World news
August 2015
In brief
August 2015
Oilfield Technology
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5
SBM Offshore releases H1 2015 earnings report - solid first
half, but industry still searching for new equilibrium
SBM Offshore has reported better than expected revenue in its H1 2015 earnings report. The
company has reported a healthy appetite for its projects, as evidenced by the 45% taken up by
joint venture partners in the Turritella project as well as the recently announced US$1.55 billion
of project financing for
Cidade de Saquarema
. Progress in discussions with Brazilian authorities
continues via the announced signing of a memorandum of understanding. The company also
reported that it continued to achieve over 99% uptime across its fleet while directional backlog
ended the period at US$20 billion. Full year directional revenue guidance has been increased to at
least US$2.6 billion.
Bruno Chabas, CEO of SBM Offshore, commented on the findings, “The current downturn is
having a profound impact on our industry, which is faced with the challenge to reinvent itself to
survive profitably in the current oil price environment. SBM Offshore is determined and confident
it can play its part based on its track record of technological innovation, its willingness to take
decisive action through its restructuring and backed by its strong lease and operate cash flow.”
The company’s total assets remained stable at US$11.3 billion as of 30 June, 2015 compared
to US$11.1 billion at year-end 2014. This reflects, amongst other factors, the lower investments in
FPSOs
Cidade de Maricá
,
Cidade de Saquarema
and
Turritella
during the period.
Cape secures Clair Ridge
contract with BP
Cape plc has extended its relationship with
BP after being awarded a new Clair Ridge
contract worth £9.8 million, with further
future phases added over the next
18 months.
Clair Ridge, 75 km west of Shetland, is
the second phase of development within
the Clair field. The contract is in support
of the hook-up and commissioning of
BP’s two new bridge-linked Clair Ridge
platforms. Effective from July 2015, the
contract will cover the provision of core
services including access, insulation,
coating, passive fire protection and
platform services for the Clair Ridge
hook-up work.
Joe Oatley, Chief Executive, Cape plc:
“We are delighted to be awarded this
further contract by BP. Cape has a
long-standing relationship with BP and
we look forward to continuing to work
with this important client to deliver our
critical industrial services to this prestigious
project”.
Russia
The Russian government has announced
that it had delivered ‘ample scientific data’
to the United Nations to back its claim to
more than 460 000 square miles of Arctic
territory and the wealth of energy, gems and
precious metals believed to lie within.
The Arctic is believed to hold as much as
20% of the world’s remaining undiscovered
oil and gas resources.
Saudi Arabia
According to recently published TechSci
Research report, the oilfield chemicals
market in Saudi Arabia is projected to
surpass US$960 million by 2020. Growth in
this market in Saudi Arabia is expected on
account of rising oil and gas production,
along with anticipated increase in the
exploration of shale gas deposits in the
country.
“Saudi Arabia is home to 100 major
oil and gas fields, of which eight oilfields
produce more than 50% of crude oil every
year. [The] oilfield chemicals market is highly
consolidated with major players collectively
accounting for more than two-thirds of the
market revenues in 2014”, said Mr. Karan
Chechi, Research Director, with TechSci
Research.
UK
According to
The Telegraph
, oil and gas
production from the UK North Sea is
expected to increase for the first time in
15 years, despite the ongoing reduced oil
price and recent job losses.
Industry body, UK Oil & Gas, is expecting
a rise of approximately 2.5% on last year’s
figures. The drive in production has been
attributed to two main factors: the use
of more efficient technologies by the oil
industry, and an improved investment
environment supported by reduced
production taxes on both old and new
fields.
Yolla-6 well begins
production at BassGas
AWE Limited, a 35% joint venture partner in
the BassGas project, has announced the Yolla-6
development well has been tied-in to export
facilities on the Yolla platform and production
from that well has commenced.
Well performance is being monitored to
achieve optimal co-mingling with production
from the existing Yolla-4 well. The early
unstabilised production rate from the BassGas
facilities has now increased to approximately
57 TJ/d following the addition of the Yolla-6 well.
AWE Managing Director, Bruce Clement
said that the development drilling phase of
the BassGas Mid Life Enhancement project
was nearing completion, “With Yolla-6 now on
production, and well performance in-line with
data acquired while drilling the well, we are
looking forward to additional production from
the Yolla-5 well, due to come online in early
August,”
The Yolla offshore platform is connected
by pipeline to the gas processing facility at
Lang Lang, Victoria. The platform lies 140 km
offshore from Kilcunda, Victoria.
