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MMS: 52 production platforms, 3 jackups, 1 platform drilling rig destroyed by Ike

Posted on 28 September 2008 in News

The US Minerals Management Service (MMS) estimates that on 13-14 September 2008, approximately 1,450 oil and gas production platforms in the Gulf of Mexico were exposed to hurricane conditions, or winds greater than 74 mph. As of August 2008, there were more than 3,800 production platforms in the Gulf of Mexico ranging in size from single well caissons in water depths of 10 ft to a large complex facility in water depths greater than 7,000 ft.

Offshore infrastructure destroyed: As of 23 September 2008, it has been reported that 52 of the 3,800 offshore oil and gas production platforms, three jackup drilling rigs and one platform drilling rig in the Gulf of Mexico were destroyed by Hurricane Ike. Initial estimates are that the 52 destroyed production platforms produced a total of 13,300 bbl of oil per day and 90 million cu ft of gas per day.  It is still unknown whether any of the destroyed platforms will be rebuilt.

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Noble to construct ultra-deepwater drillship

Posted on 28 September 2008 in News

 The Noble Leo Segerius is one of three drillships Noble currently has, all operating offshore Brazil. The company is now building a new ultra-deepwater drillship that will be capable of operating in water depths up to 10,000 ft.

Noble Corp’s subsidiary Noble Drilling Holding has signed contracts for the construction of a new, dynamically positioned, ultra-deepwater, harsh environment Globetrotter-class drillship with South Korea’s STX Heavy Industries and Dutch-based design and construction firm Huisman Equipment B.V.

The drillship will be built on a fixed-price basis in two phases. Following construction of the hull and installation of the propulsion system by STX at their new state-of-the-art facility in Dalian, China, the to-be-named drillship will sail under its own power to the Netherlands, where Huisman will complete the installation and commissioning of the topside equipment.

The delivered cost of the drillship, excluding capitalized interest, is estimated to be $585 million, with delivery scheduled for the second half of 2011. Additionally, Noble has secured priced options for three additional Globetrotter drillships exercisable by Noble over the next 90, 120 and 180 days, respectively, from the date of contract execution.

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Chevron achieves full production from Tengiz expansion projects

Posted on 28 September 2008 in News

Chevron’s affiliate Tengizchevroil has completed a major expansion at the Tengiz Field in Kazakhstan that will nearly double production capacity at one of the world’s largest oil fields.

The completion of the expansion brings Tengizchevroil’s daily crude production capacity to 540,000 bbl. The first phase of expansion, accomplished earlier this year, increased daily capacity from approximately 310,000 bbl to 400,000 bbl.

“This accomplishment demonstrates how Chevron is leading the industry in the selection and execution of major capital projects while providing increased value for our host countries and partners,” said George Kirkland, executive vice president, Chevron Global Upstream and Gas. “As world energy demand continues to grow, the multibillion dollar expansion of the Tengiz field brings much-needed new oil to market.”

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Petrobras oil production in Brazil sets monthly record

Posted on 28 September 2008 in News

The average daily oil production of Petrobras’ fields in Brazil was 1,885,196 bbl/day in August, a 4.3% increase over a year ago and 1% more than the previous month. This result also set a new monthly production record, 18,000 bbl/day more than the previous record, set in June 2008, when 1,867,336 bbl/day were produced.

Petrobras’ total average production (oil and natural gas in Brazil and abroad) topped out at 2,442,444 bbl of oil equivalent per day in August, 5.3% more than in the same month of 2007, and 0.9% higher than last July.

Natural gas production in domestic fields reached 52.734 million cu m per day, 22.5% more than the volume extracted a year ago, and 0.9% more than in July 2008.

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Service companies announce new valve, shale team at SPE annual meeting

Posted on 28 September 2008 in News

 At two separate press conferences held during the SPE Annual Technical Conference in Denver, Colo., on 23 September, service companies announced the availability of a new internal control valve for deepwater environments, as well as the formation of a global shale technology team.

WellDynamics introduced its HS interval control valve (HS-ICV), which is debris-tolerant and designed for high-pressure, deepwater environments characterized as severe operating conditions. It enables deployment of SmartWell systems in more extreme environments.

