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www.aogdigital.com january/february 2013 3

Contents January/February 2013

REGIONAL UPDATES

4 BriefsAsia Pacific oil and gas news and views.

SHIPYARDS

8 A robust outlookAlthough some yards saw a drop in profit this past year, the overall

view of the industry is one of optimism for growth in 2013. John

Mueller reports.

SEISMIC

12 Multi-client work lines upJohn Mueller looks at 2D and 3D seismic surveys in Australia and

Indonesia, EM data acquisition in a number of Asian localities, and

3D seismic data gathering in South Korea.

GEOGRAPHICAL FOCUS

14 Natural gas reserves boostAs Australia grapples with chronic oil production decline in the face

of rising imports, the buoyant gas sector offers the prospect of rising

revenue from LNG exports. John Mueller reports.

SOLUTIONS

18 Products & TechnologyA review of new products and technologies.

ACTIVITY

20 Company news & ContractsA roundup of the latest news from companies in the region.

14

8

january/february 2013 ASIAN OIL & GAS

22

The thickness, in meters, of net hydrocarbons

encountered at the Adong Kecil West-1 well in Sarawak.

(Source: Petronas)

The additional energy needed by 2035 to

sustain global growth. (Source: US Energy Information Administration)

53%2016 The year Apache expects first production from

the Julimar development off Western Australia.

(Source: Apache)

The amount by which Rosneft’s hydrocarbon reserves

grew in 2012. (Source: Rosneft)

2,500,000

8%

The expected production capacity in tonnes per annum at the Abadi LNG project in Indonesia. (Source: Inpex)

The average, in barrels per day, China’s oil demand

rose in December 2012.(Source: Platts)

349

The number of construction phases into which the

South Pars development (right) is separated.

(Source: Pars Oil & Gas)

Numerology40% The amount by which Malaysia plans to cut

carbon emissions in 2020. (Source: Najib Tun Razak, Malaysian Prime Minister)

28

NumerologyNumerology

10,580,000

22

18



january/february 2013 www.aogdigital.com 4

Asian Oil & Gas Atlantic Communications LLC,1635 W Alabama, Houston,Texas 77006-4101, USATel: +1 713 529 1616. [email protected]

Asia Pacific Editor: John MuellerUS tel: (+1) 802 229 [email protected] Pacific correspondent: June Jonet Singapore tel: (+65) 811 26 [email protected] & layout: Ian McInnesPublisher: Brion [email protected]

Advertising representativesAUSTRALIA: June [email protected] INDONESIA: Tuti SayogolTel: (+62) 21 582-5503 ITALY: Fabio PotestaTel: (+39) 10 570 4948 JAPAN: Hajime SaitoTel: (+81) 3 3661-8373MALAYSIA:Koh Earn Soo, Tel: (+603) 6280 4136 [email protected]/BELGIUM/GERMANY: Arthur Schavemaker, Tel: (+31) 547 275005 [email protected]: Brenda HomewoodTel: (+44) 1732 459683 [email protected]: June [email protected]/FRANCE: Mike CrampTel: (+44) 1732 459683 [email protected]: Bill KrullTel: (+1) 713 535 1521/874 [email protected]

january/february 2013

www.aogdigital.com

regional update

AUSTRALIA Offshore Western Australia, the

Tallaganda structure portion within permit

WA-351-P is estimated to have a gross

recoverable gas resource of 500bcf of gas

including 222bcf of P50 contingent resource

and 278bcf of P50 prospective resource.

Tallaganda-1, drilled in 2Q 2012, confirmed

a gas discovery in WA-351-P. The Tallaganda

structure straddles adjacent WA-335-P to the

south, both permits operated by BHP Billiton

Petroleum. The southern portion of the

structure extending into WA-335-P has yet

to be drilled. Geological assessment of the

discovery and remaining block potential is

underway with no plans for further drilling in

WA-351-P this year.

regional update

Update2016/17. The field is part of the G block PSC

awarded by Petronas in 1995.

The Malikai development in water 500m

deep will involve 17 wells drilled from a

23,500t tension leg platform (TLP) production

facility, for which the construction contract has

reportedly been awarded.

NEW ZEALAND New Zealand Energy

Corporation (NZEC) has placed its fifth oil

discovery onshore the Taranaki Basin on

production, the Waitapu-2 well, drilled to a total

measured depth of 2085m and initially test

flowed at 325b/d and 800mmcf/d of natural gas.

NZEC, formed in 2010 with 214,000 acres

held in joint venture with L&M Energy in

the onshore Taranaki Basin, made its first

commercial discovery in 2011 in this North

Island region. On completion of an ongoing

eight-well program, the company expects overall

production to reach 3000boe/d by the end of 1Q.

In its 100%-held, 2.06 million acre onshore

East Coast Basin asset, NZEC is investigating

two oil shale formations.

CHINA BP China has agreed to the sale of

its 34.3% interest in the Yacheng gas field in

the South China Sea offshore Hainan Island

to KUFPEC for $308 million cash, the deal

expected to conclude in 2H 2013.

Yacheng, which started commercial production

in 1996, was operated by BP until 2004, and

then by its major project partner CNOOC. The

field supplies natural gas via a 780km pipeline

to Hong Kong for power generation. Additional

natural gas, condensate, and LPG are sold to

customers on Hainan Island.

The Yacheng partnership will consist of

CNOOC (51%) and KUFPEC (49%).

MALAYSIA Shell and partners have taken

a final investment decision to develop the

deepwater Malikai oil field, offshore Sabah,

east Malaysia, which is expected to start up in




MALAYSIA RHP (Mukah), a subsidiary of

Singapore-headquartered, oil & gas E&P

company RH Petrogas (RHP), has secured the

PSC rights and operatorship of block SK331

onshore Sarawak in a respective 80:20 joint

venture with Petronas.

The PSC commitment entails a three-year

work program inclusive of seismic acquisition

and reprocessing, exploration drilling, and

geological/geophysical evaluation.

The block covers about 11,600km2, which

includes the area where the Bintulu LNG

terminal is located, and is the onshore geological

extension of the Balingian Basin.

THAILAND Salamander Energy has achieved

first crude oil from the Bualuang Bravo

platform, produced from its Bualuang field in

block B8/38, located in the west-central sector of

the Gulf of Thailand.

The first producing Bravo platform well,

BB-04H horizontal, drilled and completed

with the jackup drilling rig Atwood Mako, is

anticipated to average 1500b/d, followed by

a second development well from the Bravo

platform, BB-10H.

The Bualuang field, averaging around 7200b/d

in 2012, is currently producing over 8300b/d. As

the development program progresses with the

drilling of an additional 15 wells, the production

rate from Bualuang in 2013 is projected to be

within a range of 11-14,000b/d.

TAJIKISTAN Total has signed an accord

with Kulob Petroleum, a Tethys Petroleum

subsidiary, and CNODC, a subsidiary of CNPC

of China, to farm into the Bokhtar PSC in

Tajikistan, resulting in both Total and CNODC

holding a 33.335% interest, while Kulob retains

33.33%. The huge 35,000km2 Bokhtar PSC

covers the eastern end of the prolific Amu Darya

Basin where a number of giant gas discoveries

have been made in Jurassic carbonate

reservoirs.

Tethys has acquired seismic data to assist in

identifying the location of the first exploration

well by end-2014.

In the Gustavson Associates-authored Tajik

Resource Report, a total gross mean unrisked

recoverable prospective resource of 27.5 billion

barrels of oil equivalent is estimated across the

Bokhtar PSC.

MALAYSIA Petronas has discovered oil and

gas with Adong Kecil West-1 in block SK333,

the first onshore Sarawak, east Malaysia,

since 1989. Drilled to a depth of 3170m, 20km

northeast of Miri, by operator JX Nippon Oil &

Gas Exploration and joint venture partner of

Petronas Carigali, the well intercepted a total

hydrocarbon thickness of about 350m. Drill

stem tests flowed at about 440b/d of oil and

11.5mmcf/d of gas.

AUSTRALIA ExxonMobil and BHP Billiton are

to jointly spend over US$1 billion to construct

a gas conditioning plant at their co-owned

Longford facility, in Gippsland, Victoria,

southeastern Australia. BHP’s share is

US$520 million.

The conditioning plant, able to produce

up to 400mmcf/d, will receive gas feed from

the Kipper, Tune, and Turrum fields in the

Bass Strait, a $4 billion project which the two

companies and Santos are developing. BHP

Billiton and Esso Australia Resources (operator)

each have a 50% interest in the Gippsland Basin

Joint Venture. Construction of the plant is

expected to commence in 3Q 2016.

NEW ZEALAND Petrobras has surrendered its

12,330km2 petroleum exploration permit

PEP 52707 in the Raukumara Basin, off the

east coast of North Island, reportedly in part as

a result of prioritizing its worldwide oil and gas

portfolio.

Since award of the block in 1Q 2010, Petrobras

has acquired and processed 2D seismic over the

license which is located in waters 1000m deep, a

relatively unexplored area where no commercial

activity had previously been undertaken.

