Asian Oil and Gas-January-February 2013

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JANUARY/FEBRUARY 2013
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Contents
14
January/February 2013
8
REGIONAL UPDATES
Briefs
Asia Pacific oil and gas news and views.
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8 A robust outlook
Although some yards saw a drop in profit this past year, the overall view of the industry is one of optimism for growth in 2013. John Mueller reports. SEISMIC
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12 Multi-client work lines up

John Mueller looks at 2D and 3D seismic surveys in Australia and Indonesia, EM data acquisition in a number of Asian localities, and 3D seismic data gathering in South Korea. GEOGRAPHICAL FOCUS
ation Ad The th ministr ation) ick encount ness, in meter ered at s, of ne the Ad : Petron ong Ke t hydrocarbon as) cil Wests 1 well in Sara wak.
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ASIAN
OIL & GA
18
14 Natural gas reserves boost

As Australia grapples with chronic oil production decline in the face of rising imports, the buoyant gas sector offers the prospect of rising revenue from LNG exports. John Mueller reports. SOLUTIONS
18 Products & Technology

A review of new products and technologies. ACTIVITY
20 Company news & Contracts

A roundup of the latest news from companies in the region.
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january/february 2013
regional update
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Asian Oil & Gas Atlantic Communications LLC, 1635 W Alabama, Houston, Texas 77006-4101, USA Tel: +1 713 529 1616. subscription@aog-mag.com Asia Pacific Editor: John Mueller US tel: (+1) 802 229 5194 jrreports@hotmail.com Asia Pacific correspondent: June Jonet Singapore tel: (+65) 811 26 884 junejonet@thesilverback.com Design & layout: Ian McInnes Publisher: Brion Palmer bpalmer@atcomedia.com Advertising representatives AUSTRALIA: June Jonet junejonet@thesilverback.com INDONESIA: Tuti Sayogol Tel: (+62) 21 582-5503 ITALY: Fabio Potesta Tel: (+39) 10 570 4948 JAPAN: Hajime Saito Tel: (+81) 3 3661-8373 MALAYSIA: Koh Earn Soo, Tel: (+603) 6280 4136 kes@tm.net.my NETHERLANDS/BELGIUM/ GERMANY: Arthur Schavemaker, Tel: (+31) 547 275005 arthur@kenter.nl SCANDINAVIA: Brenda Homewood Tel: (+44) 1732 459683 Brenda@aladltd.co.uk SINGAPORE: June Jonet junejonet@thesilverback.com UK/FRANCE: Mike Cramp Tel: (+44) 1732 459683 mike@aladltd.co.uk AMERICAS: Bill Krull Tel: (+1) 713 535 1521/874 2212 bkrull@oilonlime.com
Update
NEW ZEALAND New Zealand Energy Corporation (NZEC) has placed its fifth oil discovery onshore the Taranaki Basin on production, the Waitapu-2 well, drilled to a total measured depth of 2085m and initially test flowed at 325b/d and 800mmcf/d of natural gas. NZEC, formed in 2010 with 214,000 acres held in joint venture with L&M Energy in the onshore Taranaki Basin, made its first commercial discovery in 2011 in this North Island region. On completion of an ongoing eight-well program, the company expects overall production to reach 3000boe/d by the end of 1Q. In its 100%-held, 2.06 million acre onshore East Coast Basin asset, NZEC is investigating two oil shale formations. CHINA BP China has agreed to the sale of its 34.3% interest in the Yacheng gas field in the South China Sea offshore Hainan Island to KUFPEC for $308 million cash, the deal expected to conclude in 2H 2013. Yacheng, which started commercial production in 1996, was operated by BP until 2004, and then by its major project partner CNOOC. The field supplies natural gas via a 780km pipeline to Hong Kong for power generation. Additional natural gas, condensate, and LPG are sold to customers on Hainan Island. The Yacheng partnership will consist of CNOOC (51%) and KUFPEC (49%). MALAYSIA Shell and partners have taken a final investment decision to develop the deepwater Malikai oil field, offshore Sabah, east Malaysia, which is expected to start up in AUSTRALIA Offshore Western Australia, the Tallaganda structure portion within permit WA-351-P is estimated to have a gross recoverable gas resource of 500bcf of gas including 222bcf of P50 contingent resource and 278bcf of P50 prospective resource. Tallaganda-1, drilled in 2Q 2012, confirmed a gas discovery in WA-351-P. The Tallaganda structure straddles adjacent WA-335-P to the south, both permits operated by BHP Billiton Petroleum. The southern portion of the structure extending into WA-335-P has yet to be drilled. Geological assessment of the discovery and remaining block potential is underway with no plans for further drilling in WA-351-P this year. 2016/17. The field is part of the G block PSC awarded by Petronas in 1995. The Malikai development in water 500m deep will involve 17 wells drilled from a 23,500t tension leg platform (TLP) production facility, for which the construction contract has reportedly been awarded.
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regional update
MALAYSIA Petronas has discovered oil and gas with Adong Kecil West-1 in block SK333, the first onshore Sarawak, east Malaysia, since 1989. Drilled to a depth of 3170m, 20km northeast of Miri, by operator JX Nippon Oil & Gas Exploration and joint venture partner of Petronas Carigali, the well intercepted a total hydrocarbon thickness of about 350m. Drill stem tests flowed at about 440b/d of oil and 11.5mmcf/d of gas. AUSTRALIA ExxonMobil and BHP Billiton are to jointly spend over US$1 billion to construct a gas conditioning plant at their co-owned Longford facility, in Gippsland, Victoria, southeastern Australia. BHPs share is US$520 million. The conditioning plant, able to produce up to 400mmcf/d, will receive gas feed from the Kipper, Tune, and Turrum fields in the Bass Strait, a $4 billion project which the two companies and Santos are developing. BHP Billiton and Esso Australia Resources (operator) each have a 50% interest in the Gippsland Basin Joint Venture. Construction of the plant is expected to commence in 3Q 2016. NEW ZEALAND Petrobras has surrendered its 12,330km2 petroleum exploration permit PEP 52707 in the Raukumara Basin, off the east coast of North Island, reportedly in part as a result of prioritizing its worldwide oil and gas portfolio. Since award of the block in 1Q 2010, Petrobras has acquired and processed 2D seismic over the license which is located in waters 1000m deep, a relatively unexplored area where no commercial activity had previously been undertaken. CHINA Sunwing Zitong Energy, a subsidiary of Ivanhoe Energy, has completed transfer of its 90% participating interest in the contract for exploration, development, and production in the Zitong block, to Shell China Exploration & Production for $105 million. Mitsubishi Gas Chemical holds the remaining 10%. The 2670km2 Zitong gas exploration block is located in Sichuan Province, south central China. Sunwing Energy made gas discoveries with exploration wells Yixin-2 and Zitong-1 in 2010 and submitted a development plan to CNPC.
MALAYSIA RHP (Mukah), a subsidiary of Singapore-headquartered, oil & gas E&P company RH Petrogas (RHP), has secured the PSC rights and operatorship of block SK331 onshore Sarawak in a respective 80:20 joint venture with Petronas. The PSC commitment entails a three-year work program inclusive of seismic acquisition and reprocessing, exploration drilling, and geological/geophysical evaluation. The block covers about 11,600km2, which includes the area where the Bintulu LNG terminal is located, and is the onshore geological extension of the Balingian Basin. PHILIPPINES Galoc phase THAILAND Salamander Energy has achieved first crude oil from the Bualuang Bravo platform, produced from its Bualuang field in block B8/38, located in the west-central sector of the Gulf of Thailand. The first producing Bravo platform well, BB-04H horizontal, drilled and completed with the jackup drilling rig Atwood Mako, is anticipated to average 1500b/d, followed by a second development well from the Bravo platform, BB-10H. The Bualuang field, averaging around 7200b/d in 2012, is currently producing over 8300b/d. As the development program progresses with the drilling of an additional 15 wells, the production rate from Bualuang in 2013 is projected to be within a range of 11-14,000b/d. TAJIKISTAN Total has signed an accord with Kulob Petroleum, a Tethys Petroleum subsidiary, and CNODC, a subsidiary of CNPC of China, to farm into the Bokhtar PSC in Tajikistan, resulting in both Total and CNODC holding a 33.335% interest, while Kulob retains 33.33%. The huge 35,000km2 Bokhtar PSC covers the eastern end of the prolific Amu Darya Basin where a number of giant gas discoveries have been made in Jurassic carbonate reservoirs. Tethys has acquired seismic data to assist in identifying the location of the first exploration well by end-2014. In the Gustavson Associates-authored Tajik Resource Report, a total gross mean unrisked recoverable prospective resource of 27.5 billion barrels of oil equivalent is estimated across the Bokhtar PSC.
5
two development in SC14C is progressing with Diamond Offshores semisubmersible drilling rig Ocean Patriot expected to begin operations in 2Q 2013. Located offshore the northwest coast of Palawan Island in 290m water depth, two subsea wells are to be drilled, completed, and tied into existing infrastructure that includes the FPSO Rubicon Intrepid, with a view to more than doubling output from current levels of around 6000b/d. Other contractor awards include Skandia Hercules for offshore construction, and DOF Subsea Asia Pacific and Dril-Quip Asia Pacific for subsea engineering, wellheads, and trees. UAE Dana Gas has signed agreements with the governments of Sharjah and Ajman to develop and operate the shared Zora gas field located 40km offshore. Work includes drilling horizontal wells and installation of an offshore gas processing platform that will receive gas through a 25km offshore pipeline.
regional update
