Volume 7—No.
8 August, 2005
www.OffshoreSource.com
Disaster Averted!
BP Assesses Damage to Thunder Horse After Hurricane Dennis
BP has confirmed that the Thunder
Horse semi-submersible platform, located
in Mississippi Canyon Block 778 in the
deepwater Gulf of Mexico, 150 miles
southeast of New Orleans, was listing, fol-
lowing the passing of Hurricane Dennis.
Early reports confirmed that the platform
was listing an estimated 20 to 30 degrees.
The Thunder Horse field is in development
and has not yet begun production of
hydrocarbons.
The situation was discovered at approxi-
mately 8:30 a.m. on July 11 (Monday), by a
vessel in the area. The cause is unknown.
The Thunder Horse platform had been evac-
uated of all personnel on Friday, July 8, in
anticipation of the hurricane’s approach. At
MMS Issues Final Notice of
Western Gulf Lease Sale 196
The Minerals Management Service’s Final
Notice of Lease Sale 196 for offshore oil
and gas in the Western Planning Area of the
Gulf of Mexico was published in the
Federal Register on July 7, 2005. The sale
is scheduled for August 17, 2005.
Sale 196 encompasses 3,762 unleased
blocks covering approximately 20.3 mil-
lion acres of federal land offshore Texas
and in deeper waters offshore Louisiana.
The blocks are located five to 357 kilome-
ters offshore in water depths ranging from
eight to 3,100 meters. MMS estimates the
lease sale could result in the production of
136 to 262 million barrels of oil and 0.81 to
1.44 trillion cubic feet of natural gas.
A recently revised provision to increase
Offshore Positioning & Mapping Conference
February 23-24, 2006, Houston, TX
OPMC to inform offshore Industry of innovations in subsea survey, positioning
and mapping technologies for coastal, shallow & deepwater projects
Contact Brad Parro
(281) 994 4052
bparro@tscholdingsgroup.com
Oil Patch Headlines • Exploration & Drilling • GOM Activity • Supplier News • Offshore At-A-Glance
Discoveries • Ships & Rigs • Alternative Energy • Stock Watch • World News • Technology Report
this time there has been no known release of
any fuel or hazardous substances.
BP immediately activated its Incident
Command structure, notified the appropri-
ate regulatory agencies including the U.S.
Minerals Management Service (MMS) and
the U.S. Coast Guard, and conducted over
flights to further assess the extent of the
damage.
BP mobilized a number of response ves-
sels to the Thunder Horse location and
working with the Coast Guard to create a
response plan. The first priority was to safe-
ly board the vessel for a further assessment
of its stability and to begin investigating
potential causes of the issue.
BP and the Coast Guard immediately
see BP Thunder Horse page 4
the base rental rates and minimum royalty
that was included in the proposed notice of
sale has been adopted for the final notice of
sale. This increase in base rental rates (as
well as minimum royalty) from $5.00 to
$6.25 per acre or fraction thereof for blocks
in water depths of less than 200 meters and
from $7.50 to $9.50 per acre or fraction
thereof for blocks in water depths of 200
meters or deeper reflects inflationary
adjustments from the last time rentals were
revised.
Bidders should note that an application
from Beacon Port LLC for the licensing of
a deepwater port involving a proposed
LNG facility in the Western Gulf of
Mexico has been received by the U.S.
see Sale 196 page 4
News for the
U.S. Offshore
Energy Industry
www.OffshoreSourceJobs.com
Crude-oil futures rose to as high as $62.10 a barrel early July 7th, setting a
new record, after severe weather shut down several oil and gas rigs in the Gulf of
Mexico, intensifying anxiety over whether U.S. inventories are adequate in the
short run to meet strong demand. The spike came as a series of explosions
rocked London, injuring dozens and bringing its transport system to a virtual
standstill. Tropical Storm Cindy forced the shut-in of 12.7% of daily oil produc-
tion, representing 190,506 barrels, in the Gulf of Mexico, reported the U.S.
Minerals Management Service. Prices surpassed the previous record of $60.95
on June 27. They're up around 70% from a year ago and up 44% year to date.
Special Interest
Dennis Fixes Artificial Reef
Powerful waves and currents
generated by hurricane Dennis
uprighted the 510-ft. USS Speigel
Grove which was laying on its
side after things went wrong dur-
ing its sinking. In 2002, work
crews planned on slowly sinking
it to the bottom in the Florida
Keys National Marine Sanctuary,
but the 6,880-ton ship sank pre-
maturely with the bow jutting
above the surface creating a navi-
gation hazard. Divers using air USS Speigel Grove Upright in the
bags then managed to roll it over Florida Keys National Marine
on its side to make it safe. The Sanctuary
vessel now sits as it was original-
ly intended.
www.positioningmapping.com
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 Table of Contents
www.OffshoreSource.com
www.OffshoreSourceJobs.com
Headlines 1 Offshore At-A-Glance 14
August, 2005
Volume 7, No. 8 List of Advertisers 3 Stock Watch 15
Dan G. White Oil & Gas News 4 Communications 16
Publisher & Editor
Kevin Peterson Alternative Energy 7 Subsea Intervention 17
Financial Editor
Mj McDuffee Survey & Mapping 8 Company Spotlight 18
V.P. Sales & Marketing
Inger Peterson Exploration & Drilling 10 Construction 19
Editorial Assistant
Sharon White Shipyards & Equipment 11 Company News 20
Circulation
Stef Russell
Supplier News 12 Events Calendar 21
Graphic Design
Musings from the Oil Patch 13 Marketplace 22
ADVERTISING SALES
Texas
Brad Parro
Phone (281) 994 4053
Fax (281) 994 4054
E-mail: bparro@tscholdingsgroup.com

Louisiana
Kirk Roth
Phone: (337) 303 3716
k_roth@bellsouth.net

Technology Systems Corporation

PO Box 1096, Palm City,
Florida 34991-1096, USA
Tel: +1 (772) 221 7720
Fax: +1 (772) 221 7715
E-mail: info@offshoresource.com
Website: www.offshoresource.com
ISSN 1526-8101
Offshore Source is published monthly by
Technology Systems Corporation, 7897
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Florida, 34997. Offshore Source, Copy-
right ©2005, Technology Systems
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Offshore Source August, 2005 3


