EMAS Eyes Big Opportunity in the Subsea Sector

In his company’s 2013 annual report, Mr. Koh Poh Tiong, chairman of Singapore-based Ezra Holdings, recently commented on his company’s growth in the subsea sector:

Since coming on as a relatively new entrant to the global scene in terms of subsea contracting work, we have progressed from less complex subsea work from previous years to now more complex Subsea Umbilicals, Risers and Flowlines (SURF) and full Engineering, Procurement, Construction and Installation (EPCI) projects. The value of these contracts has also been growing, and we are now bidding for project of value in excess of USD $200 million. Our contract wins in the subsea sector have contributed significantly towards our achieving more than USD $1 billion in revenue for FY2013.

Ezra’s revenue for 2013 increased by USD $277.9 million, a 28% jump over FY2012 figures which was largely driven by USD $236 million of  increased revenue seen by the company’s Subsea Services Division.  Ezra’s Offshore Support Services and Marine Services Divisions saw gains of US$10.1 million and US$31.8 million, respectively.

Group CEO and Managing Director Mr. Lionel Lee adds that projected capital expenditures are likely to support growth in the subsea sector, he adds:

“Subsea capital expenditure is expected to rise from some US$19 billion in 2012 to US$40 billion in 2017. Also, according to Douglas-Westwood, 2012-2016 will see some US$367 billion of investment on offshore infrastructure, compared with US$254 billion the preceding five years.

We will see a record amount spent on in-field tiebacks to the tune of US$140 billion.”

Building on their 2013 growth and contract wins in January, EMAS, a subsidiary of Ezra, has announced $125 million in new contracts today spread between the South China Sea and West Africa.

EMAS AMC, the subsea-focused arm of EMAS, added to its backlog with the award of a deepwater pipeline project in the South China Sea, plus the associated flowline and PLET (Pipeline End Terminations) installation.  The work is to be performed in water depths of up to 1,400 meters according to EMAS.  Offshore West Africa, EMAS AMC will be conducting FPSO mooring repair work and both projects are expected to begin in Q1 2014.

EMAS Marine gained contracts to conduct offshore support work in Malaysia, Thailand and Australia utilizing two Anchor Handling Tug and Supply vessels and one Platform Supply Vessel.

“These are important wins for us as it strengthens our presence in West Africa and growing leadership in Asia. The subsea project in the South China Sea is also a clear recognition of the deepwater pipelay capabilities of our subsea team and our key assets here in Asia,” commented Lee.

“The Asia Pacific region is an important market for us with offshore support, subsea construction and engineering activities expected to continue picking up as oilfield operators venture further offshore. With our strong roots here in Asia, we are well positioned to compete for the many upcoming projects in the region.”
EMAS reported strong top-line growth with operational profitability in 1QFY14 and the Group’s orderbook currently stands at above US$2 billion.

In a separate announcement, the Group’s associated company, EOC Limited, announced a 5-year US$100 million award for the Lewek Conqueror, a hook up and maintenance accommodation barge, for work offshore Brunei with an undisclosed oil major.

Technip Awarded “Major” Subsea Contract Off East Borneo

Technip announced today the award of a “major” subsea contract today, one valued between €500 to €1,000 million, by ENI Muara Bakau B.V. for the Jangkirk project offshore eastern Borneo.

ENI Muara Bakau is the operator of the Jangkrik project located in the Muara Bakau PSC working area off the Mahakam Delta, the largest river of eastern Borneo (East Kalimantan) in the Makassar Strait.

Technip’s contract includes the engineering, procurement, commissioning and installation of:

• 36 kilometers of flexible risers and flowlines with diameters ranging from 4″ to 14″,
• 195 kilometers of pipeline with diameter ranging from 4″ to 24″,
• subsea equipment which includes mid-water arch and flowline end termination.
• 51 kilometers of umbilicals, five manifolds and seven subsea isolation valves and associated flying leads

In addition, the project includes the engineering, procurement and construction of an onshore receiving facility including pig traps, metering systems and utilities.  The produced gas from the field will be routed to Bontang LNG plant and is scheduled to be completed in the first quarter of 2017.