n indonesia Salamander Energy has plugged and abandoned the South Kecapi-1 DIR/ST (SK-1) exploration well in the Bontang PSC as an oil and gas discovery, the first well in a multi-well program in the North Kutei Basin, offshore East Kalimantan. Drilled to total depth of 6601ft by semisub n kazakhstan Dunga phase two production has delivered first oil. Maersk Oils $1 billion project involving the onshore Dunga oil field, located in the 283km2 Dunga block borders the shore of the Caspian Sea in Kazakhstan. Over the next three years, four drilling rigs at Dunga will complete a new well every three weeks reaching a total of 198 wells by 2015 when output is expected to be 30,000b/d. n australia Inpex has made arrangements with over 30 credit agencies and commercial banks for US$20 billion in project finance loans for the Ichthys LNG project in the Browse Basin, offshore Western Australia. Japan Bank for International Cooperation is contributing $5 billion, the largest portion. Ocean General, SK-1 encountered a combined 131ft of net oil and gas pay in high-quality, stacked channel sandstones. A drill stem test within one primary channel sand target flowed light oil at 6000b/d and 8mmscf/d of gas. The semi will next drill the North Kendang-1 exploration well in the South East Sangatta PSC, also off the east coast of Kalimantan.
n india Hardy Oil & Gas has obtained a favorable judgment from the government of India regarding its Ganesha-1 non-associated gas discovery, located in exploration block CY-OS/2 offshore the southeast coast of India, whereby appraisal activities can now be undertaken. Formerly, in 2009, the Indian regulator DGH, which had classified the find an oil discovery, declared that the appraisal period for the 1Q 2007 Fan A-1 exploration well (Ganesha) had lapsed. CY-OS/2, covering 859km2 in the northern part of the Cauvery Basin offshore Pondicherry, comprises two retained areas. The northern area includes the Fan A-1 discovery and the southern area lies immediately adjacent to the HEPI operated PY-3 field. n china Chevron China Energy has entered into PSCs with China National Offshore Oil Corporation (CNOOC) whereby it will hold 100% interest and operatorship of shallow water
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regional update
exploration blocks 15/10 and 15/28 in the Pearl River Mouth Basin. The two South China Sea permits total 5782km2 in area. n philippines Forum Energy has been granted a two-year extension to complete the second exploratory sub-phase of 8800km2 SC72, offshore Palawan Island the deadline for the drilling of two appraisal wells is now 14 August 2015. An ongoing territorial dispute with China over the area of SC72 has delayed exploration. Results from 640km2 3D seismic survey over SC72 indicate a mean volume of 3.4tcf of gas-in-place. n vietnam Eni and PetroVietnam have entered into a memorandum of understanding for the development of business opportunities in Vietnam and abroad, signed by Do Van Hau, president and CEO of PetroVietnam, and Paolo Scaroni, CEO of Eni. The memorandum of understanding provides PetroVietnam with the opportunity to expand its international activities and for Eni to
enter new blocks in Vietnam. Eni will offer PetroVietnam the opportunity to acquire shares in international areas and blocks where it owns the rights to exploration and development. n pakistan Eni has signed an agreement with OGDCL for a 25% interest and operatorship of 7500km2 exploration block G in the Indus Basin, an ultra-deepwater frontier prospect. Exploration activities will initially comprise a multi-disciplinary study. Block G participants include state companies OGDCL (Oil & Gas Development Company), PPL (Pakistan Petroleum), and United Energy Pakistan. n australia PetroChina has agreed to pay BHP Billiton US$1.63 billion for its holding in Woodside Petroleums proposed Browse LNG Project in Western Australia, thereby acquiring an 8.33% stake in the East Browse joint venture and a 20% share in the West Browse Project. n timor sea Oilex has received a one-year contract extension for the JPDA 06-103 PSC on condition that a rig is secured by 15 June to drill the Bazartete Prospect as the third commitment well. Oilex has assessed the Bazartete Prospect to have a potential mean prospective oil resource of around 71mmbo on an unrisked 100% basis.
Shipyards
A robust outlook
The recently delivered FPSO Cidade de Sao Paulo.
Although some yards saw a drop in profit this past year, the overall view of the industry is one of optimism for growth in 2013. John Mueller reports.
n Singapore, the outlook for the offshore and marine sector is that it will remain resilient amid the global economic downturn, buoyed
of Favored Customer Contractor (FCC) to Sembawang Shipyard by Royal Caribbean Cruises for the provision of ship repair, revitalization, upgrading, and related marine services, for its fleet of 41 cruise ships. However, Singapore-based Keppel Offshore & Marine (Keppel O&M), reputedly the largest rig builder worldwide, reported a full-year net profit of $763 million, down 12% from the previous year. Competition from rival Chinese and South Korean builders eroded its pricing power. For others, not all is smooth sailing. Triyards Holdings, with two yards in Vietnam and one in Houston, US, which was spun off by its 67% Singapore-based stakeholder Ezra Holdings for listing in 2012, has experienced a drop in profits. Although company revenue was up 5% to $53.3 million from a year earlier, operational profit declined 30% to $8 million, due in part to increased administrative expenses and change in project composition.
by continued growth in Asia. Turnover in the sector was US$13.5 billion one year ago, as compared to $13.3 billion in 2011. Projections indicate that from 2011 to 2016, the demand for energy in Asia will drive Asian companies to invest about $29 billion in deepsea exploration, drilling, and production, more than double the $12 billion spent 2007-11. Facilities expansion is ongoing. Sembcorp Marine has negotiated a 30+30 year lease on a 34.5ha site in western Singapore, the second phase of its 206ha Integrated New Yard Facility. This phase two new yard is to be developed over four to five years, helping position Sembcorp for sustainable growth and long-term competitiveness. Another indication of the vigorous marine construction sector in Singapore is the award
shipyards
Sembcorp Marine also encountered a serious problem with the sudden tilting of the newbuild jackup drilling rig Noble Regina Allen at its Singapore yard, that resulted in 89 workers being injured. Preliminary findings indicate failure of a braking mechanism on one of the legs. Jackups maintain their preeminence as the most constructed offshore drilling rig, with an abundance of newbuild orders and deliveries. The demand for semisubmersibles and drillships continues, driven by exploration and production activities in ultra-deepwater. According to Global Business Intelligence, this is particularly true for those rigs able to drill in water depths of up to 12,000ft. Floating production has taken a step forward with a heads of agreement (HoA) between Shell and Technip Samsung Consortium (TSC), enhancing collaboration on the design, engineering, procurement, construction, and installation of future innovative, floating liquefied natural gas (FLNG) projects. This is another instance of a shift in the shipbuilding sector away from Singapore and Malaysia, with Chinese shipyards emerging as strong floating production vessel competitors. A number of large projects are being undertaken by yards in Malaysia, Singapore, the Philippines, and Brazil, involving tension leg platforms and topsides. The health of the support vessel market is exemplified by Nam Cheong, reportedly the largest offshore support vessel (OSV) builder in
Malaysia. The company sold a record 21 vessels in 2012. Nam Cheong, which has a yard in Miri, Sarawak, east Malaysia, and outsources fabrication to yards in China, has proposed raising $38 million through a share offering. The company expects an expansion in shipbuilding by about 20% to 24 vessels.
Jackups
Seadrill has ordered two F&G JU2000E design jackup drilling rigs from Dalian Shipbuilding Industry Offshore in China. Delivery is in 1H 2015 at a combined cost of $460 million. Seadrill has options for two more of these 30,000ft drilling depth, 400ft water-depth rated rigs from the yard for respective completions in 3Q and 4Q of 2015. Pemex Exploracion y Produccion, a subsidiary of Petroleos Mexicanos (Pemex), has contracted Keppel Fels for two KFels-B Class jackup drilling rigs, to be constructed at Keppel AmFels in Texas for a combined total of $420 million. Both units are scheduled for delivery in 1Q 2015. Two other jackup drilling rigs bound for Mexico are also being built at Keppel AmFels, Papaloapan for Perforadora Central and Coatzacoalcos. The shipyard will deliver the jackups in 1Q 2013 and 1Q 2014, respectively. Integradora de Servicios Petroleros Oro Negro (Oro Negro) of Mexico is to have PPL Shipyard, a Sembcorp Marine subsidiary, build two PPL Pacific Class 400 jackup drilling rigs at its yard in Singapore on turnkey contracts totaling $434 million. Slated for delivery in 4Q 2013 and 1Q 2014, the rigs will be able to drill to 30,000ft in water up to 400ft in depth. Oro Negro has also received the KFels Class B jackup drilling rig Primus, the first of two jackups by Keppel Fels for Oro Negro after the company purchased them from Jasper Investments. Transocean has held naming ceremonies for two Super B Class Bigfoot jackup rigs, Transocean Siam Driller and Transocean Andaman, constructed by KFels in Singapore. Both rigs are contracted to Chevron for work off Thailand. The Super B Class has 35,000ft drilling depth capability and is equipped with larger spud cans, and offline pipe handling. Tianjin Haiheng Shipbuilding & Offshore Engineering had first steel cut for two newbuild, Rickmers-Linie, a Germanybased specialist in sea transport of cargo, is to take delivery of two 20,000dwt multi-purpose vessels in 2015, built at Hudong-Zhonghua Shipbuilding in China. Each 170m long MPSV will be equipped with one 120t and two 450t cranes, enabling a single 900t lift. Hydro Marine Services, a McDermott International subsidiary, is to have Keppel Singmarine, a unit of Keppel O&M, construct a deepwater pipelay (S-Lay) vessel suited to operations in water depths of up to 10,000ft, tentatively named Derrick Lay Vessel 2000 (DLV2000) with completion by mid-2015. Toisa has contracted Hyundai Heavy Industries (HHI) of Korea to construct a multipurpose offshore construction vessel (MOCV), a customized version of the Ulstein Deepwater Enabler design. The 150m-long DP3 craft (pictured above) will be able to undertake ultra-deepwater installation and construction, flexible lay, pipelay, cable lay, and topside construction support. It will be managed and operated by Sealion Shipping.
Pacific Class 400 jackup.

