Contents Offshore Engineer 2006

C O V E R

Resolution obtained froTn

Sclilumberger's Sonic Scanner, part of the cutting-edge family of wireline tools the oilfield service giant has brought together to help clients fully characterize the subsurface environment and better understand their reservoirs [see page 44). I M A G E : S C H L U M B E R G E R .

Volume 32 Number 1

contents

NEW LOOK

Keen-eyed OE r e a d e r s w i l l n o t i c e s o m e t h i n g d i f f e r e n t a b o u t t h i s issue. U n d e r t h e w a t c h f u l eye o f d e s i g n e r I a n M c l n n e s , w e ' v e g i v e n t h e m a g a z i n e a N e w Year m a k e o v e r w h i c h n o t o n l y a c c e n t u a t e s t h e l o n g - e s t a b l i s h e d OE b r a n d i n g b u t also, w e hope, gives o u r pages a cleaner, m o r e m o d e r n l o o k . A s a l w a y s , w e w e l c o m e r e a d e r f e e d b a c k o n these changes. DM

11-17

DIGEST

N o r w a y m a k e s m o r e o f m a t u r e appeal; C o n o c o P h i U i p s m o v e s o n B u r l i n g t o n ; C a t c h i n g t h e c l e a n gas b u g ; S o u t h Coast Gas a go; B e n g u e l a - B e l i z e bags O E A A p r o j e c t p r i z e ; B o n g a o n s t r e a m a t last; S t a t o i l d r i U s o n B r u g d a n ; L u f e n g t i e b a c k o n s t r e a m ; US G u l f f l o w s l o w l y r e c o v e r s ; A u s t r a l i a n A n g e l f l i e s . Matt Simmons, see page 19.

FORECASTS

19/21

PEAK OIL POSER

23/24

27/28

2002 RECURRING

30

THE DEAL MAKERS

F e w b o o k s have c a u s e d as m u c h c o n s t e r n a t i o n as has M a t t S i m m o n s '

Twilight in the desert: The coming Saudi oil shock and the world economy. Rick von Flatern t a l k s t o t h e a u t h o r i n h i s o p e n e r t o t h i s m o n t h ' s r e v i e w o f t h e t o p i c s a n d t e c h n o l o g i e s t h a t m a y i n f l u e n c e i n d u s t r y t h o u g h t processes i n 2006. O n e o f t o d a y ' s s e e m i n g l y i n t r a c t a b l e o U i n d u s t r y c h a l l e n g e s i s t h e p e r c e i v e d s h o r t a g e o f n e w t a l e n t w i t h w h i c h t o r e p l a c e a n a g i n g w o r k f o r c e . Rick von Flatern

r e v i e w s t h e f i n d i n g s o f a r e c e n t ' b i g c r e w c h a n g e ' s t u d y

W i t h U K N o r t h Sea h y d r o c a r b o n p r o d u c e r s s t e e l i n g t h e m s e l v e s f o r a 20% w i n d f a l l t a x , Darius Snieckus assesses t h e i m p a c t a r e c u r r e n c e o f t h e '2002 e f f e c t ' w i l l have o n t h e n e a i ' - t e r m p r o s p e c t s o f t h e w o r l d ' s n i n t h l a r g e s t o U a n d gas pi^oducen I t m a y n o t be a h b a d n e w s f o r N o r t h Sea o p e r a t o r s , especiaUy t h e s m a U e r p l a y e r s , s u r m i s e s o U i n d u s t i y l a w y e r Bruce McLeotf. O F F S H O R E E N G I N E E R | J a n u a r y 2 0 0 6

3

Big picture,

better decisions

Avocet

Integrated Asset Modeler

Getting a full-field big picture tvpically requires guesswork and patchwork. The reservoir, wells, surface processes, and economics are usually managed independ-ently, leading to suboptimal production results—oversized facilities and system bottlenecks.

With Avocet* Integrated Asset Modeler software, you can create a single, total-system model that resolves inconsistencies and improves operational decisions. The simulation uses discipline-specific models and unique downstream optimization rou-tines, enabled by Aspen Technology Inc.'s Open Simulation Environment. Models are automatically updated and optimized with no reliance on approximations.

The best possible decisions are now yours to make with Avocet Integrated Asset Modeler software.

sisinfa@slb.com

www.slb.com/avacet

Schlumberger

32-36

SEISIVIIC HORIZOi\!S

30-39

W i t h t h e m a r i n e s e i s m i c i n d u s t r y b o o m i n g , t h e a d o p t i o n o f some n e w t e c h n o l o g y m a y be s t a l l e d . C o n t i n u i n g i n t h i s m o n t h ' s f o r w a r d - l o o k i n g v e i n , Andrew McBarnet l o o k s a t t h e issues a n d r e p o r t s t h e l a t e s t d e v e l o p m e n t s i n c o n t r o U e d - s o u r c e e l e c t r o m a g n e t i c i m a g i n g a n d o t h e r p r o m i s i n g i n n o v a t i o n s .

SUBSEA LEARNINGS w h o s t a n d s t o g a i n m o s t f r o m t h e

a

41/42

ALL POWER TO THE KING

44-46

SCANNING SQUARE ONE

Oil zone water ï c r i e

48-51

HANDLING GEOHAZARDS

53-61

HIGH ACHIEVERS

78

AND ANOTHER THING

REGULAR FEATURES

m u s h r o o m i n g subsea m a r k e t ? C o n s u l t a n t Ian Ball, OE e d i t o r i a l a d v i s o r y p a n e l m e m b e r a n d p r o u d r e c i p i e n t o f t h e 2005 SUT P r e s i d e n t ' s A w a r d , o f f e r s a p e r s o n a l p e r s p e c t i v e o n t h e c h a n g i n g f o r c e s a t w o r k o n t h e g l o b a l subsea b u s i n e s s . T h e f i r s t - e v e r subsea s e r v i c e u m b i l i c a l w i t h i n t e g r a t e d h i g h v o l t a g e c a b l e w i U be r o l l e d o u t i n t h e G u l f o f M e x i c o l a t e r t h i s y e a r as o p e r a t o r B P r e t r o f i t s i t s d e e p w a t e r K i n g c o m p l e x w i t h seabed m u l t i p h a s e p u m p s . Darius Snieckus t a l k s t o N e x a n s ' h i g h v o l t a g e d i v i s i o n d i r e c t o r P a t r i c k B a r t h a b o u t t h i s p i o n e e r i n g d e l i v e r y a n d t h e m a r k e t a h e a d . O i l f i e l d s e r v i c e g i a n t S c h l u m b e r g e r w e n t b a c k t o s q u a r e o n e t o b r i n g t o g e t h e r i t s ' t e c h n o l o g y - s t r e t c h i n g ' S c a n n e r ' f a m i l y o f w i r e l i n e t o o l s w h i c h , as Rick von Flatern

e x p l a i n s i n t h i s o p e n e r t o a t w o - p a r t i-eview, i n c l u d e s t h e l a t e s t i t e r a t i o n o f some f a m i l i a r o f f e r i n g s . N e x t m o n t h h e w i U be l o o k i n g a t w h a t o t h e r s e r v i c e c o m p a n i e s a r e d o i n g i n t h e w a y o f w i r e l i n e s e r v i c e u p g r a d e s . A n e w i n t e g r a t e d a p p r o a c h f o r q u a n t i f y i n g d e e p w a t e r g e o h a z a r d r i s k i s d i s c u s s e d h e r e b y t h e H a l c r o w G r o u p ' s

D r Roger Moore a n d F u g r o ' s Ian Davies.

I n d u s t r y a n d f r i e n d s g a t h e r e d i n H o u s t o n l a s t m o n t h f o r t h e s e c o n d a n n u a l O f f s h o r e E n e r g y A c h i e v e m e n t A w a r d s . Brad Baethe r e f l e c t s o n t h e s i g h t s a n d s o u n d s o f a g l i t t e r i n g e v e n i n g a n d d e t a i l s t h e p r i z e w i n n i n g a c c o m p l i s h m e n t s o f t h e o f f s h o r e E & P e l i t e i n e i g h t c a t e g o r i e s . A s t h e l a t e s t r o u n d o f c o n s o l i d a t i o n c o n t i n u e s w i t h t h e C o n o c o P h i U i p s / B u r l i n g t o n Resources m e r g e r ,

Rick von Flatern p o n d e r s t h e i r o n y t h a t ' n o t h i n g p u t s a p e t r o l e u m p r o f e s s i o n a l ' s j o b a t r i s k i n t h e m o d e r n oU I n d u s t r y as does d o i n g t h a t j o b weU'. Q u i c k s t a t s g u i d e (62), P r o d u c t s i n a c t i o n (65-67), F i r m s & Faces (68/69), C o n t r a c t s (69-71), D i a r y (72), D i s p l a y a d v e r t i s e r s i n d e x (74), B o o k s h o p (75-77). 'Maik of Schlumberger

C O V E R

West Azeri piatform in the Caspian Sea, which came onstream last month. Design of the six platforms in theAzeri-Chirag-Gunashli

development created an unprecedented challenge in information management for main engineering contractor Kellogg Brown

& Root {page 35).

