ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

Shawcor: Awarded Second Contract Worth $200m USD for Shah Deniz Stage 2

Wednesday, November 19th, 2014

ShawCor Ltd. today announced that its Bredero Shaw pipe coating division has received a second contract with a value of approximately US$200 million from BP Exploration (Shah Deniz) Limited for pipeline coating for the Shah Deniz Stage 2 development project. The contract is scheduled to be executed at the Caspian Pipe Coatings (CPC) plant in Baku.

The contract awarded involves the application of anti-corrosion and concrete weight coatings, and upgrades to the CPC plant in Baku to enable the facility to meet the project’s requirements for anti-corrosion and concrete weight coating.

Coating is expected to commence in 2015 with completion planned for October 2015.

Together with the previously awarded contracts relating to the Shah Deniz Stage 2 and the related South Caucasus Pipeline projects, Bredero Shaw has now secured contracts totalling over US$500 million on these projects.

ShawCor Ltd. is an energy services company specializing in products and services for the pipeline and pipe services and the petrochemical and industrial segments of the oil and gas industry. The Company operates through nine divisions with over ninety manufacturing and service facilities located around the world.

Bredero Shaw, ShawCor’s largest division, is the global leader in pipe coating solutions and employs over 4,000 permanent and contract personnel located at offices and facilities in fifteen countries. The division provides specialized coating systems and related services for corrosion protection, insulation and weight coating applications on land and marine pipelines including highly engineered corrosion and insulation systems for deepwater applications.



BP: New Core Flood Robot Enhances Oil Recovery Techniques

Monday, November 10th, 2014

BP announced today that it is now operating the world’s first robotic coreflooding system. The Core Flood Robot is the most recent addition to BP’s programme of enhanced oil recovery (EOR) research facilities.

Coreflooding is one of the most important techniques used to identify and evaluate EOR technologies. It measures the effectiveness of water or gas injected into an oil-bearing rock sample to displace oil. This can be used to assess the potential for water flooding in an oil field.

“The EOR technologies being developed by BP are vitally important to help increase global oil supplies,” said Ahmed Hashmi, BP’s head of upstream technology. “We believe this step-change in our core-flooding capability will hugely improve the speed and efficiency with which we can deploy new technologies to recover more oil from reservoirs.”

BP has had a large-scale in-house coreflooding laboratory in the UK for many years, where reservoir samples can be tested at high pressure and temperature ‘reservoir conditions,’ and different reservoir types can be evaluated. The new robotic coreflood system operates for 24 hours a day, seven days a week.

The complete automation and work-flow optimisation in the new Core Flood Robot enables hundreds of coreflood tests to be performed each year, rather than dozens as in the past, and greatly enhances BP’s ability to evaluate a continuous stream of new EOR technologies. This should reduce the time spent developing new technologies by at least 50 per cent.

The Core Flood Robot is operated by the same team that developed  LoSal® EOR, BP’s breakthrough reduced salinity waterflooding technology. More than 45 coreflood tests were performed in validating the LoSal EOR effect, before field trials in Alaska. BP and its partners are now deploying the technology at scale on the Clair Ridge project in the North Sea. BP was awarded the 2014 Offshore Technology Conference Distinguished Achievement Award for the Clair Ridge LoSal EOR project, recognising the company’s specialist EOR technologies.



Emerson: BP Awards $40m USD Shah Deniz 2 Automation Contract

Thursday, November 6th, 2014

BP has awarded Emerson Process Management, a global business of Emerson, a contract in excess of US$40 million to be the Main Automation Contractor for the Shah Deniz Stage 2 development project in the Azerbaijan sector of the Caspian Sea. Emerson will provide integrated control and safety systems to help ensure safe and efficient control of gas production on two new offshore platforms and at an expanded onshore gas processing plant at the Sangachal terminal.

The contract is part of Emerson’s global agreement with BP to provide services for greenfield automation projects. Selecting Emerson as the Main Automation Contractor helps BP simplify procurement and project execution. In this role, Emerson will provide system engineering, installation, configuration and testing, supported locally by the Emerson Azerbaijan service center in Baku.

“This contract is a testament to Emerson’s experience in deepwater offshore oil and gas applications and to the quality of our work providing similar technology for BP’s nearby Chirag Oil Project,” said Steve Sonnenberg, president, Emerson Process Management. “This latest large-scale project continues the long-standing and trusting relationship that exists between our companies.”

