The Spill Control Association of America (SCAA) has named Scott Metzger as its new president. Mr Metzger is senior vice president of field operations for Clean Harbors and holds an oversight role for the Clean Harbors’ National Strike Team that manages environmental incidents.

Columbus McKinnon appoints Lawrence Gavin as executive director, CPO

Columbus McKinnon has appointed Lawrence Gavin, CPSM, CPM, as executive director and chief procurement officer. Mr Gavin will be responsible for oversight of the company’s global purchasing program.

Marine sanitation device commissioned on Discoverer Enterprise

ACT2 Technologies has commissioned a marine sanitation device on the Transocean Discoverer Enterprise in the Gulf of Mexico contracted by BP. The ACT2 Piranha systems are designed to digest sewage and paper into pure, odorless and colorless water to meet EPA water reuse standards. The systems do not use chlorine or other harmful chemicals.

Oil and gas veteran founds VQ Media Resource

VQ Media Resource was established in February to offer personalized strategic planning, media buying and analysis on a regional or international basis. The company was founded by Vicki Quesada, who has more than 20 years of experience in the oil and gas industry. She previously served as head of media for Halliburton.

VQ Media, which is based in Dallas, already counts one of the “Big Four” service companies as a client. For more information, go online to www.vqmediaresource.com.

GE wins contracts to expand Brazil’s pre-salt fields, will build oil and gas research center in Oklahoma

In the past 12 months, GE’s Power Conversion business has won contracts valued at more than $600 million to provide propulsion systems for the pre-salt expansion off Brazil’s east coast. GE’s systems will power, propel, navigate, position and control drillships, as well as power and control the drilling process itself.

The company is building systems for 22 of the 29 drillships for the current phase of exploration by Petrobras.

Four significant contracts won by GE in recent months related to the Brazilian pre-salt are:

•   Seven “Espadon 200” drillships to be built by Estaleiro Atlântico Sul in Ipojuca, northeast Brazil, will be supplied with electrical power generation, propulsion, drilling drives, DP and control systems from GE;
•   Ecovix-Engevix will use integrated electric power and propulsion, drilling drives, DP and controls packages from GE for three new GustoMSC PRD 12000 ultra-deepwater drillships it’s building in Rio Grande, in the south of the country;
•   Enseada do Paraguaçu shipyard will use a comprehensively integrated package of electric power, propulsion, drilling drives, DP and control systems from GE for the six new ultra-deepwater drillships (also GustoMSC PRD 12000 design) it is building in Maragogipe, northeast Brazil; and
•   Keppel Offshore & Marine will use GE’s thruster power, propulsion and drilling drive technology for six new semisubmersibles being built for Petrobras.

Separately, GE has announced it will build a new Global Research Center in Oklahoma, dedicated to driving innovation and technological advancements in the oil and gas sector and bringing products to market faster.
The new facility, which is GE Research’s first sector-specific center, represents a $110 million investment by the company and will initially result in the creation of 125 high-tech engineering jobs, in disciplines ranging from mechanical and electrical to systems and software engineering.

OMK’s new pipe plant in Houston is expected to reach capacity by July. First pipe was produced in late 2012.

OMK pipe plant opens in Houston, full capacity by July

United Metallurgical Company (OMK) has opened a pipe plant in Houston, with first pipe produced in December 2012. The plant is forecast to reach its full capacity by July 2013. The mill was designed to produce about 200,000 tons/year of oil and gas pipes with 2 3/8-in. to 7-in. OD and up to 0.5-in. wall. The mill represents an investment of more than US $100 million.

TAM International leases shop in Kurdistan region of Iraq

TAM International has leased a new shop in Erbil, Iraq, for drilling, completions and workover tools and services. The new location opened its doors on 6 March to serve the growing number of oil and gas companies interested in the Kurdistan region of Iraq.

“The Kurdish oilfield market is consistently expanding, offering significant growth opportunities for our company,” said Patrick Scharf, Erbil operations supervisor for TAM International.

AXON Tubular Products acquires RFID technology

Through its subsidiary AXON Tubular Products, AXON Energy Products recently closed on an agreement to acquire the radio frequency identification (RFID) technology and assets of Merrick Systems.

AETI to provide power, control systems for 2 platforms

Drillmec has selected American Electric Technologies (AETI) to provide turnkey power and control systems for two offshore drilling platforms in the Gulf of Mexico. Drillmec has the construction contract from Mexican drilling contractor PEMSA.

James Justiss III earned an associate degree in petroleum technology and a BS in geology from Louisiana Tech University.

Justiss Oil names James Justiss III as president

James Justiss III was recently named president of Justiss Oil Company. He has served as VP of operations since 1995 and serves on the boards of IADC and the Louisiana Oil and Gas Association. He graduated from Louisiana Tech University.

PRODUCTS

BOP, hydrostatic test unit models enable backup, simultaneous testing

Clover dual Model CTU-20P-D2-4

Clover Tool offers a variety of BOP hydrostatic test unit models for BOP, hose, manifold valve system and riser line hydrostatic testing. The electric, stainless steel test units are explosion-proof and customizable.

The Clover dual Model CTU-20P-D2-4 offers triple hydrostatic test capabilities up to 30,000 psi. During critical operations, one side can be used as an immediate backup. When operating in tandem as a single station, it can cut BOP fill/test time in half. Operating independently, integral twin recorders allow separate tests simultaneously at different psi.

A more economical 15,000-psi single test unit, Model CTU-15P-S1, is also available.

More than 150 Clover hydrostatic test units are operating in BOP test applications worldwide with no failures over the past 12 years.

Coiled-tubing pipe inspection system minimizes NPT

Schlumberger has launched its CoilScan real-time coiled-tubing (CT) pipe inspection system. It minimizes nonproductive time by providing real-time pipe inspection during intervention operations to identify CT pipe defects prior to entry into the wellbore.

The CoilScan system uses real-time pipe dimensions to update the CT fatigue life and the CT working envelope in the manufacturing facility or in the field. The system provides a complete view of what is happening with CT pipe at all times, enabling customers to consider all aspects of pipe management and act accordingly to mitigate failures. It has been field-tested in onshore and offshore environments, including the US, Saudi Arabia, the UAE, Malaysia and Germany.

Schlumberger also recently launched the Quartet-HT system. Click here to watch an exclusive video.

Scientific Drilling launches new mud pulse MWD system

Scientific Drilling International (SDI) announced the launch of its next-generation mud pulse MWD system. The FALCON MWD offers superior reliability, precision wellbore placement, higher durability, deeper reach and safer operations while allowing for faster drilling.

Overall features of the new MWD system include:

•   Bi-directional mud pulse telemetry;
•   Positive pulse (3 to 5 bits/sec);
•   Full accelerometer and drilling dynamic package;
•   Rugged thread mount throughout;
•   Surface equipment and software upgrades;
•   BHA sizes from 3 ½ in. to 9 ½ in.; and
•   Flow rates from 50 gal/min to 1,500 gal/min.

The FALCON MWD also includes a new high-speed telemetry mode and leverages SDI’s True Utilization Factor, a preventative maintenance process combining key environmental measurements collected while drilling.

Honghua America unveils new triplex mud pump

Honghua America has developed a triplex mud pump that is directly driven by an electromotor and replaces belt or chain configurations. The compact design reduces maintenance work, increases the service life of the pump and reduces noise emission and vibration. The triplex direct drive mud pump is powered by a special top-mounted AC motor.

Emergency egress product enhances worker safety

RIDE has created a safe means of emergency egress with an engineered design that incorporates the worker’s overhead fall arrest and his tieback lanyard into the egress unit. In an emergency, the derrickman is not required to disconnect from the overhead fall arrest or the working lanyard before leaving the derrick.

Technology is our industry’s defibrillator. Without it, we would have shared the same calamitous demise that befell blacksmiths and buggy makers. Unable to pursue any but the lowest-hanging fruit, we’d end up beating our rigs into plowshares.

Instead, thanks to our determination to drill the undrillable, we develop prospects in miles-deep water. We flipped conventional wisdom on its head and transformed the USA from a long-standing addiction to imported oil to a nation on the cusp of energy independence.

But technology demands competence in a number of interesting ways. First, the newfangled tools and rigs bursting on the stage of well development demand trained, sophisticated workers (apologies to Bubba and Boudreaux).

Second, the prospects, onshore and off, that technology has opened demand vast new rig fleets, so far largely unpeopled. Staff must be brought in and brought up to speed – pronto.

The means to ratchet up training processes resonates in all sectors of our industry. Here, our business needs align with regulatory and HSE requirements.

