OS_June 05final 5/24/05 4:24 PM Page 1

Volume 10—No. 6 June, 2005

News for the

U.S. Offshore
Oil & Gas Industry
www.OffshoreSourceJobs.com
www.OffshoreSource.com

First Oil Via Cameron Highway

Enterprise Products Partners L.P.
(NYSE:EPD) and Valero Energy
Corporation (NYSE:VLO) announce the
first deliveries of domestic crude oil pro-
duction to major refining markets on the
Texas Gulf Coast via the recently complet-
ed Cameron Highway Oil Pipeline System.
This 390-mile pipeline is the longest off-
shore oil pipeline in the U.S. and is the first
offshore link between the deepwater devel-
opments located off the coast of Texas and
Louisiana.
Cameron Highway, operated by
Enterprise, is a $500 million joint venture
between Enterprise and Valero. The pipeline
was built to move crude oil production from
the large deepwater developments in the
Central Gulf of Mexico, and future discov-
eries in the Western Gulf, to the United
States’ largest refining complex on the
Texas Gulf Coast, including major markets
in Port Arthur and Texas City, Texas. The
pipeline has the capacity to deliver up to
600,000 barrels of oil per day, and provides
a lower cost alternative than pipelines locat-
ed onshore in Louisiana.
Cameron Highway commenced service
earlier this year and producers in the
Southern Green Canyon area of the Gulf of
Mexico are in the initial stage of completing
pre-drilled wells from the Mad Dog and
Holstein fields. The first five wells have
been connected and the pipeline is currently
delivering approximately 80,000 barrels per
day (BPD) of domestic crude oil production
to Texas. Production is expected to ramp up
throughout 2005 and 2006 as additional
wells are completed.
Cameron Highway also represents the
shift toward an increasing need to bring a
medium-sour crude oil mix to the Texas
Gulf Coast refining market. Although
sweet, light crude oils are easier to refine
and represent an estimated one-third of
world refinery consumption, the long histo-
ry of higher demand for sweeter crude oil currently make up about 70 percent of Highway has contracted with Shell, under a
has depleted its availability. Sweet crude Valero’s crude slate, to successfully take term agreement, to move its 50 percent share
now constitutes only about one-fifth of advantage of the widening price spread of production from the Holstein field.
remaining world oil reserves. between sweet and sour crude oils. Throughout 2005 and 2006, it is antici-
Pipeline access to this crude oil through Cameron Highway is supported by life- pated that the pipeline will carry increased
the Cameron Highway route is a great fit for of-lease dedications with BP, BHP Billiton deliveries from the Holstein and Mad Dog
Valero, which has seven refineries tied to and Unocal to move their production from fields located in the Southern Green Canyon
the company’s coastal distribution system the Holstein, Mad Dog and Atlantis fields, area of the deepwater Gulf of Mexico, with
anchored in Texas. Valero has strongly and with Kerr McGee to move their pro- additional crude oil coming from the initial
invested in a complex refining system that duction from the Constitution and start up of production from the Atlantis,
processes the heavier, sour crude oils, which Ticonderoga fields. Additionally, Cameron Constitution and Ticonderoga fields in 2006.

Caesar Pipeline Sends Oil from BP’s Mad Dog

BP Pipelines (North America), the second-largest
liquid pipeline company, is responsible for transporting
oil from the BP Mad Dog facility located in the OCS,
about 200 miles south of New Orleans in the waters of
the Gulf of Mexico.
Oil travels from the offshore facility via the Caesar
pipeline, eventually making its way to Texas City and
Port Arthur, Texas. The Caesar pipeline is part of the
BP-operated Mardi Gras Transportation System, one of
the largest capacity deepwater pipeline systems in the
United States.
Offshore activities have evolved since the first well
was drilled in 1947. Shore-bound wooden wharves
have been replaced with modern steel or concrete struc-
tures. Offshore rigs can now drill in waters more than
7,500 feet deep and as far as 200 miles from shore.
Oil buried in shallow water is reached by using
drilling platforms that stand on stilt-like legs imbedded
in the ocean floor. For deeper waters, floating platforms
are used. Huge cables anchor these self-propelled ves-
sels to the bottom of the ocean floor while oil wells are
drilled.
Oceans have become one of the best sources for oil
and natural gas. While offshore drilling extracts these
products, America relies on oil pipelines to deliver the
fuel supply to communities across the country.

Oil Patch Headlines • Exploration & Drilling • GOM Activity • Supplier News • Offshore-at-a-Glance
Discoveries • Ships & Rigs • Alternative Energy • Stock Watch • World News • Technology Report
OS_June 05final 5/24/05 4:25 PM Page 2
OS_June 05final 5/24/05 4:30 PM Page 3

Table of Contents
www.OffshoreSource.com
www.OffshoreSourceJobs.com Headlines 1 Subsea Intervention 16
May, 2005 List of Advertisers 3 Technology 17
Volume 8, No. 5
Dan G. White World News 4 Communications 18
Publisher & Editor
Gulf of Mexico News 6 Shipyards & Equipment 19
Kevin Peterson
Financial Editor
Exploration & Drilling 10 Supplier News 20
Mj McDuffee
V.P. Sales & Marketing Company Spotlights 21, 25
Alternative Energy 11
Inger Peterson
Editorial Assistant OTC Report 22
Construction & Salvage 12
Sharon White
Circulation Events Calendar 23
Musings from the Oil Patch 13
Stef Russell
Graphic Design Company News 24
Offshore At-A-Glance 14
Marketplace 26
Stock Watch 15
ADVERTISING SALES

Mj McDuffee
Phone (772) 221 7720
Fax (772) 221 7715
E-mail: info@offshoresource.com

Technology Systems Corporation

PO Box 1096, Palm City,
Florida 34991-1096, USA
Tel: +1 (772) 221 7720
Fax: +1 (772) 221 7715
E-mail: info@offshoresource.com
Website: www.offshoresource.com
ISSN 1526-8101
Offshore Source is published monthly by
Technology Systems Corporation, 7897
SW Jack James Drive, Suite A, Stuart,
Florida, 34997. Offshore Source, Copy-
right ©2005, Technology Systems
Corporation. All rights reserved. Contents
may not be printed or otherwise reproduced
without written permission of TSC. TSC is
not responsible for lost queries, manu-
scripts, or other materials. The latter will
not be returned unless accompanied by
return postage.

Advertisers
Bright Light Foundation 26
Cns Subsea Limited 24
ETS 9
Federal Flange 5
Gulf Engine 26
Headhunter Inc. 26
IMES/Water Weights 25
ICOM America 7
Kongsberg Maritime 28
Mako Technologies 24
Marine Resources 26
Oceanology 23
Ocean Fiber Corporation 17
Ocean Specialists, Inc. 24
Ocean Works International 16
Offshore Communications 2005 27
Offshore Europe 11
OPE 1
Petrocom 2
Quest Offshore Resources 3
SeaCatalog 26
Skeets 26
VFL Energy Technologies 26

