Contents Offshore Engineer 2005

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ATLANTIC COMMUNICATIONS O f f s h o r e Engineer is published monthly by Atiantic Communications LLC, a company wholiy owned by IEI, Houston.

Atlantic CommLinications also publishes Asian Oil & G a s , the Guif C o a s t Oil Directory, the Houston T e x a s Oil Directory, the P e t r o P r o c e s s H S E Directory and the web-based industry news service OilOnline.com C h a i r m a n S h a u n W y m e s shaunw@oilonline.com P u b l i s h e r : Rob Garza tei: + 1 7 1 3 529 1 6 1 6 robg@oilonline.com S a l e s & IVIarketing d i r e c t o r : Brian N e s s e n tel: + 1 7 1 3 535 1 5 2 1 bnessen@Diloniine.com

Subscriptions:

To subscribe or note a change of address please either: e-mail:

subscription s@offshore€ngineer.com visit: www.offshore-engineer.com f a x : -1-1 7 1 3 8 3 1 1 7 7 8 R a t e s

$160/year - non-qualified requests.

Circulation:

Inquiries about back issues or delivery problems should be directed to our reader service website

www.offshore-englneer.com

OECE: CONFERENCES & EVENTS [

Director William (Bill) Furlow tel: +1 7 1 3 5 3 5 1 5 2 5 bfurlow@oilonline.com

IVIarketing development Tiffany Tosh t e l : -l-l 7 1 3 5 3 5 1 5 2 4

ttosh@oilonline.com E v e n t s manager Lisa Cads t e i : - f l 7 1 3 5 3 5 1 5 2 3 lcarls@oilonline.com

Repro by Screaming Colour. Printing by RR Donnelly & Sons. © 2 0 0 4 Atlantic Communications. All rights r e s e r v e d . Permissiorr should be sought Irom Rob G a r z a , publisher and director ot operations (robg@oilonline.com). betore any reproduction.

e

/ B P A

n D H L 0 irri D E

U S POSTAL INFORMATION: Offshore Engineer (USPS 017-058); (ISSN 9395-876X) is published monthly by Atlantic Communications LLC. Periodicals postage paid at Houston, TX and additional offices.

P o s t m a s t e r : send address corrections to Offshore Engineer, Atlantic Communications, 1635 W Alabama St, Houston, Texas 77006-4101.

@ europe office

Atlantic C o m m u n i c a t i o n s , The A r e n a , S t o c k l e y Park, Uxbridge, M i d d l e s e x U B l l l A A , UK T e l : -1-44 0 2 0 8 8 9 9 1 7 6 5 F a x : + 4 4 0 2 0 8 5 3 4 5 3 9 6 E d i t o r - i n - c h i e f ; David M o r g a n dmorgan@offshore-engineer.com E u r o p e a n e d i t o r ; Darius S n i e c k u s dsniecliUs@offshore-engineer.com S e n i o r e d i t o r ; Terry Knott terry.l(nott@btconnect.com C o n t r i b u t i n g editor; Andrew M c B a r n e t andrewmcbarnet@telus.net D e s i g n e r ; lan M c l n n e s imcinnes@offshore-engineer.com

(CE) americas office

A t l a n t i c C o m m u n i c a t i o n s , 1 6 3 5 W A l a b a m a , H o u s t o n , Texas 7 7 0 0 6 - 4 1 0 1 , USA T e l : +1 7 1 3 5 2 9 1 6 1 6 F a x : + 1 7 1 3 5 2 3 7 8 0 4 U S e d i t o r :

Rick von Flatern

tei: (-H) 7 1 3 8 3 1 1 7 8 0 rickv@oilonline.com I n t e r n a t i o n a l editor: Marshall DeLuca tel: (-Hl) 7 1 3 8 3 1 1 7 7 3 marshalld@oilonline.com

@ asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n R o a d S i n g a p o r e 0 8 9 5 3 8 T e l : +65 6 2 2 2 2 9 3 3 F a x : + 6 5 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : John Mueller jreports@starhub.net.sg telefax: (+65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n ; Annie Chan thejazzsax@pacific.net.sg January 2 0 0 5

7-10

Volume 30 No 1 DIMTI

15-24

Editoriai advisors

lan Ball [Shell international), Susan Cunningham iNoUe Energy), Edward Heerema {Aiiseas Marine

Contractors),

Prof Cliff Johnston {Johnston Environmental), Jon Marshall {GlobalSantaFe), Dave Moorhouse {Uoyd's Register), Dan Mueller {BJ services), Brian Skeels {FIVIC Kongsberg subsea), Don Weisinger {BP Deepwater

Development).

26-31

u s GLÜf deepwater trio tune up; Siitoli;man i n the frame for joint study;

Faroe-Shetland hopes rise; Bohai Bay I I spend; US MMS Steps into the loop; Wales catches LNG wave; Farragon forthwith; six team for flow assurance; Gardenia blooms; BP i n seismic shift; Singapore send-off for Development Driller II.

FORECASTING FIVE

With crude prices growing comfortable in the stratosphere, the o ü and gas industry had to acclimatise to life i n a more rarefied environment last year - and appears to be fuiding itself fitter for i t . Ringing i n the new for 2005, Darius Snieckus opens OE's annual forecast section sounding out recent diagnostics f r o m oü industry analysts Qmge IS). Root causes are on

Andrew McBarnet's mind as he examines how the 'who pays' mentality is

complicating matters for the seismics sector - and the oU and gas business at large {page 16). Meanwhüe, lan Fitzsimmons propounds that past is

prologue when it comes to LNG's fast-rising star (page 20). A n d rounding things off, Marshall DeLuca gives his brief on the 16 wise men convened by US president Bush to work out a new national ocean policy for a country w i t h water off three coasts (page 23).

SAKHALIN'S 6HALLENGES

The uniquely chaUenging combination of seismic activity and extreme ice conditions offshore Sal?halin Island has demanded new safety thinking for the design of the two platforms i n the Sakhalin I I development. Terry Knott was invited to talk to engineers on the project to learn how they have prepared for Sakhalin's tough environmental cocktaü.

THE RIGHT STUFF

At Marco Polo the watchword i n

completions planning was short cycle time and best-fit technology Along the way, eschewing integrated service contracts for an a la carte approach, independent operator Anadarko naUed down several firsts and records. Rick von Flatern reports. w 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 | j a n u a r y 2 0 0 6 | 3}

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Is your gas lift systenn

out of its depth

in deep water?

We're going to extremes

to improve production.

The XLift* high-pressure gas lift system is specifically designed for deepwater wells. Its 5,000-psi rated working pressure means that in deepwater wells the first injection valve can be placed below the mudline instead of in the riser. The increased gas injection depth enables you to maximize drawdown and recovery with fewer valves and mandrels in the completion.

By stabilizing injection pressure, the XLift system can reduce maintenance costs and increase your profit.

Schlumberger is going to extremes to improve your production in deep water. Contactwcp@slb.com for more information.

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Last month i n Houston, industry leaders honored the accomplishments of then- own w i t h the first ever Offshore Energy Achievement Awards. With the help of BP deepwater drilling team leader Don Weisinger, chairman of the awards selection committee, Oi? rims the rule over the winners and runners-up i n this special report.

ONWARD AND UPWARD

Cushioned by its mature oilfield focus and maderpinned by an unwaivering

commitment to R&D, downhole technology specialist Sondex has continued to make impressive strides i n the wake of its heavily oversubscribed 2003 stock market flotation. David IVIorgan reports.

