BP Disaster Averted Gulf of Mexico 2005

8/9/2019 BP Disaster Averted Gulf of Mexico 2005

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News for theU.S. Offshore

Ene rg y Indu s try

Oil Patch Headlines Exploration & Drilling GOM Activity Supplier News Offshore At-A-Glance

Discoveries Ships & Rigs Alternative Energy Stock Watch World News Technology Report

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Vo lume 7 No . 8 Aug us t , 2 0 0 5

BP Assesses Damage to Thunder Horse After Hurricane Dennis

Disaster Averted!

BP has confirmed that the ThunderHorse semi-submersible platform, locatedin Mississippi Canyon Block 778 in thedeepwater Gulf of Mexico, 150 milessoutheast of New Orleans, was listing, fol-lowing the passing of Hurricane Dennis.Early reports confirmed that the platformwas listing an estimated 20 to 30 degrees.The Thunder Horse field is in developmentand has not yet begun production of

hydrocarbons.The situation was discovered at approxi-

mately 8:30 a.m. on July 11 (Monday), by avessel in the area. The cause is unknown.The Thunder Horse platform had been evac-uated of all personnel on Friday, July 8, inanticipation of the hurricanes approach. At

this time there has been no known release ofany fuel or hazardous substances.

BP immediately activated its IncidentCommand structure, notified the appropri-ate regulatory agencies including the U.S.Minerals Management Service (MMS) andthe U.S. Coast Guard, and conducted overflights to further assess the extent of thedamage.

BP mobilized a number of response ves-

sels to the Thunder Horse location andworking with the Coast Guard to create aresponse plan. The first priority was to safe-ly board the vessel for a further assessmentof its stability and to begin investigatingpotential causes of the issue.

BP and the Coast Guard immediately

seeBP Thunder Horse page 4

seeSale 196 page 4

Special InterestMMS Issues Final Notice ofWestern Gulf Lease Sale 196 Dennis Fixes Artificial Reef

The Minerals Management Services FinalNotice of Lease Sale 196 for offshore oil

and gas in the Western Planning Area of theGulf of Mexico was published in theFederal Register on July 7, 2005. The saleis scheduled for August 17, 2005.

Sale 196 encompasses 3,762 unleasedblocks covering approximately 20.3 mil-lion acres of federal land offshore Texasand in deeper waters offshore Louisiana.The blocks are located five to 357 kilome-ters offshore in water depths ranging fromeight to 3,100 meters. MMS estimates thelease sale could result in the production of136 to 262 million barrels of oil and 0.81 to1.44 trillion cubic feet of natural gas.

A recently revised provision to increase

the base rental rates and minimum royaltythat was included in the proposed notice of

sale has been adopted for the final notice ofsale. This increase in base rental rates (aswell as minimum royalty) from $5.00 to$6.25 per acre or fraction thereof for blocksin water depths of less than 200 meters andfrom $7.50 to $9.50 per acre or fractionthereof for blocks in water depths of 200meters or deeper reflects inflationaryadjustments from the last time rentals wererevised.

Bidders should note that an applicationfrom Beacon Port LLC for the licensing ofa deepwater port involving a proposedLNG facility in the Western Gulf ofMexico has been received by the U.S.

February 23-24, 2006, Houston, TX

Powerful waves and currentsgenerated by hurricane Dennis

uprighted the 510-ft. USS SpeigelGrove which was laying on itsside after things went wrong dur-ing its sinking. In 2002, workcrews planned on slowly sinkingit to the bottom in the FloridaKeys National Marine Sanctuary,but the 6,880-ton ship sank pre-maturely with the bow juttingabove the surface creating a navi-gation hazard. Divers using airbags then managed to roll it overon its side to make it safe. Thevessel now sits as it was original-ly intended.

Crude-oil futures rose to as high as $62.10 a barrel early July 7th, setting anew record, after severe weather shut down several oil and gas rigs in the Gulf ofMexico, intensifying anxiety over whether U.S. inventories are adequate in theshort run to meet strong demand. The spike came as a series of explosionsrocked London, injuring dozens and bringing its transport system to a virtualstandstill. Tropical Storm Cindy forced the shut-in of 12.7% of daily oil produc-tion, representing 190,506 barrels, in the Gulf of Mexico, reported the U.S.Minerals Management Service. Prices surpassed the previous record of $60.95on June 27.They're up around 70% from a year ago and up 44% year to date.

USS Speigel Grove Upright in theFlorida Keys National MarineSanctuary

OPMC to inform offshore Industry of innovations in subsea survey, positioningand mapping technologies for coastal, shallow & deepwater projects

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Contact Brad Parro(281) 994 4052

[email protected]

O f f s h o r e P o s i t i o n i n g & M a p p i n g C o n f e r e n c e


2/24

November 1Golf Tournament &

TutorialsNovember 2-4

Conference & ExhibitionMarriott Westchase Hotel

& Convention CenterHouston, Texas

Call for Speakers/ PapersLet our forum be your platform to inform delegates about developing trends,enabling technologies and exciting innovations for the Offshore Communicationsindustry.Abstracts are now being accepted and should be of the highest caliber, informative,forward-looking and non-commercial. Speakers should provide attendees with:

Existing knowledge about the technology and market for offshore communications. Insight into the future of communications technologies for the offshore oil & gas

and marine environment. Intelligence into upcoming oppor tunities, contracts, installations and requirement.For Conference Information:

Toll-FREE in the USA 877.270.7102Tel 772.221.7720 / Fax 772.221.7715

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Inquiries about the event can beemailed to [email protected]

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Premier Corporate Sponsor:

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Submit An AbstractGo to www.offshorecoms.com and click on the link, call for papers, to view anddownload an application. Email [email protected] or fax 772-221-7715along with the registration form.

Media Sponsors:


3/24Offshore So urce August, 20 05 3

Table of Cont ent sTable of Cont ent s

Advertisers

H eadlines 1

List of A dver t iser s 3

Oil & Gas N ew s 4

A lt er nat ive Energy 7

Sur vey & Mapping 8

Explorat ion & Dr illing 10

Shipyards & Equipment 11

Supplier N ew s 12

M usings fr om t he Oil Pat ch 1 3

Offshore A t -A -Glance 14

St ock Wat ch 15

Communicat ions 16

Subsea Int er vent ion 17

Company Spot light 18

Const r uct ion 19

Company N ew s 20

Event s Calendar 21

Mar ket place 22

Technology Systems CorporationPO Box 1096, Palm City,

Florida 34991-1096, USATel: +1 (772) 221 7720Fax: +1 (772) 221 7715

E-mail: [email protected]: www.offshoresource.com

ISSN 1526-8101

Offshore Source is published monthly byTechnology Systems Corporation, 7897SW Jack James Drive, Suite A, Stuart,Florida, 34997. Offshore Source, Copy-right 2005, Technology SystemsCorporation. All rights reserved. Contentsmay not be printed or otherwise reproduced

without written permission of TSC. TSC isnot responsible for lost queries, manu-scripts, or other materials. The latter willnot be returned unless accompanied byreturn postage.

August, 2005Volume 7, No. 8

Dan G. WhitePublisher & Editor

Kevin PetersonFinancial Editor

Mj McDuffee

V.P. Sales & Marketing

Inger PetersonEditorial Assistant

Sharon WhiteCirculation

Stef RussellGraphic Design

www.OffshoreSource.comwww.OffshoreSourceJobs.com

Bright Light Foundation 22

GML 22

Headhunter Inc. 23

IMES/Water Weights 12

Kongsberg 24

Mako Technologies 20

Marine Resources 22

Ocean Fiber Corporation 20

Ocean Specialists, Inc. 17

Ocean Works International 20

OCS BBS 22

Offshore Communications 2005 2

OPMC 1

Petrocom 9

Quest Offshore Resources 3

SeaCatalog 22

Skeets 22

Superior Diving 7

VisiWear 16

ADVERTISING SALES

Texas

Brad ParroPhone (281) 994 4053

Fax (281) 994 4054

E-mail: [email protected]

LouisianaKirk Roth

Phone: (337) 303 [email protected]


4/24Offshore Source August, 2 00 5

Oil & Gas News

MMS Issues Final Report onClimato log y in GOM

The Minerals ManagementService (MMS), Gulf of MexicoOCS Region, announced the avail-ability of a new study report,Climatology of Ocean Features in theGulf of Mexico, Final Report.

The climatology of certain oceanfeatures in the Gulf of Mexicodescribed in this report was devel-oped using datasets that span longperiods (as long as 32 years in somecases) to create climatological statis-tics. Twelve separate statistics werecreated, some of which describedcharacteristics of the Loop Current,while others were involved withwarm-core eddies that separate fromthe Loop Current and cold-coreeddies. The data resources used tocreate this climatology included ana-lyzed in-situ data from ships ofopportunity, from field programs inthe Gulf of Mexico, and from the

projects managed by the various oiland gas companies. However, theprincipal data used for this studywere satellite remote-sensing dataincluding sea-surface temperature,

ocean color, and sea surface height.These data were used to developoceanfront analyses in the Gulf ofMexico, which provided the charac-teristic position of the fronts for agiven month. It is expected that thesestatistics and the related interpreta-tion and discussion of Gulf of Mexicoocean climatology included in thisreport will be useful in planning fieldprograms, to marine biologists, tooceanographers, as backgroundinformation for environmentalimpact statements, in evaluating anddirecting improvements for modelsthat calculate the ocean dynamics inthe Gulf of Mexico, and for oil andgas operations in the Gulf of Mexico.

This report is available only incompact disc format from theMinerals Management Service, Gulfof Mexico OCS Region, at a chargeof $15.00, by referencing OCS Study

MMS 2005-031. The report may beordered through the MineralsManagement Services on-line order-ing system at www.gomr.mms.gov/-WebStore/front.asp.