Oil & Gas News
continued from page 1
BP Thunder Horse
began collaborating to establish a Unified
Command in Morgan City, Louisiana.
BP’s Thunder Horse on Monday, July 11th
On Tuesday (July 12), crews placed aboard
the BP-operated Thunder Horse platform,
restored partial power to the platform, and began
pumping operations at approximately 4 p.m.
which continued overnight to restore the platform
to a normal marine configuration. The crews also
retrieved the platform’s data recorders, which will
be used to determine the cause of the stability
imbalance that saw the platform list to port at an
estimated 20 degrees. The crews boarded the BP
operated facility following safety evaluations that
included reviews by BP staff and the U.S. Coast
Guard’s Federal On-Scene Commander, and an
underwater inspection of the facility by remotely
operated vehicles (ROVs). The ROV inspection
showed no evidence of damage to the platform’s
hull. BP’s response team worked with staff from
the U.S. Coast Guard to return Thunder Horse to
normal status. In addition to four BP-contracted
response vessels, the Coast Guard made available
the Cutter Pelican, and additionally supported the
operation with a Dauphin helicopter.
Weather cooperated with the response team
on Wednesday, enabling them to begin covering
ballast inlets and instrumentation ports on the
hull.
The safety of all response personnel remains
the highest priority. There have been no reports of
any major injuries to response personnel.
U.S. Coast Guard personnel from Marine
Safety Office, Morgan City, Louisiana, remain on
scene and continue to monitor operations and pro-
vide emergency spill response, if needed. There
have been no reports of environmental impacts in
the area and the Coast Guard cutter Pelican
remains on scene to provide any needed search
and rescue support and to enforce a one-mile
safety zone around the recovery operations.
At press time BP reported that steady progress
was being made in righting the semisubmersible
platform. The platform’s decking is now 46 ft.
out of the water and the list has been reduced to 5
degrees. Thunder Horse was not due to start pro-
duction until the end of 2005 and the platform is
not yet connected to any subsea wells.
Disaster Averted Unlike Petrobras P-36
Seeing the images of Thunder Horse brought
immediate thoughts of the Petrobras P-36 disaster.
On March 15, 2001 the $350 million P-36
semisubmersible production platform was fatally
damaged by explosions which caused the rig to
eventually sink on March 20th in 1,350 meters of
water in the Roncador field in the Campos Basin
offshore Brazil. The disaster killed 10 workers
and injured several others. Salvage of the rig was
deemed impossible.
The Petrobras P-36 semisubmersible sank on March 20, 2001 in 1,350 meters of water.
4 Offshore Source August, 2005
ABOUT THUNDER HORSE
Moored Semi-submersible PDQ (Modularized
Production, Integrated Drilling and Quarters);
ABS Classed and Certified “Floating Offshore
Installation”; All Subsea Wells
Location: Mississippi Canyon 778/822
Operator: BP (75%)
Partner: ExxonMobil (25%)
Water Depth: 6050 ft (@ PDQ location)
Design Life: 25 years
Processing Capability
Annualized average throughput - Oil
250,000 BOPD
Annualized average throughput - Gas
200 MMSCF
Topsides Description
3 production / utilities modules
Main Power Generation Capability: 90 MW
Derrick:2MM lbs Maximum;
Quarters:229 persons
Hull Description
Lightship weight: 75,000 metric tons
Dry Transport weight: 59,500 metric tons
Hull Displacement: 129,000 metric tons
Main Deck: 112 x 136 m
Normal Draft: 30 m
Pontoon Height: 11.5 m
Deck Freeboard: 17.5 m
Discovery Announced: July 15, 1999
First Oil: 2005
Thunder Horse Field
Discovered in 1999, the Thunder Horse
Field development is designed to utilize the
largest Production Drilling Quarters (PDQ) semi
submersible platform in the world. It weighs
more than 50,000 tons and will produce from
some of the deepest wells in the Gulf. The facil-
ity is designed to process 250,000 b/d and 200
mmcf/d with first oil expected in 2005 oil and
gas is planned to be transported to existing shelf
and onshore interconnections via the Mardi
Gras Transportation System.
BP operates the development (75% interest),
with co-venturer ExxonMobil owning the bal-
ance.
• Thunder Horse consists of two adjacent
fields (‘north’ and ‘south’) being developed
together.
• Reservoirs are Upper Miocene turbidite
sandstones.
• Field will be developed via semi-sub-
mersible Production / Drilling / Quarters facility,
supported by a network of 25 wet-tree subsea
wells.
• Export is via separately funded and
approved Mardi Gras export pipelines.
• Project is in the execution phase currently,
with the Hull having been built in Okpo, Korea,
and the topsides modules built in Morgan City,
Louisiana.
• Pre-drilling program is underway.
continued from page 1
Sale 196
Coast Guard and the Maritime Administration. Bidders should be aware that
this proposed facility will affect certain blocks in the High Island and West
Cameron Areas.
Finally, the final notice of sale also restates a recently adopted regulation
that was not included in the proposed notice of sale. The final rule, effective
April 29, 2005, amends regulations to correct an unintended potential gap and
administrative oversight in the original deep gas royalty rule by making leas-
es located partly in water deeper than 200 meters and issued during lease sales
held in 2001 and later years expressly eligible for royalty relief for drilling
deep gas wells on leases not subject to deep water royalty relief.
This lease sale incorporates a continuation of previously adopted lease
terms and conditions relative to recent Western GOM lease sales.
Statistical Information (Lease Sale 196):
Size: 3,762 unleased blocks: 20.3 million acres
Initial Period: 5 years for blocks in water depths less than 400 meters:
1,762 blocks
8 years for blocks in water depths of 400 to less than 800
meters: (pursuant to 30 CFR 256.37, commencement of
an exploratory well is required within the first 5 years of
the initial 8-year term to avoid lease cancellation):
358 blocks
10 years for blocks in water depths of ≥ 800 meters:
1,642 blocks
Minimum Bonus Bid Amount:
$25.00 per acre or fraction thereof for water depths less
than 400 meters: 1,762 blocks
$37.50 per acre or fraction thereof for water depths 400
meters or deeper: 2,000 blocks
Rental/Minimum Royalty Rates:
$6.25 per acre or fraction thereof for water depths less than 200 meters:
1,576 blocks
$9.50 per acre or fraction thereof for water depths 200 meters or deeper:
2,186 blocks
Royalty Rates:
16-2/3% royalty rate in water depths less than 400 meters:
1,762 blocks
12-1/2% royalty rate in water depths 400 meters or deeper:
2,000 blocks
Royalty Suspension Areas:
0 to less than 200 meters: 1,576 blocks
400 to less than 800 meters: 358 blocks
800 to less than 1,600 meters: 902 blocks
1,600 meters or deeper: 740 blocks
The Final Notice of Lease Sale 196 will be posted on the MMS Website at
http://www.gomr.mms.gov. In addition, copies of the document are available
from the MMS Gulf of Mexico Regional Office, Public Information Unit,
1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123. Telephone
(504) 736-2519, toll free 1-800-200-GULF.
MMS Issues Final Report on
Climatology in GOM
The Minerals Management ocean color, and sea surface height.
Service (MMS), Gulf of Mexico These data were used to develop
OCS Region, announced the avail- oceanfront analyses in the Gulf of
ability of a new study report, Mexico, which provided the “charac-
Climatology of Ocean Features in the teristic” position of the fronts for a
Gulf of Mexico, Final Report. given month. It is expected that these
The climatology of certain ocean statistics and the related interpreta-
features in the Gulf of Mexico tion and discussion of Gulf of Mexico
described in this report was devel- ocean climatology included in this
oped using datasets that span long report will be useful in planning field
periods (as long as 32 years in some programs, to marine biologists, to
cases) to create climatological statis- oceanographers, as background
tics. Twelve separate statistics were information for environmental
created, some of which described impact statements, in evaluating and
characteristics of the Loop Current, directing improvements for models
while others were involved with that calculate the ocean dynamics in
warm-core eddies that separate from the Gulf of Mexico, and for oil and
the Loop Current and cold-core gas operations in the Gulf of Mexico.
eddies. The data resources used to This report is available only in
create this climatology included ana- compact disc format from the
lyzed in-situ data from ships of Minerals Management Service, Gulf
opportunity, from field programs in of Mexico OCS Region, at a charge
the Gulf of Mexico, and from the of $15.00, by referencing OCS Study
projects managed by the various oil MMS 2005-031. The report may be
and gas companies. However, the ordered through the Minerals
principal data used for this study Management Service’s on-line order-
were satellite remote-sensing data ing system at www.gomr.mms.gov/-
including sea-surface temperature, WebStore/front.asp.
10 Year Demand Forecast Report
A data report available from
Energyfiles in association with Douglas-
Westwood will revolutionize the analysis
of future oil trade balances and potentially
rewrite oil price forecasts advocated by
such luminaries as the CEOs of Shell and
BP. Having predicted, and now witnessed,
the first oil price surge Energyfiles has
decided to publish its comprehensive ten-
year dataset, forecasting oil and gas pro-
duction, consumption and trade in every
producing country in the world.
Energyfiles Director Dr. Michael R.
Smith, and lead analyst, says “the ten-year
data demonstrate that it is no longer appro-
priate to accept glib demand forecasts from
oil companies, financial institutions and
governments that predict, with wishful
thinking, evergrowing demand levels, con-
trary to observations on oil supply.
Suggestions that oil consumption will
grow to up to 120 mm bbls per day by 2020
and that automobile and airline traffic will
increase at extraordinary rates are futile
and damaging to policy makers.”
“Such forecasts, divorced from reality,
fail to take account of tight supply condi-
tions and rising prices. We will be unable to
produce oil at these rates without unbeliev-
able step changes in technology. After
2010, and for periods before this, oil sup-
ply limitations and prices will seriously
subdue energy demand unless suitable liq-
uid alternatives are developed.”
Surging oil price
For example Lord Browne of BP has
said that oil prices are likely to remain
above $40 a barrel but only until new sup-
plies come onstream in a few years. Albert
Bressand, a vice president of Shell, offers a
scenario coherent with a long-term price
Schlumberger Reports $3.43 Billion in Second Quarter
Schlumberger Limited (NYSE:SLB)
reported second-quarter 2005 operating
revenue of $3.43 billion versus $3.16
billion in the first quarter of 2005, and
$2.83 billion in the second quarter of
last year. Income from continuing oper-
ations was $473 million, or $0.78 per
share-diluted, versus $0.65 before
charges and credits in the previous quar-
ter, and $0.49 before charges and credits
in the second quarter of last year.
Income from continuing operations,
including charges and credits, was
$0.78 per share-diluted, versus $0.87 in
the previous quarter and $0.43 in the
second quarter of last year. Net income,
Offshore Source August, 2005
range in the $30 to $40 range, whilst the
CEO of Shell said in early June that energy
demand in the next 30 years will grow
faster than in the past three decades.
Meanwhile Geoff Curry, head of commod-
ity research at Goldman Sachs recently
said, “the real problem is a lack of refining
capacity.”
Careful forecasts of supply data do not
support such speculations. “Projections in
‘Oil and Gas 2006’ are consistent with rap-
idly rising prices after 2010 accompanied
by painful conservation,” Smith says.
“Sufficient new supplies will not come
onstream to replace the inexorable deple-
tion of existing fields, especially those old,
100 or so, giant fields responsible for
around 65% of global supply, such as
Ghawar (1948) and Safaniya (1951) in
Saudi Arabia, and Burgan (1938) in
Kuwait.”
Some commentators are less sanguine
than BP and Shell. John Westwood, MD of
Douglas-Westwood, and publisher of ‘The
World Oil Supply Report’ now in its 3rd
edition, said that, “over the longer term a
sustained increase in oil prices is likely as
a global energy supply gap develops and
real cost increases materialize.” This report
is by the same author as ‘Oil and Gas
2006’, but its 0% to 3% demand scenario
has recently been reproduced by the
Economics, Industry & Finance Ministry
of the French Government. The Ministry
comments on the likelihood of a produc-
tion plateau sooner rather than later, a sub-
ject seldom brought up by government
ministries and never by financial depart-
ments.
“Many of the technologies to find and
produce onshore oil were developed early
in the 20th Century,” says Smith, “ and
including discontinued operations, was
$482 million or $0.80 per share-diluted,
compared to $0.86 in the previous quar-
ter, and $0.59 in the second quarter of
last year.
Oilfield Services revenue of $3.04
billion increased 10% sequentially and
20% compared to the same quarter of
last year. Pretax business segment oper-
ating income of $674 million increased
21% sequentially and 48% year-on-
year.
WesternGeco revenue of $383 mil-
lion increased 1% sequentially and 31%
year-on-year. Pretax business segment
operating income of $58 million
with offshore operations appearing in the
1950s increases in demand have easily
been met by supply. Of course oil
exporters, especially The Texas Railroad
Commission in the 1930s and the OPEC
alliance after 1973, have artificially created
upward pressure on price by collaborating
to restrict output.”
“However at the end of 2003 times
were changing. Exceptional demand
growth in Asia, coupled with flagging lev-
els of output from non-OPEC countries,
has created a new capacity-constrained
environment. At such a critical time, with
oil and gas still uniquely important to the
health of the global economy, it is impor-
tant to take a global and integrated long-
term look at supply and demand levels of
oil and gas, both onshore and offshore.”
Plan B - gas
Gas too is a versatile fuel, and is even
more geologically widespread. However it
is unsuitable for use in transport except
when expensively converted into a liquid
or used to create a fuel substitute such as
hydrogen.
Smith points out that “with rapid
growth of the LNG industry, a global gas
market is now developing, which is in turn
kick-starting new local and regional gas
markets, allowing the commercialization
of remote, undeveloped or wasted gas
accumulations. Gas is now replacing oil
wherever it can. However gas supply needs
an infrastructure, which takes time to
install and may not immediately be cost-
effective, and hardly ever for private trans-
port. As an example Russian gas is expect-
ed to support growing UK needs but pro-
jections show that Russia will actually have
less gas to export westwards over the next
decade. Output will only pick up after 2015
as new volumes appear in Arctic Russia.”
A global imbalance
Until 2010 oil supplies will struggle to
keep up with demand causing intermittent
upward pressure on prices as the
decreased 9% sequentially but increased
three-fold year-on-year.
Schlumberger Chairman and CEO
Andrew Gould commented, “Second-
quarter results showed sharp improve-
ments across all geographical areas and
technologies, both year-on-year and
sequentially, as customer spending
plans accelerated worldwide.”
“In Russia, the cooperation and con-
fidence established during the initial
period of our minority holding of
PetroAlliance has confirmed our belief
that the company will play a major role
in our continued expansion. We are
therefore very pleased to announce the
Oil & Gas News
supply/demand ratio swings in and out of
balance. After 2010 upward pressure will
be permanent. The near term effect on the
economies of countries will differ depend-
ing on their level of development, location,
dependence on imported oil, and availabil-
ity of other raw energy materials and/or
infrastructure to produce fuel alternatives.
Gas, the best short-term substitute, will
be available only if investment in infra-
structure, above all long distant pipelines
and LNG conversion and receiving plants,
is well advanced.
US Federal Reserve Chairman Alan
Greenspan said in 2005 that oil markets
might stay turbulent “for some time to
come,” but he predicted that, “high prices
will spur the use of cheaper alternatives
well before the world's oil reserves are
depleted”. “Projections in ‘Oil and Gas
2006’ show that gas will be this key alter-
native fuel,” Smith says, “but not without
the transport industry revolutionizing itself.
Increasing investment in public electrified
systems and reduction in aircraft and auto-
mobiles is inevitable, as is fierce global
competition and painful conservation.”
Using information from the Energyfiles
database ‘Oil and Gas 2006: Global ten-
year projection’ is a comprehensive quanti-
tative survey of oil and gas production,
consumption and trade. The data are divid-
ed into 5 parts. The first 4 include countries
within the megaregions of: Americas;
Europe and the FSU; Africa and the
Middle East; and the Asia -Pacific.
The 5th part contains summations of
regions within these trading blocs. Each
dataset is a 10- year historic and 10-year
projected production, consumption and
trading series, split into oil/gas and
onshore/offshore where appropriate. Parts
can be purchased individually if preferred.
‘Oil and Gas 2006: Global ten-year
projection’ is published by Energyfiles Ltd
in association with Douglas-Westwood. It
contains over 275 pages, 500 figures and
250 tables and covers 129 countries and
regions.
For further information contact:
Michael R. Smith, Energyfiles Ltd.
Tel: +44 1494 873352
Email: admin@energyfiles.com
Web: www.energyfiles.com
Lesley Lindsay-Watson
Douglas-Westwood Ltd.
Tel: +44 1227 780999
Email: admin@dw-1.com
Web: www.dw-1.com
acquisition of a further 25% equity
stake.”
“With growing demand for Q tech-
nology across the world, WesternGeco
has announced the conversion of a sixth
seismic vessel to the new standard. The
vessel will enter service in the second
quarter of 2006. The previously
announced fifth Q vessel is already in
service.”
“While the supply response has
begun, it has not yet reached a level, or
been underway long enough, to make a
meaningful improvement in production
capacity. The coming quarters will see
further increases in activity.”
5
 MMS Announces High Bids of
Oil & Gas News $342.027,467 for Lease Sale 194
The Minerals Management Service has accepted high
bids valued at $342,027,467 for 403 tracts offered in Oil and
Gas Lease Sale 194 and awarded leases to the successful
high bidders. Funds from the total high bids will be distrib-
uted to the general fund of the U. S. Treasury, shared with
the affected States, and set aside for special uses that bene-
fit all fifty states.
The leases were awarded following the completion of an
extensive two-phase bid evaluation process to ensure that
the Federal government receives a fair monetary return for
the public mineral resources it makes available.
Lease Sale 194, held March 16, 2005, attracted 80 com-
panies submitting 651 bids on 428 tracts totaling
$540,254,193. Of the 428 tracts receiving $353,961,798 in
high bids, MMS rejected 19 high bids totaling $11,931,635
as insufficient for fair market value. MMS accepted the high
The top five companies with the highest number of accepted high bids for Sale 194 are the following:
Company No. of Accepted High Bids
Dominion Exploration & Production, Inc. 25
Focus Exploration, LLC 25
Murphy Exploration & Production Company – USA 22
LLOG Exploration Offshore, Inc. 22
Energy Partners, Ltd. 21
The top five companies with the highest total bonus accepted are the following:
Company No. of Accepted High Bids
Dominion Exploration & Production, Inc. 25
LLOG Exploration Offshore, Inc. 22
Murphy Exploration & Production Company – USA 22
Spinnaker Exploration Company, LLC 18
Energy Partners, Ltd. 21
BHP OKs Neptune Development
Owners of the Neptune discovery have agreed to chip in
$850 million to develop their Gulf of Mexico deepwater oil
and gas field, situated in the prolific Atwater Foldbelt play
along with several other major discoveries on the same geo-
logical trend, including Atlantis and Mad Dog.
Neptune operator BHP Billiton and partners Woodside
Petroleum, Marathon Oil and Maxus Exploration, sub-
sidiary of Repsol YPF, also have tapped Canada’s Enbridge
to build and operate $100 million worth of lateral oil and
gas pipelines necessary to transport Neptune’s production
to market.
Neptune represents several firsts for the U.S. Gulf. It
would be BHP’s first operated project and Woodside’s first
production in the region. BHP and Woodside, Australia’s
largest producers, hold large exploration positions in the
Gulf. Neptune would be Enbridge’s first oil line in the Gulf.
Neptune is a major development relatively close to
Enbridge’s existing Green Canyon pipeline infrastructure
and Neptune would provide a new natural gas supply and
potential for additional supply sources for the existing
Cleopatra, Manta Ray and Nautilus offshore pipeline sys-
tems, all partially owned by Enbridge.
Plans call for Enbridge to construct and operate a natu-
ral gas lateral pipeline that would consist of 23 miles of 12-
3/4-inch diameter pipe and an oil lateral made up of 23
miles of 20-inch diameter pipe. The laterals would have the
capacity to deliver more than 200 million cubic feet of nat-
ural gas per day and roughly 50,000 barrels of oil per day.
Neptune, about 120 miles from the Louisiana coast in
Repsol Invests in Neptune
Spanish-Argentine oil and energy company Repsol YPF
SA (REP) said it will invest $130 million in the Neptune oil
and gas field off the coast of Louisiana in the Gulf of
Mexico.
The Neptune field is being developed by a consortium
of companies including Repsol YPF unit Maxus
Exploration, BHP Billiton Ltd (BHP), Marathon Oil Corp.
(MRO) and Woodside Energy Inc., a subsidiary of
Woodside Petroleum Ltd. (WPL.AU).
The consortium estimates total development costs for
the Neptune Field to be around $850 million and that its
recoverable reserves are in the range of 100 million to 150
million barrels of oil equivalent. First oil is expected by the
end of 2007.
Visit www.repsolypf.com
6 Offshore Source August, 2005
bids on 409 tracts for an amount of $342,030,163. One com-
pany declined its six awarded leases. This action resulted in
the forfeiture of the 1/5th bonus bid deposit for each lease
for a total of $674.00. The remaining 4/5th bonus, not col-
lected, resulted in a total net amount to the MMS of
$342,027,467 for 403 tracts in Lease Sale 194.
“The highest bid accepted on a tract was $21,157,755 by
Dominion Exploration & Production, Inc. and Stone Energy
Corporation for West Cameron 132. This tract is in shallow
water and received eight bids”. said Gulf of Mexico
Regional Director Chris Oynes, “Sale 194 indicates the con-
tinued strong interest of major and independent oil and gas
companies in the Gulf. The results of the sale also indicate
a continuing interest in shallow-water areas, with fifty-
seven percent of the tracts receiving bids in less than 200
meters of water.”
Sum of Accepted High Bids
$52,300,892
$10,176,565
$27,685,175
$34,859,680
$14,817,037
Sum of Accepted High Bids
$52,300,892
$34,859,680
$27,685,175
$16,145,075
$14,817,037
water depths ranging from 4,200 to 6,500 feet, has estimat-
ed recoverable reserves of 100 million to 150 million bar-
rels of oil equivalent. BHP has a 35 percent stake in the
field, followed by Marathon with 30 percent, Woodside
with 20 percent and Maxus with 15 percent.
Pipeline connection to offshore production facilities is
scheduled for the second quarter of 2007, with first pro-
duction expected by year-end 2007. The Neptune facility
has a design capacity to produce up to 50,000 barrels of oil
and 50 million cubic feet of gas per day. BHP’s share of the
project is $300 million.
The field comprises Atwater Valley blocks 573, 574,
575, 617 and 618. The production facility would be in
about 4,250 feet of water.
A standalone, tension-leg platform has been selected for
the development, BHP said, adding that facilities, wells,
and completions “are proven designs” that have been used
successfully in the deepwater Gulf. The wells, subsea sys-
tems, flowlines, floating systems, topsides and risers will
be designed, procured, fabricated and operated by BHP on
behalf of the Neptune joint venture partners.
Neptune, found in 1995, was the first discovery in the
western Atwater Foldbelt, with an initial appraisal well
(Neptune-2) drilled in 1997. Neptune-3, drilled in 2002,
encountered about 130 feet of net pay. Neptune-5, drilled in
2003, found a whopping 500 feet of net pay in a 1,200-foot
column. And Neptune-7, drilled in 2004, intersected 114
feet of net pay.—Petroleum News
BISSO Lays Its
First Pipeline
BISSO MARINE recently completed the successful
lay of the company’s first pipeline project. The 220’ x
74’, DLB BIG CHIEF laid and buried approximately
1400’ of 10” pipe in the SOUTH TIMBALIER AREA.
BISSO MARINE divers completed the tie-in portion
form the DLB BIG CHIEF, the entire project was com-
pleted ahead of schedule. The second pipelay project for
BISSO MARINE is a lay, bury and tie-in of approxi-
mately 22,000’ of 6”, this project is expected to begin
following the completion of several structure removals
and a bury project on the current schedule for the DLB
BIG CHIEF.
UK Wind Over 1,000 MW Installed
The UK wind energy industry has now installed
over 1000 megawatts (MW) of wind capacity – mak-
ing it one of only 8 countries in the world to have sur-
passed this figure.
The official opening of the most powerful wind
farm in the UK to date, the 39 turbine 58.5 MW Cefn
Croes wind farm in Ceredigion in Wales, brings the
total to 1037.7 MW from 1273 turbines, which togeth-
er generate sufficient electricity to meet the needs of
well over half a million households – or a fifth of
homes in greater London.
A further six gigawatts of new wind projects will be
up and running in the UK by the end of 2010, split
evenly between on and offshore developments.
Achieving this objective will deliver energy security,
environmental and industrial benefits for the UK
according the the BWEA.
Breaking the gigawatt barrier comes in a record
year of growth for the UK wind industry, with a total
of 18 new wind projects totalling some 500 MW of
capacity expected to be officially commissioned by
year end, taking UK wind generation to over 1% of
UK electricity supply, and on track for expectations of
the sector. The UK wind industry is projected to meet
some three quarters of the Government’s target for
renewables by 2010, representing an investment of
£7bn into the sector, according to a survey carried out
by the BWEA.
ERHC and Pioneer Form Gulf of Guinea
Partnership
Houston-based ERHC Energy Inc.
(OTCBB:ERHE) announced the company is pro-
ceeding with consortium partner Pioneer Natural
Resources in Blocks 2 and 3 of the Joint
Development Zone, in which the Nigeria-Sao Tome
and Principe Joint Development Authority awarded
the consortium interests on May 31, 2005. The con-
sortium originally included Devon Energy as the third
consortium partner, which has since announced its
decision to decline the bid award due to the low inter-
est the company would receive as one of three con-
sortium partners.
ERHC has accepted the awards of its pre-existing
interests in the five blocks in the Joint Development
Zone.
Based in Houston, Texas, ERHC Energy Inc. is an
oil and gas company focused on exploration in the
Gulf of Guinea offshore West Africa. For more infor-
mation, visit the company's website at
www.erhc.com.
Founder of Mar-Vel Dies at 90
Mr. Patrick F. Madison, co-founder of MAR-VEL
International, died the morning of June 10, 2005, after
a brief illness. He was 90 years of age. Mr. Madison,
along with Everett Edmund, founded M&E Marine
Supply in 1946. MAR-VEL Underwater Equipment,
Inc. was a division of M&E Marine. In 2000 the name
was changed to MAR-VEL International, Inc. Mr.
Madison served for many years as president of MAR-
VEL. After his retirement, Mr. Madison played a vital
roll as a member of the Board of Directors even up
until his passing. Mr. Madison was recently nominat-
ed to the Commercial Divers Hall of Fame..
Peak Wins Major Australian Contract
International well construction performance
expert The Peak Group has secured a major contract
with Australian oil exploration company AED Oil
Limited for the provision of its well construction proj-
ect management and procurement services. Peak
has also been contracted to provide a drilling rig for
AED’s production and exploration drilling campaign in
the Timor Sea.
The Peak Group will deliver a complete well proj-
ect management service for three wells located in
AED’s permit area, AC-P-22, within the Ashmore
Cartier area of the Vulcan Sub-Basin, in the
Bonaparte basin. It is approximately 80 kilometers
south west of the commercial Jabiru and Challis
fields. The job will include detailed well design, ten-
dering and contracting for all services, execution of
the drilling programme including materials and logis-
tics, project completion and operations wrap-up. The
Peak Group will also provide a semi-submersible
drilling rig, the ‘Stena Clyde’, and act as project serv-
ice manager for the drilling in AED’s permit area.
Planning and operations management services
will be conducted in Melbourne in close collaboration
with AED Oil and Upstream. Drilling activity is expect-
ed to commence in the second half of 2005 and the
contract value is in the region of AUS $1million.
 Alternative Energy
Oil and Energy Companies Team 0n Hydrogen-
Powered 350 MW Electric Power Station
ConocoPhillips, Shell and Scottish and
Southern Energy (SSE) will begin engineering
the design of the world’s first industrial scale
project to generate “carbon-free” electricity
from hydrogen. The planned project - produc-
ing “decarbonised” fuel and using it for power
generation - would convert natural gas to
hydrogen and carbon dioxide gases, then use
the hydrogen gas as fuel for a 350 MW power
station, and export the carbon dioxide to a
North Sea oil reservoir for increased oil recov-
ery and eventual storage. The project would
reduce the amount of carbon dioxide emitted
to the atmosphere by the power generation by
over 90 percent. While each of the component
technologies making up the project is already
proven, their proposed combination in this
project is a world first.
The project would be located close to
Peterhead in north-east Scotland. A newly
built reformer plant would convert up to 70
million cubic feet of natural gas a day into
carbon dioxide and hydrogen and the hydro-
gen would be used as fuel for a new 350MW
combined cycle gas turbine power station.
The carbon dioxide generated by the
reformer would be exported through existing
pipelines to the mature BP-operated Miller
oilfield, 240 kilometers offshore, where the
platform would be adapted to allow for injec-
tion of the gas into the reservoir four kilome-
ters below the seabed to increase oil recovery
from the reservoir and for storage.
Hybrid Fuel Systems, Inc.
(OTCBB:HYFS), a manufacturer and dis-
tributor of diesel and gasoline conversion
systems, has announced closing the
acquisition of Oklahoma-based DRV
Energy, Inc. (DRV), a manufacturer and
developer of light to medium duty gas
alternative fuel conversion technologies
and alternative fuel fill-stations.
Hybrid CEO Mark Clancy said, “The
most exciting aspect of this acquisition is
the family of commercial-ready, EPA
Certified conversion technologies, which
we can now add to the Hybrid family. DRV
has a history of satisfied clients. We look
forward to ramping up the sales and mar-
keting component of our operation. The
addition of the family of DRV EPA
Certified technologies positions our com-
pany to capitalize on growing demand for
relief from the escalating costs of diesel
and gasoline. The use of compressed nat-
ural gas (CNG), liquid natural gas (LNG)
or propane can have an immediate and
meaningful impact to transportation costs.
Sheri Vanhooser, president of DRV, brings
to us industry experience of systems and
fuelling that has been long awaited by our
management. Sheri will be instrumental in
management of short and long term busi-
ness objectives.”
For more information visit
http://www.hybridfuelsystems.com.
A new report shows that America
can produce 25 percent of its trans-
portation fuel needs from agricultural
crop wastes -- utilizing new processes
developed by the biotechnology industry
while reducing carbon and greenhouse
gas emissions. 'Bringing Biofuels to the
Pump,’ from the National Resources
Defense Council, recommends that the
United States invest $1 billion over the
next 10 years in bioethanol commercial-
ization to “drive the development of the
first billion gallons of bioethanol capacity
at a price approaching that of gasoline
and diesel.” The Biotechnology Industry
Organization supports that recommenda-
tion and agrees with the NRDC that devel-
opment of cellulosic biofuel is economi-
Offshore Source August, 2005
The Miller field is currently due to cease
production in 2006/7 but the injection of
carbon dioxide into the reservoir could
increase the amount of oil extracted from
the field, potentially allowing the produc-
tion of up to 40 million additional barrels of
oil and extending the life of the field by 15
to 20 years.
Initial engineering feasibility studies
into the project have already been complet-
ed. The partners will now carry out further
detailed front-end engineering design work
with the aim of confirming the economic
feasibility of the scheme. This work would
be expected to be complete in the second
half of 2006. This will allow a final invest-
ment decision to be taken next year, subject
to which the project would then be expected
to commence operation in 2009.
The full project would require total cap-
ital investment of some $600 million. It
would also require an appropriate policy
and regulatory framework which encour-
ages the capture of carbon from fossil fuel-
based electricity generation and its long-
term storage.
When fully operational, the project
would be expected to capture and store
around 1.3 million tons of carbon dioxide
each year and provide “carbon-free” elec-
tricity to the equivalent of a quarter of a mil-
lion UK homes.
—RenewableEnergyAccess.com
cally and strategically vital to helping end
America's dependence on imported oil.
"The Senate version of the energy bill
[HR 6] currently in conference committee
contains an 8 billion gallon renewable fuel
standard and establishes a reverse auc-
tion for the production of the first billion
gallons of ethanol made from cellulose-
containing crop wastes," said Brent
Erickson, BIO Executive Vice President of
Industrial and Environmental Biotechno-
logy. “We could be producing up to 25
percent of our transportation fuel needs in
the not-too-distant future by combining
biotechnology and agriculture to produce
bioethanol, and this energy bill will be a
big stimulus to help us meet that goal,” he
added.
The report recommends that the fed-
eral government establish a mix of incen-
tives -- including loan guarantees, tax-
exempt financing and performance incen-
tives -- to aid ethanol researchers and
producers at each step in bringing cellu-
losic biofuels to market. The NRDC also
recommends capping the total amount of
incentives at $1 billion over 10 years, to
ensure that the industry becomes self-
supporting and economically viable. As
technology advances in the next 10 years,
these incentives will lower the costs of
cellulosic biofuel production to “about
$0.93 per gallon -- roughly equivalent to
the current wholesale price of both gaso-
line and ethanol from new corn-based
facilities,” the NRDC predicts.
Biofuels have been shown to reduce
emissions of greenhouse gases. The
“Bringing Biofuels to the Pump” report
contends that use of cellulosic biofuels
can reduce greenhouse gas emissions by
1.7 billion tons per year.
The NRDC therefore recommends
that renewable fuel standards, such as
that contained in the Energy Bill recently
passed by the House and Senate, estab-
lish a cellulosic ethanol blending require-
ment that would reach 1 billion gallons by
2015.
The report is available on BIO’s web
site at http://www.bio.org/ind/.
7

