1OTC .05 SHOW DAILY05.02.05

MONDAY 05.02.05

TODAY OTC WILL ADDRESS ONE OF THE INDUSTRY’Skey talking points when a diverse cross sectionof industry leaders convenes at 14.00pm todiscuss the challenges and strategies necessaryto meet growing world energy demand, forecastto reach 335 million boe/d by 2030.

Presented under the heading of ‘EnergyLeadership and Outlook’, atop the list of issuesto be addressed will be whether our industry iscapable of ensuring an adequate supply ofenergy at an economically acceptable price.Other topics will include industry access topotential reserves; availability of appropriatetechnologies to develop these reserves in anenvironmentally friendly manner; and thegrowing concern of increasing CO2 levels and

greenhouse gas emissions.As former US deputy secretary of energy

and current mayor of the world’s energycapital, Houston’s Bill White will provide thekeynote address for the panel with a wide-perspective on the issue and a local anglefollowed by views from operators includingShell Exploration & Production technicaldirector, EP Americas Gaurdie Banister Jr,Stone Energy president and CEO David Welchand El Paso president, production and non-regulated operations Lisa Stewart. IFPchairman and CEO Olivier Appert and AMECParagon senior executive vice president KenArnold will provide the research andengineering company perspective.

Leading the charge

InsideSpotlight on new technology 2And the awards go to . . . 2Today’s highlights 3On the menu tomorrow 3A message from the Governor 4History in the making 4Meet the innovators 6-8Around the booths 9-13Market forecast: subsea 14Continental calling 15Talking points 15Lost in translation 16

www.technip.com

Over 25 years umbilical design & manufacturing

experience

Visit us at Booth 2741

281-820-5332

Booth # 1605

• MWD Pumps• Ring Gaskets• Pressure GaugesAnd Now...• Repair ServicesOTC .05 SHOW DAILY

Welcome to OTC .05 This is a busy time for all of us. The industryis booming, and OTC’s attendance andexhibition are a direct reflectionof our successes. We’re allmoving at a fast pace to sustainthe constant research anddevelopment occurring in theoffshore oil and gas industry.

OTC offers the perfect venueto combine all of our yearlongbusiness trips and othermeetings into four compactdays. It is an incredibly efficientoption to meet with hundreds ofindustry leaders, to explorebusiness opportunities, tocollect sales leads and to learnabout new technologies that will last you forthe next 365 days.

Not only will OTC provide you withpractical knowledge and introduce you tonew technologies, but you can enjoy manyfun, social activities throughout theconference with your colleagues. OTC offersyou opportunities to interact socially with

other industry professionals living half aworld away.

Join me at the ballpark on Tuesday night,for instance, when I throw out the first pitchas Major League Baseball’s Houston Astros

take on the Pittsburgh Pirates.You also can enjoy live music andgreat food at the outdoor exhibits.If you are new to Houston, takeadvantage of the many excitingattractions around the city. Visitthe City of Houston booth in thelobby to find out all there is to seeand do.

During your time at OTC, you’llhave the opportunity to learn andto network. I hope you will pauseand reflect on this vibrant timewe are experiencing and thepromising future ahead of us. As

an integral part of the offshore industry,OTC will continue to showcase the latestoffshore developments. It is a privilege tohave served as the chair during such a robustperiod.

I hope to meet you during the next few days!● Rod Allan is director of technical services inTransocean Offshore’s Eurafrican unit.

A sea of resources, an ocean of knowledgeA message from Rod Allan, OTC .05 chairman.

Mayor Bill White. Gaurdie Banister, Jr. Lisa Stewart. Ken Arnold.

Early to riseFOR THE EARLIEST RISERS,OTC IS OFFERING atten-dees a chance to start theshow on a full stomachwith a breakfast sessionat 07.30. Centered on apresentation by Nielsen-Wurster Group chiefexecutive officer PatriciaGalloway (pictured) onethics and how ethicalbehavior manifests itself in everyday life, thebreakfast session aims to address professionalethic questions facing engineers today in theinternational offshore arena includinglicensure, corruption and bribery and sustain-ability concepts in engineering projects.

As an added incentive, attendance in thissession will also satisfy ethics requirement forthe Professional Engineer’s license. Certificateswill be distributed at the close of the session.

OTC .05 SHOW DAILY

Safety firstTHE INTERNATIONAL ASSOCIATION OF OIL & GAS

Producers (OGP) will tomorrow unveil itslatest safety report. Based on analysis ofalmost 2.3 billion work hours of data –thought to be the largest database everused to gauge the industry’s safety record –OGP’s Safety performance indicators 2004covers fatalities, lost time injuries andtotal recordable incidents as reported by 37

companies operating in 78 countries.OGP, which has been publishing an

annual review of upstream global safetyperformance since 1985, says the report isa perennial attempt to discover ‘whetherthe industry is getting better – or worse – atensuring that staff and contractors returnto their families safe and healthy whentheir shifts are over’.● Safety performance indicators 2004 will belaunched in Room 300 of the main conferencecentre tomorrow at 08.30. Space is limited to 200.

THE WINNER OF THE AMERICAN SOCIETY OFMechanical Engineers’ Woelfel Best MechanicalEngineering Achievement Award will beannounced tonight at a reception in the JPMorgan Chase Tower.

Finalists in the 22nd running of thisprestigious annual technology prize are:● Viking Technologies/Viking Engineering(Booth 4441) for the Unirough system;● Varel International (Booth 1470) for its DrillOut Bicenter;● Control Flow’s WesTech Heavy Machinery(Booth 3541) for its Portable Drill StringCompensator;● Seacon Advanced Products/Lockheed Martin(Booth 4153) for the Hydralight; and ● Pilot Drilling Control (Booth 2644) for its

Harmonic Isolation Tool.The ASME’s Woelfel award recognizes a

product, device or system displayed at OTC that‘best reflects innovation and/or practical use ofmechanical engineering in solving problems,improving design or maximizing performance’.

Last year Halliburton took home top honorsfor its ‘DepthStar Tubing – RetrievableSubsurface Valve’.

ASME may also present the WoelfelDistinguished Innovation Award, which thejudges award at their discretion each year for aspecific innovation as contrasted with thelarger system innovation in the AchievementAward. Last year the Distinguished InnovationAward went to Remora Technology for itsHiLoad LNG Regas Terminal.

Woelfel winner in the wings

2 OTC .05 SHOW DAILY05.02.05

Norse Cutting & Abandonment● C100 H2S scavenger mixer (offshore H2Sremoval) – ProPure AS● PressureXpress pressure-while-loggingservice – Schlumberger● Continuous circulation system (CCS) –Shaffer● Optical flowmeter – Weatherford

‘In its second year, the Spotlight on NewTechnology program continues to serve as astage to highlight the most innovative andsignificant offshore developments during theyear,’ says OTC .05 chairman Rod Allan. ‘Theserecipients demonstrate the increasing technicaledge that is required to explore and produce inever-increasing water depths, and more remoteand hostile environments. The productsrecognized in this year’s Spotlight program willhelp bring offshore development to new depths– depths that just a few years ago seemedimpossible.’● A stand-by-stand guide to the technologiesdeemed to have satisfied the OTC .05 judgingpanel’s selection criteria appears on pages 6-8.

In thespotlightFOURTEEN PRODUCTS ON DISPLAY THIS YEAR HAVEbeen selected for special recognition under theOTC .05 ‘Spotlight on New Technology’program. They are:

● RMR riserless mud recovery system: a dualgradient tophole drilling system – AGR Subsea● Stepped diameter tendon – Aker Kvaerner● The Cameron DC all-electric subseaproduction system – Cameron● 15k subsea safety system – ExproInternational● CaTS cableless telemetry system – ExproInternational● PoroFlex variable reach annular barrier tool

– Halliburton Energy Services● Altosonic III ultrasonic flowmeter forcustody transfer – Krohne● Carbon fiber rod utilization within subseaumbilicals for axial stiffness enhancement –Kvaerner Oilfield Products● LNG Smart vaporization – MustangEngineering● Abrasive water jet cutting (AWJC) system forsevering multistring conductors below seabed –

FasteningSolutions for theMarine Industry

Visit booth #1906

FasteningSolutions for theMarineIndustry

WiFi For the e-maildependent . . .THE TECHNOLOGY SAVVY WILL BE

given access to their ever-cruciale-mails via a free wirelessnetwork in the lobbies of ReliantCenter.

Attendees will be able toconnect online between sessionsusing their badge number.

