Deep Pioneer, image courtesy Technip

Cross-section of a subsea umbilical.

Technip was awarded by Tullow Ghana Limited two contracts, worth approximately €100 million, for the Phase 1A of the Jubilee project. The Jubilee field is located offshore Ghana at a water depth of 1,300 meters.

These contracts cover full SURF project management, engineering, fabrication and installation of a new flexible riser, two rigid flowlines, 11 spools/jumpers, as well as the installation of two manifolds and 5 kilometers of umbilicals.

Technip’s operating center in Paris, France, will execute the project with the support of the Group offices in Houston, Texas, and Accra, Ghana. The flexibles will be fabricated at the Group’s facility in Le Trait, France. This award thus demonstrates Technip’s ability to put in place a worldwide organization to the benefit of a project.

Global 1200, image courtesy Technip

Offshore installation is scheduled to be completed with the Global 1200 and the Deep Pioneer, two vessels from Technip’s fleet, in the second half of 2012.

Cross-section of a production riser, image courtesy Technip

These contracts constitute a significant milestone for Technip’s presence in Ghana. After the successful execution of the first phase of Jubilee completed in 2011, Technip is proud to have been selected by Tullow and its partners for this second phase.

Definitions:

Riser: a pipe or assembly of pipes used to transfer produced fluids and or products from the seabed to surface facilities, and transfer injection or control fluids from the surface facilities to the seabed.

Flowline: a flexible or rigid pipe, laid on the seabed, which allows the transportation of oil/gas production or injection of fluids. Its length can vary from a few hundred meters to several kilometers.

Umbilical: an assembly of steel tubes and/or thermoplastic hoses which can also include electrical cables or optic fibers used to control subsea structures from a platform or a vessel.  

McDermott's specialty subsea vessel North Ocean 102 will undertake the installation of subsea hardware, moorings, risers, umbilicals and flowlines for Ichthys SURF project. (Photo: Business Wire)

This project includes engineering, procurement, construction, installation (“EPCI”) and pre-commissioning of production flowline systems, a MEG injection system, plus start-up condensate transfer and fuel gas transfer flowline systems, control systems as well as other associated SURF elements in water depths up to 275 meters. McDermott will also install mooring systems for the Floating Production, Storage and Offload (FPSO) vessel and Central Processing Facility as well as installation engineering for future flowlines, risers and umbilicals.

McDermott has already begun engineering and procurement work and is expected to start fabrication of more than 16,000 tonnes of subsea equipment, including a subsea Riser Support Structure and installation aids, at its Batam Island, Indonesia fabrication facility beginning in 2013. The complex offshore installation campaign will see McDermott undertake the installation of subsea hardware, moorings, risers, umbilicals and flowlines utilizing its specialty subsea vessels Emerald Sea and North Ocean 102. McDermott is working with Heerema Marine Contractors (“Heerema”) for transportation and installation of a portion of the offshore scope, utilizing the heavy lift, J-Lay and Reel-Lay capability of Heerema’s new-build vessel Aegir.

Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer, McDermott said, “McDermott has a long track record working on EPCI projects offshore Australia. This major SURF award firmly endorses McDermott’s core EPCI competencies and our competitive subsea construction vessels, combined with Heerema’s installation strength and the team’s alignment with INPEX. This is a large scale and complex development, and we are firmly behind promoting the success of this LNG project.”

Heerema's Aegir, a deep water construction vessel, image courtesy Heerema

The Ichthys LNG Project is a Joint Venture between INPEX (76%, the Operator) and Total (24%).  Gas from the Ichthys Field, in the Browse Basin approximately 200 kilometers offshore Western Australia, will undergo preliminary processing offshore to remove water and extract condensate. The gas will then be exported to onshore processing facilities in Darwin via an 889-kilometer subsea pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.

About McDermott

McDermott is a leading engineering, procurement, construction and installation group of companies focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in more than 20 countries across the Atlantic, Middle East and Asia Pacific, our integrated resources include approximately 14,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923.

