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BOEM Completes Environmental Review for Activities Offshore Atlantic

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BOEM Completes Environmental Review for Activities Offshore Atlantic

The Bureau of Ocean Energy Management (BOEM) has released a report moving the oil and gas industry one step closer to offshore activities off the Mid- and South Atlantic Coast, the agency told reporters on a conference call Thursday.

“The Department of the Interior is about to take a critical step impacting American energy production, job creation and energy security in the years ahead,” API Director of Upstream and Industry Operations Erik Milito said on a conference call Thursday.

The government released its final environmental impact statement for proposed seismic surveys in the Atlantic Outer Continental Shelf, establishing multiple mitigation measures designed to minimize the impacts to marine life while “setting a path forward for survey activities” that will update vintage data on offshore resources in the region.

BOEM’s Programmatic Environmental Impact Statement (PEIS), which describes and evaluates the potential environmental impacts of geological and geophysical  (G&G) survey activities in federal waters, classifies the safeguards to reduce or eliminate impacts to marine life and the most protective mitigation measures. These mitigation efforts include necessities to avoid vessel strikes, and special closure areas to protect the migratory route for the endangered North Atlantic Right Whale.

Currently, the government holds 2-dimensional (2D) seismic data in all areas of the Atlantic OCS, but this vintage data has been eclipsed by more advanced instrumentation and technology.

“Newer, needed surveys will help the government make informed decisions regarding whether and where to offer oil and gas leases, and engineering decisions regarding the construction of renewable energy projects,” the agency said.

“Seismic surveys are an advanced exploration technique used to locate potential oil and natural gas reserves. A positive environmental impact statement, or EIS, would move the government closer to allowing new exploration for oil and natural gas in the Atlantic,” Milito said to reporters.

The PEIS does not authorize any G&G activities, BOEM noted, rather it establishes a framework for additional mandatory environmental reviews for site-specific actions and identifies broadly-applicable measures governing any future G&G activities. Nine pending applications from G&G companies are in the queue for approval, BOEM stated in the conference call.

“We have to look at the pending applications and then work with the contractor to see if they’d like to proceed if they comply with the current regulations,” said BOEM Director Tommy P. Beaudreau.

In 2010, Congress directed BOEM to prepare the PEIS for potential environmental impacts of G&G activities, then the agency published the draft PEIS for public comment March 30, 2012. BOEM received more than 55,000 comments during the 90-day comment period, while also hosting 15 public meetings throughout the region.

The final PEIS is available for public comment until April 7 at www.boem.gov/Atlantic-G-G-PEIS/.  Once the comments are reviewed, the agency will release a Record of Decision. “The energy we have today results from plans set in motion years ago. To continue America’s energy renaissance in the future, we must explore and plan for the future now,” Milito said.

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Diver Carl Morris inquest: Call for stricter record checks

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The coroner at the inquest of a man who had a heart attack while diving in a Cumbrian lake has called for stricter checks of divers’ medical records.

Carl Morris died at Wastwater in January 2013 after getting into trouble at a depth of 164ft (50m).

The inquest heard the 39-year-old from Huddersfield, West Yorkshire was qualified to instructor level but did not have a valid medical certificate.

A jury in Cockermouth returned a verdict of death by natural causes.

Assistant coroner Robert Chapman said he would write to diving association PADI UK urging it to undertake more thorough checks of divers’ records.

The inquest was told Mr Morris was 6ft 1in (1.8m) tall, a heavy smoker and his weight fluctuated between 17 and 21 stone (107-133kg).

A post-mortem examination found he died from a heart attack as a result of a blocked coronary artery.

In a statement Mr Morris’ family said he was a “larger-than-life character who died doing the sport that he loved”.

His body was found after a two-day search.

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Subsea 7 Supports Hebron Oil Field Development Offshore Canada

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Subsea 7 Supports Hebron Oil Field Development Offshore Canada

The contract supports the Hebron heavy oil field development, located in the Jeanne d’Arc Basin 350 kilometres southeast of St. John’s, Canada.

The contract scope includes the project management, engineering and installation of two Offshore Loading Systems in a water depth of 92 metres. Engineering and project management will begin immediately from Subsea 7′s offices in St John’s.

Stephen Henley, Managing Director of Subsea 7 Canada, said: “This contract award further enhances our construction capability across offshore Canada, building on the successes of our subsea engineering and construction work for our clients in the region.”

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Record Net Income for Vantage Drilling

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Record Net Income for Vantage Drilling

Vantage Drilling Company reports record net income for the three months ended December 31, 2013 of $30.3 million or $0.09 per diluted share as compared to a net loss of $11.5 million or ($0.04) per diluted share excluding approximately $122.1 million of charges for the early retirement of debt, for the three months ended December 31, 2012.