OTC honors Vandiverand spars teamTHIS YEAR’S OTC DISTINGUISHED ACHIEVEMENTAwards goes to leading academic and structuraldynamics consultant Professor J Kim Vandiver,for his pioneering work in the area of flow-induced vibration, and to the teaming ofoperator Kerr-McGee and contractor Technip,for their success in delivering three gen-

erations of Gulf ofMexico spar floatingproduction systems innine year.

Vandiver (picturedleft) is professor ofmechanical and oceanengineering and dean ofundergraduate researchat Massachusetts Insti-tute of Technology. Amember of MIT’s oceanengineering facultysince 1975, Vandiver isno stranger to OTC-

related awards. He was the first recipient of theprestigious Arthur Lubinski prize for the bestmechanical engineering paper back in 1984.

The Kerr-McGee/Technip teaming’s third-generation cell spar at Red Hawk (pictured top),following on from their earlier innovative workon the Neptune and Gunnison spars, isrecognized as having significantly reduced theeconomic industry reserve threshold forstandalone deepwater field developments.● The award winners’ achievements will beacknowledged in a special multi-media tributeduring tomorrow’s Awards Luncheon.

1153

05-OF-121

It’s about pressure.

Visit us in Booth 2505 at OTC and learn how we can help youreduce risk and mitigate uncertainty.

www.oilfield.slb.com/otc

In every field, pressure is challenging to predict with accuracy. You buildyour game plan around a prediction—and hope you have it right.

How do you deal with such a moving target? The challenge is keeping aclose eye on pressure across all your technical domains. Schlumberger hasthe experience and technologies to help you handle this dynamic situation:in the last year alone, we've introduced eight pressure-specific services. Weunderstand the big-picture impact of uncertainty on your operations.

It’s about predicting pressure to plan how to drill safely. Measuring it whileyou drill. Modeling it to plan your field development. And monitoring pressureto produce more, sooner.

It’s about reducing uncertainty. The more you know, the better equipped youare to gauge your next move.

3OTC .05 SHOW DAILY05.02.05

Energy inthe roundOTC .05 KICKS OFF THIS MORNING AT 08.30 WITH ANinvitation-only Energy Roundtable sessionlooking at financing offshore exploration andproduction.

According to a recent International EnergyAgency report, the E&P sector will need $4 trillion to sustain current production levels.Although oil companies are currentlyresponding with increased production, asdemand increases from developing nations,operators may struggle to keep up as deepoffshore projects that have the potential tosatisfy this need have long development timesand costs will continue to rise.

Speaking to this topic will be Randall &Dewey Partners chief executive officer ClaireFarley, Wood Mackenzie senior vice presidentSimon Frame, Petrie Parkman & Co chairmanThomas Petrie, and Pickering Energy Partnerspresident Dan Pickering. Institut Francais duPétrole chairman and CEO Olivier Appert willmoderate the roundtable.

On the menu tomorrowHIGHLIGHT OF DAY TWO AT OTC .05 WILL BE THEannual awards luncheon.

Giving the keynote address ‘The Challenge ofEnergy Development in an InterdependentWorld’, ChevronTexaco vice chairman PeterRobertson will discuss the foresight,cooperation and technology that the oil and gasindustry needs to muster as we move beyond

the era of ‘easy energy’.This year the Distinguished Achievement

Award for Individuals goes to MassachusettsInstitute of Technology Professor J KimVandiver for his numerous technicalbreakthroughs in the field of vortex-inducedvibrations. Kerr-McGee Oil & Gas and Technipshare the Distinguished Achievement Award forOrganizations for their global relationship thathas pioneered and delivered three generations

of spar floating production systems inside nineyears.

General sessions include ‘Best Practices inLocal Content Initiatives’ and ‘Demographics inOur Industry – Addressing the UpcomingPersonnel Shortage’, while panel sessions willtake on the topics of ‘Collaboration AmongOperators and Contractors in Deepwater andUltra Deepwater Fields’ and ‘Digital Energy:Case Studies Explore the Value Proposition’.

TODAY AT OTC .05

Claire Farley. Dan Pickering.

Topical luncheonsTHERE ARE FOUR TOPICAL LUNCHEONS ON THEOTC .05 agenda today.

Simmons & Company Internationalchairman Matt Simmons has titled hispresentation ‘The Big Surprises in 2005’ as helooks over the issues that were not visible onanyone’s radar screen or planning board as the2004 OTC came to a close and attempts to castsome light on why these events came as asurprise to energy industry leaders.

Industry Canada energy and marinedivision director general Bruce Bowie willprovide an overview of the ‘significantchallenges and future potential’ of easternCanada offshore as he discusses recentdevelopments and describes measures beingimplemented to encourage new investment,maximize industrial opportunities andsupport the progress of the province that ishome to the Hibernia, Sable, Terra Nova andWhite Rose developments.

‘Innovative approaches to gathering systemsfor producing wells in deepwater’ is the topicthat will be addressed by Intec Engineeringchief executive officer John Reed as heconsiders the role long-distance deliverymanagement needs to play as the industryworks to reach and effectively producehydrocarbon deposits farther and farther fromsignificant infrastructure – particularly asmany of these reserves are smaller and tend tobe located long distances from productionfacilities.

The hard reality that the megamergers ofthe late-1990s led to a decline in the amount ofmoney industry spent on exploration andseismic, drilling and the associated technology development is exercising the minds of many in the industry including BP’stechnology vice president for explorationJames Farnsworth. In his presentation,Farnsworth will focus on the growingemphasis on renewal of the industry’sreserves base through exploration andexploration technology development and the‘more aggressive approach’ to R&D that hasbeen taken by majors in several key instancesin recent times.● All luncheons run from 12.15-13.45.

are exhibitingat OTC

UK businesses

You can find your global business partners at blocks2241, 2341, 2441, 2541 and 2641

4 OTC .05 SHOW DAILY05.02.05

A DRILL BIT VALUED AT $40,000 IS AMONG THE NEWfeatures on display in the Houston Museum ofNatural Science’s Wiess Energy Hall, whichreopens this week following extensiverenovation work. The permanent exhibit,showcasing the application of scientific

concepts and advanced technology in the oil andgas industry, is open to OTC attendees fromtoday and to the public from Friday.

Donated by Varel International, the bit is a6in x 7in x 43/4in MBC58, a unique, patent-pending one-piece matrix designed bicenter

which passes through a 6in diameter wellbore,drills a 7in diameter hole, and allows 43/4intools immediately above the bit.

Jim Nixon (pictured), president and CEO ofVarel, whose Houston and Tarbes, Francefacilities manufacture the MBC series bits in sizes up to 171/2in

reamer diameter, commented: ‘The WiessEnergy Hall is an icon to the Houstoncommunity, dedicated to the preservation andeducation of the global oil and gas industry. Thetimely remodel allowed us the opportunity to

contribute some veryprogressive technology.As a company withmore than 60 years inthe drill bit business, weare excited to be a partof this prestigiousdisplay.’

Paul Bernhard, whoproject managed thehall’s recent makeover,added: ‘We are delightedto accept this generousdonation. The newbicenter drill bit from

Varel is a great example of some of themost advanced drill bit design today. It isa nice complement to our newcomputer animation featuringthe latest drilling technology.’

Since it first opened in 1994,the Wiess Energy Hall has setthe global standard formuseum displays devoted tothe energy sector. Featuresof the recent renovationinclude new, photo-realisticanimation and 60in plasmascreens controlled by 15in touchpads. Updated content includesextreme drilling in remote areas of theworld; underbalanced drilling; expandabletubular casing; coiled tubing drilling; through-tubing rotary drilling; and extended-reach anddesigner wells.

‘The entire exhibit is dynamic, from thevisitor-controlled wall-size projections to thetouch-screen control panels that allow visitorsto access multiple levels of information aboutany energy topic imaginable,’ said Joel Bartsch,president of the Houston Museum of NaturalScience. ‘Everything is bigger, brighter andmore fun – even the labels are animated.’● For tickets, or more information, visitwww.hmns.org or call +1 713 639 4629.

A bit of history in the making Entrance tothe newlyrenovatedWiess EnergyHall with(below) thedonated bitfrom Varel.

As Governor, I am pleased to extend greetings to allin attendance at the Offshore Technology Conference.

I have every expectation that this conference willonce again be an overwhelming success. Asaccomplished professionals, you will have anopportunity to network and to share the expertisenecessary to meet and excel at emerging challengesand opportunities.

This great nation has in large part been builtthrough the innovation and enterprise of the menand women who have worked tirelessly to build theoil and gas industry. Its prominence has been abackbone of our economy, helping to createopportunity and prosperity.