jackup drilling rigs. China Merchants Heavy

9
shipyards
l Subsea 7 has signed a contract to have a dive support vessel constructed according to the new Wrtsil VS 4725 DSV design. It is to be delivered in 2015 from Hundai Heavy Industries (HHI) in Korea for operations in the North Sea. The 123m-long DP3 vessel will accommodate 110 personnel and be equipped with an 18-man saturation system rated to depths of 980ft, two threeman diving bells, and two 18-man hyperbaric lifeboats. l A Hong Kong-based ship owner has contracted Cosco Zhoushan in China to build four Rolls Royce UT 771 CDLdesign, PSVs at a cost of $119 million, with deliveries from 1H 2014. l Wrtsil has signed a contract with China Oilfield Services (COSL) to provide designs for six ships: two VS 485 PSV MKIII, 85m-long PSVs and four VS 4612, 74m-long anchor handling tugboat supply (AHTS) vessels for operations in the South China Sea and Bohai Bay. l Icon Offshore of Malaysia has ordered two AHTS from Singapore-listed and Miri, Sarawak, east Malaysiabased Nam Cheong Shipyard, which also has secured an award for a PSV from an undisclosed marine service provider. The three vessels, worth a total of around $56 million, are to be constructed in one of the companys subcontracted yards in China. Deliveries are scheduled by 2Q 2013. Industry is doing the work at its Mazhou Island shipbuilding base, Shenzhen, China. The CJ46-X100-D design, 375ft water depth capable rigs are to be named Haiheng 2 and Haiheng 3. Delivery is in 4Q 2014 and 1Q 2015, respectively. Dev Drilling, a unit of the Singapore-based Jindal Group, has ordered a LeTourneau Super 116E jackup drilling rig from Lamprell. This is the second such unit for Jindal with construction in Hamriyah Free Zone, Sharjah, UAE. Asia Offshore Drilling, majority-owned and managed by Seadrill, delivered the KFels Class B jackup drilling rig, AOD 1, from Keppel in Singapore. The rig has been contracted by Saudi Aramco for operations offshore Saudi Arabia. Aramco Overseas of Saudi Arabia has received its first KFels Super B Class jackup rig, SAR 202, customized to Saudi Aramco requirements. It is equipped with a 2 million pound hook load capacity and has HPHT capability. The rig can drill to 30,000ft. Greatship Global Energy Services has taken delivery of the jackup drilling rig Greatdrill Chaaya from Lamprell Energy. Built at its facility in Hamriyah, it is a LeTourneau Super 116E design capable of drilling to 30,000ft. Its 477ft leg length enables operations off the coast of India. National Drilling Company (NDC) of Abu Dhabi has taken delivery of the jackup drilling rig Muhaiyimat, constructed at a cost of $159 million by Lamprell at its Hamriyah yard and deployed for operations in the Arabian Gulf.
of two ultra-deepwater semisubmersible drilling rigs from CIMC Raffles in Yantai, Shandong Province, China, with options for another four units. The Frigstad D90 design, dual-activity, DP3 rigs (pictured left) will be capable of operating in water depths up to 12,000ft while drilling to 50,000ft. The semis will be equipped with two BOPs, each with seven rams; deliveries are slated for end of 4Q 2015 and 2Q 2016. Construction, marketing, and operation of the rigs, costing $1.3 billion in total, will be managed by Frigstad Offshore. A SapuraKencana Petroleum subsidiary has engaged Frigstad Engineering to provide detail engineering services for the construction of KM-3, a Frigstad T70-design, semisubmersible, tender-assisted drilling unit. Major detailed engineering work is to be carried out by Frigstad in Singapore in cooperation with an undisclosed yard in Malaysia. The Frigstad T70, displacing about 30,000dwt, is equipped with three large cranes, including one 400t unit able to lift the drilling equipment set in modules onto offshore jackets. Naftogaz, a Ukraine state-backed energy firm, has contracted KFels to build two DSS 38U compact deepwater semisubmersible drilling rigs at a combined cost of $1.2 billion, customized to operate in the harsh conditions of the Black Sea.
Drillships, tenders
Sete Brasil Participaces has placed an order for an ultra-deepwater drillship with Jurong Offshore, a subsidiary of Sembcorp Marine; construction is to be completed in Brazil in 3Q 2016 for $806 million. Based on the proprietary Jurong Espadon design, the rig will be capable of drilling to 40,000ft in water depths of up to 10,000ft. Vantage Drilling has entered into the joint-venture entity Sigma Drilling with an affiliate of Skeie Group and other investors, for construction of an ultra-deepwater drillship by STX Offshore & Shipbuilding in South Korea. To be delivered in 4Q 2015, the dual-activity rig will be able to operate in water up to 12,000ft deep, be equipped with two seven-ram BOPs, and have the capacity to store up to 12 subsea xmas trees. Queiroz Galvo leo e Gs (QGOG) Constellation of Brazil has exercised an option for an advanced-capability, DP3 ultra-deepwater drillship to be constructed by Samsung Heavy
Semisubmersibles
Frigstad Deepwater subsidiaries have entered into turnkey construction contracts for delivery
10
shipyards
Industries (SHI), with delivery in 4Q 2014. Based on the proprietary Samsung Hull, the rig will be able to drill to 40,000ft in 12,000ft water depths, and will feature a 165t heavecompensating crane for deployment of subsea production equipment. Cosco (Nantong) Shipyard of China, a subsidiary of Singapore-listed Cosco, has delivered the self-erecting tender drilling rig T-15 to Seadrill. It is capable of operating in water up to 6500ft deep and drilling to 20,000ft. Cosco is also contracted to deliver three similar rigs, T-16, T-17, and T-18, to Seadrill.
and upgrading work of the FPSO Lewek Arunothai. It is to be completed in 2Q 2013. The vessel will serve as an early production system in the Kamelia field, offshore the east coast of peninsular Malaysia in the North Malay Basin. The upgraded FPSO will be able to handle 175mmscf/d of gas, 1000b/d of condensates, and 500b/d of water. Petrobras has received the FPSO Cidade de Sao Paulo from the Keppel Fels Brasil (BrasFels) yard in Angra dos Reis, Brazil. The vessel, the first of two FPSO projects BrasFels is undertaking for MODEC and Toyo Offshore Production Systems, has a production capacity of 120,000bo/d and is able to compress 175mmcf/d of gas. It will operate in the Santos Basin, Brazil.
l Bhagwan Marine, an Australia-based offshore oil and gas services provider, is to have Keppel Singmarine build a catamaran DSV for operations in support of Apache Energy off northwestern Western Australia from 1Q 2014. l Cosco (Guangdong) Shipyard, a subsidiary of Singapore-listed Cosco, has concluded a contract with an undisclosed European client for the construction of two PSVs valued at $54 million, to be delivered by 1Q 2015. The award includes an option for two additional vessels. l Uniwise Offshore, a Thai JV of Singapore-headquartered Miclyn Express Offshore, has placed an order for two AHTS vessels for long-term deployment in Thailand. The vessels will be delivered by mid-2014. l Topaz Marine Engineering, a UAE-based subsidiary of Renaissance Services of Oman, has been commissioned by Kuwait Oil to design, build, and deliver ten 22m-long, fast crew/pilot boats valued at about $50 million. To be built at the Nico Craft Shipyard in Abu Dhabi, the 30-personnel capacity, steel boats will operate in Kuwait waters and be equipped with oil spill recovery capabilities. l Bumi Armada has had its multi-purpose platform support vessel NC800 launched from Nam Cheong Shipyard in Miri, Sarawak.