Emerson is also providing automation technology and services for BP projects west of Shetland in the UK, including two offshore platforms in the Clair Ridge field and a floating production, storage, and offloading (FPSO) vessel for the Quad 204 development.

As part of the integrated front-end engineering and design team for Shah Deniz Stage 2, Emerson worked closely with BP and its engineering contractor to define the digital automation solution. The integrated Emerson solution will use Emerson’s DeltaV™ distributed control system, DeltaV SIS™ process safety system, and AMS Suite predictive maintenance software.

The DeltaV system will control and monitor onshore, topside and subsea operations. The DeltaV SIS system will perform process and emergency shutdown functions, if needed, plus control the fire and gas detection systems to enable secure gas production. Electronic Marshalling with intrinsically safe CHARMs technology will help reduce the complexity of connecting the automation systems with thousands of control and measurement devices.

In addition, Emerson’s AMS Suite software will deliver predictive diagnostics from the control and measurement devices to enable timely corrective maintenance. Diagnostic data will be integrated with similar information from BP’s Chirag project to present a clear picture of overall asset health and performance of BPs operations in the Caspian Sea.

 



BP: Statement on Gulf of Mexico

Friday, September 5th, 2014

BP strongly disagrees with the decision issued today by the United States District Court for the Eastern District of Louisiana and will immediately appeal to the United States Court of Appeals for the Fifth Circuit.

BP believes that the finding that it was grossly negligent with respect to the accident and that its activities at the Macondo well amounted to willful misconduct is not supported by the evidence at trial. The law is clear that proving gross negligence is a very high bar that was not met in this case. BP believes that an impartial view of the record does not support the erroneous conclusion reached by the District Court.

The Court has not yet ruled on the number of barrels spilled and no penalty has yet been determined. The District Court will hold additional proceedings, which are currently scheduled to begin in January 2015, to consider the application of statutory penalty factors in assessing a per-barrel Clean Water Act penalty. The Clean Water Act requires the District Court to consider a number of factors in determining an appropriate penalty. The statutory maximum penalty is $1,100 per barrel where the court finds simple negligence and $4,300 per barrel where the court finds gross negligence or willful misconduct. During the penalty proceedings, BP will seek to show that its conduct merits a penalty that is less than the applicable maximum after application of the statutory factors.

BP is reviewing the decision and will issue a further statement as soon as possible.

Source



Halliburton Pays $1.1bn to Cover Macondo Well Settlement

Wednesday, September 3rd, 2014

Halliburton announced that it has reached an agreement to settle a substantial majority of the plaintiffs’ class claims asserted against the company as a result of the April 20, 2010 Macondo well incident in the Gulf of Mexico.  The approximately $1.1 billion settlement, which includes legal fees, is subject to approval by the United States District Court for the Eastern District of Louisiana, and will be paid into a trust until all appeals have been resolved in three installments over the next two years. The company’s previously accrued loss contingency provision relating to the multi-district litigation proceedings is currently $1.3 billion.

The agreement includes the following:

– Claims against Halliburton that BP assigned to the settlement class in BP’s April 2012 settlement,
– Punitive damages claims against Halliburton by a class of plaintiffs who allege damages to property or associated with the commercial fishing industry arising from the Deepwater Horizon Incident, and
– Affirmation that Halliburton has no liability for compensatory damages to the members of the settlement class in the BP April 2012 settlement.

Payments will be held in the trust, pending the finalization of this settlement which is contingent on final Court approval, including any appeals of:
– The BP 2012 settlement with the settlement class,
– The District Court’s earlier determination that the contractual indemnity provided by BP to Halliburton is valid and enforceable, and<
– The District Court’s earlier dismissal of economic damage claims against Halliburton.
– Additionally, the settlement is subject to an agreed-upon level of participation by the current claimants which, if not achieved, allows Halliburton to terminate the agreement.



BP Reports Second Quarter 2014 Results

Tuesday, July 29th, 2014

BP today announced its financial results for the second quarter of 2014. Underlying replacement cost profits for the quarter of 2014 was $3.6 billion, 34% higher than the $2.7 billion reported for the same period in 2013 and 13% higher than the $3.2 billion result for the first quarter of 2014.

The company also announced a quarterly dividend of 9.75 cents per ordinary share, the same level as the previous quarter but 8.3% higher than a year earlier. As previously announced, BP’s board will review the level of the dividend with the first and third quarter results each year.