Offshore Source June, 2005 3

OS_June 05final 5/24/05 4:30 PM Page 4
Chevron Steps Up
World News Pace Off Angola
Chevron has announced intentions to engineer
and procure a second compliant tower for its deep-
water Tombua and Landana fields in block 14 off
Angola. Mustang Engineering has already begun
the design of a compliant tower similar the the pre-
vious Benguela-Belize. KBR is doing the front end
design work on the topsides. EPIC awards for the
build is expected in April 2006.
Technip’s Gulf Marine Fabricators and Kiewit
Offshore Services are expected to compete for the
3i Publishes 12-
Month State of the
North Sea
3i, a leading private equity and venture capital
firm, recently published its twelve month review
on the state of the North Sea’s oil and gas indus-
try, with proposals for its future survival.
The new 3,000 word report examines the
widespread changes that have taken place across
the industry since the ‘The Prospects for North
Sea Oil and Gas – Challenge and Opportunity in a
Maturing Province ’ was published last year.
The report looks at the very latest issues affect-
ing the industry from service companies and inde-
pendents through to the majors and super majors
operating in the North Sea’s UK and Norwegian
sectors.
Including input from companies such as Vetco
International, CH4 and RBG, the report analyses
the key trends that are transforming the North Sea
oil and gas sector today - trends that have major
ramifications for the majors, independents, con-
tractors and European governments. It identifies
five issues that create opportunities and challenges
for the hydrocarbons industry and for investors:
• A slowdown in UK exploration and produc-
tion mergers and acquisitions activity, driven by
sustained high oil prices
• A large fall in companies looking to enter the
North Sea with a switch to areas of greater geo-
political risk
• The need for new business and technical
solutions to unlock financially stranded North Sea
assets
• A sharp improvement in prospects for supply
companies with necessary strategic consolidation
• The emergence of Norway as a country for
private equity investment
3i’s head of oil and gas, Graeme Sword said,
that with an estimated 28 billion barrels equivalent
of oil and gas and a time horizon out to 2050 at
least, the UK North sea oil reserve is just past half
time and this represents a fantastic long-term
opportunity for companies. He points out that
broad-based confidence has recently returned to
the wider North West Europe Continental Shelf, as
evidenced by 70 exploration and appraisal wells
predicted for the UKCS this year and 40 for
Norway.
“Big oil companies are generating great
returns. However, the smaller, private companies
face challenges to acquire assets on the explo-
ration and production side, while on the service
side margins are still tight, even though oil prices
are sustained at a high level,” said Mr Sword.
“These sectors of the industry have to deliver new
ideas, technologies and business models if they
are to make the most of any opportunities.
Private equity is a critical source of both financ-
ing and knowledge, but perhaps, more importantly,
we offer access to business networks, industry
expertise and the experience of value creation.
The North Sea has changed rapidly over the
last few months. We are in a completely different
landscape now and how to take advantage of that
change is taxing all parties. However, if we get it
right, there is a brilliant adventure ahead for all of
us.”
For more information see www.3i.com
4 Offshore Source June, 2005
tower construction. which will ultimately be
installed in about 380 meters of water. Production
from the development is estimated at just under
200,00 barrels per day.
At the same time Chevron is also starting the
process for two new platforms for the Banzala field
in block 0 off Cabinda, angola. The contract calls
for two 550-ton jackets and 1,100-ton topsides, three
pipelines and a power umbilical. The terms state
that the jackets must be built in Angola.
Norsk Hydro Signs
Agreement with
Petrobras
Norwegian oil and gas company Norsk Hydro ASA
(NHY) said it has signed an agreement with Brazilian
state-owned oil company Petroleo Brasileiro SA (PBR)
to further subsea processing technology for deepwater
applications.
Hydro said the objective is to develop subsea-pro-
cessing systems that can handle heavier crude, and
qualify subsea equipment, systems and processes.
Petrobras will provide deepwater experience and
the opportunity to utilize the Marlim field as an area for
a new pilot installation.
Hydro said it will contribute its processing expert-
ise, use of its multiphase flow loop research facilities in
Norway and experience from Troll Pilot, which is the
only subsea-processing unit currently in operation.
Subsea-processing with seabed injection of pro-
duced water has potential to increase recovery from
mature fields. The technology also has the potential to
be competitive on new field developments where pro-
duced water management is considered critical over
time, or on fields with long tiebacks and flow assurance
issues where current technology is incapable of justify-
ing commercial development. Specific details of the
cooperation were not disclosed.
Technip and Hyundai
Heavy Industries
Awarded Akpo Field
FPSO Offshore
Nigeria
Technip and Hyundai Heavy Industries, have
been awarded a lump sum turnkey contract worth
approximately $1.08 billion from Total Upstream
Nigeria Limited, for the engineering, procurement,
supply, construction and offshore commissioning of
the Floating Production Storage and Offloading unit
(FPSO) of the Akpo field development, offshore
Nigeria.
The Akpo field, operated by Total Upstream
Nigeria Limited, is located on the Oil Mining
License (OML) 130 offshore Nigeria, in water
depths ranging from 1,100 to 1,700 meters.
Technip’s engineering center in Paris, France
will be in charge of the overall project management
and will perform the engineering phase. The FPSO’s
hull and topsides construction and integration will
be executed by Hyundai Heavy Industries.
Engineering and fabrication of various components
and structures of the FPSO topsides will be realized
in Nigeria.
The Akpo FPSO hull will have a storage capaci-
ty of two million barrels of oil and a large deck space
to accommodate more than 17 topsides modules.
Akpo’s FPSO which will be anchored in 1,325
meters of water will produce 225,000 barrels of oil
equivalent per day. It will include two processing
trains to separate out gas and water. This floater will
be 310 meters long and 61 meters wide and will
include a 240 bed-accommodation unit.
This fast-track project is due for completion in 40
months from contract award. The FPSO will be
ready for start-up in the third quarter of 2008. First
oil from Akpo field is scheduled for late 2008.
Kent Introl Valves has been awarded two contracts, with a total
value of almost £700,000, for the supply of control valves for oil and
gas projects off West Africa and in the UK sector of the North Sea.
An order has been placed by AMEC for valves for use in a project by a
major North Sea operator at a cost £350,000. With 150 valves delivered
to the original development in the 1990s, the latest contract will main-
tain consistency of product and will bring to over £1 million the value
of valves supplied directly. In addition, Kent Introl valves have been
provided by contractors and package suppliers. The company has also
been awarded a contract, valued at £320,000, by Vetco Aibel for valves
for installation on Bergesen’s FPSO (floating production, storage and
offloading) vessel, Berge Helene. The ship will operate for Woodside
Petroleum on the Chinguetti field, offshore Mauretania. Valves for the
two latest orders are being manufactured at the Brighouse, Yorkshire,
facility of Kent Introl, a division of Vetco Gray. For technical / project
related: Tel: + 44 (0) 1484 710311
Vienco, the innovative independent oil and gas specialist and
AGT Energy, the oilfield technology company, have announced
that they have formed a new jointly owned company, OilFlow
Solutions Ltd (“OilFlow”). The joint venture partners believe that
by working together through this new company they will have the
potential to revolutionize the production and transportation of
heavy oil and waxy crudes which is an international market valued
at $6 trillion. OilFlow will market a portfolio of new product sys-
tems, which are targeted at the flow optimization of viscous oils.
This could potentially lead to flow assurance from some of the
world’s most difficult reserves. The systems are based on a unique
patented core chemistry, which was originally discovered by lead-
ing scientists at Bradford University and developed for oilfield
application by AGT Energy Ltd. The first two unique product sys-
tems that will be commercialized are Proflux 200 and Proflux 300.
Both of these products are new combined chemical and engineer-
ing systems, which are designed to unlock marginal fields and
stranded assets. Proflux 200 reduces the viscosity of low API (low
specific gravity), heavy oil from a thick and slow flowing liquid to
a free flowing state while Proflux 300 stabilizes waxy crudes allow-
ing them to be pumped well below their original pour point tem-
perature. Proflux is currently being prepared for field trials on oil
fields in Colombia, Albania and India. OilFlow will initially
employ 10 people. This is expected to double by the end of 2006
and reach 40 by the end of 2007. The company will be based at
Vienco’s headquarters in Albyn Terrace, Aberdeen while its
research and development facility will remain at AGT Energy’s
facilities in Bradford, West Yorkshire. It is anticipated that the com-
pany will expand into its own purpose-built premises in Aberdeen
next year, which will include laboratories, office space and an engi-
neering service area. This exciting new technology to the world
market will have a significant impact on the economics of both
heavy oil and waxy oil production and transport.
Caption: Richard Selwa (left) and Mike Crabtree celebrate the
launch of OilFlow Solutions Ltd For further information please
contact: Richard Selwa at Tel: 01224 625501or Mike Crabtree at
Tel: 01274 734488
Subsea 7 announced an award notification of an EPIC (engineer-
ing, procurement, installation and construction) contract from
Petroleo Brasileiro S.A. (Petrobras). The contract, valued in
excess of US $70M, is for the installation of the Gas Export Pipeline
in the Golfinho field, located at Espírito Santo Basin. The work scope
includes engineering, procurement, fabrication, installation and pre-
commissioning of a 12” pipeline totaling 68km in length. The installa-
tion scope includes pre-lay survey along the proposed route, pipeline
installation and full-time ROV monitoring of the touchdown point and
a full as-built survey once the pipe has been tested and stabilized. The
pre-commission scope consists of flooding, pressure testing, gauging,
drying and filling with Nitrogen.
The Golfinho field is located offshore the state of Espírito Santo and
operations on this project will take place in water depths up to 1200
meters. The project will be executed, engineered and supported from
the Subsea 7 base in Niterói in the state of Rio de Janeiro.
The pipeline spools will be welded and prepared at the Subsea 7
Ubu base in the state of Espírito Santo close to Vitoria, Brazil. Offshore
work is due for completion during the first quarter of 2006 utilizing the
Subsea 7 pipelay vessel Skandi Navica.
OS_June 05final 5/24/05 4:30 PM Page 5
GX Technology Corporation (GXT),
a leading seismic imaging service
provider and a subsidiary of
Input/Output, Inc. (NYSE:IO),
announced the opening of an advanced
imaging center in Port Harcourt,
Nigeria. The Port Harcourt center is the
second of three advanced imaging centers
scheduled to be opened this year by GXT.
The first one was opened last month in
Caracas, Venezuela.. "The opening of the
Port Harcourt center is a key milestone in
the global expansion of our business," stat-
ed Mick Lambert, President, GX
Technology. "Our state-of-the-art Nigerian
facility will provide oil and gas customers
with the resources, technology and cus-
tomer services required to solve their most
challenging imaging problems in both
marine and land environments. Oil compa-
ny interest in West Africa continues to
increase. This center reinforces our com-
mitment to closely align our resources with
the needs of our customers and deliver
high quality seismic images in shorter peri-
ods of time." The Port Harcourt center will
provide advanced seismic imaging servic-
es, including pre-stack time migration
(PreSTM), pre-stack depth migration
(PreSDM), advanced velocity model build-
ing and a full suite of time processing serv-
ices. GXT's advanced imaging centers also
provide customers with local access to the
complete range of full-wave imaging prod-
ucts and services offered by GXT and I/O.
The company's imaging solutions are
designed to help oil and gas companies
better visualize and evaluate their subsur-
face reservoirs and well locations, both
onshore and offshore. The Port Harcourt
center opening is part of a broader joint
venture agreement between GXT and
Bulwark Services Limited (Bulwark).
Offshore Source June, 2005
Based in Port Harcourt, Bulwark is an
indigenous Nigerian company that pro-
vides oil and gas companies with special-
ized in-country services for exploration,
development, and production. Bulwark has
forged relationships with leading oil and
gas companies and has operated a seismic
services center for local and international
clients.
Foster Wheeler Ltd reported its sub-
sidiary Foster Wheeler International
Corporation has been awarded a proj-
ect management consultancy (PMC)
contract by Abu Dhabi Gas Industries
Ltd. (GASCO) for the engineering, pro-
curement and construction (EPC) phase
of the third Natural Gas Liquids (NGL)
train project at Ruwais, Abu Dhabi,
United Arab Emirates. The project, which
will be carried out by Foster Wheeler's UK
office, is one of three GASCO projects (the
other two being the AGD-II and OGD-III
facilities) in a suite of five integrated proj-
ects being undertaken in conjunction with
GASCO's sister companies, ADCO (for
gas gathering and reinjection), and
TAKREER (for condensate storage and
shipping). The whole suite of projects is
being undertaken on behalf of the Abu
Dhabi National Oil Company (ADNOC).
The third NGL train will process NGL
transported via a new pipeline from OGD-
III and AGD-II, supplemented by a new
LPG stream from the adjacent refinery,
owned by TAKREER. The NGL will be
processed in a 24,400 tonnes per day frac-
tionation and treatment train to produce
ethane, liquefied propane and butane and
pentane and heavier hydrocarbons. In addi-
tion, the project includes four 83,600m3
liquefied petroleum gas storage tanks, a
single 76,000m3 pentane storage tank and
a two-berth extension to the export jetty.
The project is expected to be completed by
the end of the first quarter 2008. For more
information see www.fwc.com
Clough has entered into an agree-
ment with Norwegian company, Solstad
Cable UK Limited, for the long term
charter of the ex. cablelay ship
“Normand Clipper”. The “Normand
Clipper” will be converted to an offshore
construction service vessel at the Ulstein
Verft AS yard in Norway and will be ready
for service from 1st June, 2005. The con-
version will equip the vessel with a spe-
cialist deep water and subsea construction
capability. Clough has an opportunity to
regain a presence in the subsea construc-
tion market once held through its 50%
ownership of the “MSV Maxita”.
Together, the “Normand Clipper” and
Clough’s pipelay crane barge “Java
Constructor” provide complementary
capabilities servicing full field develop-
ment projects. The SURF (subsea, umbil-
ical, riser & flowline) market is expanding
on a global basis. The signing of this
agreement will re-energize Clough’s sub-
sea construction business and effectively
position the Company to capture a larger
percentage of the SURF market the com-
pany reported. Following conversion, the
M/S "Normand Clipper will have an over-
all length of 127.5 meters and width of 27
meters. It will be equipped with a 250
tonne deep water crane, 60 tonne A-Frame,
140 tonne traction winch for ploughing
operations, diving moonpool, ROV launch
system and accommodation for 102 per-
sons. The vessel will be dynamically posi-
tioned to DP2 class. For more information
see http://www.clough.com.au
World News
Shell Looks at
GOM-Style TLP for
Malaysia
Shell is looking at a TLP development
concept for the Gumusut project offshore
Sabah, East Malaysia, in 1,000 meters of
water. The development is rumored to be big-
ger than Murphy Oil’s 400 million barrel plus
Kikeh field located near Gumusut.
Shell has used many TLPs in the past
including Auger, Brutus, Mars, Ram-
Powell and Ursa. First oil for Gumusut is
planned for 2008.
Shell Discovery in
Norwegian Sea
A/S Norske Shell reported that it has made
a significant discovery of gas in sandstones of
Jurassic age in the Onyx South West prospect
in Block 6406/9 of Production License (PL)
255 in the Norwegian Sea offshore mid-
Norway. Shell holds a 30% shareholding in
PL255 and is the operator of the block.
The company said the well was drilled to
a total depth of 5,052 meters below sea level,
in 308 meters of water, using the semi-sub-
mersible mobile drilling rig Transocean
Leader. A comprehensive logging, sampling
and testing program has now been completed.
Two zones were tested, each flowed at a max-
imum rate of about 1.4 million cubic meters
per day.
PL255 was awarded in the 16th
Norwegian licensing round in 2000. Shell's
partners in this license are Petoro (30%),
Statoil (20%) and Total (20%).
5
OS_June 05final 5/24/05 4:31 PM Page 6

