancement of the Hakuryu-5 in

multiple phases. They contracted to have
IHI Marine United perform what has
been called the Deepdish Conversion,
a project that involved the detailed
design, fabrication, and integration work
required to add the Deepdish and column
sponsons to the Hakuryu-5. It should
be noted that, as no modifications were
made to the existing mooring, drilling
or motion compensation systems, the
Deepdish Conversion has only provided
an increase in VDL. Exmar worked with
IHI Marine United and ABS to refine
construction details and to modify the
design as required to suit the shipyards
construction preferences.
The Hakuryu-5 initially entered the IHI
Aichi Works drydock in October 2008 for
hull cleaning and a detailed dimensional
survey of the hull. Floatover and mating
took place in November and was followed
by the welding programme required
for Deepdish and column sponsons
integration. IHI Marine United delivered
the upgraded Hakuryu-5 on schedule in
February 2009, having required only half
of the time estimated for an equivalent
conventional upgrade.
Exmar has performed extensive
engineering work to optimize the
Deepdish configuration, demonstrate that
it will result in improved global strength,
fatigue life, and payload carrying

ability, and to obtain classification

society approval of the concept. The cost,
schedule and performance benefits of the
Deepdish have been proven in practice
by its application to the Hakuryu-5. The
project was an excellent example of how
good cooperation between the owner,
designer and shipyard has resulted in
the successful execution of an innovative
concept.
It is expected that the Deepdish
pontoon sponson can be successfully
applied to other column stabilized
drilling, production and accommodation
units.
Exmar has also built upon the work
of the Hakuryu-5 3500ft upgrade design
with a basic design package for 5000ft
operating water depth upgrade.
This project represents a greater
level of complexity as it will require
the replacement of much of the existing
drilling, mooring, and power
generation/distribution systems.
Additional sponsons will be required
to carry further increases in payload,
while major modifications to the upper
hull structure will also be required to
accommodate improved BOP, subsea tree,
and riser handling systems. It is hoped
that, at some time in the future, JDC will
secure a contract for the Hakuryu-5 that
justifies the investment of time and cost
of the 5000ft upgrade.

november/december 2009 ASIAN OIL & GAS

AOG_M_4_KTL_HPH.indd
AOG_M_4_Ad_Page33.indd 1 1

11/12/09
11/12/09 17:43:32
18:07:29

pipeline technology

Laser sensors keep pace

with higher weld speeds
Laser vision sensors capable of reconciling todays higher pipe welding speeds
with enhanced weld quality requirements should be on the market early next year
courtesy of leading pipeline welding specialist CRC-Evans. Here, the companys
engineering vice president Shankar Rajagopalan discusses the thinking behind
these new smart sensors and their potential for global deployment.

ontinually seeking to increase

welding speeds while
simultaneously improving weld
quality assurance, CRC-Evans developed
narrow gap welding technology that
can deposit fill and cap passes at travel
speeds in excess of 1m/min. However,
such high welding speeds threaten the
limits of conventional through-arc seam
tracking. The company also identified
that the overall pipe joining process could
be dramatically improved if additional
information about weld preps and joints
could be obtained before, during and after
welding.
Research using an off-the-shelf laser
tracking system showed that joint
tracking at speeds in excess of 2m/min
was possible. Furthermore, such a sensor
system could provide information: before
welding, such as bevel profiles; during
welding, such as joint parameters, hilo
(mismatch), width, root gap, etc; and after
welding such as weld bead profiles. All
of this information, when combined with
advanced control and reporting systems,
is directly relevant to improving weld
speed and quality.
Although off the shelf laser tracking
was technically capable of providing
seam tracking at the required speed,
it had serious limitations regarding
unit cost, robustness, ease of use and
suitability for the typical pipeline
right-of-way conditions. These made it
unsuitable for general use with
CRC-Evans large external welder fleet.

About the author

Shankar Rajagopalan is VP
new product development at
CRC-Evans Automatic Welding
in Houston, where his work
experience includes 20 years of
embedded system and automation control
development. He holds a MSc in electronics
from Indias Bombay University and a MSc in
physics from Creighton University in the US.

34

Figure 1: Smart
Laser Sensor
mounted on
the CRC-Evans
Bug.

The system software is flexible and user

friendly.
Since temperature and environment
conditions are not conducive for an off the
shelf vision system, a new generation of
laser vision sensors was needed to overcome
the problems noted above and facilitate
widespread use in the pipeline industry.

Smart thinking
In partnership with Meta Vision Systems,
CRC-Evans came up with CiRCVision, a
robust new vision system well adapted to
the needs of the general pipeline industry
while still being very affordable. This has
been achieved by exploiting the latest
developments in electronics to put the
image processing electronics inside the
laser sensor head itself, thereby creating
a Smart Laser Sensor.
The design consists of a robust CMOS
Megapixel camera with very large scale
integration devices, including a large
FPGA and a powerful DSP. The vision
system has a field of view of 50mm,
horizontal pixel resolution of 0.05mm and
vertical pixel resolution of 0.07mm. The
self-contained package has no moving
parts and can acquire and process
30 full 1280x1024 frames per second.
The sensor itself is fully digital and
designed for easy integration within
digital control and communication
systems, with both high-speed Ethernet
and CAN bus interfaces. These external
links provide the digital-to-digital
interface to the CRC welding system

making for ultra-reliable, noise-free data

transmission and enabling a fully digital
pipeline welding system (Figure 1).

Applications
Weld joint tracking. The nature of
narrow gap welding in pipelines makes
it impossible to have precise alignment
around the joint circumference due
to variations in joint fit up as a result
of tolerances in pipe diameter and
ovality. This leads to local changes in
joint geometry and position. The Smart
Laser Sensor measures these changes
in real time during welding. Tracking
data is sent via high speed digital
communication to the precise motion
control system built on to the CRC Evans
external welding system. This closed
loop control ensures that the welding
electrodes are always where they should
be to achieve good results.
The exact nature of the tracking
algorithms varies with the type of weld
pass. For example, during root welds,
the laser vision system provides for
a very accurate tracking without the
need to oscillate that is a requirement of
through-the-arc tracking. This results
in more accurate bead placement and
better penetration. Experimental studies
have shown that the high resolution of
the laser sensor makes it possible to use
laser tracking for all stages of the welding
process, including cap pass.
november/december 2009 ASIAN OIL & GAS

pipeline technology

Figure 3: Laser sensor for internal root inspection, large

pipes.

ASIAN OIL & GAS november/december 2009

against significant downtime. Laser

vision systems can prevent suspect root
passes from reaching the NDE station and
limit downtime risk.
The smart vision system can inspect
the internal profile of the root pass in
the first station and determine if an
acceptable root profile has been achieved
immediately. In cases where the root is
not acceptable, repair or replacing the
weld at this point will be much more time
efficient.
Inspecting the shape of the root weld by
laser vision also provides a supplemental
way of inspecting the root pass on
critical fatigue applications such as
risers. Measuring weld shape parameters
such as mismatch, bead concavity, and
the re-entrant angle provides a level of
confidence in the completed product
previously unattained through AUT
inspection.
User interface. The system has a flexible
user interface for all the above mentioned
applications. All the measurements can
be displayed in metric, English or in pixel
units.

Schedule
The smart sensor is now in the final
production prototype stage with field
testing scheduled for calendar fourth
quarter 2009. The official launch of
the system took place in September at
the prestigious Essen welding, held in
Germany every four years.
The Smart Laser Sensor will be
available for general use starting January
2010.

Good root
bead.