Floating production
Inpex has had first steel cut for the Ichthys LNG semisubmersible production platform by SHI at its yard in Geoje, South Korea. This central processing facility (CPF) will measure 150m by 110m, displace 140,000t and have a peak gas export rate of 1.66bcf/d, making the semi platform the largest of its kind. The CPF will be completed late in 2015 with first Ichthys gas expected to be delivered in 4Q 2016. The CPF will be moored near an FPSO capable of storing 1.2mmb of condensate. That vessel has had first steel cut for its turret in Singapore. Saipem and client OLT Offshore LNG have had the floating, storage, and re-gasification vessel FSRU Toscana named at Drydocks World, Dubai, UAE. The 135,000m LNG storage ship,
3
Platforms, construction
Sabah Shell Petroleum has awarded Technip and Malaysia Marine & Heavy Engineering (MMHE) an EPC contract for a tension leg platform for the TLP Malikai Deepwater Project, to be installed some 110km offshore Sabah, east Malaysia, in a 490m water depth. The fullymanned, 26,000t TLP, including topsides, will be capable of processing 60,000bo/d and 50mmcf/d of gas. Construction will be carried out by MMHE at its Pasir Gudang yard. SMOE, a Sembcorp subsidiary, has secured a contract worth about $730 million from Det Norske oljeselskap for engineering, procurement, and construction of a 13,700t process, drilling, and quarters platform (PDQ) topsides to be installed in 112m water depth off Norway. Shell Philippines Exploration held a strikesteel ceremony at Keppel Subic Shipyard, a Keppel O&M subsidiary, for construction of a depletion compression platform (DCP) for the Malampaya gas field, off the west coast of Palawan Island. The DCP, forming phase three for maintenance of production from the Malampaya Deep Water Gas-to-Power project, will be mounted on a tubular-leg supported barge deck in shallow water next to an existing production platform. The Papa-Terra JV, an undertaking of Petrobras and Chevron, has taken delivery of the topsides module of the P-61 tension leg wellhead platform (TLWP), constructed by the Keppel O&M subsidiary BrasFels at its shipyard in Angra Dos Reis, Brazil.
converted from the Korean-built, 287m long LNG carrier Golar Frost, will operate offshore Italy. Petrobras has taken delivery of the FPSO Nisa from COSCO Dalian Shipyard in China. The converted 342m-long ULCC has a production capacity of 140,000bo/d and 1.2mmcf/d of gas and storage for 1.4mmbo. Deployment is in the Campos Basin, offshore Brazil. Also at COSCO Dalian yard, the newly converted FPSO vessel P-63, has completed all load tests. It is the first such ship to use Wrtsil 50DF dual-fuel engines, which produce more than 100MWe of power. The P-63, able to process 140,000bo/d and compress 35mmcf/d of gas, is being deployed to the Campos Basin for Petrobras. EMAS Offshore Construction & Production has contracted Keppel Shipyard for the repair
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Seismic
Multi-client work lines up
John Mueller looks at 2D and 3D seismic surveys in Australia and Indonesia, EM data acquisition in a number of Asian localities, and 3D seismic data gathering in South Korea.
Basin, adjacent to the Clio and Gorgon gas fields which are in development stage. On completion of the survey, the TGS portfolio of 3D multi-client coverage will exceed 17,500km2 in this prospective offshore area. TGS is also reprocessing the Cazadores survey that covers 4350km2 of the Exmouth Plateau, a deepwater marginal area of the Northern Carnarvon Basin. The survey was acquired by the Fugro seismic vessel Geo Caspian. Processed data will be available in 2Q 2013. The Australian government has rejected an application by Apache Energy to undertake a
n Australia, TGS has started acquisition of a 3D multi-client seismic survey, The Three Bears, which covers 460km2 in the Carnarvon
3D marine seismic survey in exploration permit WA-155-P and Petroleum Retention Lease TR/3 with ingress into surrounding areas, including the Muiron Islands Marine Management Area. The survey is deemed to have unacceptable impacts on the Ningaloo World Heritage Area protected by the Environment Protection & Biodiversity Conservation Act of 1999. In Indonesia, Spectrum and Nordic Geo Services have begun acquisition of a 5000km 2D multi-client seismic survey offshore eastern Indonesia. The survey is a series of extensive, continuous, seismic lines extending from south of Sulawesi Island in the Banda Sea and around Buru and Seram islands. The program will consist of long-offset marine seismic data shot
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seismic
will provide E&P companies with a modern seismic dataset for regional prospective play analyses in this proven hydrocarbon-bearing province. In Myanmar, Rimbunan Petrogas (RPL) has completed the acquisition of 306km of 2D ocean bottom cable seismic survey in offshore in open acreage over a number of unexplored/ underexplored basins. Nordic Geo Services has deployed its seismic vessel Nordic Energy (pictured above) and Spectrum is processing the data. Final deliverables, including PreSTM and AVO products, are expected to be available in 2Q 2013. Also in Indonesia, MultiClient Geophysical has commenced its North Sumatra Basin Regional MC2D Survey offshore northeast Sumatra, using the DMNG seismic vessel Akademik Fersman. The program is expected to comprise 4500km of long-offset, regional 2D data. In addition, the vessel will acquire about 900km of prospect specific infill lines within Kris Energys East Seruway PSC. The MC2D survey block M-1 PSC, fulfilling a 300km to 500km 2D seismic program requirement deadline of mid-2013. RH Petrogas (RHP), an independent upstream oil and gas company headquartered in Singapore, can exercise a seismic farmin option to acquire 50% of RPLs participating interest, dependent upon the 2D survey results. Such a farmin would give RHP a 46.5% stake in the M-1 PSC. In South Korea, Korea National Oil Corporation (KNOC) has had a 200km2 3D survey completed in the Koreas East Sea by Singapore- and Norway-based Reflect Geophysical, using the seismic vessel Geowave Commander.
l In Malaysia, Electromagnetic Geoservices (EMGS) has been awarded a $7 million contract by Shell to acquire offshore 3D electromagnetic (EM) data. EM Leader will gather the survey on completion of a $20 million 3D EM data contract in Brunei. EMGS has also signed a three-year global frame agreement with Shell for the provision of 3D EM services. EMGS has also received two contracts of 3D EM data acquisition by EM Leader in Asia, subsequent to the contract with Shell. EMGS expects to deploy EM Leader and BOA Thalassa in Asia for most of this year due to increased demand.
Meeting the Challenges for Asias Growth
For more information, visit www.otcasia.org/2014 or contact otcasia@otcnet.org +60.3.2182.3000
13
Natural gas lifts Australian reserves

