SERVICES | SUPPLIERS

March 3, 2014

JDR Cable Systems Limited

Has won a contract for the manufacture of subsea production umbilicals from ConocoPhillips. The umbilicals will be deployed in Phase 3 of the Bayu-Udan Field development in the Joint Petroleum Development Area (JPDA) of the Timor Sea.

JDR's scope of work includes delivery of three sections of electro-hydraulic umbilicals, with a total length of 29 km. The umbilicals will be used for control and chemical distribution to two new subsea production wells. JDR will also provide the subsea distribution unit at the base of the dynamic riser umbilical, which will connect the two infield umbilicals. In addition to subsea hardware, JDR combines their products with lifecycle support through its Aftermarket Installation and Maintenance Services (AIMS) division.

The umbilicals will be manufactured and loaded out of JDR's facility in Hartlepool. JDR's Hartlepool plant supports simultaneous manufacture, enabling them to meet the critical delivery date of May 2014 required to meet the project objectives.

Commenting on the contract award, Andrew Norman, Chief Executive Officer of JDR said, "This contract demonstrates JDR's growing capability in subsea production umbilical design and manufacture."

Assured Flow Solutions, LLC

Houston-based Assured Flow Solutions, LLC (AFS) announced that it has opened an office in Denver, Colorado. This office will be the first flow assurance consultancy with a physical presence in the Rocky Mountain region and will be led by Elijah Kempton, a Colorado School of Mines graduate. Along with a diverse list of other regional and international producers, current AFS clients have made commitments to invest in unconventional exploration and production in the Rocky Mountain region. AFS' expansion will provide these clients with the support needed in designing, operating, and debottlenecking their gathering systems.

AFS Managing Partner Tony Spratt, PhD says, "Bringing our expertise in production chemistry and multiphase production operations to the Rocky Mountains is something that we see as consistent to the capital expansion plans of our client base. We look forward to providing a local talent pool to execute these challenging projects and leverage our deepwater technical successes in the onshore market."

The Denver office is the latest step in AFS' strategic growth plans, providing a center of excellence for flow assurance within the onshore market. Denver is a fitting home for AFS, as the company remains active within the community through their on-going engagement with Colorado School of Mines and local charities.

Avo Photonics

A custom opto-electronic design and production specialist, Avo Photonics, in collaboration with the Wireline R&D optical sensor group at Weatherford International has successfully designed and validated the performance of a downhole multi-channel photometer. The sensor has now completed several field trials and is being volume manufactured by Avo Photonics for Weatherford commercial deployment.

The Reservoir Fluid Analyzer (RFA) sensor conforms to a 4.5 inch diameter space performing downhole fluid analysis up to five kilometers below the earth's surface. The sensor design allows the device to perform high-quality photometric analysis while withstanding operating temperatures from –20 to 177° C. with total differential pressures up to 30,000 psi.

"Avo's optical and opto-mechanical design and manufacturing expertise for harsh environment operations and their rapid understanding of the downhole challenges were critical to create a sensor assembly that would work within our existing wireline equipment," said Dr. Jess V. Ford, Weatherford Senior Staff Scientist.

"Designing and manufacturing an optical fluid analyzer for downhole is challenging, and Weatherford's extended long wavelength requirements compounded the difficulties of high temperature performance," said Dr. Thomas Haslett, Avo Photonics Chief Technology Officer. "We created an original design from our unique perspective. The result has been a high-quality, high-fidelity instrument that is continually produced at Avo."

Tejas Tubular

Nebraska Governor Dave Heineman recently announced the expansion of Tejas Tubular Products Inc., a Texas-based oil country tubular goods (OCTG) manufacturer, to the greater Norfolk, Nebraska area. Joining him for the announcement was Max Tejeda owner of Tejas Tubular, Norfolk Mayor Sue Fuchtman, and Dirk Petersen General Manager of the Nucor Corporation, an American steel manufacturer.

Tejas will build the 350,000 sq ft Madison county facility to supply more than 150,000 tons of steel products that include casing, drill pipe and line pipe for oil and gas production. This expansion will create more that 200 new jobs in the Norfolk area.

"Attracting a substantial company, such as Tejas Tubular is a testament to our state's continual goal to offer the most comprehensive incentives found anywhere in the US," Gov. Heineman said. "Similarly, the significant financial investments and job creation that Tejas is making will positively impact the entire northeast Nebraska economy for years to come."

"We're impressed with Nebraska's fiscally-conservative approach to doing business," said Tejeda. "The City of Norfolk was instrumental in convincing us to locate here. I can readily see the quality and dedication of the local workforce, and am looking forward to hiring hard-working Nebraskans to manufacture our line of quality products."