Survey & Mapping
C-Surveyor II AUV
Delivered to C & C
Technologies, Inc.
C & C Technologies’ deepwater AUV, C-Surveyor II™,
was delivered to C & C’s corporate headquarters in
Lafayette, Louisiana on June 3, 2005. C & C purchased the
C-Surveyor II as a base vehicle in November 2004 and has
worked diligently over the last six months to integrate and
build customized components for this next generation sur-
vey AUV.
The design of the C-Surveyor II is modeled after C &
C’s existing state-of-the-art AUV, C-Surveyor I, and
includes a multibeam echosounder, chirp side scan sonar,
chirp sub-bottom profiler, CTD system and a methane
detector. The Edgetech DW106 sub-bottom profiler on
board is customized with narrow transmit and receive
beams to permit significantly deeper seabed penetration. In
addition to the sub-bottom profiler, C & C also has a
Dynamically Focused (DF) sidescan sonar system being
specialized for installation in November 2005. The DF
sidescan sonar will provide five times more resolution than
traditional systems in order to identify smaller objects locat-
ed on the ocean floor.
During the next month, C & C system engineers will
continue to integrate proprietary hardware and software into
the C-Surveyor II AUV. After the integration is complete,
the C-Surveyor II will be mobilized on C & C’s newly pur-
chased 247-foot Norwegian flagged vessel, M/V Northern
Resolution, and begin several surveys currently in the
queue. Today, C & C is a worldwide leader in commercial
deepwater AUV operations with the largest market share of
any operator. Over the last four years, C & C has surveyed
more than 42,000 line-km worldwide on 74 AUV projects.
C & C Technologies provides a variety of survey serv-
ices including high accuracy Globally-corrected GPS serv-
ices, marine construction surveys, high-resolution geophys-
ical surveys and geotechnical surveys including full labora-
tory testing.
For more information regarding C & C Technologies’
services, please send email to info@cctechnol.com.com or
contact Jay Northcutt at (+1) 337-261-0660.
Applanix announced that JUPEM, the government
agency responsible for all topographic mapping in
Malaysia, has purchased its industry-leading POS AV 510
(Position and Orientation System – Airborne Vehicles). The
organization’s Department of Surveying and Mapping
Malaysia (DSMM) will integrate the POS AV with its RC30
aerial camera system to generate accurate geospatial data.
The Applanix POS AV is an integrated inertial position
and orientation system specifically designed to provide
direct georeferencing data for all types of airborne sensors.
The system integrates precision GPS with inertial technolo-
gy to provide real-time and post-processed information for
aerial cameras, LIDAR systems, imaging scanners, and
Synthetic Aperture Radar.
Brad Koziey, Director of Sales for Applanix comment-
ed, “The POSAV 510 integrates with JUPEM’s existing
TrackAir Flight Management System, providing automated
airborne mission control when generating high accuracy
position and attitude data for the RC30 camera. This allows
for the rapid creation of digital maps, orthophotos, and dig-
ital terrain models for JUPEM’s Computer Aided Mapping
System (CAMS) and Fast Mapping System (FMS) pro-
grams currently underway, plus other aerial survey and
remote sensing applications requiring geometrically cor-
rected and geographically encoded data.”
Operating under the Ministry of Natural Resources and
Environment, JUPEM is the leading provider of complete
and up-to-date geospatial information in Malaysia.
Visit www.applanix.com.
8 Offshore Source August, 2005
Geometrics Inc., announced the GeoEel, a 24-bit digital seismic
Digital Seismic streamer. Its wide bandwidth (up to 8KHz) makes it applicable to all
seismic surveys: petroleum, high-resolution engineering, and even
Streamer sub-bottom profiling. Only 1.5 inches (38 mm) diameter and config-
urable with up to 240 channels and multiple streamers, the GeoEel
sends data by Ethernet to any industry-standard low-cost PC. The
GeoEel is the first high-resolution digital streamer to be filled with a
non-toxic, non-flammable silicone oil derivative. This eliminates fire
hazard or fines in environmentally sensitive areas due to accidental
rips or tears in the streamer skin. A comprehensive suite of software
provides real-time gathers, brute stack, GPS integration, trigger tim-
ing, gun monitor and other data visualization, quality control and
instrument tests. The GeoEel’s narrow design is ultra-quiet, making
full use of true 24-bit circuitry. In-water digitization eliminates ground
loops and shipboard electrical noise; resulting in quick, clean quality
installations. The compact GeoEel weighs about 1 kg per meter and
is easily shippable by air as non-hazardous, non-flammable goods.
Unique construction makes systems up to 48 channels deployable by
hand on small vessels. A thick 3.2 mm skin protects the GeoEel in
shallow water and transition zone applications.
Visit www.marinemagnetics.com
Offshore Positioning & Mapping
Conference Announced
Conference to inform offshore Industry of innovations in subsea survey, positioning and mapping tech-
nologies for coastal, shallow & deepwater projects
Technology Systems Corp., pub- Route Survey Navigation Software
lisher of Offshore Source, and the Inspection& Surveillance GPS
organizers for the Offshore Surface Navigation & Positioning ADCPs
Communications and EnergyOcean Subsea Navigation & Positioning Doppler Speed Logs
conferences, is pleased to announce Subsea Mapping Compasses & Gyros
TSC to be the organizer for the 2nd Search, Location & Recovery Buoys
Annual Offshore Positioning and Ship, Spill & Buoy Tracking Long Baseline Positioning
Mapping Conference. Cable & Pipeline Installation Short and Ultra-Short Baseline
This new, exciting and focused Subsea Equip. Installation Lidar
event will again be held in Houston, Coral Reef and Ocean Science
Texas on February 23-24, 2006 The Service Providers of:
conference will be held in the U.S. in Who should Attend Hydrographic Survey
2006, the UK the following year, and All users and providers of off- Search & Recovery
then will continue to flip-flop yearly shore navigation, positioning and Surface Positioning
between the two nations after that. mapping products and services. Towing
The conference is solely dedicat- Ocean science agencies and oil com- Anchor Handling
ed to the state-of-the-art in survey, panies will hear about new technolo- Mooring
navigation, positioning and mapping gy developments and case studies on Airborne Bathymetric Lidar
offshore and along coastlines. The projects around the world. Harbor Survey
conference will bring together all Harbor Surveillance
aspects of navigation, positioning and Who Should Exhibit Archeology
mapping, above and below the ocean Exhibitors may find new markets, Hull Inspection
surface and will utilize all aspects of unrealized as yet as the world’s oil & Platform Inspection
the technology to tie it all together. gas companies stroll though the hall. Treasure Hunting
This year the Oil & Gas industry, The following is a partial list of com- Insurance
now working in both deep and shal- panies who will benefit from exhibit- Naval Test Support
low water will be invited to see the ing at this conference: Seismic
latest in technologies and services Satellites
available to them for the many off- Manufacturers of: Dredging
shore projects planned and underway. Sonars
Underwater Cameras More information will be available soon
Technical tracks will include: Acoustic Modems at www.positioningmapping.com
Hydrographic Survey ROVs/AUVs & Submersibles
RESON Mediterranean Srl has delivered and com- ment of structural and machine movement, designed for the
pleted the installation of a survey system that includes a monitoring of oil platforms, production facilities, pipelines
RESON SeaBat 8124 multibeam system and PDS2000 and pipe laying equipment. They also measure pitch and roll
Software to the Hydrographic Division of the Egyptian of surface and underwater vehicles. The standard housing
Navy. The award also includes training of Egyptian Navy withstands pressures in excess of 100 bars (1,500 psi). The
personnel. internal sensing element is a precision tilt transducer similar
In cooperation with RESON’s Egyptian representative, to those used in aircraft and marine gyroscopes. The high-
Surveying System, RESON Mediterranean Srl delivered gain version measures rotational movements smaller than
and installed a SeaBat 8124 system and accessories, includ- 0.0001 degree, while the wide-angle version, with an oper-
ing a PDS2000 Hydrographic Software Package. RESON ational range up to +/-70 degrees, accurately monitors the
Mediterranean personnel will also provide a full training movement of underwater machinery. DeepWater tiltmeters
course, including both theoretical and practical training on are available with analog voltage, 4-20 mA, RS232 and
the sonar hardware and software. The SeaBat 8124 RS485 outputs.
Multibeam system operates at 200 kHz and is a high accu-
racy system, even on the outer beams. It features an Triton Imaging, Inc. reported that NOAA purchased
advanced bottom detection system that incorporates both Triton’s HarborSuite multibeam and sidescan sonar
amplitude and phase detection methods. acquisition and QC system for use in an underwater port
In addition, Emu Ltd. has recently taken delivery of a security application. The system was purchased by NOAA’s
RESON SeaBat 8101 Multibeam Echosounder. The inte- Navigational Response Team (NRT) which is a component
grated multibeam system is also comprised of RESON within the Office of Coast Survey. The system will be used
PDS2000 Data Acquisition and Processing software, to test the Baseline Port Security (BPS) concept being
RESON SVP-15 Sound Velocity Probe and a TSS MAHRS developed by the U.S. Coast Guard R&D Center. With BPS,
Attitude and Heading Sensor. high-resolution sonar images of high-risk areas of the port
Visit www.reson.com. seabed are periodically collected. The resultant images are
compared with a set of baseline images. Changes are detect-
Applied Geomechanics Inc. (AGI) introduced the ed and suspicious objects are then investigated with divers
Model 802 DeepWater tiltmeter for underwater measure- and/or remotely operated vehicles (ROVs).

