The NR2 offshore platform. Photo: HHI

It’s hard to talk about “world’s largest” in maritime and offshore manufacturing without mentioning Hyundai Heavy Shipyard, and this is no different.  That’s because this weekend HHI loaded onto a barge what is now the world’s largest offshore platform for final touches and delivery.

The platform, called the North Rankin B, was ordered by Australia’s Wood-Side Energy as part of the North Rankin 2 Project, a $5 billion investment announced in 2008 for North Rankin and Perseus gas fields offshore Australia.

Measuring 100m long by 50m wide, the 25,000 ton platform will stand 80m off the water.  The North Rankin B platform will be installed on an offshore jacket alongside the existing North Rankin A platform and connected by a 100 meter bridge where they will operate as a single integrated facility.

The North Rankin & Perseus fields, located offshore western Australia, are part of the North West Shelf Venture project, Australia’s largest resource development in history.  The project owned by an international consortium that includes BHP Billiton, BP, Chevron, Shell, Woodside Energy and Japan Australia LNG.

The NR2 platform is scheduled to sail out in mid-December after finishing touches.

The deckhouse for DDG 1000, the first Zumwalt-class destroyer, is currently under construction at Ingalls Shipbuilding's Composite Center of Excellence in Gulfport, Miss. (image courtesy HII)

PASCAGOULA, Miss., Dec. 2, 2011 (GLOBE NEWSWIRE) — Huntington Ingalls Industries (NYSE:HII) today announced that the company’s Ingalls Shipbuilding division has been awarded an advance procurement contract for work on the U.S. Navy’s third Zumwalt-class destroyer, DDG 1002. The contract is valued at $46 million, with the majority of the work taking place at the company’s Composite Center of Excellence in Gulfport.

“Strategically, this is a very important contract to our company and specifically to the composite shipbuilders working in Gulfport,” said Karrie Trauth, Ingalls Shipbuilding’s DDG 1000 program manager. “The Gulfport facility is a national asset in terms of composite capability and capacity. Our shipbuilders continue to prove this on a daily basis with the significant work they are performing in composites for U.S. Navy shipbuilding programs. With this funding, we can prepare our facility and provide the necessary resources for our talented shipbuilders to continue working on these complex products.”

The funding for this contract allows Ingalls to purchase material and equipment in support of DDG 1002 advanced construction activities, as well as provide engineering and production support services. Ingalls is already building the deckhouse, hangar and peripheral vertical launch systems for DDG 1000 and DDG 1001.

The deckhouse for DDG 1000 is expected to be delivered in the second quarter of 2012.

The Ingalls Composite Center of Excellence is home to the world’s largest numerically controlled, five-axis saw capable of sawing, drilling and milling very large composite components to highly accurate tolerances. Located on 125 acres with access to water, rail and highway transportation links, the center has more than 322,000 square feet of manufacturing space (5.6 football fields) with 253,000 square feet (4.5 football fields) that is environmentally controlled. It has the only U.S. Department of Labor Composite Apprentice Program and is a certified OSHA Voluntary Protection Program (VPP) Star Site.

Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a century, HII has built more ships in more ship classes than any other U.S. naval shipbuilder. Employing nearly 38,000 in Virginia, Mississippi, Louisiana and California, its primary business divisions are Newport News Shipbuilding and Ingalls Shipbuilding.

FBR & Co. (NASDAQ:FBRC) is a leading investment bank with one of the strongest equities distribution capabilities in the securities industry and an active asset management business.

(Dow Jones) FBR slashes its price target on Frontline (FRO) to $1.50 from $5.50 as it downgrades the oil-tanker operator to underperform in the wake of the company’s 3Q report, which included a dividend suspension and “management’s concession that a restructuring and additional capital will be necessary in 1H absent a material recovery in the market.” FBR isn’t “ruling out the risk of a restructuring via Chapter 11, as we saw with General Maritime (GMRRQ) last week.” FRO is down another 14% today to $2.64 after Tuesday’s 41% tumble, putting the week’s loss at 54% and the year’s at 90%.

- by Kevin Kingsbury, Dow Jones Newswires

Pictured: Bit Viking courtesy GL

The world’s first LNG-fueled product tanker, the “Bit Viking”, is now officially in service according to class society Germanischer Lloyd (GL).  The 25,000 dwt product tanker underwent an LNG main machinery conversion supervised by GL.  The vessel is now also the largest commercial vessel, not including an LNG tanker, to use LNG as fuel.

Delivered in 2007, the China-built “Bit Viking” is equipped with double engine rooms, propellers, steering gears, rudders and control systems. Having previously been powered by two 6-cylinder in-line Wärtsilä 46 engines running on heavy fuel oil, the conversion has changed these to 6-cylinder in-line Wärtsilä 50DF dual-fuel engines operating on LNG, supplied by two 500 cubic meter LNG storage tanks on the fore deck.