As Australia grapples with chronic oil production decline in the face of rising imports, the buoyant gas sector offers the prospect of rising revenue from LNG exports. John Mueller reports.
Focus
However, crude oil and natural gas liquids (NGL) production has been in steady decline, dropping from a peak of 828,000b/d in 2000 to 484,000b/d in 2011 with oil imports rising as the population of around 22 million drives consumption upward. According to APPEA, hydrocarbon liquids production will continue to decline unless major new elds are discovered.
study commissioned by the Australian Petroleum Production & Exploration Association (APPEA) prognosticates
that Australia is on track to become the second largest exporter of LNG in the world, after Qatar. Currently ranked fourth worldwide for LNGexports, also trailing Indonesia and Malaysia, it is a promising counter balance to Australias crude oil production, which has been steadily declining over the past decade, now under half of an approximate one million barrels per day domestic requirement. Australia has widespread petroleum assets both on- and offshore, possessing close to 4 billion barrels of proven oil reserves, typically low in sulfur and wax and therefore of higher value than heavier crudes. The reserves are largely located off the coasts of Western Australia, Victoria and Northern Territory. Western Australia has around two-thirds of Australias proven crude oil reserves, as well as three-quarters of condensate, and around half of its LPG. The two major producing basins are the
Increasing gas exports

Natural gas production and exports have been increasing since the mid-1990s. Output is up from 1.15tcf in 2001 to nearly 1.6tcf in 2011, and is seen likely to triple by 2020. Gas exports rose from 370bcf in 2001 to 684bcf in 2011, according to the BP Statistical Review of World Energy. Proven reserves have steadily risen, from 32tcf in 1991 to over 130tcf in 2011, with technically recoverable shale gas reserves by one estimate placed at 400tcf in yet to be exploited basins. Conventional gas is largely produced from the Carnarvon Basin, the Cooper/Eromanga Basin in central Australia, and Gippsland Basin. These three basins account for over 90% of conventional natural gas production. Queensland and to a lesser extent New South Wales are the main sources for coal bed methane, which accounted for 13% of gas production in 2010. About half of the natural gas is converted to LNG for export. Long term contracts are in place to supply LNG to Japan, China, South Korea and Taiwan, with spot market sales to numerous other countries. During 2011, 73% of LNG exports went to Japan. The abundance of natural gas in Australia coupled with the energy needs of regional economies, in particular those of East Asia and most notably that of China, has underpinned the growing LNG industry and spurred a profusion of LNG project plans and proposals.
Carnarvon Basin off the northwest coast, accounting for about 70% of total liquids production, mostly exported, and the offshore Gippsland Basin in the southeast, whos output primarily is used in domestic rening. Extensive offshore exploration continues to make discoveries with production achieved using innovative technologies, often involving oating production vessels and subsea wellheads and pipelines, and led by Woodside Petroleum and Santos, the two largest domestic companies, and such international majors as ExxonMobil Shell, Chevron, ConocoPhillips, Total, BHP Billiton, Japex and Apache. Principal frontier oil exploration has moved in recent years to the deepwater area of the Timor Sea, although the nearby Carnarvon Basin remains busiest in terms of overall drilling activity.
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natural gas
& tourism
australian dept of resources, energy
Production, reserves, and usage

According to the BP Statistical Review of World Energy, Australian oil and NGL production in 2011 was 484,000b/d (175.7 million bbl/yr). Natural gas production was 4.35bcf/d (1.59tcf/yr). Proved reserves as of end 2011 were 3.9 billion barrels of oil and 133tcf of gas. Domestic consumption in 2011 stood at just over 1mmb/d of oil and nearly 2.5bcf/d of gas.
30.3tcf
81.7tcf
13.5tcf
1.4tcf
7.3tcf Australian gas reserves. 2.4tcf 0.5tcf
Outlook
There is considerable potential for further development of the
Plentiful conventional natural gas resources have been identified offshore the northern coast and Western Australia, and in eastern Australia large coal seam gas (CSG) resources have been discovered onshore in Queensland and to a lesser extent in New South Wales. Three LNG processing plants are in operation, two onshore Western Australia, one each for the offshore North West Shelf LNG (at Karratha) and Pluto LNG projects, both in the Carnarvon Basin, and a third LNG plant in Darwin, Northern Territory, that receives gas via a 500km pipeline from the Bayu Undan field in the Timor Sea. The North West Shelf project has five trains with a total capacity of 16.3mmt/yr, Pluto 4.3mmt/yr, and Darwin 3.6mmt/yr, both from one train.
(MIMI), the North West Shelf project produces such fields as North Rankin, Perseus, Goodwyn, Echo/Yodel, Wanaea and Cossack, among others. The Pluto LNG project, started up in 2Q 2012 and anticipated by 90% stakeholder and operator Woodside to output 36mmboe of gas and condensate this year, is supplied by the offshore Pluto and Xena fields, located 190km northwest of Karratha, which contain an estimated 4.8tcf of gas reserves. Gas is piped by 180km trunkline to an onshore LNG facility on the Burrup Peninsula. The Darwin LNG plant is supplied by the ConocoPhillips operated Bayu Undan gas and condensate field within the JPDA (Joint Petroleum Development Area) of Australia and Timor Leste, via 500km subsea pipeline.
extensive natural gas resources in Australia, which accounted for 18.9mmt/yr of LNG in 2011. Australia has in the region of $185 billion worth of oil projects, including those under construction and in advanced stages of planning and approval, collectively amounting to some 35% of all business investment in the country. Should all oil and gas investments be realized, they will represent more than 64% of all committed investment in Australia, according to APPEA. Australias stable political environment, substantial hydrocarbon reserves and proximity to Asian markets make it an attractive place for foreign investment, tempered by cost overruns and labor shortages. >
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Largest resource
The North West Shelf project is a $27 billion investment in Australias largest oil & gas resource, which accounts for about 40% of oil and gas production and has exported more than 3000 LNG cargoes since 1989. It also currently supplys around 65% of the domestic gas market in Western Australia. Operated by a equal sharing partnership comprising Woodside Petroleum, BHP Billiton, BP, Chevron, Shell and Japan Australia LNG
Project development
There are several substantial LNG projects at various stages of development that source gas from conventional reservoirs, defined as discrete accumulations trapped by hydrodynamic processes. Offshore Western Australia is the huge Gorgon project, due to begin in 2014/15, the Wheatstone project set for operation in 2016 and the Ichthys project, online end-2016. A fourth groundbreaking effort underway is the Prelude LNG project.
natural gas
Gorgon LNG, led by Chevron with 47.3%, partnered by Shell and ExxonMobil each holding 25%, with initial completion slated for 2014, is now estimated to cost $15 billion more, reportedly raising the total to over $50 billion. Three trains will output 15.6mmt/yr of LNG, processing gas from Greater Gorgon fields
Gas to the fore

