IntellIgence BrIefPresident amp Editor-in-Chief Paul H Hillegeist Sr Editor David C Thomaspaulhillegeistquestoffshorecom davidthomasquestoffshorecomPhone (281) 491-5900 Fax (281) 491-5902

Drillships Semis Jackups Drillships Semis Jackups

Contracted 21 20 35 18 20 35Non Contracted 1 7 21 1 6 21

December 5 November 28Expl Plans Dev Plans APDs Pipl Permits Expl Plans Dev Plans APDs Pipl Permits

lt500 FSW 0 0 9 45 1 4 1 14

gt=500 FSW 0 0 2 17 1 1 0 9

Questrsquos Offshore Stats of the Week

uuu

December 9 2013Vol 14 No 39

Advancing technology to the seafloor for demanding subsea environments

wwwmcdermottcomTel +2818705000 Email businessdevelopmentmcdermottcom

DELIVERING CERTAINTY FOR SURF FACILITIES

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Continued on Page 3

ATLANTIC OIL AND NATURAL GAS COULD ADD BILLIONS TO THE

ECONOMY BY 2035

httpwwwnoiaorgtap-offshore-energy

A new study released by the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API) shows that opening the US Atlantic Outer Continental Shelf (OCS) to offshore oil and natural gas development could have remarkable benefits for job creation domestic investment revenue to the government and US energy security The study conducted by Quest Offshore Inc shows that offshore oil and natural gas development in the Atlantic OCS could create nearly 280000 jobs spur an additional $195 billion in new private investment contribute up to $24 billion per

The AmericAs

1 GoM WOOD GROUP MUSTANG TO PERFORM STAMPEDE FEED SERVICES

Wood Group Mustang seized a contract to provide front-end engineering design (FEED) services for Hess Corporationrsquos Stampede tension leg platform (TLP) to be located in 3500 FSW (1067 MSW) in the Gulf of Mexico Green Canyon blocks 468512 The TLP with dry taringopsides weight of 11500 tons is being designed to produce 80000 BOPD 60000 BPD water and 120 MMcfd gas at capacity

Wood Group Mustang previously provided FEED and detailed design for Hessrsquo Okume production facilities located offshore Equatorial Guinea which consisted of four fixed platform facilities with connecting bridges two TLPs and associated pipelines

ldquoThe combination of our resume of deepwater Gulf of Mexico topsides facilities and our longstanding

December 9 2013

IntellIgence BrIef2 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

relationship with Hess positions us well to deliver FEED services for this production facility We are pleased to extend our project work for Hess from Equatorial Guinea to the US Gulf of Mexicordquo said Bob Lindsay president of the Offshore Business Unit

2 GoM NOBLE ENERGY HITS OIL PAY AT THE DANTZLER PROSPECTNoble Energy Inc drilled a discovery at the Dantzler exploration well in the Deepwater Gulf of Mexico Wireline logging data indicates that the well encountered over 120 net ft of primarily crude oil pay in two high-quality Miocene reservoirs The discovery well located in Mississippi Canyon block 782 was drilled to a total depth of 19234 ft in 6580 FSW (2006 MSW) Dantzler is located 12 miles west of the companyrsquos Rio Grande development area which includes discoveries at Big Bend and Troubadour Discovered gross resources at Dantzler are now estimated at between 55 and 95 MMboe

Mike Putnam Noble Energyrsquos Vice President Exploration and Geoscience commented ldquoDantzler represents our third consecutive exploration discovery in the Miocene trend of the Gulf of Mexico and complements our existing developments at Rio Grande and Gunflint The fieldrsquos proximity to our Rio Grande area provides the opportunity for an accelerated development at Dantzlerrdquo

Noble Energy operates Dantzler with a 45 participating interest Additional interest owners are entities managed by Ridgewood Energy Corporation including Riverstone Holdings LLC and its portfolio company ILX Holdings II LLC with 35 and WampT Energy VI LLC a wholly owned subsidiary of WampT Offshore Inc with 20 In the Deepwater Gulf of Mexico the company anticipates drilling at least two additional Miocene trend prospects in 2014

3 Mexico COTEMAR TAPS SAFE LANCIA FOR THREE-YEAR CONTRACTCotemar group awarded Prosafersquos SAFE LANCIA a three-year bareboat contract ending in December 2016 The contract value is approximately $68 million

4 GoM NOBLE DANNY ADKINS DRILLS AHEAD ON SHELL-OPERATED OASIS WELLShell received a permit to bypass their Oasis exploration well on Mississippi Canyon block 894 The NOBLE DANNY ADKINS has been drilling the well since mid-August Oasis is located in approximately 3700 FSW (1128 MSW) Shell operates the lease on MC894 with BP as partner

5 GoM FMC SNARES $30MM ORDER FOR SIX WORK-CLASS ROV UNITSFMC Technologies Inc received a $30 million order from Tidewater Subsea (Tidewater) to supply a fleet of six work-class ROV systems for its subsea operations business The ROV systems will be supplied by FMC Technologiesrsquo Schilling Robotics business unit and are expected to be delivered before the end of 2013

