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ExxonMobil Increases Production at Banyu Urip Field, Indonesia

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ExxonMobil announced Monday the “successful and safe” start-up of the onshore central processing facility at the Banyu Urip field in Indonesia, which will help increase production to more than 130,000 barrels of oil per day.

With the central processing facility now online, production is anticipated to continue to increase in the coming months. Once full field production is reached, Banyu Urip will represent approximately 20 percent of Indonesia’s 2016 oil production target, according to Exxon. Banyu Urip is expected to produce 450 million barrels of oil over its lifetime. The project consists of 45 wells producing from three well pads, an onshore central processing facility, a 60-mile onshore and offshore pipeline and a floating storage and offloading vessel and tanker loading facilities in the Java Sea.

ExxonMobil, partnering with PT. Pertamina EP Cepu and the Cepu Block Cooperation Body, commenced production from Banyu Urip in late 2008, and output has increased as additional facilities were brought online in 2014 and 2015. ExxonMobil expects to increase its global production volumes in 2015 to 4.1 million oil-equivalent barrels per day. The volume increase is supported by the ramp up of projects completed in 2014 and the startup of major developments in 2015.

Neil W. Duffin, president of ExxonMobil Development Company, commented in a company statement:

“This milestone demonstrates ExxonMobil’s project management expertise and illustrates the strong partnerships we share with our Indonesia co-venturers and contractors, the government, and the community. Our top priority has always been the safe and cost-effective delivery of a reliable project that would result in decades of oil production for Indonesia.

“Banyu Urip is helping drive economic growth in Indonesia and has led to the training and employment of thousands of Indonesians,” Duffin said.

ExxonMobil Cepu Limited, project operator, has a 45 percent interest in Banyu Urip, PT. Pertamina EP Cepu holds 45 percent and four local government entities under the Cepu Block Cooperation Body – PT. Blora Patra Hulu, PT. Petrogas Jatim Utama Cendana, PT. Asri Darma Sejahtera, and PT. Sarana Patra Hulu Cepu – hold the remaining 10 percent.

 

 

 

 

 

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NEW $7 MILLION XPRIZE COMPETITION SEEKS TO USHER IN A NEW ERA OF OCEAN EXPLORATION

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Shell Ocean Discovery XPRIZE to Accelerate Technology Breakthroughs for Rapid and Unmanned Ocean Exploration


SAN FRANCISCO (December 14, 2015) — At a keynote address today during the American Geophysical Union Fall Meeting in San Francisco, Dr. Peter H. Diamandis, chairman and CEO of XPRIZE, announced the launch of the $7M Shell Ocean Discovery XPRIZE, a three-year global competition challenging teams to advance ocean technologies for rapid and unmanned ocean exploration. As part of the total $7M prize purse, the National Oceanic and Atmospheric Administration (NOAA) is offering a $1M bonus prize to teams that demonstrate their technology can “sniff out” a specified object in the ocean through biological and chemical signals. David Schewitz, Shell vice president of geophysics for the Americas, and Richard Spinrad, chief scientist at NOAA, joined Diamandis on stage to launch the new competition.

“Our oceans cover two-thirds of our planet’s surface and are a crucial global source of food, energy, economic security, and even the air we breathe, yet 95 percent of the deep sea remains a mystery to us,” Diamandis said. “In fact, we have better maps of the surface of Mars than we do of our own seafloor. The Shell Ocean Discovery XPRIZE will address a critical ocean challenge by accelerating innovation to further explore one of our greatest unexplored frontiers.”

The three-year competition includes nine months for team registration, 12 months for initial solution development and 18 months to complete two rounds of testing and judging by an expert panel. In each round, teams will complete a series of tasks, including making a bathymetric map (a map of the sea floor), producing high-resolution images of a specific object, and identifying archeological, biological or geological features. Teams also must show resiliency and durability by proving they can operate their technologies, deployed from the shore or air, at a depth of up to 4,000 meters.