Since the Smart Laser Sensor is

basically an instrument for measuring
3D profiles, it can also be used to
inspect bevel geometry immediately
after the beveling operation (Figure 2).
This immediately identifies any bevel
problems while the beveling machine
is still in position, enabling rapid
rectification of any problems.
All the features of a bevel design (see
diagram below left), such as root face
(land) thickness, bevel angle, offset, and
root angle, can be obtained and compared
against the desired template. In this way,
the system detects and eliminates any
issues right at the point of beveling and
hence provides a good foundation for the
welding process.
Root bead inspection. It is well known
that the root weld is the most critical
phase of the entire welding operation.
Currently root beads can be deposited in
one of three ways: by using the
CRC-Evans external welding systems,
which makes use of a copper backup
clamp; by using the Cold Metal Transfer
process, or by using the CRC-Evans high
speed internal welder.
Detection and correction of root
bead defects in the first station can
significantly save time and money (to
the end user) by not waiting till the
(UT) inspection is done. Performing
the inspection after the entire weld
is complete can be very costly should
there be root bead defects. In an offshore
environment for large diameter pipes
(Figure 3), once the root is deposited a
scan with the vision system gives an
accurate evaluation of the root profile and
provides the opportunity to make repairs
in the root station.
The same applies to a spool base or lay
barge for small diameter pipes where
a human inspector cannot access the
weld joint area (Figure 4). On projects
where zero tolerance for root defects are
allowed, preventing potential cut outs
from reaching the NDE station can guard

Figure 4: Laser sensor mounted

for root inspection, small pipes.

Undercut.

Adaptive welding. Adaptive welding

refers to the capability of the welding
system to change key welding parameters
in real time in response to measured
changes in the weld joint profile. The
variation in fit up mentioned above
results in volumetric changes in the weld
joint around the circumference of the
pipe. Since the laser sensor works in 3D,
effectively taking slices through the weld
joint, it is able to compute accurately the
remaining weld volume.
This information is passed to the
CRC-Evans external welding controller
which then makes the necessary
adjustments to the travel speed, wire feed
speed and oscillation width to achieve a
constant percentage fill around the pipe
circumference. This function eliminates
the need for the operator to make real
time adjustments. Adaptive fill also
has the potential to eliminate the need
for a strip pass in certain situations
where the wall thickness does not fit the
conventional ligament thickness for a
given weld pass.
The combination of accurate seam
tracking appropriate for the pass being
welded and adaptive fill based on actual
measured joint volumes makes it possible
to achieve consistent high quality welds
at higher speeds than would otherwise be
possible.
Bevel inspection QA/QC. One of the
keys to efficient pipeline welding is for
the line crew to be able to bevel pipe ends
consistently, accurately and quickly
even in the face of variations in pipe end
diameter and ovality.

Porosity.

Figure 2: Laser sensor mounted

for bevel inspection.

The three images above show raw

laser sensor data representing two
fault conditions with a good weld for
comparison.
35

enhanced recovery

The flux pattern map shows a

connection between an injectorproducer pair. Well connections
derived from the streamlines can
be more effectively visualized
using the flux pattern map and
labeled using the percentage of
injected volume going to the
off-set producer.

The road to recovery

As operators aim to recover more and more hydrocarbons

from each reservoir, oilfield service companies are lining up
offerings to help them do so. Having surveyed the field during
Octobers SPE Annual Technical Conference & Exhibition
(ATCE) in New Orleans, Jennifer Pallanich looks at some of the
service companies latest production optimization offerings.

uring a lunch gathering at the

ATCE, Tony Martin, business
development manager for
international stimulation at BJ Services,
stressed the importance of planning and
understanding the reservoir when it
comes to frac jobs.
Just as we can get miracles from the
fracture process, we can also get poor
results, Martin said. The reservoir
drives the fracture.
Many fracturing techniques are not
mutually exclusive, he said. Refracturing
is a technique that has had some success,
due to updated technology, Martin said,
noting the method allows access into new
rocks. Refracturing really works. Weve
got better fluids, better proppants, and a
better understanding, he said. And minifracturing a dying art in the US offers
lots of information about the reservoir,
although he noted the approach made

36

more sense in some locations, such as at

the beginning of a large campaign.
The work costs money, he said, but it
doesnt always have to cost as much as
it does. Often an operator will request a
quote for a wide range of activity, perhaps
10 to 100 wells. If the operator could
narrow that down to 20 to 60 or, better
yet, 30 to 40 wells, the service company
could offer a cost more in line with the
work that will actually be
carried out. Anything you
can do to reduce service
company risk is going to
result in you paying less
money, Martin (pictured)
declared.
Shortly after Baker Hughes announced
it intended to purchase BJ Services,
the pair launched IntelliFrac, which
draws on BJs fracturing and production
enhancement lines and Baker Hughes

microseismic services. Meant to

provide real-time fracturing control,
the offering allows operators to monitor
fracture dimensions during stimulation
treatments.
Being able to look downhole and
change the fracturing process on-the-fly is
especially critical in areas with complex
fracturing, such as shales, where BJ
has successfully designed and pumped
more than 17,000 oil and gas shale frac
stages around the world, noted Jeff
Hibbeler, BJs technology and logistics
vice president. And James McDougall,
Baker Hughes vice president, Baker Atlas
marketing, said optimal stimulation
treatments are critical because
fracturing services can be a significant
percentage of total well completion costs.
The IntelliFrac service monitors
and measures the microseismic events
that indicate key fracture properties,
including azimuth, height, length, volume
and complexity of the induced fractures.
By understanding hydraulic fracture
propagation, operators can make better
on-location treatment management
decisions, and in turn reduce well
completion and stimulation risk and
uncertainty, the companies say. Once the
microseismic data set has been gathered
and processed, operators can use the
data to optimize field development plans,
and potentially reduce the number of
wellbores required to develop the field.
Baker Hughes and BJ Services had
been collaborating on the IntelliFrac
service for several months prior to the
announcement of the purchase.
Halliburton highlighted a few of its
fracturing technologies, including a new
extreme-temperature synthetic fracturing
fluid. According to Halliburton, this
system performs at temperatures
exceeding 450F while providing the
proppant transport capabilities critical
for the successful fracturing of deeper,
hotter formations. In addition, unlike
previous systems the new fluid does not
require a formation cool-down process,
which often contributes to poor initial
well performance, Halliburton added.
Both Weatherford and Baker Hughes
took advantage of ATCE to launch
artificial lift system services.
A major advantage claimed for
Weatherfords WellSavvy is that it
can provide automated intelligent
gas lift analysis in seconds. After
receiving the real-time data, the system
provides production optimization
recommendations based on multiple
analysis methods that use a knowledge
november/december 2009 ASIAN OIL & GAS

enhanced recovery

base derived from experienced artificial

lift engineers from operators and
service companies. According to Roman
Molotkov, WellSavvy product manager,
the system manages by exception,
pointing out items that need attention. It
then pinpoints the problem, recommends
a fix, and indicates uplift and cash flow
potential based on that recommendation.
Molotkov refers to the software
as a digital engineer, noting that it
operates autonomously without human
intervention. In seconds, it analyzes
thousands of wells, Molotkov said, noting
human engineers can only analyze a few
wells a day.
Jim Schlebach, global marketing
coordinator at Weatherford, said
WellSavvy learns as it works. The
software uses associated memory. It
applies the actual performance changes
of the wells to the calculated results to
calibrate or refine the calculations so
they are specific to the field conditions.
The system now is geared toward gas
lift and the service company intends to
roll out enhanced versions later that
address other forms of lift. In an onshore
case history, WellSavvy analyzed 85 gas
lifted wells and predicted a hole in tubing
within 5ft, Schlebach said. The system is
applicable offshore.
Baker Hughes said its Centrilift
Vision real-time artificial lift system
offers monitoring and optimization
service, collecting data from artificial
lift operations and then providing clients
with critical information necessary to
optimize production and minimize field
downtime.
Helping to differentiate Centrilift
Vision from other industry offerings, says
Baker, are fuzzy logic alarming, daily
exception reporting, and advanced key
performance indicator tracking. These
features allow operators to highlight
and diagnose artificial lift issues and
opportunities in real time, maximizing
the life of the artificial lift system.
John Kenner, president of the
Centrilift product line, called Vision a
breakthrough in artificial lift monitoring
and optimization because we have closed
the gap between the time a productionimpacting event occurs and when it is
recognized, diagnosed, and repaired in
the field. This capability can dramatically
reduce non-productive time.
In another move, Baker Hughes
Nederland Holdings has acquired a
40% equity in JOA Oil & Gas, which
gives Baker access to JOAs JewelSuite
integrated reservoir modeling software.
ASIAN OIL & GAS november/december 2009

Weatherfords WellSavvy acts

as a digital engineer and
produces diagnosis, results and
recommendations on artificial
gas lift operations.

