Mississippi Canyon
Transcription
Mississippi Canyon
Who Dat Mississippi Canyon 503 / 504 / 547 Supplement to Sponsored by ® CONTENTS Who Dat Mississippi Canyon 5 503/504/547 Prospect Plays 14 LLOG president/ CEO Explains Operating Philosophy Deepwater Equipment Choice Crucial for Who Dat 18 Bold decisions bring LLOG, EOC together Building it so they will come 22 Exmar CEO proud that OPTI-EXTM was built ‘on spec’ Supplement to VP, PennWell Custom Publishing, Roy Markum [email protected] Managing Editor and Principal Writer F. Jay Schempf [email protected] Technical Writers, Jerry Greenberg [email protected] Richard Cunningham [email protected] Contributing Photographers Redding Communications, Bob Redding, CEO [email protected] Circulation Manager, Tommie Grigg [email protected] 918.832.9207 fax: 918.831.9722 Presentation Editor/Designer, Chad Wimmer [email protected] PennWell Petroleum Group 1455 West Loop South, Suite 400 Houston, TX 77027 U.S.A. 713.621.9720 • fax: 713.963.6285 Production Manager, Shirley Gamboa [email protected] 918.831.9735 fax: 918.831.9415 PennWell Corporate Headquarters 1421 S. Sheridan Rd., Tulsa, OK 74112 P.C. Lauinger, 1900–1988 Chairman, Frank T. Lauinger President/CEO, Robert F. Biolchini ® Sponsored by Drilling at Who Dat Future infill wells to take torturous paths 27 ‘Batch’ completions keeps drilling rig at work for LLOG 30 OPTI-EXTM Placement signifies a number of ‘firsts’ 31 Seafloor production layout designed for more expansion Reservoir Engineering at Who Dat Means ‘Constant’ Gardening 34 Monitoring field data, well performance helps to determine optimum depletion plan Growth Just Ahead for LLOG in the Deepwater Gulf 38 Who Dat, three other new field additions to more than double daily production Company Profiles40 Company Profile Index54 4 LLOG/EXMAR W H O D A T F I E L D Who Dat Mississippi Canyon 503 / 504 / 547 W ith its truly unique semisubmersible FPS moored in 3,100 ft (945 m) of water now on station in the Gulf of Mexico’s Mississippi Canyon (MC) Block 547, the Who Dat field, operated by LLOG Exploration Co. L.L.C. (and affiliate LLOG Exploration Offshore L.L.C.) is awaiting hook-up for first oil and natural gas production to begin sometime in 4th Qtr 2011. The field, discovered in December 2007 in adjacent MC Block 503 with Diamond Offshore’s 12-column, moored semisubmersible drilling unit, Ocean Victory, was expanded during the next several years to encompass Blocks 504 and 547, as well. And currently, with three wells scheduled to go on stream in the project’s first phase, Who Dat has let the offshore industry know in no uncertain terms, well, where it is, what it is, and who has it. LLOG/EXMAR W H O D A T F I E L D 5 Tugs nudge OPTI-EXTM during preparation for towing the massive platform to its Credit: Mustang Engineering mooring site in Mississippi As to its location, the field rests beneath a wide deepwater area of the Gulf whose PlioceneUpper Miocene zones had been tested in years gone by but hadn’t yielded commercial quantities of hydrocarbons. In fact, all three blocks covering the field had been leased to other, larger companies at one time or another and handed back, undeveloped, to the Minerals Management Service, the Interior Dept.’s then official offshore leasing organization. But when the MMS held its OCS Lease Sale No. 194 in March, 2005, LLOG showed up with a whole new take on MC 503. After skillful crafting and molding 3-D seismic records with other geophysical and geologic data, the privately held Covington, LA company posted a $6,770,000 bid for MC 503 – considered a relatively high offering at the time for such “previously owned” acreage. However, the bid out spanned those of seven other companies or partnerships, including several majors and large independents, all of whom had the same access as LLOG to new seismic acquisition records, well logs and improved data processing and modeling software. There, indeed, was more-detailed, amplitude based information. And to LLOG geoscientists, the amplitude anomalies revealed beneath 503 were sufficiently bright to suggest the presence of significant hydrocarbon resources. 6 Canyon Block 547. Stepping softly…but lively Though rarely discussed in the general media or trade journals, LLOG is no stranger to the U.S. offshore petroleum industry. Founded in 1977, it began developing onshore Gulf Coast oil and gas reserves, moved into the inland lakes and bays along the coast during the 1980s, and by 1996 had progressed into drilling in federal OCS waters off both Texas and Louisiana. Six years later, in 2002, the company had made its first discovery in water depths of more than 1,000 ft, followed the next year by a discovery in more than 2,500 ft of water, and in 2005 posted its first strike in water depths in excess of 4,000 ft. Since that time, LLOG has become the premier private exploration and production company in the Gulf and one of the top 10 privately owned oil and gas producers in the U.S. Currently it holds interests in more than 147 Gulf leases, of which 80% are undeveloped, and averaged production of 23,000 net boe/day in 2010. Also in 2010, the company asserted “2P” (proven + probable) reserves of more than 220 million boe (verified by qualified third party consultants). The unit is designed to withstand wind and waves of a 1000-year storm. LLOG/EXMAR W H O D A T F I E L D Currently, 84% of LLOG’s reserves are located beneath 1,000 ft. of water or more. Developing them will require floating drilling equipment, Today, some 84% of the company’s reserves are located in deepwater (more than 1,000 ft), and its predominant areas of operation are the Mississippi Canyon, Green Canyon, High Island, Main Pass and South Timbalier areas. What’s more, the company forecasts production from early 2011 to early 2012 to more than double from fields already discovered. mainly semisubmersible rigs. But LLOG’s true strength is contained in what it hasn’t yet done. With an inventory of nearly 90 exploration prospects, it could more than double its reserves during the next several years. This inventory includes a variety of highquality/low-risk targets, including conventional amplitude-supported prospects in both deepwater and on the Shelf, low-contrast amplitude LLOG/EXMAR W H O D A T F I E L D and sub-salt structural plays in deepwater, and deep gas structural plays on the shelf. No lucky hunch But it was the 2007 MC 503 discovery and later development of the Who Dat field that has brought LLOG into truly big-league competition among leaders in deepwater Gulf E&P operations. Some might attribute a measure of the company’s continued success there to plain luck, but like most prosperous companies, management believes the company makes its own luck. Drilling results and well log analysis associated with LLOG’s MC-503 wildcat in 2007, coupled with information gathered from competitors’ 7 previously drilled wells in MC-546, suggested that the unleased block immediately to the south (MC-547) also held hydrocarbons. Armed with this information, LLOG submitted the winning bid of $23,650,000 for MC-547 in the March 2008 Lease Sale 206. Then, along with a trade with ENI for a portion of MC 504, the company knew it had finally assembled all the necessary pieces for the Who Dat deepwater development. After first referring to the field by the block number involved, LLOG officially named it Who Dat shortly before the New Orleans Saints ‘…it’s a pretty unique characteristic that our senior managers are also the ones on the ground getting their hands dirty working seismic data.’ Jay Cole, VP Deepwater Exploration won the NFL’s Super Bowl XLIV championship in February 2010. The name derives from a local chant used by Saints fans: “Who dat? Who dat? Who dat say dey gonna beat dem Saints?” However the field name was conjured up, LLOG’s staff of geophysicists and geologists are credited with combining their shared deepwater experience with the latest data analysis and modeling tools to delineate the multiple targets within the MC 503, 504 and 547 complex. The company’s exploration team, most of whom came with years of both Shelf and deepwater experience with other companies, have taken advantage of both their combined experience in working on major deepwater projects and of LLOG’s $150-200 million inventory of 3D seismic data that covers virtually the entire Gulf. The exploration team has generated more than 300 prospects in the Gulf, with nearly a 70% success rate. The seismic advantage Jay Cole, VP deepwater exploration, based in Covington, is enthusiastic about the exploration team, which may be narrow in quantity but doublewide in experience. “Being a geophysicist, having access to such a large seismic database and working with experienced seismic interpreters are the things I enjoy most about working for LLOG,” he said. “We all have our role, and it’s a pretty unique characteristic that our senior managers are also the ones on the ground getting their hands dirty working seismic data.” 8 LLOG/EXMAR W H O D A T F I E L D Production test of gas zone on the first well in MC 503. The collective deepwater experience among LLOG’s earth scientists and engineers helps assure that the potential for significant discoveries is established long before the drill bit penetrates productive horizons. LLOG/EXMAR W H O D A T F I E L D 9 He also emphasized that LLOG’s access to high-end, pre-stack time-migrated and depthmigrated 3d seismic data, including wide azimuth type data serves to level the technical playing field with larger companies from an exploration standpoint. “We knew MC 503 had been leased in years past by both Shell and British Borneo. It was also public knowledge that several wells had been drilled on adjacent blocks and that hydrocarbons were present, but were declared uneconomic at the time,” said John Doughtie, VP exploration Houston. “Remember, they ‘recent…work by LLOG geoscientists… helped us unlock and exploit the previously hidden economic aspect of the 503 area.’ John Doughtie, VP Exploration Houston 10 were working the area years ago, before new, more detailed seismic data were available.” “However,” he added, “recent geologic and geophysical work by LLOG geoscientists indicated that most of the wells, drilled during the period 1985 to 1998, were not optimally targeted. It was this work that helped us unlock and exploit the previously hidden economic aspect of the 503 area.” Geologist Eric Zimmermann agrees. “Although LLOG is a relatively small company, many of its technical employees have prior experience at much larger companies. It was fortuitous that when LLOG started out into deepwater, it had a veteran staff overseeing the evaluation of its deepwater assets. From the G&G side, this prior large-company experience allowed us to apply the most current technologies to our seismic data evaluations and has hastened the overall Who Dat Field development.” All characterized the team as a compact group that can tackle the same sophisticated data and interpretation software that larger companies deal with, but who can handle it with a lot fewer people and, hence, are able to act much faster – valuable assets when preparing for lease sales, making the decision to drill a well and getting the permit to drill it. Putting it forward So, while Who Dat, along with several other, similar prospects, is bringing LLOG into the current spotlight, the company continues to work the 3D seismic data inventory in the LLOG/EXMAR W H O D A T F I E L D search for new targets of opportunity. And while both exploration drilling and lease sale moratoria require lead time, postMacondo, the LLOG exploration team is actively engaged in planning for both to open up soon. “We’ve submitted several exploration plan applications, and now recognize that both the Industry and BOEMRE (the successor to the now defunct MMS) are engaged in a learning process,” said Zimmermann. “Clearly, BOEMRE’s responsibility and visibility has increased, and that motivates us to be more vigilant, making triple and quadruple checks of our plan and permit applications.” LLOG/EXMAR W H O D A T F I E L D ‘It was fortuitous that when LLOG started out into deepwater, it had a veteran staff overseeing the evaluation of its deepwater assets.’ Eric Zimmermann, LLOG geologist 11 LLOG EXMAR LLOG uses the latest in seismic processing technology to map productive reservoirs. This slide shows a cross-section of the earth. In this field, seismic bright spots generally indicate productive horizons. A map view of one of the productive horizons is shown. 12 All geologic and engineering data, including seismic properties, well log data, core data, pressure data and fluid data) are used to populate each grid with expected rock and fluid properties. The model represents the collective knowledge of the entire team in all disciplines. LLOG/EXMAR W H O D A T F I E L D Being able to visualize the fluid movements in the reservoir over time allows the engineers and geologists to identify areas where oil remains (“unswept areas”), which helps them plan future wells. The model will predict water movement (in light blue) as well as changes in the gas cap. LLOG/EXMAR W H O D A T F I E L D LLOG can compare production from various development scenarios, allowing them to investigate the reserve impact of drilling more wells, changing well locations, changing perforation intervals, and changing production rates. LLOG has run more than 100 sensitivities on the main Who Dat reservoir alone. 13 Credit: Diamond Offshore Prospect Plays LLOG president/ CEO Explains Operating Philosophy ‘…this is one of those rare discoveries where the more we work it, the more we drill it, and the more we test it, the better it gets.’ Scott Gutterman, CEO, LLOG 14 T he fact that a relatively small offshore operating company could drill a discovery well in the deepwater Gulf of Mexico, develop it progressively over a four-year span and then mount a floating production facility to deliver oil and gas production in less than a year is an enviable record, but to Scott Gutterman, president and CEO of LLOG Exploration Co. – the company in question – isn’t particularly surprised by the feat. Yet the Who Dat field, the offshore asset where the aforementioned fast-paced development is taking place, has taken LLOG to a new level of competency, equipping it with the knowhow necessary to take its place among today’s leading Gulf of Mexico exploration and production companies, with the exciting promise of even more growth in the near future. LLOG/EXMAR W H O D A T F I E L D Gutterman, who joined the company in 1993, has more than 30 years of Gulf Coast onshore, Shelf and deepwater exploration and production experience, chiefly with large independent operating companies. A geologist by profession, he held various jobs in exploration at LLOG before being appointed to his current position in 2006. “The Who Dat field is by a wide margin the most valuable property we’ve ever been involved in,” says Gutterman. “We’ve created quite a bit of value onshore, on the Shelf and in the Deepwater in recent years, but this is one of those rare discoveries where the more we work it, the more we drill it, and the more we test it, the better it gets. It is truly a rare commodity in the Gulf of Mexico exploration and production business.” A point of particular pride for Gutterman is that LLOG, a privately owned company, has very little access to public sources of capital, a luxury afforded chiefly to publicly owned companies, large and small. “We have tried to stay reasonably liquid over the years and have fueled our growth with our own internally generated resources,” he said. “For the most part, everything we have done we’ve done with our own money.” Not that he bewails not having access to public funds. Publicly owned companies, particularly major companies, develop offshore assets on a much broader scope, he noted. LLOG/EXMAR W H O D A T F I E L D “Majors buy acreage across larger frontier areas, and if they take on the expense and time to develop a new trend or an extension, and it works, they want to capitalize on that success. So, ahead of new data volumes and before concepts are tested, they capture large amounts of acreage with potential, and if successful, they’ve got the expansion room at a much lower cost. It’s the intelligent way to do it.” LLOG, on the other hand, targets specific prospects, leaving the speculative acreage plays to the larger companies, he said. And while in the past LLOG has resisted the allure of going public, Gutterman doesn’t exclude it as a possible way to go in the future. “We have reached a point with these deepwater discoveries that one of our biggest challenges will be to determine the most efficient way to fund their development.” “We have sold pieces of some discoveries to cover our development costs. The farther downstream we can take a discovery, the more we can receive for whatever we incrementally sell,” he said. “It’s a conservative approach, but it has worked for us up to now.” He noted that LLOG has held leases full-term, particularly on the Shelf, and has released them without significant exploration. Too, the company has released some deepwater leases, mostly because they were potentially natural gas-prone, and currently the target for deepwater production is crude oil. 15 The seismic, always the seismic In any case, a rich inventory of 3D seismic data is essential to success for anyone operating in the deepwater Gulf, particularly to a prospect generator, said Gutterman. Calling the Who Dat field ‘a conventional mini-basin amplitude play,’ LLOG President/ CEO Scott Gutterman says having a rich inventory of 3D seismic data is essential to success for anyone operating in the deepwater Gulf, particularly prospect generators. Scott Gutterman, CEO, LLOG 16 “Who Dat, for example, is a conventional minibasin amplitude play,” he said. “It shows itself. You can see direct indicators. It’s above the salt and it images nicely. The Mississippi Canyon general area was the scene of one of the initial hot deepwater plays in the Gulf. But that was years ago. Today, however, when the industry gets new data, whether it’s a new acquisition technique or a new processing algorithm, it typically reveals something that you couldn’t see earlier. That’s how we developed the MC 503 prospect.” LLOG currently has more than a handful of leases in the ultra-deepwater Gulf, and isn’t hesitant about exploring them in the future, he said. “Processing techniques that allow you to manage velocities are now giving a much better resolution below the salt,” he pointed out. “The fact that we can image 5-6 miles below the mud line, and do it with accuracy and in some cases, precision, is simply amazing.” Scientific data notwithstanding, Gutterman is genuinely concerned about LLOG’s roster of experienced exploration, drilling, production and reservoir engineering specialists. “We’re getting a little long in the tooth,” he observed. “Combined, our people have an average of 30 years’ experience. At some point soon we will have to address that, but there is some concern that we’re not seeing sufficient numbers of graduates in petroleum-related sciences.” Taking a realistic view of petroleum industry employment, Gutterman said that from an exploration standpoint, it’s not a very glamorous profession to consider these days. LLOG/EXMAR W H O D A T F I E L D Net MBOED, Thousands 2P Net Production Forecast 100 90 80 70 60 50 40 30 20 10 0 2010 2011 PDP PDNP “Many of the people who are going into the industry have been exposed to it through family and friends. From an engineering viewpoint, there are a good number of people coming into the industry. But from a geological and geophysical perspective, the candidates are much fewer than they were when I was in School (Gutterman is a graduate in geology from the University of Louisiana – Lafayette). “But frankly, what we do is fun!” he said. Offshore services threatened As for the downturn in the industry spawned by the Macondo disaster, Gutterman is troubled about the effects the permitting slowdown is having on the offshore service industry. “If they can’t work their equipment they can’t exist. We fear that the lack of activity is dismantling the service infrastructure in the Gulf. Some service companies can move their assets to other regions onshore if need be, but marineonly service providers can’t re-deploy their equipment domestically. However, the industry is hopeful that the current challenges to gaining access to drilling permits will be met and the process will return to a more timely schedule.” Finally, Gutterman is proud of LLOG’s close attention to detail in the health, safety and envi- LLOG/EXMAR W H O D A T F I E L D 2012 PUD 2013 Probable ronmental aspects of Gulf offshore operations. In 2008, the company won the Safe Operations and Accurate Reporting (SOAR) award, granted periodically by the Minerals Revenue Management (MRM) division of BOEMRE to OCS lessees that are outstanding in the areas of offshore operating performance and fiscal responsibility. SOAR recipients must be among the top 10 OCS lessees according to a formula that considers data on Incidents of Noncompliance and accidents attributed to the lessee during the previous calendar year. Also, the award-winner must be among the 10 best-performing OCS lessees in terms of royalty reporting and production reporting during the previous year. “There’s not a person in this industry who wouldn’t want their operation to be as safe as possible,” he said. “As for the current drilling permit slowdown, we’re going to reach a point that permitting procedures are normalized and both operators and regulators will be more efficient. With that understanding, we can then begin planning our business; knowing how to budget for operations. Pre-Macondo, we were spending $400 - $450 million annually in the GOM and Louisiana and today, it’s only a fraction of that. We hope to soon get back on a solid basis for planning our operations.” 17 Deepwater Equipment Choice Crucial for Who Dat Bold decisions bring LLOG, EOC together T he old adage “fortune befriends the bold,” has been confirmed time and again through the ages. Exmar Marine installed this Vapor Recovery Unit (VPU) as part of the built-in production handling equipment aboard the OPTI-EXTM. But it couldn’t be more apt than when applied to how a privately owned offshore producing company, LLOG Exploration Co. (LLOG), managed to link up with the manufacturer of a unique semisubmersible production platform, Exmar Offshore Co. (EOC) It took boldness on both companies’ parts to come together to solve mutual challenges, and it worked. LLOG, the aggressive discoverer of the Who Dat field in the Gulf of Mexico in 2007, found itself with a commercial oil and gas asset in Mississippi Canyon blocks 503, 504 and 547, but faced with a dilemma over how best to bring it on stream. The subsea wells were located in fairly deep water (2,600-3,100 ft), so subsea tiebacks to existing platform infrastructure back on the Shelf, which were quite some distance away, might be one solution. It also could produce the field with an 18 LLOG/EXMAR W H O D A T F I E L D These oil sales shipping pumps were among equipment built-in to the OPTI-EXTM topsides by Exmar Marine. expensive floating production system of some type, treating liquids and then offloading them into shuttle tankers, with gas production tied back to existing pipelines. Other options included building a new fixed structure on the Shelf and tying it back to Who Dat to gain closer proximity to a transport pipleine back to shore. The costs and construction times associated with a brand-new floating system, be it a spar or other semisubmersible, weren’t particularly attractive. Sharing the use of a new floater with another company also was discussed, but that, too, was expensive and would limit LLOG’s use of its topsides facilities. Too, purchasing an existing system originally designed and built for another field would place severe limitations on what could be done with it at Who Dat, particularly since topsides facility modification would have to be carried out offshore – a serious problem in itself. Also problematic with all these options was that lengthy negotiations with other companies to settle fees for treating and carrying LLOG oil and gas, and capacity limitations of existing pipelines in the area, most definitely would pose additional delays. But LLOG management would have to decide quickly in order to bring production on stream to begin offsetting the investment already made in acquiring the leases and drilling and completing the wells necessary for full field development. The company already had made LLOG/EXMAR W H O D A T F I E L D other discoveries in deepwater, and had developed them mainly with subsea tiebacks, but the reserve size involved at Who Dat was the company’s first encounter with the probable need for floating production equipment. And this time it was warranted. Enter the FPU Meanwhile, EOC, part of the Europe-based Exmar LNG/LPG shipbuilding and tanker services group, was engaged in building floating production facilities for deepwater fields around the world. This included construction of floating production, storage and offloading (FPSO) vessels and the design of both drilling and production equipment. A particularly attractive market was the deepwater Gulf, where all sorts of floating systems were in demand. But EOC had a trump card to play in the competition for deepwater equipment – the deep-draft OPTI-EX semisubmersible production platform, boasting a unique hull designed to improve motion performance and a flexible, generic, single-deck topsides designed to accept modular skids specific to a user’s needs. It also featured direct drive of main equipment. Combined, these design features alone would allow for rapid deployment and, perhaps more importantly, re-deployment for early production and marginal field applications – the first such independently owned floating production unit (FPU) with such redeployment capabilities. TM 19 Exmar’s speculatively built floating production unit, the OPTI-EXTM, was the optimum size for LLOG’s needs at Who Dat. The two companies made their deal, and the FPS was on station in the field in less than a year. Eager to place a full-size example in front of the industry, EOC got the go-ahead in 2006 from the parent company to actually build an OPTIEX , convinced it would be scooped up almost immediately for use in the deepwater Gulf. So, EOC ordered the hull to be built by Samsung Heavy Industries in Korea and the flexible topsides to be designed by Mustang Engineering in the U.S. Exmar elected to build the topsides at Kiewit Offshore Services’ shipyard in Ingleside, TX, where it would be mated with the hull, which was to be dry towed from Korea. The actual mating took place in May 2009. The topsides were complete other than field specific requirements, primarily production and export metering equipment. TM The decision to build on speculation was indeed a bold one, considering the vagaries of the market for first-time equipment designs of any kind. But EOC was sure that once potential users witnessed the versatility designed into the OPTI-EX with their own eyes, they would lease it for use in deepwater fields, particularly those with shorter life spans. And once used to drain such a field, EOC could then move the FPU back to shore for refurbishment and made ready for new equipment skids and another deployment. TM A chance encounter Back at LLOG, as company managers