GOM News
2005 Hurricane Season Outlook
It is hard to believe after the grueling hurricane sea-
son of 2004 that it is time again to start and prepare for
the 2005 hurricane season. Meteorologists at Weather
Research Center - Houston felt that the 2004 Hurricane
season would be a busy season for the Gulf of Mexico
and it was, with Hurricane Ivan moving over the eastern
oil leases, causing severe damage to offshore equipment.
WRC’s Orbital Cyclone Strike Index [OCSI®] gives
the Gulf of Mexico oil leases an 81% chance of experi-
encing a tropical storm or hurricane this year. There
were two years in this phase of the OCSI which had at
least 5 storms move over the oil leases, 1932 when a
strong hurricane made landfall along the northern Texas
coast and 1985 when Hurricane Juan and Hurricane Kate
caused many hours downtime for the offshore industry.
The sections of the United States coastlines with the
highest probability of a land falling tropical storm or hur-
ricane in 2005 are the Texas Coast and the west coast of
Florida which both have a 70% chance of experiencing a
tropical system this year. The section of the coast from
Georgia to North Carolina has the second highest risk
with a 60% chance of experiencing a land falling tropi-
cal storm or hurricane.
Below is the forecast for the 2005 Hurricane Season. 1942—Category 3 hurricane made landfall in Central
The table not only gives the OCSI percent risk of land- Texas in August.
falling storms along the North American Coast but also 1985—Hurricane Gloria, a Category 3 storm, made land-
gives the percent risk, based on the average number of fall along the EastCoast of the U.S.
landfalls years for a particular section using the entire 1995—Hurricane Opal became a Category 5 storm in the
record 1871 to 1995. eastern Gulf of Mexico but weakened to a Category 3
storm before making landfall on the west coast of
2005 OCSI FORECAST FOR THE ATLANTIC Florida.
The OCSI is also indicating a long season with 3
COAST OCSI CLIMATOLOGY years out of the 11 years in this Phase of the OCSI hav-
Mexico 40% 40% ing storms as early as May and 2 years out of the 11
Texas 70% 51% years having storms in December. Four out of the 11
Louisiana to Alabama 50% 59% years had 5 or more storms make landfall somewhere on
West Florida 70% 71% the United States coast. Five out of the 11 years had hur-
East Florida 30% 41% ricanes that were category 3 or higher on the
Georgia to N. Carolina 60% 56% Saffir/Simpson Damage Potential Scale.
East Coast of US 20% 36% During the 20 year period 1985 to 2004, there have
Gulf Oil Blocks 81% 88% only been three years 1987, 1992 and 1999 when a storm
Bahamas 70% or hurricane did not make landfall in the section of the
U.S. coast that had the highest risk. In all three of these
In order to compare WRC’s Annual Hurricane years, cyclones made landfall in the section of the coast
Outlook to other seasonal forecasts, WRC meteorolo- with the second highest risk. This gives the OCSI an
gists issue secondary predictors as shown in the table 85% accuracy rate.
below. The OCSI model is based on the premise that there
are orbital influences that are reflected in the global cir-
Secondary 2005 Predictors from the OCSI: culation pattern on the sun and subsequently the global
circulation pattern of the earth. The sun’s orbit influences
Number of Storms: 10 the sun spot cycle. Using this solar cycle to make an
Number of Hurricanes: 5 index, hurricane climatology has been summarized into
Number of Hurricane Days: 21 an index called the OCSI.
US Landfalls: 4 This index has been used since 1985 to make annual
Cat 3 or Higher Storms: 50% forecasts of which section of North America has the
highest risk of experiencing a tropical storm or hurri-
The OCSI has been used by WRC meteorologists Jill cane. In addition to its ongoing research, the Center also
F. Hasling and Dr. John C. Freeman since 1985 to make provides storm and hurricane information via the
an annual outlook for the section of the US coast which Internet through Storm Navigator®. This service helps
has the highest risk of storm landfall. The years which people navigate weather information on the Internet as
make up this phase of the OCSI are 1876, 1887, 1898, well as providing detailed storm updates and related
1910, 1922, 1932, 1942, 1953, 1963, 1973, 1985 and information.
1995. Some significant tropical events in those years All of the Center’s projections, including past predic-
were: tions, can be found at http://www.wxresearch.com/out-
1910—Category 3 hurricane made landfall over the look.
southwest Florida coast in October.
1932—Category 4 hurricane made landfall south of
Galveston, Texas in August.

MMS Funds Hurricane Ivan Royalty-in-Kind Oil

Impact Studies
The Minerals Management Service has
awarded six contracts totaling over $600,000 for
studies of the Impact of Hurricane Ivan on the off-
shore oil and gas structures of the Gulf of Mexico.
These studies will analyze and assess the conse-
quential damage to structures and pipelines,
determine the effectiveness of current design
standards and pollution-prevention systems and
develop recommendations for changes to indus-
try standards and MMS regulations, if needed.
Johnnie Burton, Director of the MMS, stated
that, “We are very pleased that, in spite of the 140
miles per hour winds of Hurricane Ivan, there was
no loss of life and no significant pollution. We
attribute this to the well-built facilities and the
noble efforts to maintain and operate them.
However, there is still room to improve. In the
wake of this hurricane, 31 platforms were seri-
ously damaged, several were destroyed, and more
than ten percent of Gulf of Mexico production
was interrupted for at least four months. Studies
like these will help MMS continue to ensure that
the safe, clean operation of the offshore industry
will be able to withstand even hurricanes like
Ivan.”
Projects were awarded competitively, and
through cooperative agreements with the Texas
Engineering Experiment Station in support of the
Offshore Technology Research Center.
Burton said, “These studies will address short
and long-term adjustments in MMS’s technical,
engineering, and geologic standards and regula-
tions to ensure that offshore oil and gas produc-
tion remains safe, environmentally friendly, and
less susceptible to interruption.”
Awards Granted:
• Texas A&M University, Offshore Technology
Research Center, “Assessment of Drilling and
Workover Rig Storm Sea Fastenings on Offshore
Floating Platforms During Hurricane Ivan”
• Offshore Risk & Technology Consulting,
Inc., “Examination and Review MODU Loss of
Stationkeeping Ability During Hurricane Ivan
and Assess Mooring Standards and Criteria to
Prevent Similar Failures”
• Det Norske Veritas, “Pipeline Damage
Assessment from Hurricane Ivan in the Gulf of
Mexico”
• Energo Engineering, Inc., “Assessment of
Fixed Offshore Platform Performance in
Hurricanes Ivan, Andrew and Lili”
• Texas A&M University, Offshore Technology
Research Center, “Mudflows and Mudslides
During Hurricane Ivan”
• William Lettis & Associates, Inc., “A Pilot
Study for Regionally-Consistent Hazard
Susceptibility Mapping of Submarine
Mudslides”
Suspended
The U.S. House Energy and Commerce Committee has voted to
require the U.S. Secretary of Energy to suspend deliveries of royalty-in-
kind oil to the U.S. Strategic Petroleum Reserve until the price of oil
falls below $40 a barrel for two consecutive weeks on the New York
Mercantile Exchange.
The royalty-in-kind program allows oil companies producing in fed-
eral Gulf of Mexico waters to pay royalties to the government with
crude oil rather than cash. Nymex May crude oil contracts closed at
$51.86 a barrel.
The panel also voted to require the Department of Energy to create
enough storage sites for the SPR so it could be filled to 1 billion barrels.
The SPR, which has crude oil stored in salt caverns in Louisiana and
Texas, is expected to reach its current 700 million barrel target by July.
LAGCOE Announces
New Leadership
The Louisiana Gulf Coast Oil Exposition (LAGCOE) is under new
leadership as it gears up for a historic 2005 exposition. LAGCOE offi-
cials recently announced the election of a new slate of officers to spear-
head planning for this year’s show. Al Thomas of Thomas Energy, Inc.
will serve as chairman of LAGCOE 2005. David Shealy, district man-
ager for Hughes Christensen, has been named co-chairman, and Howard
Wilson, of Novus Louisiana, Inc., has been elected treasurer. Sally
Ware continues as event coordinator and director of the exposition.
Set for October 25-27, 2005 in Lafayette, La. at the Cajundome and
Convention Center, the expo attracts an international audience of more
than 16,000 petroleum industry attendees.
For more information on LAGCOE 2005, visit their Web site at:
www.LAGCOE.com.