IntellIgence BrIefDecember 9 2013Vol 14 No 39 3 of 17

year to the US economy generate $51 billion in new revenue for the government and add 13 million barrels of oil equivalent per day to domestic energy production between 2017 and 2035 These jobs are in addition to any jobs and revenue generated by offshore wind or wave energy projects that might take place If lease sales in the Atlantic OCS were held in 2018 exploratory drilling could begin the following year with the first production of oil and natural gas expected in 2026 Major capital investments job creation and revenue to the government would all begin years before the first barrel goes to market By 2035 the Atlantic coast region could see 215000 new jobs as a result of offshore oil and gas activity Inland states outside the Atlantic coast region could see 63950 new jobs The largest employment impact is predicted for North Carolina (55422 new jobs) South Carolina (35569 new jobs) and Virginia (24979 new jobs) Mid and North Atlantic States could also see great job and revenue benefits Maryland Delaware Pennsylvania New Jersey and New York could see over 40000 new jobs contributions to the economy of over $37 billion and an increase in state revenues in the neighborhood of $27 billion by 2035 Active oil and gas development off the coasts of Newfoundland and Nova Scotia might mean similar resources are located off the New England coast Should that be so the New England states could see 45000 new jobs and state revenues of over $5 billion in that same time frame If offshore revenue sharing were legislated for coastal states to receive 375 the federal government would receive over $33 billion a year and individual states would receive over $19 billion a year by 2035

LV102 Horizontal lay system with 4400-ton reeling capacity for umbilical flexible pipe cable amp other SURF installations Planned upgrades high-capacity flexible-lay system

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DELIVERING CERTAINTY FOR SURF FACILITIES

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Continued from Page 1

FMC Technologies will supply integrated Heavy Duty work-class ROV systems which will be mobilized onboard Tidewaterrsquos deepwater vessels to service the global oil and gas offshore construction and Inspection Maintenance and Repair (IMR) markets

6 GoM NEW INDUSTRIES COMPLETES GOM DEEPWATER PIPELINE EQUIPMENTNew Industries Inc recently completed fabrication inspection and testing of in-line valve (ILV) and sled (ILS) structures for a large diameter deepwater pipeline in the Gulf of Mexico Structural fabrication included cradles yokes support frames and lifting devices for both the ILV and ILS structures Pressure containing piping was completed with GTAW FCAW SAW and GMAW processes FAT activities included hydrostatic testing and gauging New Industries also completed EFAT activities to stimulate installation on the deepwater vessel

ldquoThis project is the first of three jobs for the deep water Gulf of Mexico for one of the worldrsquos largest

IntellIgence BrIefDecember 9 2013Vol 14 No 39 3 of 17

year to the US economy generate $51 billion in new revenue for the government and add 13 million barrels of oil equivalent per day to domestic energy production between 2017 and 2035 These jobs are in addition to any jobs and revenue generated by offshore wind or wave energy projects that might take place If lease sales in the Atlantic OCS were held in 2018 exploratory drilling could begin the following year with the first production of oil and natural gas expected in 2026 Major capital investments job creation and revenue to the government would all begin years before the first barrel goes to market By 2035 the Atlantic coast region could see 215000 new jobs as a result of offshore oil and gas activity Inland states outside the Atlantic coast region could see 63950 new jobs The largest employment impact is predicted for North Carolina (55422 new jobs) South Carolina (35569 new jobs) and Virginia (24979 new jobs) Mid and North Atlantic States could also see great job and revenue benefits Maryland Delaware Pennsylvania New Jersey and New York could see over 40000 new jobs contributions to the economy of over $37 billion and an increase in state revenues in the neighborhood of $27 billion by 2035 Active oil and gas development off the coasts of Newfoundland and Nova Scotia might mean similar resources are located off the New England coast Should that be so the New England states could see 45000 new jobs and state revenues of over $5 billion in that same time frame If offshore revenue sharing were legislated for coastal states to receive 375 the federal government would receive over $33 billion a year and individual states would receive over $19 billion a year by 2035

LV102 Horizontal lay system with 4400-ton reeling capacity for umbilical flexible pipe cable amp other SURF installations Planned upgrades high-capacity flexible-lay system

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DELIVERING CERTAINTY FOR SURF FACILITIES

MII_Quest Ads_2013indd 5 2113 124 PM

Continued from Page 1

FMC Technologies will supply integrated Heavy Duty work-class ROV systems which will be mobilized onboard Tidewaterrsquos deepwater vessels to service the global oil and gas offshore construction and Inspection Maintenance and Repair (IMR) markets

6 GoM NEW INDUSTRIES COMPLETES GOM DEEPWATER PIPELINE EQUIPMENTNew Industries Inc recently completed fabrication inspection and testing of in-line valve (ILV) and sled (ILS) structures for a large diameter deepwater pipeline in the Gulf of Mexico Structural fabrication included cradles yokes support frames and lifting devices for both the ILV and ILS structures Pressure containing piping was completed with GTAW FCAW SAW and GMAW processes FAT activities included hydrostatic testing and gauging New Industries also completed EFAT activities to stimulate installation on the deepwater vessel

ldquoThis project is the first of three jobs for the deep water Gulf of Mexico for one of the worldrsquos largest

MCE DEEPWATERDEVELOPMENT 20148 -10 APRIL 2014MADRID SPAINW W W M CED DCO MCo - H o s t e d b y

O r g a n i z e d b y I n P a r t n e r s h i p w i t h

R E G I S T R AT I O N N O W O PE N W W W M C E D DCO M

D i a m o n d S p o n s o r s

G o l d S p o n s o r

E a r l y C a r e e r E n g i n e e r S p o n s o r s

C o n f e r e n c e Te c h n o l o g y S p o n s o r

M A D R I D 8 - 10 A p r i l 2014

C o - H o s t s R e p s o l amp B P w e l c o m e y o u t o o n e o f t h e w o r l d rsquos

p r e m i e r e v e n t s t h e 11t h a n n u a l M C E D e e p w a t e r D e v e l o p m e n t