ABOUT THUNDER HORSE

Moored Semi-submersible PDQ (ModularizedProduction, Integrated Drilling and Quarters);ABS Classed and Certified Floating OffshoreInstallation; All Subsea WellsLocation: Mississippi Canyon 778/822Operator: BP (75%)Partner: ExxonMobil (25%)Water Depth: 6050 ft (@ PDQ location)Design Life: 25 years

Processing CapabilityAnnualized average throughput - Oil250,000 BOPDAnnualized average throughput - Gas200 MMSCF

Topsides Description3 production / utilities modulesMain Power Generation Capability: 90 MWDerrick:2MM lbs Maximum;Quarters:229 persons

Hull DescriptionLightship weight: 75,000 metric tonsDry Transport weight: 59,500 metric tonsHull Displacement: 129,000 metric tonsMain Deck: 112 x 136 mNormal Draft: 30 mPontoon Height: 11.5 mDeck Freeboard: 17.5 mDiscovery Announced: July 15, 1999First Oil: 2005

Thunder Horse FieldDiscovered in 1999, the Thunder Horse

Field development is designed to utilize thelargest Production Drilling Quarters (PDQ) semisubmersible platform in the world. It weighsmore than 50,000 tons and will produce fromsome of the deepest wells in the Gulf. The facil-ity is designed to process 250,000 b/d and 200mmcf/d with first oil expected in 2005 oil andgas is planned to be transported to existing shelfand onshore interconnections via the MardiGras Transportation System.

BP operates the development (75% interest),with co-venturer ExxonMobil owning the bal-ance.

Thunder Horse consists of two adjacentfields (north and south) being developedtogether.

Reservoirs are Upper Miocene turbiditesandstones.

Field will be developed via semi-sub-mersible Production / Drilling / Quarters facility,supported by a network of 25 wet-tree subseawells.

Export is via separately funded andapproved Mardi Gras export pipelines.

Project is in the execution phase currently,with the Hull having been built in Okpo, Korea,

and the topsides modules built in Morgan City,Louisiana. Pre-drilling program is underway.

began collaborating to establish a UnifiedCommand in Morgan City, Louisiana.

On Tuesday (July 12), crews placed aboardthe BP-operated Thunder Horse platform,restored partial power to the platform, and beganpumping operations at approximately 4 p.m.which continued overnight to restore the platformto a normal marine configuration. The crews alsoretrieved the platforms data recorders, which willbe used to determine the cause of the stabilityimbalance that saw the platform list to port at anestimated 20 degrees. The crews boarded the BPoperated facility following safety evaluations thatincluded reviews by BP staff and the U.S. CoastGuards Federal On-Scene Commander, and anunderwater inspection of the facility by remotelyoperated vehicles (ROVs). The ROV inspectionshowed no evidence of damage to the platformshull. BPs response team worked with staff fromthe U.S. Coast Guard to return Thunder Horse to

normal status. In addition to four BP-contractedresponse vessels, the Coast Guard made availablethe Cutter Pelican, and additionally supported theoperation with a Dauphin helicopter.

Weather cooperated with the response teamon Wednesday, enabling them to begin coveringballast inlets and instrumentation ports on thehull.

The safety of all response personnel remainsthe highest priority. There have been no reports ofany major injuries to response personnel.

U.S. Coast Guard personnel from MarineSafety Office, Morgan City, Louisiana, remain onscene and continue to monitor operations and pro-vide emergency spill response, if needed. Therehave been no reports of environmental impacts inthe area and the Coast Guard cutter Pelicanremains on scene to provide any needed search

and rescue support and to enforce a one-milesafety zone around the recovery operations.At press time BP reported that steady progress

was being made in righting the semisubmersibleplatform. The platforms decking is now 46 ft.out of the water and the list has been reduced to 5degrees. Thunder Horse was not due to start pro-duction until the end of 2005 and the platform isnot yet connected to any subsea wells.

Disaster Averted Unlike Petrobras P-36Seeing the images of Thunder Horse brought

immediate thoughts of the Petrobras P-36 disaster.On March 15, 2001 the $350 million P-36

semisubmersible production platform was fatallydamaged by explosions which caused the rig toeventually sink on March 20th in 1,350 meters ofwater in the Roncador field in the Campos Basin

offshore Brazil. The disaster killed 10 workersand injured several others. Salvage of the rig wasdeemed impossible.

continued from page 1

BP Thunder Horse

continued from page 1

Sale 196

BPs Thunder Horse on Monday, July 11th

The Petrobras P-36 semisubmersible sank on March 20, 2001 in 1,350 meters of water.

Coast Guard and the Maritime Administration. Bidders should be aware thatthis proposed facility will affect certain blocks in the High Island and WestCameron Areas.

Finally, the final notice of sale also restates a recently adopted regulationthat was not included in the proposed notice of sale. The final rule, effectiveApril 29, 2005, amends regulations to correct an unintended potential gap andadministrative oversight in the original deep gas royalty rule by making leas-es located partly in water deeper than 200 meters and issued during lease salesheld in 2001 and later years expressly eligible for royalty relief for drillingdeep gas wells on leases not subject to deep water royalty relief.

This lease sale incorporates a continuation of previously adopted leaseterms and conditions relative to recent Western GOM lease sales.

Statistical Information (Lease Sale 196):Size: 3,762 unleased blocks: 20.3 million acres

Initial Period: 5 years for blocks in water depths less than 400 meters:1,762 blocks8 years for blocks in water depths of 400 to less than 800meters: (pursuant to 30 CFR 256.37, commencement ofan exploratory well is required within the first 5 years ofthe initial 8-year term to avoid lease cancellation):358 blocks10 years for blocks in water depths of 800 meters:1,642 blocks

Minimum Bonus Bid Amount:$25.00 per acre or fraction thereof for water depths lessthan 400 meters: 1,762 blocks$37.50 per acre or fraction thereof for water depths 400

meters or deeper: 2,000 blocks

Rental/Minimum Royalty Rates:$6.25 per acre or fraction thereof for water depths less than 200 meters:

1,576 blocks$9.50 per acre or fraction thereof for water depths 200 meters or deeper:

2,186 blocks

Royalty Rates:16-2/3% royalty rate in water depths less than 400 meters:

1,762 blocks12-1/2% royalty rate in water depths 400 meters or deeper:

2,000 blocks

Royalty Suspension Areas:0 to less than 200 meters: 1,576 blocks400 to less than 800 meters: 358 blocks800 to less than 1,600 meters: 902 blocks

1,600 meters or deeper: 740 blocks

The Final Notice of Lease Sale 196 will be posted on the MMS Website athttp://www.gomr.mms.gov. In addition, copies of the document are availablefrom the MMS Gulf of Mexico Regional Office, Public Information Unit,1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123. Telephone(504) 736-2519, toll free 1-800-200-GULF.


5/24

Offshore Source August, 2005 5

A data report available fromEnergyfiles in association with Douglas-Westwood will revolutionize the analysisof future oil trade balances and potentiallyrewrite oil price forecasts advocated bysuch luminaries as the CEOs of Shell andBP. Having predicted, and now witnessed,the first oil price surge Energyfiles hasdecided to publish its comprehensive ten-year dataset, forecasting oil and gas pro-duction, consumption and trade in everyproducing country in the world.

Energyfiles Director Dr. Michael R.Smith, and lead analyst, says the ten-yeardata demonstrate that it is no longer appro-priate to accept glib demand forecasts fromoil companies, financial institutions andgovernments that predict, with wishfulthinking, evergrowing demand levels, con-trary to observations on oil supply.Suggestions that oil consumption willgrow to up to 120 mm bbls per day by 2020and that automobile and airline traffic willincrease at extraordinary rates are futileand damaging to policy makers.

Such forecasts, divorced from reality,fail to take account of tight supply condi-tions and rising prices. We will be unable toproduce oil at these rates without unbeliev-able step changes in technology. After2010, and for periods before this, oil sup-ply limitations and prices will seriouslysubdue energy demand unless suitable liq-uid alternatives are developed.

Surging oil priceFor example Lord Browne of BP has

said that oil prices are likely to remainabove $40 a barrel but only until new sup-plies come onstream in a few years. AlbertBressand,a vice president of Shell, offers ascenario coherent with a long-term price

range in the $30 to $40 range, whilst theCEO of Shell said in early June that energydemand in the next 30 years will growfaster than in the past three decades.Meanwhile Geoff Curry, head of commod-ity research at Goldman Sachs recentlysaid, the real problem is a lack of refiningcapacity.

Careful forecasts of supply data do notsupport such speculations. Projections inOil and Gas 2006are consistent with rap-idly rising prices after 2010 accompaniedby painful conservation, Smith says.Sufficient new supplies will not comeonstream to replace the inexorable deple-tion of existing fields, especially those old,100 or so, giant fields responsible foraround 65% of global supply, such asGhawar (1948) and Safaniya (1951) inSaudi Arabia, and Burgan (1938) inKuwait.

Some commentators are less sanguinethan BP and Shell. John Westwood, MD ofDouglas-Westwood, and publisher of TheWorld Oil Supply Report now in its 3rdedition, said that, over the longer term asustained increase in oil prices is likely asa global energy supply gap develops andreal cost increases materialize. This reportis by the same author as Oil and Gas2006, but its 0% to 3% demand scenariohas recently been reproduced by theEconomics, Industry & Finance Ministryof the French Government. The Ministrycomments on the likelihood of a produc-tion plateau sooner rather than later, a subject seldom brought up by governmentministries and never by financial depart-ments.

Many of the technologies to find andproduce onshore oil were developed earlyin the 20th Century, says Smith, and

with offshore operations appearing in the1950s increases in demand have easilybeen met by supply. Of course oilexporters, especially The Texas RailroadCommission in the 1930s and the OPECalliance after 1973, have artificially createdupward pressure on price by collaboratingto restrict output.

However at the end of 2003 timeswere changing. Exceptional demandgrowth in Asia, coupled with flagging lev-els of output from non-OPEC countries,has created a new capacity-constrainedenvironment. At such a critical time, withoil and gas still uniquely important to thehealth of the global economy, it is impor-tant to take a global and integrated long-term look at supply and demand levels ofoil and gas, both onshore and offshore.