A

MM mm pmmsm

FoUowing a fuel oil spUl and sinking of the Prestige off the Spanish coast, subsea contractor Sonsub was tasked w i t h verifying and working out how to recover the tanker's remaining contents without further envu'onmental damage. Saipem Norway's Stefano Vozza detaüs how the delicate operation was carried out and reflects on deepwater subsea intervention innovations achieved along the way

CUT PRICE INTERVENTION

With 2300 subsea completions clotted about the world's offshore provinces and another 2000 expected inside five years

-particularly i n deepwater - the Expro Group is moving to sharpen the economics of futm-e lightweight interventions w i t h an autonomous subsea system f i t for deployment f r o m low-cost surface vessels. Darius Snieckus reports.

NE SCOTLAND OFFSHORE

There ai-e many roads to

internationalisation, not aU of them paved or clearly signposted. For SpaiTows Offshore, the 2003 merger w i t h American

Aero and Titan Cranes gave the cosmopolüan marine crane specialist a shortcut into the one market stiU felt to be on the edge of the map - the US Gulf. Darius Snieckus opens this roundup of regional service industry talking points w i t h a look at Energy Cranes International's first year.

AND ANOTHER THING . . .

A New Year and fresh industry resolutions abomid, but wUl any of them be kept? Rick von Flatern, for one, isn't holding his breath.

REGULAR FEATURES

Quick stats giude (67), Products m action (69/70), Firms and faces (72), Contracts (72), Diary (74), Display advertisers mdex (74), Offshore Engineer bookshop (75-80), Classified advertising (81).

COVER

Something of a rarity on the offshore seen In recent years, concrete is making a comeback in the Russian Far East. Th construction of two gravity base platform - pictured is LunskoJ A - f o r the Sakhalin I development has required unique design solutions for, seismic and ice loading (see feature,

page 26).

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ATLANTIC COMMUNICATIONS O f f s h o r e Engineer is publislieci montlniy by Atiantic Communications LLC, a company wholly owned by IEI, Houston.

Atlantic Communications also publishes Asian Oil & G a s , the Gulf C o a s t Oil Directory, t h e Houston T e x a s Oil Directory, the P e t r o P r o c e s s H S E Directory and the web-based industry news service OilOnline.com C h a i r m a n S h a u n W y m e s shaunw@oilonline.com P u b l i s l i e r : Rob Garza tei: - H 7 1 3 5 2 9 1 6 1 6 robg@oilonline.com S a l e s & IVIarketing d i r e c t o r : Brian N e s s e n tel: -1-1 7 1 3 535 1 5 2 1 bnessen@oilonline.com

Subscriptions:

To subscribe or note a change of address please either: e-mail: subscriptions@offshore-engineer.coiTi visit: www.offshore-engineer.com f a x : +1 7 1 3 8 3 1 1 7 7 8 R a t e s $ 1 6 0 / y e a r - n o n q u a l i f i e d requests.

Circulation:

Inquiries about back issues or delivery problems should be directed t o our reader service website

www.offshore-engineer.com

O E C E : CONFERENCES & EVENTS |

Director William (Bill) Furlow tei: -f 1 7 1 3 5.-=!5 1 5 7 5 bfurlow@oilonline,com

IVIarketing development Tiffany Tosh tei: +1 7 1 3 5 3 5 1 5 2 4

ttosh@oilonline.com E v e n t s manager Lisa Cads tel: - f l 7 1 3 5 3 5 1 5 2 3 lcarls@oilonline.com

R e p r o by Screaming Colour. Printing by RR Donnelly & Sons. © 2 0 0 4 Atlantic Communications. All rights r e s e r v e d . Permission should be sought Irom Rob G a r z a , publisher and director of operations (robg@oilonline.com}. before any reproducbon.

us POSTAL INFORMATION: Offshore Engineer (USPS 017-058); (ISSN 9395-876X) is published monthly by Atlantic Communications LLC. Periodicals postage paid at Houston, TX and additional offices.

Postmaster; send address corrections to Offshore Engineer, Atlantic Communications, 1635 W Alabama St, Houston, Texas 77006-4101.

(£) europe office

A t l a n t i c C o m m u n i c a t i o n s , T h e A r e n a , S t o c k l e y P a r k , U x b r i d g e , M i d d l e s e x U B l l l A A , UK T e l : -1-44 0 2 0 8 8 9 9 1 7 6 5 F a x : - f 4 4 0 2 0 8 5 3 4 5 3 9 6 E d i t o r - i n - c h i e f : David IVIorgan dmorgan@offshore-engineer.com E u r o p e a n e d i t o r : Darius S n i e c k u s dsnieckus@offshore-engineer.com S e n i o r e d i t o r : Terry K n o t t terry.knott@btconnect.com C o n t r i b u t i n g e d i t o r : A n d r e w M c B a r n e t andrewmcbarnet@telus.net D e s i g n e r : l a n M c l n n e s imcinnes@offshore-engineencom

@ americas office

A t l a n t i c C o m m u n i c a t i o n s , 1 6 3 5 W A l a b a m a , H o u s t o n , T e x a s 7 7 0 0 6 - 4 1 0 1 , USA T e l : + 1 7 1 3 5 2 9 1 6 1 6 F a x : - E l 7 1 3 5 2 3 7 8 0 4 U S e d i t o r : Rick von Flatern tei: (-H) 7 1 3 8 3 1 1 7 8 0 rickv@oilonline.com i n t e r n a t i o n a l e d i t o r : M a r s h a l l D e L u c a tei: (-fl) 7 1 3 8 3 1 1 7 7 3 marshalld@oilonline.com

@ asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n R o a d S i n g a p o r e 0 8 9 5 3 8 T e l : + 6 5 6 2 2 2 2 9 3 3 F a x : + 6 5 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : J o h n M u e l l e r jreports@starhub.net.sg telefax: (-f65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n : A n n i e C h a n thejazzsax@pacific.net.sg

Editorial advisors

lan Ball (Sfie» IntemationsI), Susan Cunningham (Noble Energy), Edward Heerema {Aiiseas Marine

Contractors),

Prof Cliff Johnston {Johnston Eniironmental), Jon Marshall {GlobalSantaFe), Dave Moorhouse {Uoyrfs Register), Dan Mueller (ai services),

Brian Skeels {FMC Kongsberg Subsea), Don Weisinger (SP Deepivsler

Development).

Engineer

February 2 0 0 5

15

26

28

Volume 3 0 No 2

West A f r i c a l i n e back on track; M a d Dog out of the gates; Barents b i t between the teeth; BP boost for N o r t h Sea; Barracuda sui'faces; d r i l l i n g power f o r Benguela Belize tower; US ocean action p l a n a go; Plataforma Deltana h u n t on; Angostura sweeter; China tests takeover waters; Qatargas I I contract award; L N G strikes l i g h t f o r Beacon Port.

Darius S n i e c k u s reviews recent

i n i t i a t i v e s aimed at re-energising the U K N o r t h Sea subsea market and bolstering its exports of h o m e g r o w n subsea nous.

Ym mm' m©m

The drive to d r U l deepwater wells using surface BOPs on floating rigs continues to gain momentum. M a r s h a l l D e L u c a

reviews the latest i n d u s t r y guidelines and predictions for f h e technique's f u t u r e . Rick von Flatern connects the dots between SBOP ESG and SET.

UNDERBALANCING ACT

Already applied i n the N o r t h Sea and elsewhere, underbalanced d r i l l i n g seems set to explode on the offshore scene worldwide, i n c l u d i n g US waters.