C o n f e r e n c e amp E x h i b i t i o n

M e e ti n g D e m a n d

I n n ova ti o n I nte g ri t y

amp I nve stm e nt

December 9 2013

IntellIgence BrIef4 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

pipeline installation contractorsrdquo stated company President Bill New ldquoI am especially proud of the outstanding quality and safety performance of our employees and subcontractors on this challenging projectrdquo

7 Brazil PROSAFE GRABS $179MM CONTRACT EXTENSION FROM PETROBRASProsafe seized a $179 million contract extension by Petrobras Netherlands BV (Petrobras) for the provision of the SAFE CONCORDIA semisubmersible vessel for safety and maintenance support offshore Brazil The firm period of the contract extension is three years and commences in June 2014 immediately following expiry of the existing contract firm period

Prosafe states that the award of this contract extension demonstrates the continued long-term demand for safety and maintenance support services within Brazil

8 GoM BP SNARES PERMIT FOR THUNDERHORSE INJECTION WELLBP received a permit to drill the Development 007 water injection well at their Thunderhorse field in Mississippi Canyon block 776 Three subsea trees have been awarded under the FMC frame agreement for the water injection program These are the first wells to be drilled by the newbuild WEST AURIGA drillship which BP has contracted for seven years firm at $565000 per day

9 GoM QUEST EYES MID-2014 FOR UPTICK IN FLOATER UTILIZATIONQuest Offshore Research notes that despite 40 floating rigs currently contracted in the Gulf of Mexico only 33 of the rigs are actually working the first week of December 2013 which is the lowest number of working rigs since October last year when only 32 were in-service

The DEVELOPMENT DRILLER II was warm stacked this week after rolling off contract with BP Channel checks suggest this rig will likely be deployed out of the region in 2014 The additional seven rigs under contract but not working include two rigs en route (OCEAN SARATOGA amp SEVAN LOUISIANA) three rigs under inspection (WEST VELA MAERSK VIKING STENA ICEMAX) one rig shifting to a new operator (NOBLE DRILLER) and one rig in the yard for modifications (DEVELOPMENT DRILLER I) By mid-2014 Quest expects to see 39 to 43 floating rigs in-service Four floating rigs roll off contract by July 2014 and are subject to mobilization out of the area or temporarily stacked while three additional new units are expected to arrive

10 Houston PEOPLE ON THE MOVETransocean Ltd reveals that Ihab Toma notified the company of his resignation as Executive Vice President Chief of Staff effective December 31 2013 With Tomarsquos departure the position of Chief of Staff will be eliminated and responsibilities redistributed Effective immediately the companyrsquos

IntellIgence BrIefDecember 9 2013Vol 14 No 39 5 of 17

LV105 Advanced reeled system for rigid amp flexible product lay amp lowering to 10000 feet including rigid-reeled pipe subsea components amp hardware cables umbilicals amp moorings

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DELIVERING CERTAINTY FOR SURF FACILITIES

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Board of Directors has designated the Chief Executive Officer Steven L Newman the Executive Vice President and Chief Financial Officer Esa Ikaheimonen and the Executive Vice President and Chief Operating Officer John Stobart as the members of the companyrsquos executive management team pursuant to the companyrsquos organizational regulations

AfricA mediTerrAneAn

11 Israel NOBLE ENERGY STRIKES PAY AT TAMAR SOUTHWEST OFFSHORE ISRAELNoble Energy Inc drilled a discovery at the Tamar Southwest (SW) exploration well offshore Israel The Tamar SW well testing a new exploration prospect encountered approximately 355 ft of net natural gas pay within the targeted Miocene intervals Tamar SW which was drilled to a total depth of 17420 ft in 5405 FSW (1647 MSW) is the companyrsquos eighth consecutive discovery in the Levant Basin The field is located approximately eight miles southwest of the Tamar field Evaluation of drilling data and wireline logs has confirmed the range of gross resources of the field to be between 640 Bcf of natural gas and 770 Bcf The well encountered high-quality reservoir sands with per well productivity anticipated to be approximately 250 MMcf of natural gas per day

Following completion of operations at Tamar SW the drilling rig will be released to another operator Noble Energy operates Tamar SW with a 36 percent working interest Other interest owners are Isramco Negev 2 with 2875 Delek Drilling with 15625 Avner Oil Exploration with 15625 and Dor Gas Exploration with four percent

12 Tanzania STATOIL EXXONMOBIL STRIKE GAS PAY WITH MRONGE-1 WELL OFFSHORE TANZANIA

Statoil and ExxonMobil drilled their fifth discovery in Block 2 offshore Tanzania The discovery of an additional 2-3 Tcf of natural gas in place in the Mronge-1 well brings the total of in-place volumes up to 17-20 Tcf in Block 2 The drillship DISCOVERER AMERICAS drilled the Mronge-1 well in 8202 FSW (2500 MSW)

ldquoWe have initiated a new and ambitious drilling campaign offshore Tanzania following four successful discoveries during the first drilling phase The Mronge-1 well discovered additional gas volumes and furthers the potential for a natural gas development in Tanzania The new drilling program also allows us to fully explore the remaining exploration potential in Block 2rdquo says Nick Maden senior vice president for Statoilrsquos exploration activities in the Western hemisphere