Plan B - gasGas too is a versatile fuel, and is even

more geologically widespread. However itis unsuitable for use in transport exceptwhen expensively converted into a liquidor used to create a fuel substitute such ashydrogen.

Smith points out that with rapidgrowth of the LNG industry, a global gasmarket is now developing, which is in turnkick-starting new local and regional gasmarkets, allowing the commercializationof remote, undeveloped or wasted gasaccumulations. Gas is now replacing oilwherever it can. However gas supply needsan infrastructure, which takes time toinstall and may not immediately be cost-effective, and hardly ever for private trans-port. As an example Russian gas is expect-ed to support growing UK needs but pro-jections show that Russia will actually haveless gas to export westwards over the nextdecade. Output will only pick up after 2015as new volumes appear in Arctic Russia.

A global imbalanceUntil 2010 oil supplies will struggle to

keep up with demand causing intermittentupward pressure on prices as the

supply/demand ratio swings in and out ofbalance. After 2010 upward pressure willbe permanent. The near term effect on theeconomies of countries will differ depend-ing on their level of development, location,dependence on imported oil, and availabil-ity of other raw energy materials and/orinfrastructure to produce fuel alternatives.

Gas, the best short-term substitute, willbe available only if investment in infra-structure, above all long distant pipelinesand LNG conversion and receiving plants,is well advanced.

US Federal Reserve Chairman AlanGreenspan said in 2005 that oil marketsmight stay turbulent for some time tocome, but he predicted that, high priceswill spur the use of cheaper alternativeswell before the world's oil reserves aredepleted. Projections in Oil and Gas2006 show that gas will be this key alter-native fuel, Smith says, but not withoutthe transport industry revolutionizing itself.Increasing investment in public electrifiedsystems and reduction in aircraft and auto-mobiles is inevitable, as is fierce globalcompetition and painful conservation.

Using information from the Energyfilesdatabase Oil and Gas 2006: Global ten-year projection is a comprehensive quanti-tative survey of oil and gas production,consumption and trade. The data are divid-ed into 5 parts. The first 4 include countrieswithin the megaregions of: Americas;Europe and the FSU; Africa and theMiddle East; and the Asia -Pacific.

The 5th part contains summations ofregions within these trading blocs. Eachdataset is a 10- year historic and 10-yearprojected production, consumption andtrading series, split into oil/gas andonshore/offshore where appropriate. Partscan be purchased individually if preferred.

Oil and Gas 2006: Global ten-yearprojection is published by Energyfiles Ltdin association with Douglas-Westwood. Itcontains over 275 pages, 500 figures and250 tables and covers 129 countries andregions.

For further information contact:Michael R. Smith, Energyfiles Ltd.Tel: +44 1494 873352Email: [email protected]: www.energyfiles.comLesley Lindsay-WatsonDouglas-Westwood Ltd.Tel: +44 1227 780999Email: [email protected]: www.dw-1.com

10 Year Demand Forecast Report

Schlumberger Reports $3.43 Billion in Second QuarterSchlumberger Limited (NYSE:SLB)

reported second-quarter 2005 operatingrevenue of $3.43 billion versus $3.16billion in the first quarter of 2005, and$2.83 billion in the second quarter oflast year. Income from continuing oper-ations was $473 million, or $0.78 pershare-diluted, versus $0.65 beforecharges and credits in the previous quar-ter, and $0.49 before charges and creditsin the second quarter of last year.

Income from continuing operations,

including charges and credits, was$0.78 per share-diluted, versus $0.87 inthe previous quarter and $0.43 in thesecond quarter of last year. Net income,

including discontinued operations, was$482 million or $0.80 per share-diluted,compared to $0.86 in the previous quar-ter, and $0.59 in the second quarter oflast year.

Oilfield Services revenue of $3.04billion increased 10% sequentially and20% compared to the same quarter oflast year. Pretax business segment oper-ating income of $674 million increased21% sequentially and 48% year-on-year.

WesternGeco revenue of $383 mil-lion increased 1% sequentially and 31%year-on-year. Pretax business segmentoperating income of $58 million

decreased 9% sequentially but increasedthree-fold year-on-year.

Schlumberger Chairman and CEOAndrew Gould commented, Second-quarter results showed sharp improve-ments across all geographical areas andtechnologies, both year-on-year andsequentially, as customer spendingplans accelerated worldwide.

In Russia, the cooperation and con-fidence established during the initialperiod of our minority holding of

PetroAlliance has confirmed our beliefthat the company will play a major rolein our continued expansion. We aretherefore very pleased to announce the

acquisition of a further 25% equitystake.

With growing demand for Q tech-nology across the world, WesternGecohas announced the conversion of a sixthseismic vessel to the new standard. Thevessel will enter service in the secondquarter of 2006. The previouslyannounced fifth Q vessel is already inservice.

While the supply response hasbegun, it has not yet reached a level, or

been underway long enough, to make ameaningful improvement in productioncapacity. The coming quarters will seefurther increases in activity.

Oil & Gas News


6/24

Offshore So urce August, 2005

MMS Announces High Bids of$ 3 4 2 .02 7 ,46 7 for Lease Sa le 19 4

UK Wind Over 1,000 MW InstalledThe UK wind energy industry has now installed

over 1000 megawatts (MW) of wind capacity mak-ing it one of only 8 countries in the world to have sur-passed this figure.

The official opening of the most powerful windfarm in the UK to date, the 39 turbine 58.5 MW CefnCroes wind farm in Ceredigion in Wales, brings thetotal to 1037.7 MW from 1273 turbines, which togeth-er generate sufficient electricity to meet the needs ofwell over half a million households or a fifth ofhomes in greater London.

A further six gigawatts of new wind projects will beup and running in the UK by the end of 2010, split

evenly between on and offshore developments.Achieving this objective will deliver energy security,environmental and industrial benefits for the UKaccording the the BWEA.

Breaking the gigawatt barrier comes in a recordyear of growth for the UK wind industry, with a totalof 18 new wind projects totalling some 500 MW ofcapacity expected to be officially commissioned byyear end, taking UK wind generation to over 1% ofUK electricity supply, and on track for expectations ofthe sector.The UK wind industry is projected to meetsome three quarters of the Governments target forrenewables by 2010, representing an investment of7bn into the sector, according to a survey carried outby the BWEA.

ERHC and Pioneer Form Gulf of GuineaPartnership

Houston-based ERHC Energy Inc.

(OTCBB:ERHE) announced the company is pro-ceeding with consortium partner Pioneer NaturalResources in Blocks 2 and 3 of the JointDevelopment Zone, in which the Nigeria-Sao Tomeand Principe Joint Development Authority awardedthe consortium interests on May 31, 2005. The con-sortium originally included Devon Energy as the thirdconsortium partner, which has since announced itsdecision to decline the bid award due to the low inter-est the company would receive as one of three con-sortium partners.

ERHC has accepted the awards of its pre-existinginterests in the five blocks in the Joint DevelopmentZone.

Based in Houston, Texas, ERHC Energy Inc. is anoil and gas company focused on exploration in theGulf of Guinea offshore West Africa. For more infor-mation, visit the company's website atwww.erhc.com.

Founder of Mar-Vel Dies at 90Mr. Patrick F. Madison, co-founder of MAR-VEL

International, died the morning of June 10, 2005, aftera brief illness.He was 90 years of age. Mr.Madison,along with Everett Edmund, founded M&E MarineSupply in 1946. MAR-VEL Underwater Equipment,Inc.was a division of M&E Marine.In 2000 the namewas changed to MAR-VEL International, Inc. Mr.Madison served for many years as president of MAR-VEL. After his retirement, Mr.Madison played a vitalroll as a member of the Board of Directors even upuntil his passing. Mr.Madison was recently nominat-ed to the Commercial Divers Hall of Fame..

Peak Wins Major Australian ContractInternational well construction performance

expert The Peak Group has secured a major contractwith Australian oil exploration company AED Oil

Limited for the provision of its well construction proj-ect management and procurement services. Peakhas also been contracted to provide a drilling rig forAEDs production and exploration drilling campaign inthe Timor Sea.

The Peak Group will deliver a complete well proj-ect management service for three wells located inAEDs permit area, AC-P-22, within the AshmoreCartier area of the Vulcan Sub-Basin, in theBonaparte basin. It is approximately 80 kilometerssouth west of the commercial Jabiru and Challisfields. The job will include detailed well design, ten-dering and contracting for all services, execution ofthe drilling programme including materials and logis-tics, project completion and operations wrap-up. ThePeak Group will also provide a semi-submersibledrilling rig, the Stena Clyde, and act as project serv-ice manager for the drilling in AEDs permit area.

Planning and operations management services

will be conducted in Melbourne in close collaborationwith AED Oil and Upstream. Drilling activity is expect-ed to commence in the second half of 2005 and thecontract value is in the region of AUS $1million.

The Minerals Management Service has accepted highbids valued at $342,027,467 for 403 tracts offered in Oil andGas Lease Sale 194 and awarded leases to the successfulhigh bidders. Funds from the total high bids will be distrib-uted to the general fund of the U. S. Treasury, shared withthe affected States, and set aside for special uses that bene-fit all fifty states.

The leases were awarded following the completion of anextensive two-phase bid evaluation process to ensure thatthe Federal government receives a fair monetary return for

the public mineral resources it makes available.Lease Sale 194, held March 16, 2005, attracted 80 com-

panies submitting 651 bids on 428 tracts totaling$540,254,193. Of the 428 tracts receiving $353,961,798 inhigh bids, MMS rejected 19 high bids totaling $11,931,635as insufficient for fair market value. MMS accepted the high

bids on 409 tracts for an amount of $342,030,163. One com-pany declined its six awarded leases. This action resulted inthe forfeiture of the 1/5th bonus bid deposit for each leasefor a total of $674.00. The remaining 4/5th bonus, not col-lected, resulted in a total net amount to the MMS of$342,027,467 for 403 tracts in Lease Sale 194.

