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Oil and Gas industry news - latest news

TransCanada to proceed with $1.9 billion Merrick Mainline Pipeline project

NOVA Gas Transmission Ltd (NGTL - a subsidiary of TransCanada), Chevron Canada and Apache Canada are working together on the Merrick pipeline, which will transport natural gas from the NGTL system to the Chevron/Apache proposed Pacific Trail Pipeline to the Kitimat terminal. The Merrick project will consist of a 161 mile, 48 inch diameter pipe. Approvals are being sought from the Canadian National Energy Board. It is hoped the pipeline will begin operation in 2020.

Welding Journal, vol.93, no.7. July 2014. p.8.

BP Statistical Review of World Energy, June 2014

The BP Statistical Review of World Energy 2014 is presented by energy type: oil (reserves, production, consumption, prices, refining, trade movements); natural gas (reserves, production, consumption, prices, trade movements), coal (reserves, prices, production, consumption); nuclear energy( consumption); hydroelectricity (consumption); renewable energy (consumption, biofuels production).


McDermott signs agreement for Gulfport spoolbase

McDermott has announced that one of its subsidiaries has signed a lease agreement with the Mississippi Development Authority and the Mississippi State Port Authority for the exclusive right to operate a spoolbase and marine operations base in the Port of Gulfport. McDermott expects the facility to be available in early 2016. The new 50-acre facility will be used to fabricate steel pipe stalk lines through advanced welding processes for use in offshore reeled pipelay operations. It will feature a state-of-the-art fabrication building and stalk racks, as well as a dedicated dock for vessel berthing to accommodate reeling pipe onto McDermott's fleet of specialised vessels for transport and installation offshore.

Offshore, vol. 74, no. 6, June 2014. p.20.

New lift/deployment ROV in development

Deep Blue Engineering UK is to introduce a new type of lift and deployment ROV to be known as Shuttle Sub. The buoyant-controlled ROV can float, dive, surface and maintain neutral buoyancy with a 100-metric ton payload. The company says that Shuttle Sub offers an alternative to cranes for installing generating equipment, cables, exploration or recovery work and does not require an additional ROV to serve as a monitor. The current design can be employed in water depths up to 1,500m and there are plans to develop models that are capable of working at 3,000m and even greater depths. Other plans include intervention and capping capability and a cartridge with a subsea drilling capability.

Offshore, vol. 74, no. 6, June 2014. p.22.

Boskalis initiates study into ultra large Dockwise vessel

Royal Boskalis Westminster has begun a study into a new ultra large V-class Heavy Marine Transport Vessel. The study will address both the market opportunities and the technical requirements for the new vessel. The company says that it will engage with clients to understand how this vessel can accommodate the expected growth in the FPSO and FLNG markets in addition to the ocean-going transport of outsized heavy marine structures. The vessel will have a bowless design and asymmetric accommodation. Boksalis says that the addition of another V-class vessel to its current fleet of semisubmersible HTVs will enable it to further expand it leading market position in the offshore energy industry.

Offshore, vol. 74, no. 6, June 2014. p.24.

CSB: pipe buckling caused blowout-preventer failure

A new Deepwater Horizon disaster report has found that the blowout-preventer designed to shut off the flow of oil and gas from the Macondo well 'failed to seal the well because the drill pipe buckled for reasons the offshore drilling industry remains largely unaware of'. The US Chemical Safety Board released the two-volume draft investigation report, the result of an independent examination at the request of Congress on the technical reasons behind the incident and to find opportunities for possible improvements to industry standards. Volumes three and four are set for release later this year. Cementing repairs were designed to seal the well temporarily. Later pressure tests falsely indicated a proper seal that, combined with the BOP failure, ultimately led to the disaster. Early investigations assumed the drill pipe buckled days after the initial blow-out, but the CSB determined the buckling likely happened within minutes.

Engineering News-Record, vol.272, no. 18, 16/23 June 2014. p.18.

New, expanded capacities return US, Canada to global lead

Oil & Gas Journal's plant-by-plant survey of global gas processing on 1 January 2014 reveals that new US gas processing and fractionation projects that were in the pipe for the 18-24 months before that date began showing results in 2013, reflecting nearly a 6% growth in US processing capacity. As exploration and production companies continued developing US shale plays, US gas plant operators continued planning and installing new capacity. And, since much of this development targets wet shale-gas plays, the need for additional fractionation is being met by a number of new and expanded fractionators, especially in Southeast Texas. Presents tables detailing US gas processing trends, worldwide gas processing capacity and production, worldwide gas plant construction, the world's major gas reserves' the world's 20 top gas producing countries 2013, and the world's top 10 NGL producing countries 2013. Looks at selected individual projects by global region and, in the case of North America, by play to illustrate some of the activity for the past 12-18 months.

Oil & Gas Journal, vol. 112.6, 2 June 2014. pp.72-90.

