Contents Offshore Engineer 2007

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COVER

The Chevron-operated Agbami development o f f Nigeria continues to make good progress after the years of starts and stops leading up to its eventual official sanction in 2005. The project's centerpiece lOO.OOOt floating production storage and offloading vessel, to be moored in 4700ft of luater, luill set a netv ivorld benchmark for FPSOs when it goes into service in 2008. PHOTO: COURTESY CHEVRON

ECLIPSE* software through rapid response services. "iVlade critical field development decisions in a tight timeframe while achieving operational Bxpenditure and activity goals." BG Group. Petrel software. "Accurately visualized the geometry of a complex fault system and drilled the second most productive basement well in Vietnam's history." Hoan Vu JOG.

E x p e r i e n c e a l A / h o l e n e w l e v e l o f e f f e c t i v e n e s s .

Schlumliergep

CASH QUESTIONS

i f

MORTH AMD SOUTH

49-51

CLOSING THE GAP

52/53

SOUNDING BOARD

O O O O

0 öv

© 0 0 0

O- -0 • -Q- • ö" -1=>

0 y

ö 0 0 0 O

AND ANOTHER THING

REGULAR FEATURES

T h e cash is f l o o d i n g i n to o i l c o m p a n y c o f f e r s b u t i n S o u t h e a s t A s i a , w i t h o p p o r t u n i t i e s scarce, costs r i s i n g a n d e q u i p m e n t / p e o p l e r e s o u r c e s c o n s t r a i n e d , i t r e m a i n s to be seen h o w r e a d i l y t h e w i n d f a l l w i U t r a n s l a t e i n t o i n c r e a s e d u p s t r e a m i n v e s t m e n t , a c c o r d i n g t o E n e r g y f i l e s ' D r Mlchael R Smith. I n d u s t r y i n t e r e s t i n t h e v a s t h y d r o c a r b o n r e s e r v e s r e c k o n e d t o be l y i n g u n t a p p e d w i t h i n t h e A r c t i c C i r c l e has b e e n r e n e w e d o f late i n the s c r a m b l e t o f i n d n e w sources o f o i l a n d gas. B u t , as Darius Snieckus r e p o r t s , q u e s t i o n s s t i l l s u r r o u n d u l t i m a t e r e c o v e r y c a l c u l a t i o n s -a n d h o w best to get f u t u r e g -a s - d o m i n -a t e d p r o d u c t i o n t o m a r k e t . H i g h c r u d e p r i c e s g e n e r a l l y m e a n h i g h s p i r i t s i n t h e U K N o r t h Sea these days, b u t , as Darius Snieckus r e p o r t s , t h e m o o d -a n d mess-age - -at t h e i n -a u g u r -a l U K O O A O i l & Gas C o n f e r e n c e i n A b e r d e e n was f a r f r o m t r i u m p h a l i s t . H e a l s o r e p o r t s o n a L o n d o n f o r u m d i s c u s s i n g w h e t h e r t h e s o u t h e r n N o r t h Sea is ' a n o p p o r t u n i t y o r s p e n t f o r c e ' . T h e US M M S e s t i m a t e s 56 b i l l i o n boe r e m a i n t o be d i s c o v e r e d i n t h e d e e p w a t e r US G u l f . B u t k n o w i n g i t is t h e r e a n d m a x i m i z i n g d r a i n a g e of t h e r e s e r v o i r are s e p a r a t e issues. B P c o n s u l t a n t Graham Openshaw teUs OE o f a p r o j e c t a i m e d at c l o s i n g t h a t gap w i t h p a r t i c u l a r e m p h a s i s o n t h e c r i t i c a l r o l e o f ROVs. O n e o f t h e f e w c o n s t a n t s i n t o d a y ' s m a t u r e o i l a n d gas p r o d u c t i o n e n v i r o n m e n t is t h e n e e d f o r a c c u r a t e , c o s t - e f f e c t i v e m u l t i p h a s e f l o w m e a s u r e m e n t , e s p e c i a l l y i n n e w f i e l d s w h i c h are o f t e n c o m m i n g l e d a n d t i e d b a c k t o e x i s t i n g p l a t f o r m s o r f o r f i e l d s w i t h u n m a n n e d p r o d u c t i o n f a c u l t i e s . T U V N E L ' s Alick MacGilllvray r e v i e w s t h e state o f t h e a r t .

M u s i n g o n t h e o n g o i n g c l i m a t e c h a n g e debate.

Rick von Flatern m a r v e l s

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The Ice M a i d e n f c e n t e r j , a Russian ice-breaker now having multipurpose support vessel and flotel trappings attached in Mobile, Alabama, ivill be deployed first in the North Sea but new oivner C&M Marine Services sees the converted vessel returning to Russian Arctic ivaters before long (see page 58).

Volume 32 Number 2

R u s s i a w r e s t s c o n t r o l o f S a k h a l t n I I ; E s p a d a r t e S u r s t r e a m s ; D u m b a r t o n d e l i v e r s ; G E b u y s Vetco G r a y ; A l v e a h o y ; US d e e p w a t e r leases f a c e r e n e g o t i a t i o n ; P l a i n s a i l i n g f o r K i l c e h c a t a m a r a n f l o a t o v e r ; I t a l i a n j o b o f f T i m o r Leste; Japanese b a n k b a c k s P e m e x ; E - O c t o p u s s t r e t c h e s i t s legs; C y p r u s o f f s h o r e opens; H i b e r n i a S o u t h i n t h e c r u c i b l e .

Darius Snieckus r e p o r t s o n w h y o i l a n d gas

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STEPWISE SUBSEA

drilling performance

plus reliability

in hot wells

Powepflpiue X5

Our new PowerDrive X5* rotary steerable

system is engineered from the ground up to

give you unprecedented drilling performance

and reliability You can drill longer runs, optimize

wellbore placement, and reduce drilling time.

It has a temperature rating of 302 degF and

a near-azimuthal gamma ray providing

close-to-the-bit, real-time detection of shale/sand

layers, faults, and bed boundaries. In addition,

the new downlink and inclination hold

functions allow fast, accurate control of

trajectory with minimum intervention from

the directional driller

In the Gulf of Mexico, a PowerDrive X5

system saved an operator 4 days of rig time

and USD 460,000, drilling a 2,300-ft

side-track section in less than 33 hr in downhole

temperatures above 300 degF.

www.slb.com/powerdrivex5

Schlumbepger

•Markof Schlumberger ©20Q7 Schlumberger. 07-Dfl-O93

40/41

UNDERWATER EVERYWHERE

42/43

44-47

FLIGHT SCHOOL

GREAT DANE

48-50

BUZZARD ON HIGH

53-58

GULF COAST FOCUS

X T

61/62

PIPE PROMISE

76 REDISCOVERY CHANNEL

86 •\:

t •. AND ANOTHER THING

REGULAR FEATURES

I n c r e a s e d r e c o v e r y p o t e n t i a l f i r s t l e d S t a t o i l i n 2003 t o devote $180 m i l l i o n t o a n R & D p r o g r a m m e a i m e d at d e v e l o p i n g t h e subsea t e c h n o l o g i e s t h a t c o u l d b o o s t u l t i m a t e o u t p u t f r o m i t s N o r w e g i a n f i e l d s