The flexible pipes will be manufactured at Technip’s Asiaflex Products plant in Tanjung Langsat, Johor, Malaysia. Technip’s S-Lay and heavy-lift vessel, G1201 and its multipurpose installation and construction vessel, the Deep Orient, will be used for the installation.

Murphy Oil Corporation Announces First Oil at Siakap North-Petai and Updates Progress at Dalmatian

Murphy Oil Corporation MUR announced that first oil production from the Siakap North-Petai (SNP) development offshore Malaysia commenced on February 27, 2014.

The SNP field, operated by Murphy with a 32 percent working interest, is located offshore

Malaysia in a water depth of approximately 4,400 feet. The overall field development plan

consists of eight producing wells and five water injection wells developed as a subsea tie-back to the Kikeh Floating Production Storage and Offloading (FPSO) vessel. Initial operations commenced with production from four oil wells.

Peak gross production from the field is expected to reach 35,000 barrels of oil per day

in mid-2014. The unitized field combines the discoveries at Siakap North in Block K with Petai in the adjacent Block G. Murphy's partners in the development are PETRONAS Carigali, Shell, and ConocoPhillips COP +0.17% with the latter two partners each holding a 21 percent working interest.

In the Gulf of Mexico, progress on the Murphy operated Dalmatian subsea development is moving forward to plan with the flowline for the first completion installed along with the control umbilical for the entire field. First production is scheduled late this month from the natural gas/condensate producer with the second well to follow later in the third

quarter which is consistent with the Company's production guidance stated at the last earnings call.

Roger Jenkins, President and Chief Executive Officer, commented, "We are pleased to achieve first oil at the Siakap North-Petai development. This field, along with our other oil developments offshore Malaysia and Dalmatian in the Gulf of Mexico, are all key components of our 2014 production growth profile."

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of the events forecasted in this press release

not to occur include, but are not limited to, a deterioration in the business or prospects of Murphy, adverse developments in Murphy's markets, or adverse developments in the U.S. or global capital markets, credit markets or economies generally. Factors that could cause actual results to differ materially from those expressed or implied in our

forward-looking statements include, but are not limited to, the volatility and level of crude oil and natural gas prices, the level and success rate of our exploration programs, our ability to maintain production rates and replace reserves, political and regulatory instability, uncontrollable natural hazards and a failure to execute a sale of the U.K.

downstream operations on acceptable terms. For further discussion of risk factors, see Murphy's 2013 Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements.

Concern Grows Over Rising Piracy Off West Africa

Grey, sleek, bristling with massive cannon and an assortment of machine guns, the French navy's Commandant is well-equipped to patrol Africa's most dangerous stretches of ocean. Vessels like it played a key role in curbing attacks off the coast of lawless Somalia, which saw a spate of cargo ships hijacked and ransomed for months even years.

But with attacks off the Horn of Africa in decline, the Birot is now needed off the continent's western coast in the Gulf Guinea, as experts call for regional navies to shoulder more of the burden.

“It’s the place where there's the most oil platforms", which means lots of boats travelling between land and the installations, said the Birot's captain Lieutenant Commander Yves Le Goff.

“It’s a good place to be a pirate," he told AFP. Many of the pirates targeting ships on the high seas come from the Delta in southern Nigeria, where indigenous groups are demanding a greater share of the region's oil wealth.

While hostage takings occur occasionally, Gulf of Guinea pirates prefer to board ships, steal their fuel or cargo and rob the sailors. The International Maritime Bureau said West  African piracy made up 19 percent of attacks worldwide last year, with Nigerian pirates accounting for 31 of the region's 51 attacks -- the most since 2008. At the same time, piracy off the Horn of Africa was at its lowest since 2006 and down more than 90 percent from its peak in 2011. The Birot and others like it have been patrolling the Gulf of Guinea since 1990 to help French nationals and merchant vessels in distress as well as train local navies.