Technip's Deep Blue, the world's largest purpose-built ultra deepwater pipelay and subsea construction vessel. Photo: Technip

PARIS (Dow Jones)–French oil service company Technip SA (TEC.FR) and a unit of Brazil’s conglomerate Norberto Odebrecht won a contract to supply two pipeline installation ships to state-controlled Petroleo Brasileiro SA (PBR), or Petrobras, Technip said.

Technip and Odebrecht each own 50% in the joint venture that will supply the ships to Petrobras, Technip said in a statement.

The ships will allow Petrobras to connect subsea wells to floating rigs in deep Atlantic Ocean waters, where the oil company has found huge reserves in an area below the seabed that is difficult to reach because of its depth.

The two ships will be built in Korea by Daewoo Shipbuilding & Marine Engineering Co. (042660.SE).

-By Inti Landauro, Dow Jones Newswires

The transaction represents an enterprise value of $1.07 billion (EUR768 million), including $136 million in net debt and is expected to be completed in early 2012, Technip said.

The move positions Technip for the fast-growing subsea markets, which is recovering following the 2010 oil spill in the U.S. Gulf of Mexico.

Global Industries provides subsea construction and pipelay, engineering, project management and support services and operates in major subsea territories, such as the Gulf of Mexico, the Middle East and Asia-Pacific region. Technip believes the acquisition will broaden its business and range of services in the subsea market which it expects to show fast growth in the coming years.

Carlyss, Louisiana-based Global Industries was vulnerable to a takeover after suffering from the drilling suspension in the U.S. Gulf of Mexico following the Deepwater Horizon accident, said Cheuvreux analyst Geoffroy Stern.

“With its strong focus on the U.S. Gulf of Mexico, Global Industries clearly has clearly suffered from the slow permitting in the Gulf of Mexico, while in Asia and the Middle East, the company has some difficulties to face a very competitive bidding environment,” Stern said. He rates Technip at outperform.

At 1356 GMT, shares in Technip were trading down 1.3% to EUR64.39 while the CAC-40 benchmark index was down 4.4%.

For Evolution Securities, the buy should actually “significantly increase Technip’s addressable deep-to-shore subsea infrastructure market by 30%.”

In 2011, Technip forecasts subsea operating margins between 16.5% and 17.0%, from initial expectations of a margin above 15% and expects onshore/offshore combined operating margin between 6.5% and 7.0%, after an initial target of between 6.0% and 6.5%.

Technip said it expects the deal to boost its earnings per share by 5%-7% in 2013 due to revenue from combined projects and at least $30 million in cost synergies from public company costs, real estate, fleet optimization and purchasing.

As for financing the deal, it will use existing credit lines and its own cash, and even though the price seems at the top of the current merger and acquisition trends, “Technip is using low yielding cash to acquire a complementary business which enlarges and consolidates its position in the rapidly growing subsea market,” Evolution’s Morris noted.

-By Geraldine Amiel, Dow Jones Newswires

The contract includes installation and tie-in of heavy lift structures in the Gorgon and Jansz fields. Project management and engineering will start immediately while the offshore operations are scheduled to start in 2013.

The Gorgon project is one of the world’s largest natural gas projects, and is operated by Chevron and is a joint venture of the Australian subsidiaries of Chevron, ExxonMobil Corp. (XOM), Royal Dutch Shell PLC (RDSA), Osaka Gas Co. Ltd. (9532.TO), Tokyo Gas Co. Ltd. (9531.TO) and Chubu Electric Power Inc.(9502.TO).

Shares Thursday closed at NOK143.80.

-By Katarina Gustafsson, Dow Jones Newswires

In a study released Thursday, the Interior Department said subsea power transmission cables generate electromagnetic fields that are detected by several marine organisms. It is unclear, however, whether those electromagnetic fields will disrupt important life functions among the species, such as prey detection or navigation, the study says.