During the conversion the vessel was fitted with the new equipment necessary for the LNG operation under critical supervision from GL experts ensuring the converted vessel was safely constructed, using the right type of materials and right type of welding.

The technical challenge in the conversion process was immense, says Ronnie-Torsten Westerman, Business Development Manager at GL. As a world first, the project required special attention ensure compliance with relevant class rules and how the flag administration would understand and accept the risk analysis. “Special attention was given to the bunkering process and how it should be performed, since this is a critical operation and requires special expertise and equipment,” said Westerman.

Since re-entering service after her conversion on October 25, the “Bit Viking” has already observed considerable environmental benefits including greenhouse gases reduced by 20% to 25%, sulphur output cut entirely, NOx gases cut by 90% and particulate emissions reduced by 99%. While an official emissions measurement has been conducted, the final results are not available yet but “these figures are a strong indicator of the outcome”, says Ronnie-Torsten Westerman.

The Bit Viking is trading along the entire length of the coast of Norway, from Oslo to Kirkenes, on behalf of oil major Statoil.

DSME's No.3 Royal Dock

DSME said today it has started construction on its No.5 Royal Dock that, once completed, will be the largest floating dock in the world.  Construction on the dock commenced November 1st with a steel cutting ceremony held at Daehan Shipbuilding (DS) in the South Korean province of South Jeolla.

DSME says the No.5 Royal Dock is being built to meet the increasing number of new orders for offshore projects such as FPSOs and LNG-FPSOs. DSME adds that as these offshore projects become larger in scale, the need for bigger production facilities increase.

Daehon Shipbuilding has been working with DSME since last June and will be responsible for the construction of the dock thus reducing strain on DSME’s tight production schedule and storage issues.

At a size 85.6m wide by 432m long and 130,000 DWT, the No.5 Royal Dock will be the largest floating dock in the world and will be able to handle the 18,000TEU containerships on DSME’s orderbook with ease, or any other large vessels up to 68m in width for that matter.

The No.5 Royal Dock will be delivered to the DSME’s Okpo shipyard in December 2012, and will be first used to construct three LNG carriers starting in February 2013.

Painted Lady

The sharp cumbersome lines of this boat may have won beauty contests in the late 1980′s but, like rock starts of yesterday, her looks have faded. An outdated figure, however, is not enough to make a boat pure ugly. No, for that honor you’ll need to add some paint. We are not sure which drugs the owner of this yacht was taking when he commissioned this hull “art” but he had to have been smoking something, or listening to Duran Duran.  Or both.

Signature Series

John Hancock made history with his bold and audacious signature on the Declaration of Independence. The signature series Foster yacht shares his audacious manner, but lacks the equivalent elegance.    It’s like a giant Volkswagen Beetle, comfortably roaming the ocean.

Runner Up – Dark Knight

Not ugly in the classical sense of the word, the Dark Knight might win a Halloween costume contest for its ability to scare young children. If Batman was looking for a new yacht this might be it, but for the rest of us who aren’t superheroes and don’t have a huge cave to park their yacht in, it’s just a little bit strange looking.  I mean, does it even have a bar???

Pictured: Petrobas 10000, a 6th generation drillship working offshore Brazil

RIO DE JANEIRO (Dow Jones)–Brazil’s emergence as a hot frontier for oil and natural gas was boosted Wednesday by two fresh discoveries, with exploration and development of the country’s newfound oil wealth likely to attract billions in investments over the next decade.

Latin America’s largest country is squarely in the cross hairs of the global oil industry, with Brazil’s stable democracy and robust economic growth making it especially attractive. Investments by state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, and international players such as BG Group PLC (BG.LN), BP PLC (BP), Chevron (CVX), Galp Energia (GALP.LB), Repsol (REP) and Royal Dutch Shell (RDSA.LN) are expected to reach $250 billion through 2020, according to a study Wednesday by consultants Ernst & Young Terco and Brazil’s private Getulio Vargas Foundation.

Brazil is betting heavily on development of its offshore fields, with former President Luiz Inacio Lula da Silva–the predecessor and mentor to current head of state Dilma Rousseff–saying oil could transform the country by easing the crushing poverty afflicting many of its citizens. The area known as the pre-salt, where oil was found more than 4 miles below the ocean surface, could hold between 50 billion and 100 billion barrels of oil and make Brazil the world’s fourth-largest crude producer and a top-10 exporter.

That promise has led to a surge in mergers and acquisitions in recent years, with companies that failed to buy acreage at concession auctions paying big bucks to buy in now. M&A activity soared to $18 billion in 2010, up from less than $1 billion in 2007, said Ernst & Young Terco partner Elizabeth Ramos.