b y 1 b i l l i o n boe. Now, as Darius S n i e c k u s

describes, t h a t v i s i o n is b e i n g e x p a n d e d to c u t t h e cost o f e a c h subsea w e l l b y h a l f as p a r t o f i t s ' M M X ' a m b i t i o n s . ' E n h a n c i n g a n d e n a b l i n g ' a u t o n o m o u s u n d e r w a t e r v e h i c l e t e c h n o l o g y i s t h e k e y n o t e o f BP's A U V d e v e l o p m e n t p r o g r a m m e . Darius Snieckus r e p o r t s . G r o w i n g use o f R O V s i m u l a t o r s , says Jason TIsdall o f G e n e r a l Robotics, i s i n d i c a t i v e o f t h e chaUenges f a c e d b y d e e p w a t e r E&P. H a v i n g ensconced i t s e l f o n t h e U K C S t h r o u g h a g o - g e t t i n g b u y - u p o f r e g i o n a l K e r r - M c G e e assets i n 2005, D e n m a r k ' s M a e r s k O i l l a s t m o n t h b r o u g h t o n s t r e a m its f i r s t m a j o r U K N o r t h Sea d e v e l o p m e n t p r o j e c t - r e c o m m i s s i o n i n g o f t h e a b a n d o n e d D o n a n f i e l d . Darius Snieckus l o o k s b a c k over t h e c o m p a n y ' s e v e n t f u l f i r s t y e a r i n A b e r d e e n . One o f t h e N o r t h Sea's l a r g e s t o i l f i e l d s t o be d i s c o v e r e d i n r e c e n t y e a r s also c a m e i n t o p r o d u c t i o n i n J a n u a r y . Terry Knott t a k e s a p i c t o r i a l l o o k at N e x e n ' s B u z z a r d d e v e l o p m e n t a n d n o t e s i t s i m p o r t a n c e i n h e l p i n g t h e U K t o r e g a i n i t s s t a t u s o f a n e t o U e x p o r t e r T o d a y ' s G u U o f M e x i c o h a s a d e c i d e d l y s p l i t p e r s o n a l i t y Rick von Flatern o p e n s OE's l a t e s t G u l f Coast f o c u s f e a t u r e w i t h a l o o k at h o w t h e t w o faces are a f f e c t i n g a n d b e i n g a f f e c t e d b y t h e issue o f r i g a v a i l a b i l i t y A H F I p i p e s y s t e m w a s d e s i g n e d a n d i n s t a l l e d t o a v o i d h y d r a t e b u i l d - u p d u r i n g t r a n s p o r t o f p r o d u c t i o n f r o m t h e F o r v i e N o r t h gas f i e l d t o t h e h o s t A l w y n N o r t h p l a t f o r m . T o t a l ' s Brian Bell a n d M a n n e s m a n n F u c h s R o h r ' s Hendrik Löbbe a n d Mlchael Blek d i s c u s s t h i s n o v e l a p p l i c a t i o n . Darius Snieckus p e r u s e s t h e O f f s h o r e E u r o p e 2007 p r o g r a m m e w i t h c o n f e r e n c e c h a u - m a n BG's M a r k C a r n e . A s t h e U S is d i s c o v e r i n g , ' e n e r g y i n d e p e n d e n c e ' a n d ' e n e r g y s e c u r i t y ' are n o t peas i n a p o d a n d m a y even b e i n o p p o s i t i o n . Rick von Flatern e x p l a i n s .

OE c o n t a c t s (8), Q u i c k stats g u i d e (66),

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Quality control tneasurements being carried out on a FlexRite flexible junction by one of Halliburton's technicians in Nonvay. This junction is also used for re-entry applications as a ReFlexRite multilateral system. To-date 62 of these TAML level 5 junctions, constructed from subsea vessels ivith up to four junctions in a single ivellbore, have been installed accessing up to 15,000m of reservoir exposure per slot

Csee page 36j. Photograph courtesy of Halliburton.

Volume 32 Number 3

marine controlled source electromagnetic (CSEM) survey front, ivith two companies -Nonvay's emgs (whose new-generation receiver is pictured here) and the UK's OHM-going head to head globally and a third, Schlumberger's AGO, expected to shoiv its hand soon. O E this month reviews the rival offerings (see page 11).

< O f f s h o r e E n g m e e r bids

farewell to one of its editorial

^ « stalwarts this month.

O us Editor H\ckvonf\a\em is ^ ^ ^ joining Schlumberger to

: J co-edit its prestigious O i l f i e l d Review. Rick played a pivotal role in O E ' s

transformation from North Sea journal of record to first-tier global offshore

publication, mixing authoritative technical reporting with incisive and irreverent monthly commentaries on the cut and thrust of the E&P business We thank him for his unstinting efforts these past 10 years and ivish him well in his future endeavours Details of Rick's successor will be

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EDITERRANEAN MOVES

°ut more power downhole.

'ive vorteX

rhe PowerDrive vorteX* high-performance

otary steerable system (RSS) has a fully

ntegrated high-torque power section that

converts mud hydraulic power to additional

mechanical power at the bit for fast drilling

and reduced nonproductive time. An

inclina-:ion hold function aliows drilling a tangent

3r

horizontal section without intervention

rom the directional driller

\ Gulf of Mexico operator using a PowerDrive

/orteX RSS drilled a well 21 days faster than

he best time previously achieved. Average

ate of penetration was 32.3 ft/h—more

han 4 times faster than in the comparable

)ffset well.

vww.slb.com/powerdrivevortex

Schlumbergep

jrkof Schlumbeiger ® 20i]7 Schlumberger. 07-DR-101

44/45

GREENING GORGON

47-57

WINNING STRETCH

m

- - '1

77/78

OTC OR BUST

86 .AND ANOTHER THING

REGULAR FEATURES

T h e r o l e t h e M e d i t e r r a n e a n w i U l i k e l y p l a y i n p r o m o t i n g E u r o p e ' s s e c u r i t y o f e n e r g y s u p p l i e s i n t o t h e 2020s i s d i s c u s s e d b y I n f i e l d ' s D r Roger Knight a n d Howard Wright i n t h e i r o p e n e r t o 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 . A l s o , Darius Snieckus l o o k s a t h o w o p e r a t o r s h i p o f t w o v i r g i n d e e p w a t e r b l o c k s o f f E g y p t w i l l p r o v i d e N o r w a y ' s S t a t o i l w i t h a n e a r l y test o f t h e i n t e r n a t i o n a l m i g h t i t hopes t o b u i l d t h r o u g h i t s m e r g e r w i t h c o m p a t r i o t H y d r o . R e c e n t l y t h e N o r w e g i a n P e t r o l e u m D i r e c t o r a t e a w a r d e d B a k e r H u g h e s a n d H a U i b u r t o n i t s a n n u a l I O R P r i z e f o r ' p r o g r e s s i v e d e v e l o p m e n t a n d a p p l i c a t i o n o f a d v a n c e d d r i U i n g a n d w e l l s o l u t i o n s ' . Rick von Flatern l o o k s at t h e s p e c i f i c t e c h n o l o g i e s r e c o g n i z e d a n d h o w s e r v i c e c o m p a n y c o U a b o r a t i o n p r o v e d a c l i n c h e r i n a c h i e v i n g t o u g h T r o l l f i e l d goals. L i k e a n y i n d u s t r y t r a d e a s s o c i a t i o n , f a s t - g r o w i n g I M C A h a s h a d t o c h a n g e w i t h t h e t i m e s t o m a i n t a i n r e l e v a n c e a n d i n f l u e n c e . Darius Snieckus t a l k s t o i t s c h i e f e x e c u t i v e H u g h W i U i a m s a b o u t o p e r a t o r / c o n t r a c t o r r e l a t i o n s , self-r e g u l a t i o n , s k i U s s h o self-r t a g e s a n d t o d a y ' s o t h e r p r e s s i n g issues. I n a d e c i s i o n h a i l e d b y o p e r a t o r C h e v r o n as 'a s i g n U i c a n t m i l e s t o n e ' , W e s t e r n A u s t r a l i a ' s e n v i r o n m e n t m i n i s t e r r e c e n t l y c l e a r e d t h e w a y f o r e n v i r o n m e n t a l a p p r o v a l t o be g r a n t e d t o t h e G o r g o n p r o j e c t , s u b j e c t t o c o n d h i o n s . David Morgan r e p o r t s . L e a d i n g l i g h t s f r o m across t h e o f f s h o r e i n d u s t r y g a t h e r e d i n H o u s t o n i n J a n u a r y f o r t h e t h i r 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 c e r e m o n y f i t t i n g l y h e l d i n t h e H o u s t o n M u s e u m o f N a t u r a l Science. Rick von Flatern m i n g l e d w i t h t h e s t a r s t o b r i n g OE t h i s s p e c i a l r e p o r t o n t h e p r e s t i g i o u s event, d e t a U i n g w h o w o n w h a t a n d w h o c a m e close o n t h e n i g h t . T h e c l a m o r f o r e x h i b i t i o n space a t t h e o f f s h o r e i n d u s t r y ' s p r e m i e r a n n u a l s h o w c a s e w i l l e n s u r e v i s i t o r s a t t h e u p c o m i n g O f f s h o r e T e c h n o l o g y C o n f e r e n c e i n H o u s t o n have e v e n m o r e t o see a n d do t h i s y e a r Steven IWcGInn l o o k s f o r w a r d t o a n e v e n t t h a t i s l i t e r a l l y b u r s t i n g a t t h e seams.