Exploration & Drilling
Kerr-McGee Announces
Discovery at East Breaks 599
Kerr-McGee Corp. (NYSE: KMG) announced
further deepwater Gulf of Mexico success with a dis-
covery at East Breaks 599. Kerr-McGee estimates
that the field has potential resources in the range of
10 million to 20 million barrels of oil equivalent
(BOE). The field will be developed as a subsea
tieback to the Kerr-McGee-operated Boomvang pro-
duction hub, located approximately three miles south
on East Breaks block 643. East Breaks 599, located
in 3,220 feet of water, is operated by Kerr-McGee
with a 33.34% interest. Kerr-McGee’s partners in
East Breaks 599 are Amerada Hess Corp. (NYSE:
AHC) and Marubeni Oil & Gas (USA) Inc., each
with a 33.33% interest.
The East Breaks 599 well, spud on May 27,
was drilled to a total measured depth of 9,142 feet
and encountered more than 135 net feet of high-
quality oil pay in several sands. The well will be
temporarily abandoned for completion in early
2006.
“Our deepwater hub-and-spoke strategy for
developing core areas continues to add value
through satellite successes such as the East Breaks
599 discovery,” said Dave Hager, Kerr-McGee sen-
ior vice president responsible for oil and gas explo-
ration and production. “We plan additional satel-
lite exploration in the East Breaks area, with a
four-well exploratory program at Northwest
Nansen near our Nansen production hub. We
expect to spud the first well later this summer and
estimate that the combined resource potential for
the four fault blocks is in the range of 20 million to
50 million BOE.”
The exploratory well at the Chilkoot prospect,
located on Green Canyon block 320, is noncom-
Transocean Gets $985M
for Rigs in Brazil
Transocean Inc. (NYSE:RIG) has announced
that the board of directors of Petroleo Brasileiro S.A.
(Petrobras) has approved contract awards for five of
the company's rigs totaling 19 rig years and an esti-
mated $985 million in revenues, excluding revenues
for mobilization, demobilization, performance
bonus opportunities and client reimbursables. The
contracts were approved for the drillships
Deepwater Navigator and Peregrine I and semisub-
mersible rigs Sedco 707, Sedco 710 and Transocean
Driller. Each rig is currently located in Brazil and all
of the units with the exception of the Peregrine I are
currently under contract to Petrobras.
The contract approved for the Deepwater
Navigator, a dynamically positioned drillship capa-
ble of drilling in water depths of up to 2,000 meters,
has a four-year term which is expected to commence
in October 2006, in direct continuation of the rig's
current and expected contract commitments.
Estimated revenues of $263 million could be gener-
ated over the four-year contract period.
A three-year contract was approved for the
Peregrine I, a dynamically positioned drillship capa-
ble of drilling in water depths of up to 1,500 meters
and is expected to commence in November 2005 fol-
lowing an estimated 120-day planned upgrade in a
shipyard in Brazil, where the rig is currently idle.
Estimated revenues of $123 million could be gener-
ated over the three-year contract period. Additional
revenues are possible through a performance bonus
opportunity of up to 20%.
The contract approved for the Sedco 707, a
dynamically positioned semisubmersible rig capable
of drilling in water depths of up to 2,000 meters, is
for four-years and should commence in January
2006 following the completion of the rig's current
contract commitment and an estimated 60-day
planned shipyard program. Estimated revenues of
$263 million could be generated over the four-year
contract period.
10
mercial based on results to date. Well data is
being evaluated and upon completion, additional
appraisal will be considered. The well, drilled to
a company-record measured depth of 32,023 feet,
is being temporarily abandoned and will be con-
sidered for future re-entry or sidetrack. Chilkoot
is the deepest penetration in western Green
Canyon and the data obtained is important to the
geological understanding in this under-explored
area where Kerr-McGee holds interests in approx-
imately 35 blocks. Kerr-McGee operates
Chilkoot with a 33.33% interest.
The rig will be moved from Chilkoot to the
Conquest prospect, located on Green Canyon
block 767 in the company’s Constitution corridor.
Following the Conquest appraisal, the company
expects to spud the West Covington prospect on
Green Canyon block 765. Kerr-McGee operates
Conquest and West Covington with 50% working
interests. Conquest and West Covington have an
estimated gross resource potential in the range of
90 million to 240 million BOE and could add sig-
nificant value in the Constitution area. The
Constitution hub, which includes the development
of Ticonderoga through a subsea tieback, is Kerr-
McGee’s sixth-operated deepwater hub in the Gulf
of Mexico. First production is expected in mid-
2006.
Kerr-McGee estimates its second-quarter
exploration expense will be approximately $135
million, which includes an approximate $18 mil-
lion charge related to Chilkoot.
For more information, visit www.kerr-
mcgee.com.
A four-year contract for the Sedco 710, a
dynamically positioned semisubmersible rig capa-
ble of drilling in water depths of up to 1,200
meters, was approved and should commence in
October 2006 in direct continuation of the rig's
current contract commitment. Estimated revenues
of $175 million could be generated over the four-
year contract period. Additional revenues are pos-
sible through a performance bonus opportunity of
up to 10%.
The contract approved for the Transocean
Driller, a semisubmersible rig capable of drilling
in water depths of up to 1,050 meters, has a four-
year term which is expected to commence in
August 2006 in direct continuation of the rig's cur-
rent contract commitment. Estimated revenues of
approximately $161 million could be generated
over the four-year contract period. Additional rev-
enues are possible through a performance bonus
opportunity of up to 10%.
The Deepwater Navigator, Peregrine I, Sedco
707 and Sedco 710 are four of the 32 High-
Specification rigs in the Transocean Inc. fleet, 28
of which are deepwater rigs, capable of drilling in
water depths of 1,370 meters and greater. The
Transocean Driller is one of 24 Other Floaters in
the company's fleet that service the mid-water seg-
ment of the market.
Transocean Inc. (RIG) also reported that an
international oil and gas operator has committed to
a contract for one of its deepwater rigs, which
could mean $234 million or more in revenue to the
driller. Transocean didn't name the operator but
said the two-year contract should begin later in
2006. Brazil's Petrobras (PBR) currently is under
contract for the drill-ship, the Deepwater Frontier.
The contract announced and the Petrobras pact
could result in additional revenue for Transocean
from, for example, performance bonuses.
Nexen Petroleum revealed that the Unocal-operated Green
Canyon block 512 Knotty Head exploration well encountered more
than 300 ft. of apparent hydrocarbon pay in a secondary objective
according to measured-while-drilling logs. The well is currently
drilling ahead at 29,670 feet and has yet to penetrate the primary
objective in the lower Miocene section. The well is planned for a total
depth of 32,500 feet. Unocal operates the well with a 25% stake.
Nexen, BHP Billiton and Anadarko each hold a 25% stake in Knotty
Head.
Rowan Companies' subsidiary, LeTourneau, has entered into
a contract to furnish vessel design and components (a LeTourneau
kit) for the construction of two Super 116 Class jack-up drilling rigs.
The rigs will be built by Keppel AmFELS for Scorpion Offshore. The
LeTourneau kits, which comprise of the rig's legs, jacking systems,
cranes and certain other components, will be delivered in stages in
accordance with the construction schedules. Rowan expects the
contract to provide approximately $55 million in revenue during 2006
and 2007.
GlobalSantaFe Corporation (NYSE: GSF) announced that its
report of drilling rig status and contract information has been updat-
ed as of July 7, 2005. The drilling rig status and contract informa-
tion report on GlobalSantaFe's offshore drilling fleet is available in a
condensed format via the company's Web site at http://www.global-
santafe.com . The report is located in the "Investor Relations/SEC fil-
ings" section.
Rowan Companies, Inc. (NYSE:RDC) announced that it has
been awarded a term drilling contract for use of the Rowan Gorilla VII
in the North Sea commencing in August 2005.The contract provides
for a one-year term with a minimum work commitment of nine
months, and includes an option for a second year. Rowan estimates
that contract revenues, based on a one-year term, will be approxi-
mately $65 million. The Gorilla VII is currently carrying out decom-
missioning activities on the Ardmore Field in the North Sea which the
Company expects to conclude during July.
Stabil Drill, a Superior Energy Services company, recently
opened a full-service facility in Baku, the capital city of Azerbaijan,
Stabil Drill CEO Sammy Russo announced. Stabil Drill provides pre-
mium quality downhole drilling equipment to the worldwide oil and
gas industry. Stabil Drill established the location for tool rental, repair
and maintenance through a joint venture with Caspian Oil Services.
The location will offer stabilizers, subs, hole openers, roller reamers
and non-mag drill collars, and is API- and ISO 9002-certified. The
location will also refurbish equipment when necessary according to
American Pipe Institute (API) specification.
Drilling rig status and contract information on Transocean
Inc.'s offshore drilling fleet has been condensed into a report
titled "Transocean Fleet Update," which is available through the
company's Worldwide Web address at www.deepwater.com. The
report is located in the "Investor Relations/Financial Reports"
section. By subscribing to the Transocean Financial Report
Alert, you will be immediately notified when new postings are
made to this page by an automated e-mail that will provide a link
directly to the page that has been updated. Shareholders and
other interested parties are invited to sign up for this service.
McMoRan reported a net loss of $8.8 million, $0.36 per
share, for the second quarter of 2005 compared with a net loss
of $11.2 million, $0.65 per share, for the second quarter of 2004.
McMoRan's net loss from its continuing operations for the sec-
ond quarter of 2005 totaled $7.4 million, which includes $2.6 mil-
lion of start-up costs associated with the MPEH(TM) and $21.0
million of exploration expense. During the second quarter of
2004, McMoRan's net loss from continuing operations totaled
$9.1 million, including $1.7 million of MPEH(TM) start-up costs
and $10.1 million of exploration expense.
McMoRan continued active exploration drilling under its $500
million exploration venture with positive results at Vermilion
Blocks 16/17 (King Kong) and four wells in progress.
In July 2005, the King Kong discovery well at Vermilion
Blocks 16/17 reached a total depth of 18,918 feet and encoun-
tered 14 hydrocarbon bearing sands totaling approximately 150
feet of net pay. Completion under way.
West Cameron Block 43 No. 4, currently drilling below 17,800
feet towards a total depth of 18,500 feet.
McMoRan's share of production averaged 38 Million cubic
feet of natural gas equivalents per day (Mmcfe/d) in the second
quarter of 2005, and 50 Mmcfe/d including approximately 2,000
barrels of oil per day (bbls/d) from Main Pass Block 299 com-
pared with 5 Mmcfe/d in the year-ago quarter. Production at
Main Pass 299 was reinstated on May 6, 2005 at a gross rate of
approximately 4,000 bbls/d.
Third-quarter 2005 production expected to average 35-40
Mmcfe/d net to McMoRan, and 52-57 Mmcfe/d including 2,900
bbls/d for McMoRan's net share of oil production from Main
Pass Block 299. Two development wells are expected to com-
mence drilling in the third quarter of 2005, King Kong No. 2 at
Vermilion Blocks 16/17 and Hurricane No. 2 at South Marsh
Island Block 21.
Offshore Source August, 2005
 BISSO MARINE has been contracted by
GlobalSantaFe Corporation to assist in the
repair of the thrusters on the GSF Development
Driller I and GSF Development Driller II. The
600 ton capacity D/B LILI BISSO will be on loca-
tion in the Grand Island area to assist in the
repair work on thrusters. BISSO MARINE is
also providing logistical and operational support
for the project. GlobalSantaFe delayed the
startup of its two new semisubmersible rigs in
the U.S. Gulf of Mexico after an inspection
revealed defects in the rigs’ thruster nozzles.
The company is investigating the cause and
extent of resulting damage to the thruster noz-
zles on the GSF Development Driller I and GSF
Development Driller II, which were mobilized
from a Singapore shipyard after delivery in the
first quarter of 2005.
Keppel AmFELS, the US wholly owned
subsidiary of Keppel Offshore & Marine
Ltd (Keppel O&M) has signed contracts for
the construction of two jackups with
Scorpion Offshore of Houston, Texas. The
contract price for the two rigs, excluding
Owner Furnished Equipment, is approximate-
ly US$174 million. These are the first two rigs
of the Scorpion fleet, and are expected to be
delivered in 2007 and 2008 respectively.
Keppel AmFELS and Scorpion Offshore are
also currently in discussion for an option for a
third rig. Based on the proven LeTourneau
Super 116 design, the rigs will have leg
lengths of 477 ft and will be capable of drilling
to 30,000 ft deep in water depths of 350 ft. The
rigs have been designed to readily accept
operator-desired upgrades for even deeper
waters and drilling depths. Keppel AmFELS
had constructed rigs based on the
LeTourneau 116 design. These rigs, the Chiles
Columbus and Chiles Magellan (renamed
ENSCO 74 and ENSCO 75), are currently
operating successfully in the Gulf of Mexico.
A new Concentrated Inspection
Campaign (CIC) has been announced by
the Paris MOU Secretariat. It will focus on
compliance of a ship’s radio station with the
Global Maritime Distress and Safety System
(GMDSS). It will also include verification that
radio operators are able to demonstrate that
the station is in a satisfactory working condi-
tion and used for its intended purpose. The
CIC will commence on 1 September 2005 and
will last 3 months, concluding on 30 November
2005.
During every port State control inspection
the ship’s GMDSS, its equipment, operation
and correct recording of communications and
maintenance shall be verified in more detail
for compliance with SOLAS, STCW Code and
ISM Code. For this purpose port State control
officers (PSCO) will apply a questionnaire list-
ing 15 questions in total to cover this concen-
trated inspection. When there are clear
grounds for believing that the requirements
are not met, a more detailed inspection may
be carried out. Deficiencies will be recorded
and the master will be instructed by the PSCO
to rectify these before departure, at the next
port, or within 14 days. Serious deficiencies
may lead to the detention of the ship until they
have been rectified. The Secretariat has
announced the new campaign to the trade
media but information has not yet been posted
to the Paris MOU website: www.parismou.org.
It is suggested that owners contact the
Secretariat directly for more information.
Northrop Grumman Corporation (NYSE:
NOC) has signed an agreement with Jakob
Hatteland Display to provide repairs and serv-
ice for Hatteland products as an authorized
repair center for Hatteland’s family of high-res-
olution flat-screen monitors. Northrop
Grumman’s Sperry Marine business unit will
be responsible for providing worldwide war-
ranty and non-warranty repairs at its service
centers in Rotterdam, Netherlands, Singapore
and New Orleans. Hatteland flat-screen mon-
itors are widely used in the maritime and naval
industries for type-approved shipboard radars,
electronic charting systems and bridge infor-
mation displays, as well as in the medical
industry and other business sectors. Founded
in 1987, Jakob Hatteland Display AS is a fully
owned Norwegian company with branch
offices in Oslo, Norway, Germany and the
United States.
Offshore Source August, 2005
Kongsberg Releases New Neptune
Cargo Handling Simulator Model
Kongsberg Maritime has released a new Neptune Cargo
Handling Simulator model. The new model is called VLCC
Double Hull. It has been released in order to address the present
and future needs of the shipping industry and training institutions
across the world.
The new Double-Hull model is developed following 20 years
of the Kongsberg Maritime single-hull model, which has been
delivered to a number of training facilities world wide. It pro-
vides a much longed for tool for training in very complex full
scale cargo, ballast and cleaning operations simultaneously.
Several enhancements over the previous single-hull model
have been made to provide a simulation model suitable for mod-
ern training, many of which have been directly requested by cus-
tomers. These include the possibility to ‘remove’ the terminal
whilst underway, and the ability to connect proper loading arms.
Working in unison with the world’s maritime training institu-
tions, Kongsberg Maritime is able to steer its continuous simula-
tion R&D in the direction the industry requires. As a result of
strong relationships and extensive simulation development expe-
rience, Kongsberg Maritime can, as in the case of the new
Double-Hull VLCC model answer and exceed customer expec-
tations.
New regulations affecting single hull tankers were adopted in
December 2003 as amendments to Annex I of the MARPOL
Convention, following the November 2002 sinking of the single-
hull tanker ‘Prestige’ off the Spanish coast. More recently, the
LNG Plant Delivered
The world's largest heavy transport vessel the Blue Marlin
of Dockwise Shipping in Breda, The Netherlands steamed to
Melkoya in northern Norway recently, carrying Statoil’s barge-
mounted LNG process plant for Snohvit (Snowy-white).
Dockwise was awarded the contract by Statoil for three sea
transports of the essential parts of the Snohvit LNG export
facility at Melkoya in northern Norway. First the heavy trans-
port vessel Tern transported the Snohvit barge-mounted Meg
Unit and Substation from Flushing, the Netherlands to
Melkoya. After a voyage of 7 days the Tern arrived at her dis-
charge location on 13 February 2005.
The second transport was performed by the Swan. The
barge-mounted Snohvit coldbox was floated on the Swan in
Flushing, the Netherlands and delivered to Melkoya after a 5-
days voyage on 6 May 2005. The third, final and most impres-
sive transport, the Snohvit barge-mounted LNG process plant,
is performed by the world's largest heavy transport vessel of
Dockwise the Blue Marlin of Dockwise. The process plant has
been floated on board the Blue Marlin in Cadiz, Spain, where-
after the Blue Marlin set sail for Melkoya on 30 June. The Blue
Marlin delivered the process plant to its final destination in July.
This massive structure represents a crucial component of
Europe’s first export facility for liquefied natural gas (LNG),
the Hammerfest LNG plant on Melkoya. The LNG process
plant has a weight of 34,760 ton, an overall length of 175 meter,
a width of 69 meter and a height of 60 meter. The largest ves-
sel of the Dockwise fleet the 76,061 dwt Blue Marlin has a
length of 224.50 meter, a width of 63 meter with a deck space
of 11,227 square meters. According to Project Manager Gerard
Pilger of Dockwise Shipping in Breda; “As this LNG process
plant is designed for an onshore facility, the construction of its
module supports is more sensitive to motions than compared to
the designated offshore facilities we transport regularly.
Weather conditions while sailing across the Bay of Biscay and
the North Sea from Spain to Norway, can sometimes be unfa-
vorable and could cause higher accelerations than allowable.
For this reason a motion monitoring system is installed, which
registers and interprets the motion response on-line and pro-
vides input to the heading control for the captain. When neces-
sary the captain of the Blue Marlin can take the appropriate
actions like slowing down or changing course. Furthermore, the
redundancy in propulsion of the Blue Marlin makes this vessel
extremely suitable for heading control necessary for this kind of
cargoes sensitive to motions”.
Shipyards & Equipment
single-hull tanker ‘Athos I’ spilled oil in the Delaware River on
November 26, 2004, and many in the U.S. Congress now want
the phase out of single-hull tankers accelerated from 2015 to
2010.
For further information contact: Mark Treen at (+47)
33032289 or mark.stuart.treen@kongsberg.com
DP Incidents Report
The fourteenth annual report on dynamic positioning station
keeping incidents has been published by IMCA - the
International Marine Contractors Association.
Some 51 reported incidents, which occurred during 2003,
are covered with a comprehensive event tree for each, together
with analysis and a summary of key findings and trends.
“Perhaps naturally the number of incidents on established ves-
