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Industry Alerts!

Hercules 265 jackup drill rig caught fire after a gas blowout and partially collapsed in GoM - Around midday on July 23 2013, a natural gas blowout occurred at the Hercules 265 jackup drilling rig, operating in shallow water in the Gulf of Mexico by Hercules Offshore at a well owned by Walter Oil and Gas corporation off the coast of Louisiana (South Timbalier Block 220). All of the 40+ workers were safely evacuated. The rig was subsequently covered in a cloud of natural gas and caught on fire around 11 pm at night the same day. The fire partially collapsed the platform and the fire was confirmed to be out on July 25th possibly due to the well caved in and sealed itself downhole. (more...)

Featured Article of the Month

Subsea manifold is a flow-routing subsea hardware (subsea flow router) that connects between subsea trees and flowlines. It is used to optimize the subsea layout arrangement and reduce the quantity of risers connected to the platform. If connected to dual flowlines, the manifold can typically accommodate pigging and have the capability of routing production from a particular tree to a particular flowline.. (more...)

Featured Company of the Month

Halliburton is an oilfield services corporation with operations in more than 70 countries. It has hundreds of subsidiaries, affiliates, branches, brands and divisions worldwide and employs over 50,000 people.

The company has headquarters in the North Belt office in Houston, Texas, and in offices in Dubai, United Arab Emirates (opened March 2007), where Chairman and CEO David J. Lesar works and resides, "to focus [the] company’s Eastern Hemisphere Growth." The company will remain incorporated in the United States.

Halliburton has been involved in numerous controversies, including the Deepwater Horizon explosion. The company has agreed to plead guilty to destroying critical evidence related to the 2010 Gulf of Mexico oil spill, the U.S. Department of Justice said on July 25th. It would pay the maximum allowable fine of $200,000 and will be subject to three years of probation.

In the not-to-distant past, Halliburton found itself under scrutiny over accusations that it performed shoddy, overpriced work for the United States military in Iraq, bribed Nigerian officials to win energy contracts and did business with Iran at time when it faced sanctions.(more...)

Industry Headlines

Upstream RSS

Latest news from Upstream Online

FBI 'warns fuel storage companies of threat'

US officials have warned energy companies to be on the alert for "potential terrorist activities" at fuel storage plants but there were no immediate threats, an oil industry group told members on Friday according to a report.

Petrobras in $380m Colombia asset sale

Petrobras has struck a $380 million deal to sell its Colombia business unit to Perenco for $380 million, the company said Friday.

Occidental may shop Mideast stake

Occidental Petroleum is looking to sell a minority stake in its Middle East operations, two sources familiar with the matter said on Friday, as part of a broader plan to split up the company.

Chevron to sign Brazil spill accord

Chevron will sign an accord on Friday that could lead to the cancellation of civil lawsuits seeking $17.5 billion in damages over a November 2011 oil spill, Brazil's public prosecutor's office said in a statement according to a report.

Pemex reform could come quickly

Mexico could see new oil and gas contracts with private companies signed as soon as late 2014 if the country moves swiftly through a constitutional reform to break the monopoly of state player Pemex as expected this fall, sources working in the sector said in Houston on Friday.

US rig count gains one

The number of rigs drilling for oil and gas in the US rose by one this week for a total of 1768, according to data from Houston-based oilfield services giant Baker Hughes.

BP takes new track with Mad Dog 2

BP has steered its giant Mad Dog phase two project on a new course in pursuit of major cost savings, jettisoning plans for a huge spar platform and instead weighing a TLP concept against a floating production semisub for the Gulf of Mexico scheme.

Shell, ONGC ‘plan BC-10 stake hike’ off Brazil

Shell and India’s Oil & Natural Gas Corp (ONGC) look set to scupper the $1.54 billion purchase from Petrobras by Sinochem Group of a stake in a Brazilian offshore oil block, according to a report.

BigRoll inks Cosco module carrier orders

A Dutch ship owner is setting its sights on increased oil and gas contracts with an order for a pair of newbuilds in China which could work the Arctic market.

Shell gets green light at Ukraine's Yuzivske

Ukraine has signed an agreement clearing the way for Shell to begin exploration of the Yuzivske (Yuzivska) gas field in the east of the country.

