SERVICES | SUPPLIERS

March 5, 2012

FMC Technologies Inc.,

Houston, signed a definitive agreement to acquire Control Systems International Inc. (CSI), based in Lenexa, Kan., with offices in London and in Irvine, Calif. Terms of the transaction were not disclosed, and the deal is subject to due diligence and various closing conditions. Founded in 1968, CSI is a major supplier of innovative control and automation system solutions. It has 150 employees.

"The addition of CSI enhances FMC's automation and controls technologies and supports our long-term strategy to expand our subsea production and processing systems," said Robert Potter, FMC's executive vice-president of energy systems. "This acquisition also provides immediate benefits for our measurement solutions business to offer comprehensive fuel terminal and pipeline automation systems, resulting in significant value to our customers."

Topnir Systems Inc.,

Aix-en-Provence, France, signed an agreement with Marathon Petroleum Co. LP to share patents owned by Marathon for Near InfraRed (NIR) and Raman spectroscopy, among the fastest growing analytical techniques. It will use that technology to introduce Raman applications into the Topnir line. Combining the two technologies "allows for exciting solutions and new opportunities," said Topnir officials. The firm provides rapid measuring and monitoring of multiple hydrocarbon streams using a single online system. It has a long history in refining and petrochemicals and claims to be the first worldwide to implement an online application designed to measure and control octane number for gasoline production as well as the first NIR on-line application worldwide on ethylene plant naphtha feed (1986), gasoline (1989), and crude (1991). The business started in the late 1980s within BP Oil, with applications development around gasoline and diesel blending. Topnir's own extensive research program has produced more than 40 patents. It recently expanded its activities to provide platform independent software for NIR and Raman systems already installed in the field.

Schlumberger Ltd.,

Paris, announced availability of its new patented PressureXpress-HT reservoir pressure service and MDT Forte-HT high-temperature formation sampling and pressure system, the latest high-temperature additions to the Schlumberger reservoir characterization portfolio of services. "Providing a full suite of high-pressure, high-temperature evaluation tools is a major engineering focus within Schlumberger. These two tool systems expand our capabilities to deliver reliable downhole fluid analysis, fluid sampling, pressure measurement, and interval pressure transient testing," said Catherine MacGregor, president, Schlumberger Wireline. She said the company's rigorous qualification process includes shock, vibration, temperature, and pressure cycling to ensure reliable tool operations at the maximum tool ratings.

The PressureXpress-HT tool, rated to 450 degrees Fahrenheit, provides accurate pressure gradients and overall data quality not achievable by conventional high-temperature formation tester tools, the company reported, and enables precise control of volume and drawdown rates.

The MDT Forte-HT system is designed to provide greater all-around robustness in formation sampling and testing operations up to 400 degrees Fahrenheit, with a redesigned electronics system, incorporating surface-mounted components on a ruggedized chassis that protects sensitive electronics when operating in harsh high-shock and high-temperature logging conditions.

Aker Solutions ASA,

Oslo, was contracted by Statoil ASA through Aker Subsea AS to deliver six subsea trees and a tool package for its Troll field, with a possible option for nine additional subsea trees, including control systems. Estimated value of the contract is 350 million Norwegian krone (NOK). Equipment deliveries are scheduled from 2012 to 2015.

The Troll field in the northern part of the North Sea, 65 km west of Kollsnes, near Bergen, Norway, contains 40% of total gas reserves on the Norwegian continental shelf and is also one of the largest oil fields on the shelf. Under this contract, Aker Solutions will deliver equipment to the oil section of Troll. The company has been involved in Statoil's Troll projects beginning in 1996, and contracts and deliveries for Troll helped to shape and develop its subsea business. The field is the world's biggest subsea development in the number of subsea wells. Last year, Aker Solutions reached "a major milestone" in delivering the 100th subsea tree to the Troll field.

Also Aker Qserv Ltd. signed a frame agreement with Tullow Ghana Ltd. to provide well intervention services for the Jubilee and Tano deepwater fields off Ghana, West Africa. The initial contract period is for 3 years, with two additional 1-year options. Aker Solutions estimates the agreement will generate annual revenues of $4 million. Under the agreement Aker Solutions will provide slickline and coiled tubing equipment and services to maximize oil and gas production. Aker Solutions has delivered well services to Tullow's Jubilee field since 2008. Tullow is the largest independent oil and gas operator off West Africa.

In other action, Aker Solutions acquired Sandnessjøen Engineering AS in Sandnessjøen, Norway, strengthening Aker Solutions' presence in northern Norway and increasing its engineering capacity for offshore projects. Sandnessjøen Engineering supplies engineering and project management services to the oil and gas and construction industries. Aker Solutions plans to double the acquired company's current staff of 24 "over the next couple of years." Sandnessjøen Engineering will still be headed by Halvard Lie, managing director, and will remain in its current premises. Details of the transaction were undisclosed.