“Spurring innovation and creating radical breakthroughs in ocean discovery are what excite us about collaborating with XPRIZE,” Schewitz said. “Shell recognizes the need to leverage the full power of innovation: the capacity for doing things differently and better than before.”

A $4M Grand Prize and $1M Second Place Prize will be awarded to the two teams that receive the top scores for demonstrating the highest resolution seafloor mapping, after meeting all minimum requirements for speed, autonomy and depth. Up to 10 teams that proceed to Round 2 will split a $1M milestone prize purse. And the $1M NOAA bonus prize will be awarded to the team that can trace a chemical or biological signal to its source.

“The goal of the $1M NOAA bonus prize is to identify technology that can aid in detecting sources of pollution, enable rapid response to leaks and spills, identify hydrothermal vents and methane seeps, as well as track marine life for scientific research and conservation efforts,” said Spinrad.

The Shell Ocean Discovery XPRIZE is part of the 10-year XPRIZE Ocean Initiative – a commitment made to launch five multi-million dollar prizes by 2020 to address critical ocean challenges and make the oceans healthy, valued and understood. XPRIZE awarded the Wendy Schmidt Oil Cleanup XCHALLENGE in 2011 and the Wendy Schmidt Ocean Health XPRIZE in July 2015.

For more information, and to register your intent to compete, visit oceandiscovery.xprize.org.

To watch the live AGU keynote webcast at 12:30 p.m. PST, tune-in to AGU’s live stream here.

View or download an overview video of the Shell Ocean Discovery XPRIZE.

 


 

About XPRIZE
Founded in 1995, XPRIZE is the leading organization solving the world’s Grand Challenges by creating and managing large-scale, high-profile, incentivized prizes in five areas: Learning; Exploration; Energy & Environment; Global Development; and Life Sciences. Active prizes include the $30M Google Lunar XPRIZE, the $20M NRG Cosia Carbon XPRIZE, the $15M Global Learning XPRIZE, the $10M Qualcomm Tricorder XPRIZE, and the $7M Adult Literacy XPRIZE. For more information, visit www.xprize.org.

 

About Royal Dutch Shell
Shell has been a technology pioneer for more than 100 years, and has come up with many industry-transforming “firsts” to deliver energy its customers and partners need. Since 2007, Shell has spent more than $1 billion annually on research and development. In 2014, our research and development expenditures were $1.2 billion. Shell’s technical and engineering staff amount to more than 43,000.

Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. For further information, visit www.shell.com.

 

About National Oceanic and Atmospheric Administration (NOAA)
The National Oceanic and Atmospheric Administration (NOAA) is a science-based federal agency within the Department of Commerce with regulatory, operational and information service responsibilities with a presence in every state and U.S. territories. NOAA’s mission is to understand and predict changes in the Earth’s environment, from the depths of the ocean to the surface of the sun, and to conserve and manage coastal and marine resources. For more information, visit www.noaa.gov.

Saipem Completes Syndication of EUR 4.7 Bln Credit Lines

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Italy’s Saipem informed that the syndication of its €4.7 billion new credit facilities has been successfully completed.

Syndication of the facilities was launched on November 2, 2015 and seen strong demand from various banks, resulting in a significant oversubscription and reduction of the original commitments provided by the underwriters and joint lead arrangers.

In detail, the €4.7 billion credit facilities include a bridge to bonds of 1.6 billion euro in 18 months, extendable for a further 6 months; a term loan of 1.6 billion euro in five years and a revolving facility of €1.5 billion in five years.

The availability of credit facilities is subject to the completion of the capital increase of up to 3.5 billion euro, announced on 27 October and approved by the Extraordinary Shareholders’ Meeting on December 2. The proceeds from the capital increase along with the financial resources resulting from the Bridge to Bond and the term loan will be used by Saipem to reduce and refinance its existing debt.