6 Offshore Source June, 2005

OS_June 05final 5/24/05 4:31 PM Page 7

The Peak Group, whose headquar-

ters is in Aberdeen, has been based in
GE Energy’s Pipeline Group Joins PRCI PHI Wins
Houston for three years and has
increased its office space 10 fold to
GE Energy’s pipeline services group has
joined the Pipeline Research Council
Industrial and GE Infrastructure also have
joined as associate members to maximize
Deepwater
4,000sq ft with a move into 1 Greenway
Plaza in the heart of Houston. The
International, Inc. (PRCI), a global network
of energy-transmission companies, as the
the company’s contributions to the
Virginia-based organization.
Contract
Houston operation, headed by The Peak first associate member in the organization PRCI is recognizing GE’s role as a lead- Petroleum Helicopters, Inc. ("PHI")
Group vice president Michael Williams, 52-year history. ing provider of pipeline services as well as (Nasdaq:PHEL) (Nasdaq:PHELK)
is the hub of the group’s activities in the PRCI is the energy pipeline industry’s the company’s overall marketing reach announced that the Company was award-
Americas and has led to the company leading, collaboratively funded technology around the world, said Mike Simmons, ed a three-year contract with one two-year
securing major contracts in various loca- development organization. It identifies General Manager for GE Energy’s pipeline option to provide helicopter services for
tions including the United States, Canada, industry needs, including products and serv- services group based in Northumberland, BHP Billiton in the U. S. Gulf of Mexico.
Mexico, Argentina, Brazil, Venezuela, ices, and helps develop safe, reliable, envi- England. The contract is for one new Sikorsky S-92
Peru, Trinidad and Bolivia. The expan-
ronmentally compatible and cost-effective For much of its history, the council had transport category aircraft and one new
sion in the Americas mirrors Peak’s
solutions. concentrated on natural gas-related pipeline Sikorsky S-76C++ aircraft with options
worldwide growth in activity, which will
PRCI is comprised of some of the technology. However, PRCI recently broad- for additional aircraft. Financial terms of
see it drill 30 wells this year with fore-
world’s largest energy-producing companies, ened its mission to develop integrity and reli- the transaction are proprietary and were
casts for a sustained growth in the
demand for its international well project including Exxon Mobil, Saudi Aramco, ability solutions for both liquid and gas not disclosed.
management services in 2006. Sunoco, BP, Enbridge, Chevron Texaco, Gaz pipelines. The 35-member, non-profit PRCI Al A. Gonsoulin, Chairman/CEO of
Mr. Williams said: “The Peak Group as a de France, Petrobras and El Paso Corp. is expanding its membership as the organiza- PHI, said, "We are very pleased with this
whole has benefited from the establish- GE Energy’s pipeline services group is tion looks to sustain a $15 million annual contract award by BHP Billiton. We believe
ment of a presence in Houston. We had part of the oil and gas division. GE technology development program. In addi- the S-92 is rapidly becoming the aircraft of
already a reputation in other parts of the Transportation, GE Consumer & tion to GE, PRCI named several other com- choice for deepwater applications.
world as the expert in well construction
performance management and we are
now growing this business in the
Americas. Demand for our services has
reached such a level that we simply need- )COMS)NTRINSICALLY3AFE-)3
ed more space to operate. Every aspect of
our business is expanding, from our inno-
vative probabilistic software application
Ê7",Ê",Ê
Ê6 
P1, our manpower services division Peak
Consultancy Services to our well man-
agement arm Peak Well Management. We
are actively exploring several opportuni-
ties in the Gulf of Mexico, Southern
Louisiana and Southern Texas where we
are well positioned to deliver top class
well management services through a
combination of our excellent local knowl-
edge coupled with proven international
expertise.” In line with its plans to cater
^ÓääxÊVœ“Ê
“iÀˆV>ʘV°ÊUÊÓÎnäÊ££È̅Ê
Ûi°Ê ]Ê iiÛÕi]Ê7
ʙnää{ÊUÊ/…iÊVœ“ʏœ}œÊˆÃÊ>ÊÀi}ˆÃÌiÀi`ÊÌÀ>`i“>ÀŽÊœvÊVœ“ʘV°ÊÇ{ÈnÊÊÊ

for the anticipated work in 2006, Peak is

looking to recruit up to 15 key personnel
immediately. The available jobs include
well team leaders, senior drilling engi-
neers, drilling superintendents, comple-
tions engineers, technical assistants and
well test specialists. The posts will be
based at Peak’s offices in Aberdeen,
IÊ-‡Ç\ÊÎäʓˆ˜ÕÌiÃÊ>ÌʣʓiÌiÀÊ՘`iÀÊÜ>ÌiÀ°IIÊx¯Ê/8]Êx¯Ê,8]ʙä¯ÊÃÌ>˜`LÞ]ÊÌÞ«ˆV>°ÊÊ

Perth, Dubai and Houston. The Houston

office currently employs eight staff and
has three full-time positions for a senior
drilling manager and two engineers.
Andrew Paterson, managing director of
the Peak Group, said: “The Houston
office has really established itself as cor-
nerstone of our business plans. The
appointments there are in line with our
global program of activity this year puts
us at the forefront of international drilling
activity in 2005. Houston will play a sig-
nificant part in our continued growth
throughout 2006.”

Vetco Gray U.K. Limited has been ,ÊEÊ
, Ê


-ÊqÊ
Ê Ê" ÊÊ-*
]Ê-1  ,-  IÊ,
"
awarded a five-year contract by Kerr-
McGee North Sea (U.K.) Limited, a -̜«ÊV>ÀÀވ˜}ʜ˜iÊÀ>`ˆœÊvœÀÊ̅iÊÛiÃÃiÊ>˜`ʜ˜iÊvœÀÊ̅iÊLÕȘiÃðÊVœ“½ÃÊnnÊ-ʈÃÊ

Ê
wholly owned affiliate of Kerr-McGee
Corp. (NYSE: KMG), for the provision >««ÀœÛi`Ê̜ÊܜÀŽÊVœ““iÀVˆ>]ʓ>Àˆ˜i]Ê>˜`Ê£äÊÜi>̅iÀÊV…>˜˜iÃÊqÊ>Êˆ˜Êœ˜iÊÃÕL“iÀÇ
of subsea trees and subsea wellhead
systems together with associated mainte- ˆLi]Êi>ÃÞÊ̜ÊÕÃiÊ«>VŽ>}i°ÊÌÃÊ«œÜiÀvՏʣÇääʓ
…ʈ‡ˆœ˜ÊL>ÌÌiÀÞʏiÌÃÊ̅iÊnnÊ-ÊÃÌ>ÞÊ 7
/ ,*,""Ê-*
 ,‡
\Êʇ£ÎnÊ-
nance and support services. The contract
˜Ê œ«Ìˆœ˜>Ê ëi>ŽiÀ‡“ˆVÀœ«…œ˜i]Ê Ì…iÊ ‡£ÎnÊ -]Ê
scope also provides an opportunity for V…>À}i`Ê vœÀÊ ÌÜœÊ vՏÊ ňvÌÃÊ ­iÛi˜Ê >ÌÊ xÊ Ü>ÌÌÃtII®]Ê >˜`Ê Ì…iÀi½ÃÊ ˜œÊ “i“œÀÞÊ V…>À}ˆ˜}Ê «ÀœÛˆ`iÃÊ Àiˆ>Li]Ê Ü>ÌiÀ«Àœœv]Ê >˜`Ê ˆ˜ÌÀˆ˜ÃˆV>Þ‡Ã>viÊ
provision of additional services, including Ài“œÌiʜ«iÀ>̈œ˜ÊœvÊ̅iÊ
‡nnÊ-°
WITS™ (Well Intervention and Test ˆÃÃÕiðÊ
ÊÃ܈˜}‡ÌÞ«iÊLiÌÊVˆ«Ê…œ`ÃÊ̅iÊnnÊ-ÊÃiVÕÀiÞÊ܅ˆiÊ>œÜˆ˜}Êv>ÃÌÊÀi“œÛ>°ÊiÌÊ
System™) and specialty connectors and
pipe. Equipment supplied under the con- œ˜iÊÀ>`ˆœÊ`œÊ̅iÊܜÀŽÊœvÊÌܜ°Ê6ˆÃˆÌÊޜÕÀÊ>Õ̅œÀˆâi`ÊVœ“Ê`i>iÀÊ̜`>Þ°Ê-ˆ“«ÞÊ̅iÊLiÃÌt œÀʓœÀiʈ˜vœÀ“>̈œ˜\Ê
tract shall be provided by Vetco Gray’s ­Ü®ÊÊÊÜÜÜ°ˆVœ“>“iÀˆV>°Vœ“
facilities in Aberdeen and Montrose, ­i®ÊÊÊÊÃ>iÃJˆVœ“>“iÀˆV>°Vœ“
Scotland. An initial order of drill-thru
subsea trees and wellhead systems has ­«®ÊÊÊÊ£‡nää‡1-
‡
"
already been placed for Kerr-McGee’s
2006 drilling program. Drill-thru tech-
nology offers an opportunity to signifi-
cantly reduce costs in the event of future
workovers or sidetracks. Since 2000,

/ 1,ÊÊÊÊÊÊÊÊ ,
6 ,ÊÊÊÊÊÊÊÊ
6" 
-ÊÊÊÊÊÊÊÊ 
, ÊÊÊÊÊÊÊÊ 
Ê"  ÊÊÊÊÊÊÊÊ -9-/ -
Vetco Gray has delivered 20 horizontal
subsea trees to Kerr-McGee. Vetco Gray
won the contract in competitive tender.