JewelSuite, which uses 3D gridding

technology to build accurate reservoir
models, relies on orthogonal, vertically
stacked cells to compose the Jewel grid.
BHI will also fund a portion of the
development required to incorporate
some of its in-house engineering
applications around the wellbore and
its leading geomechanical technologies
earlier acquired through GeoMechanics
International.
Through our funded development
agreement, BHI will help us to realize
our vision of providing truly integrated
and always up-to-date reservoir
models, at scales from detailed wellbore
neighborhoods to full-field geomechanical
models, all in the same framework, said
JOA chief executive Gerard de Jager.

Simulation software
Commercial release for Intersect the
next-generation reservoir simulation
software from Schlumberger and Chevron
Energy Technology Company (CETC),
was announced in November.
Capable of simulating large, complex
reservoirs and highly heterogeneous
systems, the technology results from a
joint development effort launched by
the two companies in 2000 and remains
subject to ongoing development.
David Gorsuch, Intersect project
director, said the software runs large

models in shorter times and offers

excellent parallel scalability. We have
completed what will be a single platform
for black oil and compositional fluids, he
said.
It will also perform conventional well
modeling.
Intersect quickly runs large and
heterogeneous models simulating
tens of millions of cells. It also
accurately models complex geology
and wells, honoring detailed reservoir
characterizations with minimal or no
upscaling, according to Schlumberger. It
is designed to handle thousands of wells
in mature fields, as well as simulating all
fluid types and recovery processes in a
single simulator.
Project Intersect does not stop with
this initial release, declared Jeff Spath,
president of Schlumbergers reservoir
management group. The next iteration,
planned for 2011, will add in the ability
to handle thermal modeling and multisegment wells. That will be considered a
general release, Gorsuch noted, whereas
this months roll-out is to a handful of
customers.
CETC vice president Ganesh Thakur
said the company is using Intersect
on some of its major projects. It is not
replacing Schlumbergers Eclipse
software which, like Intersect, employs
Petrel Reservoir Engineering as a front
37

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enhanced recovery

end to simulation, integrating the static

and dynamic modeling process.
Both solve different types of problems,
but they will be marketed side by side by
Schlumberger Information Solutions,
Spath explained.

Losing the plot

When it comes to optimizing production,
it may make sense to start
with the data.
There are a lot
of problems when it
comes to data, declared
Marco Thiele (pictured),
co-founder and president
of Streamsim Technologies, during an
ATCE session on reservoir management
challenges. Data problems cited by Thiele
included expense, errors and lack of
standardization.
We spend an inordinate amount of
time searching, integrating, cleaning and
reformatting acquired data.There is a
lack of standards that makes feeding data
to models a real headache.
Data standardization, Thiele said,
would ultimately provide a clearer
picture of the data landscape and
significantly reduce the time needed
to make operating decisions based on
models and closed-loop management
approaches. His companys area of
interest in reservoir surveillance lies
in streamline-based flow simulation.
Streamlines are wonderful pictures
for dynamic flood surveillance, he said,
adding it can be more interesting to
condense the streamlines to capture
well-pair connectivity. Doing so can
show how strongly they are connected
and how preferential flow paths affect

sweep efficiency between well pairs. We

do surveillance to get the state of the
system, Thiele noted, adding the caveat
that surveillance is strictly a diagnostic
tool and has no forecasting ability.
Streamline-based surveillance
leads to dynamic patterns, centered on
injectors that are connected to off-set
producers, he explained, describing
it as a step change compared to the
traditional assumption of fixed,
geometric patterns. Streamline allows
quick determination of well allocation
factors needed for powerful diagnostic
plots such as pattern conformance and
injection efficiency plots. Every field
that is relying on injection to improve
recovery should have a surveillance
model. It is computationally light, offers
quick insight on the current state of the
reservoir, and requires minimal model
building but is rooted in historical
production/injection data, Thiele said.
You cant get much better than that for
diagnostics.
In regard to general IOR, Knowledge
Reservoir is providing project direction
and technical services for a project
awarded under the Research Partnership
to Secure Energy for America (RPSEA)
ultra-deepwater program. The research
report and a characterization database
of deepwater and ultra-deepwater
assets in the Gulf of Mexico will focus
on incentives, needs assessment
analyses and concepts identification
for the application of IOR techniques in
deepwater.
The contract began in April and will
run through October 2010. Knowledge
Reservoir is directing the project with
primary participants Anadarko and
Louisiana State University.
Most of the studies are using lessons
learned and IOR work
thats been carried
out onshore to
determine
what can
economically
and technically
be done in
deepwater.
Additionally, notes
Dave Rees, VP for
marketing & business
development at Knowledge
Reservoir, the results of the project are
applicable not just in the Gulf of Mexico
but in other regions.

Schlumbergers
Intersect interface.
ASIAN OIL & GAS november/december 2009

39

AOG_M_4_Nylacast.indd 1

shipyards

Building for the future

Although orders for newbuild drilling rigs and floating production vessels
placed with shipyards in Asia have markedly declined, some yards
are allocating substantial resources for more facilities. John Mueller
updates his files on the latest Asia-Pacific ship and rig building activities.

s shipyards continue
to be busy fulfilling
past orders, some
have demonstrated continued
optimism in the future of the
industry by making large
financial commitments to
increasing capacity. These
investments range from
Sembcorp Marine creating a
major new yard in Singapore
and taking a significant stake
in the development of an
offshore support base in India
to Yantai Raffles purchase of a
yard in China with the aim of
becoming a principal producer
of jackup drilling rigs.

Jackups
Greatship Global Energy
Services of India has taken
delivery of its KFels B class
400ft water depth rated jackup
drilling rig Greatdrill Chitra
from Keppel Fels in Singapore,
to be deployed off the west
coast of India for ONGC.
Saipem (Portugal)
Comercio Maritimo Sociedade
Unipessoal has taken delivery
of the jackup drilling rig
Perro Negro from Drydocks
World-Southeast Asias Graha
facility on Batam Island,
Indonesia (AOG September/
October 2009). The MSC
CJ46-X100D design rig is able
to drill to 30,000ft in 350ft
water depths.
Seadrill has reached
agreement with PPL Shipyard
whereby the yard exercised
the right to purchase the
375ft water depth rated
jackup drilling rig West
Elara, currently under
construction at PPL and due
for completion in 3Q 2010. PPL
has subsequently sold West
Elara to Vietsovpetro for an
undisclosed sum. A second
equivalent jackup, the West
Leda, is being built at PPL for
40

drilling rig Ocean Valor

(formerly Petrorig II)
delivered by Jurong Shipyard.
Diamond Offshore had
previously acquired the
construction contract for the
7500ft water depth rated Friede
& Goldman Ex-D Millennium
Class design unit from
PetroRig II.

Drillships

The Greatship Global Energy

jackup Greatdrill Chitra, built
by KFels and ready for work
off the west coast of India for
ONGC.
Seadrill, which is on schedule
with rig payments.

Semisubmersibles
Ensco Internationals
latest ultra deepwater
semisubmersible drilling rig,
recently christened ENSCO
8502 at the KFels facility in
Singapore, will start a twoyear contract with Nexen
Petroleum in the Gulf of
Mexico in 2Q 2010. The rig is
the third of seven ENSCO 8500
Series semis KFels has been
contracted to build for Ensco
(see feature, page 24).
Noble Corporation has
named the DP3 ultradeepwater semisubmersible
drilling rig Noble Jim Day,
built and outfitted by Jurong
Shipyard in Singapore. A
Bingo 9000 design able to drill
in water depths to 12,500ft,
the semi is under contract to
Marathon Oil for operations
in the Gulf of Mexico,
commencing 1Q 2010.
Diamond Offshore Drilling
has had its newbuild ultra
deepwater semisubmersible

PV Drilling of Vietnam has

signed a contract with KFels
for construction of a KFels
SSDT 3600E design drilling
tender assist rig valued at
about $200 million. The vessel,
equipped with an eight-point
mooring system, will be able to
operate in water depths of up
to 5000ft alongside spars and
tension leg platforms.
Neptune Marine Oil & Gas
has completed a $340 million
upgrade and conversion of
its Pelican Class deepwater

drillship Neptune Explorer at

Sembawang Shipyard over a
three-year period, equipping it
with a fifth generation drilling
package and 5000ft water depth
operations capability.
Noble Corporation has
engaged Keppel O&M
subsidiary Keppel Fels Brasil
to upgrade and repair two of
their Brazil-based drillships
for $304 million. Noble Leo
Segerius and Noble Roger
Eason are scheduled for
completion in 4Q 2011 and 1H
2012.