NEW THIS MONTH

W i t h t h e f h s t i n s t a l l m e n t o f G & G N o t e b o o k , c o n t r i b u t i n g e d i t o r Andrew IVlcBarnet begins a n e w m o n t h l y c o l u m n l o o k i n g at t h e latest developments i n the f a s t m o v i n g geology a n d geophysics sector (seepage 25).

11-17

DIGEST

19-23

ANALYSIS

25/26

G&G NOTEBOOK

The rapid evolution of

satellite communications in

29-33

recent years is reviewed this

month (seepage 65).

FLUID THINKING

tl u s states s p l i t o n n e w o f f s h o r e E & P ; B e l i z e b r o u g h t o n s t r e a m ; L N G m a r i n e f a U - o u t t o be ' m i n i m a l ' ; West A z e r i o n - l i n e ; ' I n f o r m e d debate' o n e n e r g y : U K O O A ; G o l i a t s t a n d s t a U i n B a r e n t s ; B r a z i l boosts o u t p u t ; F l o a t i n g L N G t e r m i n a l f i r s t ; F o r v i e f l o w s ; K i z o m b a 0 d o u b l e d u t y F o l l o w i n g a s e v e r a l - y e a r - l o n g t r e n d i n E & P s p e n d i n g c h a r a c t e r i s e d b y n o t h i n g so m u c h as t h e w i d e l y - d e l i b e r a t e d d i s c o n n e c t b e t w e e n c r u d e p r i c e s a n d e x p l o r a t i o n b u d g e t s , a m o r e e q u i t a b l e b a l a n c e a p p e a r s t o be e m e r g i n g w i t h c a s h - r i c h o ü c o m p a n i e s once a g a i n b e t t i n g o n t h e d r i U b i t , w r i t e s Darius Snieckus. Plus, p l a n s f o r a 10,000km gas p i p e l i n e t h a t w o u l d s p a n S o u t h A m e r i c a

a r e e x a m i n e d b y Peter Howard Wertheim a n d

Dayse Abrantes. A l o t o f w o r k i n t h e o f f i n g a n d t h e b u d g e t t o p a y f o r i t i s a p o w e r f u l c o c k t a i l , so h e a d y i n f a c t t h a t t h e m a r i n e s e i s m i c b u s i n e s s m a y a l r e a d y be h e a d i n g f o r a g i a n t h a n g o v e r T h a t ' s t h e v i e w o f

Andrew IVlcBarnet i n OE's n e w m o n t h l y

c o l u m n o n t h e geoscience c o m m u n i t y s e r v i n g t h e E & P i n d u s t r y W i t h i n c r e a s i n g w a t e r d e p t h s , s o u n d d e c i s i o n s o n h o w , w h e n or w h e t h e r t o c o m p l e t e h i g h -r i s k w e l l s have b e c o m e eve-r m o r e c r i t i c a l t o o p e r a t o r s ' e c o n o m i c h e a l t h . I n r e c e n t years, w i r e l i n e f o r m a t i o n p r e s s u r e t e s t i n g a n d s a m p l i n g t o o l s h a v e b e c o m e n e a r l y i n d i s p e n s a b l e i n t h a t d e c i s i o n - m a k i n g process.

Rick von Flatern r e p o r t s .

Big picture,

Jetter decisions

Ai/ocet

Integrated Asset Modeler

Getting a full-field big picture typically requires guesswork and patchwork. The reservoir, wells, surface processes, and economics are usually managed independ-ently, leading to suboptimal production results—oversized facilities and system bottlenecks.

With Avocet* Integrated Asset Modeler software, you can create a single, total-system model that resolves inconsistencies and improves operational decisions. The simulation uses discipline-specific models and unique downstream optimization rou-tines, enabled by Aspen Technology Inc.'s Open Simulation Environment. Models are automatically updated and optimized with no reliance on approximations.

The best possible decisions are now yours to make with Avocet Integrated Asset Modeler software.

sisinfo@slb.com

www.slb.com/avocet

ScMunibergep

35-38

CASPIAN'S COUBERJ

41-46

INTELLIGENT DESIGNS

55-57

HARMONICS ON KEY

59-63

FLEXIBLE FRIENDS

65-68

CONNECT CALL

REGULAR FEATURES

I n f o r m a t i o n , i n f o r m a t i o n , i n f o r m a t i o n . F o r t h e g i a n t A C G d e v e l o p m e n t i n t h e C a s p i a n Sea, c o n t r a c t o r K B R w a s f a c e d w i t h a n u n p r e c e d e n t e d c h a l l e n g e i n s u c c e s s f u l l y k e e p i n g c o n t r o l o f t h e m o u n t a i n o f e l e c t r o n i c d o c u m e n t s a n d d a t a m o v i n g t h r o u g h t h e ether. Terry Knott

l o o k s at h o w i t w a s done. M a n y o b s e r v e r s f e e l D o f f - t h e d i g i t a l o i l f i e l d o f t h e f u t u r e - s h o u l d b y n o w h a v e d r o p p e d t h e s e c o n d ' f ' . Darius Snieckus l o o k s i n t o t h e s l o w - r o l l i n g e m e r g e n c e ó f a t e c h n o l o g i c a l concept t h a t c o u l d a d d 125 b i U i o n hoe to the w o r l d ' s resoui'ce base.

E n g i n e e r s h a v e l o n g k n o w n t h a t as gas weUs deplete, p r o d u c t i o n i s o f t e n c u t s h o r t as f o r m a t i o n e n e r g y i s n o l o n g e r s u f f i c i e n t t o l i f t p r o d u c e d w a t e r N o w t h e G e n e r a l OU T o o l p a r t n e r s h i p t h i n k s i t h a s a t e c h n o l o g i c a l response, as Rick von Flatern r e p o r t s t o o p e n O i ï ' s l a t e s t G u l f Coast u p d a t e . Brad Baelhe also l o o k s at h o w n e w - s t a r t d r i U i n g c o n t r a c t o r S c o r p i o n O f f s h o r e gave t h e US r i g b u U d i n g i n d u s t r y a w e l c o m e s h o t i n t h e a r m b y e l e c t i n g to b u i l d f i v e n e w - g e n e r a t i o n j a c k u p s i n t h e a r e a . W i t h m a j o r c l a s s i f i c a t i o n b o d i e s i s s u i n g r u l e s l i m i t i n g t h e p e r m i s s i b l e t o t a l h a r m o n i c v o l t a g e d i s t o r t i o n f o r a l l n e w b u i l d s to 5%, Ian Evans o f H a r m o n i c S o l u t i o n s a n d Tony Hoevenaars o f M i r u s I n t e r n a t i o n a l discuss t h e m a r i n e h a r m o n i c m i t i g a t i o n m e t h o d s e m p l o y e d to e n s u r e a c a b l e - l a y e r c o m p l i e d w i t h n e w r e q u i r e m e n t s . C o n c l u d i n g h i s r e v i e w o f t o d a y ' s e l e c t r i c w i r e l i n e t o o l s , Rick von Flatern t a l k s t o t h r e e m o r e o f t h e l e a d e r s i n t h e f i e l d a b o u t t h e i r l a t e s t o f f e r i n g s i n t h i s v e n e r a b l e s t a p l e o f t h e e x p l o r a t i o n a n d p r o d u c t i o n i n d u s t r y B u r g e o n i n g c o n n e c t i v i t y d e m a n d s f r o m o p e r a t o r s a n d s e r v i c e c o m p a n i e s h a v e h e l p e d i n s p i r e t h e r a p i d e v o l u t i o n o f s a t e l l i t e c o m m u n i c a t i o n s t e c h n o l o g y i n r e c e n t years. Brad Baethe poUs s o m e o f t h e oU a n d gas i n d u s t r y ' s s e r v i c e p r o v i d e r s a n d u s e r s a b o u t w h e r e t h e s a t c o m s b u s i n e s s goes f r o m h e r e . T h e b i g n e w s i n t h e w a k e o f h u r r i c a n e s K a t r i n a a n d R U a f o r t h e G u l f o f M e x i c o o i l a n d gas i n d u s t r y w a s t h a t t h e r e w e r e no spiUs o r p o U u t i o n . Rick von Flatern i s f r u s t r a t e d t h a t no-one p u s h e d t h i s p o s i t i v e p o i n t h o m e w i t h t h e p u b l i c .

Offshore Engineer c o n t a c t s (8), Q u i c k stats g u i d e (70), P r o d u c t s i n a c t i o n (71/72), F i r m s & Faces (75/76), C o n t r a c t s (76), D i a r y (78), D i s p l a y a d v e r t i s e r s i n d e x (81), B o o k s h o p (82-84), ClassUieds (85).

C O V E R

Artist's impression of the innovative dual function excavation system deployed by PSL to cut through ultra-hard clays in the Storegga slide area of Norwegian operator Hydro's OrmenLange development ("page 36).

Volume 31 Number 3

contents

< Using its WindowMaster

whipstock system., Baker Oil Tools recently completed the world's first 16in one-trip casing exit for a Petro-Canada well in 100m of water in Newfoundland's Terra Nova field (see page 69).