The Mronge-1 well discovered gas at two separate levels The main accumulation is at the same stratigraphic level as proven in the Zafarani-1 well in Block 2 The Zafarani-1 discovery was made in

December 9 2013

IntellIgence BrIef6 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

2012 and was a play opener for the block The secondary accumulation was encountered in a separate younger gas-bearing reservoir in a play which previously has not been tested in Block 2

ldquoThese are high value resources The attractiveness is also demonstrated by a recent asset transaction in the neighboring block The discoveries also demonstrate how Statoilrsquos strategy of focusing on high-impact opportunities is paying off and supports the companyrsquos ambition for international growthrdquo Maden says

The Statoil-operated partnership started its new drilling campaign in Block 2 in September 2013 In addition to Mronge-1 the campaign includes drilling of several new prospects and appraisal of previous discoveries Following Mronge-1 the partnership is scheduled to appraise the 2012 Zafarani discovery

Statoil operates the license on Block 2 on behalf of Tanzania Petroleum Development Corporation (TPDC) and has a 65 working interest with ExxonMobil Exploration and Production Tanzania Limited holding the remaining 35 Statoil has been in Tanzania since 2007 when it was awarded the operatorship for Block 2

13 Nigeria PETROFAC TALEVERAS SIGN MoU WITH NPDCPetrofac together with African independent oil and gas company Taleveras Energy Resources Limited signed a five year Memorandum of Understanding (MoU) for cooperation with the Nigerian Petroleum Development Company Ltd (NPDC) a wholly owned subsidiary of the Nigerian National Petroleum Company (NNPC)

The MoU which is extendable allows the parties to explore options including funding technical support training services and asset developmentmanagement support on a risk service contract production enhancement or similar contract basis to support NPDCrsquos aims to further build indigenous capacity and technical capabilities of NPDC amp its affiliates The MOU has been reached as part of the ongoing promotion of the Nigerian Oil and Gas Industry Content Development legislation

As an initial result of this strategic collaboration Petrofac has together with Taleveras agreed with NPDC to provide financial technical and capacity and capability building support for the further development of NPDCrsquos offshore block OML119 in a risk-based support agreement whereby reserves and license ownership are retained by NPDC

14 Madagascar MADAGASCAR APPROVES AMBILOBE BLOCK FARMOUTThe Government of the Republic of Madagascar has greenlighted Sterling Energyrsquos Farm-out Agreement for the Ambilobe Block PSC located offshore Madagascar with Pura Vida Mauritius (Pura Vida) Following completion the holders of the PSC are operator Sterling Energy (50) and partner Pura Vida (50)

IntellIgence BrIefDecember 9 2013Vol 14 No 39 7 of 17

Subsea Engineering Services for all development scenarios from single well tiebacks to multiple wells with complex manifold amp pipeline systems

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DELIVERING CERTAINTY FOR SURF FACILITIES

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Sterling Energy Plcrsquos Executive Chairman Alastair Beardsall said ldquoWe are very pleased to complete the farmout process The Ambilobe area is considered to be highly prospective but remains largely unexplored We are planning to acquire new seismic data as part of our 2014 work program to further investigate the potential of the Ambilobe Basin Sterlingrsquos share of the seismic costs will be paid by Pura Vidardquo

norTh seA europe

15 Norway STATIOIL AWARDS 11 OPTIONS FOR MampM WORK AND ISS SUPPLIERSStatoil exercised 11 options with nine maintenance amp modification (MampM) and isolation scaffolding amp surface protection (ISS) suppliers The options are worth NOK10 billion ($163 billion) for the period 2014 to 2016 Statoil entered into the MampM and ISS contracts on Aug 1 2010 with terms of four years and options for additional two years

The MampM work will be performed on 22 facilities located both offshore and onshore while the ISS contracts regard 20 facilities both onshore and offshore

ldquoStatoil wants competent suppliers which can contribute to safe and efficient operations The exercising of the options is based on an assessment of several factors such as experience future needs market development HSE and quality These contract extensions will have ripple effects in Norwegian industryrdquo says Jon Arnt Jacobsen Chief Procurement Officer at Statoil

16 Norway CEONA FLOATS POLAR ONYX AFTER UNDERGOING OUTFITTINGCeonarsquos high-capacity flexibleumbilical pipelay and subsea construction vessel the POLAR ONYX has been floated out of dry dock at Ulstein Verft yard in Norway following an intensive outfitting program The vessel has now moved to the shipyard quay where the interior works will be completed and the vessel systems brought online The POLAR ONYX support vessel is chartered from GC Rieber Shipping for five years with the option of up to five additional years Designed to the highest standard for dynamic positioning DP-3 the vessel is equipped with a 250t AHC offshore crane Like Ceonarsquos flagship vessel the CEONA AMAZON the POLAR ONYX will execute complex subsea construction and pipelay projects in the SURF market installing flexibles and umbilicals to depths of 9843 FSW (3000 MSW) In early March 2014 it will be outfitted with a 270t VLS built by Huisman at Schiedam The Netherlands The POLAR ONYX is due to be delivered for service in April 2014 Stuart Cameron Ceonarsquos chief operating officer commented ldquoItrsquos great to see the POLAR ONYX out

December 9 2013

IntellIgence BrIef8 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

of dry dock and progressing to the next stage of its construction We will celebrate her christening with a ceremony on the 28th of February and look forward to taking delivery of the completed vessel in April 2014 - right on schedulerdquo