V e n e z u e l a n p r e s i d e n t H u g o Chavez i s a n e n e m y n o t o n l y o f t h e U S , b u t also, a r g u e s

Rick von Flatern, o f h i s o w n p e o p l e .

OE c o n t a c t s (6), Q u i c k s t a t s g u i d e (58),

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Underwater vieiu of Grouped SLOR, a. neiv approach to configuring deepiuater free standing risers developed jointly by

2H Offshore and Subsea 7, promising life-of-field benefits for offshore projects requiring multiple risers (see page 32).

Non-Opec f l o w shores u p g l o b a l o u t p u t ; M e x i c o o n t h e move; N o r w e g i a n subsea boosts; P e r e g r i n e spreads i t s w i n g s ; N u c u l a h i t s tai-get; B o h a i B a y pay; B o u r b o n buUds, Andrew IVlcBarnet extends h i s b r i e f to m v e s t i g a t e t h e c o n f l i c t e d w o r l d o f oU a n d gas, a n d m a j o r t r e n d s d r i v i n g i t s futm-e. ' B o l d ' best describes a N o r w e g i a n di'Uler's a u d a c i o u s $4.5 b i l l i o n s t r a t e g y to become N o 2 i n t h e g l o b a l deepwater d r i l l i n g m a r k e t , as Darius Snieckus r e p o r t s . T w o l e a d i n g c o m p a n i e s i n t h e subsea a r e n a have j o i n e d forces to o f f e r a n e w a p p r o a c h i n deepwater a n d r i s e r t e c h n o l o g y t h a t p r o m i s e s advantages t h r o u g h o u t t h e l i f e cycle o f a n o f f s h o r e development. Terry Knott gets a n exclusive p e e k at G r o u p e d SLOR.

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73-78

NEW-AGE ALWYN

Send experts to rigs.

Or, rigs to experts.

88-134

DEEPWATER RELOADED

Operation Support

Centers

Operation Support Centers connect rigs

directly to drilling experts. With 24/7

access to a global network of expertise,

your decision makers have the answers

they need to optimize drilling performance

at lower cost.

Run drilling operations from your office

by day; let us cover through the night.

Perhaps you only need a portable unit for

single-well jobs. Wherever and whatever

your OSC needs are, the result is a flexible

and scalable connection for your drilling

experts to real-time drilling data, finely

tuned processes, and high-performance

software.

A Gulf of Mexico operator was able to

eliminate a casing string and save

USD 1.7 million through real-time pore

pressure collaboration in an Operation

Support Center Watch www.slb.com/

realtimedrilling for more Operation

Support Center success stories.

vvww.slb.com/realtimedrilling

Schlumberger

136-138

RESERVOIR CATS

141-146

PILING DEEPER

149-169

SCANDINAVIA OFFSHORE

r~r.

J V ' .

w

A . /

171 -178

NETHERLANDS OFFSHORE

202 EBB AND FLOW

REGULAR FEATURES

D i s t a i n i n g e a r l y expectations o f a ten-year l i f e s p a n , t h e A l w y n a r e a i n t h e U K N o r t h Sea has a h e a d y been p r o d u c i n g f o r 20 y e a r s a n d l o o k s set f o r e a s ü y a n o t h e r 20. Darius Snieckus hears h o w o p e r a t o r Total's A b e r d e e n t e a m f a s h i o n e d t h e i r w i n n i n g m a x i m i s a t i o n s t r a t e g y

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Pictured undergoing sea trials in April and already generating a buzz around the industry, the neiu 292ft D M T E m e r a l d is set to become the only monohulled lOOt multi-purpose heave compensated toiuer vessel in the Gulf of Mexico (see page 39^.

Volume 32 Number 5

'Here they will have more fertile ground to work with,' the new combine's chief executive Claudi Santiago tells OE in this month's exclusive interview. 'We are not an investment bank. We are in this for the long-haul. We understand that it will take some products five years to generate even $1 of revenue and seven to generate $1 of profit,' fsee page 24j.

O T A i

15-17

f . .

:H

JIM

ANALYSIS

19-22

G&G NOTEBOOK

24-26

FAST COLOURS

28-30

AUSTRALIA OFFSHORE

1 f l l * . - " ^ - 1

-32-36

39 RIG MARKET REVIEW

TOWER OF STRENGTH

T r a i n i n g t i m e f o r n e w gas dash; M o h o -B i l o n d o m u l t i p l i e r ; N i l c a i t c h u q nudges f o r w a r d ; G j o a h u U t o S a m s u n g ; FSO sizes u p Campos f l o a t e r s ; D e l t a f o r c e ; A n g o l a L N G b u y - i n ; m o r e f r o m M a u r e e n ? I n t h i s m o n t h ' s t w o - p a r t e r f r o m R u s s i a a n d t h e Caspian, Derek Brower l o o k s at t h e n e x t r o u n d o f a u c t i o n s p l a n n e d t o seU o f f t h e r e m a m s o f Yukos, once Russia's l a r g e s t oU company, a n d Greg Vojack r e v i e w s t h e r e c e n t h i s t o r y a n d l i k e l y h y d r o c a r b o n - d r i v e n prospects of K a z a k h s t a n .

W h i r l i n g u n d e r t h e s u i f a c e o f today's b r o a d l y h a p p y E & P g e o p h y s i c a l s e r v i c e s c o m m u n i t y is a p e r s i s t e n t u n d e r c u r r e n t of c o n c e r n over s t a f f i n g , observes Andrew

IVlcBarnet.

T h e r e c e n t t a k e o v e r o f V e t c o G r a y has naUed G E OU & Gas' c o l o u r s f i r m l y t o the mast: Taster g r o w t h i n a r a p i d l y e x p a n d i n g g l o b a l business' i s the c o n f i d e n t

e x p e c t a t i o n of CEO C l a u d i Santiago. Darius Snieckus r e p o r t s f r o m F l o r e n c e .

F o c u s i n g o n n o n - L N G r e l a t e d developments t a k i n g shape o f f the c o u n t r y ' s w e s t e r n a n d n o r t h e r n c o a s t l u i e s b u t n o t a b l y also o f f its s o u t h e a s t coast. Rick Wilkinson concludes h i s r e v i e w o f t h e A u s t r a l i a n o f f s h o r e scene.

D r U l e r s are at f u U s t r e t c h globaUy as o p e r a t o r s seek n e w reserves t o keep pace w i t h the g l o b a l d e m a n d f o r h y d r o c a r b o n s . ODS-Petrodata's Karen Roman r e p o r t s . Deep Mai-ine Technology's i n n o v a t i v e monohuUed M S V goes to w o r k t h i s m o n t h instaUing subsea e q u i p m e n t f o r the G u l f of Mexico's deepest project. David IVIorgan reports.

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plus reliability

in hot wells

PowerDrive X5

Our new PowerDrive X5* rotary steerable

system is engineered from the ground up to

give you unprecedented drilling performance

and reliability. You can drill longer runs, optimize

wellbore placement, and reduce drilling time.

It has a temperature rating of 302 degF and

a near-azimuthal gamma ray providing

close-to-the-bit, real-time detection of shale/sand

layers, faults, and bed boundaries. In addition,

the new downlink and inclination hold

functions allow fast, accurate control of

trajectory with minimum intervention from

the directional driller

In the Gulf of Mexico, a PowerDrive X5

system saved an operator 4 days of rig time

and USD 460,000, drilling a 2,300-ft

side-track section in less than 33 hr in downhole

temperatures above 300 degF.

www.slb.coni/powerdrivex5

Schlumliepgep

40/41

AMCMORS AWAY

43-45

43-56

RIDING THE OOF WAVE

59/60

BUCKLING DOWN

•

62-64

ENVIRONMENTAL EDGE

8 6

EBB AND FLOW

REGULAR FEATURES

P r o v e n r n service over t h e past f i v e yeai's i n o t h e r o f f s h o r e p r o v i n c e s , t h e d r a g e m b e d m e n t n e a r n o r m a l l o a d a n c h o r -D e n n l a f o r s h o r t - is n o w r e a d y f o r N o r t h Sea a p p l i c a t i o n .

