Statoil ASA (OSE: STL, NYSE: STO, 57%), as the operator and its partners Petoro AS (30%) and ExxonMobil E&P Norway (subsidiary of Exxon Mobil Corporation (NYSE: XOM), 13%) submitted Svalin field development plan to the Ministry of Petroleum and Energy in Norway on Friday. The development solution is a tie-back to Grane platform, which lies about six kilometres south-west at a depth of ~125 metres. The estimated investment is 4.5 billion NOK. Svalin M discovery will be producing through a well drilled from Grane platform while Svalin C will have a six-kilometre long subsea flowline connection. The estimated startup is in late 2013 – 2014 with the aim of daily aggregate production of 100 000 boe by 2014.
Svalin field, which was discovered originally in 1992 (Svalin C) with further discoveries in 2008 (Svalin M), (license PL 169) is located in Block 25/11 in the North Sea between Grane and Balder fields. It is estimated to contain 75 million boe (12 million standard cubic metres) in similar quantities in the two structures. Aker Subsea AS, the subsea group of Aker Solutions (OSE: AKSO) has been given the contract for subsea production system and pipeline where as marine operations are to be performed by Subsea 7 (OSE: SUBC).
Grane platform is a traditional fixed jacket with 40 well slots and has thus far been serving Grane oil field which has been producing since 2003 and has an estimated field life of 25 years with reserves up to 700 million boe. There will be some modifications to enable Grane platform to handle gas from Svalin. The Svalin development will mitigate the decline of oil and gas processed on the platform.
Showing posts with label Subsea. Show all posts
Showing posts with label Subsea. Show all posts
Sunday, 17 June 2012
Saturday, 16 June 2012
Veripos spin-off from Subsea 7 agreed by Oslo Børs
The Board of Oslo Børs announced this week, that it will allow Veripos Inc. to list on Oslo Børs or alternatively on Oslo Axess subject to certain conditions with ticker VPOS. The planned listing is to be done in a spin-off (as a stock dividend) from current parent company Subsea 7 S.A. (OSE: SUBC). The listing is supposed to be done no later than July 27th and Subsea 7 said that the expected first day of trading is July 26th, that also then being the ex-dividend date for Subsea 7 shareholders. This naturally needs to be approved by a general meeting of Subsea 7 shareholders next Friday. The plan is for Subsea 7 shareholders to receive one Veripos share for every 10 Subsea 7 share held.
Oslo Børs concluded that despite offering a substantial amount of its services to Subsea 7, the wholly owned indirect subsidiary is not a part of core (seabed-to-surface services) operations of Subsea 7. Veripos does and will continue to offer its services to all market players and the aim is to enable the company to grow that offering. Veripos provides high precision satellite positioning services mainly for the offshore industry. It operates a worldwide Global Navigation Satellite System ("GNSS") reference stations network on land consisting of over 80 stations to provide data for vessels requiring very accurate positioning data and offers both software and hardware products.
The selection of GPS and Glonass augmentation services is mainly used by exploration seismic, survey, construction, drilling and DP marine market sectors that may need accuracy better than 10 cm. In between 2009 and 2011, Veripos’ revenues have grown from 33 million USD (under 200 million NOK) in 2009 to 41 (244 million NOK) million last year. The EBITDA in last two years has been steady at 10 million USD (close to 60 million NOK) as calculated by Subsea 7.
Oslo Børs concluded that despite offering a substantial amount of its services to Subsea 7, the wholly owned indirect subsidiary is not a part of core (seabed-to-surface services) operations of Subsea 7. Veripos does and will continue to offer its services to all market players and the aim is to enable the company to grow that offering. Veripos provides high precision satellite positioning services mainly for the offshore industry. It operates a worldwide Global Navigation Satellite System ("GNSS") reference stations network on land consisting of over 80 stations to provide data for vessels requiring very accurate positioning data and offers both software and hardware products.
The selection of GPS and Glonass augmentation services is mainly used by exploration seismic, survey, construction, drilling and DP marine market sectors that may need accuracy better than 10 cm. In between 2009 and 2011, Veripos’ revenues have grown from 33 million USD (under 200 million NOK) in 2009 to 41 (244 million NOK) million last year. The EBITDA in last two years has been steady at 10 million USD (close to 60 million NOK) as calculated by Subsea 7.