tell it, several months of meetings were held 2009 and early 2010 to address LLOG’s options for floating equipment to aid in development at Who 20 Dat. At one such meeting, one of the company’s engineers mentioned having picked up a onepage brochure on EOC’s OPTI-EX platform. To that point, equipment like the OPTI-EX had not been considered. But it looked attractive, particularly since it was already built and there were indications that it could be fitted with topside skids designed for a specific offshore field. TM TM “Some of us went down to Ingleside and kicked the tires a bit around the OPTI-EX ,” said Bruce Cooley, LLOG VP of Facilities, who also is project manager for the company’s subsea and pipeline activities. “It was built out except for the ins and outs. The name plate said it was equipped to handle 60,000 b/d of liquids and 50 mmcf/d of gas. They hadn’t installed the measurement system or the LACT (lease automatic custody transfer) and gas sales skids, among other equipment, so we thought we could make it work for us.” TM Negotiations began between LLOG and Exmar in April 2010, based initially on a lease arrangement and later on, an outright purchase of LLOG/EXMAR W H O D A T F I E L D OPTI-EXTM is equiped with an extra large flare tower. the FPU by LLOG. The companies agreed on the latter arrangement and in August 2010 an acquisition contract was signed, with payments scheduled to be made in different milestones over a period of 62 months after installation in the field. The total outlay by LLOG for the FPU would be more than $400 million. Once the sales agreement had been reached, LLOG ordered a high-pressure inlet production module that incorporated what it needed for primary separation. “It didn’t have the gas dehydration capacity that we needed, so we added a new contactor system that was good for up to 150 mmcf/d,” said Cooley. “The as-built liquid-handling capacity (60,000 b/d) worked for us.” Construction of the Who Dat-related skids was begun in August 2010, and the OPTI-EX was towed to its pre-set location in MC 547 in July 2011. TM “The schedule was a big advantage for us,” said Cooley. “We got the FPU on location in less than a year, with first oil to begin in late September-early October.” Any of the other options would have taken much longer, he added. Call it serendipity or just plain luck, but it took audacity on the part of EOC to build the OPTIEX on spec. And it took daring on LLOG’s part to accept an untested FPU to develop one of its most important deepwater assets. TM ‘Some of us went down to Ingleside and kicked the tires a bit around the OPTI-EXTM,… we thought we could make it work for us.’ Bruce Cooley, VP Facilities, LLOG But as the old saying goes, fortune does befriend the bold. LLOG/EXMAR W H O D A T F I E L D 21 Building it so they will come Exmar CEO proud that OPTI-EXTM was built ‘on spec’ ‘…because of the EOC team’s determined focus and attention to detail from the start, the integration sequence was even smoother than we expected.’ Nicolas Saverys, Exmar Group CEO N icolas Saverys, chairman and CEO of the diversified Exmar shipping and offshore group headquartered in Antwerp, Belgium, believes that designing floating production equipment that is “shipyard friendly” allows for overall lower use of steel and more precise assembly of components. Also, by a simplified design of single-level topsides deck space, attracts more interest by potential customers, since they can add production and storage equipment modules to fit their particular offshore field requirements. Saverys is proud of the design team at the group’s Houston-based Exmar Offshore Co. (EOC) business unit and their series of deepwater semisubmersible offshore platform designs, suitable for production, as well as for drilling and well intervention applications. The Exmar Group is set up as a fully integrated shipping company that not only operates vessels commercially, but also builds, finances 22 LLOG/EXMAR W H O D A T F I E L D Integration of the OPTI-EXTM topsides with the Credit: Mustang Engineering hull took less than 3 hours. and manages vessels and platforms technically. The EOC unit not only designs and builds such equipment, but can lease, bareboat charter, time charter, and enter lease-and-operation agreements, as well as sell its equipment. But Saverys is especially pleased that EOC led the call for speculative construction of the company’s OPTI-EX design floating production unit (FPU), which only a year and a half or so after construction was sold for more than $400 million to LLOG Exploration Co. for the Who Dat field. The OPTI-EX is the first speculative semisubmersible FPU in offshore petroleum industry history. TM TM As built, the OPTI-EX was designed to fill the needs of producers with medium to large fields in water depths up to 10,000 ft., which takes in a majority of currently planned production facilities in the Gulf of Mexico. It also would qualify for similar-sized fields off West Africa and eastern South America, among other areas with similar water depths and weather conditions. TM LLOG/EXMAR W H O D A T F I E L D The devil’s in the changes Typically, the design and construction of major floating production units is often burdened by major and minor design modifications, not to mention myriad alterations during construction brought on by changes in field requirements. “But over-design is THE problem in building offshore production units,” said Saverys, noting that the Exmar Group has a distinguished past as both a ship designer and builder, and since the 1980s has been a leading supplier of highcapacity LNG and LPG ships as well as floating production, storage and offloading (FPSO) vessels, which lends valuable experience to its engineering staff. He added that when offshore producers, particularly major companies, oversee the design and construction of large deepwater production installations, field requirements change, affecting the original design, often months or years into the process. What’s more, he said, different departments and changing project management personnel often precipitates additional changes, once again affecting the original design, even during construction. Such changes inevitably add physical weight to the finished product. Added weight, in turn, generates still more changes, including even major fabrication restructuring. 23 As CEO of the Exmar Group, Nicolas Saverys believes more units like the OPTI-EXTM will be used in the Gulf of Mexico “And,” he said, “When you start changing the design, it often perplexes the shipyard,” he said. “They will obviously make the changes, but there will always be a price tag attached.” Exmar’s design for the OPTI-EX , he pointed out, is purposely generic, making the FPU versatile, since the producer – the lessee or the owner – has the leeway to install his own production handling and storage equipment skids. Added spare capacity makes it even easier to do so, he added. TM “The design of the OPTI-EX™ deep draft ringpontoon hull is based on improved motion responses for a wide range of extreme sea-states. These motion characteristics allowed the unit to be installed in one of the most onerous areas in the Gulf of Mexico. The ring pontoon and large ballast capacity also allow for the easy installation of a large number of production and export risers without the need for any internal hull modification.” “The ring pontoon acts very much like a foil, similar to how, say, Boeing would design the wing of a new aircraft concept.” 24 deepwater market… Perhaps even in the near future. The single deck, he said, is designed to match the top dimensions of the hull which, in the case of the existing OPTI-EX , measures about 200 ft X 200 ft (over 3500 square meters). This allows for maximum space to hold various sizes of process equipment, storage and quarters modules, which are added later by the user. The large overhead cranes allow easy access to each module and skid on the deck. TM Smooth integration The initial design assumed a quayside integration of hull and topsides to avoid the risks and costs associated with an offshore integration, which often is necessary with float-out production facilities, said Saverys. It also allowed the topsides to be fully pre-commissioned on land. So, besides having designed OPTI-EX , the EOC team’s second big achievement was matching the hull, fabricated at the Samsung yard in South Korea, with the topsides, fabricated in the U.S., he said. TM LLOG/EXMAR W H O D A T F I E L D The sequence of integrating the OPRI-EX topsides with its hull was even smoother than even Exmar expected. “These two large pieces of equipment had to match, which such equipment often does not under similar circumstances,” said Saverys. “It isn’t unusual to have to burn a bit of steel or weld additional pieces on the spot, but because of the EOC team’s determined focus and attention to detail from the start, the integration sequence was even smoother than we expected.” The integration plan called for a period of up to three days for mating the topsides to the hull, he said. “But once the topsides were positioned above the hull with the aid of the heavy-lift crane at the yard, it took less than three hours – two hours and 35 minutes, to be exact.” A coming trend? Saverys said the OPTI-EX is unique in many ways, but won’t remain so. TM “We already have received interest in not only a straight repeat of the unit sold to LLOG, but also for bigger versions with more deck load capacity. One prospective customer wants to more than double the production-handling capacity to120,000 boe/d or higher,” he said. Although Exmar will eventually no longer own the OPTI-EX , Saverys expects LLOG would TM LLOG/EXMAR W H O D A T F I E L D redeploy it when Who Dat field development is complete and the reserves are fully depleted, or when a larger FPU might be necessary. “Of course, that’s LLOG’s decision to make,” he said. “But by owning the equipment, they also increase the value of their field assets. A relatively quick refurbishment, addition of different process and storage equipment, and they could conceivably move it to a whole new area.” He said EOC is engaged in studies to determine where, in an intelligent way, similar approaches might work outside the Gulf. “There’s been a very open relationship between Exmar and LLOG’s teams,” he said. “Exmar is a relatively small company in the industry, and so is LLOG, at least for now. So our mutual goals match to some degree. That helped in the decision process. Each team knew things the other one didn’t and each had experience that was valuable to the other. That resulted in a smooth level of cooperation. We had an agreement in principle in less than two months from our first discussion, for example. And once we began, everything fell into place, thanks to focus everyone involved had to have to make this a success.” 25 Courtesy: Noble 26 LLOG/EXMAR W H O D A T F I E L D Drilling at Who Dat Future infill wells to take torturous paths T he Who Dat field lies beneath an average water depth of 3,200 ft, with ten stacked reservoirs located between 10,000-17,000 ft (3,048-5,182m) in Pliocene and Upper Miocene Age zones. The field would appear rather simple to develop from the standpoint of drilling and completions, but such is not necessarily the case, since several future development wells will be drilled with rather torturous directional bores. The discovery well, drilled in 2007, confirmed the presence of mainly natural gas and condensate reserves in the MC 503 prospect. Diamond Offshore’s Ocean Victory drilled the well. Two years later, after LLOG leased MC 547 just to the south, the company used the Noble Lorris Bouzigard semisubmersible drilling two delineation wells – a second well in MC 503 and a single well in the newly acquired block. The company later replaced the rig with the Noble Amos Runner, which is equipped with higher pressure blowout prevention equipment and is also better-suited for completion work. LLOG/EXMAR W H O D A T F I E L D 27 The Noble Amos Runner semisubmersible was used to complete two wells in the Who Dat field. Combined, the three Who Dat wells penetrated seven of the field’s ten horizons. The second and third wells were completed in mainly oil zones, testing from 17 to 26 API crude with gas/oil ratios (GOR) ranging from 400 to 1,300. Crude properties contain low wax content and no asphaltene flocculation. Reservoir pressures range from 6,000 to 12,500 psi, and flow tests delivered an average of up to 10,000 b/d of oil and 60 mmcf/d of nonassociated gas. All three wells drilled and completed thus far apparently weren’t all that difficult, if you ask Bob McMann, and Steve Stegeman, LLOG drilling engineers who directed drilling operations at Who Dat and at a number of other LLOG deepwater blocks in the same general area. The company plans to drill up to nine additional wells to fully develop Who Dat, they observed. However, with the exploration drilling shutdown following BP’s fatal Macondo blowout and spill in early 2010, coupled with the subsequent long delays by BOEMRE in issuing new exploration drilling permits, it may still be some time before they are drilled. In any case, they said, recent installation of the OPTI-EX FPU in the field, along with subsea production infrastructure being put in place to serve it, has made further Who Dat drilling a moot point until the existing wells go on stream, which is expected this fall. Lots of drilling ahead “We do have a number of infill wells to drill,” said McMann, “In fact; the very next one will penetrate six or seven targets, and will prove up a lot of reserves.” A new drilling rig will have to be found to drill the wells, they explained, since the company’s three-year contract for the Noble Amos Runner recently reached its term. TM 28 “We probably have more than 700 rig days in the drilling and completions mode at Who Dat alone,” said Stegeman. “And we’ve scheduled more than 700 rig days of exploration LLOG/EXMAR W H O D A T F I E L D drilling elsewhere. Also, there’s a tremendous shortage of deepwater rigs in the Gulf these days, so we’re actively looking for drilling equipment, even though none of our exploration permit applications have been approved by BOEMRE.” neers to make certain the company’s offshore projects come about as smoothly as possible. The drilling engineers and geologists worked closely together to allow all targets to be reached from two drill centers. Stegeman said most of the wells planned have azimuthal changes in addition to inclination changes of more than 30 to 60 degrees and in two or three dimensions (3-D complex wells). Courtesy: Noble LLOG’s drilling record and number of wells drilled is an admirable one, particularly for a privately owned company (see related chart below), the two engineers pointed out. That being said, we are confident we can suc“Most of the top companies working both on cessfully execute this drilling program because the Shelf and in deepwater have big drillwe have previously drilled more complex ing departments,” said McMann, “and that wells. “And there are some potential horizonincludes both large and small independents. tal wells ahead, which is unusual in this curWe have a very experienced staff of Engineers, rent play,” he said. “But we’re confident we’ll be which includes Steve Stegeman, Mike Kaberready to drill them.” lein, myself, our consultants and field drilling supervisors. We feel Top 20 GOM Drillers fortunate that we have Number OCS wells Drilled by Operator this high qualified TD from 1/1/2002 through 12/31/2010 staff. 