Although Papua New Guinea is constrained by the remoteness of its condensaterich natural gas assets, limited domestic needs and considerable distance to overseas markets, it is investing heavily in multiple LNG projects. Papua New Guinea-based oil & gas exploration and development company Oil Search has a portfolio including substantial JV holdings in the Gulf of Papua that could bolster the PNG LNG Project or alternatively become another LNG hub. Oil Search has contracted the semisubmersible Stena
transported by subsea pipeline to production and shipping facilities on Barrow Island (pictured right). The Wheatstone LNG project, a $29 billion Chevron-operated development located at Ashburton North, 12km west of Onslow, has a foundation phase consisting of two LNG trains with a combined capacity of 8.9mmt/yr and a domestic gas plant. First gas is expected at a rate of 433bcf/yr. Around 80% of capacity will be fed from the Wheatstone and Iago fields, the balance supplied from the Apache and KUFPEC Julimar and Brunello fields. The Ichthys LNG project, led by Inpex in partnership with Total, is developing a reserve of 13tcf of gas and 525 million barrels of condensate in the Ichthys field, Browse Basin, at a cost of $34 billion. Workscope entails an 889km gas pipeline together with an onshore two train 8.4mmt/yr LNG plant near Darwin, an offshore central processing facility and an FPSO vessel for condensates. The Ichthys project will also output 1.6mmt/yr of LPG and 100,000b/d of condensate at peak. The Shell-operated $12 billion (greenfield) Prelude project is scheduled to be operational by around 2017 using a floating LNG vessel, producing the Prelude and Concerto gas and condensate fields in the Browse Basin. The unprecedented 488m long barge-like facility with a 3.5mmt/yr LNG capacity is suited to smaller and remote offshore fields, and is able to unlock otherwise stranded gas resources. This approach is planned for a number of other developments that include Bonaparte, Sunrise and Cash-Maple FLNG projects. The Bonaparte LNG project in the Bonaparte Gulf, a joint venture of GDF Suez and Santos, is to begin front-end engineering and design mid2013 for a 2mmt/yr LNG development involving the Petrel, Tern and Frigate gas fields. The Sunrise LNG development, which involves the Sunrise and Troubadour fields, known as Greater Sunrise, and located about 450km northwest of Darwin and 150km southeast of Timor-Leste, is in discussion phase between the two governments. Operated by Woodside in joint venture with principal partners ConocoPhillips and Shell, the fields are estimated to have a contingent resource of over 5tcf of gas and 226 million barrels of condensate. The Cash-Maple gas field, 100% held by PTTEP and situated in the Ashmore & Cartier Islands area of the Timor Sea, is undergoing a concept study of development options, which include a possible FLNG unit. Startup of the facility is scheduled for 2016. Hoegh LNG of Norway is reported to be in final talks with PTTEP on an FLNG vessel. Other potential conventional gas sourced LNG developments awaiting final approval include the Browse LNG project and Scarborough field with expansion train potential at most projects, if market demand and gas supply options align. The Browse LNG project is awaiting final investment decision. Meanwhile, Woodside, operator and major equity holder, is evaluating tenders for offshore and onshore infrastructure. The Brecknock, Calliance and Torosa gas fields will have gas and condensate transported 425km to a proposed onshore 12mmt/yr LNG plant. The Scarborough gas field project, an offshore venture of ExxonMobil and BHP Billiton, is being considered for an FLNG platform to develop the 8tcf resource. A decision is to be made later this year.
Clyde to drill at least two wells

in the Gulf of Papua, initially scheduled for late 2012, but since delayed. The company also has an interest in the Kumul marine terminal located in the Gulf of Papua which receives crude oil via a 265km pipeline from its majority-held Kutubu oil project. The oil & gas sector is poised to yield a sharp rise in revenue with the PNG LNG project and Stanley field recovery, both online next year. PNG LNG will also provide a needed lift of 20,000b/d of condensate to the onshore Highlands oil production, which has declined by 40,000b/d from a high of 70,000b/d in 2000.
Unconventional
Several LNG developments sourcing coal seam gas (CSG) are underway, mostly centered around Queensland, breakthrough endeavors as there are currently no operational CSG-LNG export projects in the world. There are a total of six LNG projects in
16
natural gas
Queensland, five well advanced in planning and development and all to utilize CSG from onshore basins mostly in Queensland: Queensland Curtis LNG (QCLNG), Gladstone LNG (GLNG), Australia Pacific LNG (APLNG), Arrow LNG, Gladstone LNG Fishermans Landing and Sun LNG. Three LNG projects are under construction adjacent to each other on the south coast of Curtis Island and opposite Gladstone on the mainland, QCLNG, GLNG and APLNG, which together are expected to generate $45 billion in capital expenditure and produce 28.8mmt/yr of LNG. QCLNG is being developed by Queensland Gas, a subsidiary of BG, with the aim of first LNG in late 2013 from a plant with an initial capacity of 8.5mmt/yr and potential to increase production to 12mmt/yr. Plans include further development of Queensland Gass CSG fields around Miles in the Surat Basin and construction of a 540km pipeline. GLNG, a joint venture of Santos, Petronas, Kogas and Total, anticipates first LNG in 2014 from a plant with a startup capacity of 3.9mmt/yr, possibly increasing to 10mmt/yr, and development of Santos gas fields in the Bowen and Surat basins as well as construction of a 420km gas pipeline. APLNG, a venture of Origin, ConocoPhillips and Sinopec, is looking to output LNG in 2015 from a plant with a capacity of 4.5mmt/yr , upgradeable to 18mmt/yr. Development plans involve CSG fields development and a 400km pipeline, the gas sourced from the Bowen and Surat basins. Arrow CSG (Australia), formerly Shell CSG (Australia), a joint venture of Arrow Energy, Shell and PetroChina, proposes to develop another LNG plant on Curtis Island, next to GLNG, with an initial capacity of 8-9mmt/yr and a potential of up to 18mmt/yr of LNG. Arrow is exploring approximately 50,000km2 of CSG acreage throughout Queensland and northern New South Wales which it estimates to have a contingent CSG resource of around 70,000 petajoules (62tcf). At Fishermans Landing in the Port of Gladstone, Queensland ,Gladstone LNG is developing a two train 3.8mmt/yr LNG plant for LNG export at a projected cost of $1.7 billion, primary gas supply.
Basins bounty sought