Custom offshore pipeline repair systems save money

Establishing and operating a custom emergency pipeline-flowline repair system for offshore deepwater projects can reduce repair times enough to justify the additional expense. The Angola Deepwater Consortium found that existing PRS concepts could be adapted with some qualification to cope with high pressure and the region's particular fluid characteristics and that these concepts could be further adapted to address pipe-in-pipe repair. The cost of a custom repair system covering 8- to 24-in. OD pipe might not be effective for a single operator, but sharing the system offers a much improved cost-benefit ratio. In 2009 ADC began conceptual studies to screen and recommend appropriate technologies for an emergency PRS dedicated to Angola. This article focuses on pipe-in-pipe repair feasibility via the diverless on-bottom spool repair method, cutting the pipeline and installing a spool using dedicated repair connectors.

Oil & Gas Journal, vol. 112.6, 2 June 2014. pp.100-105.

Statoil spends big in R&D

Statoil has opened a new improved oil recovery centre in Trondheim on the same day it announced an R&D-focused strategic agreement between subsidiary Statoil Technology Invest and Scottish Enterprise. The company claims that the new IOR centre will be the largest centre of its kind in the country. The new facility, adjacent to an existing research facility, will provide new technology to maximise production on Statoil developments and improve drilling efficiency. Statoil wants to increase the recovery rate on the NCS by 10% to 60%, and it seems to be upping its investment in R&D to help achieve its goal. More than half of its research portfolio is invested in IOR, the company said. As part of its partnership with Scottish Enterprise, STI will spend more than £80M to encourage investment in early development projects. It, too, is part of a larger campaign: It is one of a number of new initiatives being delivered by Scottish Enterprise to help increase Scotland's gross value added by £1.5bn.


Grid says UK shale gas could meet a third of demand by 2030s

The National Grid has said that a third of Britain's gas needs could come from its own shale gas by the early 2030s if government policies and economic growth allow firms to invest in gas exploration. The potential production figure is a part of the company's 'Low Carbon Life' scenario, one of four potential scenarios in its recently published 'UK Future Energy Scenarios'. Under a 'Gone Green' scenario, with a strong economy and tougher environmental regulations British shale production could be 14.2 billion cubic metres by 2030 and under a 'Slow Progression' Scenario, with a weak economy, shale gas production could be just under 5.7 bcm. Under the forth 'No progression scenario' with a weak economy, low investment and a government focused on short term policies shale gas production would be zero. A complete failure to invest in new UK gas production, under the 'No progression' scenario could see import dependency rise to 90% by 2035, which would leave the country vulnerable to price shocks.


HHI develops welding robot for constructing offshore facilities

Hyundai Heavy Industries has announced that it has developed a new automatic welding process for building offshore facilities. The new hot-wire TIG (Tungsten Inert Gas) robot welding process combines conventional hot-wire TIG welding with the 6-axis robot which HHI independently developed. The robot is six times faster than manual welding as it can continuously supply more welding wires. It also features a remote control system to enhance work efficiency. HHI will apply this automatic welding to special pipes, made of duplex and super duplex stainless steel, to build offshore facilities such as FPSOs and offshore platforms under construction at its offshore yard. (Item contains no further information.)


China signs $1.6B engineering deal for Siberian LNG project

Offshore Oil Engineering - a subsidiary of Chinese state oil company China National Offshore Oil Corporation - has signed an around $1.6bn deal to build equipment for a liquefied natural gas project in Siberia. Under the agreement, it will build 'core modules' for the liquefication process on the project in Yamal in the Russian Arctic. Novatek, Russia's second-largest gas producer, is developing the $27bn Yamal LNG project with France's Total and the state-owned China National Petroleum Corporation. The first production unit, with annual capacity of 5.5M tonnes, is due to be launched in 2017. In May, CNPC signed a deal to buy 3M tonnes of LNG per year from the Yamal project, as did Russia's Gazprom. CNPC also agreed in May to buy 38bn cubic meters of gas per year from Russia's Gazprom, in a deal unofficially valued at $400bn.In May, CNPC signed a deal to buy 3 million tonnes of LNG per year from the Yamal project, as did Russia's Gazprom. CNPC also agreed in May to buy 38 billion cubic meters of gas per year from Russia's Gazprom, in a deal unofficially valued at $400bn.


Ezra to install 10 pipelines, 3 platforms for Chevron in Gulf of Thailand

Singapore-listed Ezra Holdings has announced that the Group's Subsea Services division, EMAS AMC, has installed 50 platforms for Chevron in the Gulf of Thailand. Under a multi-year contract that began in 2011, EMAS AMC has also successfully laid 233 miles of subsea pipes utilising the construction vessel Lewek Champion, a dynamic positioning 2 rigid pipe laying vessel with heavy lift capabilities. Chevron has since extended the contract to 2015 with a further option thereafter. In 2014, EMAS AMC is expected to install 25 pipelines and 10 platforms of which 15 and 7, respectively, have already been completed. The Lewek Champion has, in addition, received several noteworthy HSE awards from Chevron during this campaign, one for zero recordable incidents in 2011, one for reliability and performance in 2011, and also the Outstanding Crew Award in 2011 and 2013.