sels is going down quite sharply,” said Jane Bugler, IMCA’s
Technical Director.
Copies of the report have been sent to all IMCA Marine
Division members and to all known member DP vessels.
Members and non-members alike can purchase additional
copies, either individually or as a part of a printed collection
1989-2003. Reports from 2000 onwards are also available. A
ten-year review of DP incidents tracking themes and solutions
will be published later in the year by IMCA.
Another DP-related project is nearing completion. This is
the international cross industry guidance for the use of DP on
offshore supply vessels. The first two drafts received some
helpful feedback, which led to a number of amendments, par-
ticularly in the expected areas of debate - those involving com-
petency and risk assessment. IMCA is now working on the sec-
ond draft. Readers should note that this is an international
industry document, which IMCA is simply coordinating. Input
has come from as wide a population of DP OSV interests as
possible - and more is welcome.
For more information visit www.imca-int.com
Electronic Logbook
As a result of collaboration between Kongsberg Maritime and
the Torvald Klaveness Group, on the 4th May 2005 M/V
Cemstar became the first cement vessel to go into operation with
an electronic logbook. The new M/V Cemstar Electronic
Logbook is based on the Kongsberg Electronic Logbook and
was specifically developed for the vessel.
The Marine IT division of Kongsberg Maritime is at the
forefront of marine IT with the Fleetmaster system enabling
great changes in how logbooks are kept. Although paper-
based logbooks will be retained as a fallback plan, all data
will, from now on, be stored electronically and four separate
logbooks (Deck Log, Engine Log, Oil Record Book part 1 and
Port Log) will register all activities regarding loading, dis-
charging and bunkering.
The Kongsberg Electronic Logbook system consists of ship-
board data management via the electronic logbook and an
onshore database accessed by ship managers and operational
departments for statistics and planning purposes. The ease of
transferring data over IP and wireless communications to shore
using Kongsberg Electronic Logbooks make it possible for M/V
Cemstar reports to be made available to Heidelberg Norcem,
M/V Cemstar’s client.
For further information, please contact Rita Krathe
Kongsberg Maritime at rita.krathe@kongsberg.com or visit
www.kongsberg.com
11
 Supplier News
Anvil Coatings Protect Pipelines
Anvil International, the largest and
most complete fitting and hanger manu-
facturer in the world, offers dependable
and cost-effective coating products to
protect pipes against the corrosive condi-
tions found in oil and gas pipelines. The
elements these pipelines face cause dam-
age that significantly affects their overall
performance and lifecycle. The depend-
ability and lifetime value of connections
and pipes may be greatly extended with
the proper protective coatings from Anvil.
Anvil provides two stock coatings,
Scotchcote 134 and Corvel 1660, which
are durable, reliable and field-tested.
Scotchcote 134 is a fusion-bonded epoxy
coating designed to protect metal surfaces
from corrosion. It is resistant to waste-
water, corrosive soils, hydrocarbons,
harsh chemicals, brine and saltwater.
Corvel 1660 is specially designed to pro-
tect the inside diameter of tubular goods
12
in applications such as fittings, valves,
drill pipes, sucker rods and metering
systems. Corvel 1660 is resistant to
H2S, CO2, harsh chemicals, brine and
saltwater.
In addition to these two stock coat-
ings, Anvil offers a range of specialty
coatings available upon request, including
nickel coating, chrome plating, Teflon
coating, Nap-Guard coating and powder
coating.
Anvil’s coatings are formulated for
both internal and external protection, and
are ideal for a range of applications,
including natural gas, petroleum, water
and sewage, refineries, petrochemical
plants, power plants and paper mills.
They are effective on all grades of pipe,
and can be used to coat malleable, cast
iron, forged steel and ductile metals.
For more information, visit the Web
site at www.anvilintl.com.
Stabil Delivers
Pipe to North Sea
in 6 Days
Stabil Drill, a global supplier of down-
hole tools and equipment for the oil and gas
industry, recently delivered an urgent order
for nearly 28 tons of specialized pipe to a
troubled drill site more than 4,700 miles
away—in less than six days.
An ExxonMobil subsidiary, Esso
Exploration and Production Norway AS, is
the owner and operator of the Ringhorne pro-
duction platform in the North Sea offshore
Norway. Esso experienced drilling problems
related to a highly deviated well and required
hole cleaning and torque reduction in the 17-
1/2-in. well section.
“Stabil Drill mobilized 30 joints of 6-in.
OD (outside diameter) Hydroclean™ drill
pipe from our inventory to Amsterdam via
air freight—with a total weight of more than
55,000 pounds,” explained International
Manager Ashley Lane.
Truck drivers working in tandem then
transported the pipe to the port city of
Stavanger, Norway, where it was loaded on a
ship bound for the drill site.
“I’m very pleased with our crew’s harmo-
nized effort on two continents, which result-
ed in our pipe being in service in the North
Sea less than six days after ExxonMobil first
contacted us in Lafayette,” Lane said.
For more information call (337) 235-
1848.
Personal Locators
When activated in an emergency, the
Fastfind Plus transmits a satellite distress sig-
nal to worldwide geostationary COSPAS-
SARSAT satellites. The signal is then routed
through the AFRCC to the nearest search and
rescue authority. With its built-in GPS, the
Fastfind Plus is totally self-contained and
eliminates the need for any external plug-in
connections or additional add-on equipment.
The GPS data can provide search and rescue
personnel with LAT/LON information. To
further assist rescue personnel, the Fastfind
Plus transmits a 121.5 MHz homing frequen-
cy. It also transmits its unique ID number,
which can be matched to the user through reg-
istration. For further information contact
McMurdo Ltd, or visit the website at
www.mcmurdo.co.uk
Offshore Source August, 2005
Valve Recall
Kirby Morgan Dive Systems, Inc.
(KMDSI) has learned that a single batch
of non-return (oneway) valves manufac-
tured by Circle Seal Controls, Inc. may
be defective. These valves are used on
all Kirby Morgan masks and helmets
manufactured for surface-supplied div-
ing. The valves in question are date
stamped on the valve body and fall
within the date range 12/04 to 02/05. If
you have a valve like this on your hel-
met, please return it immediately to
KMDSI, or any of its dealers, for a free
replacement. KMDSI can be reached at
1430 Jason Way, Santa Maria, CA
93455. Telephone 805-928-7772, FAX
805-928-0342. Email kirwin@kirby-
morgan.com. Website www.kirbymor-
gan.com.
Quick Filter
Rosedale Products, Inc. has intro-
duced the Rosedale QII. Finally a
quick access enclosure that has no
bolts, no tools required and that truly is
quick. This new design employs a
high-tech proprietary seal that seats
precisely and ensures a positive seal.
Competitive models can “unseat the
cover seal” during operation causing
messy leaks. This is eliminated by the
Rosedale QII design. The fast acting
hand wheel allows easy operation of
the clamping mechanism and elimi-
nates sticking of the clamp. The self-
aligning design has no cams or parts
that need field adjustment, and there is
no wear on the clamp surface. The QII
units meet ASME code requirements
for 150 PSI rating. Rosedale is an ISO
9000 facility.
Rosedale a 30-year, privately held
corporation, manufactures high-quali-
ty liquid filtration products and waste
minimization equipment for a variety
of industrial, commercial, and residen-
tial applications. For more informa-
tion, contact Rosedale Products, Inc.
Excerpts from
MUSINGS FROM THE
By Allen Brooks, Managing Director, Parks Paton Hoepfl and Brown
E&P Spending Up 13.4%
Lehman Brothers released its mid-year
E&P spending survey confirming what
everyone knows – spending is going up
faster than the end-of-2004 surveys project-
ed. The 356 companies surveyed by
Lehman indicated spending would rise by
13.4% this year, or more than twice the
5.7% increase projected at year end.
The increase is being driven by greater
spending in the United States (16.9% vs.
7.8% forecast in December) and interna-
tionally (13.3% vs. 4.5%). The forecasted
spending growth in Canada will be lower
(6.4% vs. 8.6%) reflecting overspending of
2004 budgets, increased oil sands spending,
the growth of income trusts and a shift in
spending outside of North America.
While the number of companies sur-
veyed is greater than in December (356 vs.
327), we doubt this accounts for much of
the substantial spending increase projected.
The intriguing fact is that oil companies are
already looking at healthy spending
increases in 2006. At this point, 65% of the
companies surveyed indicated they planned
to spend more in 2006, with 80% of those
companies indicating they planned double-
digit hikes. These higher spending indica-
tions reflect the greater confidence produc-
ers have in the sustainability of high com-
modity prices. That belief is supported by
the report that the companies are using a
West Texas Intermediate price of $40.85
per barrel in their budgeting compared to
$35.81 in December. For natural gas
(Henry Hub) the estimate is $5.74 per mcf
versus $5.39 at year-end 2004.
Surveyed Oil Company Outlook for 2006
Expected Direction of 2006 Capital Spending
Up 20% of More 25%
Up 10% to 20% 26%
Up 1% to 10% 14%
Flat 33%
Down 1% to 10% 1%
Total Responses 205
Source: Lehman Brothers
Given the level of global oil and gas
prices, the stubbornly tight global oil sup-
ply/demand balance and producers’ grow-
ing confidence that these conditions will
last for some time, it is not surprising to see
very healthy spending increases projected
for both 2005 and preliminarily for 2006.
This spending outlook is certainly music to
the ears of oilfield service company execs
and investors.
Here Come the Norwegians
Today there are 34 jackup and 4 semi-
submersible rigs on order or under con-
struction. A number of these units have
been ordered by Scandinavian-based oil-
field service companies. Many of the com-
panies are Norwegian, and many are start-
up companies. Why is capital flowing into
Norway so readily? First, the country is the
third largest oil producer and also a signifi-
cant natural gas producer.
As such it has a natural symmetry with
the oilfield service industry, and an under-
standing of the risk the capital is taking.
Second, the country has a long maritime
history that at times in the past has included
significant involvement with the oilfield
business. Third, the Oslo Stock Exchange is
receptive to start-up companies. Lastly,
there is a bevy of knowledgeable industry
analysts. Interestingly, U.S.-based offshore
contract drillers are barely participating in
this wave of new rig orders. They know that
every time they order a new rig, investors
punish them by selling their stock.
Domestic drillers are trying to maximize
Offshore Source August, 2005
OIL PATCH
their earnings and generate returns for
investors by paying down debt, upgrading
rigs and paying dividends. It will be inter-
esting to see, in the next 18-36 months
when these newly ordered rigs arrive,
whether the Norwegian owners become
acquisition targets. This phenomenon
occurred in the past. Stay tuned.
Hurricane Dennis Skirts GOM
Infrastructure
The fourth storm of the 2005 hurricane
season emerged as the most powerful of the
bunch, but it appears to have caused less
damage than previous storms. It was the
strongest hurricane in history to hit the Gulf
Coast this early in the hurricane season.
Not many days ago, while Gulf Coast citi-
zens were dealing with the path of Tropical
Storm Cindy as it came ashore in south
Louisiana, tropical depression Dennis was
just starting to take shape. Hurricane
Dennis attained Category 4 status with sus-
tained winds of 135-mph late last week
before hitting Cuba. The storm crossed that
island country and headed back into the
Gulf of Mexico on its trek toward the Gulf
Coast. As meteorologists had predicted, the
mountains of western Cuba knocked down
Dennis’s strength to a Category 1 storm, but
the warm waters of the Gulf quickly helped
rebuild its strength. Water temperatures in
the central Gulf of Mexico are currently in
the 82-84 degree range, and it is warm
water that gives hurricanes their strength.
Over the weekend, while trying to
gauge just how strong Dennis would
become, meteorologists also wrestled with
its potential path. The computer models
showed Dennis heading toward landfall in
the western Florida Panhandle close to the
Alabama/Florida line. This region has been
a frequent target of hurricanes in recent
times. On the other hand, the AccuWeather
service suggested that there was a potential
of Dennis to land further west, possibly
even delivering a direct blow to New
Orleans. The difference between these two
projected paths presented significant impli-
cations for domestic oil and gas production.
The last data on evacuations and pro-
duction shut-ins due to Tropical Storm
Cindy, as reported by the Minerals
Management Service (MMS), showed
12.7% of daily crude oil and 7.5% of natu-
ral gas production. By Friday, the shut-ins
reported by the MMS related to Hurricane
Dennis reached 15% of our daily oil and
10% of our gas production. Some 85 plat-
forms and 35 drilling rigs had been evacu-
ated. We expect that these totals went high-
er over the weekend, but the MMS does not
report data on Saturdays and Sundays.
Since Hurricane Dennis ultimately fol-
lowed the trajectory projected by the major-
ity of the computer forecast models, there
likely was a less significant impact on off-
shore operations than if it had gone closer
to New Orleans. We won’t know for sure
about this conclusion for a few days, but we
expect a fairly rapid restoration of produc-
tion and offshore activity. We understand
that the Louisiana Offshore Oil Port
(LOOP) began to unload ships again on
Sunday after being shut down on Friday
and Saturday. It supplied refineries in the
interim with crude oil it had stored onshore.
The original, and later revised, forecasts
for 2005 tropical storm activity had predict-
ed a very ‘active’ year. With the first storm
arriving within days of the start of the sea-
son and now four storms within roughly the
first 40 days of the season, this categoriza-
tion of the 2005 hurricane season appears
accurate. The major issue for the oil and gas
industry is whether the storms that might
From the June 28 and July 12, 2005 Issue
develop during the balance of the season
will continue to find their way into the Gulf
of Mexico further disrupting oil and gas
operations. An unknown issue is the poten-
tial for significant oil and gas infrastructure
damage such as caused by Hurricane Ivan
last year.
Hurricane Dennis was stronger than
Ivan, but was smaller in size and moved
faster through the Gulf of Mexico. As a
result, we anticipate little damage to the off-
shore producing facilities. The only thing
we can safely predict is that the more dis-
ruptions experienced this year, the greater
the upward pressure on oil and gas prices.
World Growth to Slow Says
Strategists
Reuters news service conducted a poll
among 22 strategists at major investment
banks during the July 4-6 period. The con-
clusion of the poll is that world economic
growth should slow this year to a 4.0% rate
compared to last year’s 5.1% rate as report-
ed by the International Monetary Fund
(IMF). The 2005 growth rate forecast,
while lower than last year, which was the
highest level in thirty years, still exceeds the
20-year average of 3.5% annual global
growth.
The range of growth forecasts was from
2.8% to 4.3%. The median value has barely
changed from the prior poll taken in
January.
Essentially the slower growth is due to
tighter fiscal policy, higher interest rates,
higher oil prices and a maturing economic
cycle.
Interestingly, the strategists said that if
oil prices stayed at around current levels of
$60 per barrel, rather than the $52 average
in the forecasts, the growth forecasts only
would be reduced by about 0.1% to 0.2%.
Were that to happen, the 2005 growth rate
would still exceed the 20-year average.
The strategists see little change in the
outlook for global growth in 2006. The
median forecast for global growth in 2006
is 3.9%. The range of forecasts was 2.5% to
4.2%. The most recent forecasts by the IMF
made in April call for growth of 4.3% and
4.4% in 2005 and 2006, respectively.
As expected, the United States is the
main driver of global economic growth.
China, the world’s second economy meas-
ured by purchasing power parity and the
seventh by total GDP according to the
World Bank, should grow 8.8% this year in
contrast to the euro zone that should only
grow about 1.5% this year. Next year, the
U.S. growth should slow, but the long-
awaited euro zone recovery should help off-
set the slack. Is that wishful thinking?
UK More Aggressive on Fallow
Fields
UK Energy Minister Malcolm Wicks is
leading the charge to force oil companies
holding acreage in the North Sea that they
are not actively developing to yield it to
other, more aggressive companies.
Under a new initiative, Stewardship, as
part of the government’s North Sea task
force PILOT, the Department of Trade
and Industry (DTI) has been given greater
powers to order companies to give up or
sell assets that are not being drilled.
Stewardship and PILOT come under
the government’s Fallow Field Initiative
that has been running for three years. The
most significant change under the
Stewardship initiative is the establishment
of a time table for oil companies to hand
back fallow fields.
As a result of discussions with the
industry about this new initiative, North
Sea major oil companies have agreed to
hand back oil fields that have been lying
fallow for two years. The definition of fal-
low fields has also been tightened.
Previously, a license block could lie
undrilled for four years before being
declared fallow. That time period has been
cut to three years. The two-year time frame
for handing the field back starts when it has
been declared fallow.
Under the Fallow Field Initiative, 19
fallow discoveries were initially identified
by the DTI. Today, only six of them
remain with the original operator and still
have no activity plan. Under the new
Stewardship initiative, the DTI has the
power to ask for extensive information
about how every field in the North Sea has
dating back to 2002. If the DTI decides
too little work has been performed, it can
demand further investment in specific oil
company projects.
In the face of a maturing UK sector of
government has become much more
aggressive in seeking to shift fallow
acreage into the hands of smaller oil
companies who are anxious to develop
the fields. The government’s effort to
open up their offshore has been rewarded
by a high interest level from smaller and
new oil companies. The latest batch of
exploration licenses to be auctioned by
the government drew tenders from 144
companies, 28 of which were newcomers
to the North Sea.
The move to increase the pressure on
the holders of fallow acreage is being
driven by a study jointly commissioned
by the DTI and the UK Offshore
Operators Association that showed the
potential impact on the North Sea of a fall
in exploration activity. The study looked
at what would happen if exploration activ-
ity fell back to the levels experienced in
2002 and 2003. Under that scenario, 40%
of the rigs and platforms in the North Sea
would need to be decommissioned by
2020. That could result in the disappear-
ance of the North Sea oil industry by 2035
leaving behind as much as 50% of the
UK’s offshore oil reserves. The economic
consequences for the UK of this scenario
would be devastating.
Two forces have been at work slowing
up the asset transactions anticipated to
come from the Fallow Field Initiative.
One has been the high cost of decommis-
sioning offshore fields and the other is
high oil prices. High oil prices have made
field owners reluctant to want to sell
fields. On the other hand, buyers have
been somewhat reluctant to step up in the
face of high decommissioning costs.
Another agreement between the DTI
and the industry is to develop a plan to
have a standardized formula for decom-
missioning costs of North Sea fields. At
the present time, the estimate to decom-
mission all the fields is between GBP 15
billion and GBP 19 billion. How these
costs are allocated to each field has been
cited as an impediment to successful
deals.
Expectations are that the agreements
coming from the Stewardship initiative
should lead to even more fallow fields
moving into the hands of more aggressive
oil companies. A fixing of decommission-
ing costs should also help buyers in figur-
ing their economics. These agreements
could help extend the life of the North
Sea, a significant resource that is impor-
tant in the global oil supply equation. ■
13
 Offshore At-A-Glance
Global Subsea Forecast 2003 - 2011

