The pace of activity in the offshore oil and gas exploration sector is matching that of the petroleum industry in general. Operators are putting money to work in exploration, and that translates into an increase in business for the seismic surveying companies and related equipment suppliers. As seismic survey technology progresses, new demands are placed on the vessels and on the processing side as well. One continuing trend is for processing to begin immediately onboard rather than waiting for the data to be carried back to a central facility.
Changes and trends
When comparing the 2006 seismic vessel survey with the 2007 version, several things are apparent. There are new companies listed as well as new boats. Plus, there was one big merger last year that impacted the list. There are also some things indicated by the survey that are not as readily apparent.
A streamer array being run by GSI.
New companies on the survey this year include Global Geophysical Services, Offshore Seismic Surveys, SCAN Geophysical, Shanghai Offshore Petroleum Bureau, and Wavefield Inseis. The big merger created CGGVeritas by combining CGG Marine and Veritas DGC.
The number of vessels in this year’s survey is about 30 more than last year, even after accounting for the few vessels that were retired. Where known, the list also includes vessels scheduled for delivery in the next year or two. Of course, new companies account for almost half of the new vessel listing.
Global Geophysical brought two vessels with it, Offshore Seismic Surveys added one, SCAN has three vessels, Shanghai Offshore has one, and Wavefield has six.
Companies listed in 2006 with new boats for 2007 include BGP with one, Fugro GeoServices with one, Fugro-Geoteam with two new vessels, Gardline with two new boats, and PGS Marine with one. SeaBird Exploration led the advances with seven new vessels on the chart, one of them chartered to Fugro-Geoteam.
Within the body of the vessel listing, two specifications show the most variance between 2006 and this year. The greatest number of statistical changes was in the “Maximum towable footprint” column. The maximum towable footprint is figured by multiplying the number of cables times their length in meters times the width in meters that the spread covers. In almost every instance where there is a change in the numbers, it results in a larger maximum towable footprint. In other words, on average, the vessels are now capable of covering a greater area per pass than in 2006.
The column with the next largest number of change is the “Streamer configuration” column. Streamer configuration is the number of streamers times the number of channels. Again, the bulk of the changes result in a larger streamer configuration compared to the prior year.
As might be expected from the general increase in maximum towable footprint and streamer configuration, the survey also indicates a notable number of increases in the average number of streamers used in 2006.
Activity review
The financial results and discussions from companies involved in offshore seismic surveying provide indications of the market. For some of the larger companies, at least, those indicators are up.
CGGVeritas has predicted revenues for 2006 prior to the Veritas merger at $1.67 billion, an increase of 54% compared to revenues of $1.08 billion for 2005.
CGGAmadeus.
“In 2006, the revenues of the CGG group, prior to the merger with Veritas, increased as we expected by more than 50%, in a favorable market and thanks in particular to the successful integration of Exploration Resources and the success encountered by Sercel’s new products,” says CEO Robert Brunck. He says this would meet the company operating objectives for 2006.
Through 3Q 2006, CGG offshore revenues were $184.4 million, up 91% compared to 3Q 2005. Total revenues for multi-client surveys were $75.3 million, up 108% year on year.
WesternGeco has reported revenue of $721 million increased 9% sequentially and 55% year on year. These figures include both onshore and offshore activity.
“Full-year 2006 revenues grew 34%, far exceeding our original expectations” says Schlumberger chairman and CEO, Andrew Gould. “This was driven by significant price increases, a rich portfolio of new technology and stronger activity in almost all ‘GeoMarkets’.”
Full-year 2006 revenue of $2.47 billion increased 49% versus 2005, with a pretax operating income of $853 million in 2006 yielding income levels 170% higher than 2005. Pretax operating margins grew, demonstrating accelerating demand for exploration-driven seismic services. Marine vessel utilization of 99% in 2006 versus 88% in 2005, pricing growth exceeding 50%, and demand for Q-Technology contributed to this growth, Schlumberger says. As a segment, Q-Technology revenue reached $726 million, an increase of 82% over 2005.
Marine ArcticNalivkin.
Looking forward to seismic vessel surveys in the future, WesternGeco has commissioned construction of the eighth and ninth Q-Marine vessels, to be delivered in 2008 and 2009 respectively.
Statoil awarded WesternGeco a 4D amplitude-variation-with-offset inversion contract for seismic reservoir monitoring on their four Q-Marine 4D North Sea surveys acquired by WesternGeco over the past five years.
In the central Gulf of Mexico, WesternGeco completed data acquisition of phase one of the E-Octopus multi-client wide-azimuth survey. Using Q-Technology, the 11,072 sq km (4,275 sq mi) survey covers 475 deepwater blocks and provides a step change in subsalt imaging in this region. Due to demand generated by the upcoming lease sale and the need for improved in subsurface illumination, the second phase of the project was accelerated in 4Q 2006 with the addition of a second Q-Marine vessel and two source vessels.
The expansion and modernization of Fugro’s seismic fleet with new vessels in the period 2006-2008 is fixed. To come are two multi-purpose vessels,Fugro Saltire and Fugro Synergy, which are scheduled for operation in 2008.
Fugro Seisquest is scheduled to go into service by mid-year.
Revenue from Fugro’s Geoscience division, which encompasses seismic acquisition, rose to $215.6 million - an increase of 22% compared with the first half of 2005.
The seismic vesselsGeo Atlantic and Geo Barents will be launched during the second half of the year. Orders have been booked that will keep these vessels working until well into 2007 and 2008 respectively. The Geo Celtic was scheduled for launch early in 2007 and the Geo Caribbean in 2008.