CHINA Sunwing Zitong Energy, a subsidiary

of Ivanhoe Energy, has completed transfer of

its 90% participating interest in the contract

for exploration, development, and production

in the Zitong block, to Shell China Exploration

& Production for $105 million. Mitsubishi Gas

Chemical holds the remaining 10%.

The 2670km2 Zitong gas exploration block

is located in Sichuan Province, south central

China.

Sunwing Energy made gas discoveries with

exploration wells Yixin-2 and Zitong-1 in 2010

and submitted a development plan to CNPC.

regional update

PHILIPPINES Galoc phase

two development in SC14C

is progressing with Diamond

Offshore’s semisubmersible

drilling rig Ocean Patriot

expected to begin operations

in 2Q 2013. Located offshore

the northwest coast of

Palawan Island in 290m water

depth, two subsea wells are

to be drilled, completed, and

tied into existing infrastructure

that includes the FPSO

Rubicon Intrepid, with a view

to more than doubling output

from current levels of around

6000b/d.

Other contractor awards

include Skandia Hercules for

offshore construction, and

DOF Subsea Asia Pacific

and Dril-Quip Asia Pacific

for subsea engineering,

wellheads, and trees.

UAE Dana Gas has

signed agreements with

the governments of Sharjah

and Ajman to develop and

operate the shared Zora

gas field located 40km

offshore. Work includes

drilling horizontal wells and

installation of an offshore gas

processing platform that will

receive gas through a 25km

offshore pipeline.




n india Hardy Oil & Gas has obtained a

favorable judgment from the government of

India regarding its Ganesha-1 non-associated

gas discovery, located in exploration block

CY-OS/2 offshore the southeast coast of India,

whereby appraisal activities can now be

undertaken.

Formerly, in 2009, the Indian regulator DGH,

which had classified the find an oil discovery,

declared that the appraisal period for the

1Q 2007 Fan A-1 exploration well (Ganesha) had

lapsed.

CY-OS/2, covering 859km2 in the northern

part of the Cauvery Basin offshore Pondicherry,

comprises two retained areas. The northern area

includes the Fan A-1 discovery and the southern

area lies immediately adjacent to the HEPI

operated PY-3 field.

n china Chevron China Energy has entered

into PSCs with China National Offshore Oil

Corporation (CNOOC) whereby it will hold

100% interest and operatorship of shallow water

n indonesia Salamander Energy has plugged

and abandoned the South Kecapi-1 DIR/ST

(SK-1) exploration well in the Bontang PSC as

an oil and gas discovery, the first well in a

multi-well program in the North Kutei Basin,

offshore East Kalimantan.

Drilled to total depth of 6601ft by semisub

Ocean General, SK-1 encountered a combined

131ft of net oil and gas pay in high-quality,

stacked channel sandstones. A drill stem test

within one primary channel sand target flowed

light oil at 6000b/d and 8mmscf/d of gas.

The semi will next drill the North Kendang-1

exploration well in the South East Sangatta

PSC, also off the east coast of Kalimantan.

n australia Inpex has made arrangements

with over 30 credit agencies and commercial

banks for US$20 billion in project finance loans

for the Ichthys LNG project in the Browse Basin,

offshore Western Australia. Japan Bank for

International Cooperation is contributing

$5 billion, the largest portion.

regional update

n kazakhstan dunga phase

two production has delivered

first oil. Maersk oil’s $1 billion

project involving the onshore

dunga oil field, located in the

283km2 dunga block borders

the shore of the caspian sea

in kazakhstan.

over the next three years,

four drilling rigs at dunga will

complete a new well every

three weeks reaching a total

of 198 wells by 2015 when

output is expected to be

30,000b/d.

For more information about these events or other SPE conferences, workshops, and forums, visit www.spe.org/go/ap.

Asia Pacific EventsRegister now for these upcoming SPE events and meet with other professionals to learnabout and discuss the latest E&P technical advancements:

SPE is what you need.

Asia Pacifi c Oil and Gas Conference and Exhibition

22–24 October 2013Jakarta, Indonesia

www.spe.org/events/apogce/2013

SPE Unconventional Resources Conference and Exhibition—Asia Pacifi c

11–13 November 2013Brisbane, Queensland, Australia

www.spe.org/events/urce

SPE Enhanced Oil Recovery Conference

2–4 July 2013Kuala Lumpur, Malaysia

www.spe.org/events/eorc

MD_AP_HH.indd 1 2/5/13 10:52 AM




exploration blocks 15/10 and 15/28 in the Pearl

River Mouth Basin. The two South China Sea

permits total 5782km2 in area.

nphilippinesForum Energy has been granted

a two-year extension to complete the second

exploratory sub-phase of 8800km2 SC72, offshore

Palawan Island – the deadline for the drilling of

two appraisal wells is now 14 August 2015. An

ongoing territorial dispute with China over the

area of SC72 has delayed exploration. Results

from 640km2 3D seismic survey over SC72

indicate a mean volume of 3.4tcf of gas-in-place.

nvietnamEni and PetroVietnam have entered

into a memorandum of understanding for

the development of business opportunities in

Vietnam and abroad, signed by Do Van Hau,

president and CEO of PetroVietnam, and Paolo

Scaroni, CEO of Eni.

The memorandum of understanding provides

PetroVietnam with the opportunity to expand

its international activities and for Eni to

enter new blocks in Vietnam. Eni will offer

PetroVietnam the opportunity to acquire

shares in international areas and blocks where

it owns the rights to exploration and

development.

npakistanEni has signed an agreement with

OGDCL for a 25% interest and operatorship

of 7500km2 exploration block G in the Indus

Basin, an ultra-deepwater frontier prospect.

Exploration activities will initially comprise a

multi-disciplinary study.

Block G participants include state companies

OGDCL (Oil & Gas Development Company),

PPL (Pakistan Petroleum), and United Energy

Pakistan.

naustraliaPetroChina has agreed to pay

BHP Billiton US$1.63 billion for its holding in

Woodside Petroleum’s proposed Browse LNG

Project in Western Australia, thereby acquiring

an 8.33% stake in the East Browse joint venture

and a 20% share in the West Browse Project.

ntimorseaoilexhas

receivedaone-yearcontract

extensionfortheJpDa06-103

psConconditionthatarig

issecuredby15Junetodrill

theBazarteteprospectasthe

thirdcommitmentwell.oilex

hasassessedtheBazartete

prospecttohaveapotential

meanprospectiveoil

resourceofaround71mmbo

onanunrisked100%basis.

regional update




of Favored Customer Contractor (FCC) to

Sembawang Shipyard by Royal Caribbean

Cruises for the provision of ship repair,

revitalization, upgrading, and related marine

services, for its fleet of 41 cruise ships.

However, Singapore-based Keppel Offshore &

Marine (Keppel O&M), reputedly the largest rig

builder worldwide, reported a full-year net profit

of $763 million, down 12% from the previous

year. Competition from rival Chinese and South

Korean builders eroded its pricing power.

For others, not all is smooth sailing. Triyards

Holdings, with two yards in Vietnam and one

in Houston, US, which was spun off by its 67%

Singapore-based stakeholder Ezra Holdings

for listing in 2012, has experienced a drop in

profits. Although company revenue was up 5%

to $53.3 million from a year earlier, operational

profit declined 30% to $8 million, due in part to

increased administrative expenses and change

in project composition.

In Singapore, the outlook for the offshore and

marine sector is that it will remain resilient

amid the global economic downturn, buoyed

by continued growth in Asia. Turnover in the

sector was US$13.5 billion one year ago, as

compared to $13.3 billion in 2011. Projections

indicate that from 2011 to 2016, the demand

for energy in Asia will drive Asian companies to

invest about $29 billion in deepsea exploration,

drilling, and production, more than double the

$12 billion spent 2007-11.

Facilities expansion is ongoing. Sembcorp

Marine has negotiated a 30+30 year lease on

a 34.5ha site in western Singapore, the second

phase of its 206ha Integrated New Yard Facility.

This phase two new yard is to be developed

over four to five years, helping position

Sembcorp for sustainable growth and long-term

competitiveness.

Another indication of the vigorous marine

construction sector in Singapore is the award

Although some yards saw a drop in profit this past year, the overall view of the industry is one of optimism for growth in 2013. John Mueller reports.

The recently delivered FPSO

Cidade de Sao Paulo.

ShipyardsA robust outlook




Malaysia. The company sold a record

21 vessels in 2012. Nam Cheong, which

has a yard in Miri, Sarawak, east

Malaysia, and outsources fabrication to

yards in China, has proposed raising

$38 million through a share offering. The

company expects an expansion in shipbuilding

by about 20% to 24 vessels.

JackupsSeadrill has ordered two F&G JU2000E design

jackup drilling rigs from Dalian Shipbuilding

Industry Offshore in China. Delivery is in

1H 2015 at a combined cost of $460 million.

Seadrill has options for two more of these

30,000ft drilling depth, 400ft water-depth rated

rigs from the yard for respective completions in

3Q and 4Q of 2015.