Taranaki Basin, located along the west coast of New Zealands North Island, has been the principal focus of oil & gas exploration and production. It commenced with the large gas and condensate discoveries made in 1969 with the onshore Kapuni and offshore Maui fields, and continuing throughout this on- and offshore petroleum province. Other significant hydrocarbon finds include the offshore Tui and Maari oil fields and Kupe and Pohokura gas fields. The Maui field, formerly the premier deposit, has been in sharp decline. The Maari and Pohokura fields contain about 49% of remaining oil and condensate reserves, Pohokura accounting for 45% of natural gas with the balance distributed over 17 other fields. Exploration is being conducted in other basins, sub-commercial discoveries achieved in the East Coast Basin of North Island and in the Canterbury and Great South basins offshore South Island. More than 400 wells have been drilled in the 330,000 sq km Taranaki Basin, but none beyond the marine shelf edge. New discoveries have been made at a steady rate, and new play types are still being found. Elsewhere in New Zealand, frontier basins have yielded discoveries confirming viable petroleum systems, with many untested structures having closures greater than the Maui field. Concerted geophysical data gathering since the mid-2000s, coupled with advancing deepwater drilling and production technology, has shifted exploration further offshore in anticipation of larger oil and gas accumulations. Sections of five offshore frontier basins Great South,
Canterbury, Raukumara, Deepwater Taranaki, and Reinga are currently licensed to major IOCs. The increasing acquisition of seismic data has prompted frontier basin exploratory efforts that have yielded several significant, albeit non-commercial deposits. These included two off the east coast of South Island in the Great South Basin, where Kawau-1A in 1977 flowed 6.8mmcf/d of gas with estimated reserves of 461bcf, and in the Canterbury Basin, well Galleon-1 produced 10mmcf/d of gas and 2300b/d of condensate. Oil output has varied widely over the past 15 years, rising and falling year to year, from approximately 22,000b/d in 1997 to 7000b/d in 2006 and then to 16,500b/d in 2011, primarily from the Pohokura, Tui, and Maari fields Maui only producing about 1500b/d that year. Gas production in 2011 averaged 395mmcf/d, mainly from Pohokura, Kapuni and Maui, all of it consumed domestically. Proved hydrocarbon reserves are relatively modest, estimated at around 113 million barrels and about 1.2tcf of natural gas in 2011.
gns science
Outlook
With Maui field output seeing a precipitous drop from a peak in 1997 and only partially compensated for with production from several other offshore Taranaki fields starting to ramp up from 2006, the pressure is on to achieve major discoveries. Although the bigger discoveries are gas-condensate, several oil fields have been discovered. These fields and geochemical research, indicating similarity to prolific oil provinces in Southeast Asia, suggest the discovery of large oil fields is only a matter of time.
17
Solutions
Position precision
Sonardyne is to supply two Ranger 2 underwater tracking systems from its facility in Singapore to China Offshore Fugro Geosolutions (Shenzhen) (COFG) for the pre-installation phase of the l Rolls-Royce has won a US$41 million order to provide an integrated-design, power propulsion-equipment package for four Rolls-Royce UT 771 CDL offshore supply vessels to be built at COSCO (Zhoushan) Shipyard in China, with options for four additional vessels. The Rolls-Royce extensive integrated package includes bulk handling, automation and control systems, as well as dynamic positioning using satellite technology to automatically maintain vessel position without anchoring, and deck machinery. Liwan 3-1 gas field development in order to conduct route surveys of a proposed 260km-long, gas pipeline using ROVs. Sonardyne, a designer and manufacturer of underwater acoustic positioning, inertial navigation, wireless communications, and sonar technology systems, will also provide its precalibrated GyroUSBL transceiver. Ranger 2 calculates the position of a subsea target by measuring the range and bearing from a vessel-mounted Ultra-Short BaseLine (USBL) transceiver to an acoustic transponder on the target. The GyroUSBL, which has a built-in Lodestar attitude and heading reference sensor, can be deployed over the side of a ship, making temporary installation on vessels-of-opportunity cost-effective. Discovered in 2006, Liwan 3-1 is located in the South China Sea 350km southeast of Hong Kong in an average water depth of 1300m. COFG is a joint venture between Fugro China and China Oilfield Services. engineered by Singapore-based fire specialist EPAS Fire Protection, is centered on three Kentec Syncro ASM analogue addressable panels in a network integrated to 300 Apollo Discovery Marine, addressable smoke and heat detectors, supported by 80 addressable manual call points. The system is also designed to generate alarms via 60 alarm bells and 20 sounder/beacons. It includes EPAS PLC (programmable logic controller) based gas detection/alarm and CO2 fire extinguishing systems that are designed, engineered, integrated, and approved to ABS MODU rules. With accommodation for up to 152 personnel, the Derwent is designed for complex subsea operations that include construction support, IRM (inspection, repair and maintenance), and light/medium well intervention.
Downhole valve operation

Red Spider, a UK-based downhole tool specialist, is supplying its eRED technology and field supervision to ongoing projects in Malaysia and Brunei. It recently gained a contract with Thang Long Joint Operating Company of Vietnam. eRED is the first Red Spider tool to use its patented ROCT (Remote Open and Close Technology), a downhole, computer-controlled, ball valve that can be opened and closed multiple times by remote control without the need of intervention. So far the tool has completed over 130 operations for more than 20 operators. The eRED tool is deployed below either a lock or bridge plug and can be used as a downhole barrier or flow control device. The contract with Thang Long JOC will involve Red Spider supplying two eRED tools and workforce to supervise the project. The tools will be deployed pre-installed within a nipple profile for testing tubing, setting a production packer, flowing the well, and barrier isolation. Red Spider has also completed its first project for Petronas Carigali, which used eRED technology for the first time to remove wireline runs from completion operations and reduce wireline interventions in a highly-deviated, corrosion-resistant alloy (CRA) completion.
Onboard fire safety

Kentec Electronics, a UK fire-control panel manufacturer, has had its fire detection equipment installed on a Hallin Marine l Severn Trent De Nora, an electro-chlorination technology specialist, has installed a Mariner Omnipure Series M55 marine sewage treatment system onboard the LNG carrier LNG Gemini, while in Subic Bay, the Philippines. The M5508 model, which can treat black and gray water for up to 25 persons, employs an electrolytic process that generates the oxidant sodium hypochlorite from seawater to disinfect biological wastes.
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newbuild. The compact, semisubmersible, multi-service vessel (MSV) Derwent, was floated for final fit out at Drydocks World Nanindah shipyard on Batam Island, Indonesia. The MSVs fire alarm system, designed and
TDW OFFSHORE SERVICES
Longest pipe isolation