Offshore Source June, 2005 7

OS_June 05final 5/24/05 4:32 PM Page 8
GOM News
Gulfmark Offshore
Reports Revenue and
Vessel Acquisition
GulfMark Offshore, Inc.
(Nasdaq:GMRK) announced a new
record in quarterly net income of $8.9
million, or $0.43 per share (diluted) for
the quarter ended March 31, 2005, on
the highest quarterly revenue ever
achieved, $48.1 million. This compares
to a net loss of ($4.9) million, or ($0.25)
per share (diluted) on revenue of $31.6
million for the first quarter of 2004,
before the change in accounting for dry
dock expenditures. In addition, operat-
ing income of $15.1 million for the first
quarter of 2005 surpassed the previous
record of $11.6 million set in the third
quarter of 2001, was more than double
the $7.3 million for the fourth quarter of
2004 and was a vast improvement over
the operating loss of ($0.1) million for
the first quarter of 2004.
The significant improvement in the
first quarter of 2005, compared to the
same period in 2004, was due primari-
ly to the continued strengthening of
dayrates in the North Sea, the addition
of two vessels and improved utilization
in the North Sea and Southeast Asia.
When compared to the preceding
quarter (the strongest quarter in 2004),
average dayrate in the North Sea
increased 14.9% from $14,134 to
$16,251 while utilization in the region
improved from 83% in the fourth quar-
ter of 2004 to 90% in the first quarter of
2005. Day rates and utilization in the
Petrobras to Invest $1.9
Billion in Gulf of Mexico
Petrobras SA (PBR) will invest $1.9
billion in Gulf of Mexico oil and gas
exploration and development over the
next five years, Petrobras America Inc.
President Renato Bertani said at a con-
ference recently.
The Brazilian state oil giant, which was
the leading bidder at an eastern Gulf of
Mexico lease sale held March 16, will
concentrate in three areas - ultra-deepwa-
ter, deep shelf, and the western Gulf of
Mexico, Bertani said.
"It is important for us to focus,"
Bertani said. "The Gulf is huge."
The company plans to spend $400
million in exploration and $1.5 billion in
development, Bertani said.
Ohmsett—The National Oil Spill
Response Test Facility
Ohmsett (New Jersey) is an integral
part of the Minerals Management
Service (MMS) oil spill response
research program. The facility directly
supports the MMS goal of ensuring that
the best available oil spill detection, con-
tainment and removal technologies are
available to protect the U.S. coastal and
ocean environment from spills. Ohmsett
is a large, above ground test tank which is
unique in the world in it's ability to tow
full sized oil spill containment and clean
up equipment, such as booms and skim-
mers, in the presence of a variety of crude
oils and refined petroleum products. The
Ohmsett tank is over two football fields
long at 667 feet, it is 65 feet wide and 11
feet deep. The length of this gigantic tank
can seem short as you move down the
tank towing equipment at speeds up to
6.5 knots. It's especially exciting to tow
8 Offshore Source June, 2005
Americas and Southeast Asia markets
remained consistent over the sequential
periods from the fourth quarter of 2004
through the first quarter of 2005.
Mr. Bruce Streeter, President and
COO of the Company, commented on
the record results for the quarter: “We
are now seeing the benefits of the new-
build vessel program we began four
and a half years ago. The addition of
the new vessels, the acquisition of the
Highland Citadel in December of 2004
and the repositioning of certain vessels
over the last several years all were crit-
ical factors in generating the significant
turnaround in our earnings. The signif-
icant increase in day rates and utiliza-
tion in the North Sea are a reflection of
the increase in oil and gas exploration
expenditures by our customers in that
region and across the other major oil
and gas basins worldwide. We have
noted and are pleased to see growing
interest in deepwater projects and harsh
environment areas around the world.
Our strategic positioning of our vessels
in these regions will allow us to take
advantage of this markedly improved
oil service market. The outlook for the
remainder of 2005 is encouraging as
we see increasing contracts, some now
extending well into the period 2006 --
2007. In addition, the number of North
Sea construction projects slated for the
2005 and 2006 construction seasons
Petrobras plans to drill seven wells in
the Gulf of Mexico in 2005, four as a
partner and three as an operator. The
company plans to drill four or five wells
in 2006 - if it finds the necessary equip-
ment, according to Bertani.
"Availability of rigs, especially in
deepwater, is very tight," said Bertani.
"There's an element of uncertainty
there."
Petrobras is also interested in the
Mexican part of the Gulf of Mexico -
currently off-limits to stake ownership by
foreign oil companies.
"We want to be around for the day
when it will eventually become open,"
said Bertani.—Dow Jones Newswires.
equipment in waves, up to 3 feet in height
that can be generated by the artificial
wave maker at Ohmsett. Ohmsett has
also been used to evaluate sensors that
detect floating oil and measure the slick's
thickness, to calculate optimum timing
for the emptying of temporary storage
devices, and to evaluate the operational
efficiency of sorbent materials that
adsorb or absorb spilled oil. Ohmsett rep-
resents a necessary intermediate step
between small scale "bench testing" and
open water testing of equipment in
uncontrollable, highly variable and
always expensive conditions.
The U.S. Coast Guard (USCG) and
USN, both use the facility for training
their emergency response personnel.
Ohmsett is the only facility that can actu-
ally train with oil.
will support strong demand for vessels.
These factors, when combined with an
increasing demand for equipment in
other exploration and production espe-
cially deepwater units, afford some vis-
ibility for the future of the offshore sup-
port vessel market. We anticipate that
this will result in a continuing strong
market throughout the balance of 2005
and into 2006.”
"We are currently in the process of
mobilizing two vessels, which have just
been completed in Singapore, to
Mexico where they will begin five-year
contracts at the end of the second quar-
ter. In addition, we have recently signed
a purchase agreement for a new 5,150
BHP, 60 Ton Bollard Pull AHTS
(anchor handling towing supply vessel)
currently being constructed in China at
a cost below $10.0 million. This vessel
is due to deliver in the second half of
2005 and will be deployed to the
Southeast Asia market where there is a
newer, more technologically advanced
vessels. The Company also has a first
right of refusal on an identical vessel
which is due to deliver late in 2005 or
early in 2006. of the evolution of our
Southeast Asia fleet. This vessel, in
addition to the units previously trans-
ferred to the region, will enhance and
expand our capacity to meet customer
needs in Southeast Asia."
Chevron
Orders Two
LNG Carriers
ChevronTexaco Corp. reported it has
ordered two liquefied natural gas (LNG)
carriers from Samsung Heavy Industries
of South Korea to support the planned
growth in the company's LNG business.
The new LNG carriers will have a
capacity of 154,800 cubic meters each.
Both carriers will be of membrane-type
design and equipped with dual fuel
diesel-electric propulsion. The two carri-
ers are planned for delivery in 2009.
ChevronTexaco Shipping President
Mike Carthew said: "ChevronTexaco is
committed to bringing its strong record of
safety, reliability and environmental per-
formance to the operation of this newest
generation of LNG carriers. The order for
two LNG carriers marks a milestone for
ChevronTexaco by complementing the
various LNG export and import terminals
the company is developing worldwide."
The two LNG carriers will be operat-
ed by ChevronTexaco. The company cur-
rently operates a fleet of approximately
30 oil and gas tankers.
For more information see chevrontex-
aco.com
Torch Assets
on the Block
The fleet of now bankrupt Torch
Offshore, will be auctioned off on June 2,
in New Orleans. Cal dive International
and creditor GE Capital have already
placed bids that must be beat in order to
be valid. Cal Dive offered $92 million for
the majority of Torch’s fleet which
includes the Midnight Express, their
deepwater pipelay vessel.
Phoenix International, Inc. has announced
the opening of new offices in Houston, TX and
in Norfolk, VA. The new facilities are in
response to the diversification of Phoenix busi-
ness in the Gulf of Mexico (GOM), and the
increasing demand for its underwater ship repair
business in the Hampton Roads area. The
Houston office is home to Phoenix’s Subsea
Projects Group whose business will be to support
GOM deepwater oilfield construction activities.
The office is directed by Mr. Karl Witherow, a
manager with 24-years of experience in subsea
and staffed by personnel with more than 100
years of collective subsea construction experi-
ence in the offshore oil and gas industry. The
Subsea Projects Group will primarily focus on
light to medium subsea construction support
projects using large DP construction vessels for
the expansion of Phoenix’s existing ROV, diving,
services. The Norfolk operations office opened
to better serve the underwater ship husbandry
needs of our Navy and commercial clients in the
Hampton Roads area. This office will be under
the direction of Mr. Chris Klentzman, P.E. who
has over 23-years experience in marine opera-
tions and ship repair. Personnel; including diving
superintendents, diver-tenders; and underwater
husbandry equipment has been positioned in
Norfolk to provide a mobile, rapid, and cost effi-
cient response to ship repair needs. This office
will also concentrate on expanding support to the
marine construction and marine structure repair
markets. For further information: Houston –
Karl Witherow: 713.467.4200, Phoenix’s Subsea
Projects Office, Houston
Offshore Logistics, Inc. (NYSE:OLG) has
announced that Drury A. Milke, its Executive
Vice President - North America and President
of its affiliate, Air Logistics, LLC, has been
terminated and that H. Eddy Dupuis, its Vice
President, Chief Financial Officer, Secretary, and
Treasurer, has resigned from the Company.
These actions arose in connection with the previ-
ously-announced Audit Committee review of
certain payments made in a foreign country. The
review of these payments, which is being con-
ducted with the assistance of outside counsel,
has been expanded to cover other arrangements
in foreign countries. To date, the Company has
not identified any material adjustments to its his-
torical financial statements in connection with
the Audit Committee's review, and the Company
does not believe, based on information devel-
oped to date, that any such adjustments are like-
ly to be required. The Company has started a
search for a replacement chief financial officer
and anticipates that the filing of its Annual
Report on Form 10-K for its fiscal year ended
March 31, 2005 may be delayed. As previously
disclosed in the Company's Form 10-Q for the
quarter ended December 31, 2004, the Company
voluntarily advised the staff of the U.S.
Securities and Exchange Commission (SEC) of
the Audit Committee's review (which is ongoing)
and the SEC has initiated an investigation.
Additional information is included in the Form
10-Q regarding these matters and potential out-
comes. Offshore Logistics, Inc. is a major
provider of helicopter transportation services to
the oil and gas industry worldwide.
Energy Partners, Ltd announced that the
Board of Directors voted to authorize an
increase in the capital budget for 2005 to $265
million and appointed Phillip A. Gobe as
President in addition to his current role as Chief
Operating Officer. The new 2005 capital budget
of $265 million represents a 10 per cent increase
over the previous 2005 capital budget of $240
million and a 39 per cent increase over the 2004
capital budget of $190 million. The Company
said that the increase in the budget will fund
additional exploratory activity as well as the
development of early 2005 exploratory success-
es. EPL said that it expects the expanded budg-
et will be funded entirely from internally gener-
ated cash flow.
OS_June 05final 5/24/05 4:32 PM Page 9

Shell Delays Mars

TLP Repairs Again GOM News

Due to ongoing loop currents in the currents at Mars, located in Mississippi

Mars Basin area of the Gulf of Mexico,
Shell is delaying the flexjoint repairs to its
Mars tension leg platform (TLP). Subject
to appropriate regulatory approvals, Shell
will first complete its flexjoint repairs at
the Auger TLP. Auger is located in
Garden Banks 426 in 2,860 feet of water.
The flexjoint repairs at Auger are
expected to commence on or about June
1st, weather permitting, and take 10-14
days to complete. Production will be par-
tially curtailed (60% boe remains on line)
for part of the repair work period and
completely shut in for the remainder.
Shell will continue to monitor the loop
Canyon Block 807. Weather permitting;
Shell expects it will be able to complete
those repairs in the first half of July. The
Mars flexjoint repairs will take an esti-
mated 14 days to complete.
Loop currents form when a portion of
the Gulf Stream enters the Gulf of Mexico
through the Yucatan Straits, flow north,
and turn east and south to exit the Florida
Straits forming a ‘loop’. The loop current
is a permanent oceanographic feature in
the Gulf of Mexico and, at certain times
of the year, can extend north far enough to
impact deepwater lease blocks in the cen-
tral Gulf of Mexico.

