Offshore update

Jan. 2002 Vol. 223 No. 1  Offshore Update

Robert E. Snyder,  Editor

New deepwater record. TransoceanSedcoForex (TSF) said it set another world record for ultra-deepwater drilling when the company’s Discoverer Spirit drillship spudded an appraisal well in 9,727 ft of water in the Gulf of Mexico for Unocal. The rig installed and tested BOP equipment October 28 on the Trident 2 well in Alaminos Canyon Block 903, surpassing the previous industry water depth record, also held by the same rig, for drilling in 9,687-ft water. The prior record was set in May 2001 on the first Trident well in the same block.

The Discoverer Spirit utilizes TSF’s proprietary dual-activity drilling process. Along with Unocal’s unique approach to low-cost drilling, dual activity is designed to reduce, by about 15%, the time required to drill exploration wells, and up to 40% for production wells. The time savings are achieved by performing drilling tasks in parallel steps, instead of sequentially, as with conventional offshore drilling rigs. To date, Spirit has drilled five deepwater exploration wells in the Gulf for Unocal, resulting in significant time savings.

Contract for deep-draft vessel study. The Offshore International Newsletter reports that the DeepStar research initiative awarded Halliburton KBR, formerly Kellogg Brown & Root, a conceptual engineering contract. The study covers a spar / deep-draft caisson vessel in 10,000-ft water in the GOM.

The study involves engineering / costing of the vessel system with large topsides and a large number of risers in ultra-deep water. The contract calls for engineering designs such that the vessel can produce a high-temperature / high-pressure field. The company will investigate three mooring options: steel with steel risers; polyester with steel risers; and polyester with composite risers.

In addition to mooring, the work scope includes: conceptual design / analyses; major operations sequences; and key equipment for fabrication / installation. Also included are cost / schedule estimates; and documentation of drawings, schedules, costs, and other related projects. A team began work in Houston on the project in early October; completion is scheduled for March 2002. DeepStar is supported by 15 oil operators, and 50 other companies.

TLP for the U.S. Gulf. Keppel FELS (KFELS), has a contract from Atlantia Offshore to build a TLP hull structure. The $22-million contract involves construction of the hull of Atlantia’s Seastar TLP system, which supports a self-contained topside with full production, workover, utility and accommodation capabilities.

When completed, the hull structure will be transported from Singapore to the Gulf of Mexico for installation with the topside. The 84-ft-diameter column structure, to be built in KFELS’ Pioneer yard, consists of a central moon-pool and a Y-shaped base pontoon for attachment of the mooring tendons.

The project is expected to be completed in December 2002, and the platform will operate in TotalFinaElf’s Matterhorn field in the Gulf of Mexico, in 2,850-ft water.

Deepwater operations benchmarking study. Ziff Energy Group, Houston, has released the fourth edition of its Deepwater Gulf of Mexico: Reducing field operating costs (RFOC) study evaluating operating costs for producing offshore fields in water depths greater than 1,000 ft. The study analyzes operating-cost data for calendar year 2000, and features extensive trending analysis both on a field and company level. Companies participating in the study receive confidential, blinded, asset-level comparisons vs. comparable assets.

Ziff pioneered the first RFOC study in 1998, and expanded it in 1999 and 2000 with trend analysis and Best Practices Theme Topics focusing, respectively, on Subsea operations and well servicing. The fourth edition updated the cost comparisons for 2000 performance.

The study contains data on 21 fields, with total production of some 1.1 MMboed from 250 active wells, and total annual operating costs of about $300 million. It analyzes operating costs for the deepwater fields within three peer-asset groups based on type of production system, i.e.: jacket / compliant and jacket / compliant / subsea; floating / TLP; and subsea satellite. This ensures that fields are compared on a like-kind basis.

The range of costs was greatest in the subsea satellite category, with high-cost performers costing nine times low-cost performers. Many of the 21 fields were also analyzed in earlier editions, and Ziff Energy provided a trend analysis of costs and production volumes.

The study is currently open to late participation by additional GOM deepwater operators. Companies not yet involved in the study may still participate, submit cost data for their deepwater fields, and receive customized benchmarking analyses. Further information about the deepwater initiatives is available from Ziff Energy Group offices in Houston at: (888) 736-5780; call or e-mail Richard Tucker, rtucker@ziffenergy.com; or Michael Erpenbeck, merpenbeck@ziffenergy.com.

Eastern Canada offshore report. Four organizations – Newfoundland Ocean Industries Association (NOIA); Offshore / Onshore Technologies Association of Nova Scotia (OTANS); Atlantic Resource Industries Association (ARIA) and the Canadian Manufacturers and Exporters of Prince Edward Island have released the findings of a new study, Atlantic Canada oil and gas: Technology transfer and service and supply capabilities.

The document outlines development of service / supply capabilities, and indicates potential gaps / opportunities. It also highlights technology-transfer progress to date, noting that all industry players recognize that this is a very important piece of the industry’s development.

Specific recommendations include: developing a common vision and comprehensive approach for the area’s oil / gas industry; implementing a measurement system to determine the impact of technology transfer; developing standards for the exchange of information within the region; and auditing results of service / supply capabilities.

The purpose of the report is to provide a foundation for future dialogue between industry stakeholders, to enable them to pool their knowledge and resources, and to enhance and strengthen Atlantic Canada’s service and supply capabilities. The report is a follow-up to a key regional study completed in January 1999, which provided a comprehensive overview of Atlantic Canada’s oil and gas industry. Copies of both reports are available on NOIA’s website at: www.noianet.com.