Sunday, August 9, 2020

Subsea Equipment News

Rystad: Oilfield Services Firms' Market Cap Halved. Offshore Drillers Have it Worst

For Illustration - Image by Ranimiro - AdobeStock

Oilfield services companies have collectively lost almost half of their market capitalization, hit by the combination of the coronavirus pandemic and low oil prices, with offshore drillers, in particular, the most affected, Norway's Rystad Energy has said in its analysis released on Friday."It is widely acknowledged that the oilfield services sector (OFS) is the energy world’s worst-hit market from the Covid-19 pandemic. What is staggering is the extent that the capitalization of listed OFS companies has fallen…

Subsea Umbilicals Demand Hit by COVID-19

Illustration only: Credit: TechnipFMC

Analysts from Norway's Rystad Energy expect that the global oil and gas investment cuts will severely hit demand for subsea equipment, with demand for subsea umbilicals expected to fall by 32%.Rystad sees just 713 kilometers (km) of lines ordered in 2020, down from 1,041 km last year."Umbilical demand will not match or exceed 2019 levels until after 2023, our forecasts show, despite definite cost savings in materials. To put these numbers into context…

OFS Sector Expected to Take a Hit

Graph: Rystad Energy

Lower oil prices will push the global oilfield services (OFS) sector into a recession in 2020 after three successive years of growth, according to Rystad Energy.In a new sector outlook update, Audun Martinsen, head of oilfield services research at Rystad Energy, forecasts a 4% decline in global oilfield service revenue if oil prices stay flat next year.“Lower oil prices call for negative growth in the service market in 2020,” says Martinsen.

Oil Price Controls Subsea Market Growth

(Photo: Øyvind Hagen / Equinor)

The subsea market in 2019 will experience year-on-year growth for the first time since 2014. But the positive outlook is vulnerable to any significant decline in oil prices over the next few years, according to analyst Rystad Energy.“We expect the subsea market to thrive during the coming years, but market growth will be at risk if the oil price falls to $50 per barrel,” says Henning Bjørvik, an analyst on Rystad Energy’s oilfield service team.Rystad Energy…

OPT Wave Power System Reaches Milestone

File Image: Ocean Power Technologies

US-owned renewable energy company Ocean Power Technologies (OPT) announced that the Company's PB3 PowerBuoy deployed in the Adriatic Sea has produced more than one MegaWatt-hour (MWh) cumulative energy to date. The cost-effective ocean energy solutions provider said that the PowerBuoy has been deployed for six months, operating continuously and error-free while being controlled remotely from OPT’s NJ facility.George H. Kirby, OPT’s President and Chief Executive Officer said…

Aker Solutions Raises 2019 Forecasts

(Photo: Aker Solutions)

Norway's Aker Solutions ASA raised its 2019 revenue outlook on expected higher spending on the offshore oil services and reported better than expected first-quarter profits, lifting its shares on Tuesday.The upbeat sentiment on oilfield spending is a result of record cashflows accumulated by oil companies on the back of cost-saving measures instigated since the 2014 oil slump and rising crude prices as the market has recovered.Oslo-listed Aker now expects revenue to rise by close to 10 percent in 2019…

DNV GL Opens New Houston Facility

David Norfleet, Head of Section, Incident Investigation, DNV GL – Oil & Gas (Photo: DNV GL)

DNV GL announced Thursday that it has opened a new facility in Houston to provide failure analyses that support the industry in conducting effective and efficient root cause analyses.The facility will carry out the initial steps of a failure investigation, which could include visual inspection, non-destructive testing [NDT], disassembly, cutting of components, etc. The facility will interact with DNV GL’s team of experts in Columbus, Ohio who are able to carry out further analyses…

Unmanned Platform Starts Production at Oseberg Vestflanken 2

The Oseberg area (Photo: Equinor)

The Oseberg Vestflanken 2 field in the North Sea came on stream on Sunday. Remote-operated from the Oseberg field center, the new Oseberg H platform is the first unmanned platform on the Norwegian Continental Shelf. Recoverable resources are 110 million barrels.“With Oseberg H we take a huge technological leap forward. The fully automatic, unmanned and remote-operated platform is digitalization in practice, and I am proud of Equinor and its partners having chosen this in-house developed solution…

Aker Solutions, Equinor Strengthen Collaboration

Doug Pferdehirt (left), CEO TechnipFMC, Torger Rød, SVP Equinor, Margareth Øvrum, EVP Equinor, Kjetil Hove, SVP Equinor, and Luis Araujo, CEO Aker Solutions. (Photo: Equinor)

Aker Solutions has signed a strategic, global collaboration agreement with Equinor to ensure mutual and continuous improvement on current and future subsea projects within the domains of safety, quality, technology, execution and cost."Aker Solutions and Equinor's ongoing collaboration has consistently generated mutually beneficial technology developments, working process simplifications and standardizations," says Luis Araujo, chief executive officer at Aker Solutions.

Saipem Wins $700 Mln Worth of Offshore Contracts

Photo: Saipem S.p.A.

