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USA: Florida II Survey Vessel Suitable for Archaeological Research

The Florida II is a survey vessel, but it has the capability to provide much more information than just water depth. The design specifications and specialized equipment it carries make it possible to do many different types of surveys, and suitable for underwater archaeological research.

“As part of National Environmental Policy Act (NEPA) compliance, we have to do cultural resource surveys on all projects we initiate, whether they are terrestrial or underwater, at least a year in advance of work being done,” said Natalie Garrett, archaeologist. “That includes upland dredge disposal sites and inlets like Jacksonville Harbor. We need to make sure that there are no historic sites, including shipwrecks, such as those from the Civil War and World War II.”

We have to identify any sites within our project areas and coordinate with the State Historic Preservation Officer (SHPO) and Tribal Historic Preservation Officer (THPO) and take any actions required to make sure the sites aren’t adversely affected,” said Wendy Weaver, an archeologist with special training in underwater archaeology, who has been evaluating terrestrial and submerged cultural resources with the U.S. Army Corps of Engineers for five years.

During a cultural resources survey, archaeologists look for historic properties, including structures, shipwrecks and potential prehistoric or other archaeological sites.

Shipwrecks are protected by the state of Florida, and in federal waters, they are protected under the National Historic Preservation Act (NHPA) and the Abandoned Shipwrecks Act. Sometimes there will be a buffer zone around a site, and prohibitions against any bottom-disturbing activities, such as dredging, dumping or anchoring.

“I was really impressed with the capabilities of the Florida II. We are capable of doing many archaeological surveys in house, rather than having to contract [the work] out,” said Weaver.

The Florida II is fully equipped with specialized software, hardware and equipment that is deployed and towed off the stern of the vessel. One specialized piece of equipment that can be towed is a magnetometer, which is similar to a metal detector. It picks up on materials that have some component of iron, but does not detect gold, silver, aluminum or brass. Things like fiberglass hulls would not be picked up, but rigging and engine parts would. Metal ship hulls, cannons, anchors and anchor chains and even old wooden shipwrecks with nails could be detected, as well as things like unexploded ordnance. Magnetometers are also helpful for finding shipwrecks that have been covered by sand during hurricanes.

Another feature is the side scan sonar, which takes a picture of the surface using sound waves. It can find boats, debris and objects like crab traps sitting on the surface.

The sub-bottom profiler penetrates below the surface. It shows reef areas and other formations that might support marine life, as well as old shorelines, where it is common to have archeological sites. It can show things like old riverbeds and shell middens, piles of shell that may indicate that there was an archaeological site there before the sea level rose and covered it.

Archaeologists know that archaeological sites on land often project out onto the continental shelf, since some of the areas that are currently underwater once were previously on dry land. For example, when the paleochannels (former river channels that don’t exist anymore because they are now totally underwater) of the Econfina and Aucilla Rivers were followed three miles out into the Gulf of Mexico, archaeologists found a mastodon kill site in about 15 feet of water. Arrowheads, mastodon teeth and bones were evidence that the site was where a huge mastodon was killed and butchered.

“That’s why it’s important to look for archaeological sites underwater,” said Weaver. “There’s always the potential for them to occur. We have found some promising sub-bottom data on the Atlantic Coast, but haven’t identified any archaeological sites as of yet.”

“We have done some surveys in smaller vessels in shallower water, but offshore, the Florida II provides a bigger, more stable platform that allows work to continue even in rougher weather,” said Weaver. “In addition, the survey grid is programmed in, so the transects that the vessel follows are very uniform.”

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Fugro Opens New Facility in Luanda, Angola

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To accommodate the future needs of the rapidly growing Angola offshore oil and gas industry Fugro has opened its new facility in the SONILS Oil Service Centre in Luanda. Angola is now the second largest oil producer in Sub-Saharan Africa, after Nigeria.