"The French Operation Corymbe is by far the most important operation, as it has at numerous occasions intervened in hijacking situations or supported after the vessels' release," Hans Tito Hansen, the managing

director of a maritime consultancy, Risk Intelligence, said in an email. The French military intervened after the oil tanker Energy Centurion was hijacked off Togo in August 2012 and again when the French ship Adour was seized off the same country in June, he added.

Since the frigate left France in January and steamed south to patrol the waters between Senegal and Angola, there have already been approximately seven cases of piracy in the Gulf, said Le Goff. The Birot recently spent four days in port in Ghana, where it joined up with British vessel HMS Portland and Ghana's GNS Garinga for manoeuvres off its coast. Le Goff said many of West Africa's navies are young, ill-equipped and unable to cooperate with neighbouring

navies, hindering their ability to respond to pirate attacks. "These are all countries turned inland," he added. "They haven't developed their navies." Ghana is one of the better equipped local navies and was able to quickly mobilise its ship after a sudden change in the plan for the exercise, the commander explained.

Few pirate attacks have occurred in Ghana's territorial waters, which the Garinga's commander Lieutenant Joseph Tenzii attributed to Ghana's constant patrols.

"We send out a signal to the bad guys that we are always there," he said. But despite having a fleet of recently built patrol ships, Tenzii said Ghana's navy lacked some of the capabilities of western fleets, such as helicopters to move sailors onto other ships. Terry McKnight, a retired rear admiral in the US Navy who led a task force off Somalia, said West African countries were loath to allow international navies to patrol in their territorial waters. "You will never see the number of coalition forces down there off the west coast of Africa," McKnight said. Le Goff says that it was unlikely that pirates would even put up a fight against his well-armed boat. Instead, he sees his mission as an opportunity to train local forces to defend their own coasts -- and to act as a deterrent. "Here, we are not Somalia. There are states, they have laws," Le Goff said. "The main point here is to be present at sea." 

UNITHAI Shipyard Expands for Growing Offshore Demand

Bangkok: Thailand’s Unithai Shipyard and Engineering has expanded operations to support the growth of offshore demand, opening a new branch in offshore hotspot Songkhla province to supplement the shipyard at Laem Chabang.

 

The new branch is equipped for offshore operations including ship repair, warehousing, berthing, and workshops. It comprises a 60-metre berthing quay, 800-square-metre covered warehouse, and 300-square-metre area designated for storing hazardous materials.

 

Unithai Shipyard chairman, Arthit Pratoomsuvarn, commented: “With our competent manpower and excellent equipment, Unithai Shipyard’s new branch is ready to provide customers with temporary and afloat repair services. The facility will also be designated as a marketing office for vessel owners inquiring about drydocking at our Laem Chabang yard

6th Annual Offshore Support Vessels

IBC Asia is once again bringing you the flagship event of the OSV Global Series, the 6th Annual Offshore Support Vessels Conference in Singapore. 

The OSV Conference has shepherded industry through cyclical changes over the years. This is where we hear it first, and hear it directly from the leaders of the industry. We are able to understand what to expect in the market, and hear strategies of the largest vessel owners, builders and charterers. 

For the 2014 Offshore Support Vessels Conference, we will bring to you new faces, an interactive and engaging conference format, as well as leading industry players from Asia and beyond. 

Contact Details: 
Email: register@ibcasia.com.sg 
Telephone: +65 6508 2401 
Fax: +65 6508 2407 
Mail: IBC Asia (S) PTE LTD, 111 Somerset Road, TripleOne Somerset #10-06 Singapore 238164

6th Annual Offshore Drilling

IBC Asia’s 6th Annual Offshore Drilling 2014 event will provide insight on the latest market trends, investment opportunities, advanced rig designs of MODUs, operational challenges and new technical solutions in the offshore drilling space. This is a must-attend event for the global offshore drilling sector! 

Contact Details: 
Email: register@ibcasia.com.sg 
Telephone: +65 6508 2401 
Fax: +65 6508 2407 
Mail: IBC Asia (S) PTE LTD, 111 Somerset Road, TripleOne Somerset #10-06 Singapore 238164