DRILLING

Exxon extends Maersk drillship contract. Dayrate slashed

Danish offshore driller Maersk Drilling has secured a contract extension for the ultra-deepwater drillship Maersk Viking with ExxonMobil. The estimated value of the contract extension is $22.5 million, with a duration of 150 days.  Maersk Viking has been operating for ExxonMobil on the Julia field in the U.S. Gulf of Mexico since delivery from the Samsung Heavy Industries (SHI) shipyard in 2014. The original contract was scheduled to end in July 2017. With the extension, Maersk Viking will now be in operation for ExxonMobil until December 2017. While Maersk doesn’t address the dayrate specifically, a back-of-the-envelope calculation shows the dayrate for the extension period is some $150.000. The original three-year contract had a dayrate of more than $550.000. “I’m truly pleased on behalf...

Cobalt slips deeper into red on Shenandoah impairment

American oil company Cobalt International Energy sank deeper into the red during the first quarter of this year due to an impairment related to the Anadarko-operated Shenandoah discovery in the Gulf of Mexico in which Cobalt owns a 20% working interest.  The oil company on Monday posted a net loss of $306.3 million for the first quarter of 2017, compared to a net loss of $46.6 million for the first quarter of 2016. According to the company’s report, the increase in net loss is mainly associated with the write off of Shenandoah well costs and increased interest expense related to Cobalt’s December 2016 and January 2017 debt exchanges. Anadarko recently completed drilling operations at the Shenandoah-6 appraisal and sidetrack well, which did not encounter the oil-water contact in the eastern...

Korean Foreign Affairs Minister to Meet Angolan Counterpart to Solve Drillship Deals

South Korean Minister of Foreign Affairs Yun Byung-se will meet Angolan foreign minister to seek solutions to the Sonangol case. Daewoo Shipbuilding and Marine Engineering (DSME) currently has a liquidity crisis as it failed to receive the payment of 1 trillion won (US$884.1 million) for drill ships from Angolan state oil firm Sonangol due to the delay in delivery. A senior official from the government said on April 6, “Angola’s Minister of Foreign Affairs Georges Chicoti will visit South Korea in the middle of this month, and Minister Yoon will meet him to discuss the Sonangol problem.” The government was considering a plan for the Financial Services Commission (FSC) Chairman Lim Jong-ryong to meet Angolan foreign minister but it finally chose Yoon. Sonangol has made little progress...

Hyundai Samho Heavy finds a buyer for abandoned oil rig

South Korea’s Hyundai Samho Heavy Industries Co. removed elephantine facility from its dock after it found a new buyer for a semi-submersible drilling rig abandoned by its original contractor.

ExxonMobil Highly Likely to Become Charterer of Sonangol’s Drillships Made by DSME

Angola’s state-run oil company Sonangol are having the last minute negotiation with ExxonMobil Corp., a U.S.-based oil major, on charter contracts for two drillships delievered from Daewoo Shipbuilding & Marine Engineering (DSME). Sonangol needs to secure a charter in order for DSME to deliver two drillships and secure the liquidity of 1 trillion won (US$879.89 million). As the company is making progress in the negotiations, all eyes are on whether rumors on DSME‘s April crisis will fizzle out. According to industry sources, DSME president Jung Sung-leep said, “Sonangol is negotiating charter contracts with two to three oil majors and ExxonMobil is the most probable charterer at this time.” Sonangol ordered two drillships for US$1.24 billion (1.41 trillion won) in 2013 and ...

SembMarine makes massive turnaround

Sembcorp Marine recorded a massive earnings turnaround in the fourth quarter to return to the black in spite of challenging conditions in the offshore and marine market. The rig-builder posted a net profit of $34.3 million for the three months ending Dec 31 last year – a stark contrast to the net loss of $536.9 million in the same period a year earlier. The improved earnings were due to smaller losses from associates and a gain on the disposal of a financial asset arising from the step-up acquisition of Gravifloat, SembMarine reported yesterday – although these were offset by higher finance costs and impairments of financial assets. Turnover fell 37.5 per cent to $829.9 million, mainly due to lower revenue recognition for rig-building projects as customers deferred deliveries. ...