R i c k von F l a t e r n runs the r u l e over a new smaU-footprint d r i U i n g separation package aimed straight at that market.

mmm RflONITORING

Real time checks on the behaviour of a deepwater d r i l l i n g r i s e r w i l l take a step f o r w a r d i n the US Gulf later t h i s year when a new m o n i t o r i n g and response evaluation system goes into service on Transocean's

Discoverer

Enterprise, d r i l l i n g f o r BP on the Thunder

Horse f i e l d .

TREES IIM DEPTH

V e r t i c a l or horizontal? I n the latest of his opinion pieces f o r

OE, consultant lan F i t z s i m m o n s

considers the effect BOP

t r i p p i n g has on Christmas tree selection f o r today's deepwater projects.

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Can you see

through walls?

With ABC, you can

ABC* Analysis Behind Casing services let you evaluate, reevaluate, and monitor —your formation; you can search for new zones and identify bypassed ones, and you can do it all after casing is set. With these innovative Schlumberger services, you can measure porosity, resistivity, lithology, shale content, fluid saturations and pressure; you can recover formation fluid samples, and you can save money. When wellbore instability prevented openhole logging ofthe lowest interval in a newly drilled Alberta well, ABC measurements provided the resistivity and porosity data. This accurate evalu-ation through casing saved 540,000 in perforating and testing costs. Forthe answers you need e-mail us at casedholeinfo@slb.com. www.slb.com/oilfield

Schlumberger

•Mark of SchlumbBiger PH_04_D37_D

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76-82

98 SAKEMLIW© MEW WAVE

Word last autumn of the BP-Rosneft wildcat f i n d on Sakhalin V is fanning the coals for a Russian Far East frontier play already seeing large-scale construction projects for both ExxonMobil's Sakhalin I

and the Shell-led Sakhalin I I development (Oi? last month). Darius S n i e c k u s updates his files on events and talking points i n this challenging offshore province.

L@yDgDANA LOOKOUT:

SUPPLEMENT

Once the center of the US offshore o i l and gas industry Louisiana has seen many of its largest industry players p u l l stakes i n recent years but a new

administration i n Baton Rouge is looking to stanch and even reverse that trend. Taking pride i n their offshore legacy specialist

companies i n the area continue to make a v i t a l contribution to Gulf of Mexico operations, technologies and support services, and, as OE's Rick von Flatern and Marshall DeLuca discovered i n their recent fact-finding tour, many of them are today looking to spread their influence f u r t h e r afield.

INVISIBLE LINK

Connectivity is key i n today's high-tech oil & gas operations, w i t h an elaborate sateUite network playing an increasingly vital, i f invisible, role i n bringing onshore and offshore operations closer together. As the industry edges ever closer to the dream of real-time, Marshall DeLuca checks progress to-date w i t h two leading players i n the satcom sector

TRAINING TALK

For OE's latest review of specialist education & training developments i n the offshore sector, Darius S n i e c k u s reviews the recent rapid growth of the

Petrofac/RGIT Montrose global training empire, David Morgan takes a look at a new cuttings re-injection t r a i n i n g facility that owner M - I Swaco believes w i l l make a world of difference, and Nickleby's Dr

Ron McLeod discusses the recent application of 'human factors

engineering' by a N o r t h Sea contracting j o i n t venture.

AND ANOTHER THING . . .

Rick von Flatern takes the industry's marketeers to task over the information overload on today's business cards.

REGULAR FEATURES

Quick stats guide (75), Products i n action (85/86), F i r m s and faces (88), Contracts (88), Diary (90), Display advertisers index (90), Offshore Engineer bookshop (92-96), Classified advertising (97), Mailbag (98).

COVER

Every single piece of equipment operating offshore, be it floating, bottom-founded, DP, moored, permanent or mobile. Is connected in some way back to land via some ofthe world's most advanced satellite communications systems - and they are getting cleverer by the day (see psg'e 69).

PHOTO COURTESY:

CapRock Communications, Houston.

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ATLANTIC COMMUNICATIONS O f f s h o r e Engineer

is pubiislied montiiiy by Atiantic Communications LLC, a company whoiiy owned by IEI, Houston.

Atlantic Communications also publishes A s i a n Oil & G a s , the Gulf C o a s t Oil Directory, the

Houston T e x a s Oil Directory, the P e t r o P r o c e s s H S E Directory and the

web-based industry news service

OilOnline.com C h a i r m a n S h a u n W y m e s shaunwisoilonline.com P u b l i s h e r : Rob Garza tei: - H 7 1 3 5 2 9 1 6 1 6 robg@oilonline.com S a l e s & IVIarketing d i r e c t o r : Brian N e s s e n tel: +1 713 5 3 5 1 5 2 1 bnessen@oilonline.com

Subscriptions:

To subschbe or note a change of address please either:

e-mail: subscriptions@offshor&engineer.com v i s i t : www.offshore-engineer.com f a x : - H 7 1 3 8 3 1 1 7 7 8 R a t e s $160/year-non-qualified requests.

Circulation:

Inquiries about back issues or delivery problems should be directed to our reader service website

www.offshore-engineer.coin

Director William (Bill) Furlow

tel: - H 7 1 3 5 3 5 1 5 2 5 bfuriow@oilonline.com

IVIarketing development Tiffany Tosh

t e i : -t-l 7 1 3 5 3 5 1 5 2 4 ttosli@oiionline.com

E v e n t s manager Lisa Carls

t e l : - t l 7 1 3 5 3 5 1 5 2 3 lcarIs@oilonline.com

Repro by Screaming Colour. Printing by RR Donnelly & Sons.

All rights r e s e r v e d . Permission shoold Oe sougfit trom Rob G a r z a , puOlisher and director of operations (fObg@oiionline.com). before any reproduction.

0 H L D V/ 1 • E

us POSTAL INFORMATION: Offshore Engineer (USPS 017-058); (ISSN 9395-876X) is published monthly by Atlantic Communications LLC. Periodicals postage paid at Houston, TX and additional offices.

P o s t m a s t e r : send address corrections

to Offshore Engineer, Atlantic Communications, 1635 W Alabama St, Houston, Texas 77006-4101.

(£) europe office

A t l a n t i c C o m m u n i c a t i o n s , The A r e n a , S t o c k l e y Park, Uxbridge, M i d d l e s e x U B l l l A A , UK T e l : -E44 0 2 0 8 8 9 9 1 7 6 5 F a x : +44 0 2 0 8 5 3 4 5 3 9 6 E d i t o r - i n - c h i e f : David M o r g a n dmorgan@offshore-engineer.com E u r o p e a n e d i t o r : Darius S n i e c k u s dsnieckus@offsliore-engineer.com S e n i o r e d i t o r : Terry K n o t t terry.knott@btconnect.com C o n t r i b u t i n g e d i t o r : Andrew M c B a r n e t andrewmcbarnet@telus.net D e s i g n e r : lan M c l n n e s imcinnes@offshore-engineer.coni

@ americas office

A t l a n t i c C o m m u n i c a t i o n s , 1 6 3 5 W A l a b a m a , H o u s t o n , Texas 7 7 0 0 6 - 4 1 0 1 , USA T e l : - E l 7 1 3 5 2 9 1 6 1 6 F a x : + 1 7 1 3 5 2 3 7 8 0 4 U S e d i t o r : Rick v o n Flatern tei: (-1-1) 7 1 3 8 3 1 1 7 8 0 rickv@oilonline.com i n t e r n a t i o n a l e d i t o r : M a r s h a l l DeLuca tei: i+l) 7 1 3 8 3 1 1 7 7 3 marshalld@oilonline.com

@ asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n R o a d S i n g a o o r e 0 8 9 5 3 8 T e l : -E65 6 2 2 2 2 9 3 3 F a x : - f 6 5 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : John M u e l l e r jreports@starhub.net.sg telefax: (-t65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n : Annie Chan thejazzsax@pacific.net.sg

Editorial advisors

lan Ball {Slwll international!, John Chianis {Houston Offshore

Engineering!,

Susan Cunningham ((Vott/e Energy), Edward Heerema {Aiiseas Marine

Contractors),

Prof Cliff Johnston {joimston Environmental), Jon Marshall {GlobalSantaFe), Dave Moorhouse {Lloyd's Register), Dan Mueller {BJ services), Brian Skeels {FMC Kongsberg Subsea), Don Weisinger {BP Deepwater

Development). match 2 0 0 5

7-12

mm

2 3 / 2 4

2 7 / 2 i

3 8 / 3 9

4 1 / 4 2

Volume 30 No 3

THIS IVIONTH

Spar rises over Malaysia deepwater; Five i n a row on block 31; Corocoro back on; First flow f r o m Central Azeri; North Sea satellite duo into orbit; Mooring marvels; Sakhalin n pipeline get second look; Onne Base open for business; TLP patents buy-up; US Gulf production 'alive and weU'; South Atlantic border bounty

mmmmmi ipmmm

After so many false dawns over the last five years, the marine seismic market is finally showing signs of revival. Andrew

McBarnet reports on the challenges that increased demand may present.

RE-EIVIERGING IVIED

With start-up last year of fhe Euro? billion West Libyan Gas Project and the handing out of awards on 15 blocks as part of the keenly-awaited first EPSAIV licensing round, Libya has taken dramatic strides towards its aim of retmming indigenous oU production to its historic peak of 3 mUlion b/d. Darius S n i e c k u s reports.

DELTA DAWN

A new underwater system for remotely controUing flooding and pigging

operations i n subsea pipelines has notched up its f i r s t successes i n the West Delta Deep development offshore Egypt. Terry Knott learns more.

SCOPE OF THINGS TO COME

Schlumberger has formally unveiUed its much-anticipated Scope system, haUed by the company as the next generation of logging while drilling tools. Rick von Flatern takes a look.

CONVERTING GAS TO CASH

According to statistics, Nigeria holds the greatest volume of oU reserves i n Africa, yet many feel that i t is the country's gas reserves that wiU b r i n g the greatest retLrrn

i n fhe futm'e. Marshall DeLuca reports.

BARGES LOOM LARGE

I n 15 years, a sprawling, bridge-linked village of floating barges and faculties built to produce the colossal shaUow water Kashagan oU field wUl dominate the skyline i n the n o r t h Caspian Sea. Today fabrication of the f i r s t module units to be instaUed on the $30 bUlion development off Kazakhstan is gathering pace. Darius Snieckus looks at the breakfhi-ougb contracts bestowed as part of operator Agip KCO's phase one development.

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Need to profile and

quantify complex

flow regimes?

Now you can.

Measurement of two- or three-phase flow in deviated and horizontal wells has always been based on assumptions and empirical equations—until now. With sensors positioned across the vertical axis ofa completion, the FloScan Imager* production logging service adds a new dimension by making simultaneous individual velocity and holdup measure-ments of water, oil, and gas phases, plus temperature and pressure measurements. Shorter and more maneuverable than conventional hardware, the FloScan Imager tool can be conveyed on wireline and coiled tubing, or as an integral part ofthe MaxTRAC* downhole.tractor system. FloScan Imager data have provided crucial inflow profile information in West Africa, the Middle East, and the North Sea.

Visit www.oilfield.slb.com/floscanimager to learn more. The time is now.

Schlumberger

•Mark of Schlumberger

4 3 4 5

EXTENDIN© lUE ©iPTH

As depletion of shallow water Gulf of Mexico shelf reserves continues, companies are inventing new ways to improve economics for these increasingly marginal fields. On fhe infrastructure side, a novel approach by ATP Oil & Gas not only brought the company substantial cost and schedule savings but also earned i t the 2004 Offshore Energy Achievement Award for innovation and technology Marshall D e L u c a reports.

SMARTER BUSINESS

When 'intelligent' field technologies and systems were f i r s t introduced i n the late-1990s, many were sceptical as to whether they would become part of the core E&P business. Five years on, as Shell EP's Grahaeme Henderson and Pieter Kapteijn confirm, digital oilfields are entering the oil and gas mainstream as important drivers of bottom-line performance improvement - and, more philosophically doing things 'differently and better'.

'PERFLESS' COMPLETION

IN PROSPECT

74

Concern over formation damage and efficiencies associated w i t h perforating has led to considerable improvements i n both the technology and the processes i n recent years. Now a JlP has developed and is delivering a method for 'perfless completion'. I n unconsolidated formations, say proponents, i t could conceivably replace traditional perforation practices. Rick von Flatern

reports.

A SEA OF RESOURCES

Energy supply reserves estimating, LNG and other industry hot buttons are certain topics of conversation at this year's Offshore Technology Conference i n Houston on 2-5 May As the annual event approaches, Marshall DeLuca highlights some of the more interesting items on the agenda.

. . . AND ANOTHER THING

Saviour time and time again of the international o ü industry technology along w i t h the investment to f u n d i t -must now come to the aid of the world-at-large. Rick von Flatern tunes out the discord over the Kyoto Accord.

REGULAR FEATURES

Quick stats guide (57), Products i n action (59/60), Firms and faces (62), Contracts (62), Diary (55/56), Display advertisers index (56), Offshore Engineer bookshop (67-72), Classified advertising (73).

COVER

High tech 3D nnulti-^streamer vessels like the Veritas Vi!<ing are back in demand as the market for marine seismic surveys picks up after five years in the doldrums. Recovery poses some challenges for contractors anxious not to repeat the mistakes ofthe late 1990s (see feature, page 17).

PHOTO COIIRTESV:

(7)

ATLANTIC COMMUNICATIONS O f f s h o r e E n g i n e e r

is pubiislied monthly by Atlantic Communications LLC, a company wholly owned by IEI, Houston.

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OECE; CONFERENCES & EVENTS |

Director William (Bill) Eurlow

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E v e n t s m a n a g e r Lisa Carls

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All rights reserv-ed. Permission should be sought trom Rob G a r z a , publisher and director ot operations (robg@oiion)ine.com). betore any reprorJuction.

lï • F L D W 1 D E

us POSTAL INFORMATION:

Offshore Engineer (USPS 017-058); (ISSN 9395-876X) is published monthly by Atlantic Communications LLC. Periodicals postage paid at Houston, TX and additional offices.