DIGITAL OILFIELD REVIEW

T h e d i g i t a l o i l f i e l d ( D O F ) has r e v o l u t i o n i z e d the m d u s t r y m o r e t h a n anyone c o u l d have i m a g i n e d , f r o m v i s u a l i z a t i o n r o o m s to r e a l - t i m e data generated b y t h e d r i U b i t at p h e n o m e n a l rates a n d f e e d i n g i n t o super-computers. B u t t h e l e v e l o f c o r p o r a t e r e a d i n e s s v a r i e s w i d e l y as H o l l a n d & D a v i s ' Dutch Holland a n d

Mike Campbell r e p o r t .

L i q u i d a n d h y d r a t e m a n a g e m e n t o f weU fluids t r a v e U i n g at h i g h v e l o c i t y i n a m u l t i p h a s e ' m i s t ' o u t o f deepwater N o r w a y 130km f r o m seabed to shore. M u s t be O r m e n Lange. Darius Snieckus h e a r s f r o m SPT G r o u p executive v i c e p r e s i d e n t Gustav K j o r r e f j o r d about r e a l - t i m e flow assurance a n d t h e ' t r a n s p a r e n t p i p e l i n e ' .

One o f t h e b i g D O F chaUenges is t h e d i s p o s i t i o n o f t h e m o u n t a i n s o f data

g e n e r a t e d . I B M ' s Jonathan Krome, Greg Mitchell

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COVER

The 19May sailaway of BHP Billiton's Neptune TLP hull from Signal's Gulf Coast yard, en route to its deepiuater Gulf of Mexico location on Green Canyon 613 (see page 46).

Volume 32 Number 6

w w w . o f f s h o r e - e n g i n e e r . c o m H i g h cost levels ' m a y p l a t e a u i n 2008'; E n i b u y s D o m i n i o n US G u l f assets; A n g o l a n b l o c k b o u n t y ; C o n s u m e r f e a r s o f 'gas Opec' u n f o u n d e d ; V a n O o r d gets r e a d y to r o c k . . . as R O V 5 comes alive; Fai'oe f a r m out; F l o w l m e s f o r T h u n d e r H a w k ; B u r t o n b o w s out; P o r c u p i n e p r o b e d ; U K O O A r e b r a n d s as O i l & Gas UIC; B i l l i o n d o l l a r c r a n e l o o k s u p ; G j o a p l a n s to p l u g i n .

P e r m a n e n t s e i s m i c m o n i t o r i n g o f o f f s h o r e oUfields is t a k i n g a l o n g t i m e t o take off. Andrew IVlcBarnet p o n d e r s w h e t h e r p l a n s f o r f i b r e optic-based systems w U l accelerate a d o p t i o n o f t h e t e c h n o l o g y b y operators. R e a f f h m m g i t s f a i t h i n t h e v e n t u r e c a p i t a l m o d e l , H y d r o T e c h n o l o g y V e n t u r e s l a s t y e a r set u p i t s second f u n d to i n v e s t m ' f u t u r e - o r i e n t e d ' c o m p a n i e s h a t c h h i g technologies t h a t m i g h t a i d t h e N o r w e g i a n o p e r a t o r i n i t s a c t i v i t i e s i n t h e oU a n d n e w e n e r g y sectors. Darius Sniecl<us r e p o r t s .

GULF OF MEXICO REVIEW

T h e I n d e p e n d e n c e H u b p r o j e c t ' s place i n the o f f s h o r e r e c o r d b o o k s is ah-eady secure, as a c l m o w l e d g e d by i t s o w n d e d i c a t e d t e c h n i c a l session at t h i s year's O T C i n H o u s t o n . Steve Sasanow opens OE's latest G u l f o f M e x i c o r e v i e w w i t h a l o o k at the n o v e l t i e s a n d n i c e t i e s o f t h i s $2 b i l l i o n d e v e l o p m e n t . I n M a y OTC r e c o g n i z e d the c o n t r i b u t i o n s o f A n a d a r k o P e t r o l e i m i , E n t e r p r i s e P r o d u c t P a r t n e r s a n d H e l i x E n e r g y S o l u t i o n s f o r t h e h j o i n t d e v e l o p m e n t o f the M a r c o Polo h u b p r o j e c t i n G r e e n C a n y o n b l o c k 608 i n t h e G u l f o f M e x i c o . Jerry Greenberg u p d a t e s OE's f i l e s o n t h i s a w a r d - w i n n m g T L P - b a s e d d e v e l o p m e n t .

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MEXICO FLOATS FORWARD

NEPTUNE REIGNS

Put more power downhole.

PowepDpive vopteX

The PowerDrive vorteX* high-performance

rotary steerable system (RSS) has a fully

integrated high-torque power section that

converts mud hydraulic power to additional

mechanical power at the bit for fast drilling

and reduced nonproductive time. An

inclina-tion hold funcinclina-tion allows drilling a tangent

or horizontal section without intervention

from the directional driller.

A Gulf of Mexico operator using a PowerDrive

vorteX RSS drilled a well 21 days faster than

the best time previously achieved. Average

rate of penetration was 32.3 ft/h—more

than 4 times faster than in the comparable

offset well.

www.slb.com/powerdrivevortex

Schlumbepger

•Mark of Schlumberger ® 2007 Schlumberger. 07-DR-lOl

MALAYSIAN MILESTONE

73/74

DRILLING & DOWNHOLE

77-80

RECOVERY POSITION

REGULAR FEATURES

s t a r t u p r e c e n t l y o f t h e Yuum K'ak' Naab FPSO o n t h e Ku-Maloob-Zaap f i e l d i n t h e B a y o f Campeche r e p r e s e n t s t h e fLrst-ever p r o d u c t i o n v i a a shipshape f l o a t e r i n t h e G u l f o f M e x i c o . U n i t o w n e r - o p e r a t o r B W O f f s h o r e teUs Darius Snieckus about t h e b r e a k t h r o u g h vessel n o w g e a r i n g u p f o r 15 years' service as a n area h u b a n d e x p o r t t e r m i n a l f o r Pemex. L a s t m o n t h , N e p t u n e , t h e i n d u s t r y ' s latest T L P w a s t o w e d o u t f o r i n s t a l l a t i o n i n t h e US G u l f o f M e x i c o . OE p r o v i d e s a n u p d a t e on t h e progress to date a n d t h e e f f o r t i t h a s t a l ï e n t o get t h i s deepwater d e v e l o p m e n t i n t h e w a t e r a n d o n t r a c k t o f i r s t o i l . W i t h h u r r i c a n e s K a t r i n a a n d R i t a s t i h c a s t i n g a l o n g s h a d o w o v e r t h e G u l f o f

M e x i c o , Alex Bohelmer a n d Dave Rees o f

DeepSea E n g i n e e r i n g & M a n a g e m e n t e x p l a i n w h y t h i s a n d o t h e r s t o r m - p r o n e r e g i o n s are r i p e f o r d i s c o n n e c t a b l e t u r r e t t e c h n o l o g y D e v o n E n e r g y ' s $380 m U l i o n P o l v o f i e l d d e v e l o p m e n t p r o j e c t i n t h e s h a l l o w w a t e r s o f f B r a z i l w i l l have t a k e n j u s t a b o u t t w o y e a r s f r o m the operator's d e c i s i o n t o develop the f i e l d to f i r s t oU, a n t i c i p a t e d i n J u l y Jerry Greenberg r e p o r t s . P l u s a r o u n d - u p of o t h e r k e y events o n t h e B r a z i l i a n scene. F a b r i c a t i o n o f t h e FPSO K i k e h b y a M a l a y s i a n s h i p y a r d is a m i l e s t o n e i n t h e c o u n t r y ' s a s p i r a t i o n t o become f i r s t a r e g i o n a l a n d t h e n a n i n t e r n a t i o n a l c e n t r e f o r t h e e n g i n e e r i n g a n d c o n s t r u c t i o n o f deepwater f a c i l i t i e s . John Mueller r e p o r t s .