TDO t o ^

km

m

A 'States that do not want [drilling] within 250 miles of their coastlines can pay a special tax for the privilege, a rental fee as it were, for the federal properties to which they have apparently laid claim.'Rick von Flatern on the US Gulf lease 181 debate (see page 86j.

o f f s h o r e - e n g i n e e r . c o m

11-15

DIGEST

15/16

ANALYSIS

18-20

G&G NOTEBOOK

23-28

HOT AND COLD

FEAT OF CLAY

l O C s m u s t ' d e l i v e r t e c l m o l o g y ' ; A f r i c a n l i q u i d s p r o d u c t i o n set t o soar; D a r w i n ships f h s t L N G ; o p e r a t o r s b a c k i n B i g E a s y . . . as B l a n c o b i d s f o r m o r e O & G i n c o m e ; K v i t e b j o r n gas reserves boost.

W i t h t h e d u s t s e t t l i n g o n t h e \JK T r e a s u r y ' s latest o i l i n d u s t r y t a x grab, N o r t h Sea o p e r a t o r s appear t o be h e d g i n g bets o n w h a t b e a r i n g i t w i l l have o n E & P plans g o i n g f o r w a r d . Darius Snieckus takes a t e m p e r a t u r e r e a d i n g i n A b e r d e e n .

Serious geoscience r e s e a r c h is t h e f u t u r e , a c c o r d i n g to J o h n W G i b s o n Jr, r e c e n t l y a p p o i n t e d boss o f E & P s o f t w a r e c o m p a n y P a r a d i g m . Seismics e d i t o r Andrew IVlcBarnet

p r o f i l e s G i b s o n i n t h e second o f h i s n e w m o n t h l y r e v i e w s o f d e v e l o p m e n t s i n t h e f a s t - m o v i n g geology a n d geophysics s e c t o r

F o r the f r o n t i e r o f f s h o r e o ü a n d gas p l a y e m e r g i n g o n t h e S a k h a l i n shelf, 2005 w a s a year o f m i x e d f o r t u n e s . Darius Snieckus

r e v i e w s E & P p r o g r e s s a n d prospects i n t h e R u s s i a n f a r east w i t h t h e l i k e s o f E x x o n -M o b ü , BP-Rosneft a n d t h e SheU-led SEIO.

N o m a t t e r h o w w e h t h e o f f s h o r e o i l a n d gas business is p e r f o r m i n g , i t seems t h e r e w ü l always be a sector g e t t i n g t h e s h o r t end. B u t t h i s t i m e r o u n d , w i t h $60 o ü a n d $10 gas, c o m p l a i n i n g is l i m i t e d t o c o n s u m e r s . Brad Baethe r e v i e w s c u r r e n t t r e n d s o n t h e US G u l f ' s s h e l f t h a t , u n c h a r a c t e r i s t i c a U y seem good f o r aU sectors o f t h e i n d u s t r y E x c a v a t i n g subsea h i g h w a y s f o r N o r w a y ' s O r m e n L a n g e p r o j e c t r e q u i r e d a n i n n o v a t i v e a n d h i g h l y r o b u s t s y s t e m to c u t t h r o u g h some o f t h e t o u g h e s t seabed clays a r o u n d . Terry Knott r e p o r t s .

Big picture,

better decisions

Avocet

Integrated Asset Modeler

Getting a full-field big picture typically requires guesswork and patchwork. The reservoir wells, surface processes, and economics are usually managed independently, leading to suboptimal production results.

With Avocet* Integrated Asset Modeler software, you can create a single, total-s\ stem model that resolves inconsistencies ard improves operational decisions. The simuiation uses discipline-specific models and un cue downstream optimization routines, enabled by Aspen Technology Inc.'s Open Simulation Environment Models are automatically updated and optimized with no reliance cn approximations.

The best possible decisions are now yours to make with Avocet Integrated Asset Modeler software.

sisinfo@slb.com

www.slb.com/avocet

Schlumberger

45-47

EGYPTIAN ROLL

48/49

WETLAND WORKING

50-52

ANCIENT AND MODERN

55/56

SENIOR MOMENTUM

BUOYANT IN BRAZIL

6 1

POSITIONING POWER

75/76

/OTC 2006 PREVIEW

86

AND ANOTHER THING . . .

REGULAR FEATURES

W i t h v h - g m e x p l o r a t i o n acreage i n t h e w o r l d ' s o f f s h o r e hasins e v e r m o r e h o t l y pm-sued, t h e s o u t h e r n M e d i t e r r a n e a n Sea is p r o v i n g a h a p p y h u n t i n g g r o i m d f o r f i r s t - t i e r o p e r a t o r s s u c h as BG. Darius Snieckus l o o k s at t h e gas m a j o r ' s n e x t c a m p a i g n o f f Eg^Tpt. P u t t i n g a p i p e l i n e t h r o u g h t h e h i g h l y p r i z e d a n d r i g o r o u s l y p r o t e c t e d W a d d e n Sea w e t l a n d s r e q u i r e d extensive use o f d h e c t i o n a l h o r i z o n t a l d r i l l i n g t o m i n i m i s e t h e i m p a c t o f c o n s t i - u c t i o n o n t h e t i d a l Hats. David Morgan l o o k s b a c k at h o w t h e j o b w a s done.

H a v i n g e n t e r e d m a i n s t r e a m usage i n j u s t t h e past t w o years, r e m o t e d o w n h o l e c o n t r o l s a n d sensors ai'e n o w f i n d i n g acceptance o u t s i d e t h e i r o r i g i n a l h i g h - e n d n i c h e . Rick von Flatern checks i n t o t h e n e w r o l e o f ' s m a r t ' o r ' i n t e n i g e n f w e U i n s t r u m e n t a t i o n as a m a t u r e asset m a n a g e m e n t t o o l .

C o n t i n u m g i n t h e matm-e assets m a n a g e m e n t v e i n , Senergy's Pat Neve

e x a m i n e s some o f t h e approaches t o N o r t h Sea f i e l d l i f e e x t e n s i o n .

B u o y e d b y a b o o m i n g f l o a t i n g p r o d u c t i o n m a r k e t , Goodyear has opened a n e w f a c i l i t y i n B r a z i l t o m a n u f a c t u r e l a r g e d i a m e t e r hoses t o h a n d l e o f f l o a d i n g f r o m FPSOs a n d o t h e r f l o a t e r s . A s e m i s u b m e r s i b l e r i g ' s D P ' h o t u p g r a d e ' and t h e r e c e n t m a r k e t i n r o a d s m a d e b y a c o u s t i c w i d e b a n d t e c h n o l o g y a r e a m o n g t h e i n g r e d i e n t s o f p a r t one o f t h i s m o n t h ' s p o s i t i o n i n g t e c h n o l o g y r o u n d u p .

I n p a r t two, Jan Rooswinkel discusses t h e t h i n k i n g b e h i n d t h e s o p h i s t i c a t e d electro h y d r a u l i c c o n t r o l l e r H y t o p developed f o r g i a n t d r e d g e r JFJde Nul's s p u d c a r r i e r p o s i t i o n i n g s y s t e m . OE takes a n e a r l y l o o k at some o f t h e d i s c u s s i o n t o p i c s and s p e c i a l events b e i n g l i n e d u p f o r O T C attendees i n H o u s t o n e a i i y M a y S u n n i n g h i m s e l f o n a M i a m i b e a c h last m o n t h . Rick von Flatern d r e a m t u p some h e l p f u l h i n t s f o r drUling-averse F l o r i d i a n s . O f f s h o r e E n g i n e e r contacts (8), Q u i c k stats g u i d e (67), P r o d u c t s i n a c t i o n (69), F i r m s & Faces (71), Conhracts (72), D i a r y (78), D i s p l a y a d v e r t i s e r s i n d e x (80), B o o k s h o p (82-84), C l a s s i f i e d s (85).

C O V E R

The 89,900t Atlantis

semisubmersible, pictured nearing completion at the Kieiuit yard in Ingleside, Texas, is among the next wave of deepwater facilities being readied for service worldwide. OE's annual deepwater roundup begins on page 82.

P H O T O C O U R T E S Y B P

Volume 31 Number 4

vPetroleum Geo-Services is planning a 2008 launch for a

third generation Ramform design marine seismic vessel that will dwarf its predecessors in size and performance

(see p a g e 32).

9-16

DIGEST

ANALYSIS

29-32

G&G NOTEBOOK

u s G u l f sale n e a r s $1 b U l i o n ; U K C S f a U o w f i e l d s u n d e r f h e h a m m e r ; M a u r i t a n i a n d i s p u t e r e s o l v e d ; C o n s t i t u t i o n o n s t r e a m ; G o o d r u n comes good; Solitaire s e t U e m e n t at last; I n d i a w i d e n s e x p l o r a t i o n net; D e e p w a t e r d r U l e r s i n t o t h e b l o c k s ; T e r r a N o v a o u t p u t d r o p s ; M a r s h a l l / D o r i s l a n d O T C h o n o u r s .