Floating production
The FPSO destined to become
the first of its of its kind to
operate in US waters was
named BW Pioneer at a recent
ceremony in Singapores
Keppel Shipyard, where
its conversion is nearing
completion. The vessel will
be leased by BW Offshore to
Petrobras America for Gulf of
Mexico operations in 1Q 2010
in about 8200ft of water, the
deepest yet for an FPSO.
Able to store 600,000 barrels
of oil, process 80,000b/d and
export 16mmcf/d of gas,
BW Pioneer has been
designed with the US Gulfs

november/december 2009 ASIAN OIL & GAS

shipyards

Naming ceremony
at Keppel Shipyard
for the FPSO
conversion BW
Pioneer, due to
go into service for
Petrobras in the
US Gulf in 2010.

combination of hurricanes and

loop currents in mind. In the
event of a hurricane warning
for its Cascade-Chinook
development location in the
Walker Ridge area, the FPSO
is expected to take no longer
than 24 hours to disconnect
from its APL-supplied
submerged turret production
buoy and sail out of harms
way under its own power.
Keppel Shipyard is handling
the pre-conversion work for
Petrobras Netherlands P-58
(ex Roncador). The 180,000b/d
and 200mmcf/d production
capacity FPSO is expected to
sail to Brazil in 1Q 2011 for
completion and deployment
in a 4500ft water depth in the
Campos Basin.

Construction/pipelay
Helix Energy Solutions
new DP S-lay pipelay vessel,
Caesar, has set sail to the Gulf
of Mexico from China where
its conversion from a
cable-laying ship was
completed at the Cosco
Nantong Shipyard.
The vessel is capable of
laying 24in pipelines in
deepwater and up to 48in
diameter concrete clad
pipelines in shallow water.
Saipem has contracted
Keppel O&M subsidiary
Keppel Verolme in the
Netherlands to repair and
modify the semisubmersible
pipelay vessel Castoro Sei.
The work is scheduled for
completion in 1Q 2010.

LEFT: ENSCO 8502, the third KFels ultra-deepwater semi to be

built for Ensco, set for deployment to the Gulf of Mexico.
BELOW: The semi Noble Jim Day, launched at Jurong Shipyard
and contracted to Marathon Oil, also destined for the US Gulf.

ASIAN OIL & GAS november/december 2009

Phased
expansion

will increase by 62% over

time, from 1,897,500dwt to
3,075,000dwt.
The Tuas site is to be
Sembcorp Marine is targeting
developed in three phases over
May 2013 for completion of
a 16-year period.
the first phase of its new
Once the first phase is
73.3ha (206 acre) state-of-thein commercial operation,
art shipyard in Singapore,
Sembcorp Marines activities
located at Tuas View
at Pulau Samulun, on
Extension on the extreme
southwest of the island (shown Singapores southwest coast,
will be relocated to the new
below).
yard.
A $319 million preliminary
In further expansion
turnkey construction
plans, Sembawang Shipyard
contract for the new yard
and Kakinada Seaports
development project was
recently awarded to Zhen Hua have formed Sembmarine
Kakinada (SKL), a joint
(S) Engineering. This work
venture to establish a marine
forms part of a $540 million
phase one development which and offshore facility at the
Kakinada deepwater port in
will see construction of four
Andhra Pradesh, on Indias
drydocks each capable of
accommodating VLCCs, along east coast.
SKL is targeting work on
with wharves, quays, piers
offshore drilling rigs and
and other ancillary works.
merchant vessels operating
The yard is being hailed as
in Indian waters, with
a centralised and integrated
Sembawang parent company
one-stop solutions hub for
Sembcorp Marine holding a
ship repair and conversion,
19.9% share of a preliminary
ship and rig building and
$50 million investment.
offshore engineering and
This facility will also be
construction, serving a wide
developed in stages, initially
range of vessels including
providing riser/equipment
new generations of mega
and afloat repairs and module
containerships, LNG carriers
fabrication.
and passenger ships, all of
The plan is to grow into
them conforming to the latest
regulatory and environmental one-stop integrated offshore
service facility over a 3-5 year
standards.
period.
According to Sembcorp,
Meanwhile in China, Yantai
the new yard will also
Raffles Offshore, a subsidiary
feature optimised docking
of Yantai Raffles Shipyard,
and berthing facilities, with
has agreed to purchase
an improved dock and quay
Sanlian Longkou Shipyard
ratio, to ensure more rapid
in Shandong Province for
turnaround in repairs and
upgrading. Total dock capacity $43 million. Over the next
3-5 years, YRS is looking to
develop the 400,000m yard
dev
into one of the worlds largest
fabricators
of jackup drilling
fab
rigs.
rigs

41

product review

All electric
winch

Wireline retirement
ment
assurance

NOV ASEP Elmar, a

manufacturer of wireline
pressure control equipment
and winches, has launched the
NOV ASEP Elmar e-drive, an
electrically powered winch
expected to set a new standard
in wireline logging and
slickline activity.
The e-drive is a fully
electronic truck-mounted
or offshore winch system
controlled by the NOV
ASEP Elmar SmartMonitor,
designed to operate without a
diesel engine, and capable of
remote operation worldwide.
The unit can deliver all
the functionality of the
standard NOV ASEP Elmar
K-winch units, controlled by
information from Well Profile
Prediction software.

Sandvik Materials Technology

nology
has come out with a new,
w,
portable wireline wrap and
torsion ductility tester that
hat
combines ease of use with
h
consistent repeatability for
oil and gas industry slickline
kline
optimisation.
The process of wrapping
ng
a line around its own
diameter exerts extreme
pressure on the outer
fibre of the line, making
reduced ductility immediately
diately
apparent. The Wraptor allows for safe,
controlled wire test of up
p to 1m (3ft) in
length for a 0.125in line and more for a
0.108in line, meaning the
e surface area
tested can be up to 100 times greater
than the alternative method of knotting
the line, greatly reducing the danger of
lowering a brittle line.
Wrap testing is recommended for testing
ductility in stainless and alloy wirelines,
while torsion testing is best for carbon

Downhole
assistance
Baker Hughes has inaugurated
several new downhole
products and services
enhancing, respectively,
artificial lift, drilling, zonal
isolation and fracturing.
The Centrilift Vision realtime artificial lift system
collects data from artificial
lift operations, furnishing
information necessary to
optimise production and
minimise field downtime.
Centrilift Vision features
include fuzzy logic alarming,
daily exception reporting, and
advanced key performance
indicator tracking.
The Hughes Christensen
Quantec Force line of
polycrystalline diamond
compact (PDC) bits feature
newly engineered stabilisation
technology and nextgeneration cutters for higher
penetration rates, increased
bit life and reducing costs
in a wide range of drilling
environments. The new
PDC bits also use a newly
engineered and highly wearresistant cutter line, each
42

suited to the formation being

drilled.
The Baker Oil Tools MPas
packer system provides
openhole annular isolation,
eliminating many operational,
production and remedial
problems associated with
cement jobs. The MPas-e
Remote-Set Packer system
with eTrigger technology
allows selective zone
isolation in open holes in
extended reach wells. Run
on production casing or liner
string, the MPas packer, plus
the uniform production profile
created by Baker Hughes
BOT Equalizer inflow-control
devices, enables flow in the
annulus to be efficiently
managed.
Moreover, Baker Hughes
and BJ Services have
launched IntelliFrac, an
integration of state-of-the-art
fracturing and production
enhancement services from BJ
with advanced microseismic
services from Baker
Hughes. This combination
facilitates monitoring of
fracture dimensions during

steel wirelines.
This is due to the structural
differences of the steels, stainless steels
being anisotropic, ductile in one direction,
while carbon steels are isotropic, ductile in
all directions.
The Wraptor comes with all necessary
accessories including chuck, bushing and
wire guide for wrap tests, and spindle and
chuck for torsion tests.

stimulation treatments,
permitting real-time control
of fracture operations.
During hydraulic fracturing,
the IntelliFrac service
monitors and measures
the microseismic events
that indicate key fracture
properties, including azimuth,
height, length, volume and
complexity of the induced
fractures.