Pemex Exploracion y Produccion, a subsidiary

of Petroleos Mexicanos (Pemex), has contracted

Keppel Fels for two KFels-B Class jackup

drilling rigs, to be constructed at Keppel AmFels

in Texas for a combined total of $420 million.

Both units are scheduled for delivery in

1Q 2015. Two other jackup drilling rigs bound

for Mexico are also being built at Keppel

AmFels, Papaloapan for Perforadora Central

and Coatzacoalcos. The shipyard will deliver the

jackups in 1Q 2013 and 1Q 2014, respectively.

Integradora de Servicios Petroleros Oro Negro

(Oro Negro) of Mexico is to have PPL Shipyard,

a Sembcorp Marine subsidiary, build two PPL

Pacific Class 400 jackup drilling rigs at its yard

in Singapore on turnkey contracts totaling

$434 million. Slated for delivery in 4Q 2013 and

1Q 2014, the rigs will be able to drill to 30,000ft

in water up to 400ft in depth. Oro Negro has

also received the KFels Class B jackup drilling

rig Primus, the first of two jackups by Keppel

Fels for Oro Negro after the company purchased

them from Jasper Investments.

Transocean has held naming ceremonies

for two Super B Class Bigfoot jackup rigs,

Transocean Siam Driller and Transocean

Andaman, constructed by KFels in Singapore.

Both rigs are contracted to Chevron for work

off Thailand. The Super B Class has 35,000ft

drilling depth capability and is equipped with

larger spud cans, and offline pipe handling.

Tianjin Haiheng Shipbuilding & Offshore

Engineering had first steel cut for two newbuild,

jackup drilling rigs. China Merchants Heavy

Sembcorp Marine also encountered a serious

problem with the sudden tilting of the newbuild

jackup drilling rig Noble Regina Allen at its

Singapore yard, that resulted in 89 workers

being injured. Preliminary findings indicate

failure of a braking mechanism on one of the

legs.

Jackups maintain their preeminence as the

most constructed offshore drilling rig, with an

abundance of newbuild orders and deliveries.

The demand for semisubmersibles and

drillships continues, driven by exploration

and production activities in ultra-deepwater.

According to Global Business Intelligence, this

is particularly true for those rigs able to drill in

water depths of up to 12,000ft.

Floating production has taken a step forward

with a heads of agreement (HoA) between

Shell and Technip Samsung Consortium

(TSC), enhancing collaboration on the design,

engineering, procurement, construction, and

installation of future innovative, floating

liquefied natural gas (FLNG) projects. This is

another instance of a shift in the shipbuilding

sector away from Singapore and Malaysia, with

Chinese shipyards emerging as strong floating

production vessel competitors.

A number of large projects are being

undertaken by yards in Malaysia, Singapore,

the Philippines, and Brazil, involving tension leg

platforms and topsides.

The health of the support vessel market is

exemplified by Nam Cheong, reportedly the

largest offshore support vessel (OSV) builder in

shipyards

Pacific Class 400 jackup.

Toisa has contracted

Hyundai Heavy Industries

(HHI) of Korea to construct

a multipurpose offshore

construction vessel (MOCV),

a customized version of the

Ulstein Deepwater Enabler

design. The 150m-long

DP3 craft (pictured above)

will be able to undertake

ultra-deepwater installation

and construction, flexible

lay, pipelay, cable lay,

and topside construction

support. It will be managed

and operated by Sealion

Shipping.

Hydro Marine Services,

a McDermott International

subsidiary, is to have Keppel

Singmarine, a unit of Keppel

O&M, construct a deepwater

pipelay (S-Lay) vessel

suited to operations in water

depths of up to 10,000ft,

tentatively named Derrick Lay

Vessel 2000 (DLV2000) with

completion by mid-2015.

Rickmers-Linie, a Germany-

based specialist in sea

transport of cargo, is to take

delivery of two 20,000dwt

multi-purpose vessels in 2015,

built at Hudong-Zhonghua

Shipbuilding in China. Each

170m long MPSV will be

equipped with one 120t and

two 450t cranes, enabling a

single 900t lift.

Malaysia. The company sold a record



yards in China, has proposed raising



Seadrill has ordered two F&G JU2000E design Toisa has contracted








of two ultra-deepwater semisubmersible drilling

rigs from CIMC Raffles in Yantai, Shandong

Province, China, with options for another four

units. The Frigstad D90 design, dual-activity,

DP3 rigs (pictured left) will be capable of

operating in water depths up to 12,000ft while

drilling to 50,000ft. The semis will be equipped

with two BOPs, each with seven rams; deliveries

are slated for end of 4Q 2015 and 2Q 2016.

Construction, marketing, and operation of

the rigs, costing $1.3 billion in total, will be

managed by Frigstad Offshore.

A SapuraKencana Petroleum subsidiary has

engaged Frigstad Engineering to provide detail

engineering services for the construction of

KM-3, a Frigstad T70-design, semisubmersible,

tender-assisted drilling unit. Major detailed

engineering work is to be carried out by Frigstad

in Singapore in cooperation with an undisclosed

yard in Malaysia. The Frigstad T70, displacing

about 30,000dwt, is equipped with three large

cranes, including one 400t unit able to lift the

drilling equipment set in modules onto offshore

jackets.

Naftogaz, a Ukraine state-backed energy firm,

has contracted KFels to build two DSS 38U

compact deepwater semisubmersible drilling rigs

at a combined cost of $1.2 billion, customized to

operate in the harsh conditions of the Black Sea.

Drillships, tenders Sete Brasil Participaces has placed an order

for an ultra-deepwater drillship with Jurong

Offshore, a subsidiary of Sembcorp Marine;

construction is to be completed in Brazil in

3Q 2016 for $806 million. Based on the

proprietary Jurong Espadon design, the rig will

be capable of drilling to 40,000ft in water depths

of up to 10,000ft.

Vantage Drilling has entered into the

joint-venture entity Sigma Drilling with an

affiliate of Skeie Group and other investors, for

construction of an ultra-deepwater drillship by

STX Offshore & Shipbuilding in South Korea. To

be delivered in 4Q 2015, the dual-activity rig will

be able to operate in water up to 12,000ft deep,

be equipped with two seven-ram BOPs, and have

the capacity to store up to 12 subsea xmas trees.

Queiroz Galvão Óleo e Gás (QGOG)

Constellation of Brazil has exercised an option

for an advanced-capability, DP3 ultra-deepwater

drillship to be constructed by Samsung Heavy

Industry is doing the work at its Mazhou Island

shipbuilding base, Shenzhen, China. The

CJ46-X100-D design, 375ft water depth capable

rigs are to be named Haiheng 2 and Haiheng 3.

Delivery is in 4Q 2014 and 1Q 2015,

respectively.

Dev Drilling, a unit of the Singapore-based

Jindal Group, has ordered a LeTourneau Super

116E jackup drilling rig from Lamprell. This is

the second such unit for Jindal with construction

in Hamriyah Free Zone, Sharjah, UAE.

Asia Offshore Drilling, majority-owned and

managed by Seadrill, delivered the KFels Class

B jackup drilling rig, AOD 1, from Keppel in

Singapore. The rig has been contracted by Saudi

Aramco for operations offshore Saudi Arabia.

Aramco Overseas of Saudi Arabia has received

its first KFels Super B Class jackup rig, SAR

202, customized to Saudi Aramco requirements.

It is equipped with a 2 million pound hook load

capacity and has HPHT capability. The rig can

drill to 30,000ft.

Greatship Global Energy Services has taken

delivery of the jackup drilling rig Greatdrill

Chaaya from Lamprell Energy. Built at its

facility in Hamriyah, it is a LeTourneau Super

116E design capable of drilling to 30,000ft. Its

477ft leg length enables operations off the coast

of India.

National Drilling Company (NDC) of Abu

Dhabi has taken delivery of the jackup drilling

rig Muhaiyimat, constructed at a cost of

$159 million by Lamprell at its Hamriyah yard

and deployed for operations in the Arabian Gulf.