P o s t m a s t e r : send address corrections

to Offshore Engineer, Atlandc Communications, 1635 W Alabama St, Houston, Texas 77006-4101. EDITORIAL

@ europe office

A t l a n t i c C o m m u n i c a t i o n s , The A r e n a , S t o c k l e y Park, Uxbridge, M i d d l e s e x U B l l l A A , UK T e l : -E44 0 2 0 8 8 9 9 1 7 6 5 F a x : -E44 0 2 0 8 5 3 4 5 3 9 6 E d i t o H n - c h i e f : David M o r g a n dniorgan@offshore-engineer.com E u r o p e a n e d i t o r : Darius S n i e c k u s dsnieckus@offshore-engineer.coni S e n i o r e d i t o r : Terry Knott terryknott@btconnect.com C o n t r i b u t i n g e d i t o r : Andrew M c B a r n e t andrewnicbarnet@telus.net D e s i g n e r : lan M c l n n e s imcinnes@offshore-engineer.com

@ americas office

A t l a n t i c C o m m u n i c a t i o n s , 1 6 3 5 W A l a b a m a , H o u s t o n , Texas 7 7 0 0 6 - 4 1 0 1 , USA T e l : - E l 7 1 3 5 2 9 1 6 1 6 F a x : - E l 7 1 3 5 2 3 7 8 0 4 U S e d i t o r :

Rick von Flatern

tei: (-Hi) 7 1 3 8 3 1 1 7 8 0 rickv@oilonline.com I n t e r n a t i o n a l e d i t o r : M a r s h a l l DeLuca tei: (-1-1) 7 1 3 8 3 1 1 7 7 3 marshalld@oilonline.com

@ asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n Road S i n g a p o r e 0 8 9 5 3 8 T e l : -E65 6 2 2 2 2 9 3 3 F a x : -E65 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : John M u e l l e r jreports@starhub.net.sg telefax: (-1-65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n : Annie Chan thejazzsax@pacific.net.sg

Editorial advisors

lan Ball (Shell international), John Chianis (Houston Offshore

Engineenng),

Susan Cunningham (Noble Energy), Edward Heerema (Aiiseas Marine

Contractors),

Prof Cliff Johnston (Johnston Environmental), Jon Marshall (GlobalSantaFe), Dave Moorhouse (Lloyd's Register), Dan Mueller (BJ services), Brian Skeels (FMC Kongsberg subsea), Don Weisinger (BP Deepwater

Development). April 2005

7-12

1 5 / 1 6

I ' m ? ,

mm

mm,

4 1 / 4 2

1 f ) f m

Volume 30 No 4

mm

mmm

Nigeria rewrites deepwater rules; Sanha's next step; Tangguh LNG expands; Italy eyes energy sector reforms; Kazakhstan's export conundrum; Mutineer-Exeter's first flows; Thunder Horse raring to go; Sakhalin line to be rerouted; Caratinga comes i n ; Bohai Bay bonus.

MARS HEADS SUBSEA

Dubbed Mars, a new approach to subsea production boosting and processing recently demonstrated i n Aberdeen aims to offer operators greater f l e x i b i l i t y i n the way that they manage their fields. Terry Knott reports.

HOLSTEIN OUT TO PASTURE

When BP kicked off its recent deepwater Gulf of Mexico development spree, i t decided to begin the program by placing the world's largesf spar platform on the Holstein field. But putting together such a large project was no easy feat, as Marshall DeLuca reports.

ALVHEIM'S HOME TRUTHS

It may take its name f r o m the 'home of the elves' i n Norse mythology but there is nothing small-scale about the potential of Marathon's new 250 million, barrel oU development i n the Norwegian N o r t h Sea.

Darius S n i e c k u s appraises Alvheim.

DRILLING AHEAD

DrUling activity is up i n deeper water, to deeper geological horizons, through depleted zones and i n higher pressures and temperatures. Rick von Flatern highlights current industry initiatives focused on doing things better, faster and cheaper even as i t all gets more d i f f i c u l t . A n d Jon Symons asks: Where are the low-cost rotary steerable systems?

HIGH-VOLTAGE TROLL

The world's f i r s t high voltage direct current power supply f r o m shore to an offshore instaUation wiU soon be driving gas compressors on Norway's giant TroU A gas platform. Terry Knott has the detaUs.

DEPTH CHARGE

Records are meant to be broken and operators continue to prove the old adage by re-defining the deepest of the deep and the largest of the large among global deepwater projects. Marshall DeLuca

rewrites the record books yet again w i t h the latest of his project-by-project deepwater development reviews.

(8)

To the express

platform w e ve

added pressure.

79-94

131-134

139-145

162 K?RRY

24

TO -58 HOURS A V A I L A B L E mi:

GAINING GROUND

Britain's offsliore industry loolts to be slowly gaining ground i n its efforts to put the brakes on declining production levels. But new blood and new ideas are needed, as Darius Sniecl<us notes i n his opener to OE's latest UK offshore review. And éminence grise Sir Ian Wood, challenging the prevalent 'sunset industry' mindset, sets out the alternatives i n his 'tale of two

fLitures'.

BARENTS BOUNCEBACK

Hydro's 'unproducible' Obelix prospect i n fhe Barents Sea may quickly be consigned to the E & P annals as another case o f high hopes dashed i n Norway's search f o r the next world-class discovery but it's not all doom and gloom reports

Darius S n i e c k u s , opening OE's latest review o f the Scandinavian offshore

GATEWAY T© mm

Offshore regasification became a reality last month w i t h Bxcelerate Energy's f i r s t discharge of Malaysian LNG into its Gulf Gateway facUity 116 miles offshore i n the Gulf of Mexico.

David IVIorgan reviews this and other offshore LNG talking points.

A WEIGHTY ISSUE

The latest t h i n k i n g on weight minimization i n the construction of offshore structures and process facilities is reviewed for OE by Mustang Engineering's John Ellis and

Richard Shirley.

UPFRONT SEISMIC

Focusing his sights on the 'necessary evil' that is today's piecemeal approach to geophysical data collection and analysis, Multiwave Geophysical's

Rick Donoghue argues the case for 'doing i t aU u p f r o n t ' .

REPAIRS IN DEPTH

The repair of defective bolted flange connections, without separating and re-jointing, poses a particular challenge for deepwater pipeline operators. Furmanite's Mark Burton and

Dominic Dean examine the pros and cons of available repair methods.

. . . AND ANOTHER THING

With fhe circus back i n town, Rick von Flatern reviews the early energy sector antics of John K e r r y and other Washington big fop clowns.

REGULAR FEATURES

Quick stats guide (147), Products i n action (149/150),

Firms and faces (152), Contracts (152), Diary (154), Display advertisers index (154), Offshore Engineer bookshop (155-160), Classified advertising (161).

COVER . The hull for BP's Atlantis

semisubmersible -destined to become the world's second largest floating production unit after Thunder Horse -nearing completion In Korea's DSME yard. Now onboard Mighty Servant 1 and heading for a late May topsides outfitting engagement in the Gulf of Mexico, the unit will be installed in 6133ft of water on Green Canyon block 6 9 9 (see deepwater review, page 46). PHOTO: Marc Morrison. COURTESY: B P

PressupeKppess

The PressureXpress* service can provide accurate measurements of formation pressures and fluid mobilities in less than a minute—even at mobilities as low as 0.01 mD/cp.

Its minimal setting and retracting times maximize survey efficiency. And its " Smart Pretest* system enables precise

control to optimize drawdown and build-up profiles in low-permeability rocks. The PressureXpresstool is combinable with the Platform Express* logging sys-tem to give you the essential formation evaluation information you need on one logging run. Including the first.

Schlumbepger

(9)

ATLANTIC COMMUNICATIONS O f f s h o r e Engineer

is published monUily by Atlantic Communications LLC, a company wholly owned by IEI, Houston.

Atlantic Communications also publishes Asian Oil & G a s , the Gulf C o a s t Oil Directory, the

Houston T e x a s Oil Directory, t h e P e t r o P r o c e s s H S E Directory and the

OilOnline.com C h a i r m a n S h a u n W y m e s shaunw@oiloniine.com P u b l i s h e r : Rob Garza tei: +1 7 1 3 529 1 6 1 6 robg@oilonline.coni S a l e s & IVIarketing d i r e c t o r : B r i a n N e s s e n tel: +1 7 1 3 535 1 5 2 1 bnessen@oilonline.com

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Circulation:

inquiries about back issues or delivery problems should be directed to our reader service website

O E C E : CONFERENCES & E V E N T S ] Director William (Bill) Eurlow

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R e p r o by Screaming Colour. Printing by RR Donnelly & Sons.