Lundin in Sverdrup appraisal nod

Lundin Petroleum has gained the final approval required from Norway’s safety agency to drill a further appraisal at the Johan Sverdrup discovery in the North Sea.

Lofoten opening 'at risk' in Norway talks

The push to open the area off Norway’s Lofoten islands for oil exploration may have to be sacrificed on the altar of political expediency in order to secure the support of minority parties in the new Conservative-led coalition government, according to a report.

Norway rush for veteran play

Norway’s latest licensing round for mature areas has attracted bids from 50 companies - an increase from the 47 applications submitted last year - indicating continued high industry interest in the play.

Hallin at work in Shell’s Gumusut-Kakap field

Singapore’s Hallin Marine said its subsea operations vessel Windermere has nearly completed work on Shell’s floating production system at the Gumusut-Kakap oil and gas field off Malaysia.

Odfjell has 'newbuild capacity' as IPO launched

Norwegian rig contractor Odfjell Drilling says it has the "financial capacity" for a further potential newbuild deep-water rig against a firm contract as it launched on Friday an initial public offering aimed at raising up to Nkr2.7 billion ($458 million) – but not for its own account.

OGX elects directors to revive board

Brazil’s debt-laden explorer OGX has elected three new directors after a fresh departure last week left the company further short of the minimum number of board members to meet Sao Paulo market rules.

Lamprell wins $64m flotel conversion

United Arab Emirates-based offshore builder Lamprell has inked a deal worth about $64 million to complete a major rig refurbishment for Millenium Offshore Services (MOS).

Asco nets $100m BG Tanzania deal

UK services company Asco has scooped a contract worth around $100 million from BG to support the offshore operations of the UK major and others in Tanzania.

M+W opts against Kentz offer

Shares in Irish services outfit Kentz have taken another tumble on Friday morning after another potential suitor turned its back on a takeover approach.

EMGS wins West Africa job

Norwegian electromagnetic survey contractor EMGS has won a letter of an intent for a contract worth a minimum of $8 million for work off West Africa.

Rigzone.com: Latest News Headlines

The latest upstream oil and gas news from around the world.

Petrobras Sells Colombian Pipelines, Blocks to Perenco for $380M

Petrobras says its board had approved the sale of its Colombian oil pipelines and some of its onshore oil blocks to Perenco for $380 million.

North Dakota Oil Production Hits Record High

Oil production in North Dakota hit a new record high in July as oil companies brought more wells online once summer rains stopped, the state regulator said.

Oil Slips as Syria Talks Continue

The price of oil falls as US and Russia hold discussions in Geneva aimed at getting Syria to give up its chemical weapons.

BP Drills at 'Giant' Gulf Field after Setback Due to Spill

BP begins appraisal drilling in its highly touted Tiber oil prospect in the Gulf of Mexico, the company says, more than three years after its massive Macondo blowout.

OGX Elects Board Members, Batista May Come Under More Pressure

Brazil's debt-laden OGX Petróleo e Gas SA elects three new directors, a move that may put more pressure on controlling shareholder Eike Batista to pay the oil firm $1 billion owed under a put option.

Norway's New Government May Bar Oil Firms from Arctic Islands

Norway's incoming ruling parties plan to keep the Arctic Lofoten islands closed to the oil industry in hopes of winning over two smaller parties for their ruling coalition, daily newspaper Aftenposten says.

Storm Ingrid Forms in Gulf of Mexico, Pemex Unaffected

Tropical Storm Ingrid, the ninth storm of the Atlantic hurricane season, has formed in the southern Gulf of Mexico, NHC said, although oil operations were not affected.

Mexico Sees Pemex Profits $7 to $9B/Yr from 2015 Under New Tax Scheme

Pemex will obtain profits of between $7 and $9B a year from 2015 if a new tax structure the government has proposed for the oil major is approved as presented, Finance Minister Luis Videgaray says.

New Houston Educational Programs for Energy Employees in the Works

Houston colleges are set to open new industry programs designed for those seeking a career in the energy sector.

Sources: ONGC, Shell to Pre-Empt Petrobras Oil Block Stake Sale to Sinochem

Shell and ONGC plan to exercise their pre-emption rights to buy a 35% stake in a Brazilian oil block that Petrobras had planned to sell to Sinochem Group, two sources say.