The highest bid accepted on a tract was $21,157,755 byDominion Exploration & Production, Inc. and Stone EnergyCorporation for West Cameron 132. This tract is in shallowwater and received eight bids. said Gulf of Mexico

Regional Director Chris Oynes, Sale 194 indicates the con-tinued strong interest of major and independent oil and gascompanies in the Gulf. The results of the sale also indicatea continuing interest in shallow-water areas, with fifty-seven percent of the tracts receiving bids in less than 200meters of water.

BHP OKs Neptune DevelopmentOwners of the Neptune discovery have agreed to chip in

$850 million to develop their Gulf of Mexico deepwater oiland gas field, situated in the prolific Atwater Foldbelt playalong with several other major discoveries on the same geo-logical trend, including Atlantis and Mad Dog.

Neptune operator BHP Billiton and partners WoodsidePetroleum, Marathon Oil and Maxus Exploration, sub-sidiary of Repsol YPF, also have tapped Canadas Enbridge

to build and operate $100 million worth of lateral oil andgas pipelines necessary to transport Neptunes productionto market.

Neptune represents several firsts for the U.S. Gulf. Itwould be BHPs first operated project and Woodsides firstproduction in the region. BHP and Woodside, Australiaslargest producers, hold large exploration positions in theGulf. Neptune would be Enbridges first oil line in the Gulf.

Neptune is a major development relatively close toEnbridges existing Green Canyon pipeline infrastructureand Neptune would provide a new natural gas supply andpotential for additional supply sources for the existingCleopatra, Manta Ray and Nautilus offshore pipeline sys-tems, all partially owned by Enbridge.

Plans call for Enbridge to construct and operate a natu-ral gas lateral pipeline that would consist of 23 miles of 12-3/4-inch diameter pipe and an oil lateral made up of 23miles of 20-inch diameter pipe. The laterals would have the

capacity to deliver more than 200 million cubic feet of nat-ural gas per day and roughly 50,000 barrels of oil per day.

Neptune, about 120 miles from the Louisiana coast in

water depths ranging from 4,200 to 6,500 feet, has estimat-ed recoverable reserves of 100 million to 150 million bar-rels of oil equivalent. BHP has a 35 percent stake in thefield, followed by Marathon with 30 percent, Woodsidewith 20 percent and Maxus with 15 percent.

Pipeline connection to offshore production facilities isscheduled for the second quarter of 2007, with first pro-duction expected by year-end 2007. The Neptune facility

has a design capacity to produce up to 50,000 barrels of oiland 50 million cubic feet of gas per day. BHPs share of theproject is $300 million.

The field comprises Atwater Valley blocks 573, 574,575, 617 and 618. The production facility would be inabout 4,250 feet of water.

A standalone, tension-leg platform has been selected forthe development, BHP said, adding that facilities, wells,and completions are proven designs that have been usedsuccessfully in the deepwater Gulf. The wells, subsea sys-tems, flowlines, floating systems, topsides and risers willbe designed, procured, fabricated and operated by BHP onbehalf of the Neptune joint venture partners.

Neptune, found in 1995, was the first discovery in thewestern Atwater Foldbelt, with an initial appraisal well(Neptune-2) drilled in 1997. Neptune-3, drilled in 2002,encountered about 130 feet of net pay. Neptune-5, drilled in2003, found a whopping 500 feet of net pay in a 1,200-foot

column. And Neptune-7, drilled in 2004, intersected 114feet of net pay.Petroleum News

Oil & Gas News

The top five companies with the highest number of accepted high bids for Sale 194 are the following:

Company No. of Accepted High Bids Sum of Accepted High BidsDominion Exploration & Production, Inc. 25 $52,300,892Focus Exploration, LLC 25 $10,176,565Murphy Exploration & Production Company USA 22 $27,685,175LLOG Exploration Offshore, Inc. 22 $34,859,680Energy Partners, Ltd. 21 $14,817,037

The top five companies with the highest total bonus accepted are the following:

Company No. of Accepted High Bids Sum of Accepted High BidsDominion Exploration & Production, Inc. 25 $52,300,892LLOG Exploration Offshore, Inc. 22 $34,859,680Murphy Exploration & Production Company USA 22 $27,685,175Spinnaker Exploration Company, LLC 18 $16,145,075Energy Partners, Ltd. 21 $14,817,037

Repsol Invests in Neptune BISSO Lays ItsFirst PipelineSpanish-Argentine oil and energy company Repsol YPF

SA (REP) said it will invest $130 million in the Neptune oiland gas field off the coast of Louisiana in the Gulf ofMexico.

The Neptune field is being developed by a consortiumof companies including Repsol YPF unit MaxusExploration, BHP Billiton Ltd (BHP), Marathon Oil Corp.(MRO) and Woodside Energy Inc., a subsidiary ofWoodside Petroleum Ltd. (WPL.AU).

The consortium estimates total development costs forthe Neptune Field to be around $850 million and that its

recoverable reserves are in the range of 100 million to 150million barrels of oil equivalent. First oil is expected by theend of 2007.

Visit www.repsolypf.com

BISSO MARINE recently completed the successfullay of the companys first pipeline project. The 220 x74, DLB BIG CHIEF laid and buried approximately1400 of 10 pipe in the SOUTH TIMBALIER AREA.BISSO MARINE divers completed the tie-in portionform the DLB BIG CHIEF, the entire project was com-pleted ahead of schedule. The second pipelay project forBISSO MARINE is a lay, bury and tie-in of approxi-

mately 22,000 of 6, this project is expected to beginfollowing the completion of several structure removalsand a bury project on the current schedule for the DLBBIG CHIEF.


7/24

Offshore Source August, 2005 7

Hybrid Fuel Systems, Inc.(OTCBB:HYFS), a manufacturer and dis-tributor of diesel and gasoline conversionsystems, has announced closing theacquisition of Oklahoma-based DRVEnergy, Inc. (DRV), a manufacturer anddeveloper of light to medium duty gasalternative fuel conversion technologiesand alternative fuel fil l-stations.

Hybrid CEO Mark Clancy said, Themost exciting aspect of this acquisition is

the family of commercial-ready, EPACertified conversion technologies, whichwe can now add to the Hybrid family.DRVhas a history of satisfied clients. We lookforward to ramping up the sales and mar-keting component of our operation. Theaddition of the family of DRV EPACertified technologies positions our com-pany to capitalize on growing demand forrelief from the escalating costs of dieseland gasoline.The use of compressed nat-ural gas (CNG), liquid natural gas (LNG)or propane can have an immediate andmeaningful impact to transportation costs.Sheri Vanhooser, president of DRV, bringsto us industry experience of systems andfuelling that has been long awaited by ourmanagement. Sheri will be instrumental inmanagement of short and long term busi-

ness objectives.For more information visit

http://www.hybridfuelsystems.com.

A new report shows that Americacan produce 25 percent of its trans-portation fuel needs from agriculturalcrop wastes -- utilizing new processesdeveloped by the biotechnology industrywhile reducing carbon and greenhousegas emissions. 'Bringing Biofuels to thePump, from the National ResourcesDefense Council, recommends that theUnited States invest $1 billion over thenext 10 years in bioethanol commercial-ization to drive the development of thefirst billion gallons of bioethanol capacityat a price approaching that of gasolineand diesel. The Biotechnology Industry

Organization supports that recommenda-tion and agrees with the NRDC that devel-opment of cellulosic biofuel is economi-

cally and strategically vital to helping endAmerica's dependence on imported oil.

"The Senate version of the energy bill[HR 6] currently in conference committeecontains an 8 billion gallon renewable fuelstandard and establishes a reverse auc-tion for the production of the first billiongallons of ethanol made from cellulose-containing crop wastes," said BrentErickson, BIO Executive Vice President ofIndustrial and Environmental Biotechno-

logy. We could be producing up to 25percent of our transportation fuel needs inthe not-too-distant future by combiningbiotechnology and agriculture to producebioethanol, and this energy bill will be abig stimulus to help us meet that goal, headded.

The report recommends that the fed-eral government establish a mix of incen-tives -- including loan guarantees, tax-exempt financing and performance incen-tives -- to aid ethanol researchers andproducers at each step in bringing cellu-losic biofuels to market. The NRDC alsorecommends capping the total amount ofincentives at $1 billion over 10 years, toensure that the industry becomes self-supporting and economically viable. Astechnology advances in the next 10 years,

these incentives will lower the costs ofcellulosic biofuel production to about$0.93 per gallon -- roughly equivalent tothe current wholesale price of both gaso-line and ethanol from new corn-basedfacilities, the NRDC predicts.

Biofuels have been shown to reduceemissions of greenhouse gases. TheBringing Biofuels to the Pump reportcontends that use of cellulosic biofuelscan reduce greenhouse gas emissions by1.7 billion tons per year.

The NRDC therefore recommendsthat renewable fuel standards, such asthat contained in the Energy Bill recentlypassed by the House and Senate, estab-lish a cellulosic ethanol blending require-ment that would reach 1 billion gallons by2015.

The report is available on BIOs website at http://www.bio.org/ind/.

Oil and Energy Companies Team 0n Hydrogen-Powered 350 MW Electric Power Station

ConocoPhillips, Shell and Scottish andSouthern Energy (SSE) will begin engineeringthe design of the worlds first industrial scaleproject to generate carbon-free electricityfrom hydrogen. The planned project - produc-ing decarbonisedfuel and using it for powergeneration - would convert natural gas tohydrogen and carbon dioxide gases, then use

the hydrogen gas as fuel for a 350 MW powerstation, and export the carbon dioxide to aNorth Sea oil reservoir for increased oil recov-ery and eventual storage. The project wouldreduce the amount of carbon dioxide emittedto the atmosphere by the power generation byover 90 percent. While each of the componenttechnologies making up the project is alreadyproven, their proposed combination in thisproject is a world first.