All rights r e s e r v e d . Permission should be sought trom Rob Gar^a, publisher and director of operatioris {robg@oilonline.com). before any reproduction.

w o n L D W I D E

U S POSTAL INFORMATION:

Offshore Engineer (USPS 017-058); (ISSN 9395-876X) is published monthly by Atlantic Communications LLC. Periodicals postage paid at Houston, TX and additional offices.

Postmaster: send address corrections

(S) europe office

A t l a n t i c C o m m u n i c a t i o n s , T h e A r e n a , S t o c k l e y Park, U x b r i d g e , IVliddlesex U B l l l A A , U K T e l : • E 4 4 0 2 0 8 8 9 9 1 7 6 5 F a x : - E 4 4 0 2 0 8 5 3 4 5 3 9 6 E d i t o r - i n - c h i e f : David M o r g a n dniorgan@offshore-engineer.com E u r o p e a n e d i t o r : D a r i u s S n i e c k u s dsnieckus@offshore-engineer.com S e n i o r e d i t o r : Terry K n o t t terry, knott@btconnect.com C o n t r i b u t i n g e d i t o r : A n d r e w M c B a r n e t andrewnicbarnet@telus.net D e s i g n e r : lan M c l n n e s imclnnes@offshore-engineer.com

(CE) americas office

A t l a n t i c C o m m u n i c a t i o n s , 1 6 3 5 W A l a b a m a , H o u s t o n , Texas 7 7 0 0 6 - 4 1 0 1 , USA T e l : - E l 7 1 3 5 2 9 1 6 1 6 F a x : - E l 7 1 3 5 2 3 7 8 0 4 U S e d i t o r : Rick v o n Flatern tei: (+1) 7 1 3 8 3 1 1 7 8 0 rickv@oilonline.com I n t e r n a t i o n a l e d i t o r : M a r s h a l l D e L u c a tei: (-1-1) 7 1 3 8 3 1 1 7 7 3 marshalld@oilonline.com

(£) asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n R o a d S i n g a p o r e 0 8 9 5 3 8 T e l : -E65 6 2 2 2 2 9 3 3 F a x : - f 6 5 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : J o h n M u e l l e r j'reports@starhub.net.sg telefax: (-1-65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n : A n n i e C h a n thejazzsax@pacific.net.sg

Editorial advisors

lan Ball (Shell international), John Chianis (Houston Offshore

Engineehngl,

Susan Cunningham ( « o w e Energy), Edward Heerema (Aiiseas Marine

Contractors),

Prof Cliff Johnston (Johnston Environmental), Jon Marshall (GlobalSantaFe), Dave Moorhouse (Uoyd's Register), Dan Mueller (BJ services), Brian Skeels (RtK Kongsberg subsea), Don Weisinger (BP Deepwater

Development).

Offshore

Engineer

May 2005

9-12

16-18

22-26

Volume 30 No 5

THIS IVIONTH

Merger reunites C a l i f o r n i a n cousins; Thunder Horse at a gallop; Snohvit L N G work heads n o r t h ; More bite f o r Mad Dog; Spec buUding r e t u r n s f o r semis;

UK-Norway cooperative crossborder deal sealed; A g b a m i topsides p l u m f o r KBR; Offshore GTL noses ahead; F i r s t b a r r e l f r o m CHOPS.

y p [Pit5Dg(g(S)E3i

W i t h several competitors close on its heels, Schlumberger seems to be f i r s t across the l i n e w i t h a deep

electromagnetic d i r e c t i o n a l

propagation measurement M W D tool. R i c k von Flatern reports.

DIZZY DAYRATES

2 9 / 3 0

32-I • • 1— > Today's higher o i l prices seem f i n a l l y to have convinced operators to s t a r t t u r n i n g

' ^ ^ ^ Z Z m ^ ^ *° th"^ I'isht again, w i t h d r i l l i n g — contractors r e p o r t i n g a steady increase

i n u t i l i z a t i o n and deepwater dayrates heading towards the $400,000 m a r k . ODS-Petrodata's R o b e r t M o e r s updates

OE's r i g market f i l e s .

ZERO TOLERANCE

A m i n o r h y d r a u l i c o i l s p i l l f r o m the semi

Eirik Raiide last m o n t h h a l t e d d r U l i n g

midway t h r o u g h Statoil's h i g h - p r o f i l e Barents Sea w i n t e r e x p l o r a t i o n campaign. D a r i u s S n i e c k u s t a l k s to the N o r w e g i a n operator about E & P operations i n today's 'zero discharge' environment.

SPOTTING S P I L L S

Detecting the release of oU to the sea f r o m offshore instaUations or ships on a continuous basis is no easy task. B u t now a new technique has emerged that promises fo i d e n t i f y and r e p o r t oU spUls as they occur, as Terry Knott reports.

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

(10)

Engineer every well

with greater accuracy

and lower risk

36-40

•- j - ..;

4 2 / 4 3

Conceptual well planning—manage your risk, improve your well placement. In the time it takes to design a single well plan using conventiona! tools, O s p r & y ^ ^ Risk drilling risk prediction model can help design multiple well scenarios, analyze^ them, and quantify the alternatives in terms of risk, time, and cost. From there, make incremental improvements in your well design to arrive atthe best conceivable drilling plan..

In the drilling world, success is defined by reduced risk, efficient use of time, and money saved.

In the wodd of conceptual well design, that means Osprey Risk.

Contact your local SIS office or e-mail sisinfo@slb.com for more information.

©enabled

www.sis.slb.com/ospreyrisk

Schlumberger

'--yandOsp-r/Rsi =-e i r i i c i ' u ï f S c f i j u r ' t e ' S E r Jt^i^fdsr-iJ rifsien a i

4 4 / 4 5

4 7 / 4 8

51-56

Once destined f o r decommissioning by 2Ü06, Norway's veteran Oseberg development is on track to see its producing life extended to 2024 - and potentially to 2032. I n the f i r s t of a new OE series on Tate life' development projects, Darius S n i e c k u s talks to operator Norsk Hydro about this N o r t h Sea oilfield's 'value creating' future.

Rather than build a new floating production facility to develop its Gomez field i n the deepwater Gulf of Mexico, ATP O i l & Gas plans to convert the Rowan Midland d r i l l i n g semi to production mode and moor i t using a taut-leg polyester system. Todd V e s e i i s

and Robert S h i v e r s kick off this month's mooring & anchoring update w i t h a review of the station-keeping challenges involved.

DOPELESS CONNECTIONS

Slimhole d r i l l i n g and narrower

clearances between casing strings occupy the middle ground i n the deepwater battle to preserve hole size and lower driUing costs. Rick von Flatern talks to a pipe maker w i t h a p r e m i u m thread design targeting just that market.

TRAINING GROUND

New specialist oil and gas industry t r a i n i n g inUiatives i n Houston, Kuala L u m p u r and Aberdeen are among the ingredients of f h i s month's sector update.

f s

74

The Kyoto protocol was conceived i n haste and was superseded before the i n k was d r y says consultant lan Fitzsimmons,

arguing that the r i s k of climate change due to global w a r m i n g has been grossly overstated, as has the linkage between increased carbon dioxide emission and global w a r m i n g .