900 LLOG/EXMAR W H O D A T F I E L D Number wells 800 700 600 LLOG Number 1 Private LLOG Number 12 Overall 500 400 300 200 100 Dy cM Eni oR an na GO m M ic Sh el f AT P gy er M I LL Pa OG rt ne r W s al te Ne r xe n a XX gy En O en Ar er nM xo Ex En BP ob il/ XT l T el & Sh W G ER T e M /K ko n on An ad ar St ro in Ch ar /M he ac ev er 0 Ap Future challenges Just prior to the Macondo mishap, LLOG had one floating rig with two jackups, McMann noted, adding that as drilling engineers, he and Stegeman often work closely with both completion and reservoir engi- Source: BOEMRE Database, LLOG Drilling Records 29 ‘Batch’ completions keeps drilling rig at work for LLOG One of the deepwater If it weren’t for conducting completion work on deepwater wells throughout most of 2010, LLOG might today find itself quite behind in development of several of its prospects, including the Who Dat field itself. The problem was that the company was planning to drill a number of exploratory wells in several deepwater prospects, and was planning a fourth well at Who Dat, when the federal government declared its moratorium on deepwater drilling activity after the fatal Macondo disaster and spill in April 2010. The six-month moratorium, put in force in May, was officially lifted the following October. However, new regulations put forth by a brand-new Department of the Interior kept a tight lid on the process of approving deepwater drilling permits, a situation that remains to this day. Like many other deepwater producers in the Gulf, LLOG has not yet gained a single permit approval in the 10 months since the moratorium was lifted. But while some deepwater producers elected to void drilling contracts early on by declaring force majeure, LLOG managed to keep its one deepwater semi-submersible rig on contract, the Noble Amos Runner, completing the exploratory wells drilled before Macondo in the vicinity of Who Dat. 30 According to Barney Paternostro, LLOG completions engineer, the company normally prefers to drill exploratory and development wells in batches to minimize rig costs, and then batchcomplete them at a later time. So everyone was familiar with what the post-Macondo situation dictated, during which the company conducted seven completions before having to release the rig at the end of its contract this past July. horizontal trees supplied by FMC Technologies for one of the Who Dat field wells meets the air-water interface prior to installation on the sea floor. The three subsea completions conducted in the Who Dat field were very complex. Two of the wells are equipped with Baker Hughes’ “intelligent well system” which enables the selective production of multiple zones without future subsea well intervention. ‘Perforating and installing frac packs are fairly conventional for subsea wells, but adding the installation of subsea trees and the intelligent well system, along with flow-testing the wells back to the rig, all add to the complexity,’ said Paternostro. Fortunately, he said, LLOG was in the midst of a multi-year alliance with FMC Technologies for the supply of subsea tree systems for various LLOG projects, including the Who Dat field. These subsea trees typically have a long lead time of over twelve months for delivery but were already equipped and ready for subsea installation. So this allowed the company to start the successive well completions very quickly. LLOG/EXMAR W H O D A T F I E L D OPTI-EX Placement signifies a number of ‘firsts’ TM Seafloor production layout designed for more expansion I n mid-July, when the OPTI-EX floating production system (FPS) was attached to its mooring system in 3,100 ft of water in the southeast quarter of Mississippi Canyon Block 547, service vessels and barges began bearing down on the area to complete the process of hooking up the FPS’s topsides production handling facilities with the seafloor production hardware in preparation for first oil – and gas – from the Who Dat field. TM With little or no downtime after arriving at the site, the FPS was successfully moored and made ready for taking on production, scheduled for fourth quarter 2011. According to Scott Gutterman, LLOG Exploration Co. (LLOG) president and CEO, the placement of the OPTI-EX was a significant milestone, since it was the first deepwater FPS to be installed in the Gulf of Mexico after the Macondo incident. Also significant, said Gutterman, was that it was the first time the U.S. Coast Guard has approved an existing FPS for installation. TM The OPTI-EXTM floating production system, along with its mooring system, now installed in Mississippi Canyon Block 547, is designed to withstand the wind and wave forces of a 1,000-year storm. LLOG/EXMAR W H O D A T F I E L D 31 Installed in the Gulf during the early part of the summer storm season, the OPTI-EXTM awaits connection with the Who Dat field’s subfloor infrastructure. The OPTI-EX also is thought to be the first privately owned FPS in the world. TM Rugged mooring system The FPS is held on station with 12 chain-polyester-chain mooring lines connected to preset 80-ft. suction pile anchors. Both FPS and mooring system are designed to withstand the wind and wave effects of a 1,000-year storm. Two subsea wells in MC 503 and third in MC 547 denote the production kickoff for LLOG’s overall development plan for Who Dat, which currently is based on an eventual total of 12 wells. Designed by Pinnacle Engineering, the Who Dat seafloor layout features two well centers – “A” and “E” – in Block 503, both about 12 miles away from the FPS, with dual 6-in.D insulated flow lines connecting each well center to the FPS. The flow lines are round-trip piggable. Each of the centers services existing FMC horizontal subsea trees, installed earlier with the assistance of equipment aboard anchorhandling vessels (AHV). They are serviced via jumpers to multi-well manifolds, also designed and fabricated by FMC. At the E center, two 4-slot manifolds are connected in series to allow for up to eight wells. A single 4-slot manifold serves the A center. The wells in each center are connected to the flow lines back to the FPS and controlled via two subsea control umbilicals to each drill center with electrical and hydraulic flying leads to every well, each independent from the other, giving LLOG the capability of continuing production in the event flow from one center is interrupted or choked back for any reason. The MPS Vessel Olympic Intervention IV, owned by Oceaneering International Inc., is equipped with two work class ROVs rated for 4,920-9,840 ft (2,500-3,000m) water depths. It is scheduled to make subsea connections. 32 LLOG/EXMAR W H O D A T F I E L D Each of the Who Dat seafloor well centers is linked to the OPTI-EXTM FPS by control umbilical. Here, the umbilical is seen being reeled before being taken offshore for subsea installation. All well center flow lines, as well as both oil and gas export pipelines, are connected by flexible risers to the FPU. Special adaptors were fabricated to connect the risers to specific points on the outside surface of the FPS’ lower pontoon. This modification was accomplished as the OPTI-EX lay afloat at the Kiewit yard using a special coffer dam to expose dry welding points. TM from Shell production facilities as well as from those owned by other producers in the Mississippi Canyon and adjacent areas. For gas export, the FPS is connected via a 9.5in. flexible riser to a 17-mile, 10-in. pipeline to a PLET connecting to the Independence Trail pipeline operated by Enterprise Field Services, L.L.C. Export line tie-ins A 5,000-ft., 11.5-in. flexible riser from the FPU will connect to a 19-mile, 14-in. heavy wall thick oil export pipeline culminating at a pipeline end terminal (PLET) that ties into Mars pipeline system, which gathers processed crude LLOG/EXMAR W H O D A T F I E L D 33 Reservoir Engineering at Who Dat Means ‘Constant’ Gardening Monitoring field data, well performance helps to determine optimum depletion plan ‘Today, the industry has access to more reservoir data than ever before.’ Jerry Simms, LLOG project engineer 34 C urrently, LLOG Exploration Co.’s depletion plan for the Who Dat field – with 12 wells tied back to the OPTIEXTM Floating Production System (FPPS) – indicates an economic 30 year field life. But that’s not necessarily set in stone, since not all 12 wells have yet been drilled, new reservoir learnings will be obtained, and changes in development strategy probably will occur, which would make the current depletion plan moot. The surprises have been pleasant on both reservoir quality and fluid type. With each well drilled, questionable zones have been proven and field reserves have gone up significantly. This calls for reservoir engineers to be “constant gardeners.” LLOG/EXMAR W H O D A T F I E L D The job of the reservoir engineering staff is to work diligently at combining static field data with dynamic well and reservoir performance criteria that, among other things, can possibly change a field’s depletion plan to a significant degree. “It’s a living document,” said Gerard “Jerry” Simms, LLOG Project Engineer, of the depletion plan at the Who Dat field. Simms, along with Reservoir Engineer Mike Vercher, are charged with using their knowledge of reservoir surveillance, geology and fluid mechanics to monitor pressure changes and movement of gas, oil and water in each of Who Dat field’s producing horizons. Some of the sands are thinly bedded and laminated while others are thicker channel and sheet sands. All of the sands have exceptional rock properties with porosities of 25-35% and permeabilities of 200md to over a darcy. “Each time you drill a new well, you get new data that you have to enter into the reservoir model,” said Vercher. “To respond to those changes, you have to make adjustments throughout the development process.” But it doesn’t stop there, he added, since any change in individual reservoir performance once again alters the depletion plan. Fortunately, he said, the data so far have indicated larger volumes than expected of hydrocarbons in each of the field’s 10 total producing horizons. Much like the company’s exploration and drilling teams, Simms and Vercher are armed with the latest technology for analysis of reserve viability. Additionally, LLOG/EXMAR W H O D A T F I E L D ‘Each time you drill a new well, you get new data that you have to enter into the reservoir model.’ Mike Vercher, reservoir engineer they are deepwater reservoir analysis veterans, both having come to LLOG from major oil companies with significant deepwater and ultra-deepwater field assets. “Today, the industry has access to more reservoir data than ever before, enhancements in Logging While Drilling, Open Hole Pressure and Sampling and continuous downhole pressure monitoring are examples,” said Simms, who with Vercher works closely with the company’s VP for deepwater projects, Rick Fowler. “We can do things today we would never been able to do 10 years ago.” Wearing different ‘hats’ Because of the company’s lean but mean operations philosophy, both Simms and Vercher sometimes play nontraditional roles for reservoir experts. “When we began drilling the first well in MC 503, we were required to put on our petrophysical hats,” said Simms. “Mike and I are involved in putting the downhole data acquisition program together with the G&G and Drilling teams before any drilling begins. Among other things, that includes cores, 35 pressures and samples for optimum reservoir understanding. Some fluids came in heavy and some came in light, so we had to determine how we would deal with that as it relates to the Who Dat gathering and facility design. “Integrating the geologic picture, the deeper reservoirs were more typically sheet sand deposits,” he said. “As you moved up in the section, it became more and more amalgamated sheet and channel sands. So, in general, you would expect water drive in the basal sands and less effective water drive in the shallower sands. It actually worked in our favor, since we had gas at the top, and you would prefer volumetric drive for the gas, with water driving the oil.” Mapping the water drive mechanism – the active aquifer that displaces the oil in the producing zones – is often difficult to do in any reservoir or group of reservoirs, they noted, though such information is crucial to determining when aquifer energy will be expended or when wells eventually produce too much water to be viable. “The seismic data in the aquifer are often sketchy since you often do not have that sharp contrast between wet sands and shales” said Simms. “You do the best you can to try to map out the geologic variability that may reduce the aquifer influx into the reservoir, but because the amplitude picture is less detailed, there’s still some variability involved.” However, he said, both his and Vercher’s combined knowledge of analog deepwater fields, 36 coupled with updated production recovery figures available from various public documents, gives them the opportunity to better predict the performance of the Who Dat reservoirs.” “In the case of Who Dat, the subsurface team in Houston and Covington put together a nice list of at least a dozen analogs to help us support what our recovery expectations were for the oil reservoirs,” he said. Flow line prediction Optimizing the flow line specifications is not usually a traditional job for reservoir engineers; however, new modeling techniques allowed Simms and Vercher to do just that at Who Dat. LLOG/EXMAR W H O D A T F I E L D “We now work with the Petroleum Experts, Inc. Integrated Production Model (IPM),” said Simms, “which helps us understand how all the wells interact with one another in a flow line system.” The Who Dat field development plan called for four infield flowlines with an individual loop system for each of the field’s two well centers, he observed. With oil from wells at both centers going up each flow line pair, the IPM helped to determine the size and length necessary for each line. “Our integrated model gives us a more realistic view of our well and field production forecast over the life of each well,” he said. “We build LLOG/EXMAR W H O D A T F I E L D individual well models and link them together in a field model to understand how each well will perform in combination with the other wells in the same flowline over the field life. It is particularly important to have an accurate field model if recompletes to new zones have significantly different pressures than the other wells in the same flowline.” In the end, he said, reservoir engineering technology in deepwater today involves integration of the entire flow system that includes optimization of the surface production system, the flow line system and the export pipeline system so that the company not only produces the most oil and gas, but also maximizes the field’s value. 37 Growth Just Ahead for LLOG in the Deepwater Gulf… Who Dat, three other new field additions to more than double daily production ‘Once we have cash flow from Who Dat, we will amass plenty of capital to use to pursue our additional exploration plans for prospects we’re very excited about.’ Rick Fowler, LLOG VP, deepwater projects 38 W ith the Who Dat field nearing its first phase of first production, what’s next for LLOG? Rick Fowler, vice president, deepwater projects, said that in addition to further development of Who Dat, three of the company’s deepwater discoveries now under development, when put on line during the remainder of the year and into 2012, will serve to more than double the company’s daily production of both oil and gas. In addition, the company in late July received approval of its exploration plan for drilling an exploratory well in its Son of Bluto II prospect covered by Mississippi Canyon Blocks 387 and 431. Plan approval by BOEMRE anticipates subsequent issuance of a drilling permit. LLOG/EXMAR W H O D A T F I E L D This was LLOG’s first exploration plan to be approved since the Macondo incident more than a year ago, Fowler said. Grand canyons echo success The ongoing development projects mentioned are located in the Mississippi Canyon and Green Canyon areas, he said The Mandy project, located in 2,465 ft. of water in MC Block 199, consists of three wells tapping Pliocene zones, and when tied back to W&T Offshore’s Matterhorn TLP production system in MC 243, is expected to produce at an initial rate of 15,000 b/d of oil and 12 mmcf/d of gas, Fowler said, adding that gross recovery at Mandy is expected to be 10-30 million boe. “In June, the Condor prospect, in the form of a single discovery in 2,949 ft of water Green Canyon Block 448, was placed on production as a single-well subsea tieback to ConocoPhillips’ Marquette platform on the shelf in Green Canyon 52,” said Fowler. The company owns a 25% working interest in the field. Fowler noted, “The well has been flowing at a gross rate of 6,000 b/d of oil and 9 mmcf/d of gas,” “The Goose prospect, which lies in 1,624 ft. of water in MC 751 and was proved up by a Pliocene discovery well drilled by Spinnaker Petroleum in the late 1990s, is being completed as an intelligent well in time to become a subsea LLOG/EXMAR W H O D A T F I E L D tieback to our own Valley Forge field manifold in MC 707, with first production expected in first-quarter 2012,” he said. LLOG acquired the block during OCS lease sale 208 in March 2009. The former operator had released the block earlier after determining it to be stranded, at the time, due to a lack of host facilities within a reasonable distance. The Goose well encountered gas/condensate in three sands and flow tested at a combined rate of 8,000 b/d of liquids and 28 mmcf/d of gas, Fowler added. LLOG holds a 100% working interest in Goose. “Once we have cash flow from Who Dat, we will amass plenty of capital to use to pursue our additional exploration plans for prospects we’re very excited about,” said Fowler. More FPUs in offing? Tim Lindsey, Senior Vice President of Operations, said the quick turnaround at Who Dat will allow the company to fill out the OPTI-EX name plate production capacity sooner. TM “We have a number of high impact deepwater exploratory wells to drill and if we’re correct in our assessments, the prospects should result in significant production and could very well create the need for one or two more floating production systems like the OPTI-EX . Of course the drill bit is the final judge.” TM 39 C o m p a n y p r o f i l e Exmar Offshore Company Exmar Offshore Company Makes Offshore Industry History Offshore nals located in Antwerp, Belgium. Exmar Today, EOC’s office is staffed with Company (EOC) provides engineering also owns and operates accommodations nearly 100 engineering professionals. services related to the marine industry barges and is developing further opportuni- Its senior staff each has over 25 years’ including speciality vessels, ships and ties to add assets to the offshore fleet. experience in the offshore industry and in Houston-based Exmar offshore units such as floating production EOC’s genesis goes back to the late their respective engineering fields. Their systems, drilling rigs, accommodation 1980s when Exmar NV and a Swedish experience and expertise lie in design, units and floating storage units. EOC’s investor Offshore construction management and operating capabilities range from concept develop- Company, which owned fourteen drilling drilling and production vessels world- ment through basic and detailed design rigs at the time, and renamed the com- wide. Among the specific services to the to construction project management, pany Arethusa Offshore. Arethusa was offshore industry are: start-up, commissioning and operations. subsequently sold to Diamond Offshore • Integrated solutions for floating EOC is wholly owned by Exmar NV in 1996. acquired Zapata In 1997, a number of senior structures, from concept design (Exmar) of Antwerp, Belgium, a diversified “Arethusa” employees left Diamond and, to shipyard detailed drawings and and independent shipping and offshore with the backing of Exmar, founded EOC technical specifications; group of companies. Exmar’s shipping unit as a design group initially focused specifi- specializes in the ocean transport of gases, cally on offshore drilling rigs. • Structural and fatigue analysis and design; • Electrical analysis and design; particularly LNG, LPG and ammonia. Exmar In 2001 while Exmar’s Offshore Group currently operates and manages one of in Antwerp was making its’ re-entry into the world’s largest LNG regasification fleets. owning offshore assets, with the con- Exmar’s offshore business units include struction of a floating production, stor- EOC in Houston; DV Offshore, an engineer- age and offloading (FPSO) vessel and an ing firm located in Paris, France; Exmar accommodation barge, both for Total in • Project management; Offshore Services, a marine operations and Africa (West and North Africa), EOC con- • Construction management. maintenance company providing staffing, tinued growing and evolved into an engi- In 2004, EOC became involved in the training, and management of offshore instal- neering design and consulting company design and development of semisub- lations such as FPSOs, FSOs, and gas termi- for both drilling and production vessels. mersible floating production systems • Electronics and control systems design; • Hull marine and mechanical systems engineering; (FPS), and the following year Exmar made a decision to focus its marketing efforts as a provider of semisubmersible FPS, primarily in the U.S. Gulf of Mexico. In 2006, Exmar moved full speed into the semisubmersible FPS market and without a contract or client commitment, ordered its OPTI-EX™ design, the first such speculative semisubmersible FPS in the history of the offshore industry. “It is a very competitive market, so we had to do something very different,” said Samsung Heavy Industries built the OPTIEX™ hull at Geoje Island, South Korea. 40 LLOG/EXMAR W H O D A T F I E L D standards in the Gulf of Mexico. We will not build another OPTI-EX™ on speculation,” he continued, “but we had to build the first one to prove the concept.” That concept is a flexible semisubmersible-based FPS that captures the maximum number of potential developments in the Gulf of Mexico and other deep water prospects worldwide. The company approached it by answering the question, “How do you design something that is suitable to produce almost any field in the Gulf of Mexico with some foreseen modifications? “That was our solution,” Lim said. “We do not need to build a specific production facility for every development. We also David Lim, Managing Director of Exmar Offshore. “We had to take a position. It is Transit time for the OPTI-EX™ hull to Ingleside, Texas was fifty-two days. realized there is an opportunity for early production with a flexible approach.” The a significant paradigm shift for the indus- OPTI-EX™ was conceived, try, as most semisubmersibles are built OPTI-EX™ Concept designed and built as a flexible and for a specific operator with a specific field Although the OPTI-EX™ hull and top- generic deep water production facility. in mind. sides were built on speculation, the ven- The OPTI-EX™ was delivered on time “Our CEO was a firm believer in the ture proved successful because Exmar and on budget. The innovative hull is a idea and stayed committed through the stayed focused on the market in which proprietary ring-pontoon design devel- entire project,” Lim continued. “He was they wanted to participate. “That helped oped by EOC to improve performance unwavering in what he believed the quite a bit,” Lim said. “That criterion and provide a large area on the pontoon, value to be to the right operator even enabled us to put forth an engineering allowing for flexibility for production and when we delivered the unit and did not solution to specifically meet require- export pipeline risers. The single deck, yet have a contract.” ments of the higher operating and design modular equipment skids and direct engine drive of main equipment allows for ease of future expansion of the production facility’s capabilities. It also provides ease of maintenance and repair or replacement. The OPTI-EX™ is designed to be redeployable for field development and early production operations, and incorporates regulatory requirements implemented following the 2004 and 2005 hurricanes, Ivan, Katrina and Rita, as well as industry lessons learned from the storms. Kiewit Offshore Services constructed the OPTI-EX™ topsides facility on land as one unit. LLOG/EXMAR W H O D A T F I E L D 41 C o m p a n y p r o f i l e Exmar Offshore Company The topsides unit is loaded on a barge for the mating with the hull. to maintain additional free space on the deck for future equipment and to design and install all equipment in modules and skids for easy and quick replacement. The single-level deck was designed to allow the FPS’s overhead cranes to access every module and skid on the unit. For the modules that may be more than a single level in height, the crew would not have to remove equipment in order to reach the module that might need replacing. This Establishing the Concept The result was that EOC developed design allows the operator to easily add and remove equipment on-site. “We knew from the beginning that we several design parameters that would wanted the ability to capture as much of permit them to capture most of the “One of our scenarios was that EOC the Gulf of Mexico market as possible,” potential field developments in the mar- would own the facility for the next 20 to Lim said, “so we went to our partner, ket. For example, the OPTI-EX™ FPS is 25 years,” Lim said. “We wanted to build Mustang Engineering, because they have capable of producing 60,000 barrels of oil something that is suitable for the initial a very large database and extensive expe- and between 50 to100 million cubic feet field development, and then adapt the rience with floaters in the Gulf of Mexico.” of gas per day. Other parameters were FPS to another field, so we looked at this The completed OPTI-EX™ was commissioned at quayside. 