Since 1969, the Offshore Technology Conferencehas promoted the development of offshore resourcesin the fields of drilling, exploration, production andenvironmental protection. Over the years, you haveplayed an important role in furthering theindustry’s success, and I commend yourcommitment.

To those of you from out of town, Houston isrenowned for its heritage and legendary for itshospitality. I encourage you to explore and enjoy themany attractions that this fine city offers – there issomething here for everyone.

Anita joins me in sending best wishes for asuccessful conference.

A message from Rick Perry, Governor of the State of Texas. Bicenter bitsHistorically, bicenter drill bitshave been used to pass througha smaller wellbore and drill anenlarged wellbore. Varel hasenhanced the application ofbicenter bits with its patent-pending drill-out technologyfeature, AFB (Advanced ForceBalancing) cutting structure, andCasing-Saver cutter technology,features designed to ensure thatno casing damage occurs duringdrill-out, extended pilot bit lifeand reliable directionalcharacteristics (Booth 1470).

Maximum reservoir performanceWant to make the most of your valuable oil andgas reserves?

Roxar’s integrated technology solutions and serviceshelp companies of all sizes realize the full economicpotential of their oil and gas resources.

• Innovative modeling and simulation software• Downhole monitoring and control systems• Reservoir production multiphase metering• Reservoir and production consultancy

Roxar’s leading-edge technology solutions fromreservoir interpretation through to production &process meet the changing needs of users in managingthe entire reservoir lifecycle.

See us at OTC - Booth 5425

www.roxar.com

ABB helps you operate your oil and gasbusiness the way you want.

As a world leading automation supplier to theOil and Gas industry, ABB understands yourchallenges, whether in the field, on a platform,at the terminal, along the pipeline, in therefinery, or in the boardroom. Our solutionshelp you to produce, process, transport, store,and distribute hydrocarbons; eliminate losses;and meet strict government regulations.Every solution provides backward compatibilityto existing systems, an upgrade path tointelligent enterprise management andplanning, and maximum return on investment.

Analytical instruments…precision measurementequipment…electrical systems… integrated

telecommunications… security devices andsystems… information management – we offerthe best of our own and third-party productsand applications for your entire supply chain,throughout your project’s lifecycle.

Stop by ABB Booth #2765 and see our latestsolutions for the Oil and Gas industry:

SafetyLNGOffshore Power TransmissionTelecommunicationsDrilling

ABB Solutions for the Oil & Gas industry

www.abb.com/oilandgas

Talk to the ABBExperts at OTCin Booth #2765.

Special presenta-tions will be giveneach hour duringOTC. Stop by theABB Booth fordetails and aschedule.

www.chevrontexaco.com/technologyintegration Turning partnership into energy.™

When it comes to operating an oil field, what happens above

the ground is just as important as what happens below. That’s

why at ChevronTexaco we use a space-based technology called

hyperspectral imaging to minimize an operation’s effect on the

environment. With it, we can see far more of the electromagnetic

spectrum than is possible with the human eye in order to create

a complete environmental map of a site. This allows us to

decide where to place wells, pipelines and facilities with minimal

disruption to delicate ecosystems. We also remain vigilant by

using this technology to monitor the operation’s impact over

time. Protect what we have on earth from a perch high above it?

What a beautiful idea.

©2005 ChevronTexaco Corporation. ChevronTexaco is a trademark of ChevronTexaco Corporation.

How do we help to keep the world beautiful?

We get help from a higher power.

dual gradient technology for the job with itsRMR (riserless mud recovery) system. The RMRcollects the well return from the openholesections and thereby enables reuse of topholedrilling fluid and controlled handling anddisposal of drill cuttings. AGR reckons its RMRtechnology will allow the drilling of wells thatmay not otherwise have been possible, whilealso mitigating shallow geohazards, facilitatingthe use of engineered fluid systems, eliminating

OTC .05 SHOW DAILY’S STAND-BY-STAND GUIDE TOthe products and systems selected for this year’s‘Spotlight on New Technology’ recognitionprogram:☛ Booth 4331 – AGR SubseaRMR riserless mud recovery systemRather than use the traditional ‘pump anddump’ sacrificial mud systems for drilling thetophole or open hole sections of a subsea well,AGR Subsea has instead opted to adapt riserless

6 OTC .05 SHOW DAILY05.02.05

emissions, drilling deeper topholes to savecasing strings and offering significant costsavings.

☛ Booth 1125 – Aker KvaernerStepped diameter tendon The stepped diameter tendon provides ananswer to a question that has beenasked for many years: how to extendthe commercial application of TLPs towater depths beyond 4000ft. Thechallenge lies in that conventionalsteel tendons become heavy in thedeeper waters and thereby consumepayload of platform. Earlier conceptshave represented step changes inpressurized steel tendons or compositematerials. According to AkerKvaerner, the stepped diameter tendonis merely applying well-provencomponents in a new fashion. Thelower sections are made up of small-diameter, thick wall pipe that canwithstand the hydrostatic head. Theupper sections are made up of large-diameter, thin wall pipe that hasexcess buoyancy to carry to the lower sections.

☛ Booth 3931 – Expro International Group15k subsea safety system The landing string, a critical component in theprotection and safety of personnel, the well andthe rig, is the focus of Expro’s 15k subsea safetysystem. The system is designed to provide wellcontrol function and disconnect capabilitiesduring well installation, workover, interventionand well test operations using landing stringsthat provide for safe, low-cost well re-entry. Thistechnology uses a patented high integrity ballvalve system that enables the company’slanding strings to provide reliable cut and sealability in a single device. The interventionstring provides the dual barriers requiredduring worker operations on horizontal subseachristmas trees over a live well. Each system iscertified to deal with all intervention situationsand will seal after cutting coiled tubing and/orlogging cable used for well intervention.

☛ Booth 3931 – Expro International GroupCableless Telemetry System (CaTS)In an effort to remove dedicated cabling orinstrument lines for monitoring reservoirs and

What’s newand whereto find it

☛ Booth 1641 – Cameron CameronDC all-electric subsea production systemThe CameronDC all-electric system is the firstsubsea system powered by direct current and notby hydraulics.

The advantage of this switch is OPEX/CAPEXsavings, actuation speed and accuracy, high-speedcommunication and real-time conditionmonitoring, less environmental risks and moresimplified components. The system, whichconsists of a surface power and communicationssystem, power/communications transportationsystem, subsea actuation (valves and chokes),and controls system, is capable of operatingefficiently in deepwater and at record distancesfrom host facilities along with new technologies such assmart wells and subsea processing.

SPOTLIGHT ON NEW TECHNOLOGY

7OTC .05 SHOW DAILY05.02.05

wells, Expro has developed a system that allowsreal-time information to be recovered fromremote sensors using the available conducting(steel) well infrastructure. According to Expro,the Cableless Telemetry System, otherwiseknown as CaTS, offers operators advantages inthe monitoring and control of wells withcompletion configurations that may requiredownhole wet connects to use more traditionalelectronic or optical telemetry systems. CaTSallows for real-time data, the flexibility fordifferent sensor types, greater ease inconfigurations, minimal completion equipmentpenetrations and no cable to the surface forcommunication.

☛ Booth 3317 – Halliburton Energy ServicesGroupPoroFlex variable reach annular barrier tool

Halliburton’s PoroFlex expandable completionsystem’s variable reach annular barriertechnology (ABT-VR) provides zonal isolationcapability in open hole completions, allowingthe use of production management tools andtechniques that previously could only bedeployed in cased hole completions. Thesetechniques include production and injectioncontrol using downhole control valves or slidingsleeves, stimulation and conformancetreatments.

☛ Booth 2070 – Krohne Altosonic III ultrasonic flowmeter for custodytransferDesigned to replace turbines and PD meters, theAltosonic III is a dedicated three-beam liquid

ultrasonic flowmeter for lighthydrocarbon products that

offers .15% accuracy incustody transferapplications. Krohnesays the metereliminates problemswith clogging, scalingor blockage whilereducing pressure loss.

And with no movingparts, lifecycle costs are

dramatically reduced sincelittle to no maintenance or

recalibration is necessary. TheAltosonic III is bi-directional and the threebeams offer built-in redundancy in the unlikelyevent of a sensor failure.

☛ Booth 1125 – Kvaerner OilfieldProductsCarbon fiber rod utilizationwithin subsea umbilicalsFar more efficient than steel dueto its high stiffness-to-weightratio, carbon fiber technologyhas been introduced for use inumbilicals in extreme waterdepths – 2000m and beyond. Thecarbon fiber rods are used to

enhance the axial stiffness of the cross sectionin the umbilical. The rods are incorporated inthe umbilical along with the other functionalelements, such as steel tubes, electrical cablesand fiber optics.