SemisubmersiblesFrigstad Deepwater subsidiaries have entered

into turnkey construction contracts for delivery

shipyards

l Subsea 7 has signed a

contract to have a dive

support vessel constructed

according to the new Wärtsilä

VS 4725 DSV design. It is to

be delivered in 2015 from

Hundai Heavy Industries (HHI)

in Korea for operations in the

North Sea. The 123m-long DP3

vessel will accommodate

110 personnel and be

equipped with an 18-man

saturation system rated to

depths of 980ft, two three-

man diving bells, and two

18-man hyperbaric lifeboats.

l A Hong Kong-based ship

owner has contracted Cosco

Zhoushan in China to build

four Rolls Royce UT 771 CDL-

design, PSVs at a cost of

$119 million, with deliveries

from 1H 2014.

l Wärtsilä has signed a

contract with China Oilfield

Services (COSL) to provide

designs for six ships: two

VS 485 PSV MKIII, 85m-long

PSVs and four VS 4612,

74m-long anchor handling

tugboat supply (AHTS) vessels

for operations in the South

China Sea and Bohai Bay.

l Icon Offshore of Malaysia

has ordered two AHTS from

Singapore-listed and Miri,

Sarawak, east Malaysia-

based Nam Cheong

Shipyard, which also has

secured an award for a PSV

from an undisclosed marine

service provider. The three

vessels, worth a total of

around $56 million, are to

be constructed in one of the

company’s subcontracted

yards in China. Deliveries are

scheduled by 2Q 2013.




lBhagwanMarine,an

Australia-basedoffshoreoil

andgasservicesprovider,is

tohaveKeppelSingmarine

buildacatamaranDSV

foroperationsinsupport

ofApacheEnergyoff

northwesternWestern

Australiafrom1Q2014.

lCosco(Guangdong)

Shipyard,asubsidiaryof

Singapore-listedCosco,has

concludedacontractwithan

undisclosedEuropeanclient

fortheconstructionoftwo

PSVsvaluedat$54million,to

bedeliveredby1Q2015.The

awardincludesanoptionfor

twoadditionalvessels.

lUniwiseOffshore,aThaiJV

ofSingapore-headquartered

MiclynExpressOffshore,

hasplacedanorderfortwo

AHTSvesselsforlong-term

deploymentinThailand.The

vesselswillbedeliveredby

mid-2014.

lTopazMarineEngineering,

aUAE-basedsubsidiary

ofRenaissanceServices

ofOman,hasbeen

commissionedbyKuwaitOil

todesign,build,anddeliver

ten22m-long,fastcrew/pilot

boatsvaluedatabout

$50million.Tobebuiltat

theNicoCraftShipyardin

AbuDhabi,the30-personnel

capacity,steelboatswill

operateinKuwaitwatersand

beequippedwithoilspill

recoverycapabilities.

lBumiArmadahashad

itsmulti-purposeplatform

supportvesselNC800

launchedfromNamCheong

ShipyardinMiri,Sarawak.

and upgrading work of the FPSO Lewek

Arunothai. It is to be completed in 2Q 2013. The

vessel will serve as an early production system

in the Kamelia field, offshore the east coast of

peninsular Malaysia in the North Malay Basin.

The upgraded FPSO will be able to handle

175mmscf/d of gas, 1000b/d of condensates, and

500b/d of water.

Petrobras has received the FPSO Cidade

de Sao Paulo from the Keppel Fels Brasil

(BrasFels) yard in Angra dos Reis, Brazil. The

vessel, the first of two FPSO projects BrasFels

is undertaking for MODEC and Toyo Offshore

Production Systems, has a production capacity of

120,000bo/d and is able to compress 175mmcf/d

of gas. It will operate in the Santos Basin,

Brazil.

Platforms,constructionSabah Shell Petroleum has awarded Technip

and Malaysia Marine & Heavy Engineering

(MMHE) an EPC contract for a tension leg

platform for the TLP Malikai Deepwater Project,

to be installed some 110km offshore Sabah, east

Malaysia, in a 490m water depth. The fully-

manned, 26,000t TLP, including topsides, will be

capable of processing 60,000bo/d and 50mmcf/d

of gas. Construction will be carried out by

MMHE at its Pasir Gudang yard.

SMOE, a Sembcorp subsidiary, has secured

a contract worth about $730 million from Det

Norske oljeselskap for engineering, procurement,

and construction of a 13,700t process, drilling,

and quarters platform (PDQ) topsides to be

installed in 112m water depth off Norway.

Shell Philippines Exploration held a strike-

steel ceremony at Keppel Subic Shipyard, a

Keppel O&M subsidiary, for construction of

a depletion compression platform (DCP) for

the Malampaya gas field, off the west coast

of Palawan Island. The DCP, forming phase

three for maintenance of production from the

Malampaya Deep Water Gas-to-Power project,

will be mounted on a tubular-leg supported

barge deck in shallow water next to an existing

production platform.

The Papa-Terra JV, an undertaking of

Petrobras and Chevron, has taken delivery

of the topsides module of the P-61 tension leg

wellhead platform (TLWP), constructed by the

Keppel O&M subsidiary BrasFels at its shipyard

in Angra Dos Reis, Brazil.

Industries (SHI), with delivery in 4Q 2014.

Based on the proprietary Samsung Hull, the

rig will be able to drill to 40,000ft in 12,000ft

water depths, and will feature a 165t heave-

compensating crane for deployment of subsea

production equipment.

Cosco (Nantong) Shipyard of China, a

subsidiary of Singapore-listed Cosco, has

delivered the self-erecting tender drilling rig

T-15 to Seadrill. It is capable of operating in

water up to 6500ft deep and drilling to 20,000ft.

Cosco is also contracted to deliver three similar

rigs, T-16, T-17, and T-18, to Seadrill.

FloatingproductionInpex has had first steel cut for the Ichthys LNG

semisubmersible production platform by SHI

at its yard in Geoje, South Korea. This central

processing facility (CPF) will measure 150m

by 110m, displace 140,000t and have a peak

gas export rate of 1.66bcf/d, making the semi

platform the largest of its kind. The CPF will

be completed late in 2015 with first Ichthys gas

expected to be delivered in 4Q 2016.

The CPF will be moored near an FPSO

capable of storing 1.2mmb of condensate. That

vessel has had first steel cut for its turret in

Singapore.

Saipem and client OLT Offshore LNG have

had the floating, storage, and re-gasification

vessel FSRU Toscana named at Drydocks World,

Dubai, UAE. The 135,000m3 LNG storage ship,

converted from the Korean-built, 287m long

LNG carrier Golar Frost, will operate offshore

Italy.

Petrobras has taken delivery of the FPSO

Nisa from COSCO Dalian Shipyard in

China. The converted 342m-long ULCC has

a production capacity of 140,000bo/d and

1.2mmcf/d of gas and storage for 1.4mmbo.

Deployment is in the Campos Basin, offshore

Brazil.

Also at COSCO Dalian yard, the newly

converted FPSO vessel P-63, has completed

all load tests. It is the first such ship to use

Wärtsilä 50DF dual-fuel engines, which produce

more than 100MWe of power. The P-63, able to

process 140,000bo/d and compress 35mmcf/d of

gas, is being deployed to the Campos Basin for

Petrobras.

EMAS Offshore Construction & Production

has contracted Keppel Shipyard for the repair

shipyards




3D marine seismic survey in exploration permit

WA-155-P and Petroleum Retention Lease TR/3

with ingress into surrounding areas, including

the Muiron Islands Marine Management Area.

The survey is deemed to have unacceptable

impacts on the Ningaloo World Heritage Area

protected by the Environment Protection &

Biodiversity Conservation Act of 1999.

In Indonesia, Spectrum and Nordic Geo

Services have begun acquisition of a 5000km

2D multi-client seismic survey offshore eastern

Indonesia. The survey is a series of extensive,

continuous, seismic lines extending from south

of Sulawesi Island in the Banda Sea and around

Buru and Seram islands. The program will

consist of long-offset marine seismic data shot

In Australia, TGS has started acquisition of

a 3D multi-client seismic survey, The Three

Bears, which covers 460km2 in the Carnarvon

Basin, adjacent to the Clio and Gorgon gas

fields which are in development stage. On

completion of the survey, the TGS portfolio of

3D multi-client coverage will exceed 17,500km2

in this prospective offshore area. TGS is also

reprocessing the Cazadores survey that covers

4350km2 of the Exmouth Plateau, a deepwater

marginal area of the Northern Carnarvon Basin.

The survey was acquired by the Fugro seismic

vessel Geo Caspian. Processed data will be

available in 2Q 2013.

The Australian government has rejected an

application by Apache Energy to undertake a

Multi-client work lines upSeismic

John Mueller looks at 2D and 3D seismic surveys in Australia and Indonesia, EM data acquisition in a number of Asian localities, and 3D seismic data gathering in South Korea.

Greater Safety, Services and StandardsHydratight provides extremely efficient joint integrity solutions at every stage of the lifecycle of an oil and gas facility. Our highly trained and competent service teams ensure that all torque or tension services are carried out efficiently and safely. We incorporate our innovative purpose-built products and multi-skilled crews to provide an unrivalled quality of service and value for money.

To find out more visit

hydratight.comor email [email protected]




will provide E&P companies with a modern

seismic dataset for regional prospective play

analyses in this proven hydrocarbon-bearing

province.

In Myanmar, Rimbunan Petrogas (RPL)

has completed the acquisition of 306km of 2D

ocean bottom cable seismic survey in offshore

block M-1 PSC, fulfilling a 300km to 500km 2D

seismic program requirement deadline of

mid-2013.

RH Petrogas (RHP), an independent

upstream oil and gas company headquartered in

Singapore, can exercise a seismic farmin option

to acquire 50% of RPL’s participating interest,

dependent upon the 2D survey results. Such a

farmin would give RHP a 46.5% stake in the

M-1 PSC.