Petrobras on Wednesday unveiled a new oil province off the coast of Sergipe state in the Northeast with a deep-water discovery in the Sergipe-Alagoas Basin. The company said the offshore well held high-quality light oil, which contains less sulphur and is easier to refine into products such as gasoline.

The latest discovery builds on a string of high-profile finds that started in 2007, when Brazil announced the first pre-salt oil field. The Tupi field, now in pilot production after being renamed Lula, was the largest discovery in the Western Hemisphere since Mexico’s Cantarell in 1976. Lula alone is estimated to hold 6.5 billion barrels of recoverable oil.

Lula is part of a pre-salt cluster in the Santos Basin, off the coasts of Rio de Janeiro and Sao Paulo states. Long-term well tests are under way on other fields in the region, with Petrobras expecting output from the ultra-deepwater fields to reach 543,000 barrels a day by 2015 before surging to 1.15 million barrels a day by 2020.

Despite the technical challenges that make pumping oil from the ocean depths expensive and complicated, the Ernst & Young Terco-Getulio Vargas study said that oil exports could reach 600,000 barrels a day by 2020 and generate $27.9 billion in revenue. That’s nearly double the $16.1 billion in oil-export revenue Brazil earned in 2010.

And the oil riches are not just limited to the new frontiers. The mature Campos Basin, where more than 85% of Brazil’s crude oil is currently produced, is also home to new finds. While Shell and Chevron both recently started production at offshore fields in the area, billionaire businessman Eike Batista’s start-up OGX Petroleo e Gas Participacoes SA (OGXP3.BR, OGXPY) expects to pump its first oil from the Waimea field in October.

Inland areas are also promising, with Batista’s OGX finding a massive natural gas reserve in the Parnaiba Basin in Brazil’s north. Also Wednesday, Oil start-up HRT Participacoes em Petroleo SA (HRTP3.BR) it made a natural gas discovery in the nearby Solimoes Basin in Amazonas state.

“Brazil has tremendous potential onshore and in shallow waters,” said Helio Diniz, vice president of Canadian merchant bank Forbes & Manhattan. Forbes unit Irati Energy, which is planning a $1 billion initial public offering of shares, is developing a shale oil project in southern Brazil that is expected to produce as much as 30,000 barrels a day. The company also wants to take part in Brazil’s next auction of oil concessions, expected in the first half of 2012.

-By Jeff Fick, Dow Jones Newswires

The pile driver is being designed and built by MENCK, a company with a long history in the hydraulic hammer business and over 40 years’ experience in the offshore industry.  The hammer, the MHU 3500S, will be capable of delivering an astounding 3500 kJ of energy, enough to drive piles up to 500 meters deep into the toughest seabeds.

The 3500S is based on the current MHU hammer design offering flexibility in terms of size, power, mobilization and ease of maintenance.

The order is part of a multi-million package deal between the two companies that also includes the upgrading an additional 3 of HMC’s existing MHU hammers and on-site services for HMC’s entire fleet.

HMC expects delivery of the MHU-3500S as early as January 2013.

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) said Monday that its ultra-deepwater drillship Dhirubhai Deepwater KG2 has set what it believes to be a world record for the deepest water depth by an offshore drilling rig of 10,194 feet of water.  The depth was achieved while working for Reliance Industries offshore India. The rig, which is owned by a joint venture with Quantum Pacific Group, surpassed Transocean’s prior record of 10,011 feet of water, set in 2003 by the Discoverer Deep Seas working for Chevron in the U.S. Gulf of Mexico.

The dynamically positioned Dhirubhai Deepwater KG2 was placed into service approximately one year ago in India under a five-year drilling contract. The vessel is equipped to work in water depths of up to 12,000 feet and outfitted to construct wells up to 35,000 feet deep.

The company achieved this milestone record in 37 years after its first delivery of 260,000 DWT VLCC (very large crude oil carrier), Atlantic Baron in 1974.

The 1,700^th vessel, Morning Lily, is an 8,100 unit pure car/truck carrier ordered by EUKOR Car Carriers.

If Hyundai Heavy’s delivery target of 110 ships for this year is reached, the company will be well on the way to surpassing the 2,000 ship milestone by the second half of 2013.

As of the end of January this year, the accumulated gross tonnage (GT) of ships Hyundai Heavy has delivered stands at 97.76 million. Hyundai Heavy is slated to set up a new delivery record of 100 million GT this April.

Since its establishment in 1972, Hyundai Heavy, as the world’s largest shipbuilder, has delivered ships to over 260 shipowners in 50 countries with 10% of global shipbuilding market share. Furthermore its ships have been recognized as Significant Ships for 28 years in a row since 1983.