Research is being conducted as the Interior Department to promote offshore wind-energy projects, which will require subsea cables to transmit electricity generated offshore to an onshore power grid.

In April, the Interior Department approved the first construction and operation plan for a U.S. offshore wind energy project, granting approval to Cape Wind Associates to construct more than 100 turbines in Nantucket Sound off Massachusetts.

Given advances in the commercial development of offshore wind energy, “we must continue our effort to expand our knowledge and understanding of the potential effects on the marine environment,” Michael Bromwich, director of the Ocean Energy Management, Regulation and Enforcement, said in a statement.

Despite the gaps, Thursday’s study says companies that construct and design power cables can take steps to reduce electromagnetic field emissions. Among them are measures to adopt certain designs and configurations.

-By Tennille Tracy, Dow Jones Newswires

Image courtesy NOAA

This contract covers engineering, procurement, welding and installation of flowlines, including a 19.5 kilometer pipe-in-pipe production flowline, a plastic-lined water injection flowline and a gas lift flowline of the same length, subsea equipment installation, and installation and tie-ins of new risers and umbilicals.

Technip’s operating center in Oslo, Norway will execute the contract. Flowline welding will take place in the Group’s spoolbase in Orkanger, Norway, while installation will be performed by the Apache II, a pipelay vessel from Technip fleet, in mid-2012.

The contract is subject to approval of the plan for development and operation of Gygrid by the Norwegian authorities.

Source: Technip

Aker Marine Contractors will install the cable utilising its new-build subsea installation and construction vessel, AMC Connector. She will install 106,5 kilometres of cable – in one length – stretching from Hammerfest, Norway, offshore to the Goliat  FPSO.

The subsea power cable, supplied by ABB, will weigh approximately 6 000 tonnes. The AMC Connector – previously called Aker Connector – will easily take this in one load as she will be equipped to handle a total payload of 9 000 tonnes, divided onto two turntables for high voltage power cables or subsea umbilicals.

“With her high payload capacity, AMC Connector will be a great asset to ABB. She is well equipped to install long, heavy subsea power cables,” says Svein Haug, president of Aker Marine Contractors, who will operate the vessel.

“The vessel will also have unique wave motion characteristics which will provide increased project execution predictability in areas such as the Barents Sea, where we often encounter rough seas,” adds Haug.

AMC Connector’s design enables her to operate safely and efficiently in significantly higher waves than most other high-end construction vessels. AMC Connector will comfortably operate in significant wave height (Hsig) of 4-5 metres, which means that she will have an operating window at the leading edge for installation and construction vessels.

Aker Marine Contractors will also provide and install a permanent tether anchor for the subsea power cable.

Contract value for management and execution of the project is approximately NOK 70 million.  This excludes vessel costs, which are covered under the charter agreement signed between Aker Marine Contractors and ABB in March 2010. The installation job will be performed in the second quarter of 2013.  Aker Solutions’ contract party is Aker Marine Contractors AS.

AMC Connector is currently being built by STX Europe and will be outfitted at their yard at Søviknes, Norway. She will be ready for operations from Q1 2012.

The vessel will be owned 50/50 by Aker Solutions and Singapore-based Ezra Holdings Ltd (Ezra), which recently acquired 100 percent of the shares in Aker Solutions’ subsidiary Aker Marine Contractors AS. As part of the agreement, Aker Solutions becomes a substantial shareholder in Ezra. The transaction is expected to be completed during Q1 2011.

By becoming part of Ezra, Aker Marine Contractors will have access to a larger and rapidly growing fleet of installation vessels covering all IMR and SURF installation segments – including flexible and rigid pipelay with capacity up to 3 500 metres water depth – which will enable Ezra/Aker Marine Contractors to compete with the world’s leading SURF contractors.