“This was another successful quarter, delivering both operational progress and robust cash flow. We are continuing to ramp up the major new projects that drive delivery of cash flow and are also now seeing benefits from our focus on operating with greater reliability and efficiency,” said Bob Dudley, BP group chief executive.

“This operational momentum keeps us well on track to meet our 2014 targets and underpins our longer-term commitment to grow distributions to our shareholders.”

Rising oil and gas production from new and recently-started higher-margin upstream projects and increased processing of heavy crude oil by the newly-modernised Whiting refinery contributed to operating cash flow of $7.9 billion in the quarter. Total operating cash flow for the first half of 2014 was $16.1 billion.

Divestments with a cumulative value of $3.4 billion have now been agreed towards BP’s expected total of $10 billion divestments agreed by the end of 2015.  Most recently BP agreed the sale of its Hugoton gas assets in Texas for $390 million.

BP plans to use the post-tax proceeds from these divestments predominantly for shareholder distributions, with a bias to share buybacks. In mid-July BP completed the $8 billion share buyback programme introduced following the sale of its interest in TNK-BP, and the divestment programme is now supporting a continuation of buybacks.

In the second quarter, BP’s Upstream segment reported $4.7 billion underlying pre-tax replacement cost profit, compared with $4.3 billion a year earlier and $4.4 billion in the first quarter of 2014.

Compared to a year earlier, the Upstream result reflected the benefits of higher production in key regions and higher oil and gas realisations. This was partly offset by the impact of divestments and higher non-cash costs.

Increasing output from the key regions, primarily the Gulf of Mexico, drove overall underlying production2 of oil and gas, excluding Russia, up by over 3% compared to a year earlier.

The end of the Abu Dhabi concession in January 2014 together with divestment impacts, however, meant that reported Upstream production, at 2.1 million barrels of oil equivalent a day (mmboed), was 6% lower. Reported production in the third quarter is expected to be lower due primarily to turnaround and seasonal maintenance activities.

Including Russia, reported group oil and gas production averaged 3.1 mmboed.

Reported underlying net income from Rosneft for the quarter was $1.0 billion. BP received a dividend payment of approximately $700 million earlier in July.

The Downstream reported underlying pre-tax replacement cost profit of $0.7 billion, compared with $1.0 billion in the previous quarter and $1.2 billion for the second quarter of 2013. Both a significantly weaker refining environment and a weaker contribution from supply and trading negatively impacted the result compared to a year earlier, although this was partially offset by benefits from increasing heavy crude runs at the Whiting refinery. During the quarter, throughput of heavy oil at Whiting reached a high of 270,000 barrels a day.

Five new major upstream projects in BP’s key regions have started production so far in 2014 – most recently, the CLOV project in Angola achieved first oil on 12 June. Three of these five projects are in the deepwater Gulf of Mexico. Two further projects are expected on-stream in 2014.

Greater operating efficiency is being demonstrated in the Upstream, with average plant reliability for the first half higher than a year earlier, drilling performance continuing to improve and seven of the turnarounds planned for 2014 complete or underway. In the Downstream, refining availability was again maintained above 95% for the quarter.

In exploration, BP has participated in 10 completed wells to date in 2014 which have so far resulted in two significant discoveries – Notus in Egypt and Orca in Angola. 15-17 wells are expected to be completed over the whole year.

In the quarter the provision for litigation related to the Gulf of Mexico oil spill was increased by $260 million. The total cumulative pre-tax charge for the incident to date is now $43.0 billion. The provision does not include any amounts for business economic loss claims that are yet to be received, processed and paid.

At the end of the quarter, the aggregate remaining cash balance in the $20 billion Trust and qualified settlement funds remained at $6.3 billion. The unallocated headroom in the Trust remained at around $700 million.

Source



Rosneft and BP Signed a Long-Term Contract for the Delivery of Oil Products on a Pre-Paid Basis

Friday, June 27th, 2014

Rosneft and BP Oil International Limited signed a set of agreements designed to organize long-term deliveries of oil products and oil on a pre-paid basis. The terms of transaction provide for export deliveries of oil products with possible substitution with oil of up to 12 million tons within 5 years in bulk on a pre-paid basis in an amount of not less than 1.5 billion dollars. A number of world’s leading financial institutions participated in the organization of advanced payment. The price will be calculated by the formula similar to the one used by the Company when selling oil and oil products under regular annual tenders. Contractual deliveries may start as early as July 2014.