The official opening of the facility on 10 July by Mrs Lilianne Ploumen, the Dutch Minister for Foreign Trade and Development Cooperation, was attended by the Angolan Minister for Construction, Waldemar Pires Alexandre as well as the Secretary of State of the Ministry of Petroleum, Eng. Anibal Silva; the Dutch Ambassador to Angola, Mrs Susanna Terstal; and local dignitaries and clients.

“Our new site demonstrates Fugro’s strong commitment to the Angolan market,” said Ms Christina Brokahne, Managing Director of Fugro Angola as she took Mrs Ploumen and guests on a tour of the facility, which comprises a building area of approximately 7,000 m2.

The new site hosts a double storey administrative building housing offices, conference rooms, a training facility and staff canteen. Attached to the office building is a large warehouse facility of 2,500 m2 with a 20-ton overhead crane and ample storage space, as well as workshops for equipment testing and maintenance, a dedicated area for subsea equipment and ROV tooling and a large state-of-the art geotechnical laboratory.

The ceremony also provided an opportunity for Fugro Angola to demonstrate its practical support for the ‘Challenge the Silence’ programme of the Forum de Mulheres Jornalistas para a Igualdade no Genero. Mr Herivaldo Augusto, Director Fugro Angola Limitada and Mr Wilhard Kreijkes, Fugro Regional Director Africa together with Mrs Ploumen presented a cheque to the charity, which raises awareness of gender equality and domestic violence in Angola.

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Repsol Profit Tops Forecasts On Surprise Refining Strength

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Spanish oil company Repsol , which is on the hunt for acquisitions, beat quarterly profit forecasts as a surprise surge in refining margins helped cushion production declines due to shutdowns in Libya. Repsol, the first oil major to publish second-quarter results, on Thursday reported a 19.2 percent jump in its refining margin from a year ago as prices for heavier-grade crudes fell.

“U.S. refineries are using more light crude and this has helped the spread for heavier crudes used by Repsol. But overall the profit beat is the sum of a series of small surprises across different divisions,” said Intermoney analyst Alvaro Navarro.

Repsol’s refining margin, an industry measure of profitability, rose to $3.10 per barrel. The rise contrasts with shrinking margins throughout Europe, where an economic slowdown has hit oil demand in the past few years, leaving European refineries operating at overcapacity. Oil demand in Spain, reflected in the company’s marketing division, was stable in the second quarter from a year ago, indicating the worst of the country’s economic crisis may be over.

Spain’s unemployment rate fell to its lowest level in two years in the second quarter, data showed on Thursday, lifted by strong job creation in the services sector and adding to hopes of a sustained economic turnaround. Repsol’s recurring net profit adjusted for one-time gains and inventory effects fell 2.7 percent to 390 million euros ($524 million) from the same period a year ago, but was well above an average Reuters poll forecast of 296 million euros.

The unexpected strength from Repsol’s downstream business, which also included growth at its chemicals arm, was a reverse in the company’s earnings trend, which in recent years had been supported by growth at its exploration and production division.

Adjusted net income from its upstream division nearly halved to 145 million euros in the second quarter from a year earlier.

“We think it is significant to note that Repsol earned less in its upstream division than in either downstream or Gas Natural Fenosa,” where Repsol owns a 30 percent stake, said RBC Capital Markets analyst Peter Hutton.

Repsol’s total production fell 5.8 percent to 338,000 BOE (barrels of oil equivalent) a day, with new output from countries like Brazil, Bolivia and the United States failing to offset stoppages in Libya, where oilfields and ports have been seized by rebels since the fall of Muammar Gaddafi in 2011.

Production in Libya resumed in July, Repsol said, but the cash-rich company remains on the hunt for new exploration and production assets.Canada’s Talisman Energy Inc said on Wednesday it had been approached by Repsol “with regards to various transactions”. 