Gas leak
detection
simulator
Gassonic lays claim to having
developed the worlds first
gas leak simulation tool for
ultrasonic gas detection.
According to its developers,
the new simulator, which
can be accessed in a trial
version on the companys
website www.gassonic.com/
simulator, makes it possible
to experience the advantages
of implementing ultrasonic
detectors for quick, highpressure gas leak detection

in challenging offshore
conditions.
The system responds to the
distinctive ultrasound created
by the leak. Gassonic, part of
the General Monitors group,
says its detectors pick up gas
leaks at the speed of sound
without having to wait for
the gas to accumulate and
physically enter a point sensor
head (conventional point
detector) or within a narrow
beam (open path gas detector).
The acoustic detection method
is thereby unaffected by
unknown factors such as wind
conditions, gas dilution, and
leak direction.

Intelligent drilling
Schlumberger and National
Oilwell Varco (NOV) have
formed IntelliServ, a 45:55
joint venture to provide highspeed drill string telemetry
systems to improve the
efficiency and safety of oil and
gas operations.
The JV is anticipated to
accelerate development
and delivery of intelligent

november/december 2009 ASIAN OIL & GAS

product review

drilling solutions through the

expanded use of the IntelliServ
Broadband Network, a
patented technology that
provides high resolution data
in real-time to and from the
bottom of oil and gas wells as
they are being drilled.
IntelliServ will also provide
along-string evaluation
services to enable real-time
monitoring of drill string
conditions, and the capability
to actuate downhole tools
on-demand. The current speed
of 57,600 bits per second is
reckoned by the JV partners
to be up to 20,000 times faster
than the transmission speed
available using conventional
mud pulse technology.

of the GeoGraphix product

family, Discovery 3D software
users will have an immersive,
game-like experience
when developing geologic
interpretations.
Landmark considers that
geologic interpretations
developed using the
GeoGraphix Discovery
workflow, and visualized in
realtime through Discovery
3D software, translate to an
enhanced, more complete
understanding of the
geologists work, improving
models in a real-world, 3D
earth model domain.

Complex
reservoirs
The visualization simulated
game
Schlumberger and Chevron
Landmark has launched
GeoGraphix Discovery
3D software, a Microsoft
Windows PC-based offering
incorporating interactive
visualisation tools from
Microsofts Xbox gaming
console and the 64-bit
capabilities and performance
of the new Microsoft Windows
7 operating system.
Employing this new member

Energy Technology Company

have released Intersect, a
software enabling simulation
of large complex reservoirs
and highly heterogeneous
systems, the result of
collaborative research and
development since 2000.
Intersect can run large
and diverse models, rapidly
simulating tens of millions of
cells, and accurately model

Laser volume tracker

FARO Technologies, a provider
of portable measurement and
imaging solutions, has released
FARO Laser Tracker ION, its latest
3D measurement system featuring
advances that include the distance
measuring system Agile Absolute
Distance Meter (ADM).
ION replaces conventional tools
such as tape measures, piano wire,
plumb bobs, and theodolites, useful
in such applications as alignment,
machine installation, component
inspection, tool building and setup, and reverse
engineering.
The ION has improved volumetric accuracy by 27%
over the previous model to 0.002in (0.049mm) at 10m,
extended the measurement diameter range 36% to 110m,
and reduced weight 12% to 17.7kg.
The patented ION feature Agile ADM allows high
density scanning without reliance on an interferometer.

ASIAN OIL & GAS november/december 2009

Hot spots revealed

d
Dampney Company offers
Thurmalox 260 TIC, its series
of protective coatings that
give a visual warning that a
pipe, vessel, reactor, transfer
line, and similar equipment
is overheating due to failure
of refractory linings or the
bypassing of hot gasses.
The Thurmalox 260 TIC coatings
ings change colour at
predetermined temperatures, indicating where corrective
action is required, in intervals from 25-50F, depending
upon formulation, and are also available in colours that
change permanently at preset temperatures from 400650F.
Self-priming and VOC compliant, Thurmalox 260
coatings come in yellow, blue, red, and violet, suitable
for application by spray, brush, or roller, and also afford
corrosion and weathering resistance and UV stability.

complex geology and wells,

inclusive of detailed reservoir
characterisations with
minimal or no upscaling.
The software also
supports sophisticated
field management, handles
thousands of wells in
mature fields, as well as
simulating all fluid types
and recovery processes in a
single simulator. Advanced
production controls enable
flexible operational field
management.
The Intersect software
will be progressively
released, enhanced by the
experience of early adopters in
challenging multiple reservoir
applications.

Decisions
expedited
Schlumberger has released
Merak Enterprise Planning
(MEP) software, a nextgeneration technology
enabling dynamic oil and gas
business planning, including
event-driven or evergreen
plans.
Answers to complex
business questions for
improved decision making are
quickly obtained through the
combination of Microsofts
enterprise software

platform and the industry

knowledge and expertise of
Schlumberger.
MEP employs an oil and
gas data management cube
to align strategy with plans
and budgets, simultaneously
integrating reserves,
production and financial data.

ROV training
enhanced
VMAX Technologies, part
of the Triton Group, has
launched Project Simulator
Version 1.6 for full field
simulation and visualisation,
bringing another dimension
to remotely operated vehicle
(ROV) pilot training and
mission planning through the
use of trainee task logging
tools and an expanded
suite of generic training
scenarios including a jacket
survey situation using nondestructive testing tools. It
also includes a number of
on-line training videos to
teach developers how to create
field level scenarios in-house.
Project Simulator V1.6
and the enhanced scenarios
are now a standard part of
the training courses offered
by Triton Group members
and affiliates in Houston,
Singapore and Aberdeen.
43

contracts/deliveries

Gorgon awards
A number of major contracts
for the Chevron Australia
operated Greater Gorgon
development offshore Western
Australia have been placed
following Septembers award
of the $2.5 billion engineer,
procure and construction
manage (EPCM) contract
for downstream facilities
and logistics to the Kellogg
Joint Venture Group (AOG
September/October).
The KBR-led joint venture,
which includes JGC, Clough
and Hatch, will utilise
fabrication yards in Southeast
Asia and Australia to support
the planned 250,000 tons of
LNG and domestic gas plant
modules required for the
Barrow Island development,
70km off the Pilbara coast.
The EPCM contract will be
co-ordinated from Perth and
London, with assistance from
offices in the US, Singapore,
Indonesia and Japan.
Hyundai landed a $2 billion
order to fabricate the 48 modules
weighing 190,000 tons in
total for the three-train,
15mtpa LNG plant. Saipem,
in consortium with Leighton
Contractors, bagged the EPC
contract for the 2.1km long
jetty and related marine
structures on Barrow Island,
expected to be completed in
2013. Malaysias Wah Seong
Group secured a $177 million
pipeline coating contract,
involving some 850km of
Gorgon pipe and due for
completion in 2012.
GE Oil & Gas won a
$400 million contract to
supply three main refrigerant
compression trains for
LNG production and six
compression trains to drive
the projects pioneering
carbon dioxide sequestration
scheme. The equipment will
be shipped from Italy in 2011
and 2012. Aker Solutions
will deliver a monoethylene
glycol (MEG) system worth
approximately $53million.
And under a $21 million
electrical contract, Kentz is
44

offshore the Pilbara region

of Western Australia for an
undisclosed amount.
INTECSEA will design
subsea gas gathering facilities
and a 200km pipeline linking
an onshore gas plant to a
Technip Oceania engineered
offshore production platform.
The FEED process for the
4.5tcf gas resource Wheatstone
development is reported to be
progressing well, ahead of a
final investment decision in
2011.

Subsea 7
connection
Sabah J-Lay pipe prep
Optical Metrology Services of the UK has been contracted
to undertake dimensional measurement of 3500 pipe ends
comprised of seven pipe sizes and provide assistance in
planning and execution of J-Lay double joints for the
Gumusut-Kakap oil field, the first Shell deepwater project
in Malaysia, located off the northwest coast of Sabah.
The pipe ends are to be used for both steel catenary
risers and flow lines, part of a semisubmersible floating
production system (FPS) connected to subsea wells.
In total, there will be 27 riser porches and 13 pull
tubes on the FPS, of which 10 riser porches and five pull
tubes have been allocated for the initial J and K field
development.

to install of over 100km of

high and low voltage cabling,
diesel generators, sub-stations
and lighting throughout the
Barrow Island construction
site.