In South Korea, Korea National Oil

Corporation (KNOC) has had a 200km2 3D

survey completed in the Korea’s East Sea

by Singapore- and Norway-based Reflect

Geophysical, using the seismic vessel Geowave

Commander.

in open acreage over a number of unexplored/

underexplored basins. Nordic Geo Services

has deployed its seismic vessel Nordic Energy

(pictured above) and Spectrum is processing the

data. Final deliverables, including PreSTM and

AVO products, are expected to be available in

2Q 2013.

Also in Indonesia, MultiClient Geophysical

has commenced its North Sumatra Basin

Regional MC2D Survey offshore northeast

Sumatra, using the DMNG seismic vessel

Akademik Fersman. The program is expected

to comprise 4500km of long-offset, regional 2D

data. In addition, the vessel will acquire about

900km of prospect specific infill lines within Kris

Energy’s East Seruway PSC. The MC2D survey

seismic

lInMalaysia,Electromagnetic

Geoservices(EMGS)has

beenawardeda$7million

contractbyShelltoacquire

offshore3Delectromagnetic

(EM)data.EM Leader

willgatherthesurveyon

completionofa$20million

3DEMdatacontractin

Brunei.EMGShasalsosigned

athree-yearglobalframe

agreementwithShellforthe

provisionof3DEMservices.

EMGShasalsoreceived

twocontractsof3DEMdata

acquisitionbyEM Leader

inAsia,subsequenttothe

contractwithShell.

EMGSexpectstodeploy

EM LeaderandBOA Thalassa

inAsiaformostofthisyear

duetoincreaseddemand.

For more information, visitwww.otcasia.org/2014 orcontact [email protected]+60.3.2182.3000“Meeting the Challenges for Asia’s Growth”




However, crude oil and natural gas liquids

(NGL) production has been in steady decline,

dropping from a peak of 828,000b/d in 2000

to 484,000b/d in 2011 with oil imports rising

as the population of around 22 million drives

consumption upward.

According to APPEA, hydrocarbon liquids

production will continue to decline unless major

new fi elds are discovered.

Increasing gas exportsNatural gas production and exports have been

increasing since the mid-1990s. Output is up

from 1.15tcf in 2001 to nearly 1.6tcf in 2011, and

is seen likely to triple by 2020. Gas exports rose

from 370bcf in 2001 to 684bcf in 2011, according

to the BP Statistical Review of World Energy.

Proven reserves have steadily risen, from

32tcf in 1991 to over 130tcf in 2011, with

technically recoverable shale gas reserves by one

estimate placed at 400tcf in yet to be exploited

basins.

Conventional gas is largely produced from

the Carnarvon Basin, the Cooper/Eromanga

Basin in central Australia, and Gippsland Basin.

These three basins account for over 90% of

conventional natural gas production.

Queensland and to a lesser extent New

South Wales are the main sources for coal

bed methane, which accounted for 13% of gas

production in 2010. About half of the natural gas

is converted to LNG for export.

Long term contracts are in place to supply

LNG to Japan, China, South Korea and Taiwan,

with spot market sales to numerous other

countries. During 2011, 73% of LNG exports

went to Japan.

The abundance of natural gas in Australia

coupled with the energy needs of regional

economies, in particular those of East Asia and

most notably that of China, has underpinned the

growing LNG industry and spurred a profusion

of LNG project plans and proposals.

A study commissioned by the Australian

Petroleum Production & Exploration

Association (APPEA) prognosticates

that Australia is on track to become the second

largest exporter of LNG in the world, after

Qatar. Currently ranked fourth worldwide

for LNGexports, also trailing Indonesia and

Malaysia, it is a promising counter balance to

Australia’s crude oil production, which has been

steadily declining over the past decade, now

under half of an approximate one million barrels

per day domestic requirement.

Australia has widespread petroleum assets

both on- and offshore, possessing close to

4 billion barrels of proven oil reserves, typically

low in sulfur and wax and therefore of higher

value than heavier crudes. The reserves

are largely located off the coasts of Western

Australia, Victoria and Northern Territory.

Western Australia has around two-thirds of

Australia’s proven crude oil reserves, as well as

three-quarters of condensate, and around half of

its LPG.

The two major producing basins are the

Carnarvon Basin off the northwest coast,

accounting for about 70% of total liquids

production, mostly exported, and the offshore

Gippsland Basin in the southeast, who’s output

primarily is used in domestic refi ning.

Extensive offshore exploration continues to

make discoveries with production achieved using

innovative technologies, often involving fl oating

production vessels and subsea wellheads and

pipelines, and led by Woodside Petroleum and

Santos, the two largest domestic companies, and

such international majors as ExxonMobil Shell,

Chevron, ConocoPhillips, Total, BHP Billiton,

Japex and Apache.

Principal frontier oil exploration has moved in

recent years to the deepwater area of the Timor

Sea, although the nearby Carnarvon Basin

remains busiest in terms of overall drilling

activity.

FocusNatural gas lifts Australian reservesAs Australia grapples with chronic oil production decline in the face of rising imports, the buoyant gas sector offers the prospect of rising revenue from LNG exports. John Mueller reports.

14

The two major producing basins are the

Carnarvon Basin off the northwest coast,

accounting for about 70% of total liquids

production, mostly exported, and the offshore

Gippsland Basin in the southeast, who’s output

primarily is used in domestic refi ning.

Extensive offshore exploration continues to

make discoveries with production achieved using

innovative technologies, often involving fl oating

production vessels and subsea wellheads and

pipelines, and led by Woodside Petroleum and

Santos, the two largest domestic companies, and

such international majors as ExxonMobil Shell,

Chevron, ConocoPhillips, Total, BHP Billiton,




(MIMI), the North West Shelf project produces

such fields as North Rankin, Perseus, Goodwyn,

Echo/Yodel, Wanaea and Cossack, among others.

The Pluto LNG project, started up in 2Q

2012 and anticipated by 90% stakeholder and

operator Woodside to output 36mmboe of gas

and condensate this year, is supplied by the

offshore Pluto and Xena fields, located 190km

northwest of Karratha, which contain an

estimated 4.8tcf of gas reserves. Gas is piped by

180km trunkline to an onshore LNG facility on

the Burrup Peninsula.

The Darwin LNG plant is supplied by the

ConocoPhillips operated Bayu Undan gas

and condensate field within the JPDA (Joint

Petroleum Development Area) of Australia and

Timor Leste, via 500km subsea pipeline.

Project developmentThere are several substantial LNG projects at

various stages of development that source gas

from conventional reservoirs, defined as discrete

accumulations trapped by hydrodynamic

processes. Offshore Western Australia is the

huge Gorgon project, due to begin in 2014/15, the

Wheatstone project set for operation in 2016 and

the Ichthys project, online end-2016.

A fourth groundbreaking effort underway is

the Prelude LNG project. >

Plentiful conventional natural gas resources

have been identified offshore the northern coast

and Western Australia, and in eastern Australia

large coal seam gas (CSG) resources have been

discovered onshore in Queensland and to a

lesser extent in New South Wales.

Three LNG processing plants are in operation,

two onshore Western Australia, one each for the

offshore North West Shelf LNG (at Karratha)

and Pluto LNG projects, both in the Carnarvon

Basin, and a third LNG plant in Darwin,

Northern Territory, that receives gas via a

500km pipeline from the Bayu Undan field in

the Timor Sea. The North West Shelf project has

five trains with a total capacity of 16.3mmt/yr,

Pluto 4.3mmt/yr, and Darwin 3.6mmt/yr, both

from one train.

Largest resourceThe North West Shelf project is a $27 billion

investment in Australia’s largest oil & gas

resource, which accounts for about 40% of oil

and gas production and has exported more than

3000 LNG cargoes since 1989. It also currently

supplys around 65% of the domestic gas market

in Western Australia.

Operated by a equal sharing partnership

comprising Woodside Petroleum, BHP Billiton,

BP, Chevron, Shell and Japan Australia LNG

natural gas

Production, reserves, and usageAccording to the BP

Statistical Review of World

Energy, Australian oil and

NGL production in 2011 was

484,000b/d (175.7 million

bbl/yr). Natural gas

production was 4.35bcf/d

(1.59tcf/yr).

Proved reserves as of end

2011 were 3.9 billion barrels

of oil and 133tcf of gas.

Domestic consumption

in 2011 stood at just over

1mmb/d of oil and nearly

2.5bcf/d of gas.

30.3tcf

81.7tcf

1.4tcf

2.4tcf

7.3tcf

13.5tcf

Australian gas reserves. 0.5tcf OutlookThere is considerable

potential for further

development of the

extensive natural gas

resources in Australia, which

accounted for 18.9mmt/yr

of LNG in 2011.

Australia has in the

region of $185 billion worth

of oil projects, including

those under construction

and in advanced stages

of planning and approval,

collectively amounting to

some 35% of all business

investment in the country.

Should all oil and gas

investments be realized,

they will represent more

than 64% of all committed

investment in Australia,

according to APPEA.