Including the charges for the early retirement of debt in the prior year, the company reported a net loss of $133.6 million or ($0.45) per diluted share.

For the twelve months ended December 31, 2013, Vantage reports net income of approximately $16.5 million or $0.05 per diluted share excluding approximately $98.3 million of charges for the early retirement of debt as compared to a net loss of $20.7 million or ($0.07) per diluted share for the twelve months ended December 31, 2012, excluding approximately $124.6 million of charges for the early retirement of debt. Including the charges for the early retirement of debt, the company reported losses of $81.8 million or ($0.27) per diluted share and $145.3 million or ($0.50) per diluted share for the twelve months ended December 31, 2013 and 2012, respectively.

Paul Bragg, Chairman and Chief Executive Officer, commented, “We are pleased to announce record revenue, EBITDA and net income for the quarter with exceptional operating performance of all seven of our completed rigs. These exceptional results are due not only to the quality of our fleet, but also to the dedicated efforts of our workforce.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage’s primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

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Hydrex Repairs Vessels in Belgium and The Netherlands

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Hydrex Repairs Vessels in Belgium and The Netherlands

Doubler plates were welded on a 214-meter roro ship in Antwerp and an 85-meter cargo ship in Flushing, while an insert plate was installed on a 199-meter cargo vessel in Antwerp.

Hydrex on-site hull repair services include the renewal of both small and large areas of damaged hull plating. These repairs can be carried out above or below water, according to the circumstances, with tailor-made mobdocks. Normal commercial activities can therefore continue without disruption. These operations follow the Hydrex procedure for welding cracks in the vessel’s shell plating and they are approved by the major classification societies.

Hydrex diver/technician teams carry out these on-site hull repairs all over the world. In most cases the damaged area can be replaced with a permanent insert and no condition of class is imposed. This was the case with the operation on the cargo vessel in Antwerp.

Permanent repair prevents drydocking

A 350 x 300 mm insert was installed over several corrosion holes in the flat bottom plate of a 199-meter cargo vessel during the ship’s stay in Antwerp. Once the area was declared gas free, the diver/technician team positioned and secured a cofferdam over the outboard side of the damage. Next they cut away the frames covering the damage and removed a plate the exact size of the new insert. After the insert had been secured with full penetration welding, the class surveyor present approved the repair. The team then installed new frames because the old frames were too corroded. The divers worked in shifts to perform the operation as fast as possible.

Doubler plate installations in under 24 hours in Antwerp and Flushing

On the rare occasions where the damage does not allow such a repair, a temporary doubler plate is installed over the affected area. This allows the owners to keep to their schedule and have a permanent repair carried out during the next scheduled drydock visit.

In less than a day, a Hydrex diver/technician team positioned and secured a doubler plate over a hole in the water ballast tank of a 214-meter roro vessel. The plate, with a diameter of 300 mm, was installed during the ship’s stop in Antwerp. In Flushing divers installed a 40-mm doubler plate over two tears in the flat bottom of a 85-meter cargo ship.

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Divers find plane debris off Oceano

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Divers find plane debris off Oceano

San Luis Obispo County Sheriff’s divers found debris Sunday from a plane that crashed off the coast of Oceano in January.

On Jan. 14, a plane flown by David Casey, 63, of Friday Harbor Wash. crashed off the coast of Oceano. Both Casey and his passenger, Alan George Gaynor, 52, of Los Angeles, are believed to have died in the crash. Search teams have yet to find any human remains.

On Sunday, the sheriff’s dive team found a wing, fuselage, a carburetor and part of the manifold.

The Sheriff’s Office is now working with the National Transportation Safety Board to attempt to recover more remains. Divers have already spent hundreds of hours searching for the plane and its passengers.

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GDF Increases Gas Production Target as it Boosts Capex

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GDF Increases Gas Production Target as it Boosts Capex

French energy group GDF Suez plans to target gas production of between 59 and 63 million barrels of oil equivalent by 2016, compared to 52 Mmboe in 2013, as part of its strategy “to build integrated positions all along the gas value chain”, the firm said Thursday.

Reporting its results for 2013, GDF highlighted several successes it achieved in the gas sector during last year, including: entry into exploration and production licenses in Brazil and Malaysia; its agreement with Dart Energy to acquire a 25-percent stake in 13 onshore licenses with shale gas potential in the UK; and the commissioning of the Juliet and Orca field in the UK North Sea and of the Amstel field in the Netherlands.