The credit lines were subscribed by Banca IMI / Intesa Sanpaolo, Citi, Deutsche Bank, Mediobanca and UniCredit as Mandated Lead Arrangers and Bookrunners. Goldman Sachs and JP Morgan participated as Joint Lead Arrangers.

GETTING HIRED: ADVICE FROM THE INDUSTRY

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Getting Your First Dive Job After Graduation

So, you’re about to wrap up your diving training. You’ve aced, slogged or scraped your way through physics and emergency medicine, dived over and over at different depths and in different waters, learned how to stay alive in high levels of pollution during your hazmat course, grinded through your underwater construction classes, explored the world of salvage diving, and maybe more. Now it’s time to bring it all together and realise the goal of all this training: getting a job. We asked a few Employers in the commercial diving world to let us in on a few tips for finding and landing that perfect job.

First, Do Your Research

 

Study the dive companies that you are interested in: find out what their workload looks like, what kind of experience their supervisors and lead divers have, and check on their safety and culture.  You’re looking for a company that treats its workers well and has high safety standards. It can get pretty dangerous out there and you need to know your employer has your back. If a dive company works for one or some of the major operators in the gulf, like Chevron, ExxonMobil, BP, Shell, Fieldwood, then it is required to meet a minimum safety standard.

Find out how robust the company’s training program is and what they can offer in terms of jobs.  Do they dive on barges as well as boats?  Do they dive saturation or just do surface work?  Do they only work in the Gulf of Mexico or overseas as well?  Inland?  The greater the breadth of work, the more diverse experience you’ll have access to, which will help you in the long run.

Talk to previous graduates who have already been employed. Find out their thoughts on the companies you’re interested in, and be open to their tips.

Next Steps: Group Up, Get Out

 

If you’re heading to the gulf to find offshore work, partner up with a few classmates and make a plan to share expenses when first arriving in the south. This can help you to withstand startup time financially until you get some offshore days under your belt.

Before stopping by dive companies take note to make sure that you are dropping in on the “hiring location” for that company. Often, corporate offices for dive companies are located in other cities or states from their hiring office.

Who Dive Companies Look For

Dive companies, like all companies, need to balance the needs of their bottom line with a team that is happy, safe and well cared for. As a recent grad looking for work in the field, you need to ensure that you can optimize both goals of the company: be a hard, productive worker and a good team player, respectful of colleagues, well-adjusted and easy to work with.

Scott Coker General Manager of Operations at DeepCor Marine, an offshore dive company focusing on surface air and mixed gas diving in water depths up to 300 feet of salt water (FSW). He gave us a few insights into what he looks for in a new diver.

“Dive companies look for graduates who are professional, career-oriented and honest. No one is interested in someone who is not trustworthy or unreliable. Offshore work is tough and there is rarely a set schedule so anyone who has a problem with alcohol or drugs will never last in this environment.  We work with each other in close quarters for long periods of time offshore, in an environment that demands respect. There are others who rely on your attention to detail as this work involves life support and the diver’s safety.

A background in intensive outdoor work with one’s hands, such as in contracting, farming or military service will serve you well and you should highlight this in your job applications and interviews. Those who are mechanically inclined also do well here. We like experience in hydraulics, electronics, diesel mechanics, welders, etc.  However, an individual with just a desire to be a commercial diver and shows a solid work ethic can be successful – anyone who is driven to excel and do their part to complete a project safely while watching out for their co-workers will go a long way. There are plenty other things we look for but these are what stand out the most to me.”

DIT Is There For You

 

Finally, remember that as a DIT alumnus, you have the support network of all our experienced staff who have worked in almost all commercial diving applications. They are here to help you on your way in the transition between student and work life. Good luck!

Written for DIT by Londi Gamezde

DNV GL Develops RP on Thermoplastic Composite Pipes

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DNV GL has launched a recommended practice (RP) that allows operators to choose thermoplastic composite pipes instead of steel or traditional flexibles.