IADC is in the thick of the action. In late February, we posted an hour-long webinar on competency. (The webinar will remain online until the end of May.)

Sponsored by Lloyd’s Register and titled “What is Competence and how can it help your organization?”, the event featured three experts – Malcolm Duncan, Lloyd’s Register competency manager; John Tustin, Petrofac operations director of competence solutions; and Dr Brenda Kelly, IADC senior director of program development.

“Competence is a very large and complex topic,” remarked moderator Mark Denkowski, IADC vice president-accreditation and credentialing.

The thrust of the event was to define competence and the “language of competency”; outline details of employee assessment; highlight designing and implementing a competence program; and discuss helpful tools offered by IADC.

Like most complex concepts, one can endlessly define and refine the idea. Mr Tustin, however, presented an elegant and comprehensive definition: the ability to consistently perform a given task to a pre-determined standard.

Being competent is a blend of experience, skills, knowledge and understanding, and attitude, he said.

Experience, for instance, is a key ingredient. But that is not necessarily equivalent to tenure.

“I have been in this profession for 30 years,” Mr Tustin said, “but I could be less competent than Malcolm (Duncan), who has been in the profession for five years. It’s not about length of time.”

Typically, competency programs are framed around HSSE, quality, drilling operations, marine operations, maintenance, and specifics on assets or equipment.

Competency assessment is a step-wise procedure, explained Mr Duncan. Begin by planning and ensure the candidate is aware of the pending assessment. He or she must be informed regarding how his or her knowledge and skills will be judged. Assessment is not intended to be a “gotcha” effort. To the contrary, one of the major goals is building the employee’s self-confidence and identifying opportunities for coaching and training.

Next, conduct the assessment, following methodologies available from standards promulgated by ISO, API, OHSAS, and SEMS. Mr Duncan particularly recommends ISO 10667.

Then, interpret the results to weigh the individual’s competency. Last, provide feedback and evaluate the assessment.

Building your system

As in so many corporate pursuits, top-down commitment, from the boardroom to the rig floor, is critical in implementing a competence system. “It’s an essential beginning point of developing a competence program,” said Dr Kelly.

Other vital components are policies expressing commitment to a competence program; identifying responsibilities of people with key roles in the program; resources, including staff; administration processes; and quality assurance.

IADC offers a pile of resources to assist, such as our Competency Assurance Accreditation Program. IADC ensures that all components are in place and conducts a site visit.

Further, IADC is developing competency benchmarks for all rig positions. These KSAs are discussed in detail on p138.

Thanks to technology and smart competency programs, we can anticipate a sustainable future and well-trained personnel. Blacksmiths, eat your heart out.

Click here to register for IADC’s Competency webinar.

Click here to check out IADC’s competency tools.

Halliburton, Apache Corp and Caterpillar have developed dual-fuel technology to safely and efficiently power the pumping equipment used for fracturing treatments with a mixture of natural gas and diesel. With 12 pumps (24,000 hp), it is one of the largest dual-fuel projects in the industry.

G. Steven Farris, chairman and CEO of Apache and chairman of America’s Natural Gas Alliance (ANGA), encouraged Apache and the industry to increase the use of natural gas as a fuel for engines. In response, Halliburton developed a technical solution for converting the pumping equipment used at a typical large-scale fracturing spread to a dual-fuel system that includes natural gas.

Halliburton and Caterpillar teamed up to convert new Q-10 pumps to dual fuel with a technology that would accommodate high-quality liquefied or compressed natural gas. Caterpillar adapted its proprietary Dynamic Gas Blending engine technology to power Halliburton’s pumps.

Separately, Halliburton was selected by Statoil to provide multilateral technology (MLT) for two mature fields offshore Norway. The three-year frame agreement includes two optional periods of two years each and has an estimated value of more than $200 million.

The FlexRite Multibranch Inflow Control junction and the FlexRite Intelligent Completion Interface junction, of which Statoil has installed approximately 150, will form the basis of this frame agreement.  Together, these sealed junction MLT systems enable flow control capability of all laterals in multiple legged MLT wells.

ONGC sets drilling record offshore India

ONGC has set the record for drilling a well in the deepest water by an offshore drilling rig with Transocean’s ultra-deepwater drillship Dhirubhai Deepwater KG1. The rig spudded well NA7-1 in exploratory block KG-DWN-2004/1 on the east coast of India in a water depth of 3,165 meters (10,385 ft) on 23 January.

The rig then lowered and latched a subsea BOP and riser on the wellhead on 9 February to drill to TD of 5,625 meters (18,455 ft). The rig has surpassed Transocean’s prior record of 3,107 meters (10,194 ft) of water depth, set in 2011 by Dhirubhai Deepwater KG2 working for Reliance Industries on the east coast of India.

Newpark reached a production milestone with its 250,000th DURA-BASE Advanced-Composite Mat, which can withstand bearing loads in excess of 600 lb/sq in.

Milestone reached in production of protective mats

Newpark Mats and Integrated Services recently reached a production milestone with the 250,000th DURA-BASE Advanced-Composite Mat. The mats are produced from a non-slip advanced-composite formulation that withstands bearing loads in excess of 600 lb/sq in.

The production milestone also marked the preservation of over 1 million trees (or approximately 1.25 million wooden mats), along with savings in transportation costs and emissions.

The mats provide ground stabilization that minimizes the need for aggregate or gravel and enhances worker safety while preventing soil disturbance and road dust. They are designed as a single piece, with no individual parts requiring bolts or fasteners to hold them in place. The one-piece system prevents spills from being absorbed into the mats and aids in preventing spills from contaminating ground soil.

Maersk Drilling, BP to develop HPHT drilling technology for Project 20K

Maersk Drilling and BP have signed an agreement to develop conceptual engineering designs for a breed of advanced offshore drilling rigs, critical to unlocking the next frontier of deepwater resources.

BP and Maersk Drilling will collaborate on rigs that can operate in high-pressure and high-temperature reservoirs up to 20,000 psi and 350°F. The agreement is part of BP’s Project 20K, a multi-year initiative to develop next-generation systems and tools for deepwater exploration and production that are beyond the reach of today’s technology.

GE to provide HPHT technologies offshore India

Marking its entry into India’s high-pressure, high-temperature (HPHT) drilling sector, GE’s pressure control business has received contracts to supply technology for a new well to be drilled in Cairn India’s Ravva block off the east coast of India.

Separately, GE recently received a contract to supply four complete, variable frequency drive, high-speed electric motor and centrifugal compressor packages for Total E&P Norge’s new offshore production platform on the Martin Linge oil and gas field. The area is located 150 km off the coast of Norway in the North Sea, and production is scheduled to start in 2016.

Archer will carry out a plugging and abandonment contract with Statoil using the Archer Topaz modular rig in the Norwegian North Sea beginning in 2014. The rig has been designed and will be built in collaboration with Max Streicher.

Statoil to use modular Archer rig to plug, abandon Heimdal gas wells

Statoil will use the new Archer Topaz modular rig for the permanent plugging and abandonment of 12 gas wells on the Heimdal field in the Norwegian North Sea. The rig, which will be built with Max Streicher GMBH in line with current NORSOK regulations, will be operated by Statoil with partners TOTAL, Centrica and Petoro.

Carrying out plugging and abandonment operations on a modular rig is a first for Archer and the industry, the company believes.

The total contract value, including the startup, operating and decommissioning phases, is estimated at US $115 million. Operations are expected to commence in the second half of 2014, and the contract duration is 34 months, with four option periods of three months each.

“The award of this contract demonstrates the attractiveness of our modular rig concept, which combines flexibility, efficiency, short rig-up and rig-down time, making it a unique proposition for our customers both for plug and abandonment services and production drilling from fixed offshore platforms,” Kjetil Bjørnson, president and general manager of North Sea region, Archer, said.

The new rig will follow the design of Archer’s first modular rig, the Archer Emerald, which has been operating for Shell Todd in New Zealand on a production drilling contract since 2012.

Baker Hughes’ X-Treme Clean XP casing scraper was used to remove mud or cement sheath from the interior walls of casing in a Gulf of Mexico well.

Cleanup system mills 207 ft of cement,  removes 500 lbs of debris in deviated well

An operator in the Gulf of Mexico had a highly deviated (78°) and deep (30,200 ft or 9,205 meter) measurement-while-drilling (MWD)  well that needed cement milling, casing cleaning, fluid displacement and blowout preventer (BOP) cleaning. The depth and deviation of the well presented an initial challenge for sufficient cleaning. Additionally, the well had been previously displaced to completion fluid.