Chevron Signs Brazil Oil-Spill Accord, May End Lawsuits

Chevron will sign an accord that could lead to the cancellation of civil lawsuits seeking $17.5B in damages over a November 2011 oil spill, Brazil's public prosecutor's office said in a statement.

Chevron's Frade Field in Brazil Producing Up To 16,000 Bopd

Chevron produces 15,000 to 16,000 barrels per day of crude on average from its Brazilian offshore Frade oil field.

Locomotive Technology to Power Class 8 Heavy Trucks

A new battery technology can reduce fuel consumption and emissions for Class 8 heavy trucks used in the oil and gas industry.

After Algeria Attack, Statoil Sets Up Risk Unit

Statoil is setting up a political and security risk analysis team to protect employees and assets in global hotspots after failing to foresee a deadly attack in Algeria, company officials say.

New Petrobras Deal for Solstad Offshore

Petrobras signs up Solstad Offshore's Normand Drott vessel for another four years.

Oil Majors Line Up in Norway Mature Area Licensing Round

Fifty oil companies apply to take part in Norway's mature areas licensing round, according to the Norwegian Petroleum Directorate.

Tethys Begins Drilling Doto Well

Tethys Petroleum begins drilling the Doto exploration well in Kazakhstan.

Odfjell Drilling to Go Ahead with IPO

Drilling contractor Odfjell plans to sell up to 30 percent of its shares when it lists on the Oslo Stock Exchange later this month.

Gulfsands Appoints Finance Director

Gulfsands appoints former Setanta Energy CFO as its new director of finance.

Clyde Russell: Asian Buyers' Dreams of Cheaper LNG Likely to be Elusive

Asia's liquefied natural gas buyers are counting on an end to oil-linked prices and a surge in new supply from the United States to deliver cheaper fuel.

WorldOil: Current Issue

The latest news and journals from World Oil.

Using CT and sliding sleeves to reduce water usage in multi-stage fracturing (August 2013)

Using frac sleeves, with a CT frac (half-straddle) method, to place multi-stage treatments in horizontal wellbores, lowers completion costs while reducing negative perceptions about fracing operations by surrounding communities.

Stagnation prevails at a high level (August 2013)

Producers in the U.S. continue to be concerned about regulatory uncertainty, and as such, the number of wells drilled may not reach the 45,000-per-year mark. In Canada, producers are concentrating on oil production, while being concerned about oil transportation and gas prices. Activity in Mexico is about to slow down appreciably.

Eagle Ford Bakken in sight as play extends beyond core (August 2013)

Just as the Eagle Ford shale is poised to become the nation’s premier onshore liquids producer, operators continue to re-delineate the South Texas play, turning their attention outward, and downward, in the hunt for prospects that extend beyond its 13-county core.

Flurry of regulatory requirements add delays and financial, staffing burdens for OCS projects (August 2013)

OCS compliance requirements have escalated since the Deepwater Horizon incident, resulting in permitting delays and increased financial burden for bonding. And yet, the potential prize in the deepwater continues, in many instances, to outweigh the risks, regulatory complexities and costs, as evidenced by the steady recovery in the deepwater rig count.

Brittle failures of OCTG components due to improper testing after manufacturing (August 2013)

Improper test methods, used after component manufacture, may lead to catastrophic brittle failures during service. Material testing should be performed on the test specimens taken from the heat treated raw bar and at the critical section of the component.

REGIONAL REPORT NORTH WEST EUROPE (August 2013)(2)

A new round of frontier exploration hot spots challenges the industry’s technical prowess in several offshore areas.

Novel technique used to manage water encroachment in wells requiring gravel packing in Colombia’s Ocelote field (August 2013)

A novel water packing technique for wells that require gravel packing for sand control, and inflow control device (ICD) functionality to manage water encroachment, has resulted in 100% pack efficiencies in Colombia’s Ocelote field. The technique has significantly reduced water cuts and substantially improved project economics.

Offshore Europe 2013: Planning for the next 50 years of North Sea activity (August 2013)

Taking on the theme of “The Next 50 Years,” presentations and panel discussions at the upcoming SPE Offshore Europe Conference and Exhibition aim to inform attendees about the state of affairs in the historically productive North Sea, and what the future could look like for the area. To be held Sept. 3-6, 2013, at the Aberdeen Exhibition and Conference Centre in Aberdeen, Scotland, the event will celebrate its 40th anniversary in the city this year.