The project would be located close toPeterhead in north-east Scotland. A newlybuilt reformer plant would convert up to 70million cubic feet of natural gas a day intocarbon dioxide and hydrogen and the hydro-gen would be used as fuel for a new 350MWcombined cycle gas turbine power station.

The carbon dioxide generated by thereformer would be exported through existing

pipelines to the mature BP-operated Milleroilfield, 240 kilometers offshore, where theplatform would be adapted to allow for injec-tion of the gas into the reservoir four kilome-ters below the seabed to increase oil recoveryfrom the reservoir and for storage.

The Miller field is currently due to ceaseproduction in 2006/7 but the injection ofcarbon dioxide into the reservoir couldincrease the amount of oil extracted fromthe field, potentially allowing the produc-tion of up to 40 million additional barrels ofoil and extending the life of the field by 15to 20 years.

Initial engineering feasibility studiesinto the project have already been complet-ed. The partners will now carry out furtherdetailed front-end engineering design workwith the aim of confirming the economicfeasibility of the scheme. This work wouldbe expected to be complete in the secondhalf of 2006. This will allow a final invest-ment decision to be taken next year, subjectto which the project would then be expectedto commence operation in 2009.

The full project would require total cap-ital investment of some $600 million. Itwould also require an appropriate policyand regulatory framework which encour-ages the capture of carbon from fossil fuel-based electricity generation and its long-term storage.

When fully operational, the project

would be expected to capture and storearound 1.3 million tons of carbon dioxideeach year and provide carbon-free elec-tricity to the equivalent of a quarter of a mil-lion UK homes.RenewableEnergyAccess.com

Alternative Energy


8/24


Survey & Mapping

Technology Systems Corp., pub-lisher of Offshore Source, and theorganizers for the Offshore

Communications and EnergyOceanconferences, is pleased to announceTSC to be the organizer for the 2ndAnnual Offshore Positioning andMapping Conference.

This new, exciting and focusedevent will again be held in Houston,Texas on February 23-24, 2006 Theconference will be held in the U.S. in2006, the UK the following year, andthen will continue to flip-flop yearlybetween the two nations after that.

The conference is solely dedicat-ed to the state-of-the-art in survey,navigation, positioning and mappingoffshore and along coastlines. Theconference will bring together allaspects of navigation, positioning andmapping, above and below the ocean

surface and will utilize all aspects ofthe technology to tie it all together.

This year the Oil & Gas industry,now working in both deep and shal-low water will be invited to see thelatest in technologies and servicesavailable to them for the many off-shore projects planned and underway.

Technical tracks will include:Hydrographic Survey

Route SurveyInspection& SurveillanceSurface Navigation & Positioning

Subsea Navigation & PositioningSubsea MappingSearch, Location & RecoveryShip, Spill & Buoy TrackingCable & Pipeline InstallationSubsea Equip. InstallationCoral Reef and Ocean Science

Who should AttendAll users and providers of off-

shore navigation, positioning andmapping products and services.Ocean science agencies and oil com-panies will hear about new technolo-gy developments and case studies onprojects around the world.

Who Should ExhibitExhibitors may find new markets,

unrealized as yet as the worlds oil &gas companies stroll though the hall.The following is a partial list of com-panies who will benefit from exhibit-ing at this conference:

Manufacturers of:SonarsUnderwater CamerasAcoustic ModemsROVs/AUVs & Submersibles

Navigation SoftwareGPSADCPs

Doppler Speed LogsCompasses & GyrosBuoysLong Baseline PositioningShort and Ultra-Short BaselineLidar

Service Providers of:Hydrographic SurveySearch & RecoverySurface PositioningTowingAnchor HandlingMooringAirborne Bathymetric LidarHarbor SurveyHarbor SurveillanceArcheologyHull Inspection

Platform InspectionTreasure HuntingInsuranceNaval Test SupportSeismicSatellitesDredging

More information will be available soonat www.positioningmapping.com

Applanix announced that JUPEM, the governmentagency responsible for all topographic mapping inMalaysia, has purchased its industry-leading POS AV 510(Position and Orientation System Airborne Vehicles). Theorganizations Department of Surveying and MappingMalaysia (DSMM) will integrate the POS AV with its RC30

aerial camera system to generate accurate geospatial data.The Applanix POS AV is an integrated inertial positionand orientation system specifically designed to providedirect georeferencing data for all types of airborne sensors.The system integrates precision GPS with inertial technolo-gy to provide real-time and post-processed information foraerial cameras, LIDAR systems, imaging scanners, andSynthetic Aperture Radar.

Brad Koziey, Director of Sales for Applanix comment-ed, The POSAV 510 integrates with JUPEMs existingTrackAir Flight Management System, providing automatedairborne mission control when generating high accuracyposition and attitude data for the RC30 camera. This allowsfor the rapid creation of digital maps,orthophotos, and dig-ital terrain models for JUPEMs Computer Aided MappingSystem (CAMS) and Fast Mapping System (FMS) pro-grams currently underway, plus other aerial survey andremote sensing applications requiring geometrically cor-rected and geographically encoded data.

Operating under the Ministry of Natural Resources andEnvironment, JUPEM is the leading provider of completeand up-to-date geospatial information in Malaysia.

Visit www.applanix.com.

RESON Mediterranean Srl has delivered and com-pleted the installation of a survey system that includes aRESON SeaBat 8124 multibeam system and PDS2000Software to the Hydrographic Division of the EgyptianNavy. The award also includes training of Egyptian Navypersonnel.

In cooperation with RESONs Egyptian representative,Surveying System, RESON Mediterranean Srl deliveredand installed a SeaBat 8124 system and accessories, includ-ing a PDS2000 Hydrographic Software Package. RESONMediterranean personnel will also provide a full trainingcourse, including both theoretical and practical training onthe sonar hardware and software. The SeaBat 8124Multibeam system operates at 200 kHz and is a high accu-racy system, even on the outer beams. It features anadvanced bottom detection system that incorporates bothamplitude and phase detection methods.

In addition, Emu Ltd. has recently taken delivery of aRESON SeaBat 8101 Multibeam Echosounder. The inte-grated multibeam system is also comprised of RESONPDS2000 Data Acquisition and Processing software,RESON SVP-15 Sound Velocity Probe and a TSS MAHRSAttitude and Heading Sensor.

Visit www.reson.com.

Applied Geomechanics Inc. (AGI) introduced theModel 802 DeepWater tiltmeter for underwater measure-

ment of structural and machine movement, designed for themonitoring of oil platforms, production facilities, pipelinesand pipe laying equipment. They also measure pitch and rollof surface and underwater vehicles. The standard housingwithstands pressures in excess of 100 bars (1,500 psi). Theinternal sensing element is a precision tilt transducer similar

to those used in aircraft and marine gyroscopes. The high-gain version measures rotational movements smaller than0.0001 degree, while the wide-angle version, with an oper-ational range up to +/-70 degrees, accurately monitors themovement of underwater machinery. DeepWater tiltmetersare available with analog voltage, 4-20 mA, RS232 andRS485 outputs.

Triton Imaging, Inc. reported that NOAA purchasedTritons HarborSuite multibeam and sidescan sonaracquisition and QC system for use in an underwater portsecurity application. The system was purchased by NOAAsNavigational Response Team (NRT) which is a componentwithin the Office of Coast Survey. The system will be usedto test the Baseline Port Security (BPS) concept beingdeveloped by the U.S. Coast Guard R&D Center. With BPS,high-resolution sonar images of high-risk areas of the portseabed are periodically collected. The resultant images are

compared with a set of baseline images. Changes are detect-ed and suspicious objects are then investigated with diversand/or remotely operated vehicles (ROVs).

C & C Technologiesdeepwater AUV, C-Surveyor II,was delivered to C & Cs corporate headquarters inLafayette, Louisiana on June 3, 2005. C & C purchased theC-Surveyor II as a base vehicle in November 2004 and hasworked diligently over the last six months to integrate andbuild customized components for this next generation sur-vey AUV.

The design of the C-Surveyor II is modeled after C &

Cs existing state-of-the-art AUV, C-Surveyor I, andincludes a multibeam echosounder, chirp side scan sonar,chirp sub-bottom profiler, CTD system and a methanedetector. The Edgetech DW106 sub-bottom profiler onboard is customized with narrow transmit and receivebeams to permit significantly deeper seabed penetration. Inaddition to the sub-bottom profiler, C & C also has aDynamically Focused (DF) sidescan sonar system beingspecialized for installation in November 2005. The DFsidescan sonar will provide five times more resolution thantraditional systems in order to identify smaller objects locat-ed on the ocean floor.

During the next month, C & C system engineers willcontinue to integrate proprietary hardware and software intothe C-Surveyor II AUV. After the integration is complete,the C-Surveyor II will be mobilized on C & Cs newly pur-chased 247-foot Norwegian flagged vessel, M/V NorthernResolution, and begin several surveys currently in thequeue. Today, C & C is a worldwide leader in commercial

deepwater AUV operations with the largest market share ofany operator. Over the last four years, C & C has surveyedmore than 42,000 line-km worldwide on 74 AUV projects.

C & C Technologies provides a variety of survey serv-ices including high accuracy Globally-corrected GPS serv-ices, marine construction surveys, high-resolution geophys-ical surveys and geotechnical surveys including full labora-tory testing.

For more information regarding C & C Technologiesservices, please send email to [email protected] orcontact Jay Northcutt at (+1) 337-261-0660.

C-Surveyor II AUVDelivered to C & CTe chnolog ies , Inc.

