Posts Tagged ‘Deepwater’

Tata Steel Secures Deepwater Contract for Gulf of Mexico

Thursday, April 19th, 2012

Tata Steel has been awarded an eight-figure U.S. dollar contract to supply pipe for Enterprise Products Partners L.P.’s new crude oil export pipeline in the Gulf of Mexico’s Keathley Canyon area. 

The contract will see Tata Steel deliver more than 48,000 metric tons of steel pipe from its 42-inch mill in Hartlepool, England, for the Lucius Development Project, which has the capacity to produce in excess of 80,000 barrels of oil per day.

Tata Steel will provide 105 miles (169 kilometres) of 18-inch diameter line pipe. The pipe will be laid at water depths of up to 7,000 feet and is designed to meet the required specification for deepwater conditions.

“We have a long record of success with providing line pipe for deepwater projects,” said Deirdre Fox, director of sales and marketing at Tata Steel. “This is a significant contract for Tata Steel. This contract enhances our position in delivering line pipe for deepwater projects.”

 

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X-Stream: New Deepwater Pipeline Concept

Friday, January 20th, 2012

Bergen Subsea Cluster Poised for Business



The Hanseatic trading city of Bergen, on the edge of the Norwegian North Sea, has a long maritime tradition. From shipping to aquaculture to offshore oil and gas,

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Deepwater Horizon Lingers

Saturday, November 5th, 2011

It has been more than 16 months since the Deepwater Horizon incident on April 20, 2010 which resulted in the deaths of 11 and injuries to 17 men working on the platform and the discharge of approximately five million barrels of oil.  The well was finally capped on July 15, 2010 yet the Joint Coast Guard and Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE) Investigation final report (Joint Investigation) has not been completed and released to the public.  In addition, Congress continues to wait until the final results are released to make its own assessment of what legislation should ultimately be enacted and the complex litigation will be with us for years.


Investigations & Legislation

The Presidential National Commission (National Commission) was established on May 21, 2010 and its final 380-page report was released as scheduled on January 11, 2011 finding “systemic” problems across the industry, condemning industry in its failure to prepare adequate plans to respond to a major incident, and pointing the finger at the Administration for grossly inadequate federal oversight.  As discussed below, however, Congress has not taken any action as a result of this report pending the release of the Joint Investigation report.  When that occurs, there will be much interest from federal agencies, the public, and Congress to compare the National Commission final report and the Joint Investigation before determining future agency actions and legislation. 

Regrettably, however, there has been an extended delay and ensuing confusion related to the Joint Investigation.  Although the convening order for the Joint Investigation mandated the issuance of a single report, the Coast Guard chose to publish a “preliminary” report on April 22, 2011 close to the one-year anniversary of the casualty addressing issues under its jurisdiction.  The problem with this report was that it was not “final agency action” by the Commandant.  Indeed, it is highly unusual for the Coast Guard to release such a report to the public before finalization by the Commandant. 

Furthermore, the Joint Investigation final results, both from BOEMRE and the Coast Guard, were scheduled to be published on July 27, 2011, however, the Joint Investigation report remains pending as of the date of the writing of this article.  After a few days of silence following the missed deadline, the agencies noted on the Joint Investigation website that the agencies were working diligently to complete the report and in order to ensure that all evidence is properly weighed and considered, it was taking additional time to finalize the report.  In the meantime, the Republic of the Marshall Islands, the flag state of the Deepwater Horizon, released its findings just before the Labor Day holiday. 

While the release of the National Commission’s report earlier this year rekindled interest in Congress, it is now clear that Congress intends to wait until the release of the Joint Investigation report before seriously considering legislative action.  In reality, the National Commission was under a tight deadline and its final report failed to address a number of key matters including why workers on the rig made the decisions they made before the explosion and why the blow out preventer (BOP) failed because tests are not yet completed.  It is noteworthy in this regard, that Congressman LoBiondo and Congressman Mica recently co-sponsored and introduced the Coast Guard and Maritime Transportation Act of 2011 (the bill typically used for enactment of maritime legislation) on September 2, 2011 and there is no Deepwater Horizon spill legislation included in this bill.  This is indicative that Congress is waiting for the release of the Joint Investigation report before introducing a consolidated spill bill this year. 

In addition, although no longer in the news, it must be kept in mind that the Department of Justice (DOJ) criminal investigation continues.  DOJ will review the Joint Investigation report and likely move forward with its grand jury investigation as it will be able to review the findings in the draft report to confirm that its prosecution theories will not conflict with the investigative findings.  DOJ should start issuing subpoenas to individuals sometime after they review the report and then move forward with criminal charges against the companies it decides to target sometime in the third or fourth quarters of 2011.