Repsol, which completed its exit from Argentina in May with the sale of YPF shares, booked capital gains from the operation that drove a 95 percent surge in non-recurring profit to 520 million euros in the second quarter and helped the firm cut debt. Net debt fell 55.4 percent to 2.39 billion euros at June 30 from a year earlier, Repsol said, adding that it had 11.2 billion euros of liquidity. ($1 = 0.7437 Euros)

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Q&A: GE’s GirlsGetSET Initiative

In December 2013, Rigzone reported that the UK remains behind the curve when it comes to involving women in the engineering workforce. A “Review of Engineering Skills” by Professor John Perkins for the UK Department of Business, Innovation and Skills found that women accounted for less than 10 percent of the country’s professional engineers, meaning that there were 27 other European Union countries where women accounted for a greater proportion of engineers.

Previously, a Royal Academy of Engineering analysis of UK labour force data found that women made up just 6 percent of the engineering workforce between 2004 and 2010. In his report, Professor Perkins issued a “call to action” to industry and government to develop much-needed engineering talent in the UK. Now the oil and gas industry is playing its part by getting into schools to encourage girls to pursue science, technology, engineering and mathematics (STEM) subjects and consider engineering careers. 

GE Oil & Gas recently launched its GirlsGetSET initiative in northeast Scotland. This initiative is designed to raise awareness among female pupils of the wide range of opportunities available through pursuing a career in science, engineering and technology. The launch day saw GE Oil & Gas invite 120 girls (between the ages 11 and 15), as well as teaching staff from three northeast Scotland schools to its subsea headquarters in Aberdeen to take part in workshops and networking events.

One of the brains behind the initiative is Kimberley Kirkham – a 27 year-old GE engineer with degrees in forensic engineering and safety critical systems engineering. Kirkham had previously worked for five years at GE’s aviation business, where GirlsGetSET was first developed, and helped to bring the initiative over to GE Oil & Gas when she joined the division recently.

Here, Rigzone talks to her about what schools, universities and the oil and gas industry can do to help create more female engineers. 

Rigzone: What can the oil and gas sector do better in order to attract young women into the industry?

Kirkham: Companies in the oil and gas industry have a responsibility to make engineering more accessible, demonstrating what is involved and providing positive role models so that young women can see someone who has done it before. We need to challenge the “dirty hands” stereotype that still exists because, in fact, an engineer could be the person sitting at a computer designing the software required to run a subsea control module.

We also need to show that engineering can be a great pathway into other opportunities, because not everyone that studies engineering goes on to be an engineer their whole life. Engineers are typically logical people with logical mind-sets, which can make it a good entry route into leadership or management roles. My father was an engineer and he strongly encouraged me into the field, so there wasn’t any stigma attached until I got to university. That’s where I found you have to be a strong character as a female in a male-dominated world to challenge those stereotypes.

It’s not easy. To get more women into engineering, you have to have more women in engineering, so the more effort we make towards that today, then the more the industry will be seen as attractive going forward.

Rigzone: Where are schools and universities failing when trying to get young women into engineering degrees and careers?

Kirkham: When schools speak to girls about careers in the sciences, more often than not the focus is on being a vet or being a doctor. Engineering isn’t typically sold to girls as a viable option. So we need to work with them to change young people’s understanding of STEM and show them how fun it can be, as we do through initiatives like GirlsGetSET.

The message is: let’s not just focus on young people but teachers too. Parents also have a critical role to play. I don’t think I would be an engineer if it wasn’t for my dad. When I got to university, I found there was a lot of support, but when you look at the numbers of girls studying science and maths at A’ Level, the percentage is really low. Take that percentage and then look at how many of them go on to study engineering at university and it’s even lower so parents and teachers need to help nurture that interest. 

Rigzone: How can universities make their engineering degrees attractive to young women who already have a scientific bent?

Kirkham: The thing I loved most about my degree was the module in which we tested materials until they failed. I loved breaking stuff. It was one of my favourite modules, which I first experienced when I went to one of the university’s open days. That’s when it clicked in my mind and I thought, this is for me.

I like problem solving, I like figuring out what’s gone wrong and then trying to test things to either prove or disprove a theory. That experience at the open day showed me that engineering could give me the chance to do the things I enjoyed.