Liquidity Crisis from Norway May Plague Korean Shipbuilders

Seadrill is a major corporate customer of Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering (DSME), and Samsung Heavy Industries, as it explores deep sea oil for global oil companies such as Exxon Mobil and BP

Oil spill near ExxonMobil drilling platform in Bass Strait to be investigated

An oil spill at an ExxonMobil  platform in the Bass Strait is being investigated by the federal regulator, after the discovery of an oily sheen on waters around the rig. The spill comes less than 18 months after a fire raged on the same platform for nine hours before it could be controlled. And in 2013, Exxon was responsible for a spill from another rig in the Bass Strait. Environmentalists have said the spill is a reminder of the inherent dangers of offshore oil drilling, and called for planned oil drilling in the Great Australian Bight to be stopped.  North Sea or Great Australian Bight, oil drilling is always a risky business John Sauven Read more On Thursday, the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) posted an alert saying Esso, a company o...

Maersk Drilling hires SubC Partner for rig inspections

Danish offshore inspection specialist SubC Partner has signed a deal with Maersk Drilling for inspection services. The company will, under a three-year framework agreement, carry out offshore underwater inspection by ROV of Maersk’s offshore drilling rigs worldwide. SubC Partner says it has developed special solutions that enable the inspection work to be carried out offshore rather than yard stay, thus lowering the operational costs. The company said the deal encompasses inspection of both semi-submersible drilling rigs and drillships. Offshore Energy Today has reached out to SubC Partner, seeking more info. We will update the article with any response we receive. In related news, Maersk Drilling on Tuesday said it Maersk Drilling has secured a one well contract with Repsol Colombia for t...

How Ball Valves Work?

Valves play an important role in manufacturing various kinds of items we use or come across on a day-to-day basis. From bicycles or automobiles, jet airplanes, or the oil you use for cooking—all are results of valves in some form or another. However, there are a range of valves. Each differs in not just its shape and dimensions, but also its function and application. In this post, we look at how ball valves work, its different types, and some reasons why it should be used. WHAT ARE BALL VALVES? These are valves that make use of a ball to navigate the movement of substances from one seating surface to another. The function of the ball is similar to a track ball found in old computer mice. However, the ball in the valve consists of a port, which changes alignment in response to the position ...

The Advantages of Using Butterfly Valves

What Is A Butterfly Valve? A butterfly valve is a quarter-turn valve used to regulate flow. A metal disc in the body of the valve is positioned perpendicular to the flow in the closed position, and rotated one quarter of a turn to be parallel to the flow in the fully opened position. Intermediate rotations allow regulation of liquid flow. They are often used in agricultural and water or wastewater treatment applications and are one of the most common and well-known valve types.   Advantages of a Butterfly Valve Butterfly valves are similar to ball valves but have several advantages. They are small and, when actuated pneumatically, open and close very quickly. The disc is lighter than a ball, and the valve requires less structural support than a ball valve of comparable diameter. Butte...

DSME’s Sonangol Project to Reach a Solution

  The Sonangol Project of Daewoo Shipbuilding & Marine Engineering, which holds the key to the shipbuilder’s short-term liquidity problem, is showing signs of settlement based on an increase in international oil prices. The final deadline of the delivery of the two drillships for the completion of the project was November this year but the Angolan national oil company failed to meet the deadline. However, the two sides recently agreed on payment by installments. The South Korean government and Daewoo Shipbuilding & Marine Engineering are planning to wrap up their negotiations with Sonangol in March next year so that the uncertainties of the project can be eliminated. “Sonangol cannot make the lump-sum payment for practical reasons and Daewoo Shipbuilding & Marine Engineeri...

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