"I'm excited about being able to supply the highest grade of steel for Tejas Tubular's OCTG products," said Nucor's Petersen. "This strategic partnership, as well as its location to markets in the US mid-continent region is a win-win situation for both companies. This facility shows the commitment of the Norfolk community to business and to creating American jobs and supporting American energy independence."

Tejas Tubular is a primary supplier to oil and gas producers throughout the US, and is a particularly important supplier to the Rocky Mountain region.

Schlumberger

Announced the introduction of the MS Recon high-fidelity microseismic surface acquisition system. This new microseismic system for surface and shallow grid microseismic surveys provides improved imaging of the hydraulic fracture geometry by optimizing the microseismic signal quality.

"The new microseismic surface acquisition system addresses the challenges of detecting small microseismic signals emitted during hydraulic fracturing at the surface and near-surface locations," said Joseph Elkhoury, vice president and general manager, Microseismic Services, Schlumberger. "The MS Recon system improves signal-to-noise ratio during acquisition enabling the detection of many more microseismic events than conventional systems. This provides our customers with a better understanding of their stimulation operations, allowing them to optimize completion design and potentially increase production."

The microseismic system features an industry-first proprietary geophone accelerometer and ultra-low noise electronics to produce the widest range of signal detectability in the industry. The nodal-based wireless acquisition system also provides customers increased flexibility in designing and deploying the surface and near-surface arrays. GPS-synchronized data are acquired continuously and transmitted to a real-time operations support center, providing customers with data processing and expert interpretation.

In field trials conducted at an operator wellsite in Texas, the MS Recon system and a conventional system were deployed to monitor hydraulic fracture treatments in a horizontal shale completion. The field data analysis concluded the microseismic system improved the sensitivity to smaller microseismic events by boosting the signal-to-noise ratio more than two-fold compared to the conventional system.

Baker Hughes

Has announced the commercial release of its SHADOW™ series frac plug, a permanent, large-bore, flow-through frac plug designed to be left downhole after fracturing operations are complete. SHADOW plugs are a more efficient alternative to traditional composite plugs because they eliminate coiled tubing operations from the critical well path and enable reduced costs and HSE risks.

SHADOW plugs feature a large flow-through inside diameter (ID) and use IN-Tallic™ disintegrating frac balls, allowing production flow—with the plugs in place—as soon as fracturing operations are complete. The IN-Tallic™ frac balls, which are made with a controlled electrolytic metallic (CEM) nanostructured material, hold pressure during fracturing and disintegrate in the well when exposed to produced fluids, leaving a large ID to enable maximum production. The initial reservoir entry point is created using the Alpha™ sleeve pressure-actuated valve, rather than a perforating gun run in on coiled tubing.

Because the plugs stay in the well, they can be set beyond the reach of coiled tubing-conveyed milling tools, allowing operators to fracture longer lateral sections and maximize reservoir access. The plugs are also ideal for developments in remote locations where it may be difficult to procure intervention equipment.

The SHADOW plug was field tested on two of seven wells in the Horn River Basin while the other five wells were completed using conventional composite plugs. The wells with the SHADOW frac plugs produced at the same volume as the wells using the composite plugs. However, because the drillout phase was eliminated, the time on well was reduced by approximately two days for a cost savings of $150,000 per well.

Proserv

Has secured two major contract wins in the Gulf of Mexico worth a combined US $17 million (approx. £10.5 m), underpinning the company's fast-growing status, international footprint and strong interregional capability.

The deals with Noble Energy and Talos Energy will see Proserv carry out work at the operators' respective Gunflint and Phoenix Field Expansion developments.

Two deepwater wells will be controlled at Noble Energy's Gunflint field in the Mississippi Canyon area—around 70 miles from the Louisiana coast. Developed by Proserv's flagship R&D technology hub in Trondheim, Norway, fibre optic communication systems using the company's Open Communications Hub (OCH) technology will allow high-speed network communication from 6100 ft (1859 m) below the surface. Proserv's team of subsea controls experts in Great Yarmouth, UK, will be responsible for the manufacturing of the 7 subsea control modules for both developments, which will include the latest Artemis 2G electronics. Final testing, servicing and the integration of equipment will be carried out at Proserv's dedicated controls facility in Houston.

Control systems for three wells will be provided to Talos Energy at the Green Canyon Block and will also include a subsea distribution system. Whilst Proserv's Great Yarmouth team will manufacture the equipment, which will operate at a depth of 2500 ft (762 m), the overall delivery of the project will be completed in Houston.