KOP reckons another advantage of thisdesign is that the rods are in direct actionwithin the umbilical, which contributes to thestiffness without the delay of break-in that istypical for aramid armoring.

☛ Booth 1353 – Mustang EngineeringLNG Smart Vaporization Field tests have shown that the LNG SmartVaporization process used to efficiently andeconomically regasify LNG can reduce fuel gasconsumption and NOx and CO2 air emissions byas much as 90% across a wide range oftemperatures and humidity, resulting insignificant operating cost savings and benefitsto the environment. Specially designed to use

commercially available equipment, the processis equally at home in new or existing facilities,either onshore or offshore. Key components areindustry-standard fin-fan air exchangers usedwith downward flow and LNG vaporizer heatexchangers. The process is generally used inparallel with Submerged CombustionVaporizers (SCVs) significantly lowering theirannual gas consumption and NOx and CO2

emissions. The process also can be used in lieu

SPOTLIGHT ON NEW TECHNOLOGY

Visit booth: 3931

strengthindepth.com Email: info@exprogroup.com

Cutting Underwater Technologies LtdWorldwide Representative of Tecnospamec

CUT Group - New USA Premises

www.cut-group.com email cut@cut-group.com www.subbottomcutter.com

“Any

Anywhere”

....

Worldwide offices

Aberdeen Genoa Houston Stavanger Singapore Rio

CUT UK are the world leaders in subsea decommissioning using Diamond WireCutting.

Standard Diamond Wire Cutting Machines (DWCM) range from 10” OD up to 106” OD.

There are no limitations due to material type and configuration, size of object / structure

to be cut nor are there any limitations due to the sea water depth.The deepest ‘cut’ to

date being performed at -2434m sea water depth. CUT boast a 100% ‘cut’ guarantee for

completion of the cutting task.

g

OTC 2005 See us at: The Scottish Pavillion Booth No: 2379

The’ Subsea Diamond Wire Cutting Specialists

The CUT group are proud to announce the expansion of their USA operations. CUT Inc

have relocated to Houma, Louisiana where they have a 70,000 sq.ft operational base

under the management of Giorgio Coopmans. The base is situated at 175 Thompson

road, Houma LA. Visitors are welcome to view our range of Diamond Wire Cutting

Equipment. Please contact Giorgio Coopmans. Tel: +1 985 580 3856 or email

giorgio.coopmans@cut-group.com.

To the Winners of the 2005 Scottish Offshore Achievement AwardsIn its 20th year, the prestigious Scottish Offshore Achievement Awards recognize the outstandingachievements and contributions made by Scottish businesses in the Offshore Energy Sector. Thesix companies awarded are true examples of Scottish Innovation and Excellence. Please visit allof the winners at booth #2377 during the Offshore Technology Conference:

Export Achievement Award: PSL Energy ServicesSmall Company Award: impROV LtdHealth, Safety and Environment Award: Universal SodexhoMost Promising Company Award: Peak GroupSucceeding Through People Award: Petrofac Facilities ManagementInnovative Technology Award: Offshore Hydrocarbon MappingRising Star Award: Jamie Cochran of PSL Energy Services

For more information about the Scottish Offshore Achievement Awards, or if you would like more information aboutthe companies awarded, please visit: www.scottish-enterprise.com/energy

Congratulations!

Put your subsea projects in safe hands

SAFE CLEAN SMART FAIR ANYWHEREWe provide innovative, technicallyadvanced engineering solutions that are expertly conducted fromconcept to completion.

Visit us online at www.subsea7.com

B R A Z I L G U L F O F M E X I C O N O R W A Y S I N G A P O R E U K W E S T A F R I C A

8 OTC .05 SHOW DAILY05.02.05

SPOTLIGHT ON NEW TECHNOLOGYof seawater vaporization technology, forexample Open Rack Vaporizers, reducing thepotential harmful effect on marine life as theonly by-product is fresh water that can easily betreated for potable consumption.

☛ Booth 4255 – Norse Cutting & AbandonmentAbrasive Waterjet Cutting (AWJC) system Abrasive Waterjet Cutting Hailed as a safe, fast,cost-effective and environmentally friendly

method for cutting multi-string casing in plugand abandonment and conductor slot recoveryprojects, Abrasive Waterjet Cutting tooling canbe quickly mobilized to run downhole through arotary table, from a skid or platform deck andfrom a vessel simultaneously with rigoperations. Norse Cutting & Abandonment saysits cold-cutting technology produces clean,level, even cut edges, enabling easier and saferhandling of the sections to be recovered and an

ideal surface forlanding out a whipstockfor slot recovery. Thesystem is powered by ahigh-pressure pumpand mixing chamber,delivering a powerfuljet of waterborneabrasive particles through an umbilical to thenozzle in the cutting tool. The tool and allcutting parameters are controlled andmonitored through real-time computer-baseddata tracking. Proven in water depths of 350ft,the system is capable of cutting five stringconfigurations, cemented or partly cemented, ina single pass.

☛ Booth 4331 – ProPure ASC100 H2S scavenger mixer (offshore H2S removal)

A new spin on conventional H2S scavengingtechnology, the ProPure system helps reducecosts and is said to be more environmentallyfriendly. H2S scavenger is supplied in acontrolled manner to an annular injectionchamber whereby, through patented pipegeometry, the injected scavenger solvent istransformed into minute droplets and almostinstantly atomized, resulting in an immediaterapid mass transfer of H2S to the scavengingagent, explains ProPure. The complimentaryC100 injection mixer has a high turndown ratioin scavenger injection and helps avoid cloggingand malfunction. The in-line concept isdesigned to support successful pipeline piggingat all times and requires minimal maintenance.Operating units in the North Sea report typicalH2S scavenger consumption levels of 2400-2600USgal/d associated with conventional chemicalinjection methods were reduced by 30-35% afterswitching to the ProPure C100.

☛ Booth 3741 – Shaffer Continuous Circulation System (CCS) For years drillers have sought the capability ofcontinuous fluid circulation in order tomaintain constant bottom-hole pressures,enhancing drilling performance while reducingnon-productive time. The ContinuousCirculation System (CCS) achieves this goalthat allows drilling fluid circulation to bemaintained while making connections withconventional drill pipe during the drillingprocess. Suitable for integrating into a singlesystem, including iron roughnecks, blowoutpreventers, power slips, mud manifolds andsnubbing units, the CCS makes continuouscirculation during connections possible bycreating a sealed pressure chamber around thetool joint to be broken. Pressurized drillingfluid is introduced into this chamber equalizingthe pressure inside and outside of theconnection. Shaffer says the self-contained CCS,designed to work in conjunction with the rig’srotary table and top-drive drilling system, canbe installed on almost any top-drive equippedrig in a matter of hours.

☛ Booth 2505 – SchlumbergerPressureXpress pressure-while-logging service Unlike conventional formation testers that alsoincorporate fluid sampling capabilities, thePressureXpress reservoir pressure-while-logging serviceis a wireline tool that has been developed specifically forformation pressure and fluid mobility testing.

According to Schlumberger, the streamlined design ofthe high-quality pressure/mobility testing tool enablesmeasurements as low as 0.004mD/cp to be taken in afraction of the time required by multifunctionalformation testers, minimizing the risk of differentialsticking and subsequent fishing operations andreplacement costs. One customer reported that employingPressureXpress in the field had reduced its well costs by30%, overall well cycle time by 65% and increased fieldproduction by 30%.

☛ Booth 5033 – WeatherfordOptical FlowmeterThe first flowmeter to use sonar optical technology,Weatherford’s Optical Flowmeter is said to provide greateraccuracy, reliability and stability than traditional electronicmeters for real-time downhole flow measurement of liquidand gas. It is designed for permanent downhole installationand is deployed as part of the production tubing during thecompletion.

The Optical Flowmeter features an innovative array ofspatially distributed fiber optic-based sensors to measure thepropagation of pressures associated with turbulent flows andacoustic signals in the flow. According to Weatherford, theflowmeter’s benefits include zonal production allocation, earlyidentification of production decline, direct determination ofthe productivity index, and fewer surface well tests andsurface facilities.

Solutions for the Oil & Gas Industry

s

Integrated solutions.For the best process flow ever.