I would say that universities need to get out into schools more – sponsor students in their second or third years of relevant degree courses to go into schools and show young people how much enjoyment they can get from studying subjects like engineering.

Rigzone: What can schools do to foster an interest in STEM subjects among girls and young women?

Kirkham: To me, engineering is more about problem solving and trying to find solutions to different issues. I think what schools need to do more to encourage an interest in those types of subjects is to have pupils working together in practical sessions as teams – because engineers never work alone – providing problems to them in a project-based format that they can then work together to solve.

I think we also need to show young people the engineering, technology and logic that are behind things they use every day, such as mobile phones. Mobile phones will have started with a problem – perhaps the desire for greater connectivity and communication. Engineers solved that problem by creating a portable phone, but then there was another problem in that people wanted to send text messages as well as make phone calls, then take photographs from the same device.

The technology has been evolved by engineers to meet those changing needs. By showing young people those examples, we can help give them a positive association with STEM. 

Rigzone: And what skills/knowledge can women bring to an engineering role that men might lack?

Kirkham: Teams should be diverse. In my opinion, I wouldn’t say there’s anything specific that a woman can bring to the table that a man cannot, but every human being has difference aspects to their personality; different backgrounds and experiences that they can draw from.

Woman may very well have had a different path, because of the stereotypes they have potentially had to overcome but ultimately to me it’s about diversity. The more people, minds and backgrounds in a room, the more creativity and innovative thinking that can be seen. That’s the key; those different levels of experience and opinions.

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Strike Cuts Oil, Gas Output In Argentina’s Neuquen Province

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Argentina’s state oil producer YPF said on Thursday a labor strike in the energy-rich province of Neuquen will cut output by 80,000 barrels of crude oil and 3 million cubic meters of natural gas, costing the company some $12 million. Argentina’s vast Vaca Muerta shale oil and gas formation, thought to be one of the world’s largest, is partially located in Neuquen, which accounts for 64 percent of the country’s natural gas production.

If the strike, which began at 8:00 p.m. local time (2300 GMT) on Wednesday is over in 24 hours and oilfields take 48 hours to get back on track, the total cut in output could be 160,000 barrels of oil per day and 6 million cubic meters of gas, YPF said. Workers were striking after a small independent refinery dismissed several dozen workers.

“YPF considers this measure absolutely unjustified and it has a negative impact on production,” the company said in a statement, several hours after Reuters reported that production was paralyzed in Neuquen. YPF, which was nationalized in 2012, saw its production of hydrocarbons jump last year, thanks in part to Vaca Muerta.

The country needs foreign investment to develop the formation and has signed one major Vaca Muerta deal, a $1.24 billion joint venture with U.S.-based Chevron Corp. 

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Noble Energy’s Profit Beats As Output From US Fields Rises

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Oil and natural gas producer Noble Energy Inc reported a better-than-expected profit in the second quarter, helped by a rise in production from its wells in Pennsylvania’s Marcellus shale field and Colorado’s Denver-Julesburg basin. While production from the Denver-Julesburg basin rose in the quarter ended June 30, Noble said the output fell below its expectations, hurt in part by downtime at a third-party processing plant and facility upgrades at over 60 wells.

Still, output from the company’s U.S. fields rose more than 50 percent in the quarter compared with a year ago. Noble’s total oil and gas production rose 14 percent to average 290,000 barrels of oil equivalent per day (boe/d), after adjusting for divestments. The company’s net income nearly halved to $192 million, or 52 cents per share, in the quarter due to a $187 million loss on commodity derivatives.

However, its adjusted profit of 87 cents per share beat the average analyst estimate of 79 cents, according to Thomson Reuters I/B/E/S. Noble, which operates a giant natural gas field off Israel’s Mediterranean coast, said it expects its third-quarter natural gas sales in the country to be hurt by the ongoing conflict in the region. A truce between the Jewish state and Hamas-led Islamist guerrillas has remained elusive despite intensive mediation bids.