17 United Kingdom WELLTEC INKS THREE-YEAR CONTRACT WITH TOTAL EampP UKTotal EampP UK Ltd awarded Welltec a three-year contract including possibility for a further two one-year extensions The contract covers the scope of tractor conveyance tubing cutting clean-out and milling based e-line intervention services

Lars Mangal Welltec Chief Commercial Officer amp Senior Vice President of UK RussiaCIS and Continental Europe explained ldquoThis award will give Welltec its first direct contract with Total in the UK Total being one of the key operators in the North Sea operating a number of offshore drilling rigs and production platforms including subsea wells The scope for Welltec to demonstrate our unique inherently safer robotic electric line deployed intervention technologies and methodologies is now strongly enabled Compared to traditional pipe based intervention methods Welltec will enable well intervention operations to be mobilized at short notice and with significantly reduced operational riskrdquo

18 Norway STATOIL WILL POWER JOHAN SVERDRUP FROM LAND-BASED SOURCESStatoilrsquos Senior Vice President for the Johan Sverdrup Field Oyvind Reinertsen advises that the company is not considering any other power solutions for the field other than land-based power supply Reinertsen stated ldquoThe project and the licensees based their concept assessment on power supply from land at an early stage and we have not considered any other optionsrdquo

Statoil issued the statement based on speculation in the media as to whether the Johan Sverdrip field will receive electricity from land The project partners are set to choose the concept and development solution covering installations well solutions export solutions and a solution for power supply from land based on technical and financial assessments

ldquoAs operator Statoil will present its recommendations to the license owners based on studies Then the license owners will choose a solution based on regulatory requirements We will present the chosen solution when the license owners have made their decisionrdquo says Reinertsen

19 Norway STATIOL TO LAND JOHAN SVERDRUP AT MONGSTANDStatoil advises that the Johan Sverdrup partners have unanimously decided to recommend landing of oil from the field at Mongstad The partners recommend Mongstad after studies of both Sture and Mongstad as alternative terminals for receiving the oil The decision is founded on an overall assessment of health safety and environment elements robust development total cost technical feasibility flexibility and plan risk

IntellIgence BrIefDecember 9 2013Vol 14 No 39 9 of 17

DB50 Heavy lift amp deepwater pipelay vessel enhanced to deliver greater reliability amp versatility for subsea amp platform completion projects through power propulsion lowering amp AHC upgrades

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DELIVERING CERTAINTY FOR SURF FACILITIES

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The export solution comprises a separate pipeline from Johan Sverdrup landing of pipeline and an onshore route as well as terminal modifications for Mongstad The recommended solution is subject to final concept solution for Johan Sverdrup

The first part of the concept selection for oil transport from the Johan Sverdrup field was made in the autumn of 2012 in connection with Gasscorsquos study of an overall solution for oil export from the Utsira High Based on the expectation of large volumes from Johan Sverdrup a new pipeline was planned from the field to the Mongstad or Sture oil terminal

The Johan Sverdrup partners recommend the existing infrastructure for gas transport from the field The recommendation involves a new 165-kilometre-long gas pipeline from the Johan Sverdrup field to Statpipe and further transport to the Karsto processing complex north of Stavanger

The Utsira High is located between the Sleipner and Grane fields in an area with good infrastructure enabling new robust and flexible export solutions for the Utsira High

20 Ireland PROVIDENCE ACQUIRES NEW LICENSING OPTION IN SOUTH CELTIC SEA BASINProvidence Resources has been offered a new licensing option in the South Celtic Sea Basin offshore southern Ireland by the Irish Department of Communications Energy amp Natural Resources The 18-month Option is situated in approximately 328 FSW (100 MSW) and is about 130 km off the south coast of Ireland The option covers two offshore blocks and seven part-blocks totaling an approximately 1530 sq km area and is located in the south-western sector of the South Celtic Sea Basin

Providence will carry out a work program involving the reprocessing and interpretation of the vintage 2D seismic data together with the integration of existing well control from adjacent basins in order to assess the potential within the option area

21 The Netherlands SBM OFFSHORE STREAMLINES MANAGEMENT STRUCTURESBM Offshore has reduced the top of its governance structure from three layers comprising of the Supervisory Board Management Board and Board of Management to two by removing the Board of Management The Management Board (comprised of the CEO CFO and CGCO) and the SBM Offshore business model remain unchanged

A new position of lsquoGroup Executive Managing Directorrsquo has been created reporting to the CEO with Bernard van Leggelo formerly Managing Director of the SBM Houston Execution Center having been appointed to this new role with immediate effect He will focus on the execution of the companyrsquos operational strategy and long-term planning

A broad portfolio of responsibilities is assigned to the Managing Directors responsible for the

December 9 2013

IntellIgence BrIef10 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

performance of their Execution Center With immediate effect all Managing Directors will report directly to the CEO and have a functional reporting line to the new Group Executive Managing Director

Furthermore the position of Chief Technology Officer has been retitled lsquoGroup Technology Directorrsquo to reflect the structural reform Michael Wyllie will continue in that role with unchanged responsibilities

