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Archive for the ‘Offshore Energy – General’ Category

Karoon Energy, an Australian company, has entered the Gulf of Mexico in a big way by acquiring an interest in the Who Dat field (winner of BOE’s best field name award!) from LLOG. For more information on the acquisition, see Karoon’s slide at the end of this post. The full presentation is here.

To learn more about the cultural importance of ‘Who Dat,’ see the youtube clip below, or read this article. For more in-depth ‘Who dat’ history, this wiki page is quite good.

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An excellent compliance and incident update by Jason Mathews is attached. BSEE’s focus on risk assessment, compliance and incident trends, high potential near-misses, medivac capabilities, hot work safety, lifting operations, and gas releases is encouraging. Good work by the folks in BSEE’s Gulf of Mexico Region.

Observations:

  • Zero 2023 occupational fatalities through Q3. Hoping this holds through the end of the year and beyond.
  • INCs/component are down but INCs/inspection are slightly higher. This may imply a relative increase in the inspection of high component deepwater facilities.
  • No. of hours worked is increasing; good sign for the offshore program.
  • Hand and finger injuries are driving up the injury count.
  • Well control incidents are stable at a low level.
  • Improved fire data help facilitate risk assessments
  • No YTD explosions
  • No. of collisions is down
  • 10 YTD spills> 1 barrel (total volume not specified)
  • Some evidence of decline in lifting incidents in Q2 and Q3
  • Gas releases are up (aging facilities, decommissioning related?)

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Whale FPU; Source: Boskalis

Lars Herbst noted another endangered whale sighting by the US Coast Guard. Unlike their erroneous Rice’s whale report in September (still waiting for their mea culpa), the Coast Guard has gotten this one right. The 25,000 ton Whale is pictured above.

Whale’s species is indeed endangered with the most serious threats coming from a faraway place on the Potomac River. The “newborn” Whale is one of only 15 of its species in the Gulf of Mexico. The entire platformus deepis genus numbers only 59, but their importance to society is enormous (read more).

Perhaps the wise people who control our offshore lands will do more to encourage and support these floating behemoths. Unfortunately, their 5 year management plan is not encouraging in that regard.

More about Whale

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As a result of the order issued by the United States Court of Appeals for the Fifth Circuit on Nov. 14, 2023, the Bureau of Ocean Energy Management (BOEM) has scheduled Lease Sale 261 for Dec. 20, 2023.

The Gulf of Mexico oil and gas lease sale was originally scheduled for Sept. 27, 2023, and later scheduled for Nov. 8, 2023, in response to judicial orders.

Pursuant to direction from the Court, BOEM will include lease blocks that were previously excluded due to concerns regarding potential impacts to the Rice’s whale population in the Gulf of Mexico. BOEM will also remove portions of a related stipulation meant to address those potential impacts from the lease terms for any leases that may result from Lease Sale 261.

A Final Notice of Sale will be published in the Federal Register on Nov. 20, 2023, and will be available for public inspection on Nov. 17, 2023. 

BOEM will live stream the opening of bids at 9 am CDT on Dec. 20, 2023. All terms and conditions of the lease sale are listed in the FNOS. For more information, go to: www.boem.gov/sale-261.  

BOEM

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BSEE shouldn’t have to issue guidance about helicopter loading precautions that every worker and visitor should be taught before going offshore, but apparently they do. See the safety alert that is attached below.

In this alarming near-miss event, a helicopter was stationed on the facility’s helideck and a crew member approached the aircraft from the rear, entering the rotor arc area before the rotor blades had come to a complete stop. This unsafe action posed a significant threat to the safety of all personnel involved. An offshore helideck assistant repeated the unsafe behavior by approaching the helicopter from the rear, entering the vicinity of the tail rotor, and positioning themselves within the main rotor’s danger zone immediately after the helicopter had landed on the facility’s helideck.