OE r e v i e w s some o f t h e recent developments a n d t a l l y i n g p o i n t s i n t h e f i e l d o f d i ' U l i n g a n d d o w n h o l e t e c h n o l o g y E n h a n c e d o i l r e c o v e r y schemes b y t h e h v e r y n a t u r e are expensive a n d h i g h r i s k -n o t least i -n t h e o f f s h o r e e -n v h o -n m e -n t . B u t w i t h t h e U K N o r t h Sea n o w i n i t s m a t u r i t y , t h e p o t e n t i a l r e w a r d s , p a r t i c u l a r l y w i t h o i l a t $60-plus a b a r r e l , c a n n o t be i g n o r e d . Senergy's Steve Furnival r u n s a r u l e over t h e prospects f o r E O R i n t h e p r o v i n c e .

OE r e c o r d s some o f t h e s i g h t s a n d s o u n d s

o f OTC.07.

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COVER

One of three Aker Kvaerner •Multi-Booster subsea

boosting staiions is loaded, out for delivery to BP's King field in the US Gulf of

Mexico (see page 30).

Volume 32 Number?

11-16

DIGEST

A MAKING HISTORY: Last month's annual meeting in London of the European Association of Geoscientists & Engineers

ivas the biggest in the association's 56-year history, ivith a record turnout of over 6000 participants. But EAGE was also reaping

the reward of promoting itself as a

multidisciplinary organisation. EAGE's interpretation of its constituency now extends well beyond Europe: it has satellite offices in Russia and the Middle East, and in June welcomed China into its portfolio of associated societies.

G&G NOTEBOOK

1 ' •': - 1

J

30-32

CROWNING GLORY

34-37

MOVING DAY

S h e l l - E x x o n M o b i l UIC assets m t h e shop w i n d o w ; N a KUca t o a d d Isabela f l o w ; G h a n a goodie; Cal D i v e e x p a n d s its h o r i z o n s ; T h e o f U l s i n V a n G o g h p i c t u r e ; L i b y a n outlay; E m i n t r u d e c h o i c e cut f o r S l e i p n e r area; F u l l - w a v e s e i s m i c c a t c h i n g on; Minl?e reeled i n ; G r e e n l a n d E & P gets g o i n g ; I n d e p e n d e n t s p i r i t o f f N o r w a y ; R u s s i a n love m a t c h ; B i r d i n t h e h a n d . T h e EU's r e l a t i o n s h i p w i t h R u s s i a o n e n e r g y t r a n s p o r t i n f r a s t r u c t u r e l o o k s to be e v o l v i n g i n t o a n i n c r e a s i n g l y one-sided a f f a i r , w r i t e s Derek Brower. P l u s : One o f the l o n g - t e r m goals o f subsea p r o d u c t i o n t e c h n o l o g i s t s has b e e n to r e d u c e costs, b u t w i t h deepwater r i g r a t e s r u n n i n g r i o t , Steve Sasanow r e p o r t s h o w t h e c o s t - c u t t i n g f o c u s is s h i f t i n g t o w a r d t h e d r a i n a g e p o i n t s . Andrew McBarnet notes t h a t r e c o r d

attendance a n d some e x c i t i n g t e c h n o l o g y developments at the E A G E a n n u a l m e e t i n g i n L o n d o n suggest t h a t the p a r t y is b y n o m e a n s over f o r the s e i s m i c c o m m u n i t y s e r v i n g the oU a n d gas E & P business. F r u i t i o n f o r a c o n t r a c t f h s t s i g n e d b y A k e r K v a e r n e r a n d BP i n O c t o b e r 2005 to s u p p l y g a m e - c h a n g i n g subsea b o o s t m g s t a t i o n s f o r t h e operator's e n h a n c e d o i l r e c o v e r y p r o j e c t o n the US G u l f K i n g f i e l d . Darius Snieckus r e p o r t s . I n a m a r k e d d e p a r t u r e f r o m i t s r e c e n t s e l f - i n s t a l l i n g j a c k u p i n s t a U a t i o n s , s e r i a l o f f s h o r e i n n o v a t o r G l o b a l Process Systems is n o w also m a r k e t i n g a l i g h t w e i g h t f i x e d p l a t f o r m s u b s t r u c t u r e concept s u i t a b l e f o r f a s t - t r a c k d e p l o y m e n t a n d r e u s e o n Southeast A s i a n h y d r o c a r b o n prospects i n the 40-80m w a t e r d e p t h r a n g e . David Morgan r e p o r t s .

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'ïf^^i

-•

YARD BY YARD

Send experts to rigs.

Or, rigs to experts

Operation Support Centers connect rigs

directly to drilling experts. With 24/7

access to a global network of expertise,

your decision makers have the answers

they need to optimize drilling performance

at lower cost.

Run drilling operations from your office

by day; let us cover through the night.

Perhaps you only need a portable unit for

single-well jobs. Wherever and whatever

your OSC needs are, the result is a flexible

and scalable connection for your drilling

experts to real-time drilling data, finely

tuned processes, and high-performance

software.

A Gulf of Mexico operator was able to

eliminate a casing string and save

USD 1.7 million through real-time pore

pressure collaboration in an Operation

Support Center. Watch www.slb.com/

realtimedrilling for more Operation

Support Center success stories.

wvvw.slb.coin/reattimedrilling

Sdilumbepgep

•Mark of Schlumberger ® 2007 Schlumberger 07-DB-126

56/57

CERTAIN FACTS

59-61

LIVE ACTION

REGULAR FEATURES

T h e p r o f u s i o n o f d r i U i n g r i g a n d floatmg p r o d u c t i o n u n i t f a b r i c a t i o n a n d u p g r a d e

v/ork flowing i n t o Southeast A s i a n

s l i i p y a r d s o f a l l sizes c o n t i n u e s u n a b a t e d , w i t h a r e c e n t surge i n d e m a n d f o r a r a n g e of s u p p o r t vessels. John Mueller s u m m a r i s e s t h e latest developments. D i g i t a l o i l f i e l d s have come a l o n g w a y i n s h o r t t i m e - a n d stiU n o t f a s t e n o u g h f o r m a n y i t w o i U d seem. B u t , as S t a t o ü ' s Sjur Bjarte Talstad p o i n t s o u t , I n t e U i g e n t t e c h n o l o g y is b r i n g i n g t h e m o u n t a i n to M o h a m m e d a n d - f o r t h e N o r w e g i a n operator - l a s t year t r a n s l a t e d i n t o increased p r o d u c t i o n t h a t b r o u g h t $1.3 b U l i o n i n t o c o m p a n y c o f f e r s .

T h e s u n stUl shines o n t h e floating p r o d u c t i o n sector b u t t h e r e are one o r t w o w o r r y i n g clouds l o o m i n g . D r Roger Knight a n d George Venturas o f London-based data analysts I n f i e l d Systems e x a m i n e t h e latest ti'ends i n t h i s a n d t h e a d j a c e n t subsea sector

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COVER

With a 2 million barrel capacity FPSO, a subsea spread 'the size of a city' and a first-of-its-kind 1650m long integrated production bundle tapping four complex

reservoirs. Total project director Daniel Picard CEO describes Angola's Dalia development as 'an unprecedented technical challenge but also a great human adventure'

(see page 32). Photo: Thierry Gonzalez.

bigger sister to North Sea stalwart SeaweU is being built by Well Ops to catch the anticipated global wave in subsea light ivell intervention work. It is seen as a game-changing vessel, acting not just as a logging unit but also providing diving services, drilling out plugs, helping operators with tailend production management and much more besides (see

page 39;.

V TAKE A BOW: In the marine seismic ivorld it's usually the back end of the vessel which is the focus of interest. Until now that is. In the last month or two,

Norwegian shipbuilder Ulstein Verft has received orders for six seismic vessels to be built to its novel Ulstein SX120 design. The most distinctive feature of the vessel is at the front in the shape of the Ulstein X-Bow, also specified recently for a new offshore construction/IMR vessel ( p i c t u r e d ) (see

' D i g e s t ' a n d ' G & G N o t e b o o l i ' ) .