Baker Hughes deployed a suite of wellbore cleanup tools, mostly made up of the X-Treme Clean XP system. The customer’s workstring consisted of 4-in. and 5-in. drill pipe with high-torque XT connections.

For the milling operation, the X-Treme Clean XP system was run to a depth of 29,993 ft (9,142 meters), where the top of cement was tagged. The system then milled 207 ft (63 meters) of cement at an average of 9.4 ft/hr (2.8 meters/hr), reaching a final depth of 30,200 ft within 28 hrs. During the milling operation, three 70-bbl high-viscosity sweeps were pumped to aid debris removal.

The BOP jet sub was run to a depth of 85 ft (926 m) and made six passes through the stack. A total of 500 lbs (227 kg) of debris was removed by the filters and magnets.

Eni Norge to develop first Barents Sea oilfield, contracts for pre-laid mooring spreads

Eni Norge has contracted IOS InterMoor to provide two complete mooring spreads for development drilling in the Goliat oilfield in the Barents Sea, offshore Norway. “Goliat field is the first oilfield to be developed in the Barents Sea,” David Smith, IOS InterMoor managing director, said.

Recoverable reserves for the Goliat oilfield are estimated at 174 million bbls, and production is expected to plateau at 100,000 bbl/day.

IOS InterMoor will provide two complete moorings spreads for pre-laying in the three-year contract period. This method provides enhanced safety and integrity, as well as significant cost savings, particularly in rig moves, as it eliminates the downtime a rig spends not drilling. The reservoir drainage strategy will include water and gas injection, employing a total of eight well templates with 22 wells.

Keppel FELS has delivered the UMW Naga 4 jackup to UMW Oil & Gas five days ahead of schedule in February, on budget and with a perfect safety record.

UMW Naga 4, built to Keppel’s proprietary KFELS B Class design, is able to operate in water depths of up to 400 ft with a drilling depth of 30,000 ft. It is the fourth consecutive rig that Keppel FELS has delivered ahead of schedule this year. The company is expected to deliver 20 offshore rigs in 2013, a record number for any yard worldwide.

Vision Drilling, a subsidiary of Cyprus-based Dynamic Offshore Drilling, received the first of 20 rigs, also a KFELS B Class jackup, two months ahead of time in January.

Frigstad Deepwater has awarded CIMC Raffles a contract for the delivery of two ultra-deepwater semisubmersibles.

Frigstad confirms order of 2 ultra-deepwater rigs

Subsidiaries of Frigstad Deepwater have entered into construction contracts for the delivery of two ultra-deepwater semisubmersibles from CIMC Raffles in Yantai, China, with options for four more units.

The drilling units, deemed to be seventh-generation rigs, are of the Frigstad D90 design and will be capable of operating in water depths up to 12,000 ft and drilling to a TD of 50,000 ft. The units will be outfitted with a DP3 dynamic positioning system, full dual-activity hydraulic drilling package with 1,400 ST hoisting capacity and seven-ram BOPs.

The two drilling units are scheduled for delivery at the end of Q4 2015 and Q2 2016. The total project cost is approximately US $1.3 billion, exclusive of financing costs.

Central GOM lease sale to offer 38.6 million acres

Central Gulf of Mexico Lease Sale 227 will offer 38.6 million acres offshore Louisiana, Mississippi and Alabama for oil and gas exploration and development, announced US Secretary of the Interior Ken Salazar and US Bureau of Ocean Energy Management (BOEM) director Tommy P. Beaudreau. BOEM estimates the lease sale could result in the production of 0.46 billion to 0.89 billion bbls of oil and 1.9 Tcf to 3.9 Tcf of natural gas.

The lease sale encompasses 7,299 blocks located from three miles to 230 miles offshore, in water depths ranging from 9 ft to more than 11,115 ft (3 meters to 3,400 meters).

The sale, which will be held on 20 March at the Mercedes-Benz Superdome in New Orleans, includes all unleased areas in the Central Gulf of Mexico Planning Area.

Greatdrill Chaaya delivered, to work for ONGC

Greatship Global Energy Services, a Singapore subsidiary of Greatship (India) Ltd (GIL), has taken delivery of the Greatdrill Chaaya jackup from Lamprell Energy.

Greatdrill Chaaya is an independent leg-cantilever jackup with 15,000-psi rating, designed to operate in water depths of up to 350 ft. The jackup is contracted to ONGC for five years and will operate on the west coast of India.

With the delivery of Greatdrill Chaaya, GIL and its subsidiaries currently own and operate three jackups.

Apache, Chevron to partner on Kitimat LNG project

Apache Canada has completed a transaction with Chevron Canada to build and operate the Kitimat LNG project and develop natural gas resources at the Liard and Horn River basins in British Columbia, Canada.

Each company is 50% owner of the Kitimat LNG plant, the Pacific Trail Pipelines and 644,000 gross undeveloped acres in the Horn River and Liard basins. After a brief transition period, Chevron Canada will assume operatorship of the LNG plant and the pipeline. Apache Canada increased its ownership in the LNG plant and pipeline from 40% and will operate the upstream assets. Apache’s net proceeds from the transaction were $405 million.

Liard and Horn River are two of the most prolific shale gas plays in North America, with more than 50 Tcf of resource potential on the Apache-Chevron acreage.

Eni makes oil discovery in Western Desert of Egypt

Eni recently made a new oil discovery from the NFW well, Rosa North 1X, located in the Meleiha Concession in the Western Desert of Egypt. The well encountered a total oil pay of approximately 80 meters in multiple good-quality sandstones of the Bahariya, Alam El Bueib, Khatatba and Ras Qattara reservoirs and has been successfully tested in the reservoirs flowing a 43° to 48° API oil at very good rates.

The discovery will likely lead to the drilling of at least two development wells in 2013. Production for each well is estimated at 2,000 bbls of oil/day.

Separately, Eni and Sonatrach have started gas production from the Menzel Ledjmet East field in Block 405b, approximately 1,000 km from Algiers. A plant, located in the field, allows for the treatment of rich gas for the daily production and sale of 9 million cu meters of gas, 15,000 bbls of oil and condensate, and 12,000 bbls of liquefied petroleum gas.

Chevron finds gas again in Australia’s prolific Carnarvon Basin

Chevron’s Australian subsidiary has made the 20th discovery off the Western Australian coast since mid-2009 following further drilling success in the Exmouth Plateau area, located in the prolific Carnarvon Basin.

The Kentish Knock South-1 exploration discovery well encountered approximately 246 ft (75 meters) of net gas pay in the upper Mungaroo Sands. The well is located in the WA-365-P permit area approximately 173 miles (280 km) north of Exmouth off the Western Australian coast.

The well was drilled in 3,832 ft (1,168 meters) of water to a total depth of 10,056 ft (3,065 meters).

“The Asia Pacific region is key to Chevron’s growth strategy, and our strong Australia natural gas portfolio continues to be bolstered by our strategic approach to finding and developing resources that will help meet the growing energy needs in the region,” said George Kirkland, Chevron vice chairman.

Chevron Australia is the operator of WA-365-P with 50% interest while Shell Development (Australia) holds the other 50%.

Vantage Drilling’s Tungsten Explorer drillship has received a conditional Letter of Award for work offshore West Africa, to commence in mid-2014

Vantage receives Letter of Award for drillship

Vantage Drilling has received a conditional Letter of Award for its newbuild drillship Tungsten Explorer to work in West Africa. The award is for a period of up to four years, commencing in mid-2014. The contract has a minimum duration of two years, and the customer has four six-month options to extend the contract.

The letter of award is subject to customary conditions, including negotiating the final terms of the contract, which is anticipated to be completed in Q1 2013. The estimated revenue over the initial two-year firm period of the contract is approximately US $468 million, including mobilization.

“Since the Tungsten Explorer is scheduled for delivery in May 2013, we expect to obtain additional work for the unit to commence upon delivery from the shipyard. We are currently discussing drilling requirements for the second half of 2013 and early 2014 with both affiliates of the counterparty to this contract, as well as several others customers,” Paul A. Bragg, chairman and CEO of Vantage, said.

Petrobras makes oil discovery in Santos Basin pre-salt 

Petrobras has discovered oil in the Santos Basin pre-salt area, known informally as Florim, following the drilling of a sixth well since the Rights Transfer Agreement was signed.

The well, 1-BRSA-1116-RJS (1-RJS-704), is located at a water depth of 6,591 ft (2,009 meters), 128 miles (206 km) off the coast of Rio de Janeiro state, and the presence of good quality oil (29º API) has been confirmed in carbonate reservoirs of excellent quality just below the salt layer.

Drilling has reached a depth of 18,038 ft (5,498 meters) and will continue down as far as the depth specified in the Rights Transfer Agreement of around 2,013 ft (6,100 meters).