David Lamont, chief executive at Proserv said, "These are significant wins for the company that highlights the strength of our technical and engineering expertise as well as our market-leading status in the subsea controls and communications field. Our control systems are designed to operate at all depths and this is being put to the test at the Gunflint and Phoenix Field Expansion developments.

"We have expanded our business considerably in recent years through both organic growth and strategic acquisition whilst building a reputation for delivering high-value and integrated technology systems on time and within budget. We look forward to working with both Talos Energy and Noble Energy in the successful delivery of these projects."

Proserv has a 40-year track record in delivering bespoke technologies and services for the energy industry, particularly in the drilling, production, subsea and marine market sectors. The company operates worldwide across several regions and currently employs more than 2,000 people globally.

CB&I

Wood

Announced it has been awarded a contract to provide pipe fabrication for The Dow Chemical Company US Gulf Coast Investment Program. Dow's investment plan includes construction of a new propylene and ethylene production unit in Texas and four new polyethylene plants in Texas and Louisiana.

"CB&I's strategically-located fabrication facilities, production management systems and manufacturing technology give us the unique capability to provide complete piping solutions for major energy infrastructure projects," said Luke Scorsone, President of CB&I's Fabrication Services operating group. "This distinct expertise offers our customers greater quality, efficiency and schedule reliability, and in turn, we help our customers get their products to market faster."

Aurecon boosts oil and gas business with new appointment.

Aurecon has appointed John Wood as Industry Director, Oil and Gas. John will focus on the global growth of Aurecon's Oil and Gas business, currently working at 300 professionals with experience in a range of oil and gas related activities globally. He will support Aurecon's global client relationships through the newly established London office.

Chief Business Development Officer, Stephen Wells said: "Securing John's services is a great start to the year for Aurecon. John's wealth of experience globally will ensure we continue to meet our clients' requirements with flexible delivery models within the oil and gas sector.

"John is a broad-skilled business leader, offering more than 25 years of international experience, with the commercial drive and business acumen to lead periods of sustained growth," he added. With particular experience in developing countries, John has worked with operators, tier one and two suppliers, state and federal governments and with financial institutions across the industry.

John was previously Managing Director with specialist company Teramar, a niche consultancy and advisory service providing independent advice to the oil and gas industry globally.

Prior to this John held the position of General Manager with BAE Systems for oil and gas and asset management, running several lines of business with multiple teams. John strategically planned and led BAE Systems' successful diversification from traditional Naval Shipbuilder into the oil and gas sector.

John commenced his career as an engineering officer in the merchant navy working on steam and motor vessels, progressing quickly through the ranks before returning ashore to embark on the next phase of his career.

Hoover Container Solutions

Matis

A subsidiary of Hoover Group, Inc., has named Matt Matis as director of sales for the Gulf of Mexico region. Matis is based in Thibodeaux, La., and will work closely with Hoover's facilities in Port Fourchon, New Iberia and Scott, La.

Matis will lead Hoover's Louisiana sales efforts with a focus on the offshore industry while managing several major customer accounts. Additionally, he will work closely with the Hoover and Dolphin Energy Equipment ("Dolphin") teams to develop an integrated product and service offering to better support customers. Hoover acquired Dolphin, a leading offshore equipment provider, in October 2013.

"As the Hoover-Dolphin integration continues, we are eager to add Matt's knowledge, relationships and leadership to our sales team," said Donald Young, Hoover's chief executive officer. "His industry expertise will serve as a valuable asset as we continue our expansion into the offshore chemical tank and cargo carrying unit (CCU) market."

Prior to joining Hoover, Matis worked for Swire Oilfield Services in Houma, La., for seven years where he most recently served as the Louisiana sales manager. Matis graduated with a bachelor's degree in general studies and a minor in family and consumer science from Nicholls State University.

Seadrill

Announced a Heads of Agreement between Pemex Exploracion y Produccion ("Pemex"), Mexico's national oil company and Seadrill. Seadrill states that the final drilling contracts for the jack-up drilling units West Oberon, West Intrepid, West Defender and West Courageous are now executed.

The fifth contract for the recently acquired jack-up drilling unit, Prospector 3, renamed West Titania, is being processed for approval by Pemex and finalization is expected to take place second quarter 2014.

Each contract is for a firm term of approximately 6 years and total revenue potential from the five contracts exceeds US $1.8 billion.

Additionally, Seadrill announced the establishment of SeaMex Ltd. (SeaMex), a 50/50 Joint Venture with an investment fund controlled by Fintech Advisory Inc. ("Fintech"). Fintech is a private investment manager founded in 1989 that has a strong investment record and operation in Latin American countries. SeaMex has been formed for the purpose of owning and managing the jack-up drilling units working for Pemex as well as to develop and pursue further opportunities in Mexico and other Latin American countries. The gross proceeds for the sale of 50% of the five rigs to our partner is expected to be around

US $488 million and will result in a gain recordable in the first half of 2014.