Deep, HPHT well in GOM plugged and abandoned using coiled tubing (August 2013)

Coiled tubing (CT) was used, for the first time, to clean out a Gulf of Mexico (GOM) well to 22,610 ft and successfully place a bottom cement plug. The job was completed in 27 days at a lower cost than if a conventional rig was used. Challenges included bottomhole static temperature (BHST) greater than 400°F and the presence of H2S with a concentration of 75 ppm and 4% CO2.

Refracturing horizontal shale wells with solid-steel expandable liners (August 2013)

Results from two case histories in shale plays indicate that the use of an expandable refrac liner gives comparable, or better, gas production than other methods of perforation isolation, and provides assurance for frac stage injectivity.

Porcupine basin spikes fresh interest offshore Ireland (August 2013)

Spurred by liberal fiscal terms and recent drilling success, a greater number of firms are taking a fresh look at Ireland’s largest exploration play.

ShaleTech 2013 brings together diverse range of technology and talent (August 2013)

Gulf Publishing Company’s fourth, annual ShaleTech conference serves as a specialized forum, which focuses the industry’s wide range of upstream activities to the increasingly important recovery of shale oil, gas and condensate. This conference provides opportunities for creators of new shale exploitation technologies to meet and network with those companies who are looking to put such technologies to work in the field.

What's new in coiled tubing (August 2013)

Tubing team completes its deepest Bakken clean-out to date

Continuing improvements enhance CT reliability and applications (August 2013)

World Oil is pleased to present the 2013 edition of its annual coiled tubing (CT) supplement. Since their introduction to the oil and gas industry in the 1960s, CT applications have increased over the decades through improvements in tubing metallurgy, advances in rig designs and the development of small-bore downhole tools, such as rib-steered drilling motors. CT is now a cost-effective intervention tool with multifaceted re-entry drilling, completion and production stimulation capabilities, with new applications emerging for formation evaluation, shale fracturing, fishing, and even plugging and abandonment, both onshore and offshore.

Lessons learned from CT stimulation of sour gas-producing wells at Ghawar field (August 2013)

Corrosive environments, limited coiled tubing reach, steering tool assembly requirements and precise fluid placement limitations call for special solutions.

First Oil (August-2013)

Shakespearean farce in the swamps

What's new in exploration (August-2013)

A photo worth a thousand rock properties

Drilling advances (August-2013)

A futures market for cuttings?

What's new in production (August-2013)

Solutions for upstream water usage proliferate

Offshore in depth (August-2013)

Get it while drilling

Oil and Gas in the Capitals (August-2013)

Sechin’s star rises over Rosneft

Innovative thinkers (August-2013)

Today in Energy: EIA’s digital dashboard satisfies curiosity

The last barrel (August-2013)

A return of the Cold War will affect oil and gas

New products and services (August-2013)

New products and services

New News information at Offshore Technology

New and updated information from News listed on offshore-technology.com

Today's Brent gains over supply concerns from Libya, North Sea

Brent crude's value dropped today due to a meeting of US and Russian foreign ministers in Geneva to work out a deal to avert a Western military strike on Syria.

Jurong Shipyard wins $346m rig contract from Helix

Jurong Shipyard, a subsidiary of Singapore's Sembcorp Marine, has won a $346m contract from Helix Energy Solutions Group to build a second semi-submersible well intervention rig.

Sigur Ros awards pipelay contract to Jumbo

Malaysian pipelay contractor Sigur Ros has awarded a contract to shipping and offshore transportation and installation contractor Jumbo, for the installation of 126 gravity anchors in deep water.

Noble Energy finds oil at Troubadour prospect, Gulf of Mexico

US-based Noble Energy has discovered oil at the Troubadour exploration prospect in deepwater in the Gulf of Mexico.

Today's oil prices rise amid Syrian uncertainty

Oil prices increased slightly today following an unclear view on whether diplomatic efforts to eliminate Syria's chemical weapons will avert a US military strike against the country, which could lead to disruption of oil supplies from the key produci…

Eni announces first oil from Kashagan field, Kazakhstan

Italian oil and gas company Eni has produced the first oil from the Kashagan oil field outside of the Middle East.