Seadrill orders two jackups for 2015 delivery

Seadrill has entered into an agreement for the construction of two high-specification jackups with Dalian Shipbuilding Industry Offshore in China. The units are scheduled for delivery in Q1 and Q2 2015, and the estimated total project price is approximately US $230 million per rig, including project management, capitalized interest, drilling and handling tools, spares and operation preparations.

The two new units will be based on the F&G JU2000E design, with water depth capacity of 400 ft and drilling depth capacity of 30,000 ft. The new jackups are of the same design as four other jackups that Seadrill has under construction at Dalian and Jurong in Singapore.

Mubadala Petroleum hires Atwood Orca newbuild

Atwood Oceanics has been awarded a drilling services contract for the Atwood Orca by Mubadala Petroleum. The Atwood Orca, currently under construction at PPL Shipyard in Singapore, will have a rated water depth of 400 ft, 1.5 million-lb hookload capacity, accommodation for 150 personnel and significant offline handling capabilities. The agreement is for a firm duration of two years.

The Atwood Orca is expected to be delivered in early May 2013, ahead of its scheduled June delivery. It will mobilize for a period of approximately 10 days to its first location offshore Thailand.

Mike Hoyle (left) accepts an IADC Exemplary Service Award from IADC president and CEO Stephen Colville.

Mike Hoyle receives IADC Exemplary Service Award

IADC presented Mike Hoyle, head of advanced engineering in GL Noble Denton’s UK marine and offshore operation, with an Exemplary Service Award at the 2013 IADC Health, Safety, Environment and Training Conference & Exhibition in Houston on 5 February.

Mr Hoyle was recognized for his substantial contributions to the ISO standards for site-specific assessment of mobile offshore units.

In presenting the award to Mr Hoyle, Stephen Colville, IADC president and CEO, said, “While it has been a group effort, the publication of the ISO would not have taken place without Mike’s personal leadership, persistence and dogged determination. It is for this individual contribution that he is being recognized.”

Upon accepting the award, Mr Hoyle noted, “This award is a reflection of all of the members of the committee, as well as my own contributions. I’m grateful and thankful to IADC for recognizing this important work.”

Mr Hoyle is also chairman of GL Noble Denton’s Technical Policy Board.

He has more than 35 years of experience in the offshore industry and is widely recognized for his expertise in jackup assessment.

Since its inception, Mr Hoyle has been convener of the International Standards Organization Work Group covering the Site Specific Assessment of Mobile Offshore Units that developed ISO 19905-1 in 2012 and ISO 19905-2, which will soon be published.

On behalf of the IADC Jackup Rig Committee, David Lewis (left) of Lewis Engineering Group accepts the award from the association’s president and CEO Stephen Colville in Houston on 5 February.

IADC Presidential Achievement Award recognizes work of Jackup Rig Committee

The IADC Jackup Committee was presented with the IADC Presidential Achievement Award at the 2013 IADC Health, Safety, Environment and Training Conference & Exhibition in Houston on 5 February.

The committee was recognized for its contribution to the ISO standards for site-specific assessment of mobile offshore units.

In accepting the award on behalf of the committee, David Lewis, president of Lewis Engineering Group and committee secretary, said, “This award represents a lot of hard work by some really dedicated engineers and managers in the Jackup Committee. I am happy that their work is being recognized.

“On a personal level, being associated with members of this committee has been one of the best experiences of my career,” he continued.

The committee, formed in 1997 and currently chaired by Michael Dowdy of Rowan, will be folded into the newly established Offshore Committee this year.

IADC’s Tom Terrell, senior VP corporate development and chief of staff, retires

Tom Terrell, IADC senior vice president of corporate development & chief of staff, retired on 28 February.

Mr Terrell joined IADC in 2005 as senior vice president of business development, bringing with him a wealth of oil and gas industry experience that spans more than 50 years.

Prior to joining IADC, he spent 15 years as publisher of Oil and Gas Journal. His experience includes work in publishing, marketing and business experience with oil companies and service companies.

“I’ve been very familiar with every other not-for-profit oil and gas industry association during my career,” Mr Terrell said. “IADC is head and shoulders above the rest.”

Stephen Colville, IADC president and CEO, noted, “Tom has been my rock over the past year, as he has been to the association for the past eight years. I have leaned heavily upon him, and he has been a great teacher and counselor. He shall be very missed at IADC.”

Upon his retirement, Mr Terrell has plans to spend time with his children and grandchildren and indulge his love of bird hunting.

Jason McFarland will assume the role of vice president – corporate development and chief of staff and retain his membership and marketing roles for IADC.

Well Servicing Committee seeks active new members

The IADC Well Servicing Committee is seeking volunteers who can contribute to reenergizing its operations.

Recognizing the importance of well servicing operations, IADC established the committee in 2011 to provide a space for members to discuss issues including fracturing, wirelines, snubbing, coiled tubing and salt water disposal.

“We invite all IADC members whose operations fall under the well-servicing umbrella, regardless of size, to join our quarterly meetings,” committee chairman Roe Patterson, Basic Energy, remarked.

The group plans to develop quality initiatives, including training programs, workshops, conferences and the review, revision and/or submission of industry recommended practices to regulatory bodies.

At the 13 February meeting, the committee discussed the introduction of a  safety alert program and an incident statistics program for well services. Committee members also acknowledged the need to develop Knowledge, Skills and Abilities templates for the well servicing industry and agreed to review the current IADC Rig Pass program to determine if a well services component is necessary.

For details about how you can participate, contact Scott Maddox, IADC director – drilling and well services, at scott.maddox@iadc.org.

IADC to expand regional representatives network

IADC is working to expand its network of regional representative to better address the needs of its members in operating areas around the world.

New regional representatives are being recruited for Brazil, Continental Europe and the North Sea.

IADC’s network of regional reps provides focal points through all operating regions to serve as conduits for information about the association’s various initiatives, activities and programs.

Regional reps are presently stationed in Europe, the Middle East and Africa, Asia and Australasia.

New regional representatives are expected to be in place by mid-year.

Permian Basin Chapter elects 2013 officers

The IADC Permian Basin Chapter held its first meeting of 2013 on 12 February at the Midland Golf Club in Texas.

In his keynote address, IADC president and CEO Stephen Colville reiterated the association’s support for US onshore contractors. Chapter officers for 2013 were also elected at the meeting:

Chairman: Jared Blong, Western Drilling;

Vice chairman: Paul Norman, JB Hunt;

Safety chairman: Dustin Brown, Savanna Drilling;

Membership/program chairman: Bob Cobb, Latshaw Drilling;

Secretary: Bill Stark, Ulterra Drilling Technologies;

Treasurer: Tamara Alan, Bridges Equipment; and

Golf tournament chairman: Mike Bridges, Bridges Equipment.

Elfriede Neidert named director of IADC Quality Assurance & Quality Control Division

Elfriede Neidert has been named director of IADC’s Quality Assurance & Quality Control (QA/QC) Division. The move is the latest of several important changes within the IADC Operational Integrity Group.

The QA/QC function was separated from the Accreditation and Credentialing Division (ACD), although it will continue to be primarily involved in the oversight of training providers accredited by ACD and ACD’s ISO 9001 certification.

Separating QA/QC from ACD’s day-to-day operations will strengthen the new department’s independence and autonomy. The new structure is vital to maintaining the credibility of IADC’s various accreditation programs.

“The new name and structure of the Operational Integrity Group is designed to highlight the roles these divisions play in helping our members improve their performance and ensuring the proper qualifications and competency of their employees,” said Steve Kropla, IADC group vice president – operational integrity.

Liou, Scott promoted to associate editor

Joanne Liou and Katherine Scott were recently promoted to associate editor in IADC’s Communications Department.

Ms Liou and Ms Scott are responsible for writing, producing and editing content for Drilling Contractor magazine, its affiliated publications and website. Both joined IADC in 2011 as editorial coordinators.

“In their nearly two years at IADC, both Joanne and Katherine have contributed significantly to the quality of IADC communications,” said Mike Killalea, IADC group vice president/publisher.

Ms Liou can be reached at joanne.liou@iadc.org and Ms Scott at katherine.scott@iadc.org.

Aker Solutions’ Tranby manufacturing center, located in Norway, will supply the subsea production system for Statoil’s Aasta Hansteen project.

Statoil to use Aker subsea system on Aasta Hansteen

Aker Solutions has signed a contract with Statoil for the supply of a subsea production system for the Aasta Hansteen field development project on the Norwegian Continental Shelf. The contract is valued at approximately NOK 2 billion.