Meanwhile, we are still awaiting the final report on the tragic crash at the West Delta 109 A platform last December. Why is this taking so long?

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The sale could be held sooner. However, since BOEM asked for 37 days, I’m assuming that the sale will be on December 21.

In the 70 year history of the oil and gas leasing program, this will be the sale date that is closest to Christmas. Yet another major milestone for the offshore program! 😀

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Order is pasted below and attached.

IT IS ORDERED and ADJUDGED that the Intervenors’ appeal is DISMISSED. As for BOEM’s limited appeal as to the timing of the sale, we hereby AMEND the district court’s preliminary injunction only to the extent that the deadline for conducting Lease Sale 261 shall now be thirtyseven days from the date of the issuance of the mandate in this appeal.
IT IS FURTHER ORDERED that each party bear its own costs on appeal.

Background information and related posts.

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Today, the 5th Circuit Court of Appeals heard oral arguments in the appeal of the District Court’s injunction against the Rice’s whale tract deletions and operating stipulations for Sale 261.

If you want to listen to a recording of these arguments, you can do so at this link. The hearing was brief – only about 45 minutes.

Judging by the comments, it sounds like the Court will reach a decision soon. The Department of the Interior is asking for 37 days after the ruling to organize and hold the sales. The industry attorney seemed comfortable with that, so the sale should be prior to Christmas.

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Walton-Morant license

For the past 2 years, BOE has been following the news releases on the Walton-Morant license offshore Jamaica. While the updates from United Oil and Gas are consistently upbeat, a repeating theme has been the need for more time to secure a partner and prepare for exploratory drilling.

Per the most recent update (below), United announces that they have identified a “preferred potential partner” and are seeking an extension on their license. So far, we have only heard from United. As the expiration date of the license approaches, an update from the Jamaican government’s perspective would seem to be appropriate.

The Company is currently engaged in discussions with a preferred potential partner that has been identified through the farmout process, to participate alongside United in the Walton Morant Licence in Jamaica. Furthermore, the Company is engaging with the Jamaican authorities to secure an extension to the current licence period which expires at the end of January 2024, so as to provide sufficient time to progress additional technical work on the block to support the drilling of an exploration well. Additional updates on both the farmout process and licence extension will be provided in due course.

We are encouraged by the continued progress in relation to the farmout process in Jamaica, as we look to unlock the material value contained in this block and deliver value to our stakeholders, including the people of Jamaica. We are entering a critical stage in the farm-out process and will provide an update to the market as this progresses.

United Chief Executive Officer, Brian Larkin

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converted semi-submersible initiates production at the Argyll field

JL Daeschler, a pioneering subsea engineer who lives in Scotland, has fond memories of his interactions with Fred and Ferris Hamilton, the brothers whose company was the first to produce oil in the UK sector of the North Sea (1975). Their small company aced the super-majors by initiating production at the Argyll Field with subsea wells and the Transworld 58, a converted semi-submersible drilling rig. Their rig conversion was an early predecessor to the modern floating production units that have become the surface facilities of choice for deepwater development.

JL recalls that Ferris and Fred took time to discuss any problem with any employee. Should there be arguments, they were often followed by more relaxed discussions about sailing, cars, cooking, and other topics of mutual interest. The brothers would travel from Denver for the annual Christmas dinner in Aberdeen, and invited everyone from the warehouse crew to the production manager. There was a great sense of community among the employees and contractors.

As JL notes, there were no satellite positioning systems, and real time communications with the rig were short and limited to the normal marine radio channels. This was a remarkable era of achievement for the North Sea and the offshore industry, as operations expanded and technology advanced to support them. I have much respect for these offshore pioneers and their contributions to societies around the world.

Related articles:

British Secretary of State for Energy Tony Benn, center, with Frederic Hamilton and Captain Harry Koutsoukos opening a valve to release the first oil from the North Sea into the BP refinery on the Isle of Grain in 1975.

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