. . . AND ANOTHER THING

Such are the diverse commercial demands made of operations and service engineers that the contracting sector's best and brightest often f i n d fhey are speaking dUferent languages when i t comes to 'technology uptake'. Rick von Flatern goes looking for what is being lost i n translation.

REGULAR FEATURES

Quick stats guide (61), Publications (63), Products i n action (64/65), Firms and faces (66), Contracts (66), Diary (69), Display advertisers index (69), Offshore Engineer bookshop (70-72), Classified advertising (73).

•

COVER

Pnde International's Pride North America deepwater

semisubmersible (formerly the Marine 700) working offshore Angola for ExxonMobil. An increase in drilling activity and a shortage of deepwater rigs in the region Is beginning to create a strong uptick in dayrates with some recent contracts valued at over $300,000 per day (see pag-e 22).

(11)

A T U N T I C COMMUNICATIONS O f f s h o r e Engineer

is publisiied monmiy by Atlantic Communications LLC, a company wholly owned by

IEI, Houston.

OilOnline.com C h a i r m a n S h a u n W y m e s shaunw@oilonline.com P u b l i s h e r : Rob Garza tei: +1 7 1 3 5 2 9 1 6 1 6 robg@oilonline.com S a l e s & IVIarketing d i r e c t o r : Brian N e s s e n tel: -1-1 7 1 3 5 3 5 1 5 2 1 bnessen@oilonline.com

Subscriptions:

To subscribe or note a change of address please either:

e-mail: subscriptions@offshoreengineer.com v i s i t : www.offshore-engineer.com f a x : - H 7 1 3 8 3 1 1 7 7 8 R a t e s $ 1 6 0 / y e a r - nonoiualified requests.

Circulation:

Inqulnes about back issues or delivery problems should be directed to our reader service website

IVIarketing d e v e l o p m e n t Tiffany Tosh

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All rights r e s e r v e d . Permission should be sought trom Rob G a r z a , publisher and director ot operations

( r o b g i S o i l o n l i n e . c o m ) . before any reproduction.

(^

)

BPA

W O R L D W I D E

U S POSTAL INFORMATION:

Offshore Engineer (USPS 017-058}; (ISSN 9395-876X) is published monthly by Atlantic Communications LLC. Periodicals postage paid at Houston, TX and additional offices.

P o s t m a s t e r ; send address corrections

@ europe office

A t l a n t i c C o m m u n i c a t i o n s , The A r e n a , S t o c k l e y Park, Uxbridge, IVliddlesex U B l l l A A , UK T e l : • f 4 4 0 2 0 8 8 9 9 1 7 6 5 F a x : + 4 4 0 2 0 8 5 3 4 5 3 9 6 E d i t o r - i n - c h i e f : David M o r g a n dmorgan@offshore-engineer.com E u r o p e a n e d i t o r : Darius S n i e c k u s dsnieckus@offshore-engineer.com S e n i o r e d i t o r : Terry K n o t t terryknott@btconnect.com C o n t r i b u t i n g e d i t o r : A n d r e w M c B a r n e t andrewmcbarnet@telus.net D e s i g n e r : lan M c l n n e s imcinnes@offshore-engineer.com

@ americas office

A t l a n t i c C o m m u n i c a t i o n s , 1 6 3 5 W A l a b a m a , H o u s t o n , Texas 7 7 0 0 6 - 4 1 0 1 , USA T e l : + 1 7 1 3 5 2 9 1 6 1 6 F a x : - E l 7 1 3 5 2 3 7 8 0 4 U S e d i t o r : Rick v o n Flatern tei: (-H) 7 1 3 8 3 1 1 7 8 0 rickv@oilonline.com i n t e r n a t i o n a l e d i t o r : M a r s h a l l DeLuca t e i : (-1-1) 7 1 3 8 3 1 1 7 7 3 marshalld@oilonline.com

@ asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n R o a d S i n g a p o r e 0 8 9 5 3 8 T e i : -E65 6 2 2 2 2 9 3 3 F a x : • f 6 5 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : John M u e l l e r jreports@starhub.net.sg telefax: (-1-65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n : Annie Chan thejazzsax@pacific.net.sg

Editorial advisors

lan Ball {Shell Intemationat), John Chianis {Houston Offsliore

Engineering!,

Susan Cunningham {Noble Energi), Edward Heerema {Aiiseas Marine

Contractors),

Prof Cliff Johnston {Johnston Environmental), Jon Marshall {GlobalSantaFe), Dave Moorhouse {UoyrtS Register), Dan Mueller {BJ services), Brian Skeels {FMC Kongsberg subsea), Don Weisinger (ePOeepvvater

Devetopment). June 2 0 0 5

9-17

18-20

28-31

Volume 30 No 6

THIS MONTH

Oil industry faces 'enormous' challenge to change; Onyx strikes l i g h t off Norway; Statoil steers into US Gulf; Cal Dive i n spending spree; MMS studies i n Ivan's wake; Guovca comes up empty; Akpo advances. ANALYSIS: Players positioning for subsea processing push.

DEEPWATER INTERVENTION

Decades of development have given the industry a plethora of well intervention tools, but extreme deployment costs have discouraged operators f r o m using them. ExxonMobil unveils a timely addition to fhe market. Rick von Flatern reports.

AMERICAS OFFSHORE

BRAZIL'S GLOBAL BEAT

With new developments coming onstream and new technology mider development, Petrobras continues to stand at the forefront of the deepwater industry Marshall D e L u c a opens this month's Americas offshore update w i t h a report on the company's latest dealings both w i t h i n Brazil and on the

international scene.

REINVENTING VENEZUELA

Though years of t u r m o i l and tensions w i t h the US contuiue to cast a shadow over Venezuela, the fact the country boasts the largest o i l reserves i n the western hemisphere and ranks as the world's f i f t h largest o i l exporter keeps i t an active hot spot f o r foreign operators.

Marshall DeLuca reviews recent events.

CANADIAN ROSE

AU news of late f r o m fhe White Rose project off Canada's east coast is appai-ently good. On budget and on time, according fo operator Husky, production tests indicate the thmd m a j o r

development i n the Jeanne D'Ai'c basin wül live up to ifs early b i l l r n g and then some. Rick von Flatern reports.

OLD LAKE, NEW TRICKS

Lake Erie, one of the oldest 'offshore' provinces i n N o r t h America, rarely gets a mention i n these days of rampant deep and ultra-deep activity elsewhere.

Marshall DeLuca restores the balance w i t h a report on how Talisman continues to re-work weUs to m a i n t a i n fhe lake's key contribution f o Canadian gas supply

(12)

oing to extremes

to improve production.

The XLift* high-pressure gas lift system is specifically designed for deepwater wells. Its 5,000-psi rated working pressure means that in deepwater wells the first injection valve can be placed below the mudline ' instead of in the riser. The increased gas injection depth enables you to maximize drawdown and recovery with fewer valves and mandrels in the completion.

By stabilizing injection pressure, the XLift system can reduce maintenance

costs and increase your profit.

-Schlumberger is going to extremes to-^ improve your production in deep water. Contactwcp@slb.com for more information.

www.oiifield.slb.com/xlift

Schlumbepger

"MarkolSchlumbergBr

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Government approval of Statoil's N1&14.5 bUlion Statfjord late life project came lüie a belated anniversai'y present for the Norwegian North Sea field, 25-years old last November But, as Darius Snieckus explains i n the latest of his late life project reports, far f r o m being a silver-fhemed send-off, the operator's plan wUl breathe new life into the veteran field by switching production f r o m oU to gas - and tapping volumes equal to a 'medium-sized discovery'.