Sunday, 13 May 2012
Subsea 7 foresees persistent period of high activity
Subsea 7 S.A. (OSE: SUBC) released its Q1 2012 interim report on Friday. The seabed-to-surface engineering, construction and services contractor grew its revenues close to 1.46 billion USD (~8.5 b NOK). Adjusted EBITDA reached 225 million $ (~1320 m NOK). Net operating income more than doubled to 93 million $ (~545 million NOK) and EPS for current weighted average number of common shares outstanding of 379.1 million printed at 0.25$ (~1.47 NOK).
CEO Jean Cahuzac said he is pleased with the quarter, which went according to internal estimates. He also said that the quality of order backlog has improved. It has also grown overall to now stand close to 8.7 billion USD (~51 b NOK). Mr. Cahuzac says that customers remain very optimistic on most of the markets where the group is active. The company expects annual revenue and adjusted EBITDA to grow from 2011.
Tendering activity in the North and Norwegian Sea remains very strong and prices are climbing. Operations in West Africa are going through a transition period and H2 will see lower activity. More major SURF contract are expected to come to market award in the region. The execution of such EPIC projects is supposed to be in late 2013 and 2014. While there is a sliver of increased activity in the Gulf of Mexico and some contract awards for the following two years expected this year, pricing conditions remain “challenging”. In Brazil the company foresees continued opportunities, not only in traditional deepwater, but also in pre-salt plays. More SURF contract should also be coming to market award offshore Australia.
Out of the existing order backlog, approximately 3.8 billion USD is expected to be executed in 2012 and 3.2 billion next year. Following NKT Flexibles divestiture and SapuraAcergy offshore activity rescheduling, joint venture contributions are expected to be lower for the remainder of the year. Subsea Hydraulic Leads is however expected to perform strongly. The market had been counting for somewhat faster earnings improvement and the stock slid 3% in Friday trading.
CEO Jean Cahuzac said he is pleased with the quarter, which went according to internal estimates. He also said that the quality of order backlog has improved. It has also grown overall to now stand close to 8.7 billion USD (~51 b NOK). Mr. Cahuzac says that customers remain very optimistic on most of the markets where the group is active. The company expects annual revenue and adjusted EBITDA to grow from 2011.
Tendering activity in the North and Norwegian Sea remains very strong and prices are climbing. Operations in West Africa are going through a transition period and H2 will see lower activity. More major SURF contract are expected to come to market award in the region. The execution of such EPIC projects is supposed to be in late 2013 and 2014. While there is a sliver of increased activity in the Gulf of Mexico and some contract awards for the following two years expected this year, pricing conditions remain “challenging”. In Brazil the company foresees continued opportunities, not only in traditional deepwater, but also in pre-salt plays. More SURF contract should also be coming to market award offshore Australia.
Out of the existing order backlog, approximately 3.8 billion USD is expected to be executed in 2012 and 3.2 billion next year. Following NKT Flexibles divestiture and SapuraAcergy offshore activity rescheduling, joint venture contributions are expected to be lower for the remainder of the year. Subsea Hydraulic Leads is however expected to perform strongly. The market had been counting for somewhat faster earnings improvement and the stock slid 3% in Friday trading.
Sunday, 1 April 2012
Subsea 7 wins two triple-digit $ SURF contracts within a week
Seabed-to-surface engineering, construction and offshore energy industry services company Subsea 7 (OSE: SUBC) announced a subsea umbilicals, risers and flowlines (SURF) contract worth 175 million U.S. Dollars to ATP Oil & Gas and and contractor Bluewater operated Cheviot Field offshore Shetland on Friday. The field will use a moored floating process facility to import oil from drill centres and allowing it to be further exported by shuttle tankers.
The scope of the contract includes transport and installation of client provided flexible flowlines and risers, control umbilicals and 4.2 km flexible oil plus 48 km rigid gas pipeline. The oil field will be served by a floating Octabuoy Dry Tree semi-submersible production platform currently under fabrication. Post-installation Subsea will do the required trenching of the subsea lines and tie-in of the lines to the Octabuoy and drilling centres plus testing and pre-commissioning activities.
Engineering and project management will be done in Aberdeen and offshore operations are due to begin in 2014. Earlier in the week Subsea 7 also announced a 100 million $ SURF contract from Suncor Energy on the Terra Nova Field, some 350 km SE of St John’s, Newfoundland, offshore Canada. Subsea advanced 3% on Friday to close the week with a small plus.
The scope of the contract includes transport and installation of client provided flexible flowlines and risers, control umbilicals and 4.2 km flexible oil plus 48 km rigid gas pipeline. The oil field will be served by a floating Octabuoy Dry Tree semi-submersible production platform currently under fabrication. Post-installation Subsea will do the required trenching of the subsea lines and tie-in of the lines to the Octabuoy and drilling centres plus testing and pre-commissioning activities.