Subsea job to
SapuraAcergy
SapuraAcergy has been
awarded a $170 million
contract by Apache
Energy for the Devil Creek
Development Project (DCDP)
offshore Western Australia,
undertaken to recover and
process gas reserves from
the Reindeer field located
80km northwest of the port of
Dampier in a 60m water depth.
SapuraAcergy workscope
involves transport and
installation of approximately
91km of 16in rigid pipeline

including a shallow water

beach approach, subsea tie-in
and stabilisation works
together with the wellhead
platform of a 1,700t four leg
jacket and a 450t topside
processing module.
Engineering and project
preparations have commenced
in Kuala Lumpur and Perth,
with installation scheduled
for late 2010 using the Sapura
3000, a DPS heavylift and
pipelay vessel.

Further
Wheatstone
FEEDs
Chevron has awarded
two front end engineering
and design (FEED) phase
contracts for its wholly owned
Wheatstone gas field project

Subsea 7 has won an

$80 million contract from
Santos for installation of a
22km long 12in rigid pipeline
to connect subsea production
trees together with four rigid
spool pieces and a 22km long
electro-hydraulic umbilical.
at the Casino-Henry field
offshore southeast Australia,
Project management and
engineering work is underway
at Subsea 7s offices in
Singapore, work to commence
with the arrival of the Seven
Navica, a Subsea 7 deepwater
pipelay and construction
vessel, aided by the Rockwater
2 diving support vessel.
The Casino-Henry field is
located in the Otway Basin,
in water depths of 56-72m,
30km south of Port Campbell,
Victoria. It is operated by
Santos on behalf of joint
venture partners AWE and
Mitsui E&P Australia.

Golar takes
first train
Golar Energy has signed a
heads of agreement (HoA) with
Toyota Tsusho Corporation
of Japan for sale of all
production from the first train
of Gladstone LNG, covering
delivery of approximately
1.5mtpa of LNG from 2014 to
2026, transported by Golar
Energy owned LNG carriers.
The accord also includes

november/december 2009 ASIAN OIL & GAS

contracts/deliveries

Toyota Tsushos potential

acquisition of a minority
interest in the Gladstone LNG
Fishermans Landing project.
In 1Q 2009 an HoA with
Liquefied Natural Gas was
signed for joint development
of the Gladstone LNG project
to produce LNG in Gladstone,
Queensland, Australia,
purifying and liquefying coal
seam gas sourced from Arrow
Energy gas fields, located in
Central Queensland.

Total delta
fluids solutions
Halliburton is to provide
Total with drilling and
completion fluid solutions
in the Mahakam Delta, East
Kalimantan, Indonesia in a
three-year contract estimated
at $122 million.
Work is expected to start
early 2010.

XLXs, two 3000m Triton XLXs

and one 3000m Triton XLS,
all to be delivered by 2Q 2010,
with an option to provide two
additional ROVs.
Perry Slingsby will also
furnish ship interface
engineering and installation
services from its base in
Singapore, and support Lewek
from its worldwide network
of centres once the ROVs are
deployed for global operations.

China
chemicals
managed
Amec has been retained by
Yulin Energy & Chemicals
Company to act as project
management contractor for
development of the $3.3 billion
Jinbian integrated energy and

chemical project in Shaanxi

Province, northwest China.
The workscope includes
engineering, contract and
construction management,
project controls and quality
assurance.
The complex will have a
production capacity of 1.8mtpa
of methanol.

Reliance
support services
Indias Reliance Industries
has granted Aker Solutions a
$25 million award to provide
support services to the MA-D6
and KG-D6 field developments
located in the Bay of Bengal.
The contract, to be executed
through Aker Solutions
service base in Kakinada,
India, covers all phases of the
fields lifetime, comprising

Surveying
the field
Fugro Survey in Perth,
Western Australia, has signed
a master services agreement
with CNOOC Australia E&P
for the supply of site surveys,
rig positioning and ROV
services.
The first assignments under
this agreement were recently
completed in the Timor Sea
using Fugros dedicated
survey vessel Southern
Supporter for a number of site
surveys.

Five ROVs
for Lewek
Lewek Shipping, a subsidiary
of Ezra Holdings of Singapore,
has contracted Perry Slingsby
Systems, part of the Aberdeenbased Triton Group, to provide
five state-of-the-art work class
remotely operated vehicle
(ROV) systems worth about
$23 million.
Perry Slingsby will supply
two 4000m depth rated Triton

inspection, testing and

maintenance of subsea
equipment and tools for a
period of three years.

QSN3 pipe
coating
Bredero Shaw (Australia) has
received a contract with a
value in excess of $40 million
from Marubeni-Itochu to
provide pipeline coatings for
Epic Energys QSN3 pipeline
project, which incorporates
the looping construction of
the South West Queensland
Pipeline, SWQP and the
QSN Link Pipeline. QSN3
will be installed from
Wallumbilla in Southeast
Queensland to Moomba in
South Australia.
The QSN3 project will be
executed at the Bredero Shaw
pipe coating facilities in
Kembla Grange, Australia and
in Kuantan, Malaysia.
This contract involves
coating approximately
945km of 18in pipe that will
be protected with dual layer
fusion bonded epoxy coating
and SureFlo internal coating.
Coating will begin early 2010.

Jacket cutoff

Pig safety assurance

Netherlocks, an industrial and valve safety specialist, has
been chosen to supply its trapped key interlocking safety
systems to Larsen & Toubro, Indias largest engineering
and construction conglomerate, to secure and safeguard
pipeline pigging operations for two major projects. One,
in conjunction with Cairn Energy India, involves 39 pig
launcher and receiver systems along a cross country
pipeline. The second order is for Qatar Petroleums
SGP project, where initially 12 pigging systems will be
protected.
The trapped key interlocking systems ensure each stage
of a process can only be started utilising a key operated
valve, successive valve operations initiated only when
the previous stage has been completed, mechanically
enforcing absolute adherence to safe procedure.

ASIAN OIL & GAS november/december 2009

SapuraAcergy of Malaysia
has awarded Proserv Offshore
the subsea cutting contract
for decommissioning of the
Iwaki platform jacket off the
northeast coast of Japan, to
commence late 3Q 2010.
Located in 154m of water,
the eight-legged, 20,735t Iwaki
wellhead production platform
will have the nearly16,000t
jacket cut such that that DP
heavylift vessel Sapura 3000
can lower it to the seabed,
creating an artificial reef.
Proserv Offshores Asia
Pacific operations will supply
all of the cutting equipment
and services, including 80in
diamond wire cutting tools
as well as external, internal
and specialised abrasive
cutting systems, deployed by
SapuraAcergy ROVs.
45

company news

DOUBLE-TAKE: Fugro has been on the

acquisition trail lately, with UK and
Australian companies among its latest
purchases.
Simulation and visualization software
specialist General Robotics has now been
renamed Fugro GRL and will operate as
part of Fugro Subsea Services, keeping the
same management and staff headed
by Dr Jason Tisdall. Tisdall is pictured (left)
with Fugros global ROV manager Jim
Mann (centre) and Jeff Coutts, managing
director Fugro GEOS.
Meanwhile, in Australia, Fugro recently
agreed to acquire Submec, a small subsea
engineering and ROV tooling services
company based in Perth.

Fluor, COOEC
team up
Fluor and China Offshore
Oil Engineering Corporation
(COOEC), a subsidiary of
CNOOC, have agreed to jointly
pursue large offshore projects
in the Asia-Pacific region. The
alliance will focus on both
shallow and deep water as well
as fixed and floating facilities
with a view to expanding
globally.

OSD strengthens
network
Dutch naval architecture and
marine engineering design
firm Offshore Ship Designers
(OSD) has strengthened
its global network with
the opening of an office in
Singapore.
OSD Singapore will liaise
with clients building ships
in Asia and provide a local
solution for companies based
in the island republic. The
company, which also has a
design office in Shanghai,
China, says it is currently
overseeing ten offshore vessels
being built to its designs in
Asia.