Australia’s stable

political environment,

substantial hydrocarbon

reserves and proximity to

Asian markets make it an

attractive place for foreign

investment, tempered by

cost overruns and labor

shortages.

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450km northwest of Darwin and 150km

southeast of Timor-Leste, is in discussion

phase between the two governments. Operated

by Woodside in joint venture with principal

partners ConocoPhillips and Shell, the fields are

estimated to have a contingent resource of over

5tcf of gas and 226 million barrels of condensate.

The Cash-Maple gas field, 100% held by

PTTEP and situated in the Ashmore & Cartier

Islands area of the Timor Sea, is undergoing a

concept study of development options, which

include a possible FLNG unit. Startup of the

facility is scheduled for 2016. Hoegh LNG of

Norway is reported to be in final talks with

PTTEP on an FLNG vessel.

Other potential conventional gas sourced LNG

developments awaiting final approval include

the Browse LNG project and Scarborough field

with expansion train potential at most projects,

if market demand and gas supply options align.

The Browse LNG project is awaiting final

investment decision. Meanwhile, Woodside,

operator and major equity holder, is evaluating

tenders for offshore and onshore infrastructure.

The Brecknock, Calliance and Torosa gas fields

will have gas and condensate transported 425km

to a proposed onshore 12mmt/yr LNG plant.

The Scarborough gas field project, an offshore

venture of ExxonMobil and BHP Billiton, is

being considered for an FLNG platform to

develop the 8tcf resource. A decision is to be

made later this year.

UnconventionalSeveral LNG developments sourcing coal seam

gas (CSG) are underway, mostly centered

around Queensland, breakthrough endeavors

as there are currently no operational CSG-LNG

export projects in the world.

There are a total of six LNG projects in

Gorgon LNG, led by Chevron with 47.3%,

partnered by Shell and ExxonMobil each

holding 25%, with initial completion slated

for 2014, is now estimated to cost $15 billion

more, reportedly raising the total to over $50

billion. Three trains will output 15.6mmt/yr of

LNG, processing gas from Greater Gorgon fields

transported by subsea pipeline to production and

shipping facilities on Barrow Island (pictured

right).

The Wheatstone LNG project, a $29 billion

Chevron-operated development located at

Ashburton North, 12km west of Onslow, has a

foundation phase consisting of two LNG trains

with a combined capacity of 8.9mmt/yr and a

domestic gas plant. First gas is expected at a

rate of 433bcf/yr.

Around 80% of capacity will be fed from the

Wheatstone and Iago fields, the balance supplied

from the Apache and KUFPEC Julimar and

Brunello fields.

The Ichthys LNG project, led by Inpex in

partnership with Total, is developing a reserve

of 13tcf of gas and 525 million barrels of

condensate in the Ichthys field, Browse Basin,

at a cost of $34 billion. Workscope entails an

889km gas pipeline together with an onshore

two train 8.4mmt/yr LNG plant near Darwin, an

offshore central processing facility and an FPSO

vessel for condensates. The Ichthys project will

also output 1.6mmt/yr of LPG and 100,000b/d of

condensate at peak.

The Shell-operated $12 billion (greenfield)

Prelude project is scheduled to be operational

by around 2017 using a floating LNG vessel,

producing the Prelude and Concerto gas and

condensate fields in the Browse Basin.

The unprecedented 488m long barge-like

facility with a 3.5mmt/yr LNG capacity is suited

to smaller and remote offshore fields, and is

able to unlock otherwise stranded gas resources.

This approach is planned for a number of other

developments that include Bonaparte, Sunrise and

Cash-Maple FLNG projects.

The Bonaparte LNG project in the Bonaparte

Gulf, a joint venture of GDF Suez and Santos, is

to begin front-end engineering and design mid-

2013 for a 2mmt/yr LNG development involving

the Petrel, Tern and Frigate gas fields.

The Sunrise LNG development, which

involves the Sunrise and Troubadour fields,

known as Greater Sunrise, and located about

natural gas

Gas to the foreAlthough Papua New

Guinea is constrained by the

remoteness of its condensate-

rich natural gas assets,

limited domestic needs

and considerable distance

to overseas markets, it is

investing heavily in multiple

LNG projects.

Papua New Guinea-based

oil & gas exploration and

development company

Oil Search has a portfolio

including substantial JV

holdings in the Gulf of Papua

that could bolster the PNG

LNG Project or alternatively

become another LNG hub.

Oil Search has contracted

the semisubmersible Stena

Clyde to drill at least two wells

in the Gulf of Papua, initially

scheduled for late 2012, but

since delayed.

The company also has an

interest in the Kumul marine

terminal located in the Gulf of

Papua which receives crude

oil via a 265km pipeline from

its majority-held Kutubu oil

project.

The oil & gas sector is

poised to yield a sharp rise

in revenue with the PNG

LNG project and Stanley

field recovery, both online

next year. PNG LNG will

also provide a needed lift

of 20,000b/d of condensate

to the onshore Highlands

oil production, which has

declined by 40,000b/d from a

high of 70,000b/d in 2000.




Basins bounty soughtTaranaki Basin, located along the west

coast of New Zealand’s North Island,

has been the principal focus of oil

& gas exploration and production.

It commenced with the large gas

and condensate discoveries made

in 1969 with the onshore Kapuni and

offshore Maui fields, and continuing

throughout this on- and offshore

petroleum province. Other significant

hydrocarbon finds include the offshore

Tui and Maari oil fields

and Kupe and Pohokura

gas fields.

The Maui field, formerly

the premier deposit, has

been in sharp decline.

The Maari and

Pohokura fields contain

about 49% of remaining

oil and condensate

reserves, Pohokura

accounting for 45%

of natural gas with the balance

distributed over 17 other fields.

Exploration is being conducted

in other basins, sub-commercial

discoveries achieved in the East

Coast Basin of North Island and in the

Canterbury and Great South basins

offshore South Island.

More than 400 wells have been

drilled in the 330,000 sq km Taranaki

Basin, but none beyond the marine

shelf edge. New discoveries have

been made at a steady rate, and new

play types are still being found.

Elsewhere in New Zealand, frontier

basins have yielded discoveries

confirming viable petroleum systems,

with many untested structures having

closures greater than the Maui field.

Concerted geophysical data

gathering since the mid-2000s,

coupled with advancing deepwater

drilling and production technology,

has shifted exploration further offshore

in anticipation of larger oil and gas

accumulations. Sections of five

offshore frontier basins – Great South,

Canterbury, Raukumara, Deepwater

Taranaki, and Reinga – are currently

licensed to major IOCs.

The increasing acquisition of seismic

data has prompted frontier basin

exploratory efforts that have yielded

several significant, albeit

non-commercial deposits. These

included two off the east coast of

South Island in the Great South Basin,

where Kawau-1A in 1977 flowed

6.8mmcf/d of gas with estimated

reserves of 461bcf, and

in the Canterbury Basin,

well Galleon-1 produced

10mmcf/d of gas and

2300b/d of condensate.

Oil output has varied

widely over the past 15 years,

rising and falling year to

year, from approximately

22,000b/d in 1997 to 7000b/d

in 2006 and then to 16,500b/d

in 2011, primarily from the

Pohokura, Tui, and Maari fields – Maui

only producing about 1500b/d that

year. Gas production in 2011 averaged

395mmcf/d, mainly from Pohokura,

Kapuni and Maui, all of it consumed

domestically.

Proved hydrocarbon reserves are

relatively modest, estimated at around

113 million barrels and about 1.2tcf of

natural gas in 2011.

OutlookWith Maui field output seeing a

precipitous drop from a peak in 1997

and only partially compensated for

with production from several other

offshore Taranaki fields starting to ramp

up from 2006, the pressure is on to

achieve major discoveries.

Although the bigger discoveries

are gas-condensate, several oil fields

have been discovered. These fields

and geochemical research, indicating

similarity to prolific oil provinces in

Southeast Asia, suggest the discovery

of large oil fields is only a matter of

time.

Queensland, five well advanced in planning and

development and all to utilize CSG from onshore

basins mostly in Queensland: Queensland

Curtis LNG (QCLNG), Gladstone LNG (GLNG),

Australia Pacific LNG (APLNG), Arrow LNG,

Gladstone LNG Fisherman’s Landing and Sun

LNG.

Three LNG projects are under construction

adjacent to each other on the south coast of

Curtis Island and opposite Gladstone on the

mainland, QCLNG, GLNG and APLNG, which

together are expected to generate $45 billion in

capital expenditure and produce 28.8mmt/yr of

LNG.

QCLNG is being developed by Queensland

Gas, a subsidiary of BG, with the aim of

first LNG in late 2013 from a plant with an

initial capacity of 8.5mmt/yr and potential to

increase production to 12mmt/yr. Plans include

further development of Queensland Gas’s CSG

fields around Miles in the Surat Basin and

construction of a 540km pipeline.