BP Pipeline Recognizes Global

Industries for Safety Record
Global Industries, Ltd. (Nasdaq:
GLBL) announced that BP Pipelines
(North America) has recognized Global
Industries Offshore for its safety record
and named Global Industries as a safe
contractor. In a letter from BP North
America’s Michael J. Schwerha, BP
thanked Global Industries and “its entire
team for their outstanding health, safety,
and environmental performance….Your
entire team should be extremely proud of
the tremendous effort it has made in
working towards an accident-free work-
place.”
Eddie Evans, Global’s Vice President -
Health, Safety and Environmental, stated,
“During 2004, Global Industries and BP
North America worked side-by-side inci-
dent-free to achieve BP’s guiding princi-
ples of no accidents, no harm to people,
and no damage to the environment. The
BP Mardi Gras project, a collaboration of
Global Divers, DLB Cherokee, MV Sea
Leopard, and MV Christopher, con-
tributed significantly to Global Industries’
recognition as a safe contractor. This
award is a tribute to all Global men and
women who put safety first.”
Global Industries was the only marine
contractor to receive an HSE award pre-
sented at the BP Safety Forum held in
Galveston on May 10, 2005. James J.
Doré, Global Divers & Marine
Contractors’ (GDMC) President, accepted
the HSE award on behalf of Global
Industries Offshore. GDMC is a division
of Global Industries Offshore, LLC.

2004 Deepwater Discoveries in the

Gulf of Mexico
The Minerals Management Service reports that there were 15 deepwater discoveries in
2004. Twelve were drilled in water depths greater than 5,000 feet. The discoveries demon-
strate that active exploration in the deepwater Gulf of Mexico continues to help America
meet her energy needs.
Tobago Jack
Shell Offshore ChevronTexaco
Alaminos Canyon 859 Walker Ridge 759
9,627 ft 6,965 ft

Silvertip La Femme
Newfield Exploration
ChevronTexaco Mississippi Canyon 427
Alaminos Canyon 815 5,800 ft
9,226 ft
Thunder Hawk
Tiger Murphy Exploration
ChevronTexaco Mississippi Canyon 734
Alaminos Canyon 818 5,724 ft
9,004 ft
Goldfinger
Cheyenne Dominion Exploration
Mississippi Canyon 771
Anadarko Petroleum 5,423 ft
Lloyd Ridge 399
8,987 ft Ticonderoga
Kerr-McGee
Atlas NW Green Canyon 768
Anadarko Petroleum 5,250 ft
Lloyd Ridge 5
8,810 ft Puma
BP Exp. & Prod., Inc.
South Dachshund/ Mondo Northwest Green Canyon 823
4,130 ft
Anadarko Petroleum
Lloyd Ridge 2 Dawson Deep
8,340 ft Kerr-McGee
Garden Banks 625
San Jacinto 2,900 ft
Dominion Exploration
Desoto Canyon 618 Crested Butte
7,850 ft Nexen Petroleum
Green Canyon 242
2,846 ft