Terry Knott assesses t h e c h a n c e s o f a n a m b i t i o u s S h e U / S t a t o i l p l a n t o use CO2 f o r e n h a n c e d o i l r e c o v e r y o f f N o r w a y .

Rick von Flatern s a m p l e s t h e s i g h t s a n d s o u n d s o f t h e l A D C / S P E d r i U i n g c o n f e r e n c e i n M i a m i . N o r w e g i a n e n t e r p r i s e is f o r c i n g t h e pace i n t h e c u r r e n t f a v o u r a b l e m a r k e t f o r m a r i n e s e i s m i c . Andrew McBarnet r e p o r t s t h e l a t e s t m o v e s .

V Barrow Island, a much-acclaimed nature reserve, has uniquely and successfully co-existed with Australia's largest onshore oilfield for 40 years.

Now it is set to play a key role in the development of the giant Gorgon and Jansz offshore gas fields (see page 37j.

37-66

WIZARDS OF OZ

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69/70

LNG FOR CHINA

A m a j o r r e p o r t o n C h e v r o n ' s p l a n s f o r t h e G o r g o n gas p r o j e c t , w i t h a n e s t i m a t e d p r i c e t a g o f $11 b U l i o n , o p e n s p a r t o n e o f David Morgan's A u s t r a l i a O f f s h o r e r e v i e w . H e also t a l k s t o D o n V o e l t e a b o u t t h e f r o s t i n g o n W o o d s i d e ' s cake; f o r m e r K i z o m b a p r o j e c t m a n a g e r R o b e r t E d w a r d e s a b o u t l i f e i n t h e c o n t r a c t i n g w o r l d , a n d f o u n d i n g OE e d i t o r R i c k W i l k i n s o n a b o u t A u s t r a l i a n o i l f i e l d h i s t o r y a n d m u c h else besides. A s t h e r a p i d pace o f e c o n o m i c g r o w t h i n C h i n a c o n t i n u e s , i m p o r t e d L N G i s n o w h i g h p r o f i l e . John Mueller r e p o r t s . m w w . o f f s h o r e - e n g i n e e r . c o m O F F S H O R E E N G I N E E R I a p r i l 2 0 0 6

The new age of drilling.

Scope

Scope* new-generation wliile-driliing services dramatically improve drilling performance and well placement—leading to increased production, sooner. This family of services sets new standards for reliability and data quality, while quadrupling the data rate over the industry standard.

• EcoScope* logging while drilling: delivering industry-first measurements, faster. • Stethoscope* formation pressure while

drilling: improving efficiency and reducing risk.

• TeleScope* high-speed telemetry while drilling: transmitting more data, faster. • Periscope* directional, deep imaging while drilling: increasing production.

www.slb.com/scope

Schlumbepger

73-76

COMPACT COALESCER

82-115

79./Bn

FLOATING

FUTURES

DEEP THINKING

116-120

PROFILE

123-129

THE PIPE

131 -154

SCANDINAVIA OFFSHORE

157-168

NETHERLANDS OFFSHORE

171-188

UK OFFSHORE

AND ANOTHER THING

REGULAR FEATURES

A n i n n o v a t i v e , c o m p a c t e l e c t r o s t a t i c coalescer f o r e n h a n c i n g t h e s e p a r a t i o n of o i l a n d w a t e r p r o m i s e s to o u t p e r f o r m c o n v e n t i o n a l a l t e r n a t i v e s . Terry Knott r e p o r t s . Were i t n o t f o r M o t h e r N a t u r e ' s i n t e r v e n t i o n , f l o a t i n g p r o d u c t i o n s y s t e m d e p l o y m e n t s w o u l d have h i t a n a l l - t i m e h i g h l a s t year, observes ODS-Petrodata's

Robert Moers. G l o b a l d e e p w a t e r a c t i v i t y c o n t i n u e d i n steady i f u n s p e c t a c u l a r f a s h i o n o v e r t h e p a s t year, a l t h o u g h t h e r e w e r e y e t m o r e a d d i t i o n s t o t h a t o n c e e x c l u s i v e b i l l i o n -d o l l a r / b i l l i o n - b a r r e l c l u b , as G l o b a l I n d u s t r i e s ' Marshall DeLuca n o t e s i n OE's a n n u a l , p r o j e c t - b y - p r o j e c t s u r v e y Despite s p e n d i n g h i s e n t i r e career i n t h e e m p l o y o f a s i n g l e c o m p a n y g l o b a l d r i l l i n g and c o m p l e t i o n s V P K e v i n L a c y ' s 25 years w i t h C h e v r o n is n o t h i n g i f n o t d i v e r s e , as

Rick von Flatern d i s c o v e r s .

T w o takes o n t o d a y ' s d e e p w a t e r p i p e t e c h n o l o g y challenges: f r o m T e n a r i s o n its l a t e s t R & D i n i t i a t i v e s a n d f r o m U m a x - S e r i m e r o n r e c e n t D a l i a p r o j e c t e x p e r i e n c e i n A n g o l a . C o n t r a s t i n g Sevan S t a b i l i s e d P l a t f o r m a p p l i c a t i o n s , r e c e n t e n h a n c e d o i l r e c o v e r y i n i t i a t i v e s a n d t h e l a t e s t t h i n k i n g o n m u l t i p h a s e f l o w m e t e r i n g a r e a m o n g t h e t o p i c s i n Darius Snieckus' r e v i e w of t h e S c a n d i n a v i a n o f f s h o r e scene. U n m a n n e d p l a t f o r m s w i t h c o m b i n e d s o l a r a n d w i n d power, f o r w a r d t h i n k i n g o n t o p s i d e f l o a t o v e r s a n d f a s t - t r a c k p l a t f o r m r e m o v a l s a r e f e a t u r e d i n OE's l a t e s t D u t c h r e v i e w . R e p o r t s b y Terry Knott a n d Brad Baethe. I n h i s openers t o t h i s m o n t h ' s r e v i e w , Darius Snieckus t a l k t o W o o d G r o u p c h i e f Sh: I a n W o o d a b o u t sector c y c l i c a l i t y i n t e r n a t i o n a l i s m a n d h i s 30 y e a r s b e f o r e t h e o f f s h o r e mast, a n d E x p r o boss G r a e m e C o u t t s (left) a b o u t t h e r e c e n t t r a n s f o r m a t i o n o f h i s c o m p a n y ' s f o r t u n e s .

Rick von Flatern d i s c e r n s

a w e l c o m e s h i f t o f a t t i t u d e s i n t h e l a t e s t US i n d i e s ' s u r v e y OE c o n t a c t s (8), Q u i c k stats g u i d e (191), P r o d u c t s i n a c t i o n (193-198), F i r m s & f a c e s (201/202), C o n t r a c t s (203), D i a r y (204), D i s p l a y a d v e r t i s e r s i n d e x (206), B o o k s h o p (207-212), C l a s s i f i e d s (213). 0B-DR-0B5 ©2005 Schlumberger *Mark of Schlumberger

COVER

The Ensco 102 jackup at work for the ExxonMobil/BHP

Billiton joint venture on its Gippsland Basin infill and long-reach drilling programme. Bass Strait developments 40 years on feature in OE's continuing Australia Offshore review (see page 26).

Volume 31 Numbers

contents

DIGEST

A There are only five subsea tree manufacturers worldwide. Now another company is looking to join this elite using an innovative technological approach (see page 39;.

y Besides its ability to remove more people from the rig floor during casing running

and drilling operations by combining numerous conventional tools into one,

Weatherford's new OverDrive system allows

operators to simultaneously

reciprocate, circulate and rotate while

drilling with casing (see page 50;.

20-25

EKOFISK VISION

26-33

LIFE AFTER 40

35/36

SMALL IS BEAUTIFUL

Wobble i n deepwater M e x i c a n wave; Greater P l u t o n i o gears up; B a r e n t s Sea splash f o r N o r w e g i a n r o u n d ; A p a c h e c o r r a l s m o r e o n G u l f shelf; B r a z U eyes o i l s e l f - s u f f i c i e n c y ; C u t t e r sets e n v ü - o n m e n t a l s t a n d a r d ; M a r s b a c k f r o m t h e wai-s; C o n s t i t u t i o n goes l i v e ; A l v h e i m aiTives. A n o d d i t y i n t h e c u r r e n t s c r a m b l e f o r seismic business is t h a t I n p u t / O u t p u t a n d h s s u b s i d i a r y G X T e c h n o l o g y are a c t h i g coy about t h e b u U d i n g o f t h e G X T Span data l i b r a r y I n t h i s m o n t h ' s c o l u m n ,

Andrew McBarnet suggests some reasons. N o r w a y ' s f h s t o f f s h o r e oU a n d gas f i e l d saw i t s r e c o v e r y p o t e n t i a l s i g n i f i c a n t l y boosted w h e n t h e lead-off d e v e l o p m e n t i n o p e r a t o r C o n o c o P h i U i p s ' E k o f i s k A r e a G r o w t h p l a n , p l a t f o r m 2/4 M , w a s b r o u g h t o n s t r e a m . Darius Snieckus l o o k s a t w h a t t h e f u t u r e h o l d s f o r E k o f i s k . There's l i f e i n t h e o l d g h i yet! T h a t ' s t h e

v e r d i c t o f Rick Wilkinson o n t h e o U a n d gas

f i e l d s i n Bass S t r a i t , t h e n o t o r i o u s l y changeable s t r e t c h o f w a t e r b e t w e e n V i c t o r i a a n d T a s m a n i a t h a t is ai-guably stUl A u s t r a l i a ' s p r e m i e r p e t r o l e u m p r o v i n c e . T h i s m o n t h ' s i n s t a U m e n t i n OE's A u s t r a l i a O f f s h o r e series also l o o k s at a cooperative d r U l m g c a m p a i g n l a u n c h e d b y four- oU c o m p a n i e s m the B o n a p a r t e B a s i n . T h i s y e a r p r o m i s e s t o be a c h a U e n g i n g one f o r n e w - s t a r t E & P c o m p a n y Cobalt E n e r g y I n t e r n a t i o n a l , b u t mass q u a n t i t i e s o f i n d u s t r y

experience shovdd keep t h i s s h i p r i g h t a n d its saUs f u U . Brad Baethe t a l k s t o C o b a l t p r e s i d e n t J h n F a r n s w o r t h i n H o u s t o n .