Honeywell International Inc.,

Morris Township, N.J., opened a technology center in Gurgaon, India, further expanding its technology development capabilities in key businesses including refining, petrochemical, reduced global-warming, and nylon technologies and applications.

The Indian facility features pilot plants for developing and demonstrating refining and petrochemical process technology by UOP LLC, part of Honeywell's performance materials and technologies {PMT) strategic business group. The center will perform other product and application development for PMT, including fluorine and nylon technologies. Honeywell invested $34 million in the 8,830 sq m center, which will primarily support Honeywell UOP's work in developing and licensing process technologies used in refining and the production of petrochemicals and renewable fuels. UOP is a recognized leader in refining, petrochemical, and biofuel process technology.

The center will initially employ 40 researchers, with the total expected to grow to 170 in the next 5 years. The new technology center is Honeywell's fourth in India. The company has rapidly expanded its footprint in India, with five manufacturing locations, 10 key offices, and sales presence in more than 50 cities. Honeywell's workforce in India has grown to more than 12,500 employees from 1,000 in 2002.

Transocean Ltd.,

Zug, Switzerland, named David A. Tonnel as senior vice-president of finance and controller, effective Mar. 1. He has served as senior vice-president of the firm's Europe and Africa unit since June 2009 and as vice-president of Global Supply Chain since November 2008. Tonnel previously served in various management and financial positions with Transocean. Prior to joining the company in 1996, he worked in France as a senior auditor for Ernst & Young. He graduated in 1991 from ecole des Hautes Etudes Commerciales in Paris with a Master of Science degree in management.

Expro International Group Ltd.,

Reading, UK, through its Connectors & Measurements division, received its single largest power connector order to date with a £7.3million contract for high-voltage subsea connectors for the subsea gas compression (SSGC) system—the world's first, officials said—that Aker Solutions is developing for Statoil in the Åsgard field on the Halten bank of the Norwegian Sea. The project is scheduled for 2014, and work is well under way in the technical department of the Subsea Excellence Centre in Ulverston, northwest England, officials reported. Terms of the contract were not provided. Expro Connectors & Measurements provides subsea connectors for global oil and gas projects, spanning more than 30 years.

In other news, Expro earlier secured "extremely important" multi-discipline 5-year contracts valued at "multi-million" pounds with Shell Upstream International Europe. This includes the primary slickline and multiline contract across Shell UIE, which encompasses the UK, Ireland, Norway, and The Netherlands. Additionally, Expro contracted to provide well testing, drill stem testing tools, and tubing conveyed perforating services in the UK Northern North Sea, as well as the North Sea sectors of Ireland and Norway. Both contracts are for 5 years, and each has an option to extend an additional 2 years. Expro and Shell have a 20-year relationship in Europe.

Kværner Verdal AS,

Verdal, Norway, was awarded a 1.2 billion NOK contract by Total E&P Norge AS for engineering, procurement, supply, and construction of a 16,500-tonne steel jacket for the Hild Field in the Norwegian North Sea. The contract will be executed by Kvaerner's yard in Verdal, and includes load-out and sea-fastening of the jacket and associated piles. The jacket and piles will have a total weight of 21,400 tonnes.

Detailed engineering starts immediately, while fabrication in Verdal will commence in fourth quarter. The project will reach its peak manpower of more than 400 persons in third quarter 2013. The Hild jacket will be delivered in the spring of 2014—the 42nd in the series of jackets delivered by Kvaerner since 1975, said company officials. Kvaerner's yard in Verdal is one of the few in Europe specializing in EPC jacket deliveries.

Superior Energy Service Inc.,

Houston, closed its previously announced acquisition of Complete Production Services Inc. (CPX). Under the merger agreement, each outstanding share of CPX's common stock was converted into the right to receive $7 cash and 0.945 of a share of SPN common stock, with cash to be paid in lieu of fractional shares. Superior issued 74.8 million shares related to this transaction and paid $554 million cash. The exchange gave CPX stockholders 48% of the combined company.

David Dunlap, SPN president and chief executive officer, said, "This transaction provides us more access to US land markets sooner than we could have accomplished on a stand-alone basis, while providing important completion and intervention services that we did not offer our customers. The combination will also assist us in accelerating our international expansion efforts as excess cash flows from North America can be deployed abroad to meet our growing international opportunity."

CPX earlier sold its Canadian wireline business for $45 million cash. It was the company's second divesture since the October announcement of the pending merger with SPN. "It seems pretty easy to connect the dots on this one as Superior's North American operations are nearly 100% focused in the US," said analysts in the Houston office of Raymond James & Associates Inc. They estimated proceeds from the sale would be used to pay down debt.