Work will include three template-manifold structures, seven subsea trees, in addition to wellheads, controls, workover and tie-in systems.

“Aker Solutions is dedicated to supporting Statoil in optimizing their assets and maximizing production rates and gas recovery at Aasta Hansteen,” Alan Brunnen, head of Aker Solutions’ subsea business, said.

TAM International expands offerings in Permian Basin

TAM International has opened a new district office and shop in Midland, Texas. The new office is the latest in a series of recent growth and expansion efforts to support rapid growth markets like the Permian Basin.

Vallourec pursues long-term collaboration with Petrobras

Vallourec’s Brazilian subsidiary V&M do BRASIL and Petrobras have signed a five-year-contract to supply Petrobras operations with premium OCTG products, including seamless pipes, steel grades and connections using state-of-the art technology.

Transocean, Oceaneering ink deal on BOP control systems 

To comply with the recently issued API 53, a Transocean subsidiary has signed a contract with Oceaneering International to add subsea blowout preventer (BOP) control systems to three existing semisubmersibles. API 53 requires subsea BOPs with a single shear ram to be upgraded or replaced. Deliveries are expected in Q4 2013 and Q1 2014.

Aquatech awarded water treatment facility permit

Aquatech has been granted a permit to operate a central treatment facility in Tioga County, Pa. The facility will deliver wastewater treatment and recycle services to the regional shale gas
producers.

Weatherford, Variable Bore Rams team up in Asia Pacific

Variable Bore Rams has entered into an agreement with Weatherford Asia Pacific to provide BOP rams. Equipment stocking began in February. The range of stock will include rams of multiple sizes in varying categories.

Craighead to assume role as Baker Hughes chairman

Baker Hughes chairman Chad Deaton will retire on 25 April 2013 at the company’s annual meeting. Martin Craighead will become chairman, in addition to his current role as president and CEO. Mr Craighead began working with the company in 1986 and has served as president and CEO since January 2012.

Independence Contract Drilling appoints Ed Jacob as COO, executive VP

Independence Contract Drilling has appointed Ed Jacob III as executive vice president and COO.

Mr Jacob most recently served as president and CEO of Keen Energy until its sale in late 2012 to Latshaw Drilling.

“I have known and worked with Ed for years and cannot think of another leader so uniquely qualified to add immediate value to our team,” Byron Dunn, president and CEO of Independence, said.

Orion Drilling promotes Calvert Jones to COO

Orion Drilling has promoted  Calvert Jones to COO. Mr Calvert joined Orion in 2008 as a senior drilling engineer and became vice president of operations in 2009. Prior to joining Orion, Mr Jones served as a senior drilling engineer at EOG Resources.

Mark Vance joins Murchison Drilling Schools

Murchison Drilling Schools has hired Mark Vance as an instructor. He began his career in 1978, working for Keydril as a roustabout, roughneck, derrickman, driller, toolpusher and superintendent. Mr Vance is an accredited IADC and IWCF instructor and will teach well control and drilling operations courses.

Statoil awards DSME contract for Dagny topsides

Statoil and its partners TOTAL and Det Norske have awarded Daewoo Shipbuilding & Marine Engineering (DSME) a contract to build the topsides for the Dagny platform, with Aker Solutions as a major subcontractor. The total contract value is estimated to NOK 6.1 billion.

Aker Solutions in Stavanger and Oslo, Norway, and Kuala Lumpur, Malaysia, will be close partners in the detailed engineering services and offshore hook-up and commissioning.

“We feel confident that the supplier we have chosen for the main contract can deliver on time, cost and quality,” said Jon Arnt Jacobsen, Statoil’s chief procurement officer. “We’re putting strong emphasis on avoiding late changes to the design and experienced Statoil personnel will follow up the deliveries in all phases. We’re also drawing on experience.”

The assignment will begin immediately and is expected to be completed in Q1 2017.

“Dagny is one of Statoil’s new major developments, with an estimated 225 million barrels of oil equivalent,” said Ivar Aasheim, SVP for field development on the Norwegian continental shelf. “This shows how important it is to explore and develop fields in mature areas with infrastructure in place. This field development is tied to Sleipner and will help to extend its lifetime for many years to come.”

Investments in the Dagny development are estimated at NOK 31 billion.

Maersk Drilling was awarded the contract for production drilling on Dagny in 2012.

NanoSteel names Harald Lemke VP, general manager

Harald Lemke has joined NanoSteel as vice president and general manager of powder metallurgy.

Mr Lemke will lead the commercialization of NanoSteel’s alloys into the powder metallurgy industry, utilizing both the recent breakthrough in advanced high-strength steel and the company’s established coatings product.

Mr Lemke was most recently global vice president of materials marketing at coatings division of Sulzer-Metco.

DPS Offshore is now Forum Subsea Rentals

Forum Energy Technologies is rebranding its DPS Offshore product line as Forum Subsea Rentals. Forum Subsea Rentals will service existing and new clients from key locations in Aberdeen, Great Yarmouth, Houston, Dubai and Singapore.

Wild Well Control receives ISO 9001:2008 certification

Wild Well Control has been certified to ISO 9001:2008 Quality Management Systems. The certification is for worldwide emergency response for well control and containment; non-emergency services for well control engineering, training, incident prevention; and well-related marine/subsea intervention and decommissioning services.

PRODUCTS

IDE’s second-generation Centurion Drilling Control system has been installed on a Sparta rig for Lewis Energy.

IDE offers open-platform drilling control system

Integrated Drilling Equipment (IDE), has launched the second-generation Centurion Drilling Control System. The system was installed on a new, 1,500-hp AC Sparta rig delivered for Lewis Energy.

Developed by IDE’s Automation and Controls Division, the system employs cutting-edge technologies, including an open-architecture software platform to put real-time information and control in the hands of the drilling contractor, operator and service companies.

Open architecture is a software interface type that allows for the adding, swapping and upgrading of controls. Using this type of platform enables service companies to employ specialized applications for control of the autodriller and pressure control aspects of rigs.

The system does not utilize proprietary networks or software. Subsequently, customers may spearhead troubleshooting and the integration of customized features while still having access to IDE’s 24-hr technical support.

“IDE has taken a forward-thinking approach to the automation and controls sector of the industry,” IDE CEO Steve Cope said. “Allowing for a specialization of the software used with the Centurion system means that our customers do not have to use valuable time learning another interface. Additionally, information can be accessed onsite and offsite via the Internet using a personal computer, smartphone or tablet PC.”

The Lewis Rig 38 Centurion package will be loaded with all available options.

Capital Safety upgrades automated i-Safe 3.0 line

Capital Safety introduces two new additions to its i-Safe 3.0 Intelligent Safety System global product line – the Unitech PA690 Handheld Unit and the MX5 USB Reader for Desktop Application. The highly advanced, automated i-Safe 3.0 makes managing a safety inspection program faster, easier and more cost effective.

Preferred Sands launches technology for proppants

Preferred Sands has launched the first non-phenolic, resin-coating technology for proppants used in hydraulic fracturing. The technology was developed with Dow Chemical Company.

John Beswick, director of PR Marriott Drilling, represents IADC on the OGP Gas Communications Task Force.

By Katherine Scott, associate editor

John Beswick, director of PR Marriott Drilling, grew up wanting to be a pilot. “I was always destined for a career in the Royal Air Force,” he said. “It was my eyesight that eventually stopped me from being a flyer.” But nothing would prevent Mr Beswick from finding his own success, which he defines as being open to change. “You have to get up and pick yourself up. I’m used to starting again and looking at things from various perspectives. I’m quite flexible.”

With his piloting dreams dashed, Mr Beswick instead earned a civil engineering degree from Loughborough University in England in 1963 and later a postgraduate degree in engineering geology from London’s Imperial College, after which he worked on various operations in civil engineering and geology, as well as in geothermal research, before finally making his way to Kenting, a Canadian drilling contractor, in 1986. Thus he began his work in oil and gas industry, where he has managed operations worldwide for the last 26 years.

In his current part-time role with UK-based Marriott Drilling, Mr Beswick is helping grow the company from a small family operation into a medium-size group. “I’m like a coach more than anything,” he said. “I’ve been trying to change the style, the way we operate, the quality and the health and safety culture to bring it up to a the highest standards of the industry. Marriott has now become a highly respected company with both domestic and international operations.” Mr Beswick had just retired in 2007 when he received a call from Marriott. “They had been trying to get me to join for a while, and I said, ‘When I retire and I’ve got nothing else on my desk, if you’re still interested, I might think about it.’ The day I retired, I got a call,” he recalled. “It’s been quite an interesting story in my twilight years as I was attracted to Marriott as it is different sort of company with a family tradition, strong values and ambition.”