Offshore Posit ioning & MappingConference AnnouncedConference to inform offshore Industry of innovations in subsea survey, positioning and mapping tech-nologies for coastal, shallow & deepwater projects

Digital SeismicStreamer

Geometrics Inc., announced the GeoEel, a 24-bit digital seismicstreamer. Its wide bandwidth (up to 8KHz) makes it applicable to allseismic surveys: petroleum, high-resolution engineering, and evensub-bottom profiling. Only 1.5 inches (38 mm) diameter and config-urable with up to 240 channels and multiple streamers, the GeoEelsends data by Ethernet to any industry-standard low-cost PC. TheGeoEel is the first high-resolution digital streamer to be filled with anon-toxic, non-flammable silicone oil derivative. This eliminates firehazard or fines in environmentally sensitive areas due to accidentalrips or tears in the streamer skin. A comprehensive suite of softwareprovides real-time gathers, brute stack, GPS integration, trigger tim-ing, gun monitor and other data visualization, quality control andinstrument tests. The GeoEels narrow design is ultra-quiet, makingfull use of true 24-bit circuitry. In-water digitization eliminates groundloops and shipboard electrical noise; resulting in quick, clean quality

installations. The compact GeoEel weighs about 1 kg per meter andis easily shippable by air as non-hazardous, non-flammable goods.Unique construction makes systems up to 48 channels deployable byhand on small vessels. A thick 3.2 mm skin protects the GeoEel inshallow water and transition zone applications.

Visit www.marinemagnetics.com


9/24


10/24


Exploration & Drilling

Transocean Gets $ 9 8 5 Mfor Rigs in Brazil

Kerr-McGee AnnouncesDis covery a t Eas t Breaks 5 9 9

Transocean Inc. (NYSE:RIG) has announcedthat the board of directors of Petroleo Brasileiro S.A.(Petrobras) has approved contract awards for five ofthe company's rigs totaling 19 rig years and an esti-mated $985 million in revenues, excluding revenuesfor mobilization, demobilization, performancebonus opportunities and client reimbursables. Thecontracts were approved for the drillshipsDeepwater Navigator and Peregrine I and semisub-mersible rigs Sedco 707, Sedco 710 and TransoceanDriller. Each rig is currently located in Brazil and allof the units with the exception of the Peregrine I arecurrently under contract to Petrobras.

The contract approved for the DeepwaterNavigator, a dynamically positioned drillship capa-ble of drilling in water depths of up to 2,000 meters,has a four-year term which is expected to commencein October 2006, in direct continuation of the rig's

current and expected contract commitments.Estimated revenues of $263 million could be gener-ated over the four-year contract period.

A three-year contract was approved for thePeregrine I, a dynamically positioned drillship capa-ble of drilling in water depths of up to 1,500 metersand is expected to commence in November 2005 fol-lowing an estimated 120-day planned upgrade in ashipyard in Brazil, where the rig is currently idle.Estimated revenues of $123 million could be gener-ated over the three-year contract period. Additionalrevenues are possible through a performance bonusopportunity of up to 20%.

The contract approved for the Sedco 707, adynamically positioned semisubmersible rig capableof drilling in water depths of up to 2,000 meters, isfor four-years and should commence in January2006 following the completion of the rig's currentcontract commitment and an estimated 60-dayplanned shipyard program. Estimated revenues of$263 million could be generated over the four-yearcontract period.

A four-year contract for the Sedco 710, adynamically positioned semisubmersible rig capa-ble of drilling in water depths of up to 1,200meters, was approved and should commence inOctober 2006 in direct continuation of the rig'scurrent contract commitment. Estimated revenuesof $175 million could be generated over the four-year contract period. Additional revenues are pos-sible through a performance bonus opportunity ofup to 10%.

The contract approved for the TransoceanDriller, a semisubmersible rig capable of drillingin water depths of up to 1,050 meters, has a four-year term which is expected to commence inAugust 2006 in direct continuation of the rig's cur-rent contract commitment. Estimated revenues ofapproximately $161 million could be generated

over the four-year contract period. Additional rev-enues are possible through a performance bonusopportunity of up to 10%.

The Deepwater Navigator, Peregrine I, Sedco707 and Sedco 710 are four of the 32 High-Specification rigs in the Transocean Inc. fleet, 28of which are deepwater rigs, capable of drilling inwater depths of 1,370 meters and greater. TheTransocean Driller is one of 24 Other Floaters inthe company's fleet that service the mid-water seg-ment of the market.

Transocean Inc. (RIG) also reported that aninternational oil and gas operator has committed toa contract for one of its deepwater rigs, whichcould mean $234 million or more in revenue to thedriller. Transocean didn't name the operator butsaid the two-year contract should begin later in2006. Brazil's Petrobras (PBR) currently is undercontract for the drill-ship, the Deepwater Frontier.

The contract announced and the Petrobras pactcould result in additional revenue for Transoceanfrom, for example, performance bonuses.

Kerr-McGee Corp. (NYSE: KMG) announcedfurther deepwater Gulf of Mexico success with a dis-covery at East Breaks 599. Kerr-McGee estimatesthat the field has potential resources in the range of10 million to 20 million barrels of oil equivalent

(BOE). The field will be developed as a subseatieback to the Kerr-McGee-operated Boomvang pro-duction hub, located approximately three miles southon East Breaks block 643. East Breaks 599, locatedin 3,220 feet of water, is operated by Kerr-McGeewith a 33.34% interest. Kerr-McGees partners inEast Breaks 599 are Amerada Hess Corp. (NYSE:AHC) and Marubeni Oil & Gas (USA) Inc., eachwith a 33.33% interest.

The East Breaks 599 well, spud on May 27,was drilled to a total measured depth of 9,142 feetand encountered more than 135 net feet of high-quality oil pay in several sands. The well will betemporarily abandoned for completion in early2006.

Our deepwater hub-and-spoke strategy fordeveloping core areas continues to add valuethrough satellite successes such as the East Breaks

599 discovery, said Dave Hager, Kerr-McGee sen-ior vice president responsible for oil and gas explo-ration and production. We plan additional satel-lite exploration in the East Breaks area, with afour-well exploratory program at NorthwestNansen near our Nansen production hub. Weexpect to spud the first well later this summer andestimate that the combined resource potential forthe four fault blocks is in the range of 20 million to50 million BOE.

The exploratory well at the Chilkoot prospect,located on Green Canyon block 320, is noncom-

mercial based on results to date. Well data isbeing evaluated and upon completion, additionalappraisal will be considered. The well, drilled toa company-record measured depth of 32,023 feet,is being temporarily abandoned and will be con-

sidered for future re-entry or sidetrack. Chilkootis the deepest penetration in western GreenCanyon and the data obtained is important to thegeological understanding in this under-exploredarea where Kerr-McGee holds interests in approx-imately 35 blocks. Kerr-McGee operatesChilkoot with a 33.33% interest.

The rig will be moved from Chilkoot to theConquest prospect, located on Green Canyonblock 767 in the companys Constitution corridor.Following the Conquest appraisal, the companyexpects to spud the West Covington prospect onGreen Canyon block 765. Kerr-McGee operatesConquest and West Covington with 50% workinginterests. Conquest and West Covington have anestimated gross resource potential in the range of90 million to 240 million BOE and could add sig-nificant value in the Constitution area. The

Constitution hub, which includes the developmentof Ticonderoga through a subsea tieback, is Kerr-McGees sixth-operated deepwater hub in the Gulfof Mexico. First production is expected in mid-2006.

Kerr-McGee estimates its second-quarterexploration expense will be approximately $135million, which includes an approximate $18 mil-lion charge related to Chilkoot.

For more information, visit www.kerr-mcgee.com.

Nexen Petroleum revealed that the Unocal-operated GreenCanyon block 512 Knotty Head exploration well encountered morethan 300 ft. of apparent hydrocarbon pay in a secondary objectiveaccording to measured-while-drilling logs. The well is currentlydrilling ahead at 29,670 feet and has yet to penetrate the primaryobjective in the lower Miocene section. The well is planned for a totaldepth of 32,500 feet. Unocal operates the well with a 25% stake.Nexen, BHP Billiton and Anadarko each hold a 25% stake in KnottyHead.

Rowan Companies' subsidiary, LeTourneau, has entered intoa contract to furnish vessel design and components (a LeTourneaukit) for the construction of two Super 116 Class jack-up drilling rigs.The rigs will be built by Keppel AmFELS for Scorpion Offshore.TheLeTourneau kits, which comprise of the rig's legs, jacking systems,cranes and certain other components, will be delivered in stages inaccordance with the construction schedules. Rowan expects thecontract to provide approximately $55 million in revenue during 2006and 2007.

GlobalSantaFe Corporation (NYSE: GSF) announced that itsreport of drilling rig status and contract information has been updat-ed as of July 7, 2005. The drilling rig status and contract informa-tion report on GlobalSantaFe's offshore drilling fleet is available in acondensed format via the company's Web site at http://www.global-santafe.com .The report is located in the "Investor Relations/SEC fil-ings" section.

Rowan Companies, Inc. (NYSE:RDC) announced that it hasbeen awarded a term drilling contract for use of the Rowan Gorilla VIIin the North Sea commencing in August 2005.The contract providesfor a one-year term with a minimum work commitment of ninemonths, and includes an option for a second year. Rowan estimatesthat contract revenues, based on a one-year term, will be approxi-

mately $65 million. The Gorilla VII is currently carrying out decom-missioning activities on the Ardmore Field in the North Sea which theCompany expects to conclude during July.

Stabil Drill, a Superior Energy Services company, recentlyopened a full-service facility in Baku, the capital city of Azerbaijan,Stabil Drill CEO Sammy Russo announced. Stabil Drill provides pre-mium quality downhole drilling equipment to the worldwide oil andgas industry. Stabil Drill established the location for tool rental, repairand maintenance through a joint venture with Caspian Oil Services.The location will offer stabilizers, subs, hole openers, roller reamersand non-mag drill collars, and is API- and ISO 9002-certified. Thelocation will also refurbish equipment when necessary according toAmerican Pipe Institute (API) specification.

Drilling rig status and contract information on TransoceanInc.'s offshore drilling fleet has been condensed into a reporttitled "Transocean Fleet Update," which is available through thecompany's Worldwide Web address at www.deepwater.com.The

report is located in the "Investor Relations/Financial Reports"section. By subscribing to the Transocean Financial ReportAlert, you will be immediately notified when new postings aremade to this page by an automated e-mail that will provide a linkdirectly to the page that has been updated. Shareholders andother interested parties are invited to sign up for this service.