“Thermoplastic composite pipes are a new, robust lightweight pipe alternative that will impact field layout, and installation methods and ultimately reduce the cost level,” says Per Anker Hassel, project manager with DNV GL – Oil & Gas.

According to DNV GL, the thermoplastic composite pipes offer advantages across all stages of the lifecycle of a pipeline or riser:

Design: easy-to-tailor strength and good fatigue capacity, sufficient for the deepest waters and resilience to fluids and elevated temperatures;

Manufacture: cost-effective continuous spoolable lengths and fully bonded, and the same thermoplastic material can be used for the liner, composite layers and outer coating
Installation and decommissioning: cost-effective; lightweight and spoolable;

Operation: no metal corrosion, high thermal and pressure tolerance and minimal flow resistance.

DNVGL-RP-F119 Thermoplastic composite pipes (TCP) was developed through a DNV GL-led joint industry project involving 18 companies covering the whole supply chain; from polymer producers, via TCP manufacturers, to oil companies as the end users.
“As the recommended practice describes the requirements for flexible TCP for offshore applications, it builds trust and confidence in the safe and reliable use of these pipelines,” states Espen Cramer, global service director with DNV GL – Oil & Gas. “This opens up new, cost-efficient, innovative offshore pipeline solutions, which are of vital importance for reducing overall costs in the industry.

”TCP have a variety of application areas offshore, including: flowlines, risers, jumpers, choke and kill lines, expansion spools, access lines, and chemical injection lines, as well as commissioning and intervention lines.

“The offshore oil and gas industry can now benefit from the use of TCP, whose qualification using DNVGL-RP-F119 assures performance, reliability and safety during their lifetime.”

The RP targets towards operators, contractors, suppliers and others seeking acceptance for using TCP in offshore operations, and is intended for:

– Suppliers of TCP for offshore operations and suppliers of raw materials for such pipes that are seeking market access for their products;

– Operators and contractors seeking acceptance for using TCP in offshore operations;

– Suppliers and recipients of TCP which need a common technical basis for contractual reference.

Diver One, are you well

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Horizontal in the water, making a star shape with our arms and legs, fingers and thumbs wrapped loosely around the metal cable shotline, we descended. The white top of the diving bell, 30m below, loomed through the green water.
Diver One, surface, crackled a voice in my full-face mask Have you reached the bell yet
Diver One, reached bell, I replied, climbing down the side of it.
Inside were a set of pipes and quarter-turn valves, and the top third contained air supplied from the surface. Almost weightless, but not quite, I bounced around outside the bell on a lifeline.
It felt as close to being on the Moon as I could get while still on Earth.
I was on the HSE Scuba (Part 4) commercial air diving course in Fort William, Scotland. For photographers planning to work under water, holding this certificate is a legal requirement. Many potential clients wont commission you without it.
The first six days of the four-week course had been spent in a classroom studying theory – first aid, oxygen administration, use of US Navy decompression tables and diving physics. It was fairly intensive, with homework most evenings.
Then we began diving. Starting each day at 8.30, we took turns to dive, refill cylinders, tender, record details of the dive and handle the radio.
This is a very different way of diving. Each diver wears a harness and lifeline and works with a tender on the surface. Our initial dives were carried out using normal scuba-diving masks, known as half-masks, and demand valves. Many were done without the use of fins or a BC, and we communicated with the tender using lifeline signals consisting of pulls and bells. Pulls are slow yanks on the lifeline; bells are short, sharp jerks, made in pairs.
We quickly moved on to the Exo 26 full-face mask with hard-wired voice communications. It was comfortable enough to wear, and being able to breathe through my nose and speak under water seemed a real novelty.

