Nov. 2000 Vol. 221 No. 11  Offshore

Robert E. Snyder,  Editor

Stronger UK activity, but bird problems persist

A press release from the UK Department of Trade and Industry predicts better times via increased oil company spending on the UK Continental Shelf. BP and Shell are to boost their annual rate of investment in oil/gas operations on the UKCS, where new technologies in exploration and extraction are said to be making previously marginal prospects economically viable.

Shell UK has led the way with confirmation that it is to increase capital spending on exploration by 50% in the North Sea, meaning its annual investment in the area will rise to £830 million ($1.2 billion), to be used to "open up" new production and finance further exploration. This could involve six developments next year.

Offshore oil/gas operations in UK waters are entering a new phase, according to industry sources; and Shell’s renewed interest has been followed by BP’s $3.9 billion commitment to growth of its North Sea activities. It announced plans at a celebration of 25 years’ production from its Forties field, which marked the real beginning of full-scale development of the UK offshore.

BP’s UK oil group will boost its investment in the UKCS by $900 million, to include Claire, Magnus and, likely, the Bruce / Harding field area. BP is also considering development of a satellite to East Foinaven and acquisition of 4-D seismic technology. It also plans to establish a fiberoptic communications link between Scotland, the Central North Sea and Norway, and to provide new sources of electrical power to offshore fields from onshore generation.

UK Energy Minister Helen Liddell noted, "Eighteen months ago, the prospects for North Sea oil/gas seemed bleak, but a new spirit of cooperation between government and industry, and between large companies and smaller enterprises, has come out of it."

Largest SCORE increase in eight years. Global Marine reported that the company’s worldwide SCORE (Summary of Current Offshore Rig Economics) for August 2000 increased 6.6% over the previous month. The sharp increase is supported by improvements in every major market. And increasing international activity – particularly in West Africa and the North Sea – is translating into higher dayrates for those regions, the company noted. However, SCORE ratings still remain below those of five years ago.

SCORE compares the profitability of current MODU rates to those at the 1980 – 81 peak, when speculative new rig construction was common.

Worldwide, SCORE for all types of rigs increased 6.6% to 33.2%, from 31.2% in July – a 44.4% increase from August 1999, but a 23.9% decrease from the same period five years ago. The U.S. Gulf of Mexico increased 7.2% to 38.4% from July’s 35.8%; the North Sea’s 24.6% is a 5.5% increase from July; West Africa’s 38.9% increased 9.4% from July; and Southeast Asia’s 32.6% is 0.4% above the prior-month level, 6.9% above August 1999, and 18.6% below five years ago.

Jackups increased 6.3% from July – the 41.5% SCORE is up 80.6% from a year ago, but remains 4.2% below its level five years ago. And August’s 24.6% for semis is a 10.8% increase from July – a 7.3% increase from one year ago, but still 44.6% below five years ago.

Birds vs. helicopters. The offshore industry has still not solved the major problem of bird droppings on platform landing pads, according to a report in the August issue of Offshore Research Focus. A recent study undertaken by the BOMEL Consortium, under the Technical Services Agreement, on behalf of the UK Health and Safety Executive, has looked into the effects and consequences of bird guano infestations and their effects on offshore helicopter operations.

With help from operators and helicopter companies who shared first-hand experiences of seabird / guano problems on normally unattended installations and the impacts on flight operations, a comprehensive report has been published covering all the UKCS operating areas. The study concluded that the long-standing problem has not changed to any extent over the years; and when an installation is selected and colonized by seabirds, a pragmatic approach is to simply accept that the irresistible forces of nature are at work. Operators should then manage the problem properly to minimize the effects.

Helicopter bird strikes and interference are always going to be potential hazards. Over the years, operators have installed and tested several types of exclusion devices, but these have largely failed to obtain a long-term solution. Routine / frequent reporting of helideck conditions is fundamental to managing the problem of obscured helideck markings and lighting problems – pilots should routinely report such conditions when flying near any unmanned platforms.

For further information, contact: John Burt, Tel: 44 (0) 1483 502 824, E-mail: Johnburt@compuserve.com.

Subsea tree installations. The Offshore International Newsletter of September says the number of subsea completions planned or under development has barely changed from one year ago. In 1999, 770 trees were planned, under development, or tentatively scheduled by operators worldwide for installation in 2000 and beyond. Today, 769 subsea trees are counted. And 2000 looks like it will be on par with last year’s actual 171 subsea tree installations.

Corrections. In World Oil’s August Deepwater Technology supplement (in the interview article with Antoine Serceau, Elf Exploration Angola) the statement was made on page 6 that, "Concerning the FPSO, the hull was completed on schedule by Hyundai Heavy Industries (HHI) in South Korea and delivered to Fos-sur-Mer in France in November 1999." To be correct, the words "to Fos-sur-Mer in France" should be deleted.

And in the August issue, on page 134 (in the article by British-Borneo and Newpark Drilling Fluids) the plots in Fig. 1 are mislabeled. The red line (left) should be Pore pressure; the green line (middle), 400 gpm DeepDrill; and the blue line (third from left), 400 gpm synthetic. In Fig. 2, page 135, the green line should be Calculated MME, and the purple line PWD-MWE. Sorry for any confusion – and thanks Newpark for pointing out these errors.