However, it should be kept in mind, that much of the troublesome Deepwater Horizon spill legislation that was under consideration last year, including H.R. 3534, the Consolidated Land, Energy, and Aquatic Resources Act of 2009 (CLEAR Act), which the House passed last year, was reintroduced early this year.  Of specific note, with regard to the Clear Act and the National Commission Report, Ed Markey, the Democratic Congressman from Massachusetts, introduced H.R. 501 on January 26, 2011 (Implementing the Recommendations of the BP Oil Spill Commission Act of 2011).  H.R. 501 includes the troublesome provisions of the CLEAR Act. 


Litigation

With regard to litigation, the spill spawned hundreds of lawsuits.  Following the filing of hundreds of lawsuits, it was decided to consolidate all of the complaints under a special federal legal procedure designed to speed the process of handling complex cases such as air disaster litigation or complex product liability suits known as multi-district litigation (MDL).  The purpose of using the MDL procedure is to efficiently process cases that could involve an extremely large number of plaintiffs in many different federal courts which all share common issues.  The Deepwater Horizon litigation was consolidated in the Eastern District Court of Louisiana before Judge Barbier.  However, the reality is that there are many different defendants with different interests that will prolong this case for years. 

A part of this litigation involves action by DOJ to collect civil penalties.  DOJ can seek penalties of $40,000 per day or $1,100 per barrel of oil discharged for negligence.  However, if gross negligence is found BP is subject to a civil penalty that can be awarded by the court up to $4,300 per barrel of oil.  Information has been released on two reports funded by the Administration which indicate that between 4.9 and 5 million barrels of oil were spilled.  Based on the 4.9 million amount, the maximum penalty could be $5.4 billion and if there is a determination of gross negligence the fine could be $21 billion.


Conclusion

Congress will indeed revisit Deepwater Horizon issues this year and next year during the 112th Congress.  While all legislation pending when the 111th Congress adjourned has expired, much of it has been reintroduced already in the early days of this new Congress. 

In the shadow of the budgetary, economic, and war issues that have dominated the attention of Congress in the early days of this session, hearings have been held and numerous bills introduced to address oil spill liability, preparedness, and response in the aftermath of the Deepwater Horizon incident.  The key issues will most likely continue to be changes in liability and the possibility of enacting the so-called “Americanization” and Jones Act provisions that will affect all offshore activities and operations.  Of course, other changes could be advanced and a watchful eye is needed to avoid undue regulatory burdens and unintended consequences. 

The reports by the National Commission, the Joint Investigation team, and the Republic of the Marshall Islands will most certainly be considered in advancing any legislation.  Urgent calls for Congress to act, such as heard recently at the Pacific States/British Columbia Oil Spill Task Force annual meeting, continue from many different segments, including states, environmental interests, industry groups, and individual members of Congress.  In conclusion, we do not expect Congressional interest to diminish, however, it is difficult to predict exactly when Congress will actually act on spill legislation given the other Congressional priorities it faces as it returns from the summer recess.

 

(As published in the October 2011 edition of Maritime Reporter + Engineering News – www.marinelink.com)

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Keppel Completes Saipem Ultra Deepwater Rig

Monday, August 1st, 2011

Keppel FELS Limited (Keppel FELS) is on track to deliver Scarabeo 9, a 6th generation ultra-deepwater semisubmersible drilling rig, to Saipem S.p.A (Saipem) on time and with no lost time incidents. 
A significant part of Keppel FELS’ workscope on Scarabeo 9 involved the completion and commissioning of marine and drilling systems onboard.
The rig was named by Lady Sponsor, Mrs Anna Tatka, spouse of Mr Pietro Franco Tali, CEO of Saipem.
Speaking at the ceremony, Mr Tali said, “With Keppel’s proven track record, we were confident of receiving a rig of the highest quality delivered on time and in a safe manner. This sixth generation rig will be an important addition to our fleet as we expand our foothold to be one of the best balanced turnkey operators in the offshore and marine industry.”
The Frigstad D90 semisubmersible rig is equipped with a Dynamic Positioning 3 system and will be capable of operating in water depths of up to 3,600 meters.
Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, added, “In completing this complex rig, we leveraged our in-house engineering expertise, proven project management and execution capabilities to ensure quick turnaround times in providing value added solutions.
“We thank Saipem for their trust in us and are glad to be able to demonstrate our capabilities with this safe and on time delivery. This extends to all our projects for Saipem, including the completion of Castorone at Keppel Shipyard. We look forward to supporting Saipem as they grow their fleet of high specification products for different parts of the world.”
Keppel’s current projects for Saipem include the completion of a newbuild pipe laying vessel, Castorone, which is being jointly undertaken by Keppel Shipyard and Keppel Singmarine.
Saipem has also previously sent the Saipem 7000, a semisubmersible crane and pipelaying vessel, for drydocking at the Keppel Verolme shipyard in the Netherlands in 2007. More recently, Keppel Verolme completed the repair and modification of the semisubmersible pipelay vessel, Castoro Sei.