11-16

DIGEST

21-24

G&G NOTEBOOK

29/30

32-37

REGIONAL MARKER

120 DAYS OF DALIA

39-45

LEADING THE PACK

:

1

• • -1

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Kim

PowerDrive X5

PLUS REUABIUTY IN HOT WEUS.

Our new PowerDrive X5* rotary steerable system is engineered from the ground up to give you unprecedented drilling performance and reliability. You can drill longer runs, optimize wellbore placement, and reduce drilling time.

It has a temperature rating of 302 degF and a near-azimuthal gamma ray providing close-to-the-bit, real-time detection of shale/sand layers, faults, and bed boundaries. In addition, the new downlink and inclination hold functions allow fast accurate control of trajectory with minimum inteivention from the directional driller

In the Gulf of Mexico, a PowerDrive X5 system saved an operator 4 days of rig time and USD 460,000, drilling a 2,300-ft sidetrack section in less than 33 hr in downhole temperatures above 300 degF.

www.slb.com/powerdrivex5

Schlumbergep

51-54

S U B S E A SETTLElViEI\iT

EXPANDING MARKET

57/58

LAND LESSONS

60/61

CHEMICAL CURE

63-67

OFFSHORE EUROPE PREVIEW

(17)

COVER

(18)

61-64

TAÏ\!S( TALK

67-86

DECONSTRUCTING DECOM

PowerDrive X5

PLUS REUABIUTY IN HOT WEU^.

Our new PowerDrive X5* rotary steerable system is engineered from the ground up to give you unprecedented drilling performance and reliability. You can drill longer runs, optimize wellbore placement and reduce drilling time.

It has a temperature rating of 302 degF and a near-azimuthal gamma ray providing close-to-the-bit, real-time detection of shale/sand layers, faults, and bed boundanes. In addition, the new downlink and inclination hold functions allow fast, accurate control of trajectory with minimum inten/ention from the directional driller

In the Gulf of Mexico, a PowerDrive X5 system saved an operator 4 days of rig time and USD 460,000, ddlling a 2,300-ft sidetrack section in less than 33 hr in downhole temperatures above 300 degP

www.slb.coin/powerdrivex5

Schlumbergep

88-93

URSA MAJOR

95/96

PIPE-IN-PIPE DREAM

99-102

EMISSION STATEMENT

/ A .

105-120

NWECS ACTIVITY GUIDE

123-126

GAME PLAY

129-131

142 OFFSHORE EUROPE

EBB AND FLOW

REGULAR FEATURES

A s L N G t e c h n o l o g y c o n t i n u e s t o i m p r o v e , Jennifer Pallanich l o o k s a t n e w s t o r a g e a n d v a p o r i z a t i o n systems. H u r r i c a n e s K a t r i n a a n d R i t a k n o c k e d o v e r m a n y p l a t f o r m s i n t h e G u l f o f M e x i c o . K i c k i n g o f f t h i s m o n t h ' s d e c o m m i s s i o n i n g s p e c i a l , Jennifer Pallanich t a l k s t o c o m p a n i e s a b o u t t h e m e t h o d s t h e y ' r e u s i n g t o d e c o m m i s s i o n d a m a g e d w e l l s a n d p l a t f o r m s . We also h a v e r e p o r t s

b y Steven IVlcGinn a n d John Bradbury o n t h e

e a r l y G o M successes o f t h e i n n o v a t i v e B o t t o m Feeder l i f t i n g s y s t e m a n d r e c e n t d e c o m m i s s i o n i n g - r e l a t e d d e v e l o p m e n t s i n t h e N o r t h Sea. T a r g e t i n g t h e G u l f o f M e x i c o ' s U r s a f i e l d , academe a n d i n d u s t r y c a m e t o g e t h e r i n l O D P E x p e d i t i o n 308 t o t r y t o i m p r o v e t h e i r u n d e r s t a n d i n g o f t h e c o n d i t i o n s t h a t cause s h a l l o w w a t e r f l o w a n d t h e best p r a c t i c e s f o r a p p r o a c h i n g n e a r - s u r f a c e , n a r r o w - m a r g i n d r i l l i n g . Greg Myers d i s t i l l s t h e essence o f t h e t e a m ' s f i n d i n g s . D e s i g n i n g a n d f a b r i c a t i n g a p i p e - i n - p i p e s y s t e m f o r SheU's S t a r l i n g t i e b a c k h i t h e U K N o r t h Sea p r e s e n t e d m o r e t h a n a t e c h n i c a l c h a l l e n g e , w r i t e s C o r n s T u b e s ' Richard Freeman. W i t h n e w e m i s s i o n s m o n i t o r i n g r e g u l a t i o n s c o m i n g i n t o f o r c e soon, B V ' s

Rob Swindell a n d Bill Bell e x a m i n e w h a t

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Sakhalin 2 is one of several large-scale offshore projects tn Russia that has proved problematic for its Western operator folloiving the host governmetit's decision to 'renegotiate' the terms of the original development agreement ("see

page 19;. Photograph courtesy of Sakhalin Energy and main contractor Amec.

Volume 32 Number 10

markets. In the news this month are: the EB-designed 'i-Trencher' (above;, an 85t tracked mechanical cutting trencher which ivill be a key component of the services package Canyon Offshore will provide for Subsea 7 under an exclusive four-year agreement ('see page 58;,- andAGR Subsea's Clay cutter X (below), the technology-stretching seabed excavation system to be deployed on Norsk Hydro's Ormen Lange field o f f Norway next year (see page 66).

23-26

_{G&G NOTEBOOK}

ECONOMIC TRUTH

mmm

O p e r a t o r s cast n e t w i d e r o f f US; G l o b a l o u t p u t d r o p t o p u s h c r u d e to $100/bbl; B l i n d F a i t h r e w a r d e d ; R e p o r t m o v e s D e e p P a n u k e f o r w a r d ; S t a t o i l H y d r o gets h e a v y o f f U K ; A r c t i c i c e b r e a k e r ; T u p i t r u m p s ; O r m e n L a n g e r e a c h e s t h e b e a c h ; U S G u l f u l t r a deeps o n a h i g h ; T o r m o r e t r i u m p h . Recent c o n t r a c t d i s p u t e s b e t w e e n W e s t e r n o p e r a t o r s a n d h o s t g o v e r n m e n t s o n t h e S a k h a l i n 2, K o v y k t a , S h t o k m a n a n d K a s h a g a n d e v e l o p m e n t s suggest a d r a m a t i c s h i f t i n t h e b a l a n c e o f p o w e r i n t h e g l o b a l e n e r g y a r e n a . Derek Brower l o o k s at t h e l a t e s t e v i d e n c e o f ' r e s o u r c e n a t i o n a l i s m ' . T h e r e v a m p o f I n p u t / O u t p u t stole Andrew McBarnet's a t t e n t i o n at l a s t m o n t h ' s m e e t m g o f t h e S o c i e t y o f E x p l o r a t i o n G e o p h y s i c i s t s i n S a n A n t o n i o , Texas. T h e w a t e r s West o f S h e t l a n d a r e h o m e t o a gas r e s o u r c e p o t e n t i a l l y as l a r g e as 8tcf. G e t t i n g t h e gas f r o m f i n d s m a d e i n t h i s f r o n t i e r U K r e g i o n t o m a r k e t , however, r e q u i r e s i n f r a s t r u c t u r e , t h e e c o n o m i c s o f w h i c h are t o u c h - a n d - g o . Darius Snieckus r e p o r t s o n a s t u d y b y t h e W e s t o f S h e t l a n d t a s k f o r c e i n t o a h u b - c e n t r e d s y s t e m f o r t h e a r e a . A c t i v i t y i n t h e G u l f o f M e x i c o w h l l i k e l y t h r i v e f o r y e a r s to come, as c o m p a n i e s give n o i n d i c a t i o n s t h e y w U l s l o w t h e i r p u r s u i t o f deep p o c k e t s o f n a t u r a l gas. Steve IWcGinn's r e p o r t o n t h e deep gas chase k i c k s o f f a d r U l i n g t e c h n o l o g y a n d e q u i p m e n t s p e c i a l . T h e case f o r e m p l o y i n g d r y t r e e s e m i s u b m e r s i b l e s i n s t e a d o f s p a r s o r T L P s i s a l s o a r g u e d b y

Stein R a s m u s s e n , Roger Lu a n d Roy Rodningen

o f A k e r K v a e r n e r

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

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Increase efficiency,

reliability, and safety.

