Keppel to deliver fourth ENSCO 8500 Series deepwater rig on schedule

Keppel FELS Limited (Keppel FELS) is on track to deliver ENSCO 8503, the fourth of seven ENSCO 8500 Series semisubmersible drilling rigs being built exclusively for Ensco plc.

ENSCO 8503 is scheduled to commence a two-year primary term with Cobalt International Energy, L.P. in the Gulf of Mexico in early 2011.

The rig was named at Keppel FELS today by Lady Sponsor, Mrs Cynthia Bryant, spouse of Mr Joseph H. Bryant, Chairman & CEO of Cobalt International Energy, L.P., in the presence of Guest of Honour, Ms Ho Ching, Executive Director & CEO of Temasek Holdings Pte Ltd.

Ms Ho Ching shared, “The collaboration with Ensco over the last two decades has enabled Keppel FELS to hone its construction and engineering competencies, its human capital development, and safety programmes, burnishing its reputation as a leading rigbuilder.

“Keppel FELS’s execution capabilities and track record have given it a strong edge overseas, and done Singapore proud.”

Mr Daniel W. Rabun, Ensco's Chairman, President & CEO, said, “Given our long-term relationship and confidence in Keppel FELS, Ensco has awarded Keppel FELS contracts for all seven rigs in the ENSCO 8500 Series.

“ENSCO 8500 and ENSCO 8501 are the first two deepwater rigs to be certified by the Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE) under NTL No. 2010 – NO5 in the U.S. Gulf of Mexico under the new regulatory framework, and we anticipate similar success for ENSCO 8503.”

“Like her preceding sister rigs, ENSCO 8503 and the remaining three rigs being built are reaping progressive productivity gains, due to Keppel FELS’s accumulated experience and collaboration with Ensco.”

Over the course of completing the first four units of the more than US$3 billion ENSCO 8500 Series seven-rig fleet, Keppel FELS has trimmed construction lead time by about 1 million manhours, compared to the first unit.

Mr Tong Chong Heong, CEO of Keppel O&M, said, “Keppel has grown with Ensco over the years and witnessed its rise from a fledging energy company to a premier global offshore drilling contractor with a formidable fleet of premium rigs across the world.

“Through the ENSCO 8500 Series programme, we have sharpened our engineering edge and construction methodology. This has culminated in the exceptional safety record and significant productivity improvements achieved in building ENSCO 8503.

“With the knowledge and insights amassed from the earlier rigs, we remain focused on completing the rest of the ENSCO 8500 Series fleet, on time, within budget and with the highest safety standards.”

When the ENSCO 8500 Series is completed, Keppel-built rigs will make up a third of the leading driller’s premium fleet. Construction of the next three rigs remains on schedule with expected deliveries extending to 2012.

ABB Wins Marine Order Worth $20 Million

ABB, the leading power and automation technology group, has won an order worth $20 million to provide complete power systems, drilling drive and propulsion systems for a new deep water drilling rig to be built by Daewoo Shipbuilding and Marine Engineering (DSME) at its shipyard in South Korea. The end customer is Brazilian ship owner Petroserv, who will operate the drilling rig for Petrobras.

The rig is scheduled to be commissioned by early 2012.

ABB will supply complete electrical systems for the semi-submersible drilling rig, which will be used for oil and gas exploration drilling. The delivery includes power generation and the high and low voltage distribution systems, the drilling drive system, the propulsion drive system, as well as related engineering services.

In addition to supporting the short delivery schedule, ABB�s scope of supply was specifically selected to improve equipment reliability, efficiency and availability, securing a stable supply of power throughout all rig systems.

�ABB�s broad scope of supply, resident marine, oil and gas industry expertise, and proven track record of delivering advanced, reliable solutions for offshore drilling vessels were important factors in winning this order,� said Veli-Matti Reinikkala, head of ABB�s Process Automation division.

This project is ABB�s fourth Semi submersible drilling vessel project for DMSE; ABB delivered the same scope of supply for the Petroserv #1 rig, which also operates for Petrobras in Brazil.

The new contract with Petroserv demonstrates that the global strategy, along with ABB's core concept for simplicity as a driver in design, commissioning and operation phase for marine customers, can succeed as well in new markets, like Brazil, as they have with owners in U.S.A, Europe and Asia.

ABB�s Process Automation division delivers integrated automation solutions for control, plant optimization, and industry-specific application knowledge and services to help process industry customers worldwide meet their critical business needs in the areas of operational profitability, capital productivity, risk management and global responsibility. These industries include oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals, minerals, cement, marine and turbocharging.

Reliance enters into JV for US shale acreage

Reliance Industries Limited (RIL) announced that its subsidiary, Reliance Marcellus II, LLC, has signed definitive transaction agreements to enter into a Marcellus Shale joint venture with United States based Carrizo Oil & Gas, Inc.

Under the proposed transaction, Reliance will acquire a 60% interest in Marcellus Shale acreage in Central and Northeast Pennsylvania that is currently held in a 50‐ 50 joint venture between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners. Pursuant to the transaction, Reliance will acquire 100% of Avista’s interest and 20% of Carrizo’s interests in the joint venture. Upon completion of the transaction, Reliance and Carrizo will own 60% and 40% interests, respectively, in a newly formed joint venture between the companies.