Darths breath
My breathing sounded as if Darth Vader was wrapped around my head. I had to hold my breath when being spoken to, or the loudness of my breathing would smother the other voice.
Diver One, are you well crackled a quiet voice.
Diver One is well.
Find a pieckck, crackckle, hisss, crakckcle and tie crkackcle, crahckl.
Say again, I replied, quickly snatching a breath to hold.
Crackckle, a piece of scrap metal and ckrackel crak hiss tie on to the ropes end with a bowline.
OK surface, understood, I said, hoping that I had.
Bouncing along the bottom, I tried not to step too heavily on the muscular orange starfish that carpeted the seabed.
I found a small piece of rusty metal; it looked insignificant compared to the big chunks I had seen the boys before me send to the surface. But finding nothing bigger, I made my way to where a rope and shackle were dangling, secured my find with a bowline and gave a lifeline signal to the tender above, telling him to pull the line to the surface.
Rescue practice is an important part of the course. We practised both in-water and surface standby rescues, for which two divers are sent to the bottom in different directions.
The standby diver stays on the surface, kitted up ready to dive, and one of the in-water divers is told to act unconscious. The standby diver leaps in to the rescue, following the unconscious divers lifeline.
Rescues using the full-face masks and comms require a running commentary of exactly what is happening during the rescue:
Diver Two left surface, following Diver Ones umbilical. Umbilical is clear of snags. I can see bubbles. I can see Diver One.
Diver One is breathing but appears unconscious. I am looking to see if it is safe to approach Diver One.
Area is safe to approach. Flushing Diver Ones mask [with air]. Checking
bail-out. Main cylinder one two zero bar.
I am securely holding onto Diver One. Bring both divers to surface…
The casualtys tender pulls hard on the lifeline while the rescuing diver lifts the casualty to the surface using his suit inflation or BC if worn.
The divers reach the surface close to the exit point, and the tenders pull the casualty out of the water.
We also did visual inspection reports and grid searches, including one in zero visibility. We set up a jackstay search and we each had to do a seabed search, blindfolded, hunting for a shackle.
My turn came, and I was called up the steps to have Gaffa tape stuck all over the front of my mask. Diver Michael Moore came back up the steps from the seabead to lead me back down to the jackstay.
This was great fun. I went charging up and down the jackstay, holding it loosely with one hand while making big sweeps with my other arm. I was sure I would find the shackle, but apparently went over it twice and missed it. Mike did better, and found it when it was his turn.
There were two night dives, one beginning at 3am, using half-masks and DVs, lifeline signals and surface marker buoys consisting of a buoy and a length of coiled rope – very different to the small inflatable SMBs with a tiny reel of line used in sport diving.
Holding a coiled SMB rope too fat to fit comfortably in one hand, along with a lifeline and torch, and to play out the floaty SMB line while descending the hill, proved challenging. Near-zero visibility didnt help.
Nitrogen narcosis can affect any diver breathing air at depth, and a chamber dive demonstrated this. Fellow-student John Williamson and I were given sheets of paper covered in lines of continuous, random letters. We had a minute to circle as many letter Cs as we could find. Then we were given identical sheets to take with us into the chamber, which was quickly blown down to 45m and became really hot.
Johns voice became squeaky and high-pitched. I got very giggly, feeling as if I was fairly drunk and light- headed. John started acting drunk, too.
Alf, our tutor, was operating the chamber. He asked us to look for the letter E this time. I was surprised at how easy it was to stop giggling and concentrate on the task.
I felt OK while doing the exercise, but I had scored 23 Cs before entering the chamber, and only 18 Es inside.
Alf started to bring the chamber back to the first safety stop. It got really cold and filled with mist. On our second safety stop we breathed oxygen from a mask for several minutes.
At the end of the course, we sat written exams on diving at work (mostly legislation), scuba diving and US Navy tables. There was also a practical first-aid test.
The scuba course finished a couple of days early, but some of the divers had catch-up dives to do from a surface-supplied diving course they had done earlier. I took part too, wearing a harness with a bail-out cylinder and a Kirby Morgan 17 helmet. This seemed to weigh a tonne on land, but once in the water felt really comfortable. Breathing air was supplied through an umbilical.
I climbed down the steps to the seabed and walked with student diver Conrad Wesley to the welding station.
Using ultra-thermic cutting equipment, Conrad cut a slice from a chunk of metal in a shower of bright sparks. The cutting tool is fed with pure oxygen and burns at 10,000F.
I took photographs, and found the surface-supplied KM17 much easier and more comfortable to work with than scuba equipment. It has a far wider angle of vision than half-masks or the Exo 26.
Breathing seemed as normal as if I was on the surface and the helmet was very quiet – without the Darth Vader effect, the voice communications were very clear and easy to understand.
Conrad completed his task and offered me the cutting tool. I struck the metal with it as if it were a giant match, trying to generate sparks to ignite the oxygen, but the tool kept sticking to the metal.
I finally got the hang of it, and watched fascinated as the glowing oxygen turned the solid metal into a molten liquid that fell away in globules as I drove the tool downwards.