W W . o f f

ilearthe w a y ^ '

-- to your high-- ^

srmeability zones.

:iearFRAC HiPerm

learFRAC* HiPerm polymer-free fracturing uid is a viscoelastic surfactant (VES) ystem specially developed to enhance roductivity in high-permeability reservoirs. , Gulf of Mexico operator selected ;iearFRAC HiPerm to optimize

through-ompletion production in a deepwater well, 'ermeability in the 122-m [400-ft] treated iterval ranged from 100 to 300 mD. 'reduction results exceeded the client's xpectations by nearly 5,000 bbl/d. he high retained conductivity, low friction ressure, and excellent proppant-carrying apacity of ClearFRAC HiPerm fluid reduce lie risks associated with fracturing high-lermeability zones—clearing the way for )ptimal productivity.

vww.slb.com/clearfrachiperm

Schlumbepgep

39-42

BRANCHING OUT

45

OPINION

47-53

RIG TECHNOLOGY

55-57

MATURE THINKING

59/60

C U n i N G S CONUNDRUM

63-68

CASPIAN FOCUS

73-75

X MARKS THE SPOT

94

AND ANOTHER THING

81 82 83 84 85 85 87 8^ 89 90

; 8 Ö ~ 7 9 78 77 76 ' 75 74 73 7Z 71

REGULAR FEATURES

I t i s a t e s t i m o n y to the t e c h n o l o g i c a l n a t u r e of suhsea trees as weU as t h e h i g h

e c o n o m i c bai-riers t o e n t r y i n t o t h e business t h a t o n l y f i v e s u p p l i e r s o f t h e m e x i s t w o r l d w i d e . Rick von Flatern spends t i m e w i t h a c o m p a n y i n t e n t o n b e c o m i n g t h e s i x t h u s i n g a d i f f e r e n t a p p r o a c h t o m e e t i n g o p e r a t o r r e q u h e m e n t s . Can plug-and-play t e c h n o l o g y t a r g e t i n g subsea p r o c e s s i n g a p p l i c a t i o n s also e s t a b l i s h a topside niche? A l p h a T h a m e s Subsea's David Appleford believes i t c a n a n d e x p l a i n s w h y

' M i c r o f l u x c o n t r o l ' is s o o n to be added to t h e a r s e n a l o f weapons avaUable t o deal w i t h d r i U i n g t h r o u g h close p o r e pressm'e-fractiu'e g r a d i e n t w i n d o w s . F o r t h i s m o n t l i ' s r i g t e c h n o l o g y r o u n d u p .

Rick von Flatern got a n e a r l y l o o k at t h i s s y s t e m a l o n g w i t h some n e w - g e n e r a t i o n c a s i n g r u n n i n g a n d d r i U i n g tools t h a t h e l p . m i n h n i z e h u m a n i n t e r v e n t i o n a n d a s l i m h o l e s y s t e m t h a t i m p r e s s e d i n r e c e n t C a n a d i a n f i e l d t r i a l s . S u b s t a n t i a l savings c o u l d be r e a l i s e d f r o m a n e w r i g l e s s a r t i f i c i a l l i f t s y s t e m c m - r e n t l y at a n advanced stage o f d e v e l o p m e n t a n d t a r g e t i n g m a t u r e , mai-ginaUy e c o n o m i c weUs. John Howes r e p o r t s .

Changes i n e n v h o n m e n t a l r e g u l a t i o n s f o r d i s c h a r g e o f s y n t h e t i c - b a s e d m u d o n c u t t i n g s i n t h e G u l f o f M e x i c o h a v e l e d t o some f r a y e d n e r v e s i n t h e o f f s h o r e

c o m m u n i t y B a i ' o i d F l u i d S e r v i c e s ' John Hall

and Charles Mowrey o u t l h i e t h e issues.

Snapshots o f i n d u s t r y l i f e a n d chaUenges i n t h e r a p i d l y e v o l v i n g C a s p i a n o f f s h o r e m a r k e t a r e p r o v i d e d t h i s m o n t h b y T T E ' s

Keith Hunter, w h o discusses t h e r o l e o f A z e r b a i j a n ' s C a s p i a n T e c h n i c a l T r a i n i n g Centre, a n d F u r m a n i t e ' s Mike Tucker, w h o discusses h o w t h e t e c h n i c a l s e r v i c e s m a i ' k e t has c h a n g e d since h i s c o m p a n y fu-st came to t h e r e g i o n 15 years ago.

OE samples some o f t h e r e c e n t d e v e l o p m e n t s and i n d u s t r y taU^ing p o i n t s i n t h e f i e l d s o f o f f s h o r e n a v i g a t i o n , p o s i t i o n i n g , m o o r i n g and a n c h o r i n g . C o u l d some c o m m o n sense be e m e r g i n g at l a s t f r o m aU t h e p o l i t i c a l b l u s t e r a b o u t B i g OU? Q u i t e p o s s i b l y says Rick von Flatern, b u t i t ' U be business as u s u a l soon. OE contacts (8), Q u i c k stats g u i d e (70), P r o d u c t s i n a c t i o n (77-80), F i r m s & faces (83/84), Conh-acts (84), D i a r y (86), D i s p l a y a d v e r t i s e r s i n d e x (88), B o o k s h o p (90-92), C l a s s i f i e d s (93). M a r k o f Schlumberger D 2006 Schlumberger

C O V E R

The latest A$10 billion investment plans for Australia's North West Shelf include an extensive makeover for the 22-year old North Rankin A platform to equip it to stay at the hub of expanded NWS operations and remain so to 2035 (see page 37).

PHOTO COURTESY WOODSIDE ENERGY.

contents

< A multi-finger caliper able to cope with life downhole at Total's

high pressure, high temperature Elgin-Franklin development is

among the evolving technologies and business strategies discussed in O E ' s latest review of the busy Scottish offshore scene (see page 46J.

11-16

DIGEST u s d r i l l e r s i n m u r k y w a t e r s ; n e w vessel

s p r e a d s t h e l o a d ; T y r i h a n s p u m p s i t u p subsea; g r e e n l i g h t f o r U S L N G t e r m i n a l s ; H i b e r n i a / H e b r o n r e s e r v e s c l i m b ; B T C ' s f i r s t c a r g o leaves T u r k e y ; E n i ' s E g y p t i a n b u i l d i n g b l o c k s ; F a r o e steps o n t h e gas; c o p t e r s e r v i c e s f e e l i n g t h e p i n c h ; O G P t u n e s i n t o m a r i n e m a m m a l s .

19-22

G&G NOTEBOOK

25-28

DIVINE INTERVENTION

V Also new from a Scottish-based firm and recently signed up for work offshore Australia is a multi-channel video acquisition system aimed primarily at the offshore pipeline inspection market (see page 73).

31-35

RUNNING R I S E R L E S S

I t w a s n ' t e x a c t l y W o r l d C u p fever, b u t t h e r e w a s a l o t t o be e n t h u s i a s t i c a b o u t a t t h e a n n u a l m e e t i n g o f t h e E u r o p e a n A s s o c i a t i o n o f G e o s c i e n t i s t s & E n g i n e e r s l a s t m o n t h i n V i e n n a . Andrew McBarnet w a s t h e r e . T h e n u m b e r o f subsea weUs i s g r o w i n g as i s i n d u s t r y c o n c e r n o v e r h o w t o e c o n o m i c a l l y a n d e f f i c i e n t l y r e - e n t e r

t h e m . Rick von Flatern

s u r v e y e d c o n t r a c t o r s a n d o p e r a t o r s a b o u t t e c h n o l o g i e s a i m e d a t p e r f o r m i n g l i g h t w e l l i n t e r v e n t i o n t h r o u g h t r e e s l o c a t e d o n t h e s e a f l o o r t h o u s a n d s o f f e e t b e n e a t h t h e w a t e r l i n e . C o n t i n u i n g i n t h e subsea i n t e r v e n t i o n v e i n , Rick von Flatern h a s f i r s t detaUs o f BP'S m e t h o d i c a l a p p r o a c h t o t h e d e v e l o p m e n t o f r i s e r l e s s s u b s e a systems, one o f w h i c h i s n o w b e i n g r e a d i e d f o r US G u l f f i e l d t r i a l s i n 3500ft o f w a t e r w w w . o f f s h o r e - e n g l n e e r . c o m O F F S H O R E E N G I N E E R | j u l y 2 0 0 6 3

hen depth is a

matter @f,

perception

get all the facts.