TDW Offshore Services has completed the longest pipeline isolation operation in its history for Origin Energy, keeping in place its remotely-operated SmartPlug pressure isolation tool for 299 days in the Origin pipeline network offshore Australia. The purpose was to create double-block isolation against gas pressure to depressurize a key section of pipeline. This allowed heavy lifting operations to be done safely, installing a new 600t accommodation module as part of the Yolla Mid Life Enhancement (MLE) project. In addition, an emergency shutdown valve (ESDV) was replaced. The MLE project is situated on a section of a 14in gas export pipeline that extends from the Yolla A platform in the Bass Strait, between Australia and Tasmania, to the Lang Lang gas processing plant, 70km south of Melbourne. TDW isolated the line by pigging a 14in SmartPlug with nitrogen through the topside piping, and then down the riser about 300m into the subsea pipeline to the set location, where a subsea communication skid had been installed. The SmartPlug tool, which has a built-in pinger system and is controlled remotely via extremely low-frequency (ELF) signals, was then set horizontally at the seabed in the line where it would remain until all work was completed. The TDW SmartTrack system monitored SmartPlug location and pipeline pressure.
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Activity
n jackup entry Singapore-listed Falcon Energy Group, PetroVietnam Drilling, and Well Services, will invest US$185 million in the joint venture PV Drilling Overseas that will lease purchased oil drilling rigs to foreign oil companies operating in Asia, China, the Middle East, and Gulf of Mexico. The first pair of 375ft water depth capable jackups are on schedule for completion late this year. The GustoMSC CJ46-X100-D design rigs are under construction by China Merchants Heavy Industry in Shenzhen, China. n clough acquisition Clough acquired e2o, a provider of specialized commissioning, completions and hazardous area inspection services to the energy and resources sectors, for AUD $15 million. e2o is well-positioned in the n korean debut Pipeline equipment and services specialist, TD Williamson, has opened its first office in Korea to provide technical solutions based upon its pipeline intervention and isolation technologies. TD Williamson services in Korea, which range from hot tapping and STOPPLE plugging to SmartPlug pressure isolation, will be supported by the TD Williamson facility in Singapore and its global network. To serve customers in Korea, TD Williamson will employ its specialist pipeline intervention and isolation technologies, such as the remote-controlled Subsea 1200RC Tapping Machine (pictured above) that facilitates pipeline tie-ins by tapping into pre- and postinstalled tees, without diver assistance. n china propulsion Wrtsil and Yuchai Marine Power have signed an agreement
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to establish a 50:50 joint venture for the manufacture of medium-speed marine engines in Zhuhai City, Guangdong Province, serving the rapidly emerging Chinese shipbuilding industry. Operations will commence in 2014. The venture involves an investment of nearly E17 million by Wrtsil, which has maintained a presence in China over 20 years. n safe water onboard Hatenboer-Water, a Netherlands-based solution provider for integral water management onboard ships and platforms, opened an operational branch in Singapore as many newbuilds and retrofits take place in Asia, enabling guidance in these projects for both shipyards and end-users. Hatenboer-Water is involved the early stages of a water installation inclusive of management and disinfection systems, pipework and tap points. n engineering center GE plans to establish an engineering center in Ho Chi Minh City dedicated to product design, applications, and services for the oil & gas industry. Scheduled for completion this year, the new facility will employ up to 200 local engineers.
LNG sector, currently working on commissioning major LNG projects, including Chevrons Wheatstone LNG in Western Australia, Origins Australia Pacific LNG, and Santos Gladstone LNG projects, both in Queensland. e2o, based in Australia with a Singapore regional office, will continue to operate with existing management and under its own brand. n service unites Sinopec (China Petrochemical Corp) inaugurated Sinopec Oilfield Service Corp in Beijing with Sinopec group chairman, Fu Chengyu, in attendance. The new service subsidiary, formed through restructuring of Sinopec Groups oilfield engineering firms with fixed assets worth US$12 billion, will operate globally. n operations relocation Aggreko, a provider of temporary power and temperature control solutions, opened a new service center in the southern city of Foshan, situated within the Gangbei Industrial Zone in the Shunde District, Central Guangdong Province, China. The facility will replace its existing operation located in the neighboring city of Guangzhou that was established in 2010.
n viking support Viking SeaTech, formerly Viking Moorings, and now a global supplier of a range of equipment and services to the offshore oil and gas industry, opened new offices in Jakarta to mark the companys move into Indonesia where it is known as PT Viking SeaTech Indonesia. n new office Imtech Marine, a Netherlandsbased company operating in the global marine market as a full-service provider and system integrator of tailor-made technology solutions covering an entire ship, has opened a new office in New Delhi. Imtech Marine India is an approved supplier for the Indian Navy regarding HVAC (heating, ventilation and air conditioning) and fire fighting systems. n more room HB Rentals, a global offshore oil and gas accommodation specialist, expanded its
company news
infield flowline for the Kepodang gas field, in water depths of up 70m. Workscope includes procurement, construction, installation, and commissioning of a 5800t central processing platform, 13,000t wellhead platform, a 2.7km long, 250mm diameter infield flowline and installation of remote control equipment at the onshore receiving facilities. Fabrication will be undertaken at the McDermott Batam yard, Indonesia, with transport involving a n ichthys connection Aker Solutions signed a US$90 million contract with a subsidiary of McDermott for delivery of subsea connectors to the $34 billion Ichthys LNG Project, located in the Browse Basin about 200km offshore Western Australia. Work includes the delivery of 6in to 18in horizontal and vertical diverless tie-in connectors from 2013 to 2014, to be included in the subsea, umbilicals, risers flowlines scope of McDermott, the lead SURF contractor. Gas from the Ichthys field will be exported to onshore processing facilities in Darwin via an 889km subsea pipeline. In a related development, Leighton Contractors secured A$1.2 billion of work linked to the Ichthys LNG project and expects to employ up to 1200 personnel. The first contract, worth about A$920 million, is to build infrastructure such as roads, foundations and trenches at Blaydin Point for Ichthys onshore facilities, construction to start in the 2Q and be completed by mid-2016. A second award, valued at A$280 million, is for a four-year operations and maintenance contract for all temporary site facilities, including power supply and water treatment plants during project construction phase. n varanus extension Apache Energy granted AGC Industries a A$15 million contract extension for ongoing works on Varanus Island and associated offshore facilities. Workscope includes fabrication, scaffolding, rigging and instrumentation, electrical and mechanical services. The Varanus Island Processing Hub, located off the northwest coast of Western Australia, consists of an oil terminal, gas Middle Eastern presence through a partnership with Mubarak A AlSuwaiket & Sons Oil & Gas Services in Saudi Arabia. The move further facilitates its capability in Saudi Arabia, with a view to working with Saudi Aramco. Moreover, HB Rentals signed an agreement with GASOS in Abu Dhabi and plans to pursue potential agency partnerships in Qatar and Kuwait. n kepodang gas readied Petronas Carigali affiliate PC Muriah awarded McDermott Internationals Indonesian subsidiary a contract to develop offshore surface facilities and an
Rig moves
In New Zealand, OMV New Zealand, operator of the Maari JV, has contracted the jackup ENSCO 107 to conduct a nine month, multiwell drilling campaign in the Maari field, offshore Taranaki Basin PMP 38160, expected to commence in 4Q 2013. This effort will run in parallel with a drilling program using the Frigstad Offshore managed semisubmersible drilling rig Kan Tan IV which includes a Manaia field appraisal well and an exploration well on the Whio prospect in permit PEP 51313 that, if successful, will also be produced through Maari facilities. In Indonesia, Inpex has awarded the Transocean ultra-deepwater drillship Discoverer Seven Seas a three-well contract at a day rate of US$500,000 for work offshore Indonesia. In Thailand, Mubadala Petroleum contracted the Atwood Oceanics jackup Atwood Orca for drilling operations in the Gulf of Thailand, the rig to be deployed for two years upon completion of construction by PPL Shipyard in Singapore. Salamander Energy (Bualuang) has granted a one-year contract, plus oneyear extension option, for the jackup drilling rig Atwood Mako at a day rate of $155,000 for work in the Gulf of Thailand. Also in Thailand, Coastal Energy has engaged the jackup drilling rig Atwood Manta to conduct an eightwell program at Bua Ban North field in block G5/43 in the Gulf of Thailand.
McDermott floatover barge to install the CPP and topsides. Project completion is expected by 4Q 2014. n gorgon given a hand AGC Industries, a subsidiary of AusGroup, an Australiabased provider of construction and integrated services for natural resource development, won additional fabrication work valued at around A$20 million on the Chevron-operated Gorgon project, taking its total contract value on that development to more than A$70 million. The contract calls for the fabrication of stainless and carbon steel pipework, non-destructive testing, post-weld heat treatment, blasting, and LNG specification painting related to LNG modules for trains. AGCs fabrication facilities in Kwinana and Henderson, Western Australia, will execute the contract.
processing trains, low temperature separation and stabilization, as well as gas compression, water treatment, and reinjection. n platform project TH Heavy Engineering of Malaysia, along with Afcons Infrastructure and Technip KT India, secured a US$290 million contract from ONGC to provide platform procurement and fabrication services for the Heera Redevelopment Project, located 80km west of Mumbai, India. Enhanced oil recovery techniques will be employed to increase production from the Heera field.
21
Numerology
40%
The amount by which Malaysia plans to cut carbon emissions in 2020.
(Source: Najib Tun Razak, Malaysian Prime Minister)
10,580,000
The average, in barrels per day, Chinas oil demand rose in December 2012.
(Source: Platts)
28
The number of construction phases into which the South Pars development (right) is separated.
(Source: Pars Oil & Gas)
2,500,000
The expected production capacity in tonnes per annum at the Abadi LNG project in Indonesia. (Source: Inpex)
8% 53%
(Source: Petronas)
The amount by which Rosnefts hydrocarbon reserves grew in 2012. (Source: Rosneft)
2016
The year Apache expects rst production from the Julimar development off Western Australia.
(Source: Apache)
The additional energy needed by 2035 to sustain global growth.

(Source: US Energy Information Administration)
349
22
The thickness, in meters, of net hydrocarbons encountered at the Adong Kecil West-1 well in Sarawak.
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