Forecast Floating Production Units 2005 - 2010

Global Deepwater Pipeline Forecast

FOR MORE DETAILED INFORMATION PLEASE CALL

(281) 491-5900 * 44 (0) 1737 371704 - London OR GO TO: www.QuestOffshore.com
www.SubseaZone.com * www.FloatingProductionZone.com
email: corp@questoffshore.com

14 Offshore Source August, 2005

 Offshore Source’s
Monthly Statistics

Monthly GOM Stats

Monthly Stock Figur es & Composite Index
May 2004 May 2004
82 Industry Symbol Close Close Change Change High Low
APDs 90 Company Name Mid July Mid June % 52 week
Plans 52 76
May 2005 Diversified, Production Support and Equipment Companies
Wells <=1,000 ft. wd 100
Baker Hughes, Inc. BHI 51.05 51.44 3.16 7.0% 55.35 36.27
Wells >1,000 ft. wd 30 BJ Services BJS 57.85 53.81 4.04 7.5% 58.08 42.25
P&A Wells 37 Cooper Cameron Corp. CAM 69.51 63.11 6.40 10.1% 69.88 46.96
Completions 4 Drill-Quip, Inc. DRQ 32.70 30.60 2.10 6.9% 37.66 17.38
Halliburton Company HAL 53.29 46.39 6.90 14.9% 53.85 26.45
Active Platforms 5,851 Maverick Tube Corp. MVK 33.65 34.14 -0.49 -1.4% 36.89 25.40
Active Leases 8,423 Newpark Resources, Inc. NR 8.20 7.09 1.11 15.7% 8.20 4.72
Producing Leases 1,344 Smith International, Inc. SII 69.65 64.11 5.54 8.6% 69.88 51.60
Schlumberger Ltd. SLB 82.28 76.45 5.83 7.6% 82.39 58.64
Lease Owners 385 Superior Energy Services, Inc. SPN 20.00 18.10 1.90 10.5% 20.00 9.25
Lease Operators 164 Weatherford International, Inc. WFT 62.58 59.98 2.60 4.3% 62.70 42.91
Most Active Area EI
New Fields Discovered N/A Total Diversified, Production,
Support and Equip......................... 544.76 405.22 39.54 7.8% 554.88 361.83
Baker Hughes Rotary Rig Count
June 17, 2005
Geophysical / Reservoir Management
Week Week Year Dawson Geophysical Company DWSN 24.51 22.59 1.92 8.5% 27.66 9.98
Location of 6/17 +/- Ago +/- Ago Mitcham Industries, Inc. MIND 9.30 8.06 1.24 15.4% 9.40 3.10
Land 1240 18 1222 185 1055 Veritas DGC, Inc. VTS 30.00 30.80 -0.80 -2.6% 32.18 19.61
Inland Waters 23 0 23 3 20
Offshore 95 1 94 -1 96 Total Geophysical /
U.S. Total 1358 19 1339 187 1171 Reservoir Management..………… 63.81 61.45 2.36 3.8% 69.24 32.69
Gulf of Mexico 93 1 92 0 93
Canada 222 -97 319 26 196
Offshore Drilling Companies
N. America 1580 -78 1658 213 1367 Atwood Oceanics, Inc ATW 65.52 64.46 1.06 1.6% 71.25 36.48
Diamond Offshore Drilling, Inc. DO 58.12 54.09 4.04 7.5% 58.20 22.67
ENSCO International Inc. ESV 38.36 37.98 0.38 1.0% 41.42 26.95
Global Santa Fe GSF 44.90 41.52 3.38 8.0% 44.99 24.03
Nabors Industries Inc. NBR 65.56 60.60 4.96 8.2% 65.76 41.25
Noble Drilling Corp. NE 67.50 63.08 4.42 7.0% 67.85 35.32
Pride International, Inc. PDE 25.72 25.77 -0.05 -0.2% 27.49 16.29
Parker Drilling Company PKD 7.46 6.69 0.77 11.5% 7.46 2.97
Rowan Companies, Inc. RDC 32.07 30.84 1.23 4.0% 33.04 21.71
Transocean Offshore Inc. RIG 58.67 57.73 0.94 1.6% 58.80 25.94
Total Offshore Drilling Companies…. 463.88 442.75 21.13 4.8% 476.26 253.61

Offshore Contractors, Services and Support Companies

CalDive International CDIS 58.09 51.85 6.25 12.0% 58.28 27.91
Gulf Island Frabrication GIFI 21.14 21.14 0.00 0.0% 25.73 17.75
Global Industries, Ltd. GLBL 9.90 9.32 0.58 6.2% 10.99 4.12
Horizon Offshore Inc. HOFF 0.31 0.37 -0.06 -16.2% 2.87 0.21
McDermott International Inc. MDR 22.55 22.31 1.24 5.6% 24.25 9.35
Oceaneering International OII 42.01 40.46 1.55 3.8% 42.68 29.40
Stolt Offshore SOSA 10.41 8.56 1.85 21.6% 10.45 2.80
Technip Coflexip TKP 50.31 46.16 4.15 9.0% 50.33 32.21
Tetra Technologies, Inc. TTI 36.00 31.39 4.61 14.7% 36.60 23.71
Total Offshore Contractors,
Service and Support..……….….... 251.72 231.56 20.16 8.7% 262.18 147.46

Offshore Transportation and Boat Companies

Seacor Smit Inc. CKH 64.50 62.60 1.90 1.1% 67.09 40.55
Gulfmark Offshore, Inc. GMRK 28.47 25.90 2.57 9.9% 29.14 13.61
Offshore Logistics, Inc OLG 34.77 33.87 0.90 2.7% 38.90 26.77
Petroleum Helecopters PHEL 27.30 26.89 0.41 1.5% 30.95 19.03
Seabulk International SBLK 21.25 21.00 0.25 1.2% 22.20 6.83
Tidewater Inc. TDW 40.72 38.60 2.12 5.5% 42.84 26.90
Trico Marine Services, Inc. TMAR 0.24 0.24 0.00 0.0% 2.09 0.10
Total Offshore Transportation
and Boat Co. .………….………… 217.25 209.10 8.15 3.9% 233.21 133.84

Worldwide oil and gas drilling contractor GlobalSantaFe Total Diversified, Production,
Corporation (NYSE:GSF) today reported that the company’s Support and Equipment 544.76 505.22 39.54 7.8% 554.88 361.83
worldwide SCORE, or Summary of Current Offshore Rig
Economics, for June 2005 was up 9.2% from the previous Total Geophysical /
month’s SCORE.
Reservoir Management 63.81 61.45 2.36 3.8% 69.24 32.69
GlobalSantaFe’s SCORE compares the profitability of current Total Offshore Drilling Companies 463.88 442.75 21.13 4.8% 476.26 253.61
mobile offshore drilling rig dayrates to the profitability of
dayrates at the 1980-1981 peak of the offshore drilling cycle. In Total Offshore Contractors,
the 1980-1981 period, when SCORE averaged 100 percent, new Service and Support 251.72 231.56 20.16 8.7% 262.18 147.46
contract dayrates equaled the sum of daily cash operating costs Total Offshore Transportation
plus approximately $700 per day per million dollars invested. and Boat Co. 217.25 209.10 8.15 3.9% 233.21 133.84
In addition to a worldwide SCORE covering key types of
competitive offshore drilling rigs in key drilling markets, a sepa- Total Offshore Source Index … 1,541.42 1,450.08 91.34 6.3% 1,595.77 929.43
rate SCORE is calculated for certain types of rigs and certain
regions to indicate the relative condition of rig markets. More
information can be found at http://www.globalsantafe.com. DISCLAIMER
The information on this page is provided for information and comparison purposes only and should not be used to make
financial and business decisions and is accurate to the best of our knowledge for the period indicated.

Offshore Source August, 2005 15


Communications
Telenor to Provide
Global IP Network
Telenor Satellite Services announced that it
signed an agreement on June 24th with British
Telecommunications (BT) to provide a global
managed IP custom network over satellite to 83
European Commission embassies around the
world.
The four-year agreement has an estimated
value of 50 million euros and includes options for
service extensions.
The European Commission recently selected
BT as the prime provider of its global managed
IP network for terrestrial and satellite communi-
cations for Commission embassies worldwide.
BT will provide the terrestrial connectivity and
has selected Telenor Satellite Services to deliver
communications over satellite via Telenor’s very
small aperture terminal (VSAT) equipment.
Under the terms of the agreement, Telenor
will provide BT a robust set of satellite capabili-
ties that enable the European Commission
embassies to use satellite solutions as either
stand-alone services or integrate them with BT’s
high-end MPLS-based IP VPN service. Telenor’s
services include the design, delivery, installation,
assembly, engineering, construction and mainte-
nance of satellite communication networks with
guaranteed availability and quality of service.
Iridium and SeaWave
Provide Communications
for Training Ship
Iridium and SeaWave are providing global
satellite communication services for the Maine
Maritime Academy training ship T/S State of
Maine.
SeaWave, an Iridium value-added manufac-
turer, has installed an Iridium-based SeaWave
Integrator 3.0i system on the State of Maine to
provide reliable voice and data communications
for the ship’s officers, crew and over 150 cadets
during their annual at-sea training cruise.
The SeaWave Integrator 3.0i is the hub for all
vessel communications. It functions as a stand-
alone router or network server with built-in
Iridium, GPS, optional GSM and external satel-
lite connections. It connects to a ship’s network
and PBX, providing the captain with detailed
billing for voice and data traffic. The Integrator
hub performs throughput optimization, least-cost
routing, vessel tracking, spam protection and user
access management, and serves as the gateway to
remote vessel management and file/server
access.
16
Petrocom Enters RigNet Inc., a privately held Preferred Iridium Maritime
provider of managed communi- Equipment Service Centre. As
Agreement with USCG cations services to the oil and such, Radio Holland will offer its
Houston-based PetroCom LLC announced an agree- gas industry, announced it has installation, maintenance and
ment with U.S. Coast Guard (USCG) Vessel Traffic Service secured $6 million in Series C repair capabilities to Iridium serv-
ice providers, value-added
Houston/Galveston to provide the complete communica-
tions infrastructure for a new ship monitoring system in the
financing. RigNet received a new
investment from Sanders Morris resellers and value-added manu-
Gulf of Mexico. The Automatic Identification System Harris Private Equity Group in facturers, along with their deal-
(AIS) is currently used in other U.S. ports; this system will this round. All of RigNet’s existing ers, agents and end users.
be the first to collect information on all ocean-going ships investors participated in this Radio Holland will install Iridium
passing within 150 miles of the U.S. coast in the Gulf. The round, including The Altira Group marine terminals, provide
Coast Guard is the military, maritime service of the and Energivekst. onboard inspection and trou-
Department of Homeland Security. “This investment marks a sig- bleshooting of Iridium equipment,
“As we continue to expand our nation’s maritime nificant milestone in our growth,” and provide project management
domain awareness well beyond the shoreline, reliable mon- said Omar Kulbrandstad, chief and logistical services to support
itoring systems are a necessity”, said Cmdr. Tom Marian, executive officer. “We will contin- major fleet customers.
commanding officer Coast Guard VTS Houston. “The ue our aggressive expansion into
expertise and strong performance record of PetroCom has
new geographical areas, expand Neratek AS has announced it
been instrumental in leveraging existing AIS technology to
our team of professionals, and has changed its company name
the benefit of our nation’s security in the maritime arena.”
Ships traveling in U.S. waters are now required to be increase our marketing efforts.” to Marlink AS, in a move that sig-
equipped with an information-transmitting beacon. Data is The company has already nals its continued integration of
collected by USCG-owned receivers, collocated on expanded its management team worldwide business operations
PetroCom’s cell sites on offshore platforms, and relayed via with the hiring of Joshua Tabin as into Marlink.
PetroCom’s C-band satellite network to a central location. chief financial officer and the pro- Neratek was acquired by
The information is then sent via fiber optic routes to Coast motion of Lars P. Eliassen to vice Marlink’s parent company,
Guard monitoring locations in Houston and New Orleans. president of global operations. Telenor Satellite Services, earlier
Additionally, PetroCom is responsible for personnel train- Tabin brings with him more this year, with the purpose of
ing and the testing, installation, communication relay serv- than 10 years of financial man- integrating the two businesses
ice and maintenance of the government equipment. agement experience in technolo- and strengthening the combined
Ken Wright, President and COO for PetroCom, says, gy and telecommunications busi- company’s position in the retail
“We have designed and delivered a highly reliable system nesses. market for satellite communica-
which meets the unique requirements of the Coast Guard, Mr. Eliassen joined RigNet in tions.
covering more than 30,000 square miles. Addressing the February 2002. Prior to joining Søren Einshøj will serve as the
Coast Guard’s communications requirements with RigNet, he served as director of Managing Director of Marlink AS
PetroCom’s expertise in maritime telecommunications is an as part of his duties as Managing
marketing with Production
ideal partnership that supports an important national securi-
Access, an oil and gas software Director for the Marlink Group.
ty initiative.”
company. At RigNet, Mr. Eliassen Former Neratek founder and
The Homeland Security Act of 2002 enhanced mission
of the USCG is to protect the public, environment, and U.S. has served as vice president of General Manager Carsten
land and production and as vice Hansen will continue with the new
economic interests in the nation’s waterways, coastline, Marlink AS, serving customers
ports and in international waters. The Coast Guard is also president of U.S. operations. In
throughout the Nordic region. Also,
charged with reducing the vulnerability and preventing ter- his new position, Mr. Eliassen will
former Neratek Marketing
rorist acts the United States. be responsible for the company’s
Manager Tom Strandberg has
Currently, AIS systems are in place in the ports of New operations that span the major
assumed additional new duties
York and New Jersey; Los Angeles-Long Beach; Corpus regions for oil and gas production
with the Marlink Group as Sales
Christi, Lake Charles, New Orleans; San Francisco, Puget worldwide.
Director for the United Kingdom
Sound, Wash; Houston/Galveston; Berwick Bay, La; Prince
William Sound, Alaska and Sault Ste. Marie, Mich. AIS and Nordic Region.
Iridium Satellite and Radio
equipment is also expected to be installed in Port Arthur, Holland Group signed a letter of
Texas, in 2005. AIT Wireless, Inc. (OTC Pink
intent at the Nor-Shipping exhibi- Sheets: ATWL) has secured a
PetroCom is a full-service telecommunications and net- tion in Oslo to come to an agree-
work solutions company serving the offshore business com- major contract to provide $20
ment to provide installation and million of equipment and servic-
munity for more than 20 years. In 2004, PetroCom became support services for Iridium
a communications pioneer by launching the first offshore es for an Africa based Telco. In
marine satellite communication addition to providing both inside
wireless network based on GSM technology. The network
covers more than 100,000 square miles in the U.S. Gulf of systems. Radio Holland will and outside plant equipment,
make this possible through its the $20 million award calls for
Mexico. This year, PetroCom will release a VSAT platform
for fixed and stabilized applications. Headquartered in New extensive worldwide service AIT to provide significant staffing
organization. in project management, engi-
Orleans, PetroCom also has offices in Lafayette, La, and
Houston. Under the agreement, Radio neering, installation and support
Visit www.petrocom.com Holland will become the system development.
Offshore Source August, 2005
Sea Tempest Pipeline Burial System
Sea Tempest is an all new subsea pipeline trench-
ing system developed by The Engineering Business
Ltd (EB) for Mondial Contractors SA, the engineering
and construction company based in Tunis. After a suc-
cessful Factory Acceptance Test at the EB workshop in
June, the Sea Tempest is due to be put to work later this
year on a pipeline route extending between El Awabed
on the Tunisian mainland and Chergui on Kerkenna
Island in the Mediterranean.
The surface-powered jet sled uses up to 1MW of
water power to bury pipelines 1.5m below the seabed
economically and effectively.
“The Sea Tempest is a robust tool designed to bury
pipelines up to 14-in. in diameter in shallow water. The
systems modular construction allows future upgrades
for larger diameter pipe and increased burial depths,”
said Michael van Zwanenberg, Lead Engineer.
The system comprises 32 forward facing jets, 2
mid-mounted eductors and 6 rearward facing nozzles.
Trenching performance can be optimized though con-
trol of water feed pressures and customization of noz-
zle diameters throughout the machine. Subsea Intervention
The passage of the pipe through the machine has
been carefully designed to minimize overall stresses
imposed on the pipe. Rollers are used to detect top-
of-pipe contact, relaying this information back to the
operator for assessment. The horizontal separation
between the jet legs ensures minimal pipe tracking
loads during single or multiple pass burial.
The tool is operated using EB's SCADA based
control and monitoring system including state-of-the-
art touch screen technology. An intuitive graphical
user interface provides easy monitoring of jetting
functions and alarms from one screen. Further screens
provide enhanced operator command of the entire
device with the provision for on-the-job calibration,
alteration of alarm levels and system diagnosis.
The equipment has been designed specifically for
Mondial who plan to use it for projects offshore
Tunisia and in other areas of the Mediterranean and
North African Coastlines.
For more details please visit www.engb.com