GLNG, a joint venture of Santos, Petronas,

Kogas and Total, anticipates first LNG in

2014 from a plant with a startup capacity of

3.9mmt/yr, possibly increasing to 10mmt/yr, and

development of Santos gas fields in the Bowen

and Surat basins as well as construction of a

420km gas pipeline.

APLNG, a venture of Origin, ConocoPhillips

and Sinopec, is looking to output LNG in 2015

from a plant with a capacity of 4.5mmt/yr ,

upgradeable to 18mmt/yr. Development plans

involve CSG fields development and a 400km

pipeline, the gas sourced from the Bowen and

Surat basins.

Arrow CSG (Australia), formerly Shell CSG

(Australia), a joint venture of Arrow Energy,

Shell and PetroChina, proposes to develop

another LNG plant on Curtis Island, next to

GLNG, with an initial capacity of 8-9mmt/yr and

a potential of up to 18mmt/yr of LNG.

Arrow is exploring approximately 50,000km2

of CSG acreage throughout Queensland and

northern New South Wales which it estimates

to have a contingent CSG resource of around

70,000 petajoules (62tcf).

At Fisherman’s Landing in the Port of

Gladstone, Queensland ,Gladstone LNG is

developing a two train 3.8mmt/yr LNG plant for

LNG export at a projected cost of $1.7 billion,

primary gas supply.

gn

s sc

ien

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natural gas




engineered by Singapore-based fire specialist

EPAS Fire Protection, is centered on three

Kentec Syncro ASM analogue addressable

panels in a network integrated to 300 Apollo

Discovery Marine, addressable smoke and

heat detectors, supported by 80 addressable

manual call points. The system is also designed

to generate alarms via 60 alarm bells and

20 sounder/beacons. It includes EPAS PLC

(programmable logic controller) based gas

detection/alarm and CO2 fire extinguishing

systems that are designed, engineered,

integrated, and approved to ABS MODU rules.

With accommodation for up to 152 personnel,

the Derwent is designed for complex subsea

operations that include construction support,

IRM (inspection, repair and maintenance), and

light/medium well intervention.

Downhole valve operation Red Spider, a UK-based downhole tool specialist,

is supplying its eRED technology and field

supervision to ongoing projects in Malaysia and

Brunei. It recently gained a contract with Thang

Long Joint Operating Company of Vietnam.

eRED is the first Red Spider tool to use

its patented ROCT (Remote Open and Close

Technology), a downhole, computer-controlled,

ball valve that can be opened and closed

multiple times by remote control without

the need of intervention. So far the tool has

completed over 130 operations for more than

20 operators. The eRED tool is deployed below

either a lock or bridge plug and can be used as a

downhole barrier or flow control device.

The contract with Thang Long JOC will

involve Red Spider supplying two eRED tools

and workforce to supervise the project. The tools

will be deployed pre-installed within a nipple

profile for testing tubing, setting a production

packer, flowing the well, and barrier isolation.

Red Spider has also completed its first

project for Petronas Carigali, which used eRED

technology for the first time to remove wireline

runs from completion operations and reduce

wireline interventions in a highly-deviated,

corrosion-resistant alloy (CRA) completion.

Position precision Sonardyne is to supply two Ranger 2 underwater

tracking systems from its facility in Singapore to

China Offshore Fugro Geosolutions (Shenzhen)

(COFG) for the pre-installation phase of the

Liwan 3-1 gas field development in order to

conduct route surveys of a proposed 260km-long,

gas pipeline using ROVs.

Sonardyne, a designer and manufacturer

of underwater acoustic positioning, inertial

navigation, wireless communications, and sonar

technology systems, will also provide its pre-

calibrated GyroUSBL transceiver.

Ranger 2 calculates the position of a subsea

target by measuring the range and bearing from

a vessel-mounted Ultra-Short BaseLine (USBL)

transceiver to an acoustic transponder on the

target. The GyroUSBL, which has a built-in

Lodestar attitude and heading reference sensor,

can be deployed over the side of a ship, making

temporary installation on vessels-of-opportunity

cost-effective.

Discovered in 2006, Liwan 3-1 is located in the

South China Sea 350km southeast of Hong Kong

in an average water depth of 1300m. COFG is a

joint venture between Fugro China and China

Oilfield Services.

Onboard fire safety Kentec Electronics, a UK fire-control panel

manufacturer, has had its fire detection

equipment installed on a Hallin Marine

newbuild. The compact, semisubmersible,

multi-service vessel (MSV) Derwent, was floated

for final fit out at Drydocks World Nanindah

shipyard on Batam Island, Indonesia.

The MSV’s fire alarm system, designed and

Solutions

l Rolls-Royce has won a

US$41 million order to provide

an integrated-design, power

propulsion-equipment

package for four Rolls-Royce

UT 771 CDL offshore supply

vessels to be built at COSCO

(Zhoushan) Shipyard in China,

with options for four additional

vessels.

The Rolls-Royce extensive

integrated package includes

bulk handling, automation

and control systems, as

well as dynamic positioning

using satellite technology to

automatically maintain vessel

position without anchoring,

and deck machinery.

l Severn Trent De Nora,

an electro-chlorination

technology specialist, has

installed a Mariner Omnipure

Series M55 marine sewage

treatment system onboard the

LNG carrier LNG Gemini, while

in Subic Bay, the Philippines.

The M5508 model, which

can treat black and gray

water for up to 25 persons,

employs an electrolytic

process that generates the

oxidant sodium hypochlorite

from seawater to disinfect

biological wastes.




2013

GLOBALCOLLABORATION LOCAL RESOURCES

LAGCOE showcases cutting-edge innovation in the onshore and offshore industry as well as offering award-winning cuisine, music and hospitality at every turn. We look forward to seeing you in 2013!

Sponsorship opportunities are now available.

Visitlagcoe.com/sponsorships for more information.

October 22-24Lafayette, Louisiana USA

L A G C O E . C O M

FuelingGlobalEnergy

SolutionsLongest pipe isolation TDW Offshore Services has completed the longest pipeline

isolation operation in its history for Origin Energy, keeping in

place its remotely-operated SmartPlug pressure isolation tool

for 299 days in the Origin pipeline network offshore Australia.

The purpose was to create double-block isolation against

gas pressure to depressurize a key section of pipeline. This

allowed heavy lifting operations to be done safely, installing

a new 600t accommodation module as part of the Yolla Mid

Life Enhancement (MLE) project. In addition, an emergency

shutdown valve (ESDV) was replaced.

The MLE project is situated on a section of a 14in gas export

pipeline that extends from the Yolla A platform in the Bass

Strait, between Australia and Tasmania, to the Lang Lang gas

processing plant, 70km south of Melbourne. TDW isolated

the line by pigging a 14in SmartPlug with nitrogen through

the topside piping, and then down the riser about 300m

into the subsea pipeline to the set location, where a subsea

communication skid had been installed. The SmartPlug tool,

which has a built-in pinger system and is controlled remotely

via extremely low-frequency (ELF) signals, was then set

horizontally at the seabed in the line where it would remain

until all work was completed. The TDW SmartTrack system

monitored SmartPlug location and pipeline pressure.

2013

GLOBALCOLLABORATION LOCAL RESOURCES

LAGCOE showcases cutting-edge innovation in the onshore and offshore industry as well as offering award-winning cuisine, music and hospitality at every turn. We look forward to seeing you in 2013!

Sponsorship opportunities are now available.

Visitlagcoe.com/sponsorships for more information.

October 22-24Lafayette, Louisiana USA

L A G C O E . C O M

FuelingGlobalEnergy

Solutions

TDW

OFF

SHO

RE

SER

VIC

ES




to establish a 50:50 joint venture for the

manufacture of medium-speed marine engines

in Zhuhai City, Guangdong Province, serving the

rapidly emerging Chinese shipbuilding industry.

Operations will commence in 2014. The venture

involves an investment of nearly E17 million by

Wärtsilä, which has maintained a presence in

China over 20 years.

n safe water onboard Hatenboer-Water,

a Netherlands-based solution provider for

integral water management onboard ships

and platforms, opened an operational branch

in Singapore as many newbuilds and retrofits

take place in Asia, enabling guidance in these

projects for both shipyards and end-users.