41/4?

MEXICAN WA¥E

INSPECTION GADGET

The New Age of Drilling

Scope

Scope* new-generation wiiile-drilling 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 overthe

industr/ 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.

vvww.

.slb.c(Hq/scope

Schlumberger

REGULAR FEATURES

SUPPLEMEfffS

W h i l e o p e r a t o r s are s l o w t o t a k e u p n e w t e c h n o l o g y i n n e w f i e l d s , t h e y e m b r a c e i t f o r h s p r o b l e m - s o l v i n g c a p a b i l h i e s i n b r o w n f i e l d s . Jennifer Pallanich d e s c r i b e s a n u l t r a l i g h t c e m e n t i n g s o l u t i o n p r o d u c i n g r e s u h s at t h e v e t e r a n C a n t a r e l l f i e l d . D e s i g n i n g p i p e l i n e s f o r d e e p w a t e r m e a n s h e a v i e r w a l l t h i c k n e s s e s t o h a n d l e u l t r a -h i g -h p r e s s u r e s , as w e l l as telescopies, w y e s p l i t s , v e r t i c a l w y e s a n d v a r y i n g W T t o cope w i t h t h e f a r - r a n g i n g t r a n s p o r t d e m a n d s o f s u c h c a p i t a l i n t e n s i v e o i l a n d gas i n f r a s t r u c t u r e . Darius Snieckus r e p o r t s o n a n e w h i g h - r e s o l u t i o n i n - l i n e M F L i n s p e c t i o n t o o l f o r d e e p w a t e r p i p e l i n e s 'not b u i l t a r o u n d a p i g ' . M a j o r s a n d i n d e p e n d e n t s h a v e seen m u c h o f t h e i r g r o w t h i n t h e l a s t f i v e y e a r s c o m e f r o m d e e p w a t e r f i e l d s . I n f i e l d S y s t e m s '

D r Roger Knight a n d George Venturas r e v i e w

d e e p w a t e r t r e n d s a n d p r o s p e c t s . I n h i s q u e s t t o get t o t h e t r u t h b e h i n d C h i n a ' s m u s h r o o m i n g e n e r g y d e m a n d P r o f e s s o r Mlchael J Economides f i n d s h i m s e l f p o n d e r i n g h o w t o t e l l t h a t ' t h e r e a r e f a k e s a n d t h e n t h e r e are f a k e s ' i n a l a n d w h o s e e c o n o m i c m i r a c l e h a s i n p a r t b e e n b u i l t o n k n o c k - o f f N i k e s a n d n o n - t o x i c r a t p o i s o n . OE c o n t a c t s (8), Q u i c k stats g u i d e (54), P r o d u c t s i n a c t i o n (55-60), F h - m s & Faces (63/64), C o n t r a c t s (66), D i a r y (68), D i s p l a y a d v e r t i s e r s i n d e x (69), B o o k s h o p (70-72), C l a s s i f i e d s (73).

LOUISIANA LOOKOUT

A h e a d o f t h e 2007 L o u i s i a n a G u l f Coast O U E x p o s h i o n ( L A G C O E ) , OE w r i t e r s t o u r e d t h e r e g i o n t o c h e c k o u t t h e c u r r e n t m o o d a n d a c t i v i t i e s o f o p e r a t o r s , c o n t r a c t o r s a n d s u p p l i e r s . We o p e n t h i s m o n t h ' s r e g i o n a l r e v i e w w i t h a r e p o r t b y Jennifer Pallanich o n t h e c h a n g i n g f o r t u n e s o f J R a y M c D e r m o t t ' s M o r g a n C i t y y a r d a n d p r e s i d e n t a n d C E O Robert Deason's r e f l e c t i o n s o n c u r r e n t i n d u s t r y i n i t i a t i v e s , o p p o r t u n h i e s a n d t r e n d s .

OFFSHORE EUROPE 2007 REVIEW

71 S e t t i n g a n e w r e c o r d f o r a t t e n d a n c e w i t h m o r e t h a n 35,000 v i s h o r s a n d delegates t h r o u g h t h e d o o r s , e v e n O f f s h o r e E u r o p e 2007 c o n f e r e n c e c h a i r m a n M a r k C a r n e , a 30-year v e t e r a n o f t h e o U a n d gas i n d u s t r y d e c l a r e d h e w a s ' s u r p r i s e d b y t h e s h e e r scale' o f t h i s y e a r ' s i t e r a t i o n o f t h e b i e n n i a l A b e r d e e n e v e n t . OE r o u n d s u p t h e t a l k i n g p o i n t s a n d t e c h n o l o g y h i g h l i g h t s . •Mark of Schlur^beiger

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COVER

BP'S 'all-electric' G r e a t e r P l u t o n i o FPSO produced'first oil from Angola's block 18 in

October and is set to push that country's daily crude production beyond the 2 million barrel mark. The technology-stretching $4 billion Greater Plutonio complex also represents the supermajor's maiden deepiuater operatorship o f f Angola Csee page 31j.

OUT ON ITS OWM: An FMC tree and a Trelleborg CRP umbilical buoyancy module -just two samplings from the vast array of offshore technologies and systems put into service to help the deepwater Gulf of Mexico's 'frontier'Independence Hub development stand out from the crowd. The Eastern Gulf hub, with an estimated 2tcf reserves in place and situated in water depths up to 9000ft, will provide 10% of the Gulf's gas output and nearly 2% of the overall US gas supply when producing at its full Ibcf/d capacity (see page 46).

9-14

DIGEST

17/18

ANALYSIS

21-24

G&G NOTEBOOK

27/28 SEVEN UP

31-40 THINKING BIG

T o p doUar f o r US deepwater; P i r a n e m a produces; H o o k H e a d

huiTah;

S o u t h Coast Gas gets g o i n g ; D r a g a d o s b u U d s d r i l l i n g g i a n t ; S t a t g o r d gas f l o w s t o U K ; D e e p w a t e r spend o n t h e r i s e ; B u l l y brealcs t h e ice; B e n h a beckons; G o r g o n gets g r e e n t h u m b s u p ; M a h a k a m gas p l a n e m e r g i n g .

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Put more power downhole.

PowerDrive vopleX

The PowerDrive vorteX* high-performance

rotary steerable system (RSS) has a fully

integrated high-torque power section that

converts mud hydraulic power to additional

mechanical power at the bit for fast drilling

and reduced nonproductive time. An

inclina-tion hold funcinclina-tion allows drilling a tangent

or horizontal section without intervention

from the directional driller

A Gulf of Mexico operator using a PowerDrive

vorteX RSS drilled a well 21 days faster than

the best time previously achieved. Average

rate of penetration was 32.3 ft/h—more

than 4 times faster than in the comparable

offset well.