 

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WHOI Investigates Deepwater Horizon Oil Spill

Tuesday, July 19th, 2011

Taking another major step in sleuthing the 2010 Deepwater Horizon oil spill, a research team led by the Woods Hole Oceanographic Institution (WHOI) has determined what chemicals were contained in a deep, hydrocarbon-containing plume at least 22 miles long that WHOI scientists mapped and sampled last summer in the Gulf of Mexico, a residue of the Deepwater Horizon oil spill. Moreover, they have taken a big step in explaining why some chemicals, but not others, made their way into the plume.


The findings, published this week in the online edition of the Proceedings of the National Academy of Sciences, “help explain and shed light on the plume formation and verify much of what we thought about the plume’s composition,” said WHOI chemist Christopher Reddy, lead author of the study. The data “provide compelling evidence” that the oil component of the plume sampled in June 2010 essentially comprised benzene, toluene, ethybenzene, and total xylenes—together, called BTEX—at concentrations of about 70 micrograms per liter, the researchers reported.


The 70 micrograms per liter in the plume, were “significantly higher than background,” Reddy said. “We do not know with certainty the adverse effects it might cause on undersea life.”


WHOI Senior Scientist Judith McDowell said that acute toxicity levels of BTEX are in the range of 5 to 50 milligrams per liter (mg/L) for aquatic organisms—100 to 1,000 times greater than that observed in the plume. Sublethal effects, including neurological impairment, are observed at lower levels, she said.  “In most instances the BTEX compounds are volatilized very quickly such that exposure duration is very short,” McDowell said.  “The persistence of BTEX at depth poses an interesting question as to the potential effects of these compounds on mid-water organisms.”


A critical component of the study was a one-of-a-kind fluid sample the team collected directly from the broken riser at the Macondo well. To accomplish this, the team used an isobaric gas-tight sampler, a unique piece of equipment developed by WHOI geochemist Jeff Seewald and his colleagues and intended for use collecting fluids from deep-sea hydrothermal vents.


With the gas-tight sampler and other necessary equipment, the lead scientists were shuttled from their active research vessel to a smaller boat and brought to the Ocean Intervention III, operating above the Macondo well. They were then given 12 hours — working with many unknowns — to do something never done before. Using an oil industry remotely operated vehicle, they maneuvered the gas-tight sampler to the source of the spill to capture an “end-member” sample of fluid as it exited the riser pipe. No other such sample exists.  By analyzing this sample, the scientists were able to determine what was in fluid spewing from the Macondo well before nature had a chance to change it and the exact ratio of gas and oil in the fluid.


“Getting this sample was probably the most dramatic and thrilling thing I have done in my life,” Reddy said.


Using petroleum industry terms, they found a gas-to-oil ratio (GOR) of 1,600 cubic feet of gas per barrel of oil. This value is smaller than other proposed values, Reddy said, suggesting “more oil may have been coming out of the well than other people calculated.”


Analyzing samples from the Macondo well and those they collected from the plume in June 2010 aboard the research vessel Endeavor, the researchers found that BTEX represented about 2 percent of the oil that came out of the well, but “nearly 100 percent of what was in the plume,” Reddy said. “A small, selective group of compounds took a right-hand turn” after exiting the well and formed the 3,000-foot-deep plume, he added. This raises a number of questions, he said, including, “Why are those chemical there in those concentrations? Why are they so abundant in the water?”


The answers have to do with the tendency of those chemicals that “like” to dissolve in water to migrate to the plume, Reddy said. Unlike other substances emanating from the well that degrade or evaporate in the water or at the surface, the compounds in the plume showed little evidence of biodegrading when the researchers examined the plume in June 2010. “[O]il and gas experienced a significant residence time in the water column with no opportunity for the release of volatile species into the atmosphere,” the researchers reported. “Hence water-soluble petroleum compounds dissolved into the water column to a much greater extent than is typically observed for surface spills.”


“We needed to have an ‘end-member’ sample, so that we could compare how nature affected the hydrocarbons as they left the riser pipe,” he said. “So this story is really about, ‘From pipe to plume: what chemicals got off the elevator to the surface and migrated to the plume.’”


The findings have “direct implications for the ecotoxicological impact of plumes,” Reddy said. “Now that we know the compounds were there for a certain time, we need to look at what that would mean to ocean life” Reddy said. “This paves the way to look at any environmental effects,” he said.