Hatenboer-Water is involved the early stages of

a water installation inclusive of management

and disinfection systems, pipework and tap

points.

n engineering center GE plans to establish

an engineering center in Ho Chi Minh City

dedicated to product design, applications, and

services for the oil & gas industry. Scheduled

for completion this year, the new facility will

employ up to 200 local engineers.

n viking support Viking SeaTech, formerly

Viking Moorings, and now a global supplier

of a range of equipment and services to the

offshore oil and gas industry, opened new

offices in Jakarta to mark the company’s move

into Indonesia where it is known as PT Viking

SeaTech Indonesia.

n new office Imtech Marine, a Netherlands-

based company operating in the global marine

market as a full-service provider and system

integrator of tailor-made technology solutions

covering an entire ship, has opened a new

office in New Delhi. Imtech Marine India is an

approved supplier for the Indian Navy regarding

HVAC (heating, ventilation and air conditioning)

and fire fighting systems.

n more room HB Rentals, a global offshore oil

and gas accommodation specialist, expanded its

n jackup entry Singapore-listed Falcon

Energy Group, PetroVietnam Drilling, and

Well Services, will invest US$185 million in the

joint venture PV Drilling Overseas that will

lease purchased oil drilling rigs to foreign oil

companies operating in Asia, China, the Middle

East, and Gulf of Mexico. The first pair of 375ft

water depth capable jackups are on schedule for

completion late this year. The GustoMSC

CJ46-X100-D design rigs are under construction

by China Merchants Heavy Industry in

Shenzhen, China.

n clough acquisition Clough acquired

e2o, a provider of specialized commissioning,

completions and hazardous area inspection

services to the energy and resources sectors, for

AUD $15 million. e2o is well-positioned in the

LNG sector, currently working on commissioning

major LNG projects, including Chevron’s

Wheatstone LNG in Western Australia, Origin’s

Australia Pacific LNG, and Santos’ Gladstone

LNG projects, both in Queensland. e2o, based in

Australia with a Singapore regional office, will

continue to operate with existing management

and under its own brand.

n service unites Sinopec (China Petrochemical

Corp) inaugurated Sinopec Oilfield Service

Corp in Beijing with Sinopec group chairman,

Fu Chengyu, in attendance. The new service

subsidiary, formed through restructuring of

Sinopec Group’s oilfield engineering firms with

fixed assets worth US$12 billion, will operate

globally.

n operations relocation Aggreko, a provider

of temporary power and temperature control

solutions, opened a new service center in the

southern city of Foshan, situated within the

Gangbei Industrial Zone in the Shunde District,

Central Guangdong Province, China. The facility

will replace its existing operation located in

the neighboring city of Guangzhou that was

established in 2010.

n china propulsion Wärtsilä and Yuchai

Marine Power have signed an agreement

Activity

n korean debut pipeline

equipment and services

specialist, td williamson, has

opened its first office in korea

to provide technical solutions

based upon its pipeline

intervention and isolation

technologies.

td williamson services in

korea, which range from

hot tapping and stopple

plugging to smartplug

pressure isolation, will

be supported by the

td williamson facility in

singapore and its global

network.

to serve customers in

korea, td williamson will

employ its specialist pipeline

intervention and isolation

technologies, such as the

remote-controlled subsea

1200rc tapping machine

(pictured above) that

facilitates pipeline tie-ins by

tapping into pre- and post-

installed tees, without diver

assistance.




infield flowline for the Kepodang gas field, in

water depths of up 70m. Workscope includes

procurement, construction, installation, and

commissioning of a 5800t central processing

platform, 13,000t wellhead platform, a 2.7km

long, 250mm diameter infield flowline and

installation of remote control equipment at

the onshore receiving facilities. Fabrication

will be undertaken at the McDermott Batam

yard, Indonesia, with transport involving a

McDermott floatover barge to install the CPP

and topsides. Project completion is expected by

4Q 2014.

ngorgongivenahandAGC Industries,

a subsidiary of AusGroup, an Australia-

based provider of construction and integrated

services for natural resource development, won

additional fabrication work valued at around

A$20 million on the Chevron-operated Gorgon

project, taking its total contract value on that

development to more than A$70 million. The

contract calls for the fabrication of stainless

and carbon steel pipework, non-destructive

testing, post-weld heat treatment, blasting,

and LNG specification painting related to LNG

modules for trains. AGC’s fabrication facilities

in Kwinana and Henderson, Western Australia,

will execute the contract.

nvaranusextensionApache Energy granted

AGC Industries a A$15 million contract

extension for ongoing works on Varanus Island

and associated offshore facilities. Workscope

includes fabrication, scaffolding, rigging and

instrumentation, electrical and mechanical

services. The Varanus Island Processing Hub,

located off the northwest coast of Western

Australia, consists of an oil terminal, gas

processing trains, low temperature separation

and stabilization, as well as gas compression,

water treatment, and reinjection.

nplatformprojectTH Heavy Engineering of

Malaysia, along with Afcons Infrastructure and

Technip KT India, secured a US$290 million

contract from ONGC to provide platform

procurement and fabrication services for the

Heera Redevelopment Project, located 80km

west of Mumbai, India. Enhanced oil recovery

techniques will be employed to increase

production from the Heera field.

Middle Eastern presence through a partnership

with Mubarak A AlSuwaiket & Sons Oil & Gas

Services in Saudi Arabia. The move further

facilitates its capability in Saudi Arabia, with a

view to working with Saudi Aramco. Moreover,

HB Rentals signed an agreement with GASOS

in Abu Dhabi and plans to pursue potential

agency partnerships in Qatar and Kuwait.

nkepodanggasreadiedPetronas Carigali

affiliate PC Muriah awarded McDermott

International’s Indonesian subsidiary a contract

to develop offshore surface facilities and an

company news

rigmovesinnewZealand,omvnew

Zealand,operatorofthe

maarijv,hascontracted

thejackupENSCO 107to

conductaninemonth,multi-

welldrillingcampaigninthe

maarifield,offshoretaranaki

Basinpmp38160,expectedto

commencein4Q2013.this

effortwillruninparallelwith

adrillingprogramusingthe

frigstadoffshoremanaged

semisubmersibledrillingrig

Kan Tan IVwhichincludesa

manaiafieldappraisalwell

andanexplorationwellon

theWhioprospectinpermit

pep51313that,ifsuccessful,

willalsobeproducedthrough

maarifacilities.

inindonesia,inpexhas

awardedthetransocean

ultra-deepwaterdrillship

Discoverer Seven Seasa

three-wellcontractataday

rateofus$500,000forwork

offshoreindonesia.

inthailand,mubadala

petroleumcontractedthe

atwoodoceanicsjackup

Atwood Orcafordrilling

operationsinthegulfof

thailand,therigtobe

deployedfortwoyearsupon

completionofconstructionby

pplshipyardinsingapore.

salamanderenergy

(Bualuang)hasgranteda

one-yearcontract,plusone-

yearextensionoption,forthe

jackupdrillingrigAtwood

Makoatadayrateof

$155,000forworkinthegulf

ofthailand.alsointhailand,

coastalenergyhasengaged

thejackupdrillingrigAtwood

Mantatoconductaneight-

wellprogramatBuaBan

northfieldinblockg5/43in

thegulfofthailand.

nichthysconnectionakersolutionssigned

aus$90millioncontractwithasubsidiaryof

mcdermottfordeliveryofsubseaconnectors

tothe$34billionichthyslngproject,located

intheBrowseBasinabout200kmoffshore

Westernaustralia.Workincludesthedelivery

of6into18inhorizontalandverticaldiverless

tie-inconnectorsfrom2013to2014,tobe

includedinthesubsea,umbilicals,risers

flowlinesscopeofmcdermott,theleadsurf

contractor.gasfromtheichthysfieldwillbe

exportedtoonshoreprocessingfacilitiesin

darwinviaan889kmsubseapipeline.

inarelateddevelopment,leighton

contractorssecureda$1.2billionofwork

linkedtotheichthyslngprojectandexpects

toemployupto1200personnel.thefirst

contract,worthabouta$920million,isto

buildinfrastructuresuchasroads,foundations

andtrenchesatBlaydinpointforichthys

onshorefacilities,constructiontostartin

the2Qandbecompletedbymid-2016.a

secondaward,valuedata$280million,is

forafour-yearoperationsandmaintenance

contractforalltemporarysitefacilities,

includingpowersupplyandwatertreatment

plantsduringprojectconstructionphase.




The thickness, in meters, of net hydrocarbons encountered at the Adong Kecil West-1 well in Sarawak. (Source: Petronas)

The additional energy needed by 2035 to sustain global growth. (Source: US Energy Information Administration)53%

2016The year Apache expects fi rst production from the Julimar development off Western Australia. (Source: Apache)

The amount by which Rosneft’s hydrocarbon reserves grew in 2012. (Source: Rosneft)

2,500,000

8%

The expected production capacity in tonnes per annum at the Abadi LNG project in Indonesia. (Source: Inpex)

The average, in barrels per day, China’s oil demand rose in December 2012.(Source: Platts)

349

The number of construction phases into which the South Pars development (right) is separated. (Source: Pars Oil & Gas)

Numerology40% The amount by which Malaysia plans to cut

carbon emissions in 2020. (Source: Najib Tun Razak, Malaysian Prime Minister)

28

NumerologyNumerology

10,580,000

AOG Digital www.aogdigital.com ..........................................................23

Harris Caprock Communications www.harriscaprock.com ................2

Hydratight www.hydratight.com ...........................................................12

LAGCOE 2013 www.lagcoe.com .............................................................19

Membrana www.membrana.com ...........................................................7

Newpark Drilling Fluids www.newpark.com .........................................24

Society of Petroleum Engineers www.spe.org/go/ap .............................6

Society of Petroleum Engineers www.otcasia.org/2014/ ....................13

January/February 2013 Display Advertisers



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