The flow trim ensures complete metal-to-metal seal integrity when exposed to heavy wellbore debris. A one-piece valve mandrel design eliminates the potential for wellbore debris to be trapped inside the tool and consequently prevent valve movement. The metal-to-metal flank seal also enables the valve to unload at a maximum differential pressure of 5,000 psi and has been tested for seal integrity at both low and high pressure differentials of up to 10,000 psi.

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Oxy buys Permian Basin, Piceance Basin acreage

Posted on 28 September 2008 in News

Occidental Petroleum has announced the signing of a definitive purchase and sale agreement with Plains Exploration & Production (PXP) to purchase all of PXP’s interests in the Permian Basin of West Texas and New Mexico and Piceance Basin of Colorado for $1.25 billion.

Current production from the properties being acquired is approximately 4,300 bbl of liquids and 52 million cu ft of gas per day, for a total of 13,000 bbl of oil equivalent per day. The properties have approximately 92 million bbl of oil equivalent of proved reserves, of which approximately 69% are natural gas and 45% are developed.

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MMS updates Ike damage assessment

Posted on 20 September 2008 in News

The US Minerals Management Service (MMS) reported that, as of 17 September 2008, 49 of the 3,800 offshore oil and gas production platforms in the Gulf of Mexico have been destroyed by Hurricane Ike. MMS said it currently has no information on whether any of the destroyed platforms will be rebuilt by any operator. Oil and gas operators are also reporting damage to offshore infrastructure other than destruction.  These reports are being analyzed by MMS and damage statistics will be released next week.

Initial estimates are that the 49 destroyed production platforms produced a total of 13,000 bbl of oil per day and 84 million cu ft of gas per day.

Additional damage reported included three jackup and one platform drilling rigs destroyed and one jackup drilling rig with extensive damage.

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ENSCO takes line-of-sight approach to safety

Posted on 20 September 2008 in News

There’s no silver bullet to creating a zero-incident workplace, but in order to achieve that goal, ENSCO has taken a line-of-sight approach that integrates safety leadership with systems applications, said John Karish, the company’s HSE director, at the IADC Drilling HSE Europe Conference & Exhibition on 9 September.

In 2004-2005, ENSCO decided that safety, health and environment (SHE) must be a part of the company’s overall business strategy. In 2006, a SHE leadership development program (LDP) was created and delivered to company management in order to align and focus SHE with company values, as well as with work systems and activities.

The SHE LDP resulted in the identification of key issues to be addressed, leading to the establishment of project teams and individual coaching for employees who showed potential to be SHE champions.

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Goal Zero marks change in HSE mindset for Shell

Posted on 20 September 2008 in News

 Most safety accident investigations scratch only at the surface and never dig deep enough to look at the root causes, said Graham Robinson, manager of Shell’s Global Zero Work site Hazard Project. But, at Shell, after an incident involving two fatalities on the Brent Bravo platform in 2003, the company decided it was time to take the investigation to the next level.

A management team of about 20-30 senior leaders, including Mr Robinson, was put together, and the group spent eight to 12 months conducting an investigation looking at the underlying causes of what happened on Brent Bravo.

Out of that investigation came Goal Zero,  and it has been the start of an enduring shift in mind set and behaviors about safety, Mr Robinson said during the keynote presentation on the opening day of the IADC Drilling HSE Europe Conference & Exhibition in Amsterdam on 9 September.

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OGP Aviation Subcommittee chairman calls for better helicopter safety

Posted on 20 September 2008 in News

 The current level of aviation safety in OGP operations is unacceptable, said Exxon Neftegas aviation advisor Robert Williams during his keynote address on 10 September at the IADC Drilling HSE Europe Conference & Exhibition in Amsterdam.

Mr Williams, who also serves as chairman of the OGP Aviation Subcommittee (ASC), called for the industry to improve its aviation safety performance and detailed ongoing OGP initiatives aimed at achieving that improvement.

A significant amount of helicopter activities goes on in the oil and gas industry. According to OGP data, there were nearly 1,400 helicopters operating for the industry worldwide in 2006. They carried more than 9 million passengers by flying more than 1 million hours and about 2.7 million flights.

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