Eldon Ball • Houston
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Oceaneering increases spending
Oceaneering International, Inc. says it plans to expand its capital spending by an additional $18 million to build six work class ROVs at an estimated total cost of $13 million, and a Saturation (SAT) Diving System for approximately $5 million.
The three-man IMCA-compliant SAT system is being built in response to Gulf of Mexico market demand emanating from the extensive pipeline and platform damage caused by Hurricanes Ivan, Katrina, and Rita. The SAT system is expected to be deployed on either a chartered vessel or barge for service beginning in early 2006.
“We are making these organic growth investments in response to the escalation in market demand for the niche market products and services we provide,” said John Huff, CEO of Oceaneering.
“The SAT system will enable us to escalate our business participation in the repairs of damage caused by the three major GoM hurricanes in the past year. Such work is currently anticipated to last for the next few years,” he said. “Longer term, the aging GoM infrastructure and growing operator preference for state-of-the-art equipment supplied by companies committed to rigorous planning, execution, and safety standards should enable us to keep this system working at a high utilization rate.”
The incremental $18 million augments $40 million announced earlier in September. Addressing the apparent need to so quickly supplement the capital expansion program, Huff noted that five of the six ROVs have long-term work commitments, four to deliver construction services and the fifth to provide drill support offshore West Africa and Norway. The sixth vehicle is being built for use in the GoM spot construction market. The committed ROVs have expected contract commencement dates ranging from January through May of 2006.
“The six ROVs bring our 2005 announced new build and vehicle acquisitions to a total of 24 systems. We anticipate that ROV demand will continue growing through 2006 and intend to add more vehicles to our fleet as opportunities present themselves,” Huff said.
Petrofac gets Oudna contract
Lundin Netherlands BV has awarded Petrofac two further contracts for the development of the Oudna field, discovered by Shell Tunirex in 1978, located approximately 80 km off the coast of northeastern Tunisia in the eastern part of the Gulf of Hammamet.
This latest award is a continuation of the work carried out by Woking-based Petrofac Engineering between December 2004 and April this year, which included pre-project preparation and cost estimating for drilling, well testing, and full field development.
Petrofac Engineering is now undertaking an extended role incorporating engineering, procurement, and project management services during the drilling and facilities development phases between now and October 2006.
Petrofac Engineering is responsible for the engineering, procurement, and project management of all subsea hardware, and process, vessel and mooring system modifications required to convert the Ikdam FPSO vessel and install it for service on the Oudna field.
Petrofac Engineering is responsible for the engineering, procurement, and project management of all subsea hardware, and process, vessel and mooring system modifications required to convert theIkdamFPSO vessel and install it for service on the Oudna field. Petrofac is working in conjunction with Lundin Netherlands BV’s Production Operations team to maximize the benefits available from their experience in marginal oilfield production offshore Tunisia via theIkdamFPSO, currently installed on the Isis Field.
Petrofac will also monitor and report on all drilling-related project costs.
“This is a further development in our close working relationship with Lundin,” says Rob Jewkes, Petrofac Engineering’s managing director. “Last year Petrofac agreed to work with Lundin on projects over the longer term, using the skills we have available not just in Petrofac Engineering but in other divisions of the Group. Obviously, that is subject to satisfying their requirements on this project, but we’re confident that our flexible approach and commitment to employing innovative technical and commercial solutions mean that marginal fields such as Oudna can be developed with a high degree of confidence.”
Aker Kvaerner gets umbilical contract
Technip Offshore Norge has awarded Aker Kvaerner Subsea the contract for supply and manufacturing of steel tube umbilicals for the Fram Øst and Vilje subsea project in the Norwegian Sea. Technip Offshore Norge is the operator for Hydro’s development project.
The contract value for both projects is approximately Nkr103 million. Aker Kvaerner Subsea will deliver engineering, procurement, and construction of steel tube umbilicals and associated equipments. The Fram Øst umbilical, which will tie-back to the Troll C platform, is approximately 20 km in length, including both dynamic and static cross sections.
The Vilje umbilical is a static umbilical and will be tied-back to the riser base at the Marathon’sAlvheim FPSO.
Design, engineering, procurement, and project management will take place at the Lysaker office. Manufacturing will be done at the purpose-built umbilical plant in Moss. Delivery of the two umbilical projects is scheduled for May-June 2006.•