Extending the reach of subsea field tieback is one ofthe key enablers in the move to deepwater exploration and production. Going farther and deeper can increase risk, espe-cially when you don't know what conditions exist.

Schlumberger subsea service is your partner in assessing and managing subsea development and production risk. Our unique combination of experience and data-driven decision systems is what sets us apart and makes a bottom-line difference in risk reduction. It is this data-driven approach that is helping Statoil monitor its subsea flowline and ensure production at the Gullfaks C platform in Nonway.

When your subsea asset is concerned, we'll help you get all the facts you need to achieve your production goals.

Schlumberger—we connect you to your reservoir.

www^lb.coin/subsea

ScUmlieiiier

©2006 Schlumberger i6-Wr-056

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1

REGULAR FEATURES

W i t h p l a t f o r m d r U l i n g c u r r e n t l y u n d e r w a y a r a f t o f l i f e e x t e n s i o n a n d associated f i e l d d e v e l o p m e n t s i n t h e o f f i n g a n d i t s o n g o i n g ' r e g i o n a l h u b ' s t a t u s n o w a s s u r e d , b e d space i s a t a p r e m i u m o n o p e r a t o r Woodside's s t a l w a r t N o r t h R a n k i n A p l a t f o r m o f f W e s t e r n A u s t r a l i a David Morgan r e p o r t s . A n i n n o v a t i v e m e t o c e a n a n d t e n s i o n m o n i t o r i n g s y s t e m has b e e n i n s t a U e d o n SteUa, t h e g i a n t s i n g l e p o i n t m o o r i n g o f U o a d i n g b u o y s e r v i n g SheU N i g e r i a ' s d e e p w a t e r B o n g a FPSO. Brad Baethe r e p o r t s .

B u m p e r d o m e s t i c a n d i n t e r n a t i o n a l o r d e r b o o k s have e n l i v e n e d t h e S c o t t i s h o f f s h o r e scene o f l a t e . I n t h i s m o n t h ' s r e g i o n a l s p e c i a l , e d i t e d b y Darius Snieckus, OE h e a r s f r o m s o m e o f t h e l e a d i n g l i g h t s i n A b e r d e e n ' s e v o l v i n g p o p u l a t i o n o f i n d e p e n d e n t c o n t r a c t o r s , i n c l u d i n g P r o d u c t i o n S e r v i c e s N e t w o r k ' s B o b . KeiUer, CSL's K e i t h WaUace a n d P e a k ' s A n d r e w P a t e r s o n . We also r e v i e w r e c e n t t e c h n o l o g i c a l s t r i d e s m a d e b y t h e l i k e s o f P i s y s , Read WeU S e r v i c e s , E q u a l i z e r a n d F u t u r e t e c , a n d r e p o r t o n a r e c e n t i n t e r n a t i o n a l J I P g a t h e r i n g i n A b e r d e e n w h i c h s i g n a l e d r e a l p r o g r e s s a t l a s t o n t h e subsea s t a n d a r d i s a t i o n f r o n t . W i t h r i s e r m o n i t o r i n g n o w a n e s t a b l i s h e d a r t , t h e f o c u s i s o n h o w t h e i n f o r m a t i o n g a i n e d can best be u s e d n o t o n l y t o i m p r o v e r i s e r d e s i g n b u t also t o develop m o r e e f f e c t i v e i n s p e c t i o n , r e p a i r a n d m a i n t e n a n c e s t r a t e g i e s . OE r e v i e w s t h e l a t e s t d e v e l o p m e n t s w i t h t h e h e l p o f 2 H O f f s h o r e ' s Steve Hatton. I n t e r n a t i o n a l i s a t i o n s t r a t e g i e s a n d s e v e r a l waves o f M & A h a v e m a d e h u m a n c a p i t a l m a n a g e m e n t m o r e c o m p l e x t h a n e v e r f o r t h e o i l a n d gas i n d u s t r y A b s o f t ' s

Ian Mechle r e v i e w s t h e issues a n d o f f e r s some s o l u t i o n s . OE's l a t e s t I M R r o u n d - u p h a s r e p o r t s o n t h e r e i n f o r c e m e n t o f a s e m i s u b ' s l o w e r p o n t o o n s b y a T e x a s y a r d u s i n g SPS O v e r l a y steel s a n d w i c h c o n s t r u c t i o n a n d t h e d e p l o y m e n t o f a n i n n o v a t i v e p i p e l i n e i n s p e c t i o n s y s t e m o f f A u s t r a l i a . C o n g r e s s m e n a n d o t h e r s p o s i n g as p o p u l i s t h e r o e s a n d u s i n g t h e o i l i n d u s t r y as a c o n v e n i e n t p r o p c o m e i n f o r t h e c u s t o m a r y Rick von Flatern t r e a t m e n t .

OE c o n t a c t s (8), Q u i c k s t a t s g u i d e (11), P r o d u c t s i n a c t i o n (76/77), F i r m s (79), Faces (80), C o n t r a c t s (81), D i a r y (82), D i s p l a y a d v e r t i s e r s i n d e x (84), B o o k s h o p (86-88), ClassUieds (89).

I

COVER

At its UK North Sea Elgin-Franklin development, Total is targeting deep and complex satellite reservoirs including the Glenelg and West Franklin structures to add further reserves and production to the record-setting, 900 million boe HPHTfield (see page 44;.

Photo: Total

Volume 31 Number 9

contents

DIGEST

A The semisubmersible drilling unit N o b l e T h e r a l d M a r t i n left Port Arthur, Texas in July bound for Santana Island, Brazil to begin a four-year contract with Petrobras (see page 55^.

< A 650t buoy, designed and supplied by marginal fields solutions specialist Monitor Oil, is scheduled for installation on the Lyell field by the end of this year

and will be the first 'autonomous buoy' technology to come into operation in the North Sea. It will act as a power generation centre, supplying up to SMWof power to drive new electrical submersible pumps (ESPs) InLyell's subsea wells (see page 52).

27-34

OPTIMIZATION OPTIMISM

37-40

G&G NOTEBOOK

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1 ^ 1

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44-50

HIGH HOPES

J

m r e - e n gin e e r . com M i x e d n u m b e r s f o r w e s t e r n U S G u l f Sale; IOCS r o a d b u U d i n g i n M i d d l e East; Subsea Goosander takes w i n g ; R i n g o ' s s t a r rises; T o r n e r o s e t a r g e t e d . . . as T r o s t proves t r u e ; J a v a b u y - i n ; I n d u s t r y s t a n d a r d f o r weUs closer; G n u j o i n s h e r d ; D e e p w a t e r 'socket' catches wave; M i n k e m o v e .

SheU's C h a m p i o n West phase t h r e e d e v e l o p m e n t o f f B r u n e i c o u l d be l o o k e d b a c k o n as a w a t e r s h e d i n d i g i t a l o U f i e l d h i s t o r y B u t , g i v e n t h a t ' s m a r t ' capabUities are soon t o become f a r m o r e c o m m o n p l a c e o n t h e operator's m a j o r n e w g r e e n f i e l d projects, i t m i g h t equaUy e n d u p a f o o t n o t e .

Darius Snieckus speaks w i t h SheU e x e c u t i v e V R t e c h n i c a l , M a t t h i a s B i c h s e l . F o r m a j o r s a n d l a r g e i n d e p e n d e n t s , t h e m a g i c 100% reserves r e p l a c e m e n t f i g u r e c a n r a r e l y be a c c o m p l i s h e d t h r o u g h n e w discoveries alone b u t m u s t i n c l u d e a c q u i s i t i o n s a n d , m o r e r e c e n t l y i n c r e a s e d e m p h a s i s o n s i g n i f i c a n t i m p r o v e m e n t i n reserves r e c o v e r e d . Rick von Flatern l o o k s a t t h e e m e r g i n g p r o d u c t i o n s t r a t e g y k n o w n as ' p r o d u c t i o n o p t i m i z a t i o n ' .

I t m a y n o t e x a c t l y t r i p o f f t h e tongue, b u t w i d e - a z i m u t h is d e f h i i t e l y t h e b i g t a l l c i n g p o i n t i n t h e m a r i n e s e i s m i c a c q u i s i t i o n business. Andrew IVlcBarnet e x p l a i n s w h a t t h e e x c i t e m e n t is aU a b o u t .