The study was funded by the National Science Foundation (NSF) and the U.S. Coast Guard.


The key to locating and mapping of the plume and the collection of samples from the plume was the use of the mass spectrometer TETHYS integrated into the autonomous underwater vehicle Sentry. Developed by Richard Camilli of WHOI’s Deep Submergence Laboratory, the mass spectrometer is capable of identifying minute quantities of petroleum and other chemical compounds in seawater instantly.


During the June 2010 expedition, Sentry/TETHYS, crisscrossed the plume boundaries continuously 19 times to help determine the trapped plume’s size, shape, and composition. This knowledge of the plume structure guided the team in collecting physical samples using a traditional oceanographic tool, a cable-lowered water sampling system that measures conductivity, temperature, and depth (CTD). The CTD also was instrumented with a TETHYS the mass spectrometer to positively identify areas containing petroleum hydrocarbons.


Guided by the Sentry/TETHYS system, the team collected about 100 samples—a painstaking and rigorous process undertaken under strict natural resource damage assessment (NRDA) protocol and supervision. Since TETHYS is limited in its ability to analyze petroleum hydrocarbons, Reddy said, the best samples were brought back to the land-based laboratories for more sophisticated analyses, which included the help of NOAA.


Dana Yoerger, a WHOI senior scientist and a co-principal investigator on last year’s cruise, added, “We achieved our results because we had a unique combination of scientific and technological skills.”


The current results validated the findings reported with TETHYS, Reddy said.


“Chris’s work demonstrates why federally funded oceanographic research is important to society,” Camilli said. “This paper exemplifies the nearly century-old vision of the National Academy of Sciences in recommending WHOI’s founding. Its publication in PNAS brings the vision full circle.”


Other WHOI researchers who joined Reddy and Camilli in the study were Sean P. Sylva, Karin L. Lamkau, Robert K. Nelson, Catherine A. Carmichael, Cameron P. McIntyre, Judith Fenwick, and Benjamin Van Mooy. Also participating in the study were J. Samuel Arey of the Swiss Federal Institute of Technology at Lausanne and G. Todd Ventura of Oxford University.

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Buckskin Prospect Gets U.S. Deepwater Drilling Permit

Wednesday, May 25th, 2011

Maersk Oil is participating in a new deepwater well in the U.S. Gulf of Mexico after operator Chevron received a drilling permit from the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE).


The permit marks the restart of the drilling campaigns Maersk Oil has been a part of in the U.S. Gulf of Mexico after deepwater activities were suspended last year as a consequence of the Deepwater Horizon accident.


“We are very pleased that this permit has been issued as it will allow us to move forward with appraisal activities on the exciting Buckskin prospect,” said Bruce Laws, President at Maersk Oil in the U.S.


“The U.S. Gulf of Mexico remains a world class region for exploration and production and we look forward to continuing our work there with our partners.”


The Buckskin appraisal well is located in the Keathley Canyon in Block 785, offshore Louisiana, at water depth of 6,540 feet. It is being drilled 8 kilometres from the discovery well that encountered oil in 2008.


Drilling began on 16th May, 2011 and the planned total depth is 29,400 feet. Drilling will last some 136 days.


Chevron is operator of Buckskin, holding a 55% interest with Maersk Oil (20%), Repsol (12.5%) and Samson (12.5%) as co-owners.

 

Source: Maersk Oil

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BOEMRE Approves GOM Deepwater Exploration Plan

Saturday, May 14th, 2011

UK Government Backs Marine Current Turbines Application



An application from Marine Current Turbines, the UK tidal energy developer, to secure money from the European Union’s New Entrant Reserve (NER) scheme has

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Deepwater Horizon Joint Investigation Preliminary Report: USCG Jurisdiction

Sunday, April 24th, 2011

Diamond Offshore Announces First Quarter 2011 Results



HOUSTON, Apr 21, 2011 (BUSINESS WIRE) — Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the first quarter of 2011 of $250.6 million, or $1.

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Obama’s Statement, One-Year Anniversary of the Deepwater Horizon Spill

Friday, April 22nd, 2011

STRUT Marine Acquires Paul Pfaff Enterprises



Huntington Beach, CA—April 18, 2011—STRUT Marine, a full-service Marine Facility for offshore high-performance boats in Southern California, has announced

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CSB Still Investigating Deepwater Horizon Spill

Thursday, April 21st, 2011

STRUT Marine Acquires Paul Pfaff Enterprises



Huntington Beach, CA—April 18, 2011—STRUT Marine, a full-service Marine Facility for offshore high-performance boats in Southern California, has announced

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