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Industry contributors receive IADC Exemplary Service Awards

Posted on 07 November 2008 in News

Two industry leaders received IADC Exemplary Service Awards at the 2008 Annual Meeting on 6 November in Scottsdale, Ariz.: John Auth of Diamond Offshore and Mike Roth of ENSCO International were each recognized for outstanding contributions to the drilling industry and to IADC.

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Devon's Rick Mitchell: Plenty of growth opportunities ahead

Posted on 07 November 2008 in News

 Delivering the keynote address on the opening day of the IADC Annual Meeting on 6 November, Rick Mitchell of Devon Energy called for more collaboration among industry sectors and an increased focus on environmental and safety performance, as well as improvements in enabling technologies to help the development of difficult fields. He also discussed Devon’s current activities and future plans, such as with the Barnett Shale on land and the Lower Tertiary plays offshore.

Devon’s 2008 plans called for the drilling of about 2,400 wells worldwide, including more than 800 horizontal wells. North America onshore certainly remains a key operating area – taking up about 57% of 2008 capital allocation – but projects in the Gulf of Mexico, Canada, Brazil and China also are strategically important.

“For Devon, it’s really more about asset quality,” Mr Mitchell said. That includes strong land positions and large concentrated assets such as the Barnett Shale and East Texas’ Carthage area. It also includes exposure to emerging plays like the Haynesville Shale and the ultra-deepwater Lower Tertiary plays.

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2009 IADC chairman Claus Hemmingsen calls for improved environmental integrity

Posted on 07 November 2008 in News

 There has been an increasing focus on the “E” in HSE, and the industry should take a more proactive stand on improving our environmental performance, said Claus Hemmingsen, Maersk Drilling CEO and the incoming chairman for IADC.

Speaking at the Annual Meeting on 6 November, Mr Hemmingsen noted that the drilling industry has “a long history of environmental awareness” and that “reduce, reuse and recycle” has become a common way of thinking.

The industry’s efforts to safeguard the environment have been mainly focused on three areas – equipment, systems and culture (or people).

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National oil companies: the new face of drilling contractors

Posted on 07 November 2008 in News

The faces of drilling contractors’ clients are changing, and we must learn to adapt to new cultures, business styles and risk management strategies, speakers said during a presentation at the IADC Contractors & Risk Management Conference on 29 October in Houston. Alex Cestero, deputy general counsel-business affairs for Pride International, kicked off the presentation, titled “The Advent of National Oil Companies: Risks, Opportunities, Idiosyncrasies & Practical Tips on Contract Negotiations & Contract Management.”

An increasing percentage of the world’s oil and gas production and reserves are controlled by national oil companies (NOCs). In fact, it’s estimated that by 2005, NOCs had about 50% of global oil production and over 70% of reserves, and “Top 10” lists measuring reserves/production don't include many – if any – independent oil companies (IOCs). “Fundamentally, who you’re dealing with has changed and will continue to change at an accelerated rate,” Mr Cestero said.

When considering operations in unfamiliar, foreign countries, one fundamental question that has to be asked early on is, “Do we want to work where the NOC is taking us?” Issues such as the political climate of the country and the relationship between that country and your home country must be considered. It’s also important to look at nationalizing/privatizing trends, local content requirements and Foreign Corrupt Practices Act compliance, he said.

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DC readers tell us their US presidential preferences

Posted on 21 October 2008 in News

By Mike Killale, Editor & Publisher

Your favorite for the next president of the United States depends in large part on your geography. A shamelessly unscientific survey of DC’s readers worldwide by eNews from DrillingContractor.org found topsy-turvy results between North American readers and those elsewhere in the world.

However, a strong minority (averaging 14% globally) suggested that neither John McCain nor Barack Obama is a good choice. Or, as the bluntly worded survey expressed it, “A donkey would be better.” The proportion of Donkey voters was actually highest in Europe, followed closely by the USA, where some one in six respondents demurred from championing either of the two major candidates.

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Shell to accept WellCAP for worldwide training

Posted on 21 October 2008 in News

IADC WellCAPIn a move that could greatly benefit drilling contractors, Shell International Exploration & Production has certified the use of IADC’s WellCAP as an acceptable form of well control training worldwide.

“The latest revision of the global Shell Pressure Control Manual now acknowledges WellCAP as an acceptable well control certification for both Shell company and contractor supervisors,” said Jeff Campbell, senior staff training specialist for Shell EP Americas.

Mr Campbell, currently a member of the IADC WellCAP Review Panel, was a member of the internal team at Shell responsible for  scheduled updates of the company’s well control manual and certification of well control training programs.

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Vote to be held on WellCAP changes

Posted on 20 October 2008 in News

Changes to the WellCAP instructor qualifications criteria have received worldwide review and will undergo a vote for approval at the next meeting of the IADC Well Control Committee, scheduled for 12 November, according to committee chairman Mark Milne of Transocean.

If approved, the changes will impact new instructors, instructors seeking upgraded approval status, and instructors seeking reinstatement as approved instructors. The proposal also includes requirements for maintaining approved instructor status.

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Ocean Star survives Ike but needs industry assistance for repairs

Posted on 20 October 2008 in News

 

Only the shell of the Ocean Star gift shop was left after Hurricane Ike passed through Galveston in early September.

The Offshore Energy Center (OEC) has reported that the Ocean Star Offshore Drilling Rig & Museum in Galveston, Texas, survived Hurricane Ike’s powerful winds and storm surges in September. A helicopter on a rooftop exhibit was damaged, and there were damaged windows and some flooding – minor compared with what could’ve been, said OEC executive director Sandra Mourton.

However, the museum gift shop that was housed in a portable building on the pier didn’t survive the storm, and the OEC hopes that the industry can offer its assistance in finding a replacement. “Size-wise we’d have to get something similar because of our lease on the pier,” Ms Mourton said. The original building was 20 ft by 34 ft and housed not just souvenirs but also the manager’s office, restroom and storage facilities, and communications wiring for the entire museum, including telephone, computers, etc.

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BP makes deepwater discoveries offshore Angola, Gulf of Mexico

Posted on 20 October 2008 in News

Sonangol and BP announced the Dione oil discovery in ultra-deepwater Block 31, offshore Angola. This is the sixteenth discovery made by BP in Block 31 and is located in the southern portion of the block, about 9 km southwest of the Juno-1 discovery. Dione was drilled in a water depth of 1,696 m, some 390 km northwest of Luanda and reached a total depth of 3,272 m below sea level. Well test results confirmed the capacity of the reservoir to flow in excess of 5,000 bbl/day.

Separately, BP America announced an oil discovery at its Freedom Prospect in the deepwater Gulf of Mexico. The well, located in Mississippi Canyon Block 948, approximately 70 miles southeast of the Louisiana Coast, is in about 6,100 ft (1,860 m) of water. The Freedom well was drilled to a total depth of approximately 29,280 ft (8,927 m) and encountered greater than 550 net ft of hydrocarbon-bearing sands in Middle and Lower Miocene reservoirs. Appraisal will be required to determine the size and commerciality of the discovery.

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West Hercules delivered; West Polaris begins operations offshore Brazil

Posted on 20 October 2008 in News

 This illustration shows Seadrill’s West Hercules drillship, whose first assignment will be offshore China for Husky Oil China.

Seadrill has taken delivery of the deepwater rig West Hercules from the DSME shipyard in South Korea, and the West Polaris drillship has begun operations for ExxonMobil in Brazil.

West Hercules has a three-year contract with Husky Oil China for operations offshore China. The unit will proceed for mobilization, and commencement of operations is expected by early November.

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