McMoRan reported a net loss of $8.8 million, $0.36 pershare, for the second quarter of 2005 compared with a net lossof $11.2 million, $0.65 per share, for the second quarter of 2004.McMoRan's net loss from its continuing operations for the sec-ond quarter of 2005 totaled $7.4 million, which includes $2.6 mil-lion of start-up costs associated with the MPEH(TM) and $21.0million of exploration expense. During the second quarter of2004, McMoRan's net loss from continuing operations totaled$9.1 million, including $1.7 million of MPEH(TM) start-up costsand $10.1 million of exploration expense.

McMoRan continued active exploration drilling under i ts $500million exploration venture with positive results at VermilionBlocks 16/17 (King Kong) and four wells in progress.

In July 2005, the King Kong discovery well at VermilionBlocks 16/17 reached a total depth of 18,918 feet and encoun-tered 14 hydrocarbon bearing sands totaling approximately 150feet of net pay. Completion under way.

West Cameron Block 43 No. 4, currently drilling below 17,800feet towards a total depth of 18,500 feet.

McMoRan's share of production averaged 38 Million cubicfeet of natural gas equivalents per day (Mmcfe/d) in the secondquarter of 2005, and 50 Mmcfe/d including approximately 2,000barrels of oil per day (bbls/d) from Main Pass Block 299 com-pared with 5 Mmcfe/d in the year-ago quarter. Production atMain Pass 299 was reinstated on May 6, 2005 at a gross rate ofapproximately 4,000 bbls/d.

Third-quarter 2005 production expected to average 35-40Mmcfe/d net to McMoRan, and 52-57 Mmcfe/d including 2,900bbls/d for McMoRan's net share of oil production from MainPass Block 299. Two development wells are expected to com-

mence drilling in the third quarter of 2005, King Kong No. 2 atVermilion Blocks 16/17 and Hurricane No. 2 at South MarshIsland Block 21.


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Offshore So urce August, 2005 1 1

Kongs berg Releases New NeptuneCargo Handling Simulator Model

BISSO MARINE has been contracted byGlobalSantaFe Corporation to assist in therepair of the thrusters on the GSF DevelopmentDriller I and GSF Development Driller II. The600 ton capacity D/B LILI BISSO will be on loca-tion in the Grand Island area to assist in therepair work on thrusters. BISSO MARINE isalso providing logistical and operational supportfor the project. GlobalSantaFe delayed thestartup of its two new semisubmersible rigs inthe U.S. Gulf of Mexico after an inspectionrevealed defects in the rigs thruster nozzles.The company is investigating the cause andextent of resulting damage to the thruster noz-zles on the GSF Development Driller I and GSFDevelopment Driller II, which were mobilizedfrom a Singapore shipyard after delivery in thefirst quarter of 2005.

Keppel AmFELS, the US wholly ownedsubsidiary of Keppel Offshore & MarineLtd (Keppel O&M) has signed contracts forthe construction of two jackups withScorpion Offshore of Houston, Texas. Thecontract price for the two rigs, excludingOwner Furnished Equipment, is approximate-ly US$174 million. These are the first two rigsof the Scorpion fleet, and are expected to bedelivered in 2007 and 2008 respectively.Keppel AmFELS and Scorpion Offshore arealso currently in discussion for an option for athird rig. Based on the proven LeTourneauSuper 116 design, the rigs will have leglengths of 477 ft and will be capable of drillingto 30,000 ft deep in water depths of 350 ft.Therigs have been designed to readily acceptoperator-desired upgrades for even deeperwaters and drilling depths. Keppel AmFELShad constructed rigs based on theLeTourneau 116 design.These rigs, the ChilesColumbus and Chiles Magellan (renamedENSCO 74 and ENSCO 75), are currentlyoperating successfully in the Gulf of Mexico.

A new Concentrated InspectionCampaign (CIC) has been announced bythe Paris MOU Secretariat. It will focus oncompliance of a ships radio station with theGlobal Maritime Distress and Safety System(GMDSS). It will also include verification thatradio operators are able to demonstrate thatthe station is in a satisfactory working condi-tion and used for its intended purpose. TheCIC will commence on 1 September 2005 andwill last 3 months, concluding on 30 November2005.

During every port State control inspectionthe ships GMDSS, its equipment, operationand correct recording of communications andmaintenance shall be verified in more detailfor compliance with SOLAS, STCW Code andISM Code. For this purpose port State controlofficers (PSCO) will apply a questionnaire list-ing 15 questions in total to cover this concen-trated inspection. When there are cleargrounds for believing that the requirementsare not met, a more detailed inspection maybe carried out. Deficiencies will be recordedand the master will be instructed by the PSCOto rectify these before departure, at the nextport, or within 14 days. Serious deficienciesmay lead to the detention of the ship until theyhave been rectified. The Secretariat hasannounced the new campaign to the trademedia but information has not yet been postedto the Paris MOU website: www.parismou.org.It is suggested that owners contact theSecretariat directly for more information.

Northrop Grumman Corporation (NYSE:NOC) has signed an agreement with JakobHatteland Display to provide repairs and serv-ice for Hatteland products as an authorizedrepair center for Hattelands family of high-res-olution flat-screen monitors. NorthropGrummans Sperry Marine business unit willbe responsible for providing worldwide war-ranty and non-warranty repairs at its servicecenters in Rotterdam, Netherlands, Singaporeand New Orleans. Hatteland flat-screen mon-itors are widely used in the maritime and navalindustries for type-approved shipboard radars,electronic charting systems and bridge infor-mation displays, as well as in the medicalindustry and other business sectors. Foundedin 1987, Jakob Hatteland Display AS is a fullyowned Norwegian company with branchoffices in Oslo, Norway, Germany and theUnited States.

Shipyards & Equipment

Kongsberg Maritime has released a new Neptune CargoHandling Simulator model. The new model is called VLCCDouble Hull. It has been released in order to address the presentand future needs of the shipping industry and training institutionsacross the world.

The new Double-Hull model is developed following 20 yearsof the Kongsberg Maritime single-hull model, which has beendelivered to a number of training facilities world wide. It pro-vides a much longed for tool for training in very complex full

scale cargo, ballast and cleaning operations simultaneously.Several enhancements over the previous single-hull model

have been made to provide a simulation model suitable for mod-ern training, many of which have been directly requested by cus-tomers. These include the possibility to remove the terminalwhilst underway, and the ability to connect proper loading arms.

Working in unison with the worlds maritime training institu-tions, Kongsberg Maritime is able to steer its continuous simula-tion R&D in the direction the industry requires. As a result ofstrong relationships and extensive simulation development expe-rience, Kongsberg Maritime can, as in the case of the newDouble-Hull VLCC model answer and exceed customer expec-tations.

New regulations affecting single hull tankers were adopted inDecember 2003 as amendments to Annex I of the MARPOLConvention, following the November 2002 sinking of the single-hull tanker Prestige off the Spanish coast. More recently, the

single-hull tanker Athos I spilled oil in the Delaware River onNovember 26, 2004, and many in the U.S. Congress now wantthe phase out of single-hull tankers accelerated from 2015 to2010.

For further information contact: Mark Treen at (+47)33032289 or [email protected]

As a result of collaboration between Kongsberg Maritime andthe Torvald Klaveness Group, on the 4th May 2005 M/V

Cemstar became the first cement vessel to go into operation withan electronic logbook. The new M/V Cemstar ElectronicLogbook is based on the Kongsberg Electronic Logbook andwas specifically developed for the vessel.

The Marine IT division of Kongsberg Maritime is at theforefront of marine IT with the Fleetmaster system enablinggreat changes in how logbooks are kept. Although paper-based logbooks will be retained as a fallback plan, all datawill, from now on, be stored electronically and four separatelogbooks (Deck Log, Engine Log, Oil Record Book part 1 andPort Log) will register all activities regarding loading, dis-charging and bunkering.

The Kongsberg Electronic Logbook system consists of ship-board data management via the electronic logbook and anonshore database accessed by ship managers and operationaldepartments for statistics and planning purposes. The ease oftransferring data over IP and wireless communications to shoreusing Kongsberg Electronic Logbooks make it possible for M/VCemstar reports to be made available to Heidelberg Norcem,M/V Cemstars client.

For further information, please contact Rita KratheKongsberg Maritime at [email protected] or visitwww.kongsberg.com

DP Incidents ReportLNG Plant Delivered

Electronic Logbook

The fourteenth annual report on dynamic positioning stationkeeping incidents has been published by IMCA - theInternational Marine Contractors Association.

Some 51 reported incidents, which occurred during 2003,are covered with a comprehensive event tree for each, togetherwith analysis and a summary of key findings and trends.Perhaps naturally the number of incidents on established ves-sels is going down quite sharply, said Jane Bugler, IMCAsTechnical Director.

Copies of the report have been sent to all IMCA MarineDivision members and to all known member DP vessels.Members and non-members alike can purchase additionalcopies, either individually or as a part of a printed collection1989-2003. Reports from 2000 onwards are also available. Aten-year review of DP incidents tracking themes and solutionswill be published later in the year by IMCA.

Another DP-related project is nearing completion. This isthe international cross industry guidance for the use of DP onoffshore supply vessels. The first two drafts received somehelpful feedback, which led to a number of amendments, par-ticularly in the expected areas of debate - those involving com-petency and risk assessment. IMCA is now working on the sec-ond draft. Readers should note that this is an internationalindustry document, which IMCA is simply coordinating. Inputhas come from as wide a population of DP OSV interests aspossible - and more is welcome.