Cabins for
Singapore
Aberdeen-based Offshore
Container Holdings (OCH) has
expanded its operations into
46

Asia with the establishment

of Singapore subsidiary OEG
Asia Pacific to supply the
offshore oil and gas industry
with specialist, pressurised
engineering cabins and a
range of containers and
baskets.
Over $1.5 million has been
invested in a new rental
fleet build programme for
Singapore, with A60 fire
rated, DNV 271 Zone rated
engineering cabins available
for rent immediately and the
facility expected to be in full
operation early 1Q 2010.
The opening of the
Singapore base is the first
phase of OCHs three-year
plan to expand its presence
in the Asia Pacific region, to
eventually cover Malaysia,
Thailand, Australia, Vietnam,
Brunei, Indonesia and China.

ITS cashed up
for expansion
ITS Group, a specialist
provider of oilfield equipment
and services, has received a
$55 million equity investment
as it gears up to become a
major global player in the
oilfield drilling sector.
Energy-focused private firm
Lime Rock Partners provided
the funds for this deal in
return for a minority stake in
the company.
The ITS portfolio includes
drilling and pressure control
equipment, fishing, casing

running and machine shop

services. The company was
formed in 1986 in Aberdeen
by Bob Kidd and now has
25 operational facilities
worldwide that include the
UAE, Saudi Arabia, India,
Pakistan, Singapore and
China.

Schlumberger
sets up Saudi
centre . . .
Schlumberger has opened a
new reservoir completions
manufacturing centre in
Dammam, Saudi Arabia
to cater to the needs of the
Kingdom and the Middle East.
Located in Dammam
Industrial City, the centre
represents an investment
of some $25 million in stateof-the-art manufacturing
equipment, facility lease and
inventory and houses a team
of design and manufacturing
engineers specialised in the
production of customised
downhole reservoir
completions equipment.

. . . and renews
Technip pact
Schlumberger and Technip
have concluded a global
cooperation agreement
to jointly develop subsea
integrity and surveillance
solutions for flexible pipes

used in deep offshore oil and

gas production, extending
collaboration between the
companies that began in 1998.

EA assets sought
Barclays Natural Resource
Investments, part of Barclays
Bank, has created Nio
Petroleum in partnership
with Richard Hall, Nio CEO,
and Rory Edwards, Nio COO,
to focus on undeveloped
discoveries and marginal
fields in Southeast Asia,
particularly in Malaysia,
Thailand, Vietnam, Indonesia
and Australia.
Nio Petroleum is seeking to
acquire dormant or mature
late-life assets to add value
through the use of existing and
new technologies and in-house
expertise.

JV targets
SEA deeps
UMW Oil & Gas and SWG
Offshore International have
formed a joint venture to
target subsea and deepwater
installation projects in
Southeast Asia.
The new JV, called UMW
Deepnautic and incorporated
in Singapore and Malaysia,
is expected to leverage the
strengths and capabilities of
both partners in pursuing
these markets, allowing
them to jointly expand their
businesses into the regions

november/december 2009 ASIAN OIL & GAS

company news

high-growth subsea and

deepwater installation sector.
In a statement issued early
December, the partners
said UMW Deepnautic
will continue to offer the
technically competent services
and project execution track
record of SWG Offshore,
whilst accessing the extensive
network and capabilities
of UMW Oil & Gas. This
includes UMWs substantial
offshore fabrication capacity
in Singapore, Malaysia and
Vietnam.
SWG Offshore International
will complete all existing
works contracted to it, with all
new contracts being entered
into by the new JV.
SWG Offshores wholly
owned subsidiary in Perth,
Western Australia, is
unaffected by this move.

Rod guides in
Roma
R&M Energy Systems has
opened a rod guide operation
in Roma, Queensland,
Australia, providing wear
protection solutions for both
reciprocating and progressing
cavity pump applications that

include such brand names as

New Era Rod Guides, RODEC
Tubing Rotators, and Hercules
Rod Rotators.

Bouyancy boost
Matrix Composites &
Engineering is constructing a
state-of-the art facility in the
Australian Marine Complex
Subsea Cluster at Henderson,
south of Perth.When
completed 2Q 2010 the facility
will house a syntactic foam
buoyancy plant that will more
than double the companys
production capacity. Matrix
says the plant will be capable
of manufacturing and
testing riser and production
equipment buoyancy of
virtually any size to water
depths of 16,500ft.

Emerson bolsters
Viet presence
Emerson Process Management
(Vietnam) has been
established as a new sales,
engineering, and service
office in Ho Chi Minh City
to serve local industry with
engineering and service
support.

SAT SYSTEM: Bisso Marine of Houston has acquired a 12-man portable

saturation diving (SAT) system capable of working at depths of 1000ft
that features a dual-lock, six-man deck decompression chamber,
a 12-man launchable flyaway hyperbaric rescue chamber, a duallock, six-man come-out chamber and a three-man diving bell.
The Bisso Marine fleet provides marine construction, pipe laying,
salvage, heavy lift and diving services with offices and alliances in the
Americas, Europe and Asia.
ASIAN OIL & GAS november/december 2009

BRIEFLY
z Dril-Quip Asia Pacifics
new $34 million offshore
drilling equipment
manufacturing plant,
being constructed on an
11.2 acre greenfield site
in Singapore, is expected
to be completed 1Q 2011.
The facility will support
sales, service, engineering,
manufacturing, assembly,
and warehousing.
z The John Wood Group
has acquired Baker
Energy, the energy services
business of Michael Baker
Corporation, for $38 million
in cash. Baker Energy,
which provides onshore
and offshore operations
and maintenance services
internationally and has
an Asia Pacific presence,
now operates within the
Wood Group E&P facilities
division.
z Technip and SaudConsult
have signed a MoU to set
up a 50:50 joint venture
to develop an engineering
centre of excellence in
Al Khobar, Saudi Arabia,
focusing on front end
engineering design, detailed
engineering, procurement
and construction
management services for
the Kingdoms energy
sector.
z Tendeka has acquired
Bahrain-based Flotech,
a provider of sand face
completion technologies,
including a full suite of
inflow control devices
and isolation packers, and
FloQuest, a supplier of
wellbore flow modelling
and in-well data
management.
z German ship management
group Hellespont has
inaugurated Hellespont
Singapore to work with
offshore charterers, source
crews for the Hellespontmanaged platform supply
vessel fleet and become an
operator of offshore vessels
in Singapore.

appointments

Andy Robson
(pictured) is MD
of the newly
established
Singapore branch
of
o Offshore Ship Designers, a
Netherlands-based
provider
N
of
o naval architecture and
marine
engineering services,
m
complementing
design offices
c
the
t UK, Holland and China.
Geologist
Dr Mark Fenton has
G
been
appointed MD of Kairiki
b
Energy,
an Australia-based
E
oil
o company with interests in
the
t Philippines. He succeeds
Laurie
Brown, who will remain
L
as
a an executive director,
as
a the company moves to
transition
from exploration to
t
a production based enterprise.
John Aw (pictured)
has been recruited
by UK-based
Offshore Container
Holdings as regional
director
to head up recently
d
established
OEG Asia
e
Pacific
in Singapore. He was
P
previously
HB RentalsAsia
p
Pacific
regional sales
P
manager.
m
James McNeilly
(pictured) has been
named VP land
operations for HB
Rentals, a Superior
Energy
Services company
E
operating
from hubs in the US,
o
UK
U and Singapore.
Drew
Cadenhead has been
D
promoted
to COO and Blair
p
Johnson
to CFO of Tag Oil, a
J
Canadian
company producing
C
and
a exploring for oil and gas
in
i New Zealand.
Mike
Pearce, formerly
M
president
of Smith
p
Technologies,
has assumed
T
the
t newly created post of EVP
strategy
implementation,
s
focused
on the identification,
f
selection
and negotiation of
s
potential
acquisitions and
p
joint
ventures for Smith
j
International
outside of North
I
America.
Norman Mckay
A
succeeds
Pearce as president
s
47

appointments

events

of Smith Technologies, based

in Dubai.