OTC .05 REVIEW

SHOW TIME

OTC .05 drew a 20-year record high of 51,320 participants f r o m 110 countries to Houston's Reliant Center last month, w i t h conference chairman Rod A l l a n enthusing that 'some of the brightest minds discussed ideas that w i l l define the course of the industry d u r i n g fhe next decade'. OE writers were on hand to capture the mood and some of the highlights of a conference themed: 'A sea of resources - an ocean of knowledge'.

RECOVERING LOST GAS

T h i n k LNG and the m i n d turns to the growing number of billion-dollar liquefaction and regasification plants planned for construction worldwide. With a new LNG FPSO targeting the lOOtcf of stranded or associated gas going

unmonetised worldwide, however, ABB is suggesting the o i l and gas industry think bigger still. Darius S n i e c k u s checks out this and other recent offshore LNG offshore talking points..

SHIFTING SANDS

Channel sands have emerged as a key focal point f o r operators i n the deepwater US G u h of Mexico at a fime when production/reserve ratios have increased f r o m historic lows of 10% to recent highs of 30%, as Darius S n i e c k u s

reports.

EASTERN PROMISE

Propelled by the improving fortunes of global drUluig conhactors, and i n particular a rash of premium jack-up orders, Singapore's shipyai-ds have been making hay i n recent months.

Joiin Mueller summarises t h e h recent successes.

. . . AND ANOTHER THING

Ear to the ground and finger on the pulse,

Rick von Flatern samples some of the sights and sounds at the annual OTC jamboree i n Houston.

REGULAR FEATURES

Quick stats guide (71), Products i n action (73/74), F i r m s and faces (77), Contracts (78), Diary (81), Display advertisers index (81), Offshore Engineer bookshop (83-84), Classified advertising (85).

COVER

The finishing touches being applied to the SeaRose FPSO at Marystown, Newfoundland, before the vessel goes into service on Husky's White Rose field off eastern Canada later this year (see feature, page 27).

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@ europe office

A t l a n t i c C o m m u n i c a t i o n s , T h e A r e n a , S t o c k l e y Park, U x b r i d g e , M i d d l e s e x U B l l l A A , UK T e l : -E44 0 2 0 8 8 9 9 1 7 6 5 F a x : + 4 4 0 2 0 8 5 3 4 5 3 9 6 E d i t o r - i n - c h i e f : David M o r g a n dmorgan@offshore-engineer.com E u r o p e a n e d i t o r : D a r i u s S n i e c k u s dsnieckus@offshore-engineer.com S e n i o r e d i t o r : Terry K n o t t terry.knott@btconnect.com C o n t r i b u t i n g e d i t o r : A n d r e w M c B a r n e t andrewmcbarnet@telus.net D e s i g n e r : lan M c l n n e s imcinnes@offshore-engineer.com

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@ asia-pacific office

A t l a n t i c C o m m u n i c a t i o n s 7 9 C D u x t o n R o a d S i n g a p o r e 0 8 9 5 3 8 T e l : -E65 6 2 2 2 2 9 3 3 F a x : -E65 6 2 2 2 2 5 5 1 A s i a - P a c i f i c e d i t o r : J o h n M u e l l e r jreports@starhub.net.sg telefax: (-f65) 6 4 4 2 5 4 5 2 A d m i n s t r a t i o n : A n n i e C h a n thejazzsax@pacific.net.sg

Editorial advisors

lan Ball {Shell intemational), John Chianis {Houston Offshore

Engineering),

Susan Cunningham {Noble Energy), Edward Heerema {Aiiseas Marine

Contractors),

Prof Cliff Johnston {Johnston Environmental), Jon Marshall {GlobalSantaFe), Dave Moorhouse {UoydS Register), Dan Mueller ( e j s e r w c e s ) ,

Brian Skeels {FMC Kongsberg subsea), Don Weisinger {BP Deepwater

Development). July 2005

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mm

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Volume 30 No 7

THIS IVIONTH

Russian f i r s t as S a k h a l i n sets sail; Gorgon gets going; Sevan seconds; another Falklands foray; US Gulf tiebacks take off; UKCS b i d d i n g boost; late-life Lufeng; P e r u v i a n l i g h t ; pipelayers proliferate; semis j o i n r i g market r u s h

MATURE APPROACH

T h i s year's Offshore Europe conference chairman, Schlumberger CEO A n d r e w Gould, discusses the state of the offshore i n d u s t r y i n general, and N o r t h Sea prospects i n particular, w i t h OE's R i c k von Flatern.

SEISMIC SMILES

Basking i n the Spanish sunshine, a n d w i t h business booming f o r the f i r s t t i m e i n years, delegates to last month's European Association of Geoscientists and Engineers annual meeting had plenty to smile about. Andrew M c B a r n e t reports f r o m M a d r i d .

SOLITAIRE SHAPES UP

.J _ The world's largest pipelay vessel,

Solitaire, is midway

t h r o u g h a m a j o r upgrade programme that w i l l endow her w i t h u n r i v a l l e d deepwater i n s t a l l a t i o n capability Terry Knott

checks i n w i t h vessel owner AUseas f o r an exclusive, in-depth r e p o r t on the key changes and how they w i l l help keep Solitaire ahead of the pack i n an ever-challenging market.

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Is protecting your

deepwater wells

important to you?

SUBSEA SPECIAL

FLOW FACTS

Bringing high-rate, subsea developments online is half the job. Keeping them online is the other half. I n his opener fo this month's subsea review, Rick von Flatern

looks at the Increasingly Important science of flow assm-ance hi flow lines laid through mUes of near-freezing water

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TALKING TIEBACKS

Subsea tiebacks continue to gain i n populai-ity as a means of producing mai'ginal deepwater fields i n the Gulf of Mexico. But w i l l they ever supplant the use of di-y trees and floating structures?

Marshall DeLuca polls the experts.

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AXIAL ADDITIVE

Pushing subsea developments fo the lüti-a-deepwater extremes of the Afwater Valley Producers project posed a number of design questions, not least over the dynamic umbilicals r i m n l n g between the host and the anchor fields on the seafloor Marshall DeLuca reports.

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ELECTRIC AVENUE

Just a year down the road h'om its unveUing, the pioneering CameronDC all-electi'ic subsea system has completed field testing and been declai-ed f i t for sei-vice. Marshall DeLuca reports.

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HOME AND AWAY

With his organisation's second anniversary just around the corner, Subsea U K chief executive David Pridden

reviews its progress at home and abroad.

FRIGG'S FINALE

Frigg, the first Norwegian gas field to come onstream, gets another entry I n the record books soon when - after 27 years of production - its four-year 'deconstruction' gets under way Darius Snieckus tall?s to operator Total and key players i n the decommissioning programme.

58 FLUID THINKING

Environmental considerations are never far from the minds of decommissioning project managers. John Harrison explains how microemulsion technology can help clean up the heavily contaminated f anlcs and pipework of decommissioned facilities.

. . . AND ANOTHER THING

First came the oU shocks, then . . . the snooze. Rick von Flatern wonders why officialdom and 'the driving public' have kept so quiet over recent price hikes.

REGULAR FEATURES

Quick stats guide (61), Products i n action (63-66), Publications (66), Fii-ms and faces (67), Contracts (67), Diaiy (69), Display advertisers index (69), Offshore Engineer bookshop (70-72), Classified advertismg (73).

COVER

Pipeline passing over new rollerboxes in the stinger of pipelay vessel Solitaire. The 'jewel In the crown' of the expanding Allseas fleet is midway through a Euro70 million upgrade programme to enable her to lay large diameter lines In very deep water (see feature, page 22).