Reliance will pay a total consideration of $392 million, comprising of $340 million of cash and $52 million of drilling carry obligations. The drilling carry obligations will provide for 75% of Carrizo’s share of development costs over an anticipated two year development program.

The joint venture will have approximately 104,400 net acres of undeveloped leasehold in the core area of the Marcellus Shale in Central and Northeast Pennsylvania, of which Reliance’s 60% interest will represent approximately 62,600 net acres. This acreage is expected to support the drilling of approximately 1,000 wells over the next 10 years, with a net resource potential of about 3.4 Tcfe (2.0 Tcfe net to Reliance). The transaction allows for additional growth in the development acreage, at pre‐agreed terms.

Drilling recommences at Bongo prospect

Caza announced that the Bongo, O.B. Ranch #1 Well in Wharton County, Texas, has reached a depth of 12,964 feet, and intermediate casing has been installed, cemented and formation integrity tested. Drilling has recommenced to the target depth of 16,000 feet, which should take approximately fifteen days. Preliminary drilling and log data indicate hydrocarbon bearing sands in a shallower horizon that will require further evaluation.

W. Michael Ford, Chief Executive Officer commented, "We are pleased that drilling on the O.B. Ranch #1 well is progressing as planned and anticipate reaching the target depth within approximately fifteen days."

BP Operations in the Eastern Hemisphere

Many large Oil companies would consider buying BP�s assets if they are put on sale. BP is setting aside some assets as security while it builds up the $20 billion fund agreed upon with the U.S. to compensate for the damage from the Gulf of Mexico oil spill.

BP and its affiliates operate facilities or market products in most of the world�s countries and explore for oil and natural gas on six continents.

In the Middle East, the BP group has offices in Kuwait, Oman, Qatar, Saudi Arabia and the UAE. The head office for BP Middle East exploration and production activities is in Abu Dhabi. Many of BP's Important projects exist in the UAE such as Lower Zakum Development, Sharjah - Sajaa Gas Concession and Abu Dhabi Hydrogen Power Plant with Masdar. BP main business in Saudi Arabia is the supply and trading of petroleum products such as lubricants and aviation fuel to wholesale and retail customers.

In Asia, BP�s exploration and production activities are centered in Russia, Azerbaijan and China. BP also holds a leadership position in Liquefied Natural Gas (LNG) in China through a number of joint ventures.

In Russia, BP has an important joint venture through 50 per cent ownership of TNK-BP through its major producing assets, which are located in West Siberia, the Volga-Urals and East Siberia. BP is the operator of major projects in Azerbaijan such as Azeri-Chirag-Guneshli" and �Shahdeniz�, as well as Baku-Tbilisi-Jeyhan and South Caucasus pipeline projects. These developments converge at the Sangachal Terminal. Also BP recently signed an agreement to explore and develop the Shafag - Asiman structure.

BP Group has a large number of exploration and production activities in North Africa focused on Algeria and Egypt. In Algeria, BP had plans to spend $2 billion over the next five years to develop its operations in Salah and Amenas fields. In Egypt, BP has many fields in the Gulf of Suez and the Western Desert, which are operated through its subsidiary Gulf of Suez Petroleum Company (GUPCO); and operating gas assets in the Nile Delta through the Pharaonic Petroleum Company (PhPC).

BP has well-established operations in Sub-Saharan Africa including Angola, Botswana, Malawi, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe. In Angola, the first BP-operated asset is Block 18, which was discovered in 1999-2001, and consists of five distinct fields (Galio, Cromio, Paladio, Plutonio, and Cobalto).

A Comprehensive coverage of BP operations and major assets in the eastern hemisphere can be found as part of the 3D projects online database available at Gulfoilandgas.com. Additional information can be found at the following link: http://www.gulfoilandgas.com/webpro1/Projects/main.asp.

European Gas Limited awarded new exploration permit in France

French Government has formally granted its wholly-owned subsidiary Gazonor S.A. (Gazonor) a new exploration permit 'Sud Midi' (located in the Nord Pas de Calais region).

The 'Sud Midi' permit increases EGL's portfolio and secures its position among the largest CBM and unconventional gas permit holders in Western Europe. EGL has a 100% working interest.

EGL's CEO, Peter Cockcroft, said, "This is an exciting addition to our current exploration and production asset portfolio located in the largest coal basin in France. The Sud Midi permit is ideally located relative to EGL's existing production facilities, thus any exploration success in the Sud Midi permit will be relatively easy to commercialise and bring on stream, selling into well established markets."

This exploration permit is adjacent to EGL's Gazonor Production Concession, and, together with the Valenciennois Exploration Permit, forms a contiguous permit area of 1,352 km2. The permit area covers 929 km² and is located in the Nord Pas de Calais region (North of France). The permit is granted for a five year term until July 23rd 2015 with a total expenditure commitment of €1.9 million.

McMoRan makes discovery at Blueberry Hill

McMoRan announced that the Blueberry Hill #9STK1 well, located on Louisiana State Lease 340 in 10 feet of water, has been drilled to true vertical depth of 23,630 feet (24,385 feet measured depth).

The gamma ray and resistivity information from log-while-drilling tools indicate a possible hydrocarbon bearing zone in a high quality sand measuring 105 feet. Wireline logs will be required to fully evaluate this section. McMoRan will continue to deepen the well.

McMoRan owns a 42.9% working interest and a 29.7% net revenue interest in the Blueberry Hill well. Plains E&P Co. holds a 47.9% working interest.