Noble, which also has operations in deepwater Gulf of Mexico and offshore West Africa, said infrastructure capacity constraints in the DJ basin would also weigh on its production in the second half of the year. The company said it expects to produce 290,000-305,0000 boe/d in the third quarter and 310,000-330,000 boe/d in the fourth quarter. Noble’s shares closed at $74.21 on Wednesday on the New York Stock Exchange.

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Breitburn Energy To Buy QR Energy For $1.46B

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Breitburn Energy Partners LP agreed to buy QR Energy LP for $1.46 billion in a deal to create one of the largest U.S. oil producers structured as a master limited partnership. QR Energy’s stock rose as much as 10 percent to $20.85, its highest in nearly two years. Breitburn’s shares fell 3 percent.

U.S. energy companies have created a number of master limited partnerships (MLP) in recent years because they pay no corporate taxes if they distribute most of their profits to investors. Investors also favor MLPs for their high yields. Breitburn’s offer, which represents a 19 percent premium to QR Energy’s Wednesday close, is based on 64.9 million outstanding QR Energy shares, the companies said in a joint statement on Thursday.

QR Energy unit holders will receive 0.9856 of one Breitburn unit for each QR Energy unit they hold. That works out at $22.48 per unit, based on Breitburn’s closing price on Wednesday.

“At first glance, the deal looks expensive for Breitburn,” Raymond James analyst Pavel Molchanov wrote in a note.

Breitburn, headquartered in Los Angeles, has oil and gas assets in several U.S. states, including Michigan, Oklahoma and Texas. Some of its fields date back to the 1800s. Houston-based QR Energy is developing mature onshore fields in several regions, including the Permian basin in Texas.

Breitburn’s senior management will lead the combined company, which expects to produce about 57,300 barrels of oil equivalent per day, around two-thirds of which will be oil and natural gas liquids. The deal, approved by both companies’ boards, is expected to add to Breitburn’s distributable cash flow per unit. The company said it planned to raise its annual distribution to $2.08 per unit from $1.95.

Breitburn said it had agreed with Wells Fargo Bank, N.A. to increase its existing credit facility with the bank to $2.5 billion to help fund the acquisition. Also on Thursday, Breitburn reported a 27 percent rise in second-quarter production. Weak oil prices, however, resulted in the company recording a quarterly loss compared with a profit a year earlier.

The deal is expected to close in late 2014 or early 2015 and is valued at about $3 billion, including QR Energy’s debt and outstanding class C convertible preferred units. UBS Investment Bank advised Breitburn on the deal, while RBC Capital Markets and Greenhill & Co LLC advised QR Energy.  

QR Energy’s shares were up 8.7 percent at $20.52 in afternoon trading on the New York Stock Exchange. Breitburn’s stock was down 3.2 percent at $22.07 on the Nasdaq.

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Minehunter Rimini Finds Intact Naval Mine in Black Sea

Minehunter Rimini (engaged in the Standing NATO Mine Countermeasures Group 2) identified a mine still with its releasing device in the Black Sea.

The discovery was exceptionally uncommon, due to the absence of mud on the device and the still existing connection with the anchor, as well as the physical-chemical properties of the water, thoroughly different from the Mediterranean in terms of sound speed in water and sonar performances.

Last July, at the end of the international exercise Breeze 2014, organized by the Bulgarian Navy for the NATO before the stop in the Romanian port of Constance, the Italian unit Rimini – under the command of Lieutenant Claudia De Cesare – was engaged in search and identification of devices laid on sea beds off the Romanian coast during WWII.

In fact, these devices still represent a threat to safety of navigation, thus affecting fishing and other economic activities. This kind of operations, carried out in diverse marine environments with the possibility of cooperation with allied Navies, represent a training opportunity for our crews and make use of our units’ dual-use features in terms of:

– Shipwrecks, stricken aircraft archeological finds;
– Mapping of sea bottom;
– Operations enhancing safety at sea, such as local fishing, seriously jeopardized by these devices.