Schilling manipulator technical man-

uals are now available on the Schilling
Sub-Atlantic Web site. To view and down-
load manipulator technical manuals go to the
Web site below and then click on
Downloads, Schilling Robotics, Technical
Manuals, Slave arms & manipulator systems
and then the specific manipulator and con-
figuration that you are interested in.
Go to: http://www.ssaalliance.com/

SMD Hydrovision has announced

the sale of a Quark ROV system to
Offshore Oil Engineering Co. Ltd
(COOEC) of P.R. China. The Quark is an
ultra compact 75hp workclass ROV which
is powered and controlled using the SMD
Hydrovision Curvetech range of ROV build-
ing blocks. The Curvetech range of prod-
ucts has an enviable track record for high
performance and reliability and new high
efficiency thrusters and intelligent valve
packs controlled by a distributed control
system has reduced size and weight of the
ROV and improved performance. The low
drag of the compact ROV and the high
power of the Curvetech thrusters will allow
COOEC to operate the system in areas of
high current. All parts of the system, includ-
ing the compact Launch and Recovery
System (LARS), are designed and manu-
factured by SMD Hydrovision. The Quark
is the most compact workclass ROV sys-
tem available and SMD Hydrovision can
also supply the Quasar medium-size work-
class ROV system and the larger Quantum
construction class ROV system. For more
information contact: Dave Grant at
Dave.Grant@smdhydrovision.com

RUCO Limited has recently sold an

AC-ROV micro ROV to Osiris Marine
Services for use in support of their diving
and hydrographic survey operations. Aiden
West, Managing Director of Osiris said
“The AC-ROV is an ideal addition to our
inventory of inspection equipment, we have
already secured projects for which we will
be using the ROV both as the main asset
to perform inspections and to support our
diving operations.” He added “Our aim has
always been to establish Osiris Marine
Services in the industry as a quality service
provider. To do this we need to look at new
technologies and methods to perform our
work that bring added benefits and cost
savings to our clients. We believe our
investment in the AC-ROV will aid us in this
goal.” The AC-ROV, developed by AC-
CESS, has been designed to provide real
time visual and sensory data from inacces-
sible locations and hazardous environ-
ments and as such is ideal for diver support
operation. Among its many advantages, is
its small size, it is the only ROV with a mar-
ket beating 190mm down pipe fly through
capability.
Contact Raymond Ruth at feed-
back@ruco.co.uk, or visit www.ruco.co.uk

Offshore Source August, 2005 17

 Advanced Filtration Technology Required on
Cameron Highway Oil Pipeline
John Hampton, President, Filtration Technology Company, Ltd., Houston, Texas
Extending from terminals onshore in Port Neches and
Texas City Texas, through High Island ( 63 feet in seawater,
[fsw] ) and then to offshore platforms in Garden Bank (525
fsw) and Ship Shoal (438 fsw), GulfTerra/Valero’s 375 mile
Cameron Highway Oil Pipeline System presented engineers
and designers with a number of challenges. One important
decision was to select a dry or wet lay for the 240 mile seg-
ment of 30-in. diameter pipe.
Wet laying a crude oil or natural gas ocean gathering sys-
tem normally requires the existence of a water treatment
plant that filters and treats the incoming seawater before
introducing the liquid into the pipe as the pipe is being laid.
This ingress of seawater overcomes the pipeline’s buoyancy
effect.
The treatment plant, often placed on an oceangoing
barge, has an expensive daily rate and usually is required for
the duration of the entire pipelaying operation.
Depending upon the amount and kinds of particulates being
removed, operators may also face sludge disposal problems.
In-line, front-end filtration can alleviate the problems
associated with traditional wet laying. Consequently, front-
end filtration compares favorably with dry laying. Economic
considerations/comparisons include:
• Weight and space requirements
• Number of pipe joints that will fit on the laying ship
• Concrete coating costs vs using standard pipe
• Water treatment costs
• Number of trips required between port and lay site.
For example, heavy concrete pipe affects the load out.
That is, less joints can be loaded with concrete pipe given the
same footprint. This equates to more trips
between port and the lay site. Generally, there is large foot-
print for shipboard handling and storage of large amounts of
heavy concrete coated pipe. One must also consider over-
spray and other pipe coating operations when considering the
size of the footprint needed on the laying vessel. To over-
come buoyancy, concrete pipe is much heavier than standard
pipe. This becomes an important design consideration in
choosing the type of laying operation.
If a traditional wet laying could be simplified by using a
front-end filtration system for the seawater, engineers could
eliminate:
• the need for an expensive offshore water treatment plant
• delays in startup
• the requirement for water treatment during commissioning
• complicated seawater processing.
As a result a project would save time and money in the
long run. Also, front-end filtration would ameliorate diver
charges that, at target box depths for the system, can reach
$30,000 per day.
Allseas, the contractor chosen to lay the 30” pipeline seg-
ment of the Cameron Highway system, selected a wet lay
using front-end filtration. This lay method had never been
done before. Indeed, an integral filtration system utilizing a
filter in the start up head annulus is not common or standard
industry practice. So, two questions had to be addressed:
What was the risk? And, what was the savings?
Considering Pipeline Buoyancy
While wet laying eliminates the complexity of coating
application, concrete pipe is heavy. It is not buoyant as it
drops into place. Wet laying (filling the pipe with filtered sea-
water) also alleviates pipeline buoyancy.
So, if the correct diameter high flow rate cartridge filters
were available that matched the diameter of the (uncoated)
pipe, it would be possible not only to eliminate the need for
concrete coating, but also eliminate the need for a costly off-
shore water treatment plant that is usually required during
commissioning activities. Most contractors charge from
$20,000 to $40,000 per day for a water treatment vessel with
a 4-anchor spread, so savings could be significant. And, if
treatment vessels are dynamically positioned, the cost can
reach $70,000 per day.
Large, high capacity filters
Fortunately, large-scale seawater filtration had been the
focus of a major research and development effort at FIL-
TRATION TECHNOLOGY COMPANY. LTD (FTC),
Houston, Texas. With an eye toward ocean pipeline opera-
tions, and the handling of produced water, FTC had success-
fully developed large diameter (See Figure 1) pleated filter
cartridges whose flow rates and dimensions fit the needs of
the project (See Table 1).
FTC obtained representative samples of the seawater
from the start up location of High Island and Ship Shoal. A
Gravimetric analysis of these samples provided the data nec-
18
When coupled to precise maneuvering and dynam-
ic positioning, state-of-the-art filtration techniques
add a new dimension to wet laying ocean pipelines
flooding upon the pipeline entering the water. Strainers are
connected to the flooding hoses and are suspended by a buoy
above the pipeline.
Figure 2A
Multiple 2040 filters used for in-
line filtration
Figure 2B
Single 240
with
cutaway
Figure 1
With assistance from a support vessel, the flooding
essary for FTC to specify the quantity of filters required to assembly is positioned and released, seawater begins to enter
handle the expected flow rate and solids loading while main- the filter assembly, and, with the lay vessel properly posi-
taining a minimal differential pressure (less than 22 PSID) tioned (reacting to underwater transponders within the start-
across the filter system throughout the entire laying process. up assembly), the wet lay is initiated.
This process is continued until the full length of pipeline
Filtering seawater in wet laying is critical to the pipelaying is laid. That period covered December 31, 2003 through
operations in terms of maintaining ballast within the pipe, reducing
buoyancy, alleviating the potential for corrosion and assuring sea- April 7, 2004. The six filters, each with 900 square feet of
water intake flow rates and the required temperature and pressure surface area (total 5400 square feet of surface area) were able
conditions. For the Cameron Highway, suspended material had to to achieve the necessary specified particulate removal rate as
be removed by the filtration system where 99.98 % of all particu-
lates that are 92 microns in diameter and larger had to be removed. well as the required flow rate of 30 cubic meters per hour
If suspended material is pumped into the line due to faulty equip- (132 gallons per minute) throughout the entire lay. Start up
ment or due to careless workmanship, many serious problems can heads retrieved after the job was completed allowed compar-
result, particularly in respect to cleaning, gauging and pigging.
Faulty filtration can require a complete line flush using clean water. ison of used and unused filters. (See Figure 3).
Cost Considerations
As the lay rate of vessels is constantly increasing (now up
Pretesting the Filtration System
Pretesting the filter system was a key to selecting this to 1000 km of pipeline annually), and the depth of the lay is
greater, dynamic positioning of the lay vessel becomes
cost-saving technology. Since this kind of pipeline-water-fill
had never before been attempted, if the filter failed (plugged)
prematurely, there would be additional costs because the unit
was not diver accessible and thus there would be major
delays.
A key component in the system was a set of relief valves
that were installed to assure that proper pressure drop was
maintained across the filter (two identical fully open relief
valves provided redundancy).
FTC could not buy these valves, so they conceived the
design and built them. The concept was unique because tra- Filter before use (above)
ditional valves to pressure drop across filters almost always Filter after use
operate at atmospheric pressure. These valves would be oper- cutaway(above))
ating in deep water where the delta-P was far above atmos-
pheric pressure. FTC built the valves, attached them in par-
allel to the filter system and tested the complete unit under Filter after
actual operating, fail-safe condition,—.the same conditions use (left)
that the filter would experience during the actual lay.
Figure 3
Initiating the Lay
With pretesting assuring functionality, engineers
addressed the criteria of pipeline startup. Prior to flooding, mandatory, and anchors become obsolete. This, when cou-
the system was flanged and secured to the pipe using carbon pled to a new generation of high speed welding systems and
steel strapping. Then, with the lay vessel positioned astride advanced continuous-lay
the lay route near the designated target box, the startup head technology, requires a detailed analysis in order to compare
was attached and readied for entry into the splash zone. The dry vs wet laying. The development of front end filtration
startup head, that was assembled onshore, contained the dramatically changes the economics of wet laying, therefore
internal filtration system that was inserted into the pipe and the traditional comparisons are no longer valid. With front-
held into place with a wafer plate that is sandwiched in end filtration, a wet lay creates synergy with a lay vessel’s:
between two flanges. (See Figure 2A and 2B).
The firing line is filled with pipe and the startup head • Firing line length
(containing the filters) is connected to the lay cable that is • Pipe-carrying capability
• High transit speed.
guided out over the stinger. Two 3 1/2-inch flooding hoses
are connected to the start-up head to allow for immediate
In-line filtration has proven economically viable and syn-
Table 1 - THE CAMERON HIGHWAY OIL PIPELINE SYSTEM
ergistic with the above from both investment and operating
LOCATION DESCRIPTION viewpoints. Front-end filtration offers the flexibility of:
Texas City Landing 49 miles 24 inch OD pipe/350
MBOPD
High Island Water Depth 63 feet • Less interference with other platform activity
Port Neches Landing 39 miles 24 inch OD pipe/350 • Less space requirements
MBOPD • Low risk/ extensive savings
Garden Banks Water Depth 525 feet/ Pig unit • No per day expenses related to water treatment barges or vessels
Ship Shoal Water Depth 438 feet • No discharge or disposal requirements
• Flexibility to match with both startup and laying rates
Laying the CAMERON PIPELINE involved all aspects of preparatory
• Low initial costs/low operating costs
work, transportation of materials, installation and burial. Effectively, the
pipeline system initiates with a 30-inch diameter pipeline at a new facility • No downtime
at High Island (HIA5) in approximately 63 feet of seawater (fsw). This • Continuous filtration without the need of an operator.
extends South-Easterly to an existing facility at Garden Banks (GB72,
525-fsw). The route length of this leg is approximately 126 miles. HIA5 For more information visit www.ftc-houston.com or call
will have pumping facility (each pump rated at 10,000 HP).
Approximately 82 miles of this leg is less than 200-fsw and therefore (713) 849-0849
requires burial by means of mechanical trenching.
From GB72, a 30-inch line extends Easterly to a new facility at Ship
Shoal (SS332B), a platform in approximately 438-fsw, a distance of 113
miles. For the most part, the pipeline route parallels the existing
Poseidon Pipeline System.
Offshore Source August, 2005
Ocean Works Delivers Mardi Gras Fluid Injection System
OceanWorks International, Inc. has
recently delivered a Fluid Injection Skid
to Mardi Gras Transportation Systems
Inc., for use in commissioning the
Okeanos and Cleopatra pipeline systems.
This project presented a unique technical
challenge by requiring large volumes of
fluid to be transported to the seabed in
water depths of up to 7,200 fsw and trans-
ferred into pipeline jumpers in a con-
trolled manner.
The Fluid Injection Skid incorporates
two custom manufactured 2,200 gallon
bladders which are used for supplying
and receiving the glycol fluid. The system
is operated subsea via a ROV control
panel, and a 100 GPM pump is used to
transfer the fluid. The Fluid Injection
Skid also includes integral foldout mud
mats to spread the load when landed on
the seabed, and a water jetting system
Construction
installed in the lower skid can be operat-
ed (if necessary) to reduce the effects of
seabed suction when recovering the unit
after use.
OceanWorks delivered the turnkey
system in just under 4 months, on sched-
ule for the planned offshore operations,
and in compliance with all the client’s
quality requirements.
With design and manufacturing facili-
ties in Houston, Texas and Vancouver,
BC, OceanWorks International is a key
independent supplier of remote tooling
systems, submarine rescue equipment
and atmospheric diving systems for the
international oil & gas, submarine tele-
com and military markets.
For more information contact:
Peter MacInnes, Sales Director Remote
Systems, (713) 933 8000,
pmacinnes@oceanworks.cc