22 Norway PEOPLE ON THE MOVEStatoil appointed Arne Sigve Nylund to executive vice president for Development and Production Norway Nylund will assume his new responsibilities on Jan 1 2014 and report to Helge Lund Chief Executive Officer Nylundrsquos office location will be Stavanger He succeeds Oystein Michelsen who has been appointed country manager in Tanzania Nylund is currently senior vice president Processing and Manufacturing in Marketing Processing and Renewable Energy (MPR) a role he has held since 2009

cAspiAn seA

23 Russia BUMI ARMADA INKS CHARTER PARTY CONTRACTS WITH LUKOIL-NVNBumi Armada Berhad inked a series of charter party contracts with OOO Lukoil-Nizhnevolzhskneft (Lukoil-NVN) for the provision of vessels to be deployed at the Filanovsky field located at the Caspian Sea Russia

The company secured three contracts for the provision of two new built ice-class (Arc 4) support vessels and one new built ice-class (Arc 5) Multipurpose Duty-Rescue Vessel to be delivered in November 2015 Bumi Armada also inked three interim charter party contracts for the provision of two support vessels and one rescue vessel to be delivered in November 2014 for deployment pending delivery of the ice-class vessels specified in the first contract

Each of the ice-class contracts is for a fixed period of ten years with the possibility of further extensions of up to another 20 years

The ice-class contracts have an estimated aggregate contract value of $262 million for the fixed ten years of charter with extensions of up to 20 years at an estimated aggregate value of $483 million if the options are fully exercised by Lukoil-NVN

Each of the interim contracts will commence in November 2014 and will remain in effect until delivery of the ice-class vessels The estimated aggregate contract value of the Interim Contracts is $18 million

IntellIgence BrIefDecember 9 2013Vol 14 No 39 11 of 17

HELP US DELIVER SOLUTIONS FOR THE WORLDrsquoS MOST CHALLENGING ENERGY PROJECTS

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Wersquore hiringbull Subsea Engineers

bull Engineering professionals

bull Fabrication amp Marine personnel

bull Project Management personnel

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Josh Douglas bull 281 491 5900 bull JoshDouglasquestoffshorecom

Quest Deepwater Insight

A comprehensive global market outlook providing key trends within

high-impact market segments participating in the deepwater

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AsiA pAcific

24 AustraliaSouth Korea SHELL FLOATS PRELUDE FLNG HULL AT SEMSUNG HEAVY INDUSTRIES

The 488-meter-long hull of Shellrsquos Prelude floating liquefied natural gas (FLNG) facility has been floated out of the dry dock at the Samsung Heavy Industries (SHI) yard in Geoje South Korea where the facility is currently under construction Once complete Prelude FLNG will be the largest floating facility ever built It will unlock new energy resources offshore and produce approximately 36 million tonnes of liquefied natural gas (LNG) per annum to meet growing demand

FLNG will allow Shell to produce natural gas at sea turn it into liquefied natural gas and then transfer it directly to the ships that will transport it to customers It will enable the development of gas resources ranging from clusters of smaller more remote fields to potentially larger fields via multiple facilities where for a range of reasons an onshore development is not viable

Prelude FLNG is the first deployment of Shellrsquos FLNG technology and will operate in a remote basin around 475 km northeast of Broome Western Australia for around 25 years The facility will remain onsite during all weather events having been designed to withstand a category 5 cyclone

Shell is the operator of Prelude FLNG in joint venture with INPEX (175) KOGAS (10) and OPIC (5) working with long-term strategic partners Technip and Samsung Heavy Industries (the Technip Samsung Consortium)

25 The Philippines PRODUCTION COMMENCES FROM GALOC PHASE IIOtto Energy Limited advises that production has commenced from the Galoc-5H and 6H wells drilled and completed under the Phase II development of the field Initial production is 14500 BOPD and the four well system is expected to be operated at 12000 BOPD going forward

December 9 2013

IntellIgence BrIef12 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

Galoc has produced more than 11 MMbo since the field was commissioned in 2008 Ultimate recovery from the field with the addition of Galoc-5H and 6H is expected to be approximately 25 MMbo with end-of-field life extended beyond 2020

Otto as operator has delivered Phase II from sanction to commencement of production in just over 14 months Phase II has been delivered safely and close to both the original budget and schedule set in August 2012 Otto notes that the project has experienced many challenges including maintaining safe operations during the recent Super Typhoon Haiyan and successful drilling of the horizontal wells through the Galoc reservoir

26 Vietnam CUA LO 1 ST-1 EXPLORATION WELL REACHES TOTAL DEPTHKrisEnergy Ltd reveals that the Eni-operated Cua Lo 1 ST-1 exploration well in Block 105-11004 has reached a total depth of 2867 meters measured depth or 2800 meters total vertical depth subsea The operator Eni Vietnam BV is currently running wireline logs prior to undertaking a drill stem test

The Cua Lo 1 ST-1 well is a sidetrack well to the original Cua Lo-1 exploration well which commenced drilling on Aug 11 2013 and was then subsequently plugged back from a depth of 2531 TVDSS and sidetracked due to an unexpected high-pressure kick Drilling operations have been further delayed by a series of strong typhoons passing through the region which have resulted in the evacuation of crew from the ENSCO 107 jackup rig on four occasions

Block 105 covers an area of 7192 sq km offshore northern Vietnam overlying the central Song Hong Basin where water depths range from (20 MSW to 80 MSW) The water depth at the Cua Lo 1 ST-1 location is 249 FSW (76 MSW)

Eni (50) operates Block 105 while KrisEnergy (25) and Neon Energy (25) are partners