42 LLOG/EXMAR W H O D A T F I E L D flexible concept as a way to redeploy the unit. That begins with initially procuring production equipment for a wide range of applications and a facility that anticipates the addition and removal of equipment during its life.” Another significant difference in the OPTI-EX™ when compared with other semisubmersible FPS is the design and performance of the hull. The hull is a deep draft ring-pontoon with optimized column shape for motions reduction. The single-level truss deck requires no bracing between the pontoon and deck, eliminating structural obstacles, allowing ual value risk is directly related to how for a flexible topsides equipment and easy it is to redeploy the unit. OPTI-EX™ sailed from Port Aransas to her new home on July 1st. “With the OPTI-EX™ design, the oper- global. “We have a very long presence A major benefit with the OPTI-EX™ ator can configure and reconfigure the in West and North Africa with regard to concept is significant time savings. A unit very quickly because of the modular, floating production units,” he said. “We purpose-built custom FPS has a typical single level topsides,” Lim added. have ambitions to further expand our riser arrangement. FPS and accommodations business in design and construction timeline of three to five years. The OPTI-EX™ can be built EOC Looks Ahead Asia and the Far East and in the offshore within two to three years. And the opera- “We are in the floating production busi- segment in general.” tor can complete the project in the same ness,” Lim said. “We are not limited on “Additionally, what we have done with manner as LLOG Exploration Company, the asset side to semisubmersibles, the OPTI-EX™ and LLOG may change the which spent the final nine months of the and in that respect, we are not limited way some companies view deep water build customizing the unit and adding to designs we produce internally. On developments in the Gulf of Mexico,” specific topsides equipment as necessary. the asset side of the business, we are Cotaya continued. “LLOG is the first pri- EOC signed the contract with LLOG in late not bound by our proprietary designs, vately held independent E&P company to August 2010, and less than a year later the but with respect to us as an engineering own a deep water FPS, and that should FPS was complete and sailed to location. group, semisubmersibles are what we encourage other operators to examine want to do.” their development plans. One reason for the extremely quick topsides completion was that the unit Lim confirmed that the company is “I think the OPTI-EX™ is going to be was approximately 80% complete with very committed to the Gulf of Mexico. a game changer for the industry world- equipment based upon the Gulf of Jay Cotaya, EOC’s Director of Marketing, wide,” Lim added. “We have not seen any Mexico field parameters supplied from explained, “We see plenty of opportu- deep water development in the Gulf of Mustang. “The remaining 20% of equip- nity in the Gulf of Mexico, as many of Mexico or any other area for which OPTI- ment is dependent on what field the the Gulf’s deep water developments are EX™ could not be adapted.” operator will be developing,” Lim said. larger production facilities that act as When a field is depleted, the OPTI- field hubs. As new fields are discovered EX™ can be reconfigured quickly to and developed, utilizing subsea comple- move onto the next project. “Many tions tied back to the larger hubs, much floating production units that are leased of that capacity will be filled.” or owned are built to exact operator While the company plans to maintain requirements and are used for maybe its commitment to the Gulf of Mexico five to eight years,” Lim said. “The resid- region, Lim stated, EOC’s business is LLOG/EXMAR W H O D A T F I E L D Exmar Offshore Company 11511 Katy Freeway, Suite 200 Houston, Texas 77079 Phone: (281) 679-3900 Fax: (281) 497-3370 Website: www.exmaroffshore.com 43 C o m p a n y p r o f i l e B A K ER H U G HES Baker Hughes and LLOG efficiently and safely drill and complete in the Who Dat field Through collaborative initiatives between technology areas and LLOG’s operational formation pressure-testing service. To LLOG Exploration Co. LLC and Baker knowledge. Together with LLOG, Baker further define reservoir characteristics, Hughes, a series of three wells in LLOG’s Hughes devoted some of its most expe- a post-processing technique for logging Who Dat field were successfully drilled rienced engineers and technicians, with mechanical properties was used to aid and in determining reservoir compressibility multizone years of experience ranging from 11 to 43. well architecture integrated with intel- The Who Dat field’s first well, MC 547 ligent well systems. Optimization of the SS01, was completed in June of 2010 The combined portfolio of technolo- well architecture and completion design and set the bar for subsequent expecta- gies and services were implemented to was achieved through a comprehensive tions. Well MC 503 SS02 was completed minimize the overall project risk. Baker understanding of the reservoir require- in September of 2010 as an intelligent Hughes’ AutoTrak G3 rotary steering sys- ments and long-term production goals of well, and MC 503 SS01 was completed tem combined with real-time MWD/LWD LLOG’s Who Dat field. The overall technical in January of 2011 with three frac packs data enabled the rotary steering system to and operational success of the project can integrated with intelligent well systems. drill complex well targets. TesTrak services be attributed to a combined team using The well designs included two intelligent were used in the first well during the drill- Baker Hughes’ expertise across multiple well systems that enabled the operator to ing phase to measure formation pressures produce from separate zones or comingle in an unknown pressure regime, as well as production, resulting in optimal manage- provide fluid gradients and reservoir fluid ment of reserve recovery and well perfor- mobility. The real-time formation pressure completed, including SC-2™ Gravel Pack Packer Neptune SCSSV ™ Premier Packer ™ HCM-Plus™ Tie Back Receptacle mance. Despite the complexity and scope testing provides data to update the geo- SAF-1 Selectaflow™ Contol Valve of technology, the wells were drilled and logical model as well as improve wellsite SLCMD Sleeve completed with industry-leading efficien- safety and enhance drilling efficiency. The EXCLUDER2000™ Sand Screen cy and safety performance while meeting LithoTrak advanced LWD porosity service the goals under the planned cost. was used in all three wells in the 12 ¼-in. SC-2 Packer and 8 ½-in. reservoir sections. LithoTrak CMP Isolating Valve Shrouded HCM™ with 2.81 and 2.75 R Profile Precise wellbore placement provides neutron porosity, bulk density and Baker Hughes’ drilling and evalua- acoustic caliper measurements. In addition, tion team delivered precise wellbore the bulk density measurement can be dis- placement and critical formation data played as a borehole image spanning 360°. SC-2 Gravel Pack Packer integral to the success of LLOG’s Who At the Who Dat field, essential porosity Dat project by using the AutoTrak G3™ information was provided from LithoTrak 23/8-in. 4.6 lb BTS-8 Tubing rotary steerable system. In addition, as well as a hydrocarbon-type indica- an array of logging-while-drilling (LWD) tor when the neutron and density mea- services were implemented, including surements were compared. Structural Baker Hughes’ OnTrak™ measurement- dip information and pay thickness were while-drilling (MWD) service, LithoTrak™ determined from the borehole images. LWD porosity service, SoundTrak™ LWD The density measurement was also com- acoustics service, and TesTrak™ LWD bined with the compressional slowness CMP Defender Valve SLCMD Sleeve EXCLUDER2000 Sand Screen SC-2 Gravel Pack Packer CMP Defender Valve EXCLUDER2000 Sand Screen FS-1 Retainer Production Packer 44 and its affect on recoverable reserves. measured with SoundTrak LWD acous- Deep water multizone completion featuring sand control and intelligent well design. tics to generate synthetic ties, which are used to improve the resolution of surface seismic and improve positioning within the field. SoundTrak was used in all three LLOG/EXMAR W H O D A T F I E L D With reservoir pressures exceeding 10,800 psi, Baker Hughes’ BJ Blue Dolphin™ stimulation vessel efficiently executed the stacked deepwater completions. The pressure pumping team, working with the well completion teams, performed the challenging highrate stacked frac packs. pick up the perforating guns, resulting in reduced time to rig up and rig down the guns. Furthermore, well-control tools were used during the perforating process to minimize fluid losses, spot fluid-loss control pills, and provide well isolation. Critical to the success of the Who Dat project was the installation of the sandface completions. It was imperative to establish well connectivity with the reservoir to ensure high productivity and to deliver a completion that maintains solids control over the life of the asset. With reservoir pressures exceeding 10,800 psi, Baker Hughes’ BJ Blue Dolphin™ stimulawells in both the 12 ¼-in. and 8 ½-in. res- ventional stack packs with SC-2 frac pack tion vessel was selected to efficiently exe- ervoir sections to generate the synthetic packers, SAF and CMP reservoir isolation cute the stacked deepwater completions. ties to surface seismic measurements valves, HCM intelligent control valves for Working with the well completion teams, for improvement of positioning as well reservoir control, a Premier™ remov- the pressure pumping team executed the as provide rock mechanics information, able production packer, and a Neptune™ challenging high-rate stacked frac packs. pore pressure indication, and inputs for deep-set surface-controlled subsurface The successful construction of the amplitude variation analysis. safety valve. Each of these technologies Who Dat field’s wells illustrates the bene- provides reduction in risk during the oper- fits of collaboration, teamwork, planning, Well completion ational phase as well as reservoir control technology selection to minimize overall The complexity of completion design in over the life of the asset. project risk, HSE focus, and innovation the Who Dat field required installation of In each phase of the operation, initia- that resulted in industry-leading execu- multiple zones in a single wellbore with tives were taken to optimize operations. tion during both the drilling and comple- approximate reservoir pressure ranges During the tubing conveyed perforating tion operations. of 8,600 psi to 10,800 psi and use of a operation, all well-control tools were CaBr2 fluid with weights ranges from pre-torqued to reduce makeup and 12.9 ppg to 13.7 ppg. Additionally, fluid breakout downtime on the rig floor and loss and zonal isolation were required to eliminate the possibility of a wrong during each completion phase as well as connection in the tool string given the the integration of intelligent well systems pre-assembly. Additionally, this reduces for optimal reservoir management. potential health, safety and environ- Technologies selected by LLOG to suc- mental (HSE) issues due to a decrease cessfully implement the completion of in the handling of makeup and breakout Who Dat‘s multizone wells included con- equipment. Dedicated lifts were used to LLOG/EXMAR W H O D A T F I E L D Baker Hughes 2929 Allen Parkway Houston, Texas 77019 Tel: 713-439-8135 Fax: 713-439-8280 Email: [email protected] Website: www.bakerhughes.com 45 C o m p a n y p r o f i l e D O C K W ISE DOCKWISE TRANSPORTS THE EXMAR OPTI-EXTM HULL Realizing the Inconceivable For good reason, Dockwise is the Exmar and Samsung Heavy Industries and motion monitoring system. Weather contractor of choice for exceptional - enabled a 16-hour, incident-free load- forecasts from the Ship Performance ocean transport, logistical management out operation, not in the least due to the Optimization System (“SPOS”) allowed and installation projects. From our first especially installed strand jack system for float-over project in 2003 – the TOTALELF, anchors on the quayside preventing the Predictions that exceeded the set-out Amenam – to the recent involvement in vessel from compressing against the engineering limits allowed the Captain the Vyborg project in Korea, Dockwise quay. Another feature that aided the to change course or adjust speed. leads the way in remarkably challenging incident-free load-out was Dockwise’s and pre-installed successful, never-seen-before cribbing, allowing the hull to float directly from the vesssel’s execution of projects. predicting motion responses. Successful Float-Off On December 15, 2008, the HTV Swan arrived at Kiewit’s yard Feats of Engineering in Texas where a successful float-off enthe sued of the OPTI-EX™ OPTI-EX™ hull. The image of the Transporting Exmar hull turned out OPTI-EX™ hull’s four to be an extraordinary columns feat over the Swan’s sides of engineering suspended 2008, shows that Dockwise Belgium-based Exmar literally goes beyond contracted Dockwise what is deemed fea- to transport the 7500 sible. The successful MT hull transportation of Ex- from Korea - where mar’s hull registered ingenuity. In OPTI-EX™ Samsung Heavy Industries fabricated the hull - to Ingleside, an