www.slb.com/powerdrivevortex

Schlumbergep

43/44 CRESCENDO ORCHESTRATED

46-55

INDEPENDENCE DAY

57-59

SEEING DOUBLE

61/62

CONTROL MEASURES

62-65

SAND MANAGEMENT

82 EBB AND FLOW

REGULAR FEATURES

I n s i d e f i v e years, A n g o l a has o r c h e s t r a t e d a n u p s w i n g i n i t s o i l p r o d u c t i o n t h a t s h o u l d see o u t p u t c l m i b i n g past t h e 2 n i U l i o n b o e / d m a r k m 2008 as t h e n e x t large-scale f i e l d s b e i n g developed m i t s deep a n d u l t r a - d e e p w a t e r s are b r o u g h t t o p l a t e a u . T h e q u e s t i o n , as Darius Snieckus r e p o r t s , is h o w l o n g t h i s crescendo o f p r o d u c t i o n c a n be s u s t a i n e d . T h e e a s t e r n G u l f o f M e x i c o w a s a f r o n t i e r area w i t h t h e D e c e m b e r 2001 d i s c o v e r y o f M e r g a n s e r A y e a r later. V o r t e x c l a i m e d headlines. O p e r a t o r s r e p o r t e d t h r e e m o r e f i n d s each i n 2003 a n d 2004 a n d a n o t h e r p a h h i 2005. I n d i v i d u a l l y , w a t e r d e p t h s r a n g i n g f r o m 7850ft to o v e r 9000ft a n d distance f r o m s h o r e m a d e each n o n -c o m m e r -c i a l . B u t t h r o u g h -close c o l l a b o r a t i o n , 10 f i e l d s w e r e b r o u g h t o n s t r e a m a n d some s e r i o u s d e p t h r e c o r d s w e r e set o n t h e w a y Jennifer Pallanicli l o o k s b a c k o v e r t h e t e c h n o l o g i e s t h e Independence H u b t e a m a p p l i e d to overcome t h e chaUenges o f d e p t h . O i l f i e l d s e r v i c e c o m p a n i e s ai-e b r i n g i n g t h e w o w f a c t o r b a c k i n t o v i z r o o m s , r e a l t i m e centers, a n d executive b r i e f i n g f a c u l t i e s . S c h l u m b e r g e r a n d H a U i b m - t o n b o t h r e c e n t l y opened centers a i m e d a t c o U a b o r a t i o n a n d i n n o v a t i o n w i t h t h e latest i n h i g h - d e f i n i t i o n v i e w i n g , techno-toys a n d creatui-e c o m f o r t s . I t k i n d o f m a k e s t h e centers o f yesterday seem, w e U , yesteryear, as Jennifer Pallanich r e p o r t s . A n e w c o m p l e t i o n s y s t e m c u r r e n t l y b e i n g p u t t h i ' o u g h Us paces b y B J Services h i I n d o n e s i a is capable o f i s o l a t m g m u l t i p l e zones i n a s i n g l e t r i p . Jennifer Pallanich e x p l a i n s h o w t h e y adapted e x i s t m g i s o l a t i o n e q u i p m e n t t o m e e t o p e r a t o r requests f o r speeding u p t h e process i n a cost-effective m a n n e r

Some 70% o f t h e w o r l d ' s o U a n d gas reserves are c o n t a i n e d i n sandstone r e s e r v o h s w h e r e sand i s l i k e l y t o become a p r o b l e m at some p o i n t d u r i n g t h e lUe o f t h e f i e l d , Senergy's Colin McPhee discusses t h e issues a n d chaUenges f a c i n g o p e r a t o r s a n d t h e effectiveness o f sand c o n t r o l a n d sand m a n a g e m e n t m e t h o d o l o g i e s . A m e r i c a ' s e c o n o m i c g r o w t h d u r i n g B i U C l i n t o n ' s p r e s i d e n c y w a s n o fluke a n d w a s also f u e l e d b y u n p r e c e d e n t e d e n e r g y d e m a n d . Professor IVlichael J Economides e x p l a i n s w h y h e t h i n k s t h i s ' p r a g m a t i s t D e m o c r a t ' got t h e e c o n o m y / e n e r g y balance j u s t a b o u t r i g h t . OE contacts (6), Q u i c k stats g u i d e (66), P r o d u c t s i n a c t i o n (69-71), F i r m s & Faces (72/73), C o n t r a c t s (74), D i a r y (76), D i s p l a y a d v e r t i s e r s i n d e x (77), B o o k s h o p (78-80), ClassUieds (81).

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Advanced dimensional control processes were used to achieve accurate, first-time f i t of Kulluk's neto thruster porches - a key step in the Beaufort Sea drilling barge's conversion to a self-propelled vessel ("see page 29^.

Illustrations courtesy of Hi-CAD America.

Volume 32 Number 12

T u p i raises hopes o f e l e p h a n t h e r d o f f B r a z i l ; S h a h D e n i z deep d i s c o v e r y ; P e r s ê e p e r f o r m s ; S t a t o U H y d r o j o i n s S h t o k m a n e x p e d h i o n ; S i r t e b a s m s i g n u p ; B l a c k Sea change; J u i c e f r o m M a n g o ; Reseai'ch a n d r e c o v e r y ; A z u r i t e e m e r g i n g f r o m the deep blue; Paleocene p a i r ; N o r w a y r i n g s beU f o r r o u n d 20; Greater B o n g k o t g r o w s ; S t y b a r r o w streams; Pay at Yolanda; S e r v i c e r e t u r n ; L o n g h o r n lassoed; F h e o n T h i s t l e .

T h e a n a l y s t s m a y n o t agree o n w h e t h e r t h e w o r l d has h i t peak o i l , b u t t h e y a h seem to agree t h a t s u r v i v i n g p e a k oU w o n ' t be p r e t t y Jennifer Pallanicli sat i n o n t h e A S P O -U S A W o r l d on C o n f e r e n c e i n H o u s t o n late O c t o b e r

There's been n o t h i n g festive a b o u t t h e latest r u s h f o r m o r e s e i s m i c vessel capacity Andrew McBarnet has b e e n w a t c h i n g t h e f a U - o u t H a v i n g r i s e n to p r o m i n e n c e i n t h e U K N o r t h Sea as the ' o p e r a t o r s ' o p e r a t o r ' , Petrofac is n o w m a p p m g o u t t h e n e x t m a r c h i n h s c a m p a i g n as a g l o b a l f a c U h i e s s o l u t i o n s p r o v i d e r i n t e n t o n m a k i n g t h e m o s t o f t h e ' s h i f t i n g l a t e r a l b o u n d a r i e s ' b e t w e e n s e r v i c e c o n t r a c t o r s a n d o ü companies - n o t least t h e N O C s . Darius Snieckus r e p o r t s . SheU p u r c h a s e d t h e f i r s t U o a t i n g d r U l i n g u n i t purpose-buUt f o r A r c t i c w a t e r s a n d set about r e a c t i v a t i n g i t i n 2005, a d d i n g t h r u s t e r p o r c h e s to accommodate US

m a r U h n e law. Spar P o i n t Research's Bruce Jenkins detaUs K u U u k ' s second c o m i n g .

Contents Offshore Engineer 2007

COVER

contents

11-16

19-20

DIGEST

ANALYSIS

25-27

29-32

G&G NOTEBOOK

WEST AFRICAN BONANZA

Game changing

E&P Results

Know how.

Put all the pieces together. Achieve

breakthrough team performance with

Schlumberger Information Solutions.

Schlumliergep

CASH QUESTIONS

i f

MORTH AMD SOUTH

49-51

CLOSING THE GAP

52/53

SOUNDING BOARD

O O O O

0

öv

© 0 0 0

O- -0 • -Q- • ö" -1=>

0

y

ö 0 0 0 O

AND ANOTHER THING

REGULAR FEATURES

COVER

Volume 32 Number 2

contents

DIGEST

ANALYSIS

25-27

G&G NOTEBOOK

29-32

HANDLING PRESSURE

SAKHALIN STAMINA

39/40

STEPWISE SUBSEA

drilling performance

plus reliability

in hot wells

Powepflpiue X5

Our new PowerDrive X5* rotary steerable

system is engineered from the ground up to

give you unprecedented drilling performance

and reliability You can drill longer runs, optimize

wellbore placement, and reduce drilling time.

It has a temperature rating of 302 degF and

a near-azimuthal gamma ray providing

close-to-the-bit, real-time detection of shale/sand

layers, faults, and bed boundaries. In addition,

the new downlink and inclination hold

functions allow fast, accurate control of

trajectory with minimum intervention from

the directional driller

In the Gulf of Mexico, a PowerDrive X5

system saved an operator 4 days of rig time

and USD 460,000, drilling a 2,300-ft

side-track section in less than 33 hr in downhole

temperatures above 300 degF.

www.slb.com/powerdrivex5

Schlumbepger

40/41

UNDERWATER EVERYWHERE

42/43

44-47

FLIGHT SCHOOL

GREAT DANE

48-50

BUZZARD ON HIGH

53-58