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July/August

News Cuttings

IADC North Sea Chapter holds annual ceremony to recognize excellence in safety The IADC North Sea Chapter (NSC) recognized excellence in safety performance during its Annual Safety Awards Ceremony in Aberdeen on 20 April. Rowan Drilling’s Peter Wilson, who serves as Chapter Chairman, welcomed a capacity audience to the ceremony. “This event is our opportunity to applaud the efforts of our workforce in the vital area of safety,” he said. “Despite continuing challenging times, we should take heart from those safety leaders who strive to achieve the safest working environment possible, and I encourage everyone to consider how they can support them and make a difference.” The award for best safety performance in jackups went to Ensco for rigs working over 1 million ...

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New section milling technology designed for restricted IDs restores access to leached area of cavern in highly abrasive Texas salt dome

The Stratton Ridge salt dome in Brazoria County, Texas, has been used extensively by the industry for brining operations and for the storage of liquid hydrocarbons, refined products and natural gas. The shape of the dome has been defined by several hundred oil and gas wells drilled over the top of this highly anomalous geologic diapir structure. Cavern operations at Stratton Ridge are known to have experienced multiple problems, including severe lost circulation while drilling through cap-rock, sheared well casings, corrosion, shifting and encountering hydrocarbon products that appear to have escaped from the storage cavern...

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Fire on closely spaced six-well pad illustrates heightened need for well control risk mitigation in pad drilling

Efforts to help reduce environmental footprint, infrastructure and development costs have led to an increased use of pad drilling. However, the close proximity of wells in pad drilling increases the risk of more severe consequences during well control incidents. In the case of a burning well, both radiant and direct heat can potentially ignite adjacent wells, threatening both human life and equipment and detrimentally affecting the immediate environment. This article describes challenges and lessons learned from controlling a multiwell pad blowout...

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People, Companies and Products July/August 2017

Ensco and Atwood Oceanics have entered into a definitive merger agreement under which Ensco will acquire Atwood in an all-stock transaction. The definitive merger agreement was unanimously approved by each company’s Board of Directors. Under the terms of the merger agreement, Atwood shareholders will receive 1.60 shares of Ensco for each share of Atwood common stock, for a total value of $10.72 per Atwood share, based on Ensco’s closing share price of $6.70 on 26 May 2017. This represents a premium of approximately 33% to Atwood’s closing price on the same date. Upon close of the transaction, Ensco and Atwood shareholders will own approximately 69% and 31%, respectively, of the outstanding shares of Ensco...

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Wirelines

On 10 May, the US Customs and Border Protection (CBP) announced that it had withdrawn its proposed action relating to modifications and revision of the Jones Act rulings. In response, IADC President Jason McFarland issued the following statement:...

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Small signs hint at possible recovery in still-sluggish North Sea

Although the North Sea drilling market is still quite a ways from what one might call healthy, small signs of recovery are starting to sprout. Several operators, for example, have publicly touted significant reductions in their breakeven costs for offshore projects – from Maersk Oil’s $40-45 range for pre-FID projects to Statoil’s $27 for pre-FID Norwegian Shelf projects...

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Perspectives: Harris Reynolds, Diamond Offshore Drilling: Boom or bust, offshore industry must focus on innovations to drive down costs

In an industry downturn, especially one as severe as the one currently plaguing the oil and gas business, it can be instinctive for companies to postpone investments in technical innovations. But Harris Reynolds, Director of R&D at Diamond Offshore Drilling, believes that would be a short-sighted approach. “We have to bring the cost of exploration and production down radically,” said Mr Reynolds, who also serves as Chairman of the IADC Future Technology Subcommittee. “There has to be a paradigm shift to get costs down for offshore.”...

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