26/27 January 2010

HSE Risk Management in Oil
& Gas
Kuala Lumpur, Malaysia
Contact: IQPC
tel: +65 6722 9388
enquiry@iqpc.com.sg

Andrei Galaev
(pictured) has
stepped up from
deputy chief
executive to CEO at
Sakhalin Energy Investment
Company. Former CEO Ian
Craig, who led SEIC for five
years, is expected to take up a
new appointment with Shell
early in 2010.
Bill Bayliss has been appointed
COO of Topaz Engineering,
a division of Dubai-based
Topaz Engineering & Marine
active in the Middle East, the
Caspian and Southeast Asia.
He replaces Jim Masterton who
remains with the company as
an advisor.
John Watson has become
Chevron CEO and chairman,
succeeding David OReilly who
has retired .
Laith Amin
(pictured) has been
appointed business
development
manager for AGC,
the Perth-based fabrication,
construction and integrated
services provider, responsible
for AGC and the Australian
Ausclad Groups associated
company in Singapore.
Jan Pieter Klaver has been
named CEO of Heerema
Marine Contractors (HMC)
promoted from COO of HMC, a
position he will retain. Klaver
succeeds interim CEO Jack
Jacobs.
Jean-Georges Malcor, a
Thales SVP, joins CGGVeritas
management on 1 January
2010 and will become CEO on
1 July 2010, succeeding Robert
Brunck, who will continue as
chairman of the board.
Uri Nooteboom has been
promoted from SVP to CEO
of IntecSea, part of the
WorleyParsons Group. He
replaces Chris Tam.
48

2-4 February 2010

IADC/SPE Drilling Conference
& Exhibition
New Orleans, USA
Contact: SPE/IADC
tel:+1 972 952 9369
registration@spe.org
24/25 February 2010
Managed Pressure Drilling &
Underbalanced Operations
Conference & Exhibition
Kuala Lumpur, Malaysia
Contact: SPE/IADC
tel: +31 24 675 22 52
anouk.vandewater@iadc.org
24/25 February 2010
IMCA Safety Seminar
Singapore
Contact: International Marine
Contractors Association
tel: +44 20 7824 5520
events@imca-int.com
3-6 March 2010
OceanTex 2010 (Offshore
Conference & Technology Expo)
Mumbai, India
Contact: Chemtech Secretariat
tel: +9122 4037 3737
conferences@jasubhai.com

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tankers & terminals. Includes latest ideas
on topics such as generation of stray currents & static electricity; use of mobile
telephones & pagers; new materials for
mooring lines, much more. Introduces
principles of ism & isps codes.. With cd.

Written in non-technical language

to give a basic understanding of the
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with exercises & answers. Ideal for
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or any other area operating in other
disciplines.

ISBN: OIL 092917 | PRICE: $ 445.00

ISBN: OIL 147764 | PRICE: $ 69.00

Petrochemicals
in Nontechnical
/DQJXDJHRD

Nontechnical Guide
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Exploration

Premier text on petrochemicals for

the nontechnical industry professional. An overview of petrochemicals &
expanded to include methyl tertiary
butyl ether & higher alcohols.

Non-technical guide to petroleum

geology, exploration, drilling and
production. A step-by-step explanation of petroleum science, well
completion testing, completion and
production. Well illustrated with
color plates.

ISBN: OIL 147985 | PRICE: $ 69.00

ISBN: OIL 14823X | PRICE: $ 69.00

Deepwater Petroleum
Exploration & Production

Rock Physics
Handbook

Deepwater petroleum exploration

and production: a non technical
guide. The most comprehensive text
on the business. It covers all aspects
of deepwater operations including
historic background and an outlook
to future operations.

Addresses the relationships between

the physical properties of rocks &
geophysical observations. This book
makes available a vast amount of
laboratory & theoretical material in
an accessible form.
ISBN: OIL 543444 | PRICE: $66.00

ISBN: OIL 148469 | PRICE: $ 69.00

Formulas & Calculations

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and Workover

Oil & Gas

Production In Non7HFKQLFDO/DQJXDJH

NEW EDITION!! Formulas & calculations for drilling, production, &

workover. Formulas for pressure graGLHQWV VSHFLF JUDYLW\ SXPS RXWSXW
annular velocity, buoyancy factor and
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provided throughout.

Introduction to oil & gas production

for the beginning petroleum engineering & geology students and for
professionals interested in the industry. Complete with helpful charts &
diagrams.
ISBN: OIL 700520 | PRICE: $ 69.00

ISBN: OIL 674520 | PRICE: $107.00

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ASIAN OIL & GAS november / december 2009

49

AOG_M_4_p050 Catalogue

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Page 50

Gulf Coast Oil Directory 2008

UPDATED...With extensive information on companies...
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E\DSSOLFDWLRQVHOGVRILQWHUHVWOLVWLQJRIFRPSDQLHVE\
name...Very very detailed and informational book.
ISBN: OIL GULF 2008 | PRICE: $ 99.00

3HWUROHXP5HQLQJ
7HFKQRORJ\ 
Economics 5TH Edition
An essential textbook for students
& a vital resource for engineers.
Provides updated data & addresses
FKDQJHVLQUHQHU\IHHGVWRFNSURGuct distribution, & processing requirements resulting from state &
federal legislation.

'ULOOLQJ'DWDHB 8/Ed
An up-to-date revision of data
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RIFH+DQG\[LQ[LQLQdexed sections such as: conversion
factors; drill string stds; casing, tubing & line pipe stds; drilling bits &
downhole motors; pumping & pressure losses..
ISBN: OIL 808714 | PRICE: $115.00

ISBN: OIL 370388 | PRICE: $ 99.95

Pipeline Rules of Thumb

Handbook 6TH Ed

Marpol Consolidated
2006

Manual of quick, accurate solutions

to everyday pipeline engineering
problems. Updated & revised to include new material on project scoping, plastic pipe data, hdpe pipe data,
EHUJODVV SLSH QHF WDEOHV WUHQFKing, more. Many illustrations, charts,
formulas, etc..

Includes annex i, annex ii, annex iii,

annex v, & annex vi.
ISBN: OIL IMO 520E | PRICE: $115.00

ISBN: OIL 678526 | PRICE: $130.00

IMDG 2006 2 Vol

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Fundamentals of
Petroleum 4TH Ed

International maritime dangerous

goods code. Volumes 1 & 2. Also
includes cds for code in english,
spanish & french, and an imdg code
e-learning in english. Please note:
these cds require additional payments at activation time !!

A nontechnical overall view of the

petroleum industry. Presents useful
information that should help lay persons understand the complex world
of oil & gas.
ISBN: OIL 98162X | PRICE: $85.00

ISBN: OIL IMOIF200E | PRICE: $205.00

Primer of Offshore
Operation

Primer of Oilwell
'ULOOLQJTH Ed

In simple, yet detailed explanations.

Chapters include oil & gas; exploration; drilling rigs; drilling a well;
development drilling & completion;
production & workover. Many illustrations to clarify text.

Includes a 20 in. X 27.5 In. RoWDU\ULJSRVWHU7KHSULPHULVDUVW

reader of the oilwell drilling business
written primarily for adults, junior &
senior high school students.

ISBN: OIL 981786 | PRICE: $ 72.00

ISBN: OIL 981948 | PRICE: $114.00

Order online - www.oilonline.com/store / fax 1-713-831-1778

50

ASIAN OIL & GAS november / december 2009

AOG_M_4_p051 Catalogue

11/12/09

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Page 51

Dictionary For The Oil

& Gas Industry

MODU Code 2001

(Mobile Offshore)

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from many sources- writers & editors, industry personnel, petex instructors & coordinators, & various
published works.

Code for the construction and equipment of mobile offshore drilling

units (MODU code), 2001. (No 2004
edition is expected.
ISBN: OIL IMO 811E | PRICE: $33.00

ISBN: OIL 982138 | PRICE: $107.00

Solas 2004
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2LO *DV
The Production Story

Safety standards for ships engaged in

international trade, providing safer
shipping and cleaner oceans.

a basic description about oil & gas

production, from its origin to the surface. This story is twofold: to enlighten those whose jobs require a general
knowledge of production operations;
and to serve as an intro to the petex
oil & gas production series.

ISBN: OIL IMO 110E | PRICE: $132.00

ISBN: OIL 98002X | PRICE: $60.00

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