27 Indonesia PTTEP PERTAMINA SIGN SPA TO ACQUIRE HESS STAKES IN PANGKAH NATUNA SEA A PROJECTS

PTTEP Netherlands Holding Cooumlperatie UA and Pertamina Hulu Energy jointly signed Share Purchase Agreements (SPAs) to acquire on a basis of 5050 the subsidiaries of Hess Corporation that hold a 75 interest in the Pangkah Project and a 23 interest in the Natuna Sea A Project offshore Indonesia

Source Otto Energy

IntellIgence BrIefDecember 9 2013Vol 14 No 39 13 of 17

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The total consideration of transactions is approximately $13 billion and PTTEPrsquos portion is approximately $650 million PTTEP will fund its proportionate share of the transactions through its available cash Completion of the transactions is subject to customary closing conditions as prescribed in the SPAs with expected closing dates within this year for the Natuna Sea A Project and during Q1 2014 for the Pangkah Project

The Pangkah Project is an oil field located in the East Java Sea in Indonesia The current production is approximately 7000 BPD of liquids and 33 MMcfd of gas with total proved and probable reserves (2P) of 110 MMboe After the completion of the transaction PTTEP and Pertamina as the ultimate owners will jointly operate the Pangkah Project The other joint venture partner includes SakaEnergi which holds 25 interest

The Natuna Sea A Project is a gas field located in the West Natuna Sea near the border between Malaysia and Indonesia The current production is approximately 220 MMcfd of gas and 2350 BOPD with total proved and probable reserves (2P) of 209 MMboe Partners in the Natuna Sea A Project include Premier Oil (Operator) KUFPEC and Petronas which hold participation interests of 2867 3333 and 15 respectively

28 New Zealand STATOIL ACQUIRES 100 STAKE IN EXPLORATION PERMIT OFFSHORE NEW ZEALAND

Statoil secured a 100 equity share in an exploration permit in the Reinga-Northland Offshore Release Area in the New Zealand Block Offer 2013 The permit covers approximately 10000 sq km and is located approximately 100 km from shore to the west of New Zealandrsquos North Island in water depths ranging from 3280 FSW to 6562 FSW (1000 MSW to 2000 MSW)

The work program is designed to fully evaluate the prospectivity of the permit in a staged manner within the 15-year permit timeframe Statoil is committed to collect new 2D seismic data and to undertake a multi-beam seafloor survey with selected core samples within the first three years Following an analysis and interpretation of this data Statoil will decide on further steps

29 New Zealand MATUKU-1 SPUDS OFFSHORE TARANAKINew Zealand Oil and Gas (NZOG) advises that drilling is underway in the OMV-operated Matuku-1 well in PEP 51906 offshore Taranaki The well is located in 427 FSW (130 MSW) and will take an estimated 46 days to drill to the projected target depth of about 4750 meters

The Matuku prospect lies south of the producing Tui oil fields and west of the Maui gas field The well targets the F Sand reservoir sandstones of the Kapuni Group Secondary targets are sandstones of the Kapuni Group D Sand and Pakawau Group North Cape Formation

The KAN TAN IV a semi-submersible rig operated by Frigstad Offshore Limited is drilling the well

December 9 2013

IntellIgence BrIef14 of 17Vol 14 No 39

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Deepwater marine construction workRig moves and FPSO installations

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OMV New Zealand (65) operates the well while Octanex (225) and NZOG (125) are partners in the well

30 Singapore SWISSCO ORDERS TWO AHTS VESSELS AND A FAST UTILITYCREW BOATSwissco Holdings Limited has placed orders for two anchor handling tug supply vessels (AHTS) and a fast utilitycrew boat with a one plus one option The newbuild vessels excluding owner supplied equipment are worth an aggregate of S$42 million The AHTS and the fast utilitycrew boats will be built at Chinese Yards and are expected to be delivered in 2015

31 Thailand MALIDA-1 SIDETRACK SPUDS OFFSHORE THAILANDTap Oil Limited advises that the Malida-1 discovery well has been plugged and a sidetrack well will test a separate structure adjacent to the structure tested by Malida-1 Malida-1 Malida-1 ST1 (A) is located in the G148 concession in the Gulf of Thailand approximately 5 km northeast of the Manora oil development Mubadala Petroleum is the operator of G148 The forward plan is to drill Malida-1 ST1 (A) to a final total depth of 3225 meters measured depth

32 New Zealand AWE EXPANDS STAKE IN TUI AREA OIL PROJECTAWE Limited completed the purchase of an additional 15 interest in the Tui area oil project and an additional 625 in the Oi exploration well located offshore New Zealand in PMP 38158 from Mitsui EampP Australia Pty Limited AWE is the operator of the PMP 38158 joint venture

AWE purchased the additional interest in Tui and Oi for a consideration of $64 million The transfer of interest has been approved by the New Zealand Minister of Energy and Resources and the effective date of the transaction is Oct 1 2013

Following completion of the purchase AWE now holds a 575 interest in Tui area oil project and a 3125 interest in the Oi exploration well AWE has the option to increase its equity in Oi up to 575 in any development through a buy-back of equity from Pan Pacific Petroleum

Managing Director of AWE Bruce Clement said ldquoWe plan to drill both the Pateke-4H development well and the Oi exploration well in early 2014 If successful these opportunities will add further production upside and add substantial value to the Tui projectrdquo