Moon pool
The following day Punkaj Singh, also a student from my scuba course, needed to do a surface-supplied rescue assessment catch-up dive from the diving bell. I was invited to dive with him.
The bell was on a barge and would be lowered via a winch through a square hole in the barge known as a moon pool.
We entered the bell wearing hotwater suits, in which a continuous supply of heated water is pumped around the diver. We used Kirby Morgan 28 full-face masks, with air again supplied from the surface through an umbilical.
Kneeling in the bell, we were lowered to within 1.5m of the seabed. It was very dark beneath the barge.
I climbed onto the side of the bell, unwound my umbilical and left it, walking down the hill as far as the umbilical would allow. I then pretended to be unconscious. Punkaj was told that I was in trouble. He left the bell and followed my umbilical, flushed my mask with fresh air and checked my bail-out.
I was dragged back to the bell and my head secured above water, inside the bells air space. The rescue completed, we were able to leave the bell again and wander around the bottom.
There were lots of hermit crabs and silt and we were as toasty-warm as if in a hot bath. I wanted to stay and do the surface-supplied course too!
I had felt a bit out of place on arriving at the Underwater Centre, being the only female there, but my fellow-students had been very sociable and I had soon felt at home. There were eight students on the scuba course, and others training as surface-supplied and saturation divers.
At weekends we walked up the spectacular mountains and swam in the rivers around Fort William. Friday and Saturday nights we headed into town and had fun in the local bars and clubs.
Four HSE certificates cover different types of commercial diving. The Part 4 course I did covers those working in media, scientific and archaeological, recreational and inshore diving using scuba gear. Parts 1 and 3 cover surface-supplied and Part 2 closed-bell diving.
These courses are for divers working in a range of construction environments, from inspecting bridges to spending a month at depth working on oil pipelines.
There are also courses for using tools, non-destructive testing and operating remote operated vehicles (ROVs).
I was already an experienced freelance photographer working in the marine environment and a recreational diver, so taking my camera under water was a natural progression. And I was lucky – my course, plus tuition from leading underwater photographers Linda Pitkin and Martin Edge, was funded by the Queen Elizabeth Scholarship Trust, which helps craftspeople to develop their skills and careers (www.qest.org.uk).

 

 

 

 

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GE Said in Advanced Talks for Halliburton Drill Assets

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General Electric Co. is in advanced talks to buy the drill-bits and drilling-services divisions of Halliburton Co., which is divesting assets to win antitrust approval for its takeover of Baker Hughes Inc., according to people familiar with the matter.

Selling both the drill-bits and drilling-services businesses could have fetched as much as $5 billion in total for the oilfield services provider, people with knowledge of the matter said earlier this year, when the units were each put on the block. It is not clear how much the decline in oil prices — which have been hovering near six-year lows — may have affected their respective market values.

GE is also exploring bids for other assets that Halliburton is seeking to unload, including parts of Baker Hughes’s completions operations, two of the people said, asking not to be identified because the matter is private. No final deal with GE has been reached, and Halliburton may still decide to sell some or all of the other assets to other buyers, said the people.