Saipem has been awarded contracts for the second phase of the ExxonMobil led Liza development offshore Guyana.These contracts, assigned by Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of ExxonMobil, as the project operator, are in addition to those awarded to Saipem in 2017 for Liza Phase 1.Following engineering and subject to requisite government approvals, project sanction from the joint venture and an authorization to proceed with the next phase…

Aker Solutions to Supply Umbilicals for Liuhua FPSO

(Photo: Aker Solutions)

Aker Solutions said it has been contracted to deliver power umbilical systems to China National Offshore Oil Corporation's (CNOOC) Liuhua oil fields in the South China Sea, off Hong Kong.The order, which is said to be worth more than NOK 350 million ($36.6 million), was booked in the third quarter of 2018. The work scope includes more than 35 kilometers of dynamic and static power umbilicals for the Liuhua 16-2, 20-2 and 21-2 fields, linking the subsea development to a new floating production…

The Culture Clash Behind GE's Exit from Baker Hughes

File Image (CREDIT: AdobeStock / © xmentoys)

When General Electric Co bought oilfield services giant Baker Hughes last July, it created a global industry colossus with $22 billion in annual revenue. GE promised to digitalize oilfields worldwide, marrying its expertise in big data, analytical software and subsea equipment with Baker Hughes' experience in drilling services, chemicals and tools. Less than a year later, GE is bailing out of the deal, the firm announced Tuesday, planning…

ExxonMobil, Hess Announce Oil Discovery Offshore Guyana

Stena Carron (Photo: Stena Drilling)

ExxonMobil and the Hess Corporation announced an eighth oil discovery offshore Guyana at the Longtail-1 well, creating the potential for additional resource development in the southeast area of the Stabroek Block. The companies said approximately 78 meters of high-quality, oil-bearing sandstone reservoir was encountered. The well was drilled to 5,504 meters depth in 1,940 meters of water by the Stena Carron drillship on May 25, 2018. The…

Fugro Tallies ROV Services Contracts with Petrobras

(Photo: Fugro)

Fugro said it has been contracted to provide remotely operated vehicle (ROV) services to support Petróleo Brasileiro S.A. - Petrobras in its exploration and production activities.Two new contracts will see Fugro’s ROV spread working to support drilling related activities, such as towing, mooring, commissioning and decommissioning, and positioning of production and drilling units, as well as installation of subsea equipment in Petrobras oil fields.

Exxon Starts Drilling at Offshore Guyana Projects

(Photo: ExxonMobil)

Exxon Mobil Corp said it has commenced development drilling in the first of three offshore Guyana projects, which could produce more than 500,000 barrels of oil per day. Development drilling began in May for the first of 17 wells planned for Liza Phase 1, the company said.So far, Exxon Mobil and its co-venturers have discovered more than 3.2 billion oil-equivalent barrels estimated recoverable resources on the 6.6 million acre Stabroek Block.Liam Mallon…

TechnipFMC Wins Subsea Contract Offshore China

TechnipFMC said it has been awarded a subsea contract by CNOOC Limited for the Liuhua 16-2, 20-2 and 21-2 Oilfield Joint Development Project in the South China Sea, at water depths ranging from 380 to 430 meters.The contract covers the engineering, procurement and construction (EPC) of subsea equipment, including 26 units of Enhanced Horizontal Christmas Trees (EHXT) as well as wellheads, subsea control systems, manifolds, tie-in systems and intervention workover control systems (IWOCS).

In US Gulf, Robots, Drones Take on Dangerous Offshore Oil Work

File Image: A photo taken during an offshore DNV GL Drone-enabled survey (CREDIT: DNV GL)

At BP's massive Thunder Horse oil platform in the U.S. Gulf of Mexico, a dog-sized robot called Maggie uses magnetic tracks to creep along pipes connecting the giant oil facility to the sea floor. Before MaggHD, dubbed "Maggie" by BP, the dangerous inspection job was reserved for highly paid specialist technicians who did their jobs while rappelling along the platform. The energy industry has turned to robots and drones to cut costs and improve safety in some of the world's tougher working environments.

Subsea 7 Makes Hostile Bid for McDermott

File Image: A Subsea 7 offshore support vessel. CREDIT: Subsea 7

Offshore oil services firm Subsea 7 has made an unsolicited offer worth about $2 billion for U.S. rival McDermott, potentially breaking up the U.S. company's agreed deal with onshore engineering firm Chicago Bridge & Iron (CB&I).The deal could make Oslo-listed Subsea 7 the market leader in supplying and installing subsea equipment for oil and gas firms with a combined market share of 24 percent, followed by TechnipFMC with 20 percent and Saipem with 15 percent…

Proserv Secures $5.5 Mln Repsol Contract

Photo: Proserv

Energy services company Proserv has secured a contract worth over $5.5 million (45 million Norwegian Kroner) with Repsol to upgrade and build new subsea production control equipment for the Yme field redevelopment in the Norwegian North Sea. The award scope initially covers the refurbishment and upgrade of the existing subsea control system. Using Proserv’s unique technology and expertise, the life of the existing equipment will be extended significantly beyond its original design life, with no compromise on functionality.

Sabah Shell's offshore Malaysia contract for TechnipFMC

Forsys Subsea Photo TechnipFMC

TechnipFMC has been awarded an Engineering, Procurement, Construction and Installation contract by Sabah Shell Petroleum Company Ltd. This award covers the delivery and installation of subsea equipment including umbilicals, flowlines and the subsea production system for the Gumusut-Kakap Phase 2 Project. Hallvard Hasselknippe, President of TechnipFMC’s Subsea business, commented: “We are extremely honored to have been awarded this project by Sabah Shell Petroleum.