As a member of the International Association of Oil and Gas Producers (OGP) Gas Communications Task Force in Brussels, Mr Beswick has been representing IADC with the group since April 2011. The task force, predominately made up of operators, compiles reports and disseminates material to the general public and European ministers as a way to tackle shale gas misinformation. Having been previously involved with IADC’s government affairs, Mr Beswick supplies an expertise that extends beyond drilling and said that there has been positive support for IADC’s place at the table. “We’re really trying to be responsible citizens,” he said.

While shale gas development is in its infancy in Europe, Mr Beswick noted that industry hopes are high in many countries, as long as they can get past the exploration phase. “Until we’ve actually drilled and fractured and produced gas, we can’t make any statements about how good it is, but overall, it has the potential to provide Europe with a good resource for many years. We just have to get over the politics.”

One problem, he said, lies in the way industry describes shale gas. “Why did we have to call this ‘unconventional’ gas?” he asked. “If the word ‘unconventional’ was left out of it, we wouldn’t have half the trouble. But, because we used this word, the general public thinks this is something new, like, ‘Ah ha! It’s radioactive waste.’” It’s up to the industry to disseminate the facts, he said. “We’ve got to change the hearts and minds of people to believe this is not a bad thing.”

Industry should also focus on attracting more young people and “giving them a wider experience,” Mr Beswick said. “A lot of people are coming up now that may be good at one thing, but they don’t have the broad general knowledge of the industry.” The best way to resolve this issue, he feels, is to share experience. “Sharing works both ways; the young people benefit from the ideas you might throw around and the older people keep up to date with the way the young think.” And the reward is indescribable, as Mr Beswick reflects that one of the best parts of his career in this industry is “looking back through the years and seeing you’ve helped a lot of young people.”

Likewise, it’s important to be a team player, he continued. He likens industry collaboration to football. “We have an international standard; the markings of the lines are the same, we have the same number of players, and every position has to do their bit,” he said. “It’s only when they work together every match that they succeed and become champions. And that’s the idea of being a team player.”

While Mr Beswick, who visited the White House in summer 1959 as a guest of the US Air Force, having been a member of the International Air Cadet Exchange, once had other career plans, he feels he ended up where he belongs. “I enjoy the technical side and the new challenges. There’s always an awful lot to do in this industry because we continue to discover better ways to do things.”

Travis Hubert Petty

Travis Hubert Petty, the former CEO of El Paso Co who got his start in the mailroom, died 21 December in Colorado Springs, Colo., at age 84. “He lived a real American story,” said Mike Bracy, former CFO of El Paso Co and close colleague of Mr Petty. “He started very young, and as he progressed, he ended up moving into the regulatory department, which was the heart and soul of the regulated pipeline company.”

Mr Petty was born in Clarksville, Texas, on 31 July 1928 to Melissia Kathleen Mauldin Petty and Joseph Hubert Petty. After attending the University of Texas at Austin, he joined the El Paso Natural Gas Co in 1947, rising to become chairman and CEO of its successor company, the Houston-based El Paso Co.

Shortly after becoming CEO in the early ’70s, he was confronted with the looming failure of an El Paso-sponsored LNG project that involved transporting gas from Algeria to the US East Coast. “It became troubled when the Algerians cut off the gas,” Mr Bracy explained. “Travis recognized that this was going to be a terrible burden that would cripple the company and potentially sink it.”

Mr Petty managed to negotiate with Lloyd’s of London the largest marine settlement at the time – about $300 million. “When Travis undertook something, he knew where he wanted to end up, and he would get there. He was never impetuous,” Mr Bracy said.

After El Paso’s 1982 acquisition by Burlington Northern Railroad Co, Mr Petty served as vice chairman. Mr Petty chaired the Interstate Natural Gas Association of America, the Pacific Coast Gas Association and the Southern Gas Association. He served on the boards of directors of El Paso National Bank, Texas Commerce Bancshares (formerly Texas Commerce Bank) and the El Paso Electric Co, and he also was a member of the National Petroleum Council, which advises the US Secretary of Energy on national energy policy.

Mr Bracy recalls working with Mr Petty as the highlight of his business career and marveled at how Mr Petty never kept any personal files. “He remembered everything, and this drove plaintiff attorneys crazy. They kept looking for files, and there weren’t any. He was quite a remarkable man.”

Mr Petty’s family was the center of his life, Mr Bracy noted, and “his wife was very much a presence.”

Mr Petty is survived by his wife Berenice Wieland Petty, seven children (Brian – IADC’s executive VP – government and regulatory affairs, Paul, David, Kevin, Sean, Karen and Michael), 12 grandchildren and four great-grandchildren.

The family requests that donations in the late-Mr Petty’s memory be made to Boys & Girls Club of El Paso, 14900 Greg Drive, El Paso, TX 79938 USA.

InterMoor UK reaches five years without LTI

InterMoor UK Operations has operated for more than five years without a lost-time incident (LTI). InterMoor UK Operations includes Acteon companies InterMoor, InterMoor Marine Services and ChainCo. The business has conducted more than 2,000 projects during the period from three bases, five storage yards and numerous quayside locations in the UK and internationally.

“A five-year (more than 1.1 million man hours) LTI-free safety record is a tremendous success when your daily operations routinely involve handling equipment varying in size and weights up to 260 tons in some of the harshest work environments worldwide,” Alan Duncan, managing director of InterMoor UK Operations, said.

On average, InterMoor UK Operations’s mooring rental department moves about 3,000 tons of mooring equipment per month over the quayside.

Ray Frisby

Jim McGowin

TAM appoints executives, opens office in Bakken

TAM International has appointed Jim McGowin general manager of the recently created TAM Completion Systems and Ray Frisby as technical director of TAM International.

As general manager, Mr McGowin will establish, manage and grow operations and sales, while Mr Frisby will lead the development of new technologies for TAM International.

Both Mr McGowin and Mr Frisby are veterans of the oil and gas industry, with more than 50 years of combined experience.

TAM International also recently opened an office in Dickinson, N.D., to better serve the Bakken shale fields.

The 10,000-sq-ft North Dakota office will serve the increased demand in activity and customer growth in the region, as well as help strengthen customer relationships and leverage the growth of TAM’s business.

“We believe the Bakken region will continue to grow, and we are excited about the opportunities that will come from having an office close to the shale play,” said Michael Dion, Bakken regional manager.

Ship classification, risk experts form DNV GL Group

An agreement has been signed to merge DNV and GL to create DNV GL Group. With more than 17,000 employees, it will be one of the world’s leading ship classification societies and risk experts in the oil and gas, renewable energy and power sectors, and among the global top three within management system certification.

Hercules Offshore appoints executive management

Hercules Offshore has appointed James W. Noe to executive vice president, Beau M. Thompson to general counsel and secretary, Charles A. Lestage to deputy general counsel and chief compliance officer, Cecil H. Bowden to vice president engineering and capital projects and John B. Crabtree to vice president technical support, compliance and maintenance.

Williams named Baker Hughes’ US region president

Richard Williams has assumed a new role as Baker Hughes’ president, US Region.

Mr Williams will oversee the US land region and the Gulf of Mexico (GOM) geomarket. Williams previously served as president, GOM region, and has been with Baker Hughes for 37 years.

Finlayson appointed chief executive of BG Group 

Chris Finlayson has been appointed as chief executive, to succeed Sir Frank Chapman, of BG Group. Mr Finlayson has more than 35 years of experience in the oil and gas industry and joined BG Group from Royal Dutch Shell in August 2010. He was appointed to the Board on 15 November 2011.

BP appoints Lamar McKay new upstream head

BP has appointed Lamar McKay as chief executive, upstream. Mr McKay will lead BP’s combined upstream business, comprising the exploration, development and production divisions with the upstream strategy and integration team. With a background in petroleum engineering, Mr McKay has served in operational and commercial roles globally during his 32 years with BP.

VAM USA has expanded its Connection Technology Center to 90,000 sq ft, doubling its R&D capacity.

VAM USA expands Houston technology center

In response to customer requests for new and innovative products and the qualification of existing product lines to new standards or well conditions, VAM USA has expanded its Connection Technology Center in Houston to 90,000 sq ft, doubling its R&D capacity.

The recent building expansion is able to support additional equipment to ultimately triple the current R&D capacity.

At this facility, VAM connections for shale applications or projects for the Gulf of Mexico undergo the harshest full-scale tests: make and break, simulation of combined loads (tension or compression), bending, high temperatures and fatigue life.