N o t c o n t e n t w i t h b r i n g i n g o n s t r e a m t h e h i g h e s t pressm-e, h i g h e s t t e m p e r a t u r e f i e l d o n t h e p l a n e t - a n d t h e l a r g e s t d e v e l o p m e n t h i t h e UK; N o r t h Sea f o r t w o decades - T o t a l i s presseng ahead w i t h d r U l i n g a t E l g i n -F r a n k l i n t h a t is t a p p h i g e v e n deeper a n d m o r e c h a U e n g i n g sateUite r e s e r v o h s t o u n d e r p i n a 30-year f i e l d - l i f e a n d 260,000b/d p r o d u c t i o n p l a t e a u . Darius Snieckus r e p o r t s . O F F S H O R E E N G I N E E R | s e p t e m b e r 2 0 0 6

IT'S A BUOY

YARDS MEASURE UP

reflects on all of us.

More than 100,000 ESPs operating worldwide, from high-rate subsea wells to low-rate land wells, have one thing in common: significant opportunities for optimization.

Schlumberger espWatcher* service provides remote real-time surveillance and control of ESP systems that can effect a step-change improvement in production and lift system performance—with a corresponding reduc-tion in operating costs.

In use as part of the Axia* lifting service, the espWatcher system provided immediate notification to onshore engineers ofa pump failure in the Unocal Mahoni field offshore East Kalimantan, Indonesia. Thanks to the early warning, the engineers were able to act quickly, increasing drawdown and therefore production in an adjacent communicating well and minimizing the loss of field production overall.

Schlumberger—we connect you to your reservoir

www.slb.com/espwatcher

71-76

UN-PLUG AND PLAY

79/80

MOUNTING RANGE

Schlumberger

* M a r k of Schlumberger ©2006 Schlumberger

TECHNOLOGY TRANSFER

REGULAR FEATURES

The N o r t h Sea's f i r s t a u t o n o m o u s b u o y is a b o u t to be instaUed i n t h e LyeU f i e l d as a l o w cost, f a s t - t r a c k s o l u t i o n t o s u p p l y p o w e r f o r a d d i t i o n a l subsea oU p r o d u c t i o n . Terry Knott r e p o r t s . The f u t m - e o f t h e L a t i n A m e r i c a n p e t r o l e u m i n d u s t r y appears t o be at a crossroads, w i t h p o p u l i s m a n d c e n t r a l c o n t r o l o f t h e e c o n o m y b l o o m i n g i n some S o u t h a n d C e n t r a l A m e r i c a c o u n t r i e s , w h U e o t h e r s are l e a n i n g

t o w a r d s f r e e r e n t e r p r i s e . Rick von Flatern

l o o k s at a s m a U b u t s i g n i f i c a n t e x a m p l e i n B r a z U w h e r e o p e n m a r k e t p a r t i c i p a t i o n has r e s u l t e d i n reserves t h a t o t h e r w i s e worUd n e v e r have seen t h e l i g h t o f day Devon's Polvo p r o j e c t a n d Chousest's y a r d e x p a n s i o n are also e x p l o r e d .

A s t h e r u s h t o secure o f f s h o r e d r U l i n g r i g s a n d U o a t i n g p r o d u c t i o n u n h s c o n t i n u e s u n a b a t e d , s h i p y a r d s i n E a s t A s i a are t u r n i n g t h e n ' a t t e n t i o n t o t h i s l u c r a t i v e sector John Mueller r e p o r t s .

A s t h e u p s t r e a m i n d u s t r y b e g a n t o c o n s i d e r t h e p r a c t i c a l aspects o f d e e p w a t e r p r o d u c t i o n , one o f i t s earliest c o n c e r n s c e n t e r e d o n h y d r a t e a n d w a x f o r m a t i o n i n e x p o r t p i p e l i n e s . A s a r e s u l t , U o w assurance has been r a i s e d t o a p r i m a r y d e s i g n a n d o p e r a t i o n s c o n s i d e r a t i o n .

Rick von Flatern taUts t o t h r e e e x p e r t s o n t h e i r specUic facets o f t h e m a t t e r

L i t t l e has changed over t h e l a s t 40 years i n t h e w a y m o s t d i f f e r e n t i a l p r e s s u r e t r a n s m i t t e r s used f o r Uow m e a s u r e m e n t are connected, i n l a r g e p a i l because o f issues o f m e c h a n i c a l t o l e r a n c e . Pai'ker I n s t r u m e n t a t i o n ' s Brian Rice l o o k s at t h e p o t e n t i a l o f a t e c h n o l o g y f o r close-coupled i n s t r u m e n t m o u n t i n g , k n o w n as C C I M S , to c h a n g e t h e w a y t h e i n d u s t r y v i e w s ' h o o k u p s ' . T h e f a s t - g r o w i n g L N G i n d u s t r y i s l o o k i n g i n c r e a s i n g l y to t h e o f f s h o r e o U a n d gas sector f o r i t s f u t u r e t e c h n o l o g i c a l requh-ements. T e c h n i p ' s Phillip Cox r e v i e w s t h e t r e n d s . A f t e r t h e PR a n d i n d u s t r y faU-out t h a t has f o U o w e d i n t h e w a y o f c o r r o s i o n p r o b l e m s i n BP'S P r u d h o e B a y p i p e l i n e , Rick von Flatern w o n d e r s w h e t h e r c o m p a n i e s are s t U l h a v i n g d U f i c u l t y g e t t i n g t h e H S E message f r o m the b o a i ' d r o o m to o U f i e l d c o n t r o l r o o m ? OE contacts (8), Q u i c k stats g u i d e (92), P r o d u c t s i n a c t i o n (95-98), F i r m s (99), Faces (100), C o n t r a c t s (101), D i a r y (102), D i s p l a y a d v e r t i s e r s i n d e x (104), B o o k s h o p (106-108), C l a s s i f i e d s (109).

C O V E R

New-breed FPSOs such as SeaRose, now at work, for Husky Energy in the Jeanne D'Arc basin o f f eastern Canada, have benefited from the hard-won lessons learned by FPSO topside designers over the years fsee page Photo courtesy of AMKC, the Aker

Kvaerner/Kiewit Construction joint venture.

Volume 31 Number 10

contents

A This innovative combination cement batch mixer/cuttings injection unit from Halliburton is among the new technologies helping change the way drillers handle

drill cuttings disposal (see page 6 i ; .

_31-35

_{DORIS' DAY}

V The Hess Okume Complex boasts the first TLP twins to be delivered

concurrently. Now installed in the field they were transported from Korea to Equatorial Guinea on Dockwise's M i g h t y S e r v a n t 1 (see page 50).

Sim

ELECTRIC CHARGE

41-48

LOUISIANA LOOKOUT

S n o h v i t o ü p r o m i s e ; C G G a n d V e r i t a s t i e t h e I m o t ; T h u n d e r H o r s e stabled; s e m i s u b f o r Gjoa; Jack sets records; M a r s i n B i t t e r n o r b i t ; A s i a s p u r s p i p e l i n e b o o m ; ' D r U l e r ' f o r US G u h ; f i r s t G N G c a r r i e r s i n s i g h t .

N o one s h o u l d be s u r p r i s e d at CGG's o f f e r t o b u y r i v a l V e r i t a s D G G . B u t Andrew McBarnet ponders i t s w i s d o m a n d t h e lUcely e f f e c t o n the o f f s h o r e s e i s m i c business.

M e x i c o ' s state-owned o ü a n d gas c o m p a n y Pemex, has m a d e i t s f i r s t t e n t a t i v e m o v e i n t o deepwater d r D l i n g a n d p r o d u c t i o n . I n t h e r u n - u p t o n e x t m o n t h ' s P E C O M s h o w i n V ü l a h e r m o s a , Rick von Flatern r e v i e w s t h e c h a n g i n g M e x i c a n o f f s h o r e scene. I n t h e absence o f a n 'in-house m a r k e t ' , Paris-based D o r i s E n g i n e e r i n g has l e a r n e d t o r e m t o g e t h e r a c a n n i n e s s f o r g r o u n d b r e a k i n g R & D a n d c a r e f u U y n u r t m - e d r e l a t i o n s h i p s w i t h k e y o p e r a t o r s m p l o u g h h i g its o w n

fuiTow.

Darius Snieckus

asks c h i e f executive L o i c des Deserts w h a t m a k e s t h e c o m p a n y t i c k .

W h ü e t h e recent sale o f t h e f ü s t aU-electric s y s t e m t o T o t a l b y C a m e r o n Subsea Systems is w i d e l y p e r c e i v e d t o b e a m ü e s t o n e f o r t h e subsea i n d u s t r y some m a y be o v e r l o o k i n g i t s place i n t h e g r e a t e r cause o f subsea p r o c e s s i n g a n d even p e r h a p s t h e e v e n t u a l r e a l i z a t i o n o f t h e l o n g a w a i t e d subsea-to-beach concept.

Rick von Flatern r e p o r t s .

One y e a r a f t e r h u r r i c a n e s K a t r i n a a n d R i t a t o r e t h r o u g h t h e G i ü f o f M e x i c o , US e d i t o r

Rick von Flatern checks t h e p o s t - K a t R i t a p u l s e o f a cross s e c t i o n o f G u l f Coast,

c o n t r a c t o r s , service c o m p a n i e s a n d s u p p l i e r s .

w w w . o f f s h o r e - e n g i n e e r . c o m

When depth is a

Ml^

I

matter gf.perception

WEST AFRICA OFFSHORE

TWIN PEAKS

get all the facts.