Baker Hughes Inc.,

Houston, broadened its pipeline service portfolio to include circumferential magnetic flux leakage (MFL) inspection technology, which enables pipeline operators to identify anomalies in long seams and more effectively manage risk associated with cracks in long seam welds and overall integrity.

Baker Hughes recently acquired the assets and circumferential-transverse field (TFI) MFL technology of Intratech Inline Inspection Services Ltd. With circumferential MFL inspection technology, Baker Hughes Process and Pipeline Services group can assist operators with locating specific pipeline seam threats, such as hook cracks, lack of fusion, and long narrow-axial corrosion. The technology will be produced in larger-diameter pipeline sizes, complete with speed control and inertial navigation capabilities.

Reservoir Group,

Houston, named Etienne Roux as managing director to oversee the transition of Warren & Christian Inc., a mud-logging firm based in Oklahoma, into its Empirica surface logging business. Roux, who has more than 10 years of oil and gas experience, started his career with Schlumberger as an LWD field engineer. His most recent role involved management of Weatherford Drilling Services formation evaluation, surface logging, and drilling operations for the Europe, Caspian, and sub-Saharan African regions.

Warren & Christian will retain its existing personnel and management team, headed by company president Jack Christian.

Electromagnetic Geoservices ASA ,

Trondheim, Norway, reported the resignation of Dag W. Reynolds, executive vice-president of sales and business development to pursue a new executive role in the oil and gas industry. Dave Ridyard, president of EMGS operations in South America, was named acting executive vice-president of sales and business development pending a permanent replacement. Ridyard has more than 25 years' experience in the marine seismic industry.

Topaz Energy and Marine,

Dubai, subsidiary of Oman-based Renaissance Services SAOG, was awarded a contract from GAC Group to provide completion services for two crew and cargo vessels at Topaz's NicoCraft shipyard in Abu Dhabi. Construction and engineering by the Topaz Marine Engineering Division as part of the contract include structural works, outfitting, and equipment installation. The 22 m vessels will carry 24 passengers, seven crew, and up to 15 tonnes of cargo. It is Topaz Marine Engineering's first contract with GAC. The shipyard has successfully delivered more than 20 vessels in the last 3 years.

National Oilwell Varco Inc.,

Houston, signed a definitive agreement to acquire NKT Flexibles I/S, a Denmark-based joint venture between NKT Holding A/S and Subsea 7 SA, for $670 million cash. NKT Flexibles designs and manufactures flexible pipe products and systems for the offshore oil and gas industry, including products associated with floating production, storage, and offloading and other offshore vessels, as well as subsea production systems including flow-lines and flexible risers. NKT Flexibles recently signed a supply framework agreement with Petróleo Brasileiro SA (Petrobras) and is to construct a facility in Brazil to strengthen its position in that market. The acquisition is subject to customary closing conditions, including approval from the relevant authorities. It is expected to close during the first half of this year.

Raymond James analysts reported, "The deal appears to be a good strategic fit as NKT's expertise expands National Oilwell's offering in the FPSO arena. Without financial metrics, it's difficult to determine the multiple National Oilwell paid, though we note this also helps expand National Oilwell's relationship with Petrobras."

Artificial Lift Co.,

Houston, announced the successful installation of the first rigless electrical submersible pump (ESP) string in the Middle East. Installation was in one of Saudi Aramco's fields and included a 134 hp rigless ESP system with a 6,000 b/d pump. It also featured the service company's proprietary Permanent Magnet Motors and Wet Connect system. The unit was installed at a depth of 6,119 ft with downhole ESP gauge, packer, and subsurface safety valve assemblies. Rigless ESP technology enables clients to retrieve the ESP string without a rig, providing cost savings, less downtime, and less oil deferment. The technology earlier was installed in three wells in Alaska.

Clariant Oil & Mining Services,

Houston, named Graham Gammack as head of marketing for its oil services business line. Gammack has been with the company nearly 2 years, previously serving as director of business development. Prior to joining Clariant, he was manager of process and capability improvement at Baker Hughes. He has a doctorate in microbiology and 25 years of domestic and international oil and gas experience in a number of positions. Gammack succeeds Nick Phillips who was recently named head of marketing, technology, and key accounts for Clariant Oil Services.

PENSPEN LTD.,

Surrey, England, said its manpower services division was contracted by Maersk Oil North Sea UK Ltd. to provide specialist services in oil and gas engineering, pipelines, and facilities for a year with an option to extend until November 2013. Other details were not revealed. The division has more than 55 years of experience in providing project and construction management and specialist engineering services on a project team or individual basis.

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