In contrast to other European oil and gas firms’ moves recently to slash capital spending in order to boost dividend payments, GDF said it would boost growth by increasing its annual gross capex budget to between $12.3 billion and $13.7 billion (EUR 9 billion and EUR 10 billion) for the 2014-to-2016 period from (EUR 7.5 billion) in 2013.

GDF reported an eight-percent decrease in revenues to $122 billion (EUR 89.3 billion) for 2013, with profit on the EBITDA level falling by 13.2 percent to $20.3 billion (EUR 14.8 billion). GDF CEO Gérard Mestrallet commented in a company statement: “The group’s operational results in 2013 are strong and confirm our strategy in a very difficult economic environment for thermal power production and gas storage in Europe…

GDF Suez will increase its development capex program, already the most ambitious in the industry. Our strategy is clear: to be the benchmark energy player in fast growing markets and to be leader in the energy transition in Europe.”

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DONG Energy’s Westermost Rough Offshore Wind Farm Gets First Foundation

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DONG Energy’s Westermost Rough Offshore Wind Farm Gets First Foundation

The first monopile foundation was installed by GeoSea Innovation, one of the largest installation vessels in the world. The Innovation carried out the first five foundations to the site from the load out port in Aalborg, Denmark. The monopiles – which have a diameter of 6.5 metres and a weight of up to 800 tons – provide the base for the 6 megawatt (MW) turbines which will be installed later this year.

Duncan Clark, Westermost Rough Programme Director at DONG Energy said, “This is a significant point on the project, and the first foundation installed really kicks off a critical time for construction. Work now moves into a very busy and complicated phase over the coming months as we continue to install foundations, get ready to receive and install the offshore substation, begin to lay the cables that connect the turbines to the national grid, and then later in the summer, begin the installation of the turbines themselves.”

Construction is being managed from DONG Energy’s office in the Fish Dock, Grimsby, by a team of around 50 people. Work is also currently underway onshore at the Royal Dock in Grimsby to construct the permanent home for the Operations and Maintenance team who will service the wind farm over its 25 year lifetime.

The Westermost Rough offshore wind farm marks the first time that the next generation Siemens 6MW turbine will be used on a commercial scale – an important step on DONG Energy’s cost of energy reduction strategy. The wind farm will have a capacity of 210MW generating enough electricity to power approximately 210,000 homes.

Situated approximately 8km off the Holderness coast, the Westermost Rough site is one of two offshore wind farms that DONG Energy is currently constructing in the UK along with West of Duddon Sands on the west coast. The wind farms, which will be operational in 2015 and 2014 respectively, represent more than 500MW of green electricity which will be added to the UK Grid.

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S&MO Requires Assistance with Oil Removal from RFA Darkdale Shipwreck

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S&MO Requires Assistance with Oil Removal from RFA Darkdale Shipwreck

The tanker which sank in 1941 and now lies submerged in 45m of water off the South Atlantic island of St Helena, is believed to contain up to 5,000 m3 of fuel oil.

Action is required to remove the oil remaining onboard. A detailed survey of the wreck was carried out in 2012. The intention is to perform the hot tap removal of the oil using air divers though other technically viable, cost effective alternatives to air diving may be considered.

S&MO will deploy a team of divers to carry out the hot tap operation, however industry support is required to this activity. It is anticipated that this will include, but not necessarily be limited to providing an additional dive team and supporting services, chartering a suitable platform for diving operations, chartering a vessel for the recovered oil to be stored and transported in, and managing the disposal of oil.

The deadline for submission of tenders is March 17, 2014.

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Finnish divers’ final rest in Norwegian sea cave

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Finnish divers’ final rest in Norwegian sea cave

Police and rescue divers in Norway have determined that it would be too dangerous to recover the bodies of two Finns who perished in a diving accident earlier this month. The divers will find their final rest more than 100 metres below the surface.

The Norwegian public broadcaster NRK reported Tuesday that local police have decided not to risk recovering the bodies of two Finnish divers who died in northern Norway earlier this month.

The bodies of the deceased now lie about 110 metres below the surface in an underwater cave network in Pluragrotta, northern Norway.

On Monday police from Helgeland conferred with rescue divers and other officials, and determined that any attempt to raise the bodies would be too dangerous.

“Unfortunately we detected too many dangerous challenges in the caves. It would not be possible for divers to descend two abreast so it would be very difficult to see how we could get the bodies out,” said dive leader Mark Dougherty during a press conference.

The only way to access the cave would be for one diver to retrieve the bodies, and this would not be a reasonable risk for a single diver.

On February 6, two Finnish divers died during the accident and three others had to be taken to hospital to be treated for decompression sickness. The survivors not suffer any physical injuries.

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