US cracks down on foreign pipe

The US Commerce Department has set duties on South Korean steel pipe used in the oil and natural gas industry, reversing its decision after intense lobbying from local producers, workers and lawmakers. The move was an about face for the department, which confirmed its final determination that duties would also be set on oil country tubular goods from India, the Philippines, Saudi Arabia, Taiwan, Thailand, Turkey and Vietnam. Although the investigation found pipe from Ukraine had also been sold in the United States below cost, Commerce said it would not collect any duties. Several US steel companies lodged the complaint last year after imports of pipe from the nine countries doubled to account for nearly two-thirds of the US market, according to steel industry body American Iron and Steel Institute.


Inter Pipeline announces major expansion

Inter Pipeline has announced the execution of binding commercial agreements supporting a $100M expansion of its Mid-Saskatchewan pipeline system. In aggregate, the new agreements are expected to generate approximately $25M to $30M in incremental EBITDA on an annual basis. Five oil producers have entered into ship or pay contracts to backstop the project with terms ranging from 4 to 10 years. Inter Pipeline expects the expansion to enter commercial service in phases beginning in late 2014 with the project fully completed by the second quarter of 2015. With increased drilling activity and the application of new well completion technologies, oil production in the area serviced by the Mid-Saskatchewan pipeline has grown rapidly. Throughput volumes have doubled to over 70,000 barrels per day over the last two years with much of the Mid-Saskatchewan system operating at or near full capacity. The $100M expansion programme will involve the construction of over 50km of new mainline pipe, 40km of new pipeline laterals and associated pumping and metering facilities. Once the new pipelines are in service, approximately 95,000 b/d of new capacity will be added to the system to handle oil volumes from the new battery connections and provide capacity for future third party connections. Inter Pipeline expects the new mainlines in aggregate to initially operate at less than 50% capacity, with utilisation rising over time as area production increases.


DeepFlex announces a new facility in the Port of Pensacola, Florida to support global flexible subsea pipe markets

DeepFlex has announced the signing of an agreement with Offshore Inland Marine & Services to establish a new unbonded flexible pipe manufacturing and qualification testing facility to be located in the Port of Pensacola, Florida. The industrial complex will have direct access to the existing deep water quay-side, which is strategically located for optimised access to serve the flexible pipe markets in the Gulf of Mexico, West Africa, Europe and Asian regions. The state of the art manufacturing and qualification testing facilities will create opportunities for over 100 direct jobs and make a significant contribution to the City of Pensacola's industrial and business growth. The DeepFlex Pensacola Plant will initially have a manufacturing capacity of 100 normalised kilometres per year of unbonded flexible pipe to serve the rapid growth of offshore developments worldwide and will deliver the patented, high technology, composite fibre reinforced flexible pipes to the most harsh subsea environments. This plant is one part of a major capital expenditure programme to strengthen DeepFlex's abilities in flexible pipe research, development, manufacturing, qualification testing, and delivery of customised solutions.


Hyundai Heavy Industries wins USD 1.94 billion offshore order in UAE

Hyundai Heavy Industries has received a Letter of Award for a $1.94bn order for the second package of the Nasr Full Field Development Project to build the fixed platforms and to lay subsea cables from Abu Dhabi Marine Operating Company. As per the LOA, HHI will undertake engineering, procurement, construction, installation and commissioning work for the super complex comprising a gas treatment platform, a separation platform, an accommodation platform; laying 144km subsea power and 55km infield cables; and modifying an existing manifold tower and two wellhead towers in Nasr oil field, 130km northwest of Abu Dhabi. Upon completion by the second half of 2019, the facilities will increase the daily oil production capacity of the offshore field to 65,000 barrels from the current 22,000 barrels. (Item contains no further information.)


Keppel to perform the world's first-of-its-type FLNG vessel conversion for Golar

Following the announcement of 25 June 2014, Keppel Shipyard, a wholly-owned subsidiary of Keppel Offshore & Marine, wishes to announce that the contract which it has entered into with Golar Hilli Corporation, a subsidiary of Golar LNG, to perform the world's first-of-its-type conversion of an existing Moss LNG carrier, the Hilli, into a Floating Liquefaction Vessel, has become effective. The contract is worth approximately $735M. In carrying out the FLNGV conversion, Keppel Shipyard shall be responsible for the provision of the design, detailed engineering and procurement of the marine systems and all of the conversion-related construction services. Keppel Shipyard's scope also includes engaging Black & Veatch to provide design, procurement and commissioning support services for the topsides and liquefaction process. Black & Veatch's PRICO technology has been selected for the liquefaction process because of its long-established record in the marketplace. This contract, which includes options for another two similar units, follows the completion of a year-long Front-End Engineering and Design study by Keppel Shipyard and Black & Veatch. The FEED study was conducted as part of the terms of a term sheet agreement with Golar to convert up to three LNG carriers into FLNG vessels.


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