Lundin finds oil, gas at Gohta prospect in Barents Sea

Lundin Norway, a wholly-owned subsidiary of Lundin Petroleum, has discovered oil and gas at exploration well 7120/1-3 in exploration license PL492 in the Barents Sea, offshore of northern Norway.

Offshore Ship Designers to design seismic support vessels for COSL

China Oilfield Services (COSL) has awarded a contract to Offshore Ship Designers (OSD) to design a pair of IMT965 seismic support vessels with a bollard pull of more than of 50t.

Today's oil prices slide on eased Syrian tensions

Oil prices decreased for the third day in row, as tensions eased over a possible US-led strike on Syria, following the latter's support for a Russian proposal to hand over chemical weapons.

Today's Brent stays above $113 after positive Chinese data

Oil prices increased slightly today off session lows after positive Chinese data strengthened the outlook for oil demand.

US EPA fines Shell for Arctic pollution violations

Shell Gulf of Mexico and Shell Offshore have agreed to pay fines of $1.1m imposed by the US Environmental Protection Agency (EPA), for violations of the Clean Air Act by vessels used to drill two oil-exploration wells in Arctic waters off Alaska last…

BP finds gas at Egypt's offshore Salamat well

UK-based BP has announced a gas discovery at the Salamat well in the East Nile Delta, Egypt.

Today's Brent falls below $116 as Syria causes uncertainty

Oil slipped below $116 a barrel on Monday as investors remained focused on any potential action regarding Syria, as Russia and China again urged the United States to hold off from military action ahead of a key vote by the country.

Total warns Shell of corrosive drilling fluid leak at Shearwater

Total has warned Royal Dutch Shell that its nearby Shearwater field may be at risk as a corrosive drilling fluid that caused the North Sea's worst gas leak in 20 years is expected to threaten similar deep-sea wells.

OMV discovers oil at Wisting Central well, Barents Sea

OMV (Norge), a wholly owned subsidiary of OMV Exploration, has discovered oil at wildcat well 7324/8-1, Wisting Central, in exploration license PL 537 in Norway.

Today's Brent exceeds $115 as US set to strike Syria

Brent oil managed to stay at more than $115 a barrel today, despite slipping slightly, owing to increasing concerns about oil supplies in light of a possible US military strike on Syria.

FMC secures $90m subsea equipment contract from Statoil

FMC Technologies has received a contract worth $90m from Statoil for subsea equipment for the Gullfaks Rimfaksdalen project in the Norwegian North Sea.

Oryx Petroleum finds oil and gas at E-1 well, Congo

Oryx Petroleum has discovered oil and gas at the E-1 exploration well targeting the Elephant prospect in the Haute Mer A licence area in Congo (Brazzaville).

TDW to provide pipeline isolation services to Centrica Storage

Pipeline equipment and services provider TDW Offshore Services (TDW) has been awarded a contract by Centrica Storage to provide pipeline isolation services with the SmartPlug tool.

Today's oil prices rise as Senate backs US-led intervention in Syria

Oil prices increased today, holding at more than $115 a barrel, following the US Senate's approval to proceed with military action in Syria.

Featured Editor of the Month

Gary Harrison
Pipeline Technical Authority at BP


Featured Technology of the Month

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Halliburton's DeepReach™ Coiled Tubing Servic uses multiple outer diameter coiled tubing sections in a single string with larger OD sections near the top of the string and smaller OD sections near the bottom.With this arrangement, the tension along the string length is reduced while sufficient flow capacity is retained for performing well intervention operations.

Tapered OD Makes the Difference

The vertical depth capability of conventional coiled tubing is limited because as the length of the tubing string increases in the well, the string’s total weight also increases; therefore, the capability of a conventional CT string to perform ultra-deep work depends primarily on the string’s total hanging weight and the yield strength of the parent metal. If the hanging weight exceeds the pipe’s yield strength, a string separation can occur. Since a tapered coiled tubing string is lighter in weight (compared to a single string of the largest diameter) and its design provides greater strength at the upper end of string, operators can realize up to a 30 percent increase in depth capability over conventional CT strings.

Key Enabling Technologies

Multiple technologies were developed to enable DeepReach coiled tubing to be used in deep well operations. These technologies

include 1) the CT transition joints, 2) Boots & Coots V-Block® gripper design, (more...)