Get the big picture. For more information and brochures visit us now:

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� Automation and Control

� Rotating Equipment

� Power

� Safety

� Industrial IT

� Life-Cycle Services

Under today’s rough competitive conditions only an integratedapproach leads to the best process flow and to maximum perfor-mance. Our offer includes all products, solutions and services youneed to increase productivity all along the line:

See you at:OTC 2005Booth 3671

E100

01-T

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1-76

00

9OTC .05 SHOW DAILY05.02.05

☛ Booths 3317 & 1276 – Halliburton/Petronas

Technical excellence on tapCOLLABORATION BETWEEN HALLIBURTON ANDPetronas has resulted in the establishment of ahighly specialized upstream oil and gas trainingfacility on the site of Malaysia’s UniversitiTeknologi Petronas (UTP). The new ‘technicalexcellence center’ (TEC), providing trainingsupport in geology and geophysics to both newgraduates and oil industry professionals, is thefirst of its kind to be set up by Halliburtonoutside of North America.

‘One of the main challenges that theexploration and production industry faces is itsaging expertise and the need to develop itshuman capital to extract the best out of thetechnology and its assets,’ says Dr RostiSaruwono, vice president of Petronas’education division. ‘Petronas is thereforelooking to industry service providers to assistus in training and developing local resources.’

Mark McCurley (pictured), a vice president inHalliburton’s production optimization divison,adds: ‘This is a major commitment by

Halliburton for atraining facility in theeastern hemisphere,which is the largesteconomic and energyconsumption growtharea in the world today.’The collaboration is awinning strategy forboth companies, accor-ding to McCurley. ‘Asthis generation ofemployees begins reti-

ring over the next five years, the need to investin the training and development of the youngergeneration becomes crucial.’

Like the company’s other three TECs – inTexas, Colorado and Mexico – the Malaysiancenter will have the latest broadband andvideoconferencing technology, allowing traineesto participate in the global lectures given bysubject-matter experts anywhere in the worldand also to interact with participants at theother TECs. The first training semester beganrecently with studies covering cementingservices, production enhancement andcompletion tools. The center currently has atotal of 26 students from both Halliburton andPetronas from Asia, Africa and the Middle East.

☛ Booth 1641 – Cooper Cameron Valves

Putting it all togetherTHE COOPER CAMERON VALVES (CCV) DISPLAY ISbigger and bolder at OTC .05 as a result of itspurchase of the flow business of PCCCorporation, including General Valve, PCC ballvalves, TBV, Techno, AOP Industries and CWValve Services earlier this year.

Hailing the acquisitions as ‘establishedbrands that complement our own’, CCVpresident John Carne said: ‘They will address awider set of needs for all our customers, in theoil and gas and associated industries.’

Carne added that the CCV Engineeredproducts division, let by Willy Findlay, now had‘three true market leaders’ in its portfolio: theCameron fully welded ball valve, nowcomplemented by a complete line of bolted-bodysizes and trims; the Orbit rising-stem ball valveline, and the double-block and bleed TwinSealline from General Valve.

And added to the well-known WKM, Demcoand Nutron brands of CCV Distributedproducts, under Jim Wright, are theMassachusetts-based TBV – a high-end ballvalve maker with severe service and cryogeniccapabilities – along with Techno check valvesand AOP products.

VALVSERV, the CCV aftermarket parts andservice business led by Duane Morgan,continues to provide OEM aftermarket servicesfor this expanded line-up from its 17aftermarket service centers worldwide.

☛ Booth 4405 – Nalco

Tested to extremesSUGAR LAND, TEXAS-BASED NALCO HAS EXPANDED

its corrosion inhibition line to include a familyof products designed, tested and approved forextreme production challenges, includingdeepwater, high pressure, high H2S content, andcold temperatures.

The Enercept Extreme line of corrosioninhibitors was created in response to theindustry’s need for high performance,environmentally friendly products that are ableto stand up to the harshest production

environments, notes Gary Cooper, marketingmanager for Nalco’s asset integrity team.

‘The era of easy oil and gas production isover,’ he adds. ‘Enercept Extreme products aredesigned on a heritage of continuousimprovement and rigorous testing. Mostimportantly, they are field-proven in severeenvironments – from Alaska, to the North Sea,to the deepwater coast of Brazil – prior tocarrying the designation.’

AROUND THE BOOTHSwww.peterbrotherhood.co.uk

Designers and manufacturers of steamturbines and reciprocating gas compressors for offshore and FPSO applications.

Visit Stand 2547 for more information.

Peter Brotherhood Ltd

© 2005 Halliburton. All rights reserved.

FasTestTM real-timereservoir evaluationand fluid samplingsystem.

FasTest is the new option for drillstem

testing—better reservoir information than

wireline, less costly and time-consuming than

full-scale well testing. FasTest captures downhole

PVT samples and yields quick calculations of

permeability, skin, and fluid flow rate. And with

our Acoustic Telemetry System (ATSTM), your

experts and Halliburton engineers can analyze

and control the test in real time—at the rigsite

or from the office—and have useable data

within seconds. Best of all, FasTest produces

no hydrocarbons to the surface and no

flaring. Tested and proven in the Gulf of Mexico

and offshore Brazil. Now available in areas

where reservoir evaluation and fluid sampling

are required.

Halliburton has the energy to help. For complete

details, email us at welltesting@halliburton.com

or visit us online at www.halliburton.com.

Unleash the energy.™

HALLIBURTON

Production Optimization

10 OTC .05 SHOW DAILY05.02.05

☛ Booth 3125 – Maritime Pusnes

Underwater fairleadchain stoppers for Dalia FPSOTWELVE FAIRLEAD CHAIN STOPPERS (FCS) HAVE BEENdelivered by Maritime Pusnes for installationunderwater on the hull of the Dalia FPSO, dueto go into service for Total on deepwater Angola

block 17 in the second half of 2006.Maritime Pusnes, an Aker Kvaerner company,

was contracted by Technip-Coflexip last year toprovide on-vessel mooring equipment for theFPSO, currently under construction at theSamsung yard in South Korea.

These FCSs have gained in popularity forspread-mooring applications since they werefirst developed in 2001 for use on Brazil’sBarracuda and Caratinga FPSOs. They will be

employed during the installation and securingof the Dalia FPSO’s 12-line mooring system,which includes 114mm diameter chain.

The design involves the combination of aswivelling fairlead with a chain stopper(pictured). The stopper mechanism is located atthe end of an extended arm thereby enablingthe fairlead to more easily overcome rotationalfriction and follow the mooring line direction.Monitoring of line loads is also possible by

using load sensors located on the fairlead arms.Eight of these FCSs are currently on order

and soon to be installed on the SBX platformbeing built at the Amfels yard in Texas.● Maritime Pusnes is also working on anadvanced arctic crane offloading system forSevmorneftegaz’s Prirazlomnoye platform inthe Pechora Sea, 60km from the Russianmainland. Hydramarine is supplying the cranesfor this system, which will enable crude oiloffloading from the platform – a steel caisson in20m of water with the former Hutton TLPtopsides – over to a shuttle tanker takingaccount of the best direction with respect to ice,wind and current.

☛ Booth 4441 – Aanderaa Data Instruments

Joining forcesNORWAY’S DATAINSTRUMENT AND AANDERAAInstruments have merged to create a ‘strongertechnical and commercial’ entity under thename of Aanderaa Data Instruments.

The new-look company is focusing in themain on three business areas: oceanography,environmental monitoring and weighingsystems. Daughter companies AanderaaInstruments Inc, Mipeg Inc and Mipeg Ltd willcontinue to operate under their existing names.

AADI managing director Rune Hansen saideach area had its product focus but would infuture have access to the whole ‘so we candeliver turnkey solutions utilising our fullproduct range and expertise’.

All of the company’s products are now beingproduced by a combined manufacturing unit inBergen.

☛ Booth 4441 – CTour Process Systems

Norway’s year zeroAN INNOVATION BY NORWEGIAN WATER TREATMENTspecialist CTour Process Systems is expected tomake a meaningful contribution to theNorwegian government’s 2005 goal of zeroharmful discharges for its offshore fields.

The CTour process is based on extraction ofhydrocarbons from produced water usingcondensate from the production stream. Thecondensate acts as a solvent, extracting thewater soluble aromatic components from thewater into the condensate phase. Thecondensate and the oil particles coalesce intolarger, low-density droplets that are efficientlyseparated from the produced water by adownstream separating unit.

The proprietary technology is scheduled forfull-scale installation at Statoil’s productionfacilities at Statfjord, and ConocoPhillips in co-operation with CTour has successfully testedthe process at its Ekofisk 2/4-J platform. Thetest results contributed to ConocoPhillips’decision to move on with further studies,reports CTour. An EPCI-contract forimplementation of the CTour process isscheduled to begin by mid 2005.