Period of validity of agreements meets interests of Rosneft in conclusion of long-term transactions with heavy consumers, and allows to effectively carry out long-term planning of the deliveries.

Commenting on the signing of the document President, Chairman of the Management Board Igor Sechin said: «Rosneft extends and strengthens its mutually beneficial cooperation with BP. This transaction opens up new opportunities for both companies: it provides BP with stable supply chain and guaranteed quality of oil products and allows Rosneft to support high profitability of its sales activities and acquire additional financial resources in accordance with the referential nature of such deals».

Source



Rosneft and BP Sign Agreement on Development of Domanik Formations

Monday, May 26th, 2014

Rosneft and BP Exploration Operating Company Limited signed a Heads of Agreement on Domanik formations. The document was signed today within the framework of the St. Petersburg International Economic Forum by Rosneft President and Chairman of the Management Board Igor Sechin and BP Russia President David Campbell.

The signature ceremony was led by President of the Russian Federation Vladimir Putin.

The Heads of Agreement provides for implementation of a joint pilot project by Rosneft and BP relating to the Domanik formations and, in the event of success, the possible development of unconventional Domanik resources in the Volga-Urals region. The joint venture company (Rosneft 51%, BP 49%) will be incorporated in Russia.

BP will compensate part of the historical costs to Rosneft for exploration of the Domanik formations and will provide carry financing of up to 300 million USD for the pilot programme, which will be conducted in two phases at licence blocks in the Orenburg Region.



Expro Group: Wins Shah Deniz Subsea Contract

Wednesday, April 23rd, 2014

Leading international oilfield services company, Expro, has secured a milestone subsea contract with BP for the Shah Deniz Stage 2 project in the South Caspian Sea, one of Expro’s largest Europe CIS contracts to date.

The 5-year contract, worth almost $100m, will see Expro provide completion landing string equipment and services for the installation and completion of Shah Deniz Stage 2 subsea wells, covering 24 new subsea completions.

As a result of the contract, Expro is set to invest in its subsea onshore support base and infrastructure in order to support BP locally in Baku, Azerbaijan.

Expro will supply its Landing String Assembly – High Pressure (ESLA-HP) 15k valves in conjunction with its EXPRESS electro hydraulic control systems thus ensuring a fast Emergency Shut Down during the clean-up of high pressure/high rate gas wells.

The ELSA-HP has been developed to service the high pressure horizontal tree completion and intervention market. With systems designed and qualified up to 15,000 psi, 250 degF and 10,000ft water depth, this landing string assembly provides clients with the safety and reliability to develop fields with challenging conditions.

Keith Palmer, Region Director for Europe CIS at Expro, comments:

“This contract further strengthens Expro’s relationship with BP through the provision of our ELSA landing string technologies.

“Expro have been a leading provider of subsea equipment and services to BP in Azerbaijan since 2009, performing to a high standard of safety and service.

“Our specialist subsea teams have deployed more than 1500 completions / 2000 exploration operations to date, clearly demonstrating that Expro is the first choice global subsea landing string provider for reliability in deepwater.

“This additional contract allows Expro to establish further infrastructure and personnel in Baku, to enhance our local presence. This in turn will also allow Expro to promote and provide other products and services to our client base in this area.”



BP Russia: David Campbell Appointed President

Tuesday, April 1st, 2014

BP announced the appointment of David Campbell as President of BP Russia, reporting directly to Bob Dudley, BP Group Chief Executive.

Campbell, who is currently Head of the Group Chief Executive’s Office in London, will be based in Moscow. He has 30 years’ experience in BP, in commercial, technical and operational leadership roles. He has worked across a wide range of onshore and offshore upstream operations in international locations including the Alaskan arctic, the North Sea, Mexico, and as chief operating officer of BP’s operations in Iraq. He has also held senior roles in trading and in the company’s corporate centre. Between 2003 and 2007, Campbell was based in Russia as a senior member of TNK-BP’s upstream leadership team.

Campbell’s appointment consolidates several leadership positions presently managing BP’s business and interests in Russia under one senior executive based in Moscow.

Welcoming Campbell’s appointment Bob Dudley said: “I have worked closely with David and know that he has a huge breadth of experience and a deep understanding of the global energy industry. He has significant experience of working in Russia and will play a central role in shaping BP’s future and activities in one of the world’s most important oil and gas regions.”

Campbell takes up his new role with immediate effect.







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