Vessels that use emission-reduction technology

StatoilHydro has awarded contracts for four new supply vessels for the Norwegian continental shelf.

The company used this opportunity to obtain another gas-powered vessel. The total value of the contracts, including options, is almost NOK3 billion (US$579.4 million). The vessels will be delivered in the period 2008-2011. Two of the vessels will be delivered by Remøy Shipping, whereas the two other ones will be delivered by Farstad Shipping and DOF Management. All of the four vessels employ a new technology that reduces the emissions to the air. Three of the vessels have a diesel-electric solution with a catalyst, which reduces the emissions of NOx by about 90 percent compared with ordinary diesel vessels. The vessel running on liquefied natural gas, LNG, in addition reduces the emissions of CO2 by some 20 percent. This is StatoilHydro's fourth contract for a gas-powered vessel. StatoilHydro is so far the only company in the world that uses gas vessels for offshore operations.

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EOG sees big BC gas gains in 2011

EOG Resources chief executive said that the Houston-based independent oil and gas company would not log big production gains from a giant Canadian gas find until 2011.

“For substantial volumes for EOG to come from this play, pencil in 2011,” CEO Mark Papa told investors at the Bear Stearns Global Oil and Gas Conference. Last month, EOG said it may have discovered one of the largest accumulations of natural gas in Canada with its Horn River Basin play. Drilling on its acreage in northeastern British Columbia may have uncovered 6 trillion cubic feet of natural gas, the company said. First sales are expected this summer, but output will not rise quickly, due to the find’s remote northern location and the need to build up infrastructure. Wells are expected to cost an average of about $10 million each, Papa told investors. Still, Papa said the Canadian resource play has the potential to be as big as the Barnett Shale in North Texas, but the rate of return for the gas will be lower, due to the find’s location far away from natural gas market centers.

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Saudi Aramco contracts Hercules' newly acquired rigs

Hercules Offshore has signed contracts to provide Saudi Aramco with two jackup drilling rigs for three-year terms plus one-year fixed price options at the same rate.

The contracts are for the Hercules 300 and Hercules 261, currently known as High Island I and High Island VIII. Hercules 300 was acquired from Transocean on March 14, while the closing on the purchase of Hercules 261 from Transocean is expected on the completion of its current contract commitment in May. Hercules Offshore is negotiating contracts for the dry tow transportation of the rigs from the Gulf of Mexico to a shipyard in the Middle East in the second quarter of 2008. There, the rigs will undergo 90 to 120 days of contract preparation work. The contracts with Saudi Aramco will begin around Sept. 30. Potential revenue from the three-year contracts totals around US$151 million for Hercules 300 and US$140 million for Hercules 261, excluding payment to the company of reimbursable expenses and a total of around US$25 million for mobilization of the two rigs. Hercules Offshore CEO and President Randy Stilley said, "The acquisition of these high quality rigs, coupled with their redeployment to the Middle East, reflects the culmination of another key step in the execution of Hercules Offshore's strategic plan. We are extremely pleased to establish a relationship with one of world's largest operators, Saudi Aramco. These contracts, together with our recent contracts with ONGC in India, reaffirm our position as one of the world's leading shallow water offshore drillers."

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Cosco Busan pilot to face charges under Clean Water Act

The pilot of the container ship Cosco Busan that crashed into a bumper of the Bay Bridge and spilled approximately 58,000 gallons of oil into the San Francisco Bay in November has been charged with criminal negligence and violating environmental laws.

Under the Clean Water Act, as amended by the Oil Pollution Act of 1990, John Joseph Cota has been charged with the negligent discharge of oil and the killing of migratory birds. The oil spill has been linked to the death of about 2,000 sea birds, including brown pelicans, a federally endangered species, and marbled murrelets, which are considered endangered by California. According to court documents, Cota failed to use the ship’s radar, failed to consult on the ship’s course with the Chinese captain and crew, failed to verify the vessel’s position, and piloted the Cosco Busan at an unsafe speed as it left the port of Oakland in a heavy fog. If convicted, the pilot faces up to 18 months in jail and a $115,000 fine.

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