Per Wullf, Seadrill CEO commented, "This opportunity to expand our relationship with Pemex was partly developed on the back of Seadrill's successful operations with our ultra-deepwater semi-submersible West Pegasus in Mexico.

The long term nature of these contracts and the establishment of SeaMex, will create economies of scale in the region. Seadrill sees recent developments in Mexico such as new petroleum legislation, Pemex' expansion plans and recent large deepwater discoveries as supportive to the great opportunity to expand business within the country. By using the Joint Venture to build up a strong local independent organization with close proximity to our customer, strong focus on education, and a high degree of local content, we expect to be able to create an efficient, high quality, and more cost effective organization. Over time, this will position Seadrill better than a centrally driven organization in what we see as a very attractive market. At the same time, a strong focus on localization benefits the Mexican labor market, the Mexican society, and our clients."

GEOFORCE

Has announced that the latest version of its GT1 Satellite GPS Tracking device has received IECEx/ATEX Zone 0 certification—making it the world's first satellite tracking device with that rating. The Zone 0 classification means that the GT1 can operate safely for unlimited periods of time, even in the most explosive environments found in oil and gas exploration and production.

In addition to IECX/ATEX Zone 0, the device also is certified to meet more than 40 other specific global standards for Intrinsic Safety, Electronics and Radio Compliance, and Environmental Compliance. In addition to ATEX standards for Europe, governing bodies in the United States, Canada, Brazil, Mexico, and Australia have added their endorsement.

Gaining IECEx/ATEX Zone 0 required Geoforce to pass a series of intense reviews of its design, its manufacturing facility and quality assurance, and numerous other Geoforce business processes. The certification is subject to annual audits by the IECEx/ATEX certification organizations.

"Achieving IECEx/ATEX Zone 0 rating is the culmination of an effort that lasted more than two years. Gaining Zone 0 certification has never been achieved before for a satellite tracking device —and the standards were daunting," said Brandon Taylor, Chief Hardware Architect at Geoforce. "But the effort was worth it to provide our customers a single tracking device which is certified to operate safely for unlimited periods in any oil and gas operating environment for global operation."

ENTEQ UPSTREAM

Perry

A provider of systems and components for MWD and directional drilling has appointed Andrew Bridges as head of engineering, announced Enteq CEO, Martin Perry.

Initially based in Enteq's West London, UK, office but with a global remit, this new position will support Henry More, the founder of XXT, which was acquired by Enteq in May 2011. Bridges' appointment further bolsters the company's engineering team. Bridges has significant technical, managerial and leadership skills, which will ensure delivery of Enteq's development programs and grow the company's research and development capabilities and capacity. Enteq is evolving a new generation of Measurement and Logging while Drilling (MWD / LWD) equipment suitable for North American and global operations in high temperature and high endurance environments.

Bridges, an engineering graduate from Cambridge University in England, brings many years of downhole tool design experience in MWD / LWD, along with other closely related engineering competencies. Bridges' recent positions include technical director at Hunter Well Sciences and chief engineer at GE Oilfield Technologies.

"We are pleased to have Andrew join our team and look forward to the vast skill-set he brings, which will undoubtedly accelerate our engineering projects," said Perry. "We pride ourselves at Enteq on hiring individuals who understand customer needs and possess the ability to deliver industry leading technical solutions."

T.D. Williamson

Announced that it recently performed a successful STOPPLE® Train pipeline pressure intervention in Denmark. The operation made it possible for the Energinet.dk Gas Transmission System—Denmark's primary gas transmission pipeline—to be re-routed, allowing the new railway line Copenhagen-Ringsted to be constructed, better connecting Copenhagen with the rest of the country. The pipeline, which runs from a Danish offshore platform in the North Sea to Goteborg, Sweden, was successfully re-located without incident and without interrupting gas supply. To ensure a continuous flow, TDW maintained a pipeline pressure above 60 bar (870 psi). The entire operation was completed safely and without disruption to Denmark or Sweden.

TDW carried out the intervention for Energinet.dk, in conjunction with the Danish railroad company, Banedanmark, as part of a railroad expansion program aiming to improve rail travel throughout Denmark, plans to build a new dual track, electrified railway running from Copenhagen to Ringsted via Koege. The line will be Denmark's first high speed railway and will be able to handle passenger trains travelling up to 250 km/h. It was necessary to re-locate the Energinet.dk gas transmission pipeline, as part of the new rail line would cross the pipeline route at Broendbyvester in Greater Copenhagen.