Offshore Source June, 2005 9

OS_June 05final 5/24/05 4:35 PM Page 10
Exploration & Drilling
Baker Hughes Rotary Rig Count—May 20, 2005
Location
Week
of 4/15
Land
Inland Waters
1202
23
Offshore 90
United States Total 1348
Gulf of Mexico 87
Canada 267
North America 1582
Anadarko Announces
2005 Discovery
Anadarko Petroleum Corporation has
announced that its deepwater Genghis Khan well
in the Gulf of Mexico is a discovery, with open-
hole logs indicating about 110 feet of high quali-
ty net oil pay in the lower Miocene formation and
apparent additional pay uphole in the middle
Miocene section. First production is expected in
2006 through subsea tieback to the Marco Polo
platform, located 2.4 miles from the discovery.
The discovery, located in a water depth of
4,300 feet on Green Canyon Block 652, was
drilled to a total depth of about 26,000 feet in
approximately half the time originally forecast. A
delineation well is planned immediately.
Anadarko has a 100 percent working interest in
the block.
“Our deepwater Gulf of Mexico program is
set to be the largest single contributor to
Anadarko’s growth strategy over the next four
years,” said Robert Daniels, senior vice president
exploration and production. “Having the Marco
Polo facility available to produce the Genghis
Khan discovery greatly enhances the project’s
returns, both by accelerating the development
plan and leveraging off existing assets.”
Anadarko plans to drill six more exploration
wells in the Gulf of Mexico this year. The com-
pany owns an average 73 percent interest in 230
blocks in the Gulf.
Diamond Offshore—
1st Quarter 2005
Results
Diamond Offshore Drilling, Inc. (NYSE:DO)
reported net income of $30.1 million, or $0.23
per share on a diluted basis, for the first quarter of
2005, compared to a net loss of $11.0 million, or
$0.08 per share on a diluted basis, in the same
period a year earlier. Revenues for the first quar-
ter of 2005 were $258.8 million, compared to rev-
enues of $184.2 million for the first period in
2004.
The improvement in operating results reflects
a continuation of higher dayrates and rig utiliza-
tion across the Company's entire fleet, and is
indicative of the present worldwide offshore
drilling market. Currently, the fleet's highest
dayrates in the Gulf of Mexico include: $172,500
for the 4th generation semisubmersible Ocean
Star for work commencing in the third quarter of
2005; $125,000 for the mid-water floater Ocean
Voyager for work beginning in mid-November;
$76,000 for the 350-ft. jack-up Ocean Titan for
work commencing in mid-July; and $60,000 for
the 300-ft. jack-up Ocean King for work begin-
ning in early June 2005. The Company is current-
ly bidding renewals in international markets at
dayrates also reflecting increases.
Larry Dickerson, President and Chief
Operating Officer, said, "Approximately 83% of
the Diamond Offshore fleet is contracted or com-
mitted in 2005 and we are currently building
backlog into 2006, with about 25% of our fleet
contracted or committed”
10
+/-
Week
Ago +/-
Year
Ago
6
-1
1196
24
146
2
1056
21
2 88 -5 95
7 1308 143 1172
2 85 -6 93
12 255 66 201
19 1563 209 1373
Shell Awards
Halliburton Contract
for Integrated
Drilling Services in
GOM
Energy Services Group has been awarded a
two-year contract, with the option for an addi-
tional year, by Shell Exploration & Production
Company to provide 40 percent of Shell’s inte-
grated drilling services for their Gulf of Mexico
activities. The value of the contract is estimated
at $24 million for the fixed two-year duration
and includes the provision of directional drilling,
measurement-while-drilling (MWD), and log-
ging-while-drilling (LWD).
“Halliburton is very pleased to have been
awarded this significant contract, which expands
our important relationship with Shell,” said Tim
Probert, senior vice president, Halliburton’s
Drilling and Formation Division.
“The Shell Halliburton Real Time Operations
Center (RTOC) will be of major help in the suc-
cessful execution of this contract,” said Paul
Goodfellow, Wells manager, Shell Exploration
& Production Company. “The RTOC brings
together drilling, exploration, and development
teams to enable true multi-disciplinary well
delivery. It is a world-class facility in which 24/7
well monitoring and the resulting interventions,
real-time collaboration and decision-making are
augmented with well planning for all Shell Gulf
of Mexico rigs.”
The provision of the complete suite of
drilling and formation evaluation services will
provide synergies for Halliburton as service
provider and for Shell in the planning, drilling,
and evaluation of the wells.
Spinnaker Exploration and Partners
Announce Three Prospects Near
Thunder Hawk in Mississippi Canyon
Spinnaker Exploration and its deepwater partners have
raised their exploration sights in Mississippi Canyon, nam-
ing three prospects near their promising Thunder Hawk
discovery and the BP-operated Thunder Horse field, the
largest oil find ever in the Gulf of Mexico. The three new
prospects are Thunder Ridge, Thunder Edge and Thunder
Hawk West. Leases making up the prospects were all
acquired in last March’s Central Gulf of Mexico Lease
Sale 194. The Thunder Hawk West lease alone went for
$20.1 million, the second highest bid in the entire $354
million sale.
Thunder Eagle consists of three Mississippi Canyon
blocks (736, 780 and 781) located just a few miles east of
Thunder Hawk and Thunder Horse. Spinnaker holds a 25
percent interest in the blocks, while Murphy is the opera-
tor with 37.5 percent stake. Dominion also holds a 25 per-
cent interest in the Thunder Eagle prospect and Pioneer has
a 12.5 percent interest. The partners anted up $6.58 million
for the three blocks against little or no competition.
GlobalSantaFe 1st
Quarter Results—
Net up 477%
Worldwide oil and gas drilling contractor GlobalSantaFe
Corporation (NYSE: GSF) reported net income for the quarter ended
March 31, 2005, of $50.2 million, or $0.21 per diluted share, on rev-
enues of $488.6 million, as compared to net income of $8.7 million, or
$0.04 per diluted share, on revenues of $380.0 million for the same
quarter in 2004. Net income for the first quarter of 2004 included
income from discontinued operations of $4.6 million or $0.02 per dilut-
ed share relating to the company's land drilling operations which were
sold in May 2004.
Jon Marshall, GlobalSantaFe President and Chief Executive Officer
said, "Our first-quarter results reflect improving conditions in substan-
tially every market we serve as well as a return to more normal operat-
ing income margins for our drilling management services segment. A
highlight in the first quarter was the completion of our four-year new-
build program with the delivery of our two ultra-deepwater semisub-
mersible drilling rigs, the GSF Development Driller I and GSF
Development Driller II, which will expand our ultra- deepwater capa-
bilities and generate substantial income when they commence multi-
year contracts in July. With the addition of these two rigs and increas-
ing dayrates throughout our fleet, we expect to see earnings accelera-
tion in the second half of the year, continuing into 2006."
First Quarter Analysis
The improvement in net income for the first quarter of 2005 pri-
marily reflects an increase in contract drilling operating income to
$55.2 million from $15.9 million in the same quarter of the previous
year. In addition to the contributions of the recently constructed GSF
Constellation I and II, operating income from the contract drilling
segment benefited from higher rig utilization and dayrates, partially
offset by higher repair and maintenance expenses. Average rig uti-
lization and average revenues per day for the first quarter of 2005
increased to 91% and $68,400 respectively from 82% and $60,100
respectively in the same quarter of the previous year.
For the first quarter of 2005, our drilling management services and
oil and gas segments reported combined operating income of $16.0
million, up from $7.9 million in the same period of 2004. The high-
er combined operating income primarily reflects improved average
margins on 26 turnkey projects and higher oil production following
the initiation of production from the Broom Field in the North Sea in
August 2004.
GlobalSantaFe is a leading worldwide offshore oil and gas drilling
contractor offering a full range of equipment and drilling manage-
ment services. The company's diverse and technologically advanced
fleet of 59 offshore rigs includes premium and heavy-duty, harsh-
environment jackups, semisubmersibles, and dynamically positioned,
ultra-deepwater drillships. The company also operates two semisub-
mersibles owned by others. In addition, GlobalSantaFe is the world's
leading provider of turnkey drilling and drilling management services.
More information can be found at http://www.globalsantafe.com .
The partners bid $20.1 million winning bid for
Mississippi Canyon Block 819, which houses the Thunder
Hawk West prospect located on the southwestern fringe of
the Thunder Horse complex. The group easily topped
Mariner Energy’s $8.5 million bid and Anadarko
Petroleum’s $478,656 bid.
On the eastern side of Thunder Horse and Thunder
Hawk, just below the Thunder Eagle prospect, Spinnaker
and Murphy separately teamed up to win Mississippi
Canyon Block 825, home of the Thunder Ridge prospect,
with a high bid of $1.85 million. That also easily topped
Dominion’s bid of $324,726, Kerr-McGee’s bid of
$377,600 and a $519,970 joint bid submitted by Hunt Oil
and Tana Exploration.
Spinnaker and Murphy also won three Mississippi
Canyon blocks (905, 950 and 995) adjacent to the Thunder
Horse-Thunder Hawk basin in the far southern Mississippi
Canyon area near the border of Mississippi Canyon and
Atwater Valley. Those bids were uncontested.
Offshore Source June, 2005
OS_June 05final 5/24/05 4:35 PM Page 11
Alternative Energy
Cape Wind Receives
Interconnection Approval
The Cape Wind Project has received
approval from the Massachusetts Energy
Facilities Siting Board (EFSB), for their
electric transmission cable. The EFSB is
charged with ensuring a reliable energy
supply at the least cost and environmental
LIPA Offshore Wind Project
Filed with USACE
The potential for offshore wind energy
developments in the United States has
revolved around approval for the Cape
Wind development off of Nantucket,
Massachusetts for a few years now.
But the chances for an offshore devel-
opment were doubled when the Long
Island Power Authority (LIPA) and FPL
Energy filed an application with the U.S.
Army Corps of Engineers (USACE) for
authorization to install a wind energy park
off the South Shore of Long Island.
Filing the application with the USACE
initiates an extensive Federal and State reg-
ulatory and environmental review process
that will include ample opportunity for
public review and comment.
“We’ve reached an important milestone
in our effort to bring a major renewable
energy resource to Long Island so we can
begin to break the stranglehold that OPEC
has on our economy and environment,”
said LIPA Chairman Richard M. Kessel.
“Today we draw a symbolic line in the
sand and say we’re tired of being held
hostage to OPEC and other foreign oil pro-
ducers, and we’re going to do something
positive to develop an alternative energy
resource that will heal, not hurt the envi-
ronment.”
The proposed offshore wind project is
comprised of 40 wind turbines that are
rated at 3.6 MW installed capacity, and
will be clustered in an eight-square-mile
area approximately 4.1 miles due south of
Cedar Beach. The turbines would be capa-
ble of 140 MW of electricity at peak pro-
duction, which is enough to serve approxi-
mately 44,000 average-sized Long Island
homes.
Members of the Long Island Offshore
Wind Initiative, a coalition of about 30
Senate Energy Bill Markup
Underway at Press Time—Ocean
Renewables Missing in Key Areas
The Senate Energy and Natural
Resources Committee will mark up the 13
sections of its comprehensive energy bill
this month. The bill includes the contro-
versial electricity and coal sections as well
as language involving efficiency, hydro-
gen, ocean energy, Indian energy, person-
nel, training and research and develop-
ment. Nuclear is to be addressed, but it is
unclear what portion will be taken up and
will be debated. Republican and
Democrat committee staff continue to
work on the remaining portion of the
nuclear section and provisions related to
incentives for clean energy technologies,
renewable energy, fuel and vehicles, and
oil and gas.
Issues that will have to be resolved
include federal authority to site and permit
Offshore Source June, 2005
impact. The agency voted to approve the
buried electric cables that will connect to
the electric transmission system in
Massachusetts. The vote follows a 32-
month adjudicatory process that included
2,900 pages of transcripts and 932 exhibits.
Inform,
environmental, consumer and faith-based
organizations across Long Island, have
long supported the effort to develop a proj-
Innovate,
ect that would produce a significant
amount of wind-generated power for Long
Island.
According to information contained in
the permit application, the wind park is
expected to result in an annual emission
Inspire
savings of 235,000 tons of carbon dioxide
(CO2), 489 tons of sulfur dioxide (Sox),
and 211 tons of nitrogen oxides (NOx). To
minimize the potential impacts of bringing
the wind generated power to the Island via
a 138kV marine cable the proposed devel-
opment will use directional drilling to go
under the barrier island that separates the
ocean from the Great South Bay. Then the
cable will use the path of an existing navi- Meet the World of E&P at OE2005
gation channel to reach landfall in East
Massapequa, and every attempt will be
made to install the cable in conjunction
with future maintenance dredging that is
planned for the channel.
Pending the outcome of the regulatory
review process, the LIPA/FPL Energy off-
shore wind project could be operating by
2008. Kessel plans to join environmental
leaders in launching an Energy
Independence campaign aimed at Long
Island’s major political, business and civic
leaders.
“The worldwide strain on available fos-
sil fuel supplies and ever-increasing prices
makes this situation a ticking economic
time bomb for Long Island,” Kessel said.
“It means we have to conserve more and
use alternative energy technologies that
use renewable resources to produce ener-
gy. Otherwise, our regional economy will
be held hostage to foreign oil supplies.”
—RenewableEnergyAccess.com
LNG import facilities, the relicensing of
hydroelectric facilities, and the energy
development in the Outer continental
shelf.
Not yet registered for OE 2005?
The biggest development to date is that
the House version includes Ocean Energy
in the Renewable Energy Production
Register now!
Incentive (REPI) tax credit—the Senate’s
version does not. This does not help
coastal communities currently considering
wave and tidal projects. Register online at www.oe2005.co.uk
The committee’s goal is to finish the
work before Memorial Day. President
Bush has called on Congress to pass a bill
Enquiries call: +44 (0)20 8439 8890
for him before the start of the August
recess. The Ocean Renewable Energy or e-mail: oe2005@spearhead.co.uk
Coalition will post the language on their
web site www.oceanrenewable.com as it
becomes available.
11
OS_June 05final 5/24/05 4:36 PM Page 12

Report on Structural Integrity of North Sea Wells

Construction
Oceaneering Completes
Medusa Tieback
Oceaneering International, Inc. (NYSE:OII)
announced that its Subsea Projects division recently com-
pleted the first subsea tieback (North Medusa, MC 538) to
the Medusa Spar.
The scope of work included engineering and project
management, umbilical supply as well as offshore instal-
lation of the flowline and umbilical systems.
Oceaneering has a 37.5% ownership position in the
Medusa Spar which, in addition to producing the Medusa
Field (MC 582), is specifically designed to act as a hub
and host for subsea oil and gas tiebacks from the sur-
rounding area. A second subsea tieback is planned for
later this year.
T. Jay Collins, President and Chief Operating Officer,
stated, “In addition to the initial six wells producing on the
Spar, we are extremely pleased the Spar is hosting a sub-
sea tieback so early in the design life of this asset. The
North Medusa tieback and a second tieback to be com-
pleted later this year, prove the Medusa Spar both techni-
cally and commercially as an attractive host. When com-
bined with Oceaneering’s subsea products and services,
we can offer a complete solution to Customer’s production
needs in the area.”
Highlights Serious Challenges to Operators
Structural integrity of aging offshore wells in the
North Sea is an increasing concern among operators,
according to a recent study commissioned by UWG
Limited, an Acteon company. The study reveals that
83% of operators of more than 6,000 wells in the United
Kingdom continental shelf (UKCS) are experiencing
problems associated with well structural integrity, and
87% of these operators expect that this incidence will
continue to rise.
Industry analyst Douglas-Westwood, Limited, com-
piled information from 18 oil and gas companies which
operate more than two-thirds of the wells drilled to date
in the UKCS. Of all wells in that region, 10% have been
shut in because of structural integrity concerns at some
point during the last five years.
“The report has brought the question of well struc-
tural integrity right out into the open,” says Kevin
Burton, managing director of UWG Ltd and vice presi-
dent of Acteon’s Conductor Systems Division. “It has
confirmed our belief that, as an industry, more empha-
sis needs to be given to ensuring the structural integrity
of wells during construction and to overcoming any
problems that present themselves later in a well’s life
cycle.”
According to the study, operators agree that well and
conductor structural integrity will become more of a
problem as design lives are exceeded and the profitabil-
ity of individual wells decline. Older wells are increas-
ingly prone to problems related to the design and instal-
lation methods applied, as well as lower integrity-assur-
ance standards in place at the time they were construct-
ed. Integrity issues are exacerbated when these wells
change hands, as detailed asset knowledge is often lost
during the transfer, and preventative maintenance may
suffer.
Furthermore, the report’s authors believe the results
from the North Sea have significant relevance for
mature hydrocarbon provinces elsewhere in the world.
Burton continues, “We commissioned the study to raise
awareness of the nature, scale and potential impact of
well structural integrity issues, particularly in light of
the North Sea trend for operating wells beyond their
design lives. Robust tools and many custom engineer-
ing solutions already exist to address many well struc-
tural integrity problems, but we have to continue to
develop technologies, particularly those that enable us
to intervene in wells without using rigs. This will have
a huge impact on the economics of operating older
wells in the North Sea, and indeed in other maturing
provinces.”
UWG combines structural engineering, drilling
engineering and subsea operations experience – in
equal measure – to deliver practical and reliable well
conductor systems.