Representatives for GE and Halliburton declined to comment.

When it first announced plans to acquire Baker Hughes in November 2014 — a deal valued at $34.6 billion in cash and stock deal at the time — Halliburton said it would divest assets with revenue of as much as $7.5 billion.

The first assets put up for sale in April were Halliburton’s drill-bits and drilling services business. The former makes the tips of drills for digging wells and could fetch as much as $2 billion in a sale, people familiar with the matter said in March. The drilling-services arm, which operates as Sperry Drilling, uses data to track and steer the direction of drill bits and may sell for as much as $3 billion, the people said at the time.

WELLS, OIL

Halliburton announced a second group of asset sales in September that included businesses essential for building new wells and controlling the flow of oil. All of the assets being cleaved off still add up to revenue that is less than the $7.5 billion threshold originally announced.

While the merger-closing timeline has already been pushed back by three weeks to Dec. 15 at the earliest, there remains a strong likelihood the deal doesn’t close until sometime in 2016, Halliburton’s acting Chief Financial Officer Christian Garcia said Wednesday at an energy investor conference.

“We’re making good progress with our divestitures with respect to the first tranche, which is our drilling services and drill bit assets,” Garcia said at an event in New York hosted by Wells Fargo & Co., according to a transcript compiled by Bloomberg. “We are finalizing negotiations with the potential buyers, including setting the terms and conditions for the relevant divestiture agreements.”

GE has built up its oil and gas unit over the past decade through more than $10 billion in acquisitions, including a $3.3 billion deal in 2013 for Lufkin Industries Inc. The oil and gas business is central to Chief Executive Officer Jeffrey Immelt’s strategy to expand industrial manufacturing divisions while shrinking consumer-focused and lending operations.

While the slump in oil prices has weighed on earnings in GE Oil & Gas, the company has indicated a willingness to continue expanding in that area. At an industry conference this month, Lorenzo Simonelli, CEO of GE’s oil division, said he will “remain opportunistic” about potential acquisitions.

ANTITRUST HURDLES

Halliburton’s bid for Baker Hughes has been fraught with antitrust hurdles. Last month, the company sought European Union approval for the takeover a second time, four months after regulators rejected an earlier filing about the bid to combine the world’s No. 2 and No. 3 providers of oil services.

The proposed transaction has faced resistance from U.S. officials, who are concerned the tie-up could hurt competition, a person familiar with the matter told Bloomberg News in July. The officials are concerned that the oilfield services industry would become too concentrated and although Halliburton has proposed selling some assets to other companies, government officials weren’t convinced that plan went far enough, the person said.

The Justice Department is facing a Dec. 15 deadline to decide on the combination, though that could be extended. The European Commission set an initial deadline of Jan. 12 to rule and may still opt to open an in-depth probe lasting about four months if remedies fail to allay competition concerns. Australia’s competition watchdog has also queried the transaction, and delayed its decision until Dec. 17 after asking for more comments from market participants.

 

 

 

 

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AGR and IOG Execute Skipper Well Management Contract

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Following the signing of a Memorandum of Understanding (MOU), AGR and Independent Oil and Gas (IOG) have agreed to execute the collaboration by signing a Well Management contract for delivering an appraisal well on Skipper field. 

Skipper is expected to have a spud date in late January or early February 2016.

Skipper field development is  located in licence P1609 in the UK North Sea.

According to the Well Management contract, AGR will deliver well construction and design, logistics and operational support to IOG in addition to securing a rig for the Operator.

U.S. SEC Looks Again at Making Natural Resources Industry Reveal Payments

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The U.S. Securities and Exchange Commission on Friday took up a new draft of a rule to require oil, gas and mining companies to disclose payments they make to foreign governments, after a federal judge ordered it to speed up a process that has been locked in the courts for years. The rule, as called for in the Dodd-Frank Wall Street Reform law of 2010, would require the companies to disclose how much they pay governments in taxes, royalties and other types of fees for exploration, extraction and other activities.