impressive learning The Dockwise Swan vessel on its way to the Gulf of Mexico with Exmar’s four-columned OPTI-EX™ hull curve for all parties involved that will benefit Texas, where Kiewit Offshore yard would skid beams onto the vessel’s cribbing future projects, and, ultimately, will help integrate the topsides. An astonishing in a single, continuous maneuver. The push forward the imagined boundaries 87% of the hull’s weight would have temporary sea fastenings were removed of heavy marine transport engineering. to be suspended over the sides of the after arrival at the anchorage where, Dockwise semi-submersible heavy-lift after pre-ballasting, the cargo was finally vessel Swan after initial configurations re-floated from the skid beams and onto were abandoned. Exmar and Dockwise the cribbing. During the Swan’s 16500 conceived the dry-tow transportation nm long journey to the Gulf of Mexico configuration where all four columns that began on October 25, 2008, the were to be suspended over the vessel’s permanent sea fastenings and wooden sides thereby eliminating the torsion cribbing ensured proper restraining of forces in the pontoons and the need for Exmar’s valuable hull. structural reinforcements of the cargo. During the journey, a range of key The exceptional skid beam and data were relayed to the client on a daily cribbing design - engineered by Dockwise, basis by means of a decision support 46 DOCKWISE PO Box 3208 NL-4800 DE BREDA TEL: +31 (0)76 548 41 00 FAX: +31 (0)76 548 42 99 Website: www.dockwise.com LLOG/EXMAR W H O D A T F I E L D C o m p a n y p r o f i l e EXPRO Expro provided subsea test tree, slickline services for Who Dat project Expro has been providing subsea and slickline services for LLOG since 2005, working together on numerous offshore projects and fostering a strong relationship. The company’s experience, expertise and innovative technologies and solutions are some of the reasons for that relationship with LLOG and its Who Dat project. The subsea equipment used on the Who Dat project was one of Expro’s workhorse 10,000 psi systems, and the ELSA 7000 Series subsea test tree (SSTT). This system uses a direct hydraulic control system and has a large bore, enabling the pass through of large tubing hanger plugs. The Expro landing string assembly (ELSA) and subsea test tree (SSTT) is being prepared to be run into a well. New developments for global offshore industry electro-hydraulic subsea control system tion and provides wellbore isolation in the event of a controlled or emergency dis- Expro has over 20 years experience in large bore subsea completions and in- connect of the drilling riser. “It provides deepwater well testing, providing the terventions to be conducted safely in an economical means of providing well offshore industry with cost effective en- water depths up to 10,000 ft. The system control on an anchored vessel during the gineering solutions that meet industry is being developed specifically to meet completion landing and flowback.” The SSTT is an integral part of the comple- (EXPRESS-HP) that allows high pressure standards and client demands. The range emerging demands of the deepwater Expro provided slickline services on the of the Expro landing string assemblies high pressure subsea Gulf of Mexico. Who Dat project that included pulling isola- (ELSA) and subsea control systems (EX- Expro can provide the latest innova- tion sleeves and setting protective sleeves PRESS) are specifically developed to mini- tive technologies and solutions as the for the completion phase, then pulling the mize risk in subsea completion and inter- global oil and gas industry continues to protective sleeve and setting isolation vention operations and achieve secure drill deeper and more complex deepwa- sleeves when the well was complete. well status in the event of an emergency. ter wells around the world. The compa- The company also set hanger plugs as The company also has more than 25 ny’s products, services, experience and needed, with some completions requir- years experience and is a leading global expertise assure that those operations ing setting two hanger plugs, which were provider of mechanical slickline interven- are performed in the most efficient and then tested by creating a tested pressure tion services. Slickline units and cables safe manner possible. containing barrier between the well and are available in a range of styles to meet open water. The Expro Wireline Supervi- customer needs including Zone II rated sor on all Who Dat completions has been units. Surface computer systems record involved in all of LLOG’s well work over and store well information, line history, the past few years, providing continuity maximum pull and depth run for each job. among all of the operator’s projects. As a Expro continues to provide innova- result of this relationship, there were no tive solutions to the offshore industry. equipment failures or missed runs record- The company designed the industry’s ed on any of these wells. first 15,000 psi, 250°F rated large bore LLOG/EXMAR W H O 47 D AT F I E L D Expro 738 Hwy 6 South, Suite 1000 Houston, Texas 77079 Phone: 713-463-9776 Fax: 281-994-1154 Email: [email protected] Website: www.exprogroup.com LLOG/EXMAR W H O D A T F I E47 LD C o m p a n y p r o f i l e FM C T E C HNOLO G IES SUBSEA ON DEMAND a Subsea Alliance in 2008 to enhance the Enhanced Horizontal Subsea Trees (EHXT®) value of their business relationship by Available in 5-inch x 2-inch for 10,000 psi promoting Supply Chain Management and 15,000 psi applications, the EHXT principles in the development of global has the best uptime performance in subsea deepwater assets. The objectives the industry. Options include multiple- of this Alliance are to foster an open tree chemical injection points, modular relationship that is flexible and adaptive downhole chemical injection, surface- to changing needs and evolving technol- controlled subsurface safety valves enhances flexibility and reliability. The ogy; to enhance hardware quality, perfor- (SCSSV), smart-well functions and more. Subsea OnDemand program offers SCM LLOG and FMC Technologies established Subsea OnDemand system manifold mance, overall cost and cycle MKII-series time; to planning controls, with pressure/tem- and forecasting; to enhance perature transducers on the standardization and inventory production and annulus side management; and to encour- and configurable production age safe working practices and IWOCS MQC interfaces. and responsible care for the Options include a maximum 24 environment. multi-pin hydraulic functions improve tree-mounted FMC’s Subsea OnDemand and up to six electrical connec- program – a key element in the tors. Topside controls incorpo- fast-track development of the rate design innovations and Who Dat field – offers pre-engi- re-usable software modules to neered and field-proven equip- meet customer requirements. ment that will give subsea tiebacks and revenue streams a safe and healthy head start. Enhanced Horizontal Subsea Trees (EHXT®) Available Now As the industry leader in sub- Subsea OnDemand reduces field Manifolds and Tie-In Systems sea technology, FMC Technologies knows development time by maintaining an All FMC manifolds and tie-in systems what it takes to deliver reliable subsea inventory of standard configurations, are based on field-proven components systems on an accelerated schedule. including deepwater wellheads, subsea and emphasize FMC’s investment in field-proven inven- trees, control systems, manifolds and efficiency and reliability. The Subsea tory to maximize availability, experience tie-ins, and the experienced personnel OnDemand program uses 5-inch and and knowledge of subsea architecture to install them. FMC’s goal is to make 7-inch valves (manual or actuated) in ensures seamless execution. proven subsea systems available for both 10,000 psi and 15,000 psi pressure quick delivery and installation, reducing ratings and EE+ material trim. Options the time to first oil. include customizing the number of well technologies that slots, MAX or KLV mechanical connec- UWD-15 Wellheads tion systems and a choice of either pile Designed for drilling and production or mudmat foundation. applications up to 15,000 psi working pressure, FMC’s UWD-15 Standard, Rigid Control Systems Lock and Large Bore systems are built FMC’s subsea control systems are for a complete range of shallow and designed to meet the most challeng- deepwater scenarios. ing conditions. Their modular design 48 FMC Technologies 1777 Gears Rd Houston TX 77067 USA Phone: 281 591 4000 Fax: 281 591 4030 Website: www.fmctechnologies.com LLOG/EXMAR W H O D A T F I E L D C o m p a n y p r o f i l e G l o b a l I n du s t r i e s GLOBAL REACH As our customers continue pushing the ects and look forward to assisting LLOG range of new oil and gas discoveries, in achieving a successful outcome for Global Industries stands with them as the ‘Who Dat’ project.” a leading provider of offshore construction and installation services. If you can Expanding Our Fleet name it, chances are we’ve built it. Global has increased the versatility of its fleet, adding dynamically-positioned Deepwater Expertise multipurpose vessels, including new Global has the technology and talent generation DP2 vessels equipped with to meet the offshore industry’s most ROV and mission-specific equipment. complex challenges. Working at depths With a strong focus on technology – up to 3,000 meters (10,000 feet), Global built over many years of innovation that has the in-house expertise to analyze, has become industry standard – Global design and install today’s most challeng- Industries continues to combine exper- ing deepwater systems. tise with ingenuity to create complete subsea solutions. Global Industries, Ltd. is a leading Global maintains offices in North solutions provider of offshore construction, engineering, project management pride in safe operations, ethical business America, Mexico, Brazil, India, the Middle and support services, including pipeline practices, fairness and the highest stan- East and the Asia Pacific region. construction, platform installation and dards of customer service. removal, deepwater/SURF installations, IRM, and diving. Who Dat As quickly as offshore technology Global’s role in LLOG’s Who Dat project progresses, we add capabilities to meet includes installing 19 miles of 14-inch our customers’ emerging needs. Global export oil pipeline, 17 miles of 10-inch attracts exceptional people who bring gas pipeline, 10 miles of 6-inch insulated critical skills and share the company’s rigid flowlines, six flexible risers, nine jumpers and jumper tie-ins, three subsea manifolds and six PLETs. Four Global vessels are doing the work: the 485-foot DLB Hercules, a DP-2 equipped vessel with a crane capable of lifting 2,000 tons; the Global Orion, a DP-2 equipped multi-service vessel; the Olympic Challenger, a 347-foot, DP-2 multi-service subsea construction vessel, equipped with two 200hp Schilling UHD ROVs; and the Chickasaw, a 275-foot reel ship. “We are extremely pleased and proud that LLOG Deepwater chose Global to handle this deepwater project,” says Global’s CEO John B. Reed. “We continue our focus on execution excellence in increasingly challenging deepwater proj- LLOG/EXMAR W H O D A T F I E L D Global Industries 11490 Westheimer, Suite 400 Houston, TX 77077 USA Offices Worldwide Phone: +1-281-529-7979 Fax: +1-281-529-7980 Website: www.globalind.com 49 C o m p a n y p r o f i l e K IE W I T OFFSHORE SER V I C ES Kiewit Offshore Services completes historic offshore production platform LLOG Who Dat semisubmersible platform at the KOS fabrication facility Kiewit Offshore Services’ (KOS) fabrica- floating production system (FPS) Exmar tion experience and dedication to safety had developed. KOS’ scope of work also and quality fostered positive relation- included the lift, set and integration of the ships with two new clients while work- topsides to the hull. KOS completed the ing on the unique Exmar OPTI-EX/LLOG Exmar OPTI-EX project by August 2009. Deepwater Who Dat project. When LLOG Deepwater acquired the In July 2007, KOS began fabricating platform, naming it Who Dat, KOS went the topsides of the first floating produc- back to work to make their preferred tion platform built on speculation – a modifications. Lift and set of the Exmar OPTI-EX topsides onto the hull using the Heavy Lifting Device at the KOS fabrication facility 6,500 ton topsides capable of producing KOS fabricated over 2,000 tons of 60,000 barrels of oil and 50 million cubic structural steel, installed over 27,000 As an OSHA Voluntary Protection Pro- feet of gas per day. Not only was this con- lineal feet of piping on both projects gram (VPP) site, KOS is recognized as cept new to the industry, but the OPTI- combined and installed over 3,000 tons having one of the safest yards in the in- EX was also the first semisubmersible of equipment. dustry, and successful projects like this The upgrades were completed and one provide the proof. the platform sailed to its final location in the Gulf of Mexico on July 1, 2011. Throughout both contracts, KOS and its subcontractors worked several hundred thousand manhours without any significant incidents. In fact, the Exmar Kiewit Offshore Services, Ltd. fabrication yard, Ingleside, Texas 50 OPTI-EX/LLOG Who Dat project was one of the safest projects performed at KOS. Kiewit Offshore Services 2440 Kiewit Road Ingleside, Texas 78362 Tel: 361-775-4300, Fax: 361-775-4433 Website: www.kiewit.com LLOG/EXMAR W H O D A T F I E L D C o m p a n y p r o f i l e Mu s t a n g Topsides experience benefits OPTI-EX™ during all project phases Mustang has a global reputation for deployed. The study also identified and innovation and technical