Transocean Ltd. (NYSE:RIG) announced Tuesday that its ultra-deepwater drillship Deepwater Invictus has been awarded a two-year contract with options by a subsidiary of BHP Billiton.
Transocean said the backlog associated with the firm contract is approximately $106 million and the contract will commence in the second quarter of 2018. It includes three one-year priced options.
The Deepwater Invictus was delivered in 2014 and is rated to a water depth of 12,000 feet. It has spent nearly its entire career contracted to BHP.
Deepwater Invictus – (MarineTraffic,com, 2017)
Offshore platforms are used to explore, extract, and process oil and gas retrieved from the seabed. One vital part of these structures is the central processing platform (CPP), where the well head fluid is pumped from the wellhead platforms through the riser for processing. The most important function of the CPP is to separate the oil, gas, and water from this three-phase well head fluid, to produce the final product of the platform.
Most central processing platforms feature the following components:
1. Separation Unit
2. Gas compression and dehydration
3. Produced water conditioning
4. Sea water processing and injection system Continue reading
Much offshore gas and oil exploration takes place many miles beneath the ocean. As well as involving some seriously complex equipment, oil platforms can also be dangerous places, with numerous environmental hazards to deal with. Well drilling has taken place for thousands of years, with the earliest known instance being in China in 347 AD, and since then there have been numerous accidents which have had a serious impact both on human life and the environment. There is a positive side to this, though- virtually every accident has led to safety reviews, and helped to improve safety protocols and equipment.
Below, we’ve put together a list of the ten catastrophic oil rig accidents, to demonstrate just how dangerous this industry can be.
1) PIPER ALPHA PLATFORM – 6 July 1988
The Piper Alpha Platform
In April 2013 Transocean’s Deepwater Pathfinder drillship demanded the highest dayrate of any other rig contracted at that time. Eni contracted the drillship at an astronomical dayrate of $681,000 a day from September 2013 through April 2015 to drill in the Gulf of Mexico.
Pacific Drilling recently secured a contract with Malaysian Petronas for its UDW drillship Pacific Santa Ana at a dayrate of $170,000. The Samsung unit delivered in 2011 is capable to drill in water depths up to 12,000ft.
But the lowest dayrate for one ultra-deepwater drillship has been agreed by Vantage Drilling and India’s ONGC in January 2017 for the Platinium Explorer. ONGC has secured the rig for three years for $118 million which translates to a dayrate below $110,000.
Platinum Explorer – Vantage Drilling
Over the past ten years, the price of oil has certainly been volatile. This has led to concern at all levels, from the businesspeople selling oil, to the governments and policy makers in charge of regulating the industry. There are also environmental concerns associated with increased fossil fuel consumption, leading some to question whether there are enough oil reserves to satisfy demand, and what the long-term consequences of extraction may be.
As you can see, there are a lot of questions surrounding the oil industry at the present time. To help make things a little clearer, we have composed a list of the ten countries with the largest oil reserves in the world, to show how they fit into the global energy landscape.
1. Venezuela – 298.4 Billion Barrels
Venezuela Oilfield Map
Possessing over 298 billion barrels of proven oil reserves, Venezuela is by far the country with the largest reserves in the world today. While they currently hold the top spot, they only reached this point fairly recently- at the end of the previous decade, it was Saudi Arabia which was well out in front of other countries in terms of its oil reserves. Continue reading