Ezra operates in the offshore market under the EMAS brand name. EMAS is an integrated offshore support solutions provider for the oil and gas industry. The business was founded in 1992 and is headquartered in Singapore.

(Pictured: AMC Connector courtesy of Aker Solutions)

Last week, Boa Sub C, and her apparently awesome coffee machine (from what I’ve heard), has now been put on contract by Shell for a major subsea umbilical installation project in the Gulf of Mexico.

Please see the press release below:

8 October 2010 – Aker Solutions has signed three subsea contracts with Shell Offshore Inc for deliveries to the operator’s Popeye and Europa fields in the Gulf of Mexico. Contract values are undisclosed.

Under the contracts, Aker Solutions will in total deliver approximately 40 km (25 miles) of electro-hydraulic steel tube umbilicals to Shell’s Popeye field and Europa field extension. Aker Solutions will also install the umbilical for the Popeye field, using the company’s deepwater installation vessel Boa Sub C.

“We have a strategic objective of combining our product and service offerings where they can create attractive business propositions for our customers. The contracts with Shell, where we will first manufacture the subsea umbilical and then install it, is one way of doing this,” says Erik Wiik, President – Subsea North America, Aker Solutions.

Engineering, project management, and manufacturing will take place at Aker Solutions’ state-of-the-art umbilical facility in Mobile, Alabama.  .

“This is an important contract for our umbilical facility in Mobile, Alabama.  Although we have vast experience with Shell through our umbilical operations in Norway, this is our first Shell umbilical project to be executed by our team in Mobile, Alabama. Our key objective is excellent project execution, which will position us for further jobs with Shell,” adds Wiik.

The Popeye field is located in Green Canyon block 116 in approximately 671.6 metres (2,200 ft) water depth and will tie-back to the Cougar fixed platform located in South Timbalier block 300 in 110.3 metres (362 ft) water depth.

The Europa A7 well is located in Mississippi Canyon block 935 in approximately 1143 metres (3750 ft) water depth and will tie-back to existing Europa subsea structure.  The Europa development ties back to the Mars TLP located in Mississippi Canyon block 807 in 896 metres (2,940 ft) water depth.

Aker Solutions’ contract parties are Aker Subsea Inc and Aker Marine Contractors Inc.  The contracts are signed and booked as order intake in Q3 2010.

(c) Subsea7

Two of the world’s most respected subsea oil field construction companies, Subsea 7 and Acergy will be formally merging next year.  This merger will end the bitter head-hunting and bidding wars that have ensued over the past few years between these two companies.

Their main deepwater competitors include Technip and Aker Solutions, both operating state-of-the-art subsea construction vessels such as the ultradeepwater-proven Deep Blue and the luxuriously appointed Boa Sub C, respectively.

London, England – September 28, 2010 – Acergy S.A. (NASDAQ-GS: ACGY; Oslo Stock

Exchange: ACY) today announced that anti-trust clearance has been granted from the relevant

US and Norwegian authorities.

On August 9, 2010 Acergy S.A. and Subsea 7 Inc. submitted their respective applications to the

US Federal Trade Commission and the Anti-trust Division of the US Department of Justice. On

September 8, 2010, the waiting period in connection with the application was terminated, at

which point the Combination was cleared by the relevant US authorities.

On September 6, 2010, Acergy S.A. and Subsea 7 Inc. submitted a notification to the Norwegian

Competition Authority. On September 28, 2010 unconditional clearance was issued.

Completion is currently anticipated for January 2011 subject to shareholder approvals and

other customary completion conditions, as outlined in the prospectus dated September 21,

2010.

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Acergy S.A. is a seabed-to-surface engineering and construction contractor to the offshore oil and gas industry worldwide.

We provide integrated services, and we plan, design and deliver complex projects in harsh and challenging environments.

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Contact:
Karen Menzel
Acergy S.A.

+44 (0)20 8210 5568

karen.menzel@acergy-group.com

www.acergy-group.com