J. Ray McDermott Announces Morgan company has several projects back

City Project Awards
J. Ray McDermott, S.A. ("J. Ray”), a
subsidiary of McDermott International Inc.
(NYSE: MDR) ("McDermott”), announced
that it recently has begun work on several
fabrication projects at its Morgan City,
Louisiana facility.
The projects include fabrication of a
number of piles and suction pile sections
for deepwater Gulf of Mexico projects.
Work on these projects began in May and
is expected to be completed by
September.
"These projects are welcome starting
points for what we expect to be a period of
backlog development at Morgan City,” said
Tim Woodard, Vice President and General
Manager of J. Ray McDermott’s Americas
Operations. "While we continue to work
toward a comprehensive redesign, or
'extreme makeover’ of the facility, we
remain fully able to undertake fabrication
projects of all sizes.”
The first of its kind "yard” dedicated to
offshore construction, J. Ray's Morgan
City Fabrication facility was established in
1956 and for over five decades has been
the construction site for some of the off-
shore industry’s most significant projects.
Continuous improvements and invest-
ments in infrastructure, along with a highly
skilled and dedicated workforce, have
enabled the facility to competitively and
safely produce quality structures for the
offshore oil and gas industry.
J. Ray McDermott, S.A, is a leading
provider of solutions for offshore field
development worldwide. McDermott
International Inc. is a leading worldwide
energy services company. McDermott's
subsidiaries provide engineering, fabrica-
tion, installation, procurement, research,
manufacturing, environmental systems,
project management and facilities man-
agement services to a variety of cus-
tomers in the power and energy industries,
including the U.S. Department of Energy.
Visit www.mcdermott.com/
logged. Titan Responds to Tsunami Casualty
Visit www.madconcorp.com
Stolt Offshore Signs Letter of Port of Lhok Nga
Authorization for $50M
Stolt Offshore ASA (SOSA) said it
has signed a $50 million letter of author-
ization for the design, supply and off-
shore installation of a deepwater
offloading export system for the Agbami
development offshore Nigeria.
The letter of authorization was
signed by a consortium of Stolt
Offshore, SBM Offshore N.V
(36059.AE) and a Chevron Inc. (CVX)
subsidiary, Star Deep Water Petroleum
Ltd., Nigeria.
The other partners in the Agbami
development include Texaco Nigeria
Outer Shelf Inc., which is an affiliate of
the Chevron Corp. (CVX), Petroleo
Brasileiro Nigeria Ltd., Statoil ASA
(STO), Famfa Oil Ltd. and the NNPC.
The “SINAR ANDALAS” a 6,693 dwt while performing cargo operations in the
The work to be carried out by Stolt cement carrier, was completing cargo oper- Indonesian port. The vessel now lies cap-
Offshore amounts to about $50 million
ations at the port of Lhok Nga on sized adjacent to the pier where she had
and is for the fabrication and installation December 26, 2004. Later that day, the just completed the loading of over 5,000
of two 20 steel oil offloading pipelines port bore the full brunt of the worst earth- tons of cement.
and the installation of floating offloading quake in 40 years. The port of Lhok Nga is On June 28th, Florida based global
hoses. about 17 km west of Banda Aceh, the cap- marine salvage company Titan Maritime,
The offloading buoy, which is 23 ital of Aceh province, scene of massive LLC (Titan) was awarded a contract for
meters in diameter, together with its destruction in the tsunami that followed the wreck removal of the “SINAR
moorings will be supplied and installed quake. Indonesian officials now say the ANDALAS”. Titan is today mobilizing a
by SBM. death toll in the country is 80,000, as entire salvage team and equipment from Titan’s
Stolt Offshore’s Globestar yard at towns and villages on the coast of Aceh Batam, Indonesia Salvage Depot. The men
Warri will be used as the onshore base were laid waste in matter of minutes. and equipment will be on site during the
and for logistic support for this project. The shipping industry has escaped third week of July with full wreck removal
The offloading system will be installed largely unscathed from the December operations scheduled for completion by
in a water depth of 1,400 meters by the tsunami disaster, as vessels in deep water October.
Seaway Polaris during the first quarter were largely unaffected by the tsunamis. Most notable for Titan has been the
of 2008. Those in port, however, bore the full front completion of the “DELTA CONVEY-
Stolt Offshore has also been award- of killer waves much as those on land did. OR”, a wreck removal project in the
ed a two year extension to the contract The “SINAR ANDALAS” fared far worse Mississippi River which Titan has aggres-
for the Seaway Harrier by Petrobras in then most other vessels affected by the sively worked on for the past 3 years, and
Brazil, with an option for an additional tsunami. Of the 19 crew, just four were res- has proven to be Titan’s most challenging
two years. The two year extension com- cued after the ship was hit by killer waves project to date.
mences in early September 2005.
This contract, valued at approxi-

MADCON Completes Well Repairs

MADCON Corporation, Pearl River,
LA has recently completed structural
repairs to a collapsed well in the
Vermillion area, offshore Gulf of Mexico.
Using its patented repair techniques,
the company was able to restore full
structural integrity to the well. The
scope of work involved repairs both
above and below water. The operator
now plans to mobilize a work over rig to
restart production and possibly develop
untapped reserves.
High oil prices, aging infrastructure,
and more efficient recovery technolo-
gies are driving more operators to find
ways to extend the life span of mature
assets. MADCON reports a significant
increase in this type of work, and the
mately $40 million for the first two years,
is for the provision of diving services to
water depths of 300 meters for new
construction tasks and inspection,
maintenance and repair work, together
with ROV services to 3,000 meters.
Philippe Lamoure, Vice President
South America Region, said "We are
very pleased to have been awarded this
extension to our long term contract for
the Seaway Harrier. This award follows
eight uninterrupted years of similar work
by this ship for Petrobras during which
we have achieved an excellent safety
and operational track record. It also indi-
cates the high degree of customer sat-
isfaction with both the Seaway Harrier
crew and our support organization in
Macae”.
Intermoor to Anchor FPU in 3,000
Feet of Water on Gomez Project
InterMoor Inc., an Acteon company,
has finalized an agreement with ATP Oil
& Gas Corporation (NASDAQ: ATPG) to
anchor a Floating Production Unit (FPU)
in the Gulf of Mexico’s Mississippi
Canyon 711 for ATP’s Gomez project,
InterMoor Vice President – Engineering
and Projects Tom Fulton announced.
InterMoor will provide and install a 12-
point, taut-leg mooring system using
polyester rope, which offers lower cost
and better performance than conventional
steel catenary systems.
Additionally, InterMoor will secure
the FPU to the seabed with subsea
Suction Embedded Plate Anchors
(SEPLAs), making this project the first
permanent mooring system to use
SEPLAs.
The SEPLA is a patented InterMoor
product which is a significantly more cost
effective alternative to the more tradition-
al Suction Embedded Anchors.
InterMoor’s system, which has a
designed field life of 10 years, is antici-
pated to be installed this fall. Water depth
at the location is approximately 3,000
feet.
For more information contact Tom
Fulton at (832) 399-5000.

Offshore Source August, 2005 19

 Company News

Applanix has announced two strategic appointments to

its senior executive ranks. Effective July 1, co-founder and
President Dr. Blake Reid will assume the new role of
Executive Vice President, and Dr. Steven Woolven, the
current General Manager and Vice President Operations,
will be appointed to serve as President of the Company.
The appointments will play a decisive role in further
emphasizing the company’s global position as a leader in
inertial geospatial technology.
Composite Mat Solutions (CMS), a Newpark
Resources company, has promoted Ron Houghton to
DURA-BASE® Sales Manager, and Don Couvillon to
BRAVO® Sales Manager.
Dr. Ralph Rayner has resigned as managing director of
Fugro GEOS and has been replaced in this role by Jeff
Coutts. Dr. Rayner will retain his links with Fugro GEOS,
a world leader in the provision of oceanographic and mete-
orological systems and services, in a consultancy capacity.
Jeff Coutts has been with the Fugro Group for over 25 years,
and brings with him a wealth of experience having managed
several of the Fugro operating companies. He also sits on the
board of the UK Holding Company.
Knight Oil Tools has appointed Eric Busch as
Corporate Account Representative. Busch will be respon-
sible for business development and sales growth of
Knight’s four business lines. Busch will be based at
Knight’s Houston offices at 6003 Cunningham Rd. and can
be reached at (713) 466-6660.
Shell Exploration & Production (Shell) has named
Marvin Odum Executive Vice President of the Americas
Deep Water not Hot Water effective May 23, 2005. In this role, Odum will lead
exploration and production activities in the Americas,
...keeping you on the job site and out of trouble including current areas of activity in the Gulf of Mexico,
onshore North America, Brazil and Venezuela. Odum suc-
ceeds Raoul Restucci, who was recently named Executive
Custom Tooling
Tooling API/ISO
API/ISO Compliant
Compliant Vice President of Shell’s E&P business in the Middle East,
• Pipeline
Pipeline Cutting/
Cutting/ Tooling
Tooling Russia and CIS.
Repair
Repair Systems
Systems •• Torque
Torque Tools/Flying
Tools/Flying BJ Process and Pipeline Services (BJ PPS) announced
• ROV
ROV Installable
Installable Lead Tools
Lead Tools that Derek Clark has been appointed business develop-
Frames/Connection
Frames/Connection •• Hot
Hot Stabs/Docking
Stabs/Docking ment manager for the USA & Latin America Region.
Systems
Systems Probes
Probes Petrofac,has announced it has appointed Rodney
•• Wellhead
Wellhead Chase as Chairman. Mr Chase (62) spent 38 years at BP
Intervention
Intervention Tools
Tools plc of which 11 were served on the Board. He was Deputy
Group Chief Executive on his retirement from the Group in
Integrated
Integrated ROV
ROV Burial/De-burial
Burial/De-burial May 2003 having held the position since 1999. He also
Tooling
Tooling Tooling
Tooling spent time as CEO of the Exploration & Production and
•• Suction
Suction Anchor
Anchor •• Pipeline/Cable
Pipeline/Cable Marketing & Refining divisions.
Pumps
Pumps Intervention
Intervention Federal Energy Regulatory Commission Chairman
•• Fluid
Fluid Injection
Injection Units
Units •• Water
WaterJetting/Chain
Jetting/Chain Joseph T. Kelliher has announced the appointment of
•• Subsea
SubseaControl
ControlSystems
Systems Cutter/Rockwheel
Cutter/Rockwheel Daniel L. Larcamp as the Commission’s Chief of Staff.
Tools
Tools Bill Flores Jr., senior vice president of drilling for
Energy Partners, Ltd., has been named public relations
chairman for this year's Louisiana Gulf Coast Oil
Exposition (LAGCOE). The goal of the committee,
....Engineering Your Subsea Solutions according to Flores, is to attract key industry clients to the
biennial oil and gas industry trade show through advertis-
Houston: +1 713 933 8000 Vancouver: +1 604 986 5600 www.oceanworks.cc ing, promotions and special transportation arrangements.
Flores served in this capacity for the last two shows.
Harvey-Lynch, Inc. (HLI) has appointed Melissa Wood
as Sales & Marketing Manager. Wood is an accomplished
manager with extensive experience in both Operations &
Sales and Marketing areas from over 13 years of superior
achievement and dedication to the Offshore Oil & Gas
Industry.
Bollinger Shipyards, Inc., has promoted Andrew St.
Germain to the position of Vice President, Chief Financial
Officer and Treasurer, according to Donald “Boysie”
Bollinger, Chairman and CEO of the Lockport, La. head-
quartered shipbuilding and repair company.
Woods Hole Group announces the opening of its new
office in Houston, TX, through which it will provide dedi-
cated Meteorological and Oceanographic services to the
offshore oil and gas industry. Woods Hole Group already
has contracts with Exxon Mobil, Unocal, Texaco, Chevron,
BP Amoco Corporation, and Instituto Mexicano Del
Petroleo (IMP) and has conducted recent operations in the
Gulf of Mexico, West Africa, Southeast Asia, and South
America. The Houston office is located at 1640 West Sam
Houston Parkway North, Houston, TX 713-468-5075. The
corporate website is www.woodsholegroup.com for further
information on the overall company capabilities.
Oceaneering International, Inc. (NYSE:OII)
announced it has acquired GraylocProducts LLC (Grayloc),
a manufacturer of high performance clamp connectors pri-
marily for the oil and gas industry. The purchase price was
approximately $41.0 million, subject to a post-closing work-
ing capital adjustment. The Grayloc brand, with over 50
years of history, is the recognized standard for clamp con-
nectors by the oil and gas industry and is synonymous with
quality and reliability. These clamps are used extensively in
production manifold, flow line, and valve installations.

20 Offshore Source August, 2005

August 21-24, 2005: September 20-23, 2005: October 25-27, 2005: March 21-23, 2006:
UUST 05 Subsea Houston 2005 LAGCOE Oceanology 2006
Univ. of New Hampshire The Woodlands, TX Lafayette, LA London ExCel www.oi06.com
www.ausi.org/uust/uust.html www.SubseaHouston.com
November 1-4, 2005:
September 6-9, 2005: September 20-23, 2005: Offshore Communications
Submarine Networks Houston, TX
Offshore Europe 2005 www.offshorecoms.com
Aberdeen, Scotland Singapore
www.offshore-europe.co.uk www.terrapin.com/2005/snw_SG/ MTS Houston Chapter
Jan, 30-Feb 1, 2006:
September 27-28, 2005: Underwater Intervention Sponsored Events
September 19-23, 2005: New Orleans, LA
Dynamic Positioning Conference www.underwaterintervention.com
Oceans 2005 MTS/IEEE August 25, 2005 - John Simon, Amerada
Houston, TX www.dynamic-positioning.com
Washington, D.C. info@oceans2005.org Hess will make a presentation at the
February 6-9, 2006: MTS Houston Section Luncheon on the
October 4-7, 2005: Satellite 2006
September 20-21. 2005: DEMA Okume Complex.The lunch will begin at
Maritime Security Expo 2005 Washington, DC www.satellite2006.com 11:30 at the Westchase Hilton on
Las Vegas, NV
New York City February 23-24, 2006: Westheimer. For more information, visit
www.maritimesecurityexpo.com October 19-21, 2005: Offshore Positioning & Mapping http://www.mtshouston.org.
SNAME Marine Technology Conf. & Expo Houston, TX
Houston, TX www.maritimeexpo.com www.positioningmapping.com

Issue/Trade Show Date

2005
January
Marine Construction Houston-Feb 7-9

February
Underwater Intervention-Feb 14-16
SPE/IADC-Feb 23-25

March
U.S. Hydrographic Conf-Mar 29-31

April
EnergyOcean 2005-April 26-28

May
OTC-May 2-5

June
Brazil Offshore-June 15-17

July
To Be Announced

August
To Be Announced

September
Offshore Europe-Sep 6-9
MTS/IEEE Oceans-Sep 19-23

October
SPE/ATCE-Oct 9-12
LAGCOE-Oct 25-27
Offshore Communications-Nov 1-4

November
Clean Gulf-Nov 9-10

December
WorkBoat-Nov 30-Dec 2
Publisher reserves the right to change show distribu-
tions at any time and without notice

Offshore Source August, 2005 21

 Bright Light Foundation Mission
Inspired by the faith and courage of
Tammy Bright and her family the mis-
Skeets Photo
sion of the Bright Light Foundation is
to raise funds, in the spirit of compas-
sion and fun, to assist with the medical
Service
needs of those within the oilfield com- Industrial Photography
munity stricken by catastrophic illness. for the Offshore Oil & Gas Industry
None of us “expect” to experience a catastrophic illness,
but in reality they strike often and can quickly deplete the Serving the Gulf of Mexico Since 1967
financial resources of many families. We invite individu-
als and companies to support our effort through direct When time is short and quality is paramount,
contributions or participation in our annual dinner/auction use the very best that you can find,
and golf tournament. Merchants who would like to sup-
port the foundation can additionally do so through the Call a representative today! because there truly is no substitute for experience.
donation of items for the annual auction. Families of
those working in the oil field industry who are incurring
extensive medical expenses associated with a cata-
strophic illness can apply to the Foundation for financial
support.
ANNUAL FUND RAISING EVENTS
Dinner/Auction Golf Tournament
September 23, 2005 September 24, 2005
Wyndam Greenspoint Hotel Cypresswood Golf Club
12400 Greenspoint Drive 21602 Cypresswood Drive
Houston, Texas 77060 Spring, Texas 77373
Phone: 281-875-2222 Phone: 281-367-3659
P.O. Box 1010, Patterson, La 70392
Applications for assistance and registration forms for our mjmcduffee@ocean-news.com • 772-221-7720 US Tel: 985 395 6216 • Page: 504 880 2529
annual events can be found on the foundation’s web site sales@tonybarrett.co.uk • +44 (0) 1926 64 1640 UK
at: www.bright-light-foundation.com Cell: 985 518 1505
wwww.ocean-news.com

Employment Opportunity

Leading monthly Oil & Gas publication seeks full-

Phone (337) 303 3716
Fax (772) 221 7715
k_roth@bellsouth.net info@offshoresource.com
time Advertising Sales Representatives for newly
opened Houston Office located in the Park Ten
Plaza area of Houston. Large territory. Oil & Gas
Phone (772) 221 7720 Industry sales experience and/or advertising
Fax (772) 221 7715 sales experience required. Magazine advertising
sales experience in the Oil & Gas Industry pre-
ferred. Base salary plus commission. Benefits.
References required. Send Resume to PO Box
1096, Palm City, FL 34991 or email resume to
mjmcduffee@ocean-news.com

22 Offshore Source August, 2005

Did You Know GML Offers…
Self-Supporting, Stackable Units Quarters • Full-Service Catering
Barge
• Auxiliary Equipment
• Emergency Response
• Fabrication
• Offshore Renovation
Fully-Equipped
Galley • Quarters Barges
• Refrigerated Grocery Boxes
& Containers
Emergency Medical Units • The GML dock facility is
Living-Quarters capable of loading out
LARGE quarters packages

GML is your “One Stop

Laundry/Locker Room Supplier” with the Largest
Portable Single Units Fleet of Portable Buildings
in the Gulf of Mexico.
We Design and Build
Water Tanks
Safety into Every
Product we make.
General Marine Leasing, Inc. • P.O. Box 187, Belle Chasse, LA 70037 • Phone (504) 394-1155 • Fax (504) 393-2678
info@generalmarineleasing.com