excellence in ranked viable candidates offshore Brazil, the engineering and design of topsides West Africa, Asia and Australia, validating production facilities for many of the Exmar’s intended global use of the facility. industry’s most notable floating deepwater projects. In the past decade alone, Essentially Two Projects Mustang has provided more than 350,000 Since the FPU had no initial field assigned metric tonnes of topsides worldwide, with for its use, the topsides facility needed an equivalent production of 1.5 million to be modularized and extremely flex- BPD oil. Mustang was integrally involved ible, designed for a wide range of water Designing for Specific Use in all project phases, from pre-concept depths, flow line temperatures, oil gravi- With the purchase of the OPTI-EX™ by studies through completion, for LLOG ties, export pipeline length to shore or a LLOG Exploration in mid-2010, the project Exploration’s Who Dat field project. hub facility, and hydrocarbon pressures. became fast track for producing the Who It was scalable in capability to be deploy- Dat field after 1 ½ years of inactivity. Sales Early Viability Defining able for multiple early production oppor- gas metering and custody transfer skids, Mustang’s charge was to design and tunities during its projected life-span. The fit-for-purpose, high pressure production engineer a generic topsides production Exmar-designed deck largely determined separation and dehydration equipment, facility for placement on the deck and the size of the basic process modules and an inlet / HP separation module, and a HP hull designed by Exmar for its OPTI-EX™ the location of quarters, helideck, and pro- gas dehydration skid were designed and deep draft semi-submersible floating pro- cessing equipment in conformity with area added. Gas driven engines were utilized to duction unit (FPU). The first such indepen- classification requirements. operate the 4000 psig discharge pumps and dently-owned facility to be re-deployable, Weight had to be closely estimated and compressor packages. Mustang’s design OPTI-EX™ was ideal for use by multiple allowances monitored for the FPU’s ulti- experience helped the project adhere to operators in marginal fields and on early mate use in a defined field. Deck space and its challenging timetable with quick design production schemes. Mustang’s scope of piping runs were carefully planned to fit changes and updated drawings. work provided conceptual study/pre-FEED, the existing footprint while making accom- FEED, detailed engineering and design, pro- modation for expansion. Close interface Accomplishments curement services and vendor inspections. and 3D software compatibility between The design of the OPTI-EX™ proved to Mustang‘s first assignment during Mustang and Exmar designers, and clear be successful and ready for deployment the concept study/pre-FEED phase was communication with deck (Kiewit) and hull on a fast-track basis. Mustang is proud to determine market viability for the (Samsung) fabricators on weight and struc- of its role in this unique project, providing OPTI-EX™ concept, conducting a market tural support issues were essential. To save technical expertise and innovation that analysis of Gulf of Mexico and interna- space and weight, Mustang eliminated contributed to its success. tional fields with known reserves in pre- large electrical power consumers, resulting development stage and in reasonable in power generated at only two megawatts proximity to hubs or existing pipelines. and 480 volts. This approach reduced pow- The comprehensive study by Mustang’s er control and distribution while eliminating research department determined that medium voltage switchgear. there were a sizable number of prospects Mustang’s massive historical topsides within the proposed water depth, reserve database and its experienced procure- size and operating capacity range in the ment professionals were used to provide U.S. Gulf of Mexico, including the block accurate cost estimates. The design and in Mississippi Canyon where it is to be construction were completed on schedule. LLOG/EXMAR W H O D A T F I E L D Mustang 16001 Park Ten Place Houston, Texas 77084, USA Phone: +1 713-215-8000 Fax: +1 713-215-8506 Website: www.mustangeng.com 51 C o m p a n y p r o f i l e Oc e a n e e r i n g I n t e r n a t i o n a l , I n c . Oceaneering International, Inc. has supported Llog contracts for over ten years leading to the Who Dat project IWOCS Oceaneering is the industry leader in providing rental equipment and service technicians for Installation and Workover Control Systems (IWOCS) used with subsea oil and gas wells. IWOCS allow operators to communicate and control subsea trees during completion, workover, and plug/abandonment job phases. Controls can be direct hydraulic, electrical, or a combination. The critical components of an IWOCS are the subsea umbilical and electric down- ROVs the first priority and a constant focus on all line. When coupled with a topside hydraulic Oceaneering is the world’s largest Work jobs. Contract work is performed using ISO power unit and injection pumps, the umbili- Class Remotely Operated Vehicle (ROV) 9001:2008 quality standards. Each proj- cal and electric downline can provide real operator and the leading provider of ROVs ect integrates specialty subsea services time functionality and monitoring of the tree to the oil and gas industry. Oceaneering for construction; installation; Inspection, and well. employs 250+ Work Class ROV systems Maintenance and Repair (IMR); decom- and more than 2,000 ROV offshore per- missioning and abandonment; and diving sonnel worldwide. work. Experienced project managers coor- Oceaneering IWOCS operates globally from Houston, TX and maintains over 30 complete IWOCS systems. The group also dinate each contract and provide a single supplies other support equipment to assist point of contact. Project teams include with deepwater projects including: engineers who develop the detailed plans • Hydraulic Power Units prerequisite for the fieldwork. Oceaneering’s • Chemical Injection Units Multi-Service Vessel (MSV) fleet ranges from dedicated and • IWOCS Deployment Systems Oceaneering also leads the offshore purpose-built Dive Support Vessels (DSV)s • Calibrated Testing Equipment industry as the largest manufacturer of ROV to the 312 ft Multi-Purpose Service Vessel • Deep Reach Winches systems. The company’s ROV fleet includes (MPSV) Olympic Intervention IV, equipped • Launch and Recovery Systems (LARS) 2500-3000m rated Work Class systems, with two Oceaneering ROVs. The alliance • Umbilical Distribution Boxes 4000m rated Millennium Work Class systems, with Fugro Chance offers the industry’s • Flying Lead Deployment Frames and 8000m rated Ultra Deepwater systems. best-in-class ROV & Survey services team. • High Pressure Testing Equipment • Dive Carousels and Pallets for Steel Tube Flying Lead (STFL) Deployment Oceaneering’s ROV workforce is highly trained. The company’s ROV Training Live streaming video of projects is available on request. Program invests over $10 million per year preparing employees for all aspects of ROV operations and maintenance. Subsea Projects Oceaneering International, Inc. executes marine projects in the Gulf of Mexico through offices in Houston, TX. Safety is 52 OCEANEERING International, Inc. 11911 FM 529 Rd Houston, TX 77041-3000 Phone: 713-329-4500 Fax: 713-329-4951 Website: www.oceaneering.com LLOG/EXMAR W H O D A T F I E L D C o m p a n y p r o f i l e RS P l a t o u A BROKER’S CRITICAL ROLE The call came in April, 2010. Did we know of a production platform for sale or lease in the deepwater Gulf of Mexico? We did. “It was the call that brokers work for,” says Bob Donley, Platou USA’s Houston president. “A drilling engineer from LLOG sion of the business… 8 Exploration wanted to know if we knew where to find a deepwater production unit. As brokers working many markets around the world, we were aware of all the available equipment that met the requirements.” Platou introduced the two parties and EXMAR engineersOSLO made a brief presenta188 employees tion of the capabilities of their company’s Established 1936 EARLY WORK WITH EXMAR MOSCOW Platou USA began working with EXMAR 4 employees platform ready to go would save potential buyers or lessees the long lead time for OPTI-EX™ semisubmersible platform to Established 2004 new construction. in 2005, when the company expressed an LLOG.ABERDEEN A date was set to inspect it. interest in building a deepwater production 15 employees “After several hours, the LLOG inspecAcquired 2008 facility on spec – a bold move at the time. “Once the project began, our role was to continue marketing the unit to the indus- tion team knew that the unit and process “Our initial role was to assist in the try,” Donley says. “We continued searching system LONDON would fit their needs,” Donley development of the project,” Donley for a customer with the right development says. “EXMAR’s flexible and expandable Established 2009 explains. “We helped screen optimum unit requirements, timing, water depth, and pro- design allowed deck room for the testing capabilities that would appeal to potential cess capability needs throughout the con- and metering skids and other GENEVA equipment 18 employees that LLOG required.” lessees. Determining possible deployPIRAEUS struction and delivery phases of the project.” 5 employees ment locations was an important part of 10 employee Established 2008 the screeningEstablished process.”2009 Established 2007 GLOBAL REACH Discussions began at once, and Platou’s SHANGHAI 4 employees experienced team facilitated the transac- The traditional structure for a project RS Platou, established in 1936, is a leading tion by acting as a conciliator during the like the OPTI-EX™ would have been to international brokerage firm and invest- Expansion of theACCRA business… negotiations. In just 15 months from the design and build the unit for a particular ment bank. Platou delivers chartering, initial telephone call, the deepwater plat- field, but that process typically takes years purchase, sale, and contracting services form was installed in LLOG’s Who Dat field. Established 2010 to complete. Having a generic deepwater to the offshore industry worldwide. The 1 employees OSLO MOSCOW 188 employees 4 employees Established 1936 Established 2004 ABERDEEN 15 employees RIO DE JANEIRO 5 employees SINGAPORE company’s investment bank also provides 62 employees corporate financial advisory services for Established 1989 Acquired 2008 its global client base. Platou’s 340 employees staff offices in Singapore, Aberdeen, Established 2008LONDON 18 employees London, Houston, Moscow, Accra, Shanghai, CAPE TOWN Established 2009 Geneva, Piraeus and Rio de Janeiro. 3 employees GENEVA PIRAEUS Established 2011 10 employee 5 employees Established 2008 SHANGHAI Established 2009 4 employees Established 2007 HOUSTON 22 employees Established 1978 RS Platou ACCRA 1 employees Established 2010 SINGAPORE 62 employees Established 1989 RIO DE JANEIRO 5 employees Established 2008 Expansion of the business LLOG/EXMAR W H O D A T F I E L D CAPE TOWN 3 employees Established 2011 363 N Sam Houston Pkwy E Suite 125 Houston, Texas 77060 Phone: 281-260-9980 Fax: 281-260-9981 Website: www.platou.com 53 Company profile C o m p a n y p r o f i l e K NI G H T OIL T OOLS Knight Oil Tools provides full range of quality equipment and services to the industry Knight Oil Tools, the world’s largest privately ing and management, and surface equipment held rental tools and fishing services company, removal and salvage. Safety and environmental concerns per- is celebrating 40 years in business in 2011. The company’s contribution to the Who meate the company’s operations in each Dat field included rental of 19,500 ft. of 5 ½-in. project and region in which the company O.D. Grade S 24.70# drill pipe with HT 55 con- operates by identifying the safety needs of its nections and TD-8 casing-friendly hard band- clients and employees and providing funda- ing applied. QA and maintenance procedures mental safety training and task-specific train- were conducted and each joint of drill pipe ing through its Advanced Safety business unit. was hard banded and inspected by Knight Knight Oil Tools’ commitment to qual- Oil Tools’ Tri*Drill Services business unit to services including open- and cased-hole fish- ity equipment and personnel and its highest ensure that they met all LLOG specs. Knight ing, casing exit systems, cutting and milling regard for safety results in successful, efficient Oil Tools also supplied crossover, pump-in services and thru-tubing services. and cost-effective operations for every project. subs and handling equipment for the Who The Manufacturing business unit provides Dat project. All handling equipment was pipe cleaning machines, thread protector and inspected and certified using Knight Oil Tools’ parts cleaning machines, pipe conveyors and proprietary KIP™ quality assurance inspec- handling equipment, pipe straighteners and tion program prior to shipment. threading services. Knight Oil Tools In addition to rental tools and services, Well Services provides plug and abandon- Knight Oil Tools’ Fishing Services business ment services, removal of wells and struc- unit offers a complete line of fishing tools and tures, sidetrack preparation, project engineer- 2727 Highway 90 East Lafayette, LA 70508 Phone 337.233.0464 Website www.knightoiltools.com Company Profile Index BAKER HUGHES 54 44 KIEWIT OFFSHORE SERVICES 50 DOCKWISE46 KNIGHT OIL TOOLS 54 Exmar Offshore Company Mu stang51 40 EXPRO47 Oc eaneering International, Inc. 52 FMC TECHNOLOGIES 48 RS Platou 53 Global Industries 49 LLOG/EXMAR W H O D A T F I E L D LLOG/EXMAR W H O D A T F I E L D 55