KBR Subsidiary Selected for FEED Contract for Hess Denmark ApS' South Arne Phase 3 Development
KBR (NYSE: KBR) KBR announced today that its consulting subsidiary, Granherne, has been selected to take part in the FEED contract for the Greenfield sections of Hess Denmark ApS' South Arne Phase 3 Development in the North Sea. Granherne was selected for the study via a competitive bidding process. The project will utilise the combined expertise of Granherne and KBR and has assembled an experienced team to manage the fast track schedule."This project will further consolidate our excellent relationship with Hess which has built up over several smaller studies," said Richard D'Souza, Vice President, Granherne. "The project has a very tight schedule and we look forward to working with Hess to meet that challenge." The scope of the project comprises two new well head platforms, one of which is bridge linked to the existing South Arne facility. The other is located 2.5 km NNW of the existing platform. The two platforms are linked by subsea pipelines and an umbilical.
Government set to unveil offshore drilling plan
(Reuters) - The Obama administration is expected to announce by Wednesday its updated plan for oil and natural gas drilling in U.S. waters, including whether to allow exploration for the first time along the U.S. East Coast.
The plan could pave the way for a significant new domestic source of energy, helping to reduce U.S. dependence on oil imports and boost supplies of natural gas used to displace coal in power plants as the country works to reduce emissions of climate-changing greenhouse gases.
Last month, Interior Secretary Ken Salazar said he wanted to release the updated drilling plan by the end of March.
Two industry sources said on Monday President Barack Obama was expected to give a speech about energy security on Wednesday, which could include his views on expansion of offshore drilling.
The Interior Department and White House declined comment on Monday on whether Obama would speak to the issue in a speech slated for mid-morning on Wednesday at Andrews Air Force Base in Maryland.
The administration has been weighing the pros and cons of offshore drilling since it took office and put the brakes on a Bush-era proposal that called for drilling along the East Coast and off the coast of California.
For more than 20 years, drilling was banned in most offshore areas of the United States outside the Gulf of Mexico because of concerns spills could harm the environment.
Congress allowed the prohibition to expire in 2008 and former President George W. Bush lifted a drilling moratorium that year.
Environmental groups and some lawmakers continue to raise concerns about the impact increased drilling would have on coastal areas.
But Obama, who wants Congress to move a stalled climate change bill, has sought to reach out to Republicans by signaling he is open to allowing offshore drilling, providing coastlines are protected.
The U.S. Geological Survey estimates the U.S. Atlantic coast waters may hold 37 trillion cubic feet of gas and nearly 4 billion barrels of oil, while the Pacific Coast has 10.5 billion barrels of oil and 18 trillion cubic feet of gas.
To put that in context, the United States imports about 2 billion barrels of oil a year from OPEC nations and is expected to import 2.7 trillion cubic feet of natural gas from all sources this year, according to the Energy Department.
The administration's plan is expected to spell out whether and when drilling will be allowed in 3 million acres off the Virginia coast.
The Bush administration had proposed leasing the Virginia tracts to energy companies and said the government would receive bids for the leases in November 2011.
However, a senior Interior official told an oil industry conference in January that drilling off Virginia's coast would definitely be delayed past the original 2011 leasing date.
The proposed Virginia lease area, located about 50 miles from shore, may hold 130 million barrels of oil and 1.14 trillion cubic feet of natural gas.
The possible delay in drilling off Virginia's coast has been criticized by the state's new governor, Republican Bob McDonnell, and two U.S. senators eager for the state to tap into the jobs and royalties that come with exploration.
A spokeswoman for McDonnell said his office has not been told the updated drilling plan would be announced on Wednesday.
BP Awards 3 Drilling Deals for Iraq's Rumaila Field
UK oil major BP, along with Iraq's state-run South Oil Co., has awarded three deals valued at least $500 million to drill 49 wells as part of the program to develop Iraq's largest producing oil field, Rumaila, a senior Iraqi oil official said Tuesday.
The winning companies are Weatherford International Ltd., Schlumberger Ltd. in partnership with the state-run Iraqi Drilling Co., and China's Daqing Oil Field Co. Ltd., the head of the Iraqi Oil Ministry's petroleum contacts and licensing directorate, Abdul Mahdy al-Ameedi, told Dow Jones Newswires.
Weatherford will drill seven wells while the other two companies will drill 21 wells each, on a turn-key basis, Ameedi said. Seven further wells would be awarded to the company that shows the most progress and most efficient working practices, he said.
BP and China National Petroleum Corp. -- that both signed with Baghdad a 20-year technical service contract in November to develop Rumaila -- are planning to increase production from the field by 160,000 barrels a day by the end of this year or early next year, Ameedi said.
The field, in southern Iraq, is currently producing 1.07 million barrels of oil a day.
The BP-led consortium has pledged to almost triple production at the field to 2.85 million barrels a day. Under the deal, BP holds a 38% stake in the venture, while CNPC has 37% and Iraq's South Oil Co. the remaining 25%. The three contractors will receive a fixed fee of $2 for each additional barrel of oil produced from Rumaila.
The Rumaila deal is one of 10 signed with international oil companies late last year and early this year in a bid to revamp the country's war-hit oil industry and quadruple the country's production of 2.5 million barrels a day.
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