☛ Booth 3063 – C&C Technologies

Third Hugin deliveredLAFAYETTE, LOUISIANA-BASED C&C TECHNOLOGIES

has taken delivery of another Hugin 3000autonomous underwater vehicle (AUV) fromKongsberg Maritime. Rated to 3000m waterdepth, this third Hugin in C&C’s AUV fleet (pictured) is slightlylonger than it predecessors and is powered by a KongsbergMaritime aluminum oxygen fuel cell battery which provides amission endurance of more than 50 hours before resurfacing. Thevehicle will feature an enhanced survey sensor suite, basicallyconsisting of multibeam echo sounder, side scan sonar, sub-bottomprofiler and conductivity, temperature depth system.

C&C Technologies also recently placed an order for a Hugin 4500(with 4500m depth rating) for delivery later this year.

AROUND THE BOOTHS

☛ Booth 4255 – Karmsund Maritime Offshore Supply

Leak test reportNORWAY’S KARMSUND MARITIME OFFSHORE SUPPLY (KaMOS) reports that the gasketit invented for leakage testing of flanged connections is finding favourinternationally, with BP, Total and Unocal (Thailand) among the latestcompanies to acknowledge the ‘huge savings’ this innovation brings in relationto cost, time and safety.

The gaskets have been used by Total in Assalayah, Iran over the past five yearsand are now specified for all the company’s major projects. BP is using thegaskets on its North Sea platforms and, through shorter shutdown periods whenrepairs need to be done, is reputedly saving up to $3 million a day in the process.

ExxonMobil has employed the KaMOS gasket on its Kizomba project to goodeffect, likewise Unocal both onshore and offshore Thailand. ‘Subsea they nowhave an opportunity to test flanges before the system is set in process, a test theyhad earlier been unable to do,’ says KaMOS.

www.ctour.com

Water treatment for the future

The unique CTour process removes dispersed oil and dissolved hydrocarbon contaminants from produced water.

For further information, contact us or visit our web site!

OTC in Houston, 2 – 5 May 2005. Norway Pavilion, block no. 4441.

• Fire and gas dampersexceeding NORSOKrequirements. Tightnessimproving during fire.

• Non-return and pressure relief dampers

• Arctic louvres for extremeconditions

HVAC for Offshore

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• A wide range of products designedspecifically for offshore applications

METS O POWDER MET HIP – Superior Materials and Design Visit us at OTC Booth 2805

Epcon CFU Technology The alternative to traditional

produced water treatment systems.

We contribute to:

Increased oil production

Enhanced return on investment

Improved environment

Epcon Offshore AS www.epconoffshore.com

Please visit us at the Norwegian pavilion Booth 4241

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12 OTC .05 SHOW DAILY05.02.05

☛ Booth 2546 – EV Offshore

The all-seeing eyeOFFERING HIGH QUALITY IMAGES OF PIPELINEinteriors of a wide range of diameters, theExcalibur camera module recently added to EVOffshore’s subsea inspection systems is hailedas ‘unique in its ability to cope with low lightsituations and to rotate continuously’.

The core element of the new system is its 360-

degree rotation capability, whichoffers unrestricted viewing to thepipewall. The camera can also befitted with a down view module,instead of the snub-nose, to allowsimultaneous down view.

Measuring just 23/8in (60mm) andweighing only 2.2kg, the Excaliburis compact enough to negotiate 3Dradius bends in pipelines with

diameters as small as 84mm. The Excalibur wasdeveloped EV Offshore earlier this year in orderto carry out a complicated emergency riserinspection deployed from a platform to waterdepths in excess of 650ft (200m).

☛ Booth 4971 – Enerpac

Pumping up the powerLIKE OTHER PUMPS IN ITS Z-CLASS FAMILY, ENERPAC’S

new ZU4 electric torque wrench pumps aredesigned to deliver ease of handling and use,higher oil flow and bypass pressure, coolerrunning and require 18% less current drawthan comparable pumps. These pumps are saidto be ideal power sources for all torquewrenches. The pumps are offered in twomaximum operating pressures – 10,000psi and11,600psi – and the reservoir capacity is 1-2 gallons.

Heavy-duty bearings extend pump life byreducing friction, reducing surface loading andlowering bearing stresses. The pump’s high-strength, molded composite shroud protectsmotor and electronics, while providing anergonomic, non-conductive handle for easytransport.

Remote control units with low-voltagependants provide additional safety for theoperator. Brush design lasts 4-times longer thancurrent designs and features an ‘auto-stop’shunt to prevent commutator damage fromnormal brush wear. Auto cycle feature providescontinuous cycle operation of the torquewrench as long as the advance button ispressed. Pumps can be used with or withoutauto cycle feature.

The LCD readout provides pressure displayand a number of diagnostic and readoutcapabilities Enerpac says have never beforebeen offered on a portable electric pump. Thepump’s 1.7hp universal electric motor provideshigh power-to-weight ratio and low-voltageoperating characteristics.

☛ Booth 7310 – Parker Instrumentation

Going with the flowPARKER INSTRUMENTATION HAS LAUNCHED A 25MMversion of its successful Pro-Bloc one-piecedouble-block-and-bleed manifold. The currentsmaller bore versions of this product familyhave found widespread application, primarilyfor connecting remote monitoringinstrumentation to process lines and pipework.

According to Parker, the 25mm full-boredesign significantly extends the applicationdiversity, by providing a high flow ratecapability unit that can form part of theprocessing system itself.

Like all Parker Pro-Bloc double-block-and-bleed manifolds, the new 25mm version ismachined from a single piece forging,eliminating many of the joints demanded byconventional designs based on discretecomponents. ‘As with existing 10mm versions,the new 25mm Pro-Bloc allows engineers tospecify a manifold solution that cansubstantially reduce weight and the number ofpotential leakage paths in a processing system,’notes Parker Instrumentation's marketdevelopment manager Brian Rice.

The large bore of the new manifolds makesthem particularly suitable for processesinvolving viscous media, or media withentrapped solids. It also makes them less proneto the blocking effects of hydrate formation inoffshore applications.

☛ Booth 5055 – JD Neuhaus

Air liftLIFTING EQUIPMENT SPECIALIST JD NEUHAUS IStargeting hazardous areas with the introductionof high-performance Profi air winches to itsrange.

Designed for safe operation in dusty or dirtyconditions, the new winches house aninnovative vane motor with integrated brakefunction, consistent with the design philosophyof offering fewer overall components inherentin the company’s chain hoist series.

Available in arange of liftingcapacities from500kg to 3000kg,the wincheshave high ropecapacities andare simple tooperate via avariable speedlevel control atthe winch. Noadditional airlubricant is required, helping to keepmaintenance costs to a minimum.

An emergency air shut off valve also servesas an additional safety feature.

The Profi Lifter 1000, one of anew range of air-operatedwinches from J D Neuhaus.

AROUND THE BOOTHS

VALUE. VARIETY. VAREL.Application-specific drill bits

for your entire drilling program

Visit us in Hall E, Booth #1470

13OTC .05 SHOW DAILY05.02.05

☛ Booth 5179 – Sea Trucks

Green light for twoJascon newbuildsCHINA’S NANTONG SHIPYARD IS TO UNDERTAKE THEhull and superstructure steel fabrication for theSea Trucks Group’s new DP3 pipelay/construction vessel, with the fleet designationJascon 18 (pictured). Confirming the agreementtoday, Sea Trucks also revealed that well-knownNorwegian naval architect Vik Sandvick hasbeen commissioned to finalize the detaileddesign based on concepts developed by SeaTrucks.

The vessel – 150m long and with a beam of37m and a depth of 15m – will have a 12 knottransit speed and be marketed worldwide laterthis year. Tenders for its completion will beissued to the yards shortly, with deliveryscheduled for the second half of 2007.

The pipelay system, based on S-layconfiguration, will be arranged below deckalong the centerline of the vessel. Jascon 18’s300t tension lay capacity can be upgraded to 600tto enable the vessel to lay pipe in over 2500m ofwater. A large unobstructed open deck will offerplenty of pipe storage with cranage facilities –main crane capacity 900t/1200t – to support avariety of construction and installationactivities in deep and shallow water. Anaccommodation facility with 400 beds will alsoenable the vessel to perform hook-up andcommissioning work.