VAM also has opened a field service office in San Antonio, Texas, for technical support. The 4,800-sq-ft facility warehouses service tools and crossover rentals, provide connection inspections and wellsite running assistance.

Integrated Drilling Equipment merges with Empeiria

Integrated Drilling Equipment (IDE) has merged with Empeiria Acquisition Corp (EAC), a special-purpose acquisition company.

Based in Houston, IDE provides land drilling rigs, rig refurbishment and reconfiguration services, upgrade packages and related components for offshore rigs, and integrated electrical and control systems for land and offshore rigs.

“The transaction with EAC will strengthen our ability to pursue attractive growth opportunities in new and existing markets and increase our access to sources of capital,” IDE CEO Steve Cope said.

Miller named Morningstar CEO of the Year

Merrill A. (Pete) Miller Jr., CEO of National Oilwell Varco (NOV), has been named Morningstar’s 2012 CEO of the Year. Morningstar, a provider of independent investment research, annually recognizes a chief executive who exhibits exemplary corporate stewardship, creates lasting value for shareholders and has put his or her stamp on an industry.

TOTAL Angola hires Welltec for intervention services

TOTAL Angola has awarded Welltec Corporation a three-year contract for conveyance and intervention technologies and services.

Welltec technologies and services increase flexibility and reduce the mobilization time for intervention operations compared to intervention methods utilizing coiled tubing or jointed pipe. Other benefits include a reduction in the number of offshore lifting operations, personnel and footprint, which contributes to improved risk management.

Songa Offshore CEO resigns, Wilhelmsen assumes role

Songa Offshore recently accepted the resignation of the company’s CEO, Asbjørn Vavik, and Jens A. Wilhelmsen, chairman of the board of directors, assumed the additional role as interim CEO.

UTEC opens office in Italy, acquires Geomarine

UTEC recently opened a 600-sq-meter office and workshop/warehouse space in Naples, Italy, to serve the Mediterranean and African markets.

The company has also acquired Geomarine to complement its services and increase geotechnical capabilities.

Products

A ROMAR technician commissions a Packer Management System on a rig.

ROMAR management system reaches 80 rigs

ROMAR International has secured the 80th sale of its Packer Management System (PMS) within four years of introducing it to the market. The product is used on 80 rigs globally.

PMS was designed and built by ROMAR in-house in response to a gap in the mobile rig market for an early-warning mud spill preventer system. The system has been further developed into an automated diagnostic and intervention unit, which provides a warning to rig staff of a potential mud spillage into the environment. The system also captures a full data history.

“It is increasingly important for the oil and gas industry to prevent environmental damage,” Robbie Gray, commercial director at ROMAR, said. “We continue to see a high demand for the PMS system, and we will continue to modify the technology in line with customer and industry requirements.”

Non-magnetic hardband improves wear resistance

A non-magnetic hardband by Hardbanding Solutions by Postle Industries provides up to 500% improved wear resistance over other non-magnetic welding alloys, such as 310 stainless steel.

Ultraband NM also provides up to 500% better abrasion resistance than drill collar base materials. The hardband is ideal for directional drilling applications, such as non-magnetic drill collars, stabilizers and MWD/LWD drilling tools and related components.

It is made to be used on non-magnetic base materials. Ultraband NM can be applied directly to non-magnetic tools and over previous layers of stainless steel.

The new hardband is non-cracking and has a hardness reading of 40 Rc. It meets API specification 7 and has a relative permeability less than 1.01.

Infostat Systems module tracks rig personnel, drill assigments

Infostat Systems has launched the RIMDrill Personnel On Board (POB) module for RIMDrill. RIMDrill POB is designed to meet the reporting needs for tracking personnel onboard drilling rigs. Personnel details are entered into RIMDrill POB upon arrival on the rig, including room, lifeboat and muster station assignments. Data can be output in several report formats to help streamline preparation of helicopter manifests or activities, such as lifeboat drills.

RIMDrill POB is fully integrated with RIMDrill, and a record for each person is continually backed up to onshore databases, ensuring data integrity and security.

Variable Bore Rams offers Hydril shearing blind ram

Variable Bore Rams has added to its offerings the Hydril shearing blind ram, which is capable of completely shutting off the well after pipe has been sheared.

The ram features interchangeable shearing blades and is recommended for applications using 9 ^5/8 -in. pipe and below and available in sizes 18 ^3/4  in. to 10M and 18 ^3/4  in. to 15M. The ram is ABS- and DNV-certified.

Sonardyne debuts 360° leak detection sonar

Sonardyne Asia’s new automatic leak detection sonar (ALDS) is designed to continuously monitor 1 billion cu ft of water for leaks around subsea oil and gas assets. Capable of 360° coverage, it can detect leaks at rates of less than one bbl/day at ranges in excess of 500 meters in deepwater.

Strap-on ice traction device provides freedom, grip

Ergodyne has introduced the TREX 6315 Strap-On Heel Ice Traction Device to the TREX Footwear Accessories line. The design utilizes a corrosion-resistant steel heel plate secured to the boot with heavy-duty webbing that can be adjusted for a secure fit. The tread pattern of the steel heel plate increases worker traction on ice and snow, yet leaves the mid-foot region open for common activities, such as vehicle operation or ladder climbing.

“The unique design of the new 6315 gives workers that freedom while still providing tenacious grip and stability where it’s needed most,” Andy Olson, senior product manager at Ergodyne, said.

Amid a seemingly endless barrage of negative press, demonstrations and moratoriums, I was heartened to see the United Kingdom return to the path of sanity by firmly approving resumption of hydraulic fracturing. Unfortunately, just across the Channel, France continues its stubborn ban, even as it closes nuclear plants due to post-Fukushima safety concerns. Absent action, electricity shortages are expected by 2015.

Gallic handwringing aside, shale development is moving ahead. In the US, there’s a walloping gas surplus – enough to export, if we could. A new Department of Energy-sponsored study determined that, across all scenarios studied, LNG exports would reap the US “net economic benefits.”

Also, it has been widely reported that, thanks to shales, the US is poised to rival Saudi Arabia as an oil producer. Meanwhile, shale plays outside North America are also heating up. Some non-NAM shale plays, notably those in China, the Middle East and Argentina, “dwarf”  those of the US, according to Barclays Capital.

The majors are wasting little time. In addition to an existing joint venture between Shell and China National Petroleum Corp, ConocoPhillips announced at year end a deal with Sinopec to study unconventionals in the Sichuan Basin. Baker Hughes and Honghua Group plan to jointly develop a research center for unconventional energy, also in Sichuan.

The shale boom is key in driving a step-change in drilling equipment. Last year, some 125 new AC-powered land rigs entered the fleet, while more than 100 veteran mechanical units were put out to pasture, according to Barclays. High-spec rigs have become the new norm. AC rigs now account for about 35% of the fleet, up sharply from about 25% a year ago, according to Barclays.

“Many operators don’t care to discuss anything but an AC rig,” explained Jay Minmier, president of Nomac Drilling,  in an interview with DC managing editor Linda Hsieh in this issue’s Critical Issues in Drilling and Completions (p.30). “However, there’s a large segment of operators who will pick up, perhaps even prefer, an SCR rig that has been upgraded to tier-1 specifications. Some would argue that if a rig has a big top drive, big mud pumps, a walking system and fast-moving capabilities, its performance will depend primarily on crew strength, not whether it is an AC or SCR rig.”

Take Oxy as an example. John Willis, Oxy’s chief of drilling, explains in Critical Issues (p.56) that nearly 60% of its rigs are “advanced,” up from 25% prior to 2008. Higher-quality rigs have translated to better performance, lower costs and improved safety, which were Oxy’s goals. “It’s enabled us to increase our PDC bit percentage from 40% to over 70% of our footage,” he said.

BHP Billiton Petroleum, the top operator in the Eagle Ford, also values advanced rigs. “We have features on our land rigs that we don’t have on our fifth-generation deepwater rigs,” says BHP vice president of drilling Derek Cardno, also in Critical Issues (p.78). “This shows some great willingness from drilling contractors to develop equipment that will improve our well efficiency.”

As always, there is a dark cloud surrounding the silver shale lining. The first is, with our enviable efficiency, will we drill ourselves out of business? Already in North America, we have driven natural gas prices to near-historic lows. Still, these trends are generally self-correcting. The cure for low gas prices is higher demand and drilling cutbacks, which inevitably correct the pricing conundrum, in the great economic roller coaster.

A greater threat is that we will continue to shoot ourselves in the foot in the court of public opinion. We must recognize the difference between multi-well shale development in crowded environs and the comparatively remote locations we’re used to.