Engineering and project management will be done in Aberdeen and offshore operations are due to begin in 2014. Earlier in the week Subsea 7 also announced a 100 million $ SURF contract from Suncor Energy on the Terra Nova Field, some 350 km SE of St John’s, Newfoundland, offshore Canada. Subsea advanced 3% on Friday to close the week with a small plus.
Friday, 16 March 2012
Subsea 7 reports special fiscal year accounts
Seabed-to-surface engineering, construction and services contractor Subsea 7 (OSE: SUBC) reported fourth quarter and full year results. The company serves the offshore energy industry and the expectations were very high. While the profit numbers didn’t quite live up to expectations, outlook has delighted investors.
The company reported revenue of 1.4 billion USD from continuing operations, net income of 107 million and adjusted EBITDA of 227 million. (full-year numbers 5.5, 641 and 1007 for a special thirteen month period).
Earnings per share for 2011 fiscal year of 13 months came in at 1.21$. The Board of Director’s is suggesting a special dividend of 0.60$ citing strong performance, balanced sheet strength and confidence going forward. The Board also authorized a share buyback programme up to 200 million USD.
In 2012 the company expects to deliver revenue and EBITDA in the twelwe months above the 13 month result from 2011. r CAPEX are projected between $750 - $850 million with 450 million committed in vessel programme. All major markets continue to grow with particularly high tendering activity in the North Sea. Current order backlog of 8.5 billion is a record high. The stock has advanced 5% at mid-day trading.
The company reported revenue of 1.4 billion USD from continuing operations, net income of 107 million and adjusted EBITDA of 227 million. (full-year numbers 5.5, 641 and 1007 for a special thirteen month period).
Earnings per share for 2011 fiscal year of 13 months came in at 1.21$. The Board of Director’s is suggesting a special dividend of 0.60$ citing strong performance, balanced sheet strength and confidence going forward. The Board also authorized a share buyback programme up to 200 million USD.
In 2012 the company expects to deliver revenue and EBITDA in the twelwe months above the 13 month result from 2011. r CAPEX are projected between $750 - $850 million with 450 million committed in vessel programme. All major markets continue to grow with particularly high tendering activity in the North Sea. Current order backlog of 8.5 billion is a record high. The stock has advanced 5% at mid-day trading.
Monday, 6 February 2012
NKT up by 15% following NKT Flexibles divestiture
NKT continues to power ahead for the second trading day in a row. The company announced the divestment of NKT Flexibles I/S to National Oilwell Varco, Inc. (NYSE:NOV) on Friday. The agreement values the flexible pipelines supplier at around 3.8 billion Danish Kroner in cash (about 1.4 P/B). NKT Flexibles is currently a subsidiary of NKT Holding A/S (OMX: NKT 51%) and Subsea 7 S.A. (OSE: SUBC 49%, NASDAQ: SUBC, initially from the Acergy side)
NKT Flexibles supplier offshore and chemical industries with risers, flowlines, jumpers and joints. NKT has a factory at Kalundborg harbour in Denmark where it employs 700 people. The company has won a supply framework agreement with Petrobras and is currently building a new facility in Brazil, which is expected to be in operation by 2013. The transaction is subject to competition authorities' approval.
NKT Flexibles supplier offshore and chemical industries with risers, flowlines, jumpers and joints. NKT has a factory at Kalundborg harbour in Denmark where it employs 700 people. The company has won a supply framework agreement with Petrobras and is currently building a new facility in Brazil, which is expected to be in operation by 2013. The transaction is subject to competition authorities' approval.
Saturday, 30 July 2011
Subsea 7 lands a contract for Gorgon Project
Subsea 7 (OSE: SUBC) announced on Friday that it has received 440 million USD contract from Chevron Australia Pty Ltd. The order is for Gorgon Project, offshore Western Australia. and includes 20 subsea structures, 15 heavy spools, 48 tie-in spools, 39 electrical and 18 hydraulic flying leads and 5 infield umbilicals plus 2 associated distribution units.
Gorgon Project is one of the world’s largest natural gas projects. Chevron is the project operator with ExxonMobil and Shell also owning a quarter each. Subsea 7 was down 1% for Friday.
Gorgon Project is one of the world’s largest natural gas projects. Chevron is the project operator with ExxonMobil and Shell also owning a quarter each. Subsea 7 was down 1% for Friday.
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