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Update: Costa Concordia Begins Navigation Towards Genoa

This morning at around 11 am, the Concordia has begun its navigation towards Genoa with an average speed of 2 knots.

The arrival in Genoa is planned at the moment between Saturday July 26th and Sunday July 27th.

Preliminary activities for Concordia departure maneuvers have begun at 6 am this morning.

After Concordia departure, environmental monitoring will continue in the upcoming days.

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Talisman Says Approached By Spain’s Repsol About Deal

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Talisman Energy Inc shares rose 13 percent on Wednesday as it confirmed it has been approached by Spain’s Repsol SA about potential deals, raising the prospect that one of Canada’s largest independent oil companies will sell off major assets or be taken over. Talisman, which has a market capitalization of nearly C$11 billion ($10.2 billion), did not provide details saying only it had been contacted by the Spanish firm “with regards to various transactions.”

The company, which operates in North America, southeast Asia, the North Sea, Colombia and elsewhere, has long been considered a takeover target as its stock slumped on weak natural gas prices.

David Meats, an equity analyst with Morningstar, said that Talisman’s mix of operating assets, low-risk development stage projects and exploration plays would be attractive to a buyer like Repsol.

The Spanish company is cash-rich since settling a two-year dispute with Argentina earlier this year over the seizure of the company’s business there.

“It’s a mix of assets that are cash flow positive now, funding the development of low-risk and quite stable resource plays in North America,” said Meats. “The cherry on top is the really the exploration prospects like Kurdistan (in Iraq), which have huge potential for upside.”

Talisman may be more attractive for its parts than the company as a whole.

It operates in some of the world’s most desirable petroleum areas, including the Eagleford shales in Texas, the Marcellus shale region in the U.S. Northeast, Western Canada’s burgeoning Duvernay and Montney shales. It also has oil assets in Vietnam and Indonesia.

But its North Sea assets, much of which are held in a joint venture with China’s Sinopec, have consistently missed production targets and weighed on its stock.

The stock rose C$1.40, or 13 percent, to close at C$11.97 on the Toronto Stock Exchange, though it remains below its 3-month high of C$12.07 on May 7.

Repsol confirmed on Wednesday it was considering possible acquisitions to boost its upstream business but said it had not made a firm decision on the matter.

“As the company has said in recent months, it is studying different deals in exploration and production … including possible deals with Talisman,” Repsol said in a regulatory filing in Spain.

The Spanish company is to report second-quarter results on Thursday in Madrid, followed by a conference call that could provide details on a deal.

Banking and industry sources told Reuters in January that GDF Suez PA approached the Calgary-based company with an offer late last year, but the two sides were unable to reach an agreement on terms. The French utility later denied any takeover plans and insisted on its strong organic growth prospects.

Talisman has been cutting debt and trimming operations in an effort to boost its share price to assuage disgruntled shareholders and activist investors such as Carl Icahn.

The stock surged last October when Icahn took his original 6 percent stake, hitting a 2013 high of C$13.83. But it had dropped to a 52-week low at C$10.48 on Tuesday.

COMPANY OR ASSETS?

Aside from the $6.3 billion raised from exiting its business in Argentina, Repsol has also said it could sell its 30 percent stake in Spanish utility Gas Natural SDG SA, worth about $9 billion, to spend on acquisitions.

That could put the Spanish company in a position to afford Talisman, but analysts were mixed on whether it would be looking to buy the Canadian firm outright or just take certain assets.

“What everyone wants to know right now is whether or not there was corporate bid for the whole company,” said Michael Dunn, an analyst with FirstEnergy Capital. “The press release leaves open that possibility without confirming it.”

A takeover would diversify Repsol’s geographical mix. But analysts noted Talisman’s output is still dominated by gas, and that would breach Repsol’s criteria of favoring oil-rich companies in deals.

If Talisman is acquired, it would be the largest deal in Canada’s energy sector since 2013, when CNOOC Ltd acquired Nexen Inc.

($1 = 1.0742 Canadian dollars)

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