“Because of the shale boom and the activity levels, we are working in people’s backyards,” pointed out Kevin Lacy, senior vice president of global drilling and completion for Talisman Energy in his Critical Issues remarks (p.20). “That is a very different situation than we’ve been accustomed to before.”

Making the case for sanity is even tougher, with Hollywood-land ilk such as “Promised Land” making the rounds.

“That (fracturing) has minimal risk or exposure is very difficult for the public to understand,” Mr Lacy added, “because the average person will basically take the view that zero risk is the right answer.”

The quarter spherical view in the drilling simulator gives students an authentic and accurate view of what life is like in a real driller’s cabin.

New Maersk training complex in operation

Maersk Drilling and Maersk Training inaugurated the MOSAIC II, Maersk’s offshore simulator training complex in Svendborg, Denmark in late 2012. The 1,200-sq-meter, US $10 million complex features a dome-based drilling simulator that offers a 180° side view and 90° vertical view, as well as pipe-handling and well control training capabilities. It is equipped to perform well control downhole simulations with 3D graphics.

“This drilling simulator complex will be able to simulate extreme well control situations,” said Claus V. Hemmingsen, CEO of Maersk Drilling. “It exceeds any industry requirement and represents our strong commitment to effective training and high safety standards.”

Maersk developed the simulator complex in response to the Macondo incident and to focus on the interaction between crew members in various functions on the rig when dealing with well control scenarios. Other simulators either already installed at the facility or in the process of installation include a rig control room simulator, an engine room simulator and two crane simulators.

The training facilities in Svendborg will be in high demand as Maersk Drilling is in the process of hiring 3,000 employees and doubling its fleet by 2016.

Watch an extended webcast and exclusive interviews as DC managing editor Linda Hsieh tours the training complex.

Statoil completes appraisal well in North Sea

Statoil has completed another appraisal well in PL265 in the Johan Sverdrup discovery in the Norwegian North Sea with partners Petoro, Det Norske Oljeselskap and Lundin Petroleum. The well was drilled with Diamond Offshore’s Ocean Vanguard semi, which will also drill wildcat well 25/11-26 in production license 169.

Separately, the Lavani-2 well offshore Tanzania has appraised the Lavani-1 discovery reservoir in the Palaeogene. A significant gas-bearing reservoir in the Cretaceous was encountered. Ocean Rig drilled the well about 3 miles (5 km) southeast of the Lavani-1 discovery well and 12 miles (20 km) south of the Zafarani-1 well.

Talisman Energy flows high-quality oil from Kurdamir-2 well

Talisman Energy has confirmed a significant accumulation of light oil in the Kurdamir-2 well in the Kurdistan region of northern Iraq. The cased-hole test was conducted in the deeper part of the Oligocene formation and targeted 66 ft (20 meters) of fractured reservoir below the main porous zone.

The zone tested at stabilized rates of up to 3,450 bbls/d of 38° API oil and 8.8 mmcf/d of natural gas. The results confirm the presence of an oil column of at least 479 ft (146 meters) in the Oligocene reservoir.

Chevron discovers gas offshore Western Australia

Chevron has made two discoveries in the Exmouth Plateau area of the Carnarvon Basin offshore the Western Australia coast.

The Pinhoe-1 well, drilled in 3,048 ft (929 meters) of water to TD 13,396 ft (4,083 meters), encountered approximately 197 ft (60 meters) of net gas pay in the Barrow and Mungaroo Sands.

The Arnhem-1 well, drilled in 3,963 ft (1,208 meters) of water to TD 9,557 ft (2913 meters), confirmed approximately 149 ft (45.5 meters) of net gas pay in the upper Mungaroo Sands.

BP discovers gas in Trinidad, begins production at Skarv

BP Trinidad & Tobago has discovered an estimated 1 trillion cu ft (tcf) of gas offshore Trinidad, doubling the estimated gas in place of the Savonette gas field to 2 tcf.

The Savonette 4 appraisal well was drilled east of the original Savonette field discovery well in water depths of almost 300 ft (91 meters) in the Columbus basin, approximately 50 miles (80 km) off the southeast coast of Trinidad. The well was drilled to TD 18,678 ft (5,693 meters) and penetrated hydrocarbon-bearing reservoirs in two intervals.

Separately, BP and partners have started production from the Skarv field, approximately 130 miles (210 km) west of the Norwegian coast in water depths up to 1,476 ft (450 meters). The field has an estimated recovery of around 100 million bbls of oil and condensate and more than 1.5 tcf of rich gas.

Hess makes Pecan-1 discovery offshore Ghana

Hess Corp has discovered oil in the Pecan-1 exploration well. In the Deepwater Tano/Cape Three Points license offshore Ghana, the well encountered 245 net ft of oil pay in two separate Turonian intervals. The well was drilled to TD 15,420 ft (4,700 meters) in a water depth of 8,245 ft (2,513 meters).

UK allows exploratory hydraulic fracturing to resume with new requirements

The UK Department of Energy & Climate Change (DECC) has announced that exploratory hydraulic fracturing for shale gas can resume in the UK. DECC has introduced new regulatory requirements intended to ensure that seismic risks are effectively mitigated in hydraulic fracturing operations.

Fracturing had been suspended since May 2011, pending the investigation of two seismic tremors experienced near Preese Hall, Lancashire.

DECC has also responded to the Maitland Report, an independent review on the strength of the UK’s offshore oil and gas safety and environmental protection regime.

Many of the government recommendations have been implemented. Key responses to the recommendations include:

• A pan-industry forum to share best practice and develop guidance and standards for well management and design will remain in place permanently;

• Guidelines for improved management systems to give assurance that safety and environmental plans are implemented robustly; and

• Increased requirement for operators to carry out offshore emergency response exercises from every five years to every three years.

Keen Energy Services’ Rig 29, which has been acquired by Latshaw Drilling, is a 1,000-hp SCR rig. Latshaw Drilling now has 41 rigs in its fleet.

Latshaw Drilling acquires Keen Energy Services

Latshaw Drilling Company has acquired Keen Energy Services. Latshaw Drilling is now made up of 41 rigs and 1,000 employees, making it the second-largest privately owned drilling contractor in the US. Most of the rigs are late-model, diesel-electric units. Thirty-two rigs are equipped with top drives for horizontal drilling, and seven are AC-power rigs.

The acquisition makes Latshaw the second most active drilling contractor in the emerging Mississippi Lime unconventional play between Oklahoma and Kansas. Latshaw operates rigs in Oklahoma, Texas, New Mexico, Louisiana and Arkansas, predominantly in the unconventional horizontal plays.

Frigstad T70 semi features 30,000 dwt displacement

The KM-3, a Frigstad T70 semisubmersible tender-assisted drilling unit, is the largest of its kind with a displacement of approximately 30,000 dwt. Norway’s Frigstad Engineering has secured a contract with SapuraKencana Petroleum to provide detailed engineering services for the construction of KM-3. The unit is equipped with three large cranes, including one 400-ton crane capable of lifting the drilling equipment set in predesigned modules onto offshore jackets.

Vantage, Sigma JV to build ultra-deepwater drillship

Vantage Drilling and Sigma Drilling have entered a joint venture to construct a high-specification drillship at STX Offshore & Shipbuilding. The ultra-deepwater rig will be equipped to operate in up to 12,000-ft water depth and outfitted with a dual-activity derrick. Delivery is expected in November 2015.

Vantage Drilling’s ultra-deepwater drillship Titanium Explorer also commenced operations in the Gulf of Mexico on 7 December 2012. The drillship is contracted to Petrobras for eight years.

Shelf Drilling stakes claim in shallow-water markets

Shelf Drilling was established in September 2012 upon reaching a definitive agreement with Transocean to acquire 37 independent cantilever jackups and one swamp barge for approximately US $1.05 billion. The deal officially closed on 30 November 2012.

Although a good portion of the E&P industry has set its sights on deepwater as the next frontier, David Mullen, Shelf Drilling CEO, points out that shallow water still accounts for 70% of today’s offshore production and notes that his company has no plans to divert focus away from jackup operations.

Read an exclusive interview with Shelf CEO David Mullen.

Seadrill acquires Songa Eclipse ultra-deep semisub

A subsidiary of Seadrill has acquired the ultra-deepwater semisubmersible Songa Eclipse from Songa Offshore for US $590 million. The rig is currently operating for TOTAL offshore Angola on a fixed contract ending in December 2013.

Seadrill has also received a Letter of Award from Husky Oil Operations for a five-year contract for the newbuild harsh-environment semisubmersible West Mira for operations in Canada and Greenland. The rig is under construction, and delivery is scheduled for Q4 2014.