Since the end of 2005, Fugro has operated in the 2D and 3D market with seven to eight vessels, two of which are owned. Several chartered vessels will be replaced by the new vessels with larger data acquisition capacity more focused on the 3D. As a result of the fleet capacity increasing to approximately 10 vessels, in 2008 Fugro estimates the revenue from seismic work will be tripled compared to 2005.
“Through the third quarter 2006 we have seen a further strengthening in pricing and contractual terms for our marine contract business,” says Svein Rennemo, PGS president and CEO. The multi-client pre-funding levels achieved in marine were at a record high.
“The continued trend of improved demand and prices for seismic services confirm and strengthen our expectations of strong earnings through 2007. Early bidding and successful awards on record level prices for the 2007 North Sea season combined with awards of two large surveys, in the Gulf of Mexico and Qatar, have increased our backlog to the highest level ever.
“Overall, we expect prices and margins in 2007 to exceed 2006, and we already see work for 2007 being rolled over to 2008.”
For PGS, total marine revenues of $254.3 million were up $83.3 million (49%) from Q3 2005. In addition, contract acquisition revenues of $121.3 million were up $13.7 million (13%) from Q3 2005. Order backlog as of Sept. 30, 2006, totaled $635 million compared to $297 million at the same time last year, and totaled $405 million as of June 30, 2006. PGS says the backlog includes $147 million of committed pre-funding on scheduled multi-client projects.
On the vessel front, PGS exercised an option to build a second third-generation Ramform vessel for delivery in 2Q 2009. The first of its newbuilds is scheduled for delivery in 1Q 2008.
PGS expects to use approximately 20% of its active vessel time acquiring multi-client seismic in Q4 2006. The pre-funding level is expected to be reduced from the very high level seen in Q3 2006 as a new multi-client project in Gulf of Mexico was scheduled to kick off in Q4 2006.
TGS-Nopec Geophysical Co. has reported its backlog for new seismic work at $87.7 million as of Dec. 31, 2006. This was 63% higher than one quarter ago and 131% higher than the previous year’s backlog.
TGS has expanded its investment plan for 2007, securing three 3D seismic crews and six 2D seismic crews for all or part of 2007.
Gene Kliewer
Technology Editor
Dana Cain
IHS World Geophysical News
Seismic technologies evolve
Gene Kliewer
Technology Editor
A number of new technologies are in the works under the geosciences banner. Microseismic and passive seismic monitoring are under development, for instance. Sub-salt imaging remains a very active area for technological development. Rich azimuth seismic surveys, ocean-bottom cable, and alternative methods of gathering data all are finding their way into play to solve the difficulties of salt and other complex formations. The lines between exploration and production are blurring too. One example is borehole formation imaging. And permanent and repeatable surveys, 4D, are tools being brought into play to improve production over the life of a reservoir.
CSEM joining ranks of geophysical tools
Controlled source electromagnetic (CSEM) surveys are taking their place among the tools in common application for exploration offshore. CSEM compliments traditional seismic surveying in that it aims at detecting hydrocarbons rather than defining the underground structures. Combining seismic data with CSEM results hold the promise of better results than either one singly.
CSEM works by sending an electromagnetic field through the sea floor and measuring the resistivity of the formations encountered. Oil is not conductive, while salt water is. Consequently, formations with low or no hydrocarbons show small CSEM response, where larger deposits of hydrocarbons show higher resistivity and more response to CSEM. As an extra benefit, the process can help define the gas saturation level.
In application, CSEM is similar to offshore seismic surveying. A strong electromagnetic source is towed through the water while transmitting a low-frequency signal. Receivers on the seabed record the resulting signal at offsets up to 15 km (more than 9 mi). CSEM also is similar in that the usefulness of the results depends upon the pre-run planning. The quality of the results depends upon the quality of the data collected and also on the quality of the data analysis and interpretation.
Data are interpreted in one, two, or three dimensions using geophysical inversion and imaging. It provides cross-sections and volumes within subsurface structures.
A relatively recent improvement allows CSEM surveys to be conducted in shallower water. Until a joint-industry study combining electromagnetic survey company Offshore Hydrocarbon Mapping Plc., Total, BG, Shell, Eni, and Chevron with the UK Industry Technology Facilitator addressed the issue, CSEM was used in 300 m (984 ft) water depths or deeper to avoid interaction between the signals and the air in shallow water. Today, surveys in 70 m (230 ft) have been conducted successfully.
OHM surveys for Rockhopper off the Falkland Islands east of Argentina using CSEM technology will give more insight into the technology.
Seabed seismic surveys gaining
Once used mostly for surveys where streamers could not be run because of obstructions either on or below the surface, ocean-bottom seismic (OBS) surveying is gaining in use particularly for 4D applications to monitor reservoirs over time. OBS serves well for reservoir monitoring because of repeatability. The receivers do not move, so one variable is removed from the equation.
OBS also has an advantage in areas where vessel supply is tight. OBS surveys can be run using one vessel. The data is received at the ocean-bottom sensors and sent to a buoy for transmission to the vessel. A single vessel can serve as both a source vessel and a monitoring vessel. This saves the cost of a second vessel. Also, OBS does not require a dedicated vessel, making more types available for the surveying.
With multi-azimuth seismic surveying growing in popularity, OBS has yet another benefit. The OBS sensors are by their nature multi-azimuth sensors, so they can receive returns from wide angles.