Extending the reach of subsea field tieback is one of the key enablers in the move to deepwater exploration and production. Going farther and deeper can increase risk, espe-cially when you don't know what conditions exist.

Schlumberger subsea service is your partner in assessing and managing subsea development and production risk. Our unique combination of experience and data-driven decision systems is what sets us apart and makes a bottom-line difference in risk reduction. It is this data-driven approach that is helping Statoil monitor its subsea flowline and ensure production at the Gullfaks C platform in Norway.

When your subsea asset is concerned, we'll help you get all the facts you need to achieve your production goals.

Schlumberger—we connect you to your reservoir

www.slb.com/subsea

Schlumiiepger

TOTAL TALLY

GREAT EXPECTATIONS

61-64

MAKING THE CUT

67-71

VIEW FROM THE TOP

VL

73/74

NORTHERN LIGHTS

. AND ANOTHER THING

REGULAR FEATURES

W i t h i t s s i x p l a t f o r m s - i n c l u d h i g t w i n m i n i T L P s - n o w s u b s t a n t i a U y I n s t a l l e d a n d a d e v e l o p m e n t d i - i U m g s t a r t - u p i m m i n e n t , t h e O k u m e C o m p l e x l o o k s set f a h - t o m e e t i t s f i r s t o i l p r o d u c t i o n t a r g e t ai-ound t h e t u r n o f t h e year. O p e n m g OE's l a t e s t West A f r i c a n r e v i e w , David Morgan

r e p o r t s p r o g r e s s o n a $1.1 b i l l i o n p r o j e c t t h a t w U l m o r e t h a n d o u b l e t h e Hess C o r p o r a t i o n ' s p r o d u c t i o n a n d a c t i v i t y l e v e l s o f f E c [ u a t o r i a l G u i n e a . W h e n i t comes t o t a l k i n g o ü a n d gas i n West A f r i c a , T o t a l c a n l a y j u s t c l a h n t o h o l d i n g t h e l i o n ' s s h a r e a m o n g i n t e r n a t i o n a l o p e r a t o r s . Terry Knott c h e c k s o u t t h e Fi-ench s u p e r m a j o r ' s r e g i o n a l r e c o r d to-date. A s t a g g e r i n g s i x t e e n m i h i o n acres o f ' h i g h l y p r o m i s i n g ' a c r e a g e h a v e h e e n secm-ed b y H o u s t o n i n d i e H y p e r d y n a m i c s o f f t h e RepuhUc o f G u i n e a . C E O Kent Watts

b e l i e v e s t h e l i c e n c e m a y h o l d at l e a s t s i x ' w o r l d - c l a s s ' o ü a n d gas p r o s p e c t s .

E n v i r o n m e n t a l a n d t e c h n i c a l f o r c e s a r e c o m h i n i n g , e s p e c i a l l y o f f s h o r e , t o f o r c e d r U l e r s t o c o n s i d e r c a r e f u U y t h e f i n a l d i s p o s i t i o n o f d r U l c u t t i n g s . Rick von Flatern

t a l k s t o t w o o f t h e i n d u s t r y ' s l e a d e r s i n c u t t i n g s i n j e c t i o n s e r v i c e s a h o u t h o w t h e p r a c t i c e has c h a n g e d i n r e c e n t y e a r s f r o m a s i m p l e m a t t e r o f p u m p i n g w a s t e d o w n a w e l l b o r e a n n r U u s t o h e c o m e t h e p r e c i s e , h i g h l y t e c h n i c a l a n d e n v i r o n m e n t a U y s o u n d o p e r a t i o n o f t o d a y T w o e x p e r i e n c e d c a m p a i g n e r s w h e r e FPSO t o p s i d e f a c U U i e s d e s i g n i s c o n c e r n e d . A k e r K v a e r n e r ' s Andrew Mackay a n d Don Harrold, s h a r e w i t h O B r e a d e r s s o m e o f t h e i r c o U e c t i v e i n s i g h t s a n d l e a r n i n g s f r o m p a s t p r o j e c t s i n h o t h t h e g r e e n f i e l d a n d h r o w n f i e l d e n v i r o n m e n t s . OE samples some o f t h e t e c h n o l o g i c a l t a l k i n g p o i n t s a n d n e w p r o d u c t o f f e r i n g s at S t a v a n g e r ' s r e c e n t O N S show. T h e s e r v i c e sector i s w e l l a w a r e o f t h e r e c e n t r a d i c a l changes t o t h e o U i n d u s t r y h y m n s h e e t . . . b u t , w o n d e r s US e d i t o r

Rick von Flatern, s h o u l d s o m e b o d y t e U t h e operators? OE c o n t a c t s (8), Q u i c k s t a t s g u i d e (78), P r o d u c t s i n a c t i o n (81-84), F i r m s & f a c e s (87/88), C o n t r a c t s (90), D i a r y (92), D i s p l a y a d v e r t i s e r s i n d e x (93), B o o k s h o p (94-96),' C l a s s i f i e d s (97).

•

COVER

Building In Bohai Bay; The L a n J i a n g crane vessel installing the two-part topsides for the second of six wellhead platforms in the Peng Lai field, China's largest offshore discovery to date. The two-phase development will also boast a massive FPSO, with the biggest vessel hull yet constructed in China

(see page 22). Photo courtesy ConocoPhiUips.

contents

< An innovative casing expansion

assembly designed by Weatherford can be actuated through pressure from beneath it or pulled from

above using this hydraulic jack, as discussed in this month's solid expandable tubulars review (see page 5 i ; .

9-14

1'

1'

DIGEST

17-20

BOMBAY HIGH

22-36

CHINESE CHALLENGE

V Atlantia Offshore's deep draft semisubmersible hull was recently mated with the topside facilities that will serve the Gulf of Mexico's Independence Hub development (see page 10).

G l o b a l r i g fleet g r o w s ; C e n d o r o n song; U S G u l f l o w e r t e r t i a r y t r e n d ; E a s t A z e r i o n s t r e a m ; I n d e p e n d e n c e H u b m a t i n g ; O r q u i d e a blossoms: G j o a s e m i s u b a goer; H i g h I s l a n d h i g h ;

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b l e n d b r e w i n g ; T i t a n i a w a k e s ; B o h a i B a y b i n g o ; L o n d o n N o r t h c l a r i o n c a l l .

ASIA PACIFIC REVIEW

I n t h e t e n y e a r s s i n c e i t t o o k o v e r o p e r a t i o n o f O N G C ' s R a v v a f i e l d , S c o t t i s h i n d e p e n d e n t C a i r n E n e r g y h a s b u i l t i t s e l f a r e g i o n a l p o r t f o l i o o f s h a l l o w w a t e r , o n s h o r e a n d d e e p w a t e r assets w i t h r e s e r v e s t o t a l l i n g o v e r 1 b i U i o n hoe. I n h i s o p e n e r t o t h i s m o n t h ' s A s i a P a c i f i c r e v i e w , Darius Snieckus t a l k s t o e x p l o r a t i o n d i r e c t o r M i k e W a t t s a b o u t t h e c o m p a n y ' s e x p e r i e n c e s ' g r o w i n g u p i n I n d i a ' . A s C h i n a ' s l a r g e s t o f f s h o r e d e v e l o p m e n t p r o j e c t , P e n g L a i , e n t e r e d i t s l a t e s t f i e l d i n s t a l l a t i o n phase, Terry Knott w a s i n v i t e d b y o p e r a t o r C o n o c o P h i U i p s t o c h e c k p r o g r e s s to-date o n t h i s c h a U e n g i n g , world-class $3.5 b i l l i o n d e v e l o p m e n t . H i s c o m p r e h e n s i v e 10-page r e p o r t f o c u s e s o n C h i n a ' s a b i l i t y t o b u i l d a n d i n s t a U l a r g e f i x e d p l a t f o r m s a n d o n e o f t h e w o r l d ' s l a r g e s t FPSOs t o t a p a B o h a i B a y f i e l d

which

r e p o r t e d l y h o l d s a t l e a s t 500 m i U i o n b a r r e l s o f r e c o v e r a b l e oU. P a p u a N e w G u i n e a h a s e n t e r e d t h e c o m p e t i t i v e w o r l d o f p e t r o l e u m concessions i n a b i g way, p u t t i n g 15 b l o c k s c o v e r i n g 107,000km^ - a n d i n c l u d i n g d e e p w a t e r f r o n t i e r a c r e a g e - u p f o r b i d d i n g i n t h e c o u n t r y ' s f i r s t l i c e n s i n g r o u n d . John Mueller sat i n o n S e p t e m b e r ' s o p e n i n g S i n g a p o r e l e g o f a P N G r o a d s h o w t h a t w o u l d

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i n C a l g a r y H o u s t o n , L o n d o n a n d P e r t h .

w w w . o f f s h o r e - e n g l n e e r . c o m