33 Indonesia KOI-2 SPUDS IN ISLAND PSC OFFSHORE INDONESIARH Petrogas Limited has commenced the drilling the Koi-2 appraisal well in the offshore area of the Salawati Kepala Burung PSC (Island PSC) using the BOHAI-8 jackup rig The Basin PSC is locatedin West Papua and covers an area of 1097 sq km

IntellIgence BrIefDecember 9 2013Vol 14 No 39 15 of 17

LV108 High-capacity lay tower for rigid amp flexible pipelay with nominal reel payload of 2500 tons subject to loading conditions for pipe diameters between 4-16rdquo Expected delivery mid-2014

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Located in shallow water of 105 FSW (32 MSW) Koi-2 is planned to reach a total vertical measured depth of 1402 meters and the drilling is anticipated to take approximately 21 days

The Island PSC is operated by JOB Pertamina-PetroChina Salawati which is a joint operating body formed between Pertamina and PetroChina The consortium as contractor of Indonesian government operating under the supervision of SKK Migas (Satuan Kerja Khusus Minyak dan Gas) has actively explored and produced oil and gas in the working area

34 Australia NOPTA AWARDS WEST SEAHORSE LICENSE TO VICP57 JOINT VENTUREHibiscus Petroleum Berhad (Hibiscus Petroleum) advises that the National Offshore Petroleum Titles Administrator (NOPTA) of Australia has on Dec 5 2013 awarded the VICP57 joint venture with Production License VICL31 over the West Seahorse oil field in the offshore Gippsland Basin Victoria Australia

Hibiscus notes that the production license award provides greater certainty to the West Seahorse project A Final Investment Decision (FID) is currently expected in the first half of 2014 with production targeted a year later

West Seahorse is being developed by the VICP57 joint venture comprising Hibiscus Petroleumlsquos subsidiary Carnarvon Hibiscus Pty Ltd (501) which is the operator for the VICP57 permit and ASX-listed 3D Oil Limited (499)

35 Singapore KEPPEL SHIPYARD NEGOTIATES WITH GOLAR FOR FLSV CONVERSION WORKKeppel Corp confirms that Keppel Shipyard Ltd (Keppel Shipyard) and its topside partners are currently negotiating conversion and liquefaction contracts with Golar LNG on the conversion of an existing LNG carrier into a Floating Storage and Liquefaction Vessel (FLSV) The terms and conditions of the contracts including the contract value and expected completion timeline have yet to be finalized

The negotiations on the contracts commenced following the conclusion in end August 2013 of a Front-End Engineering and Design (FEED) study conducted by Keppel Shipyard to confirm the engineering and work scope The study confirmed that the conversion will take approximately 30 months from financial commitment to complete

36 Indonesia UTEC OPENS NEW INDONESIAN OFFICE IN JAKARTAUTEC Surveyrsquos new entity PT UTEC Survey Indonesia will focus on providing quality survey support to challenging developments in the expanding Indonesia deep water oil and gas sector UTEC notes that its decision to open an office in the region comes in response to strong demand from operators

December 9 2013

IntellIgence BrIef16 of 17Vol 14 No 39

SPECIALISTS

Survey and positioning services supporting professional offshore operations world wide

Deepwater marine construction workRig moves and FPSO installations

Find out more on wwwisurvey-groupcom

and subsea contractors requiring specialized international expertise coupled with domestic resources PT UTEC Survey Indonesia services include subsea positioning geophysical (AUV) geotechnical consulting dimensional control and 3D laser scanning

The office of PT UTEC Survey is located at Menara Mulia Suite 2701 Jalan Jend Gatot Subroto Kav 9-11 Karet Semanggi Setiabudi Jakarta 12930 Phone +6221 2953 9523 Fax +6221 2953 9501

37 Malaysia PEOPLE ON THE MOVEFormer Prime Minister Dr Mahathir Mohamad has relinquished his post as adviser to Malaysiarsquos national oil and gas company Petroliam Nasional Berhad (Petronas) effective Dec 1 2013 The 88-year old former leader said he was stepping down due to age

ldquoI have been an adviser to Petronas for almost 10 years My doctor advised me not to travel too much because I am old I was told by my doctor to quit long time ago but I did not adhere to his advicerdquo said Dr Mahathir Dr Mahathir became Petronas adviser soon after he stepped down as prime minister on Oct 31 2003

middle eAsT indiA

38 UAE AMEC SNARES $124MM CONTRACT FOR UMM LULU PHASE 2AMEC secured a $124 million project management consultancy services contract by Abu Dhabi Marine Operating Co (ADMA OPCO) for their Umm Lulu Phase-2 full field development projects offshore United Arab Emirates (UAE) This five-year contract follows a previous award from ADMA OPCO in 2011 for the provision of services for the first phase of Umm Lulu and the Nasr phase 1 project

Under this latest contract AMECrsquos scope of work includes project management of the engineering procurement and construction contractors who are delivering a large offshore super complex located in the Umm Lulu Field The complex will comprise six bridge-linked platforms including gathering separation gas treatment and water disposal facilities utilities and accommodation modules The work is being delivered from the UAE and is expected to create 100 additional jobs for AMEC in Abu Dhabi

IntellIgence BrIefDecember 9 2013Vol 14 No 39 17 of 17

Advancing technology to the seafloor for demanding subsea environments

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otherwise without prior written permission of Quest Offshore resources inc Houston Careful attention should also be paid by bona fide subscribers to their license agreement with Quest

Offshore resources inc Houston in terms of forwarding this publication any queries or questions in this respect may be e‑mailed to corpquestoffshorecom