Sea Trucks Group president JacquesRoomans said: ‘We are continuing ournewbuilding program with this state-of-the-artvessel. Only last September the group launchedits Jascon 5 DP3 pipelay/construction vessel,which has so far already completed, and verysuccessfully, two projects in Qatar and Iranwithout any downtime. She is now operating inIndia under a four-year contract with Iran’sIOEC. Our technical and commercial successwith this vessel has demonstrated that themarket welcomes the use of modern DPconstruction vessels which enhance produc-tivity and save cost.’

Plans to build a ‘baby’ version of Jascon 18have also been announced by Sea Trucks. Againoffering DP3 pipelay/construction services, thenew vessel, designated Jascon 25, will be 120min length and feature accommodation facilitiesfor up to 250 personnel, a 450t heavy lift and 50tpedestal crane and, initially, a 100t tensioner.Construction of this vessel is to be fast trackedby Sea Trucks and its 100% Nigerian sistercompany, West African Ventures, with a view toexecuting West African projects from early 2006onwards.

☛ Booth 1480 – Schilling Robotics/Sub-Atlantic

Subsea equipment firmspool their resourcesSCHILLING ROBOTICS OF DAVIS, CALIFORNIA ANDSub-Atlantic of Aberdeen, UK appear at OTC .05in the new guise of alliance partners.

Early in April, the two companies announced

they were pooling resources for sales, service,product development and marketing. Thealliance would, they said, benefit customers byproviding a wide range of subsea vehicles,vehicle components, and control systems thatcan now be purchased from a single source, andby strengthening worldwide support for allianceproducts.

Colin Millum, Sub-Atlantic’s joint managingdirector, said no other single entity offered ‘as

diverse and complete a product range’ in thesubsea intervention field. The new allianceoffers ROVs, tether management systems,communication and control systems, electricand hydraulic manipulators, tool skids,electrical and hydraulic thrusters, hydraulicpower units, valve packs, compensators, pan &tilts, rotary and linear actuators, andcable/connector assemblies. ‘Customengineering projects will expand and continue

to be a key strategic area,’ added Millum.Tyler Schilling, CEO of Schilling Robotics,

commented: ‘By pooling the technical expertiseof both companies, the alliance can enhancecurrent products and create new ones morequickly and efficiently. Our products will bemore capable, reliable, long-lasting, andefficient than competing equipment, thuslowering the cost of ownership for the life ofeach product.’

AROUND THE BOOTHS

Wellstream

A Company Committed to DeliveringFully engineered flexible pipeline systems for offshore and onshore fluid transportation.

Newcastle ● London ● Houston ● Panama City ● Calgary ● Rio de Janeiro ● Perth

www.wellstream.comVisit us at OTC - Stand 2551

Only 4 great luxury suites remain, and grouphospitality tickets are now selling fast for the

2005 season. Don’t miss your opportunity to watch some hard hitting action

at Reliant Stadium this fall. Reserve your location today!

Ultimate ClientEntertainment30 Home Games, 30 Sellouts

Call today to tour suites and discuss options in more detail,

832.667.2296or visit

We’re offering suite tours throughout the OTC Conference.

14 OTC .05 SHOW DAILY05.02.05

THE SUBSEA MARKET REMAINS ONE OF THE MOSTdynamic sectors in the offshore industry, offeringas it does a cost-effective way to monetisereserves, often fast-track and in deeper waters, ata time of high commodity prices.

The next five years is set to see a whole varietyof developments taking place across the globefrom the Barents Sea to the Australian Blightwith a mix of major multiwell deepwaterprogrammes, single tiebacks and integrated

subsea and facility schemes. All this activityleads to a total expenditure forecast in excess of$16 billion/yr, including drilling and completionof subsea development wells and all associatedpipelines and control lines.

The growth and development of West Africahas been evident for a number of years and in thesubsea sector it is forecast to command themajority share – up to 29% – of the expenditureover the next five years as new facilities comeonstream and satellite fields are tied back toexisting hubs to maintain production levels. Theregion has already seen the development ofseveral megaprojects and this trend is forecast tocontinue, providing strong demand for subseaequipment destined for projects ranging fromAkpo in Nigeria to Zinia in block 17 Angola.

Although, as Figure 1 shows, the Europeanshare of the subsea market expenditure hasdecreased dramatically from 47% in 2000 to aforecast 20% in 2009, it still remains a significantregion in terms of overall forecast expenditure.Our view of Europe extends beyond just theNorth Sea and includes the Norwegian Sea, Westof Shetland and Irish waters. However, beyondOrmen Lange and Snøhvit, there are few largegreenfield developments on the immediatehorizon that stand a chance of being developedbefore the end of 2009, as the full promise ofNorway’s Skarv, Victoria, President/Onyxprospects remains uncertain.

Still, there was a strong commitment to theregion by BP at the beginning of the year. Thecompany looks set to increase recovery throughputfrom reserves on such brownfield sites suchSchiehallion and Foinaven fields through theimplementation of additional infill drilling and theapplication of state-of-the-art subsea technology. Inaddition, the cross-border agreement achieved bythe Norwegian and UK governments appears tohave given fresh impetus to projects along theborder, such as Blane and Enoch.

Subsea to shore developments such as OrmenLange and Snøhvit are growing in significance inthe subsea market. Figure 2 shows the split oftypes of subsea developments that are due to takeplace between 2005-2009. Subsea wells connectedto a floating production vessel remain thedominant concept type. A total of 69% of allpredicted subsea wells are either to be connecteddirectly to a floating facility located on the samefield or tied back as satellite wells to an FPSOlocated on an adjacent field.

Nonetheless, fully 5% of wells are forecast to betied back to shore, with projects ranging fromdeepwater Mediterranean fields – such as Sienna,Simian & Sapphire and Abu Sir off Egypt, to thegas fields located off Australia’s North West shelfsuch as Gorgon and Jansz, to be tied back to theproposed new Barrow Island LNG plant. Thepercentage may not be large but it is growingrapidly and it is one area where the potentialknock-on impact is disproportionately large, asthe industry spends over $12.6 billion/yr of newfixed and floating production facilities.

MARKET FORECASTSSubsea’s rising starcontinues its ascentIn the first of a series of OTC .05 Show Daily reports, Infield Systems(Booth 2340) charts the rise and rise of the subsea market.

Figure 2.

Figure 1.

Our environmental offshore fluids are at the leading edge in worldwide field developments,

and our attitude says “Yes We Can.”

Visit us at Booth #7201

SM

USA: 713.472.5081 • UK: +44 (1942) 501000

Contact:Scotland Tel: +44 (0) 1224 246 700USA Tel: +1 281 646 0050

www.mdl.co.uk • sales@mdl.co.uk

See MDL on Booth No. 4905

2-5 May, 2005

Fanbeam® is the most advanced and reliable DP Positioning Sensor available in the market today. Hundreds of systems are now in dailyworld-wide use in every extreme environment. We are pleased to dealwith you direct for sales, rental or service for systems or accessories.

• Interfaces to all D.P Consoles• Low cost• Fast• Reliable• Single or multiple tracking of targets• 24 Hour support

15OTC .05 SHOW DAILY05.02.05

Welcome to Houston. Many of you havetraveled to this conference from all overthe world, and I hope that you choseContinental Airlines, Houston’shometown airline, to bring you to thisspectacular city.

While there are still a few places thatwe don’t fly to from our hubs inHouston, New York, Cleveland and

Guam, we can still get you whereveryou need to go thanks to ourmembership in SkyTeam, the world’sfastest growing airline alliance.SkyTeam’s nine member carriers,including Aeromexico, AirFrance/KLM, Alitalia, CSA CzechAirlines, Delta Air Lines, Korean Airand Northwest Airlines, offer more than14,000 daily flights to 658 destinations in137 countries. That’s more than 20% ofthe available seat miles in the world.

Not only do we offer the most service,we also offer the best service.Continental has consistently earnedawards for its superior product andexemplary customer service. Most

recently, Fortune magazine, for thesecond consecutive year, namedContinental its No 1 Most AdmiredGlobal Airline, in its 2005 World’s MostAdmired Companies rankings.Continental outperformed its globalcompetitors based on scores in ninedifferent categories – quality of productsand services, quality of management,employee talent, innovation, financialsoundness, social responsibility, long-term investment value and use ofcorporate assets and ‘globalness’.Continental was also included inFortune’s 2005 Top 50 list, which ranksall companies, across a wide variety ofindustries, that appear in the World’s

Most Admired Companies issue.Continental won major awards at the2004 OAG Airline of the Year Awardsincluding Airline of the Year, BestAirline Based in North America andBest Executive/Business Class.