Human-rights groups such as Oxfam say it could become an important weapon in fighting corruption in resource-rich countries. Companies in the energy industry, meanwhile, say it could give their foreign competitors an advantage by making important financial information public. SEC Commissioner Luis Aguilar, a Democrat, said in recent years other countries have created mandates for greater disclosure and some companies voluntarily open their books.

“This type of disclosure is consistent with an emerging global consensus to combat government corruption through greater transparency and accountability,” he said. The commission voted 3-1 to open the new proposal up to a public comment period that ends Jan. 25. Under the draft, any U.S. or foreign company that files with the SEC would have to disclose payments that furthered commercial development or that totaled at least $100,000 over the course of the fiscal year.

That would include payments made by subsidiaries, as well as money sent to foreign subnational governments or the U.S. government. Commissioner Kara Stein, also a Democrat, said the proposal would give companies flexibility and allow them to seek exemptions. Casting the Dodd-Frank requirement as an afterthought inspired by a political agenda, Commissioner Michael Piwowar, a Republican, said the proposal would not help investors and could set new legal precedents.

Also, he said, it would put publicly traded U.S. companies at a disadvantage. The commission completed work on its first version in 2012, a few months after human-rights group Oxfam sued it over delays. Trade groups then sued, accusing the SEC of conducting a flawed analysis of industry costs. After a federal judge tossed the rule out in 2013, the SEC pledged to draft a new version. Frustrated with delays, Oxfam sued again and in September a federal judge ordered the commission to fast-track it. 

 

 

 

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EC-OG Grabs Scottish Enterprise Grant for Subsea Power Hub

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A new £3.9 million investment by East Coast Oil and Gas Engineering Ltd (EC-OG Ltd) to develop its ‘Subsea Power Hub’ (SPH) has received a £1.2 million research and development grant from Scottish Enterprise.

The SPH is designed to provide electrical power to oil & gas subsea infrastructure, where conventional means would either be too expensive, or not applicable within the timescales required.

Since it was set up in early 2013, EC-OG Ltd has been engaged with Scottish Enterprise’s High Growth Ventures Unit, which provides tailored support to fledgling companies and entrepreneurs with ambition to scale internationally.

Chief executive of the enterprise agency, Dr Lena Wilson, said: “Investing in higher levels of innovation is fundamentally important to growing Scotland’s economy, contributing to business growth through improved productivity and increased global competitiveness.

“As the oil and gas sector faces the global challenges of the low oil price, there has never been a more important time for companies to maximise the benefits innovation can bring to their business. That’s exactly what EC-OG Ltd has done and as a result will create 14 new jobs over the next three years and offer increased efficiency savings to the industry.”

Richard Knox, Managing Director of EC-OG Ltd said: “The backing of Scottish Enterprise has been pivotal in allowing us to take our prototype forward, and to be able to offer a commercially ready product within an accelerated timescale. The SPH fundamentally changes the economics of providing reliable electrical power for subsea systems. This will allow the development of future marginal oil & gas fields and to extend the life of existing infrastructure, prior to decommissioning. The current market, while challenging, offers a unique opportunity to bring this technology to market. We also believe Scotland offers a great platform in terms of supply chain and talent, to deliver these new products and export to global markets.”

Energy Minister Fergus Ewing said: “Innovation has always had a key role to play in the future of the oil and gas industry, and can, in part, be attributed to the success of the industry. We have also seen the important contribution that innovation can make towards the current cost and efficiency agenda.

“The Scottish Government will continue to do all that we can within our devolved powers to boost exploration, protect critical infrastructure, and support the oil and gas industry. This new subsea power generator system will help to drive the kind of efficiencies which are key to increasing international competitiveness and serves as a further reminder that, although the industry is facing a challenging period, that considerable North Sea opportunities remain.”

 

 

 

 

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