For more information visit www.imca-int.com

The world's largest heavy transport vessel the Blue Marlinof Dockwise Shipping in Breda, The Netherlands steamed toMelkoya in northern Norway recently, carrying Statoils barge-mounted LNG process plant for Snohvit (Snowy-white).Dockwise was awarded the contract by Statoil for three seatransports of the essential parts of the Snohvit LNG exportfacility at Melkoya in northern Norway. First the heavy trans-port vessel Tern transported the Snohvit barge-mounted MegUnit and Substation from Flushing, the Netherlands toMelkoya. After a voyage of 7 days the Tern arrived at her dis-charge location on 13 February 2005.

The second transport was performed by the Swan. Thebarge-mounted Snohvit coldbox was floated on the Swan inFlushing, the Netherlands and delivered to Melkoya after a 5-days voyage on 6 May 2005. The third, final and most impres-sive transport, the Snohvit barge-mounted LNG process plant,is performed by the world's largest heavy transport vessel ofDockwise the Blue Marlin of Dockwise. The process plant hasbeen floated on board the Blue Marlin in Cadiz, Spain, where-after the Blue Marlin set sail for Melkoya on 30 June. The BlueMarlin delivered the process plant to its final destination in July.

This massive structure represents a crucial component ofEuropes first export facility for liquefied natural gas (LNG),the Hammerfest LNG plant on Melkoya. The LNG processplant has a weight of 34,760 ton,an overall length of 175 meter,a width of 69 meter and a height of 60 meter. The largest ves-sel of the Dockwise fleet the 76,061 dwt Blue Marlin has alength of 224.50 meter, a width of 63 meter with a deck spaceof 11,227 square meters. According to Project Manager GerardPilger of Dockwise Shipping in Breda; As this LNG processplant is designed for an onshore facility, the construction of itsmodule supports is more sensitive to motions than compared tothe designated offshore facilities we transport regularly.Weather conditions while sailing across the Bay of Biscay andthe North Sea from Spain to Norway, can sometimes be unfa-vorable and could cause higher accelerations than allowable.For this reason a motion monitoring system is installed, whichregisters and interprets the motion response on-line and pro-vides input to the heading control for the captain. When neces-sary the captain of the Blue Marlin can take the appropriateactions like slowing down or changing course. Furthermore, theredundancy in propulsion of the Blue Marlin makes this vesselextremely suitable for heading control necessary for this kind ofcargoes sensitive to motions.


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Supplier News

Quick Filte r

Rosedale Products, Inc. has intro-duced the Rosedale QII. Finally aquick access enclosure that has nobolts, no tools required and that truly isquick. This new design employs a

high-tech proprietary seal that seatsprecisely and ensures a positive seal.Competitive models can unseat thecover seal during operation causingmessy leaks. This is eliminated by theRosedale QII design. The fast actinghand wheel allows easy operation ofthe clamping mechanism and elimi-nates sticking of the clamp. The self-aligning design has no cams or partsthat need field adjustment, and there isno wear on the clamp surface. The QIIunits meet ASME code requirementsfor 150 PSI rating. Rosedale is an ISO9000 facility.

Rosedale a 30-year, privately heldcorporation, manufactures high-quali-ty liquid filtration products and waste

minimization equipment for a varietyof industrial, commercial, and residen-tial applications. For more informa-tion, contact Rosedale Products, Inc.

Anvil International, the largest andmost complete fitting and hanger manu-facturer in the world, offers dependableand cost-effective coating products toprotect pipes against the corrosive condi-tions found in oil and gas pipelines. Theelements these pipelines face cause dam-age that significantly affects their overallperformance and lifecycle. The depend-ability and lifetime value of connectionsand pipes may be greatly extended withthe proper protective coatings from Anvil.

Anvil provides two stock coatings,Scotchcote 134 and Corvel 1660, whichare durable, reliable and field-tested.Scotchcote 134 is a fusion-bonded epoxycoating designed to protect metal surfacesfrom corrosion. It is resistant to waste-water, corrosive soils, hydrocarbons,harsh chemicals, brine and saltwater.Corvel 1660 is specially designed to pro-tect the inside diameter of tubular goods

in applications such as fittings, valves,drill pipes, sucker rods and meteringsystems. Corvel 1660 is resistant toH2S, CO2, harsh chemicals, brine andsaltwater.

In addition to these two stock coat-ings, Anvil offers a range of specialtycoatings available upon request, includingnickel coating, chrome plating, Tefloncoating, Nap-Guard coating and powdercoating.

Anvils coatings are formulated forboth internal and external protection, andare ideal for a range of applications,including natural gas, petroleum, waterand sewage, refineries, petrochemicalplants, power plants and paper mills.They are effective on all grades of pipe,and can be used to coat malleable, castiron, forged steel and ductile metals.

For more information, visit the Website at www.anvilintl.com.

Anvil Coatings Protect Pipelines

Kirby Morgan Dive Systems, Inc.(KMDSI) has learned that a single batchof non-return (oneway) valves manufac-tured by Circle Seal Controls, Inc. maybe defective. These valves are used onall Kirby Morgan masks and helmetsmanufactured for surface-supplied div-ing. The valves in question are datestamped on the valve body and fallwithin the date range 12/04 to 02/05. Ifyou have a valve like this on your hel-met, please return it immediately to

KMDSI, or any of its dealers, for a freereplacement. KMDSI can be reached at1430 Jason Way, Santa Maria, CA93455. Telephone 805-928-7772, FAX805-928-0342. Email [email protected]. Website www.kirbymor-gan.com.

Valve Recall

Perso nal Loc ato rs

Stabil DeliversPipe to North Seain 6 Days

When activated in an emergency, theFastfind Plus transmits a satellite distress sig-nal to worldwide geostationary COSPAS-SARSAT satellites. The signal is then routedthrough the AFRCC to the nearest search andrescue authority. With its built-in GPS, theFastfind Plus is totally self-contained andeliminates the need for any external plug-inconnections or additional add-on equipment.The GPS data can provide search and rescuepersonnel with LAT/LON information. Tofurther assist rescue personnel, the FastfindPlus transmits a 121.5 MHz homing frequen-cy. It also transmits its unique ID number,

which can be matched to the user through reg-istration. For further information contactMcMurdo Ltd, or visit the website atwww.mcmurdo.co.uk

Stabil Drill, a global supplier of down-hole tools and equipment for the oil and gasindustry, recently delivered an urgent orderfor nearly 28 tons of specialized pipe to atroubled drill site more than 4,700 milesawayin less than six days.

An ExxonMobil subsidiary, EssoExploration and Production Norway AS, isthe owner and operator of the Ringhorne pro-duction platform in the North Sea offshoreNorway. Esso experienced drilling problemsrelated to a highly deviated well and requiredhole cleaning and torque reduction in the 17-1/2-in. well section.

Stabil Drill mobilized 30 joints of 6-in.OD (outside diameter) Hydroclean drillpipe from our inventory to Amsterdam viaair freightwith a total weight of more than55,000 pounds, explained InternationalManager Ashley Lane.

Truck drivers working in tandem thentransported the pipe to the port city ofStavanger, Norway, where it was loaded on aship bound for the drill site.

Im very pleased with our crews harmo-nized effort on two continents, which result-ed in our pipe being in service in the NorthSea less than six days after ExxonMobil firstcontacted us in Lafayette, Lane said.

For more information call (337) 235-1848.


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14/24

Offshore So urce August, 2 00 51 4

Offshore At-A-Glance

FOR MORE DETAILED INFORMATION PLEASE CALL

(281) 491-5900 * 44 (0) 1737 371704 - London OR GO TO: www.QuestOffshore.com

www.SubseaZone.com * www.FloatingProductionZone.comemail: [email protected]

Glo b a l S u b s e a Fo re c a s t 2 0 0 3 - 2 0 1 1

Forecast F loat ing Product ion Uni t s 2005 - 2010

Global De epw ater Pipe l ine Forecas t


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Offshore So urce August, 2005 1 5

Monthly Statistics

O f f s h o r e S o u r c e s

Industry Symbol Close Close Change Change High LowCompany Name Mid July Mid June % 52 week

Mo n t h l y S t o c k F i g u rMo n t h l y S t o c k F i g u r e s & C o m p o s i t e In d e xe s & Co m p o s i t e I nd e x

DISCLAIMERThe information on this page is provided for information and comparison purposes only and should not be used to make

financial and business decisions and is accurate to the best of our knowledge for the period indicated.

Diversified, Production Support and Equipment Companies

Baker Hughes, Inc. BHI 51.05 51.44 3.16 7.0% 55.35 36.27BJ Services BJS 57.85 53.81 4.04 7.5% 58.08 42.25Cooper Cameron Corp. CAM 69.51 63.11 6.40 10.1% 69.88 46.96

Drill-Quip, Inc. DRQ 32.70 30.60 2.10 6.9% 37.66 17.38Halliburton Company HAL 53.29 46.39 6.90 14.9% 53.85 26.45Maverick Tube Corp. MVK 33.65 34.14 -0.49 -1.4% 36.89 25.40Newpark Resources, Inc. NR 8.20 7.09 1.11 15.7% 8.20 4.72Smith International, Inc. SII 69.65 64.11 5.54 8.6% 69.88 51.60Schlumberger Ltd. SLB 82.28 76.45 5.83 7.6% 82.39 58.64Superior Energy Services, Inc. SPN 20.00 18.10 1.90 10.5% 20.00 9.25Weatherford International, Inc. WFT 62.58 59.98 2.60 4.3% 62.70 42.91

Total Diversified, Production,Support and Equip......................... 544.76 405.22 39.54 7.8% 554.88 361.83

Geophysical / Reservoir Management

Dawson Geophysical Company DWSN 24.51 22.59 1.92 8.5% 27.66 9.98Mitcham Industries, Inc. MIND 9.30 8.06 1.24 15.4% 9.40 3.10Veritas DGC, Inc. VTS 30.00 30.80 -0.80 -2.6% 32.18 19.61

Total Geophysical /Reservoir Management.. 63.81 61.45 2.36 3.8% 69.24 32.69

Offshore Drilling Companies

Atwood Oceanics, Inc ATW 65.

BP Disaster Averted Gulf of Mexico 2005

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