Our commitment to the fundamentalsof our business – providing clean, safeand reliable air transportation with thebest group of professionals in theindustry – has kept us focused duringthe last few years of challenge andchange in the airline industry. We’vespent our time preserving the thingsthat our customers really want. For us,it’s keeping the pillows, blankets,magazines and meals at meal times. It’s

picking up the phone 30 seconds faster.It’s finding creative ways to make yourairport experience quick and easy. It’sgoing the extra mile to make sure thatyour flight is a comfortable one.

We’re doing the right things, in theright places, with the right people, andour efforts have clearly set us apartfrom our competition. I’d like topersonally thank the many participantsat the 2005 OTC for choosingContinental for your travel needs. Wehope you enjoy your stay, because out ofthe 268 destinations we serveworldwide, there’s only one place wecall home and that’s right here inHouston, Texas.

TALKING POINTS

A message fromLarry Kellner,Chairman andCEO, ContinentalAirlines.

Show on the growTO LITTLE SURPRISE, OTC HAS AGAIN INCREASED INsize from previous years. While the 2004 eventboasted a massive 397,750 net sq ft of indoor andoutdoor exhibits, this year that total has brokenthe 400,000 mark with 410,000 net sq ft beingused by a total of 2087 exhibiting companiesfrom 32 countries.

‘We were able to add 192 new companies thisyear by reconfiguring the exhibit floor afterremoving the shuttle in the back of the hall,’explains OTC .05 chairman Rod Allan. ‘We alsohave an increased international presence thisyear on the exhibit floor – more than 660companies from outside the US will beexhibiting, totaling 99,000 sq ft. OTC continuesto be the only annual event representing allregions of the offshore industry with attendeesfrom more than 110 nations and exhibitors frommore than 30 countries.’

And while the majority of exhibits are locatedinside Reliant Center, outdoor exhibits are alsogrowing in popularity. There are more than 50outdoor booths this year, accounting for some22,300 net sq ft, up from 18,350 net sq ft last year.

As an added attraction to this area, OTC hasnominated a theme for each day of the eventhighlighted with a variety of live music anddaily entertainment that will include massagechairs and caricatures between 11.00 and 13.00and again at 14.00 to 16.00.

The schedule includes:● Today: ‘Go Texan Day’ with performancesfrom the Ben McPeak Band.● Tuesday: ‘World Fusion Day’ as providedthrough the sounds of Moodafaruka.● Wednesday: ‘All That Jazz’ with the sounds ofthe Gary-Michael Dahl Band.● Thursday: ‘Adios Amigos’, with more from theBen McPeak Band.

Job hunters ATTENDEES THAT ARE ‘BETWEEN OPPORTUNITIES’ ORhoping to improve their present situation willlikely discover something to their advantage byvisiting OTC’s Oilcareerfair (Booth 1276 andBooth 1277).

Hailed as the oil industry’s largestnetworking opportunity of its kind, theOilcareerfair allows companies and job seekers

to meet by putting recruiters together withcandidates in one area on the show floor.

Companies participating in the fair include:El Paso, Eni, Petronas Carigali, Saudi Aramco,Schlumberger, SGF Global and Worldwide-worker.

The organization also has a dedicated websitewww.oilcareerfair.com that lists all vacancies atcompanies one month before and after the show.

Take me out tothe ball gameOTC AND THE HOUSTON ASTROS HAVE AGAINteamed up to provide some post-conferencebaseball entertainment by offering show-goersdiscounted tickets for the three games this week(today, Tuesday and Wednesday) against thePittsburgh Pirates.

Tuesday will be the official ‘OTC Night at theBallpark’ with conference chairman Rod Allenagain doing the honors with the first pitch.● OTC attendees interested in catching some ofthe action may buy tickets at the Astros booth inthe lobby outside the entrance to Hall B,order online atmlb.mlb.com/NASApp/mlb/hou/ticketing/group_offshore.jsp (password: otcastros) or at the Minute Maid Park box office. First pitchfor each night is scheduled at 19.05.

Help us to help youOTC exhibitors with news items to beconsidered for the Show Daily are invitedto drop them off at the Offshore Engineerdisplay (Booth 1501).

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THE Completion Company

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16 OTC .05 SHOW DAILY05.02.05

Strolling the aisles of the OTCexhibition, one cannot helpbut ponder the unique and

shifting relationship betweenoperator and service industry engineers. At onceantagonistic and symbiotic, its dynamic changeswith every movement in the price of crude. When

prices and activity are up, say the oil companies,the service companies push the cost of theirservices up unreasonably. Likewise, servicecompany engineers will swear that as soon as thecycle turns the oil companies take everyopportunity to drive down those prices. As a resultthe industry has come to be made up of two

distinct engineering cultures, a dichotomy seenmost clearly whenever the industry discusses‘technology uptake’.

Maintaining their traditional distrust of oneanother’s motives, service engineers blameoperator tightfistedness for the slow adoption ofnew technology, while operators insist innovationmust first be made affordable before it can becycled into common usage. As often happens whencultures clash, neither seems able to grasp what the

other is complaining about. At the base of thishistoric falling out is the immutable truth that thehearts of all drilling engineers beat with the desireto create the cheapest connection possible betweenthe surface and reserves.

Likewise, production engineers havetraditionally been happy to declare a well a successif they get a good log across the target interval anda good cement job on the production string. Bothdisciplines talk about wellbore quality andprobably mean it but in the end what they reallywant is something low-cost that will not raise theeyebrows of their budget-conscious masters.

Service company engineers, on the other hand,are driven by a need to deliver the perfect well witha rifle-barrel-smooth, rock-stable bore, able todeliver optimum production immediately uponcompletion and throughout the well’s lifetime.

Operations engineers want to know exactly thedayrate or other unit cost of every service andproduct in firm numbers they can show to thekeeper of the departmental purse. Serviceengineers are more likely to answer directquestions about price with responses couched interms of rig time savings, increased productionand longer well life – all served up with a dash ofdisdain for the naïve posing questions aboutspecific cost. In short, the two are so divided as tohave developed different languages.

The source of this communication breakdowncan be found in engineers’ very nature. Engineersare a breed apart, the best of which, like artistsand musicians, are born to be just what they are.Natural engineers are, by training and by instinct,cost conscious. They know the proper answer toany engineering problem must include not only the‘how’ but also the cost – and a very costly solutionis rarely the right one.

To be fair, engineers are not exactly ‘cheap’,though to the untrained eye they may sometimesappear to be. A more accurate label perhaps wouldbe ‘economically rational’. Engineers take thephrase ‘more bang for the buck’ quite literally andso are not strictly opposed to spending money solong as the results are worth the cost.

As anyone who has ever attended an SPE golftournament can attest from the thousands ofdollars worth of clubs lined up outside the proshop before tee time, engineers do indeed spendmoney in the proper cause. But they won’t spend adime for an outcome deemed less than critical.Indeed, the bohemian in most engineers seems tobelieve that clothes should be chosen solely for theirability to provide protection from the elements(though it must be admitted there are manyexceptions who are both good engineers and gooddressers). Thus the same engineer with a $2000 setof golf clubs sees no contradiction in buying a newgolf shirt, jeans and tennis shoes at a discountmegastore for about as much as a banker wouldpay for his knockabout topsiders.

Being economically rational, the engineerunderstands the value of good golf clubs in termsof gains in control and distance and so theexpenditure makes good sense. Paying for fashioncannot be so measured and thus is an irrationalexpense. This economic ethos not only creates acommunications gap between the two breeds ofengineer but also informs the ‘never be first’corollary. Unlike the instinct to spend logically, thisintense risk aversion is not an innate trait but onewholly learned from superiors whose primaryconcern is next quarter’s financials.

Service engineers who have never spent time in amodern E&P company have the same difficultywith this sentiment as they do understanding theirbrethren’s over-sensitivity to costs.

With the industry firmly split it into two cultureswith two languages, then, the solution to thetechnology uptake question might not be as simpleas finding the right translator. Perhaps a goodinterpreter could open a booth at the next OTC.● Rick von Flatern is US editor of OffshoreEngineer magazine.

Lost in translation

OTC.05 Show Daily is published by OffshoreEngineer (Booth 1501) in cooperation withOffshore Technology Conference.

Repro by Screaming Colour.Printed by Southwest Precision Printers Inc.

Offshore Engineer, established in 1975, ispublished monthly by Atlantic Communications LLC,1635 W Alabama, Houston, Texas 77006-4101.Tel: +1 713 529 1616.www.offshore-engineer.com

VON FLATERN’S VIEW

© 2005 Halliburton. All rights reserved.

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