KOP Awarded Umbilical Contract CCSI Sailing for South

for Independence Hub
Anadarko Petroleum and Dominion Oil
and Gas have awarded Aker Kvaerner the
subsea umbilical and production control con-
tract for their Independence Development.
The Independence Hub, Mississippi
Canyon Block 920, is the host for an initial
16 subsea wells belonging to the Atwater
Valley Producers consortium which includes
Anadarko's Jubilee, Spiderman, Atlas, Vortex
and Mondo NW fields, Dominion's San
Jacinto field and Kerr-McGee Oil and Gas
Corporation's Meganser field. Future expan-
sion is expected.
The contract has a value of approximately
USD 110 million. A key element of the con-
tract is the supply of approximately 180 kilo-
meters of steel tube umbilicals. This is the
largest individual umbilical contract ever
awarded. The fields are located in up to
9,000 feet of water and are located in the
Atwater Valley, Lloyd Ridge,and Desoto
Canyon areas in the Gulf of Mexico. The new
deepwater development will utilize several
advanced technologies developed by Aker
Kvaerner's subsea company, Kvaerner
Oilfield Products (KOP). The new solutions
increase safety and efficiency and offers
lower power requirements. The
Independence subsea umbilical system
makes a step change in deepwater steel tube
umbilical technology, using KOP's carbon
fibre rod enhanced steel tube umbilical
design. The umbilical system will be manu-
factured and delivered out of KOP's umbilical
plant in Mobile, Alabama. KOP will also
deliver 12 control modules to be mounted on
subsea Christmas trees, and two control mod-
ules for subsea manifolds. Delivery is sched-
uled to end in 2006. For more information
see www.akerkvaerner.com
China Sea
CCSI has announced a substantial polyurethane foam (PUF) field joint
infill order from Global Industries Offshore’s wholly owned subsidiary, GIL
Mauritius Holdings Ltd.
The 20” offshore pipeline project being constructed by Global is for the
China National Offshore Oil Corporation (CNOOC) and is part of the
Panyu/Huizhou Gas Development Project, which is offshore from Hong
Kong, in the South China Sea.
The project consists of more than 17,000 field girth welds on the 130-
mile pipeline project. The offshore pipeline will be concrete weight coated,
requiring CCSI’s PUF application over each girth weld area.
CCSI will supply the personnel, equipment and more than 650,000 lbs.
of PUF field joint infill system for the project. This Project represents the
largest joint infill order since CCSI developed its own field joint infill sys-
tem in 2003. The CCSI system is a proprietary system formulated without
the use of aromatic hydrocarbons that are commonly used in competitive
systems. The elimination of hydrocarbons results in a safer, more environ-
mentally friendly system.
Pipeline construction is scheduled to start mid May 2005.

McDermott Wins Indonesian
Fabrication Contract
P.T. McDermott Indonesia (PTMI), a
subsidiary of J. Ray McDermott, S.A.,
was recently awarded a contract by
Saipem Asia Sdn. Bhd. for fabrication of
a jacket and associated tripods and
bridges. The contract is valued at approx-
imately US$12 million, and constitutes
part of the Offshore Platform System for
the Third Transmission Pipeline Project
of PTT Public Company Ltd. (PTT PLC),
which was awarded to a consortium com-
prising of Saipem Asia Sdn. Bhd. and
SMOE Pte Ltd. Under the contract, PTMI
will perform the fabrication of one eight
pile jacket and piles weighing approxi-
mately 4,500ST, two tripods and piles
each weighing 590ST and two bridges,
weighing 210ST and 310ST. Work on the
project has already begun at the PTMI’s
Indonesian fabrication facility on Batam
Island, and is scheduled for completion
early 2006.
Oceaneering Announces Jubarte Field
Pump Umbilical Contract
Oceaneering International, Inc.
announced that Oceaneering Multiflex
has been awarded a contract by Petroleo
Brasileiro S.A. (Petrobras) to supply
umbilicals for the Jubarte field offshore
Brazil in 2,500 meters water depth. The
umbilical will supply integrated power
and control for a specially developed
electric submersible pump (ESP)
installed inside a hollow pile on the
seabed. The order is for a hybrid, multi-
phase, mud line, pump umbilical, includ-
ing electrical conductors measuring four
kilometers. The umbilical will be manu-
factured at the Oceaneering Multiflex
facility in Niteroi, Brazil, where it will
undergo extensive qualification testing
prior to delivery in early 2006.
Philip Gardner, Senior Vice President
of Manufacturing, stated, “Pump umbili-
cals represent a growing sector of the
global umbilical market. This contract
helps solidify Oceaneering’s position as a
primary pump umbilical supplier.”
UWG Signs Record Centralizer
Contract for Offshore W. Africa
UWG Limited, an Acteon company,
will fulfill its largest single order to date
for ChevronTexaco’s Angolan subsidiary,
Cabinda Gulf Oil Company Limited
(CABGOC), in a contract valued at
approximately US $1.5 million.
UWG will provide conductor central-
izers, stop collars and cellar-deck items
for the Benguela–Belize integrated
drilling and production platform, which is
supported by a compliant-piled tower and
is located in Block 14 offshore Angola.
“This is a milestone contract for the
company,” said UWG managing director
Kevin Burton “It’s the largest single order
for conductor centralizers we have ever
received; more importantly, the work
reinforces our position in the significant
West African offshore market.” UWG,
which currently provides CABGOC with
tieback engineering services, will deliver
the equipment in mid-2005. Installation
of the centralizers will begin in August,
coinciding with tie-back operations.
InterMoor Inc, a sister Acteon company,
will fabricate the 112 main conductor
centralizers at its facilities in Amelia, La.
The 112 stop collars and 28 commis-
sioned cellar-deck centralizers, which
double as hole covers, will be manufac-
tured in the United Kingdom.
This is not UWG’s first involvement
in the Benguela–Belize project – the
company assisted CABGOC with the
drilling template installation in 2004.
Gulf of Mexico Award for Subsea 7
Subsea 7 has announced a contract
award by LLOG Exploration Offshore
Inc. for an umbilical installation in the
Green Canyon region of the Gulf of
Mexico. The contract is for the installa-
tion of a subsea control umbilical from
Shell’s GC 158 “A” (Brutus) platform to
LLOG’s GC 157 (J. Bellis Field) subsea
wells. The 9.1 km umbilical will be
installed in water depths ranging between
900 and 1,000 meters. The installation
phase of the operation, utilizing Subsea
7’s premier umbilical lay/deepwater con-
struction vessel Toisa Perseus, is due to
commence in early May and will be
scheduled to conjunction with the current
Gulf of Mexico work program for the
Toisa Perseus. The challenges involved
with this project makes it ideally suited
for the Toisa Perseus which has complet-
ed a large portion of the difficult umbili-
cal projects around the world.
Subsea 7’s Vice President, Gulf of
Mexico, Craig Broussard said, “We are
pleased that we were able to work with
LLOG and other customers in the region
to optimize the Toisa Perseus schedule,
which is full for 2005. The award of this
project continues to highlight Subsea 7’s
consistent presence in the Gulf of Mexico
and further establishes us the premier
contractor for challenging projects
around the world.”

12 Offshore Source June, 2005

OS_June 05final 5/24/05 4:36 PM Page 13
Excerpts from
MUSINGS FROM THE
By Allen Brooks, Managing Director, Parks Paton Hoepfl and Brown
The OTC Buzz: New Rigs,
China and the Pirelli Girls
Sexy girls helping to man some of the
booths drew substantial attendee attention
Attendance at this year’s Offshore
Technology Conference set a 20-year
record at 51,320. We were impressed by
the large international contingent of atten-
dees as delegates came from 110 coun-
tries. Discussions with people manning
exhibitor booths at the show suggested
that the quality of attendees, as measured
by their job level, was higher than in
recent years.
The buzz at OTC revolved around a
few topics. These included: the apparent
explosion in new offshore drilling rig
orders; the impact of the large contingent
of Chinese oilfield equipment manufac-
turers; the announcement of the BJ
Services joint venture with ExxonMobil
to develop subsea deepwater well inter-
vention technology; and the Pirelli girls.
From the opening of OTC on Monday
morning, the sexy girls helping to man
some of the booths drew substantial
attendee attention, and revived memories
of the boom time OTC shows. In those
days, sexy women, some even described
by their employers as ‘nursing students’
from the nearby medical center, were cen-
ters of attention. With their good looks
and by handing out trinkets, the girls
helped build attendee traffic at exhibitor
booths. That was partly because there
wasn’t much interest in, or appreciation
of, oilfield technology. We thought things
had changed, but maybe not.
Even the Houston Chronicle touched
on the influx of pretty girls. The most
noteworthy comments were directed to
the girls dressed in black cutaway jump
suits with a sign on their backside telling
observers to “Follow me to Pirelli
Umbilicals.”
The key highlight of the girls’ outfits
was the diamond-shape cutout exposing
their navel, which was a play on Pirelli’s
product – umbilical lines for control of
subsea wells. We felt sorry for the
exhibitors across from the Pirelli booth
who experienced tremendous traffic, but
only saw the backs of the conference
attendees.
There were at least three Chinese oil-
field manufacturing companies at OTC
proudly displaying equipment they made,
or models of equipment and drilling rigs
they were capable of making. There were
even signs in their booths announcing that
certain equipment was immediately avail-
able in Houston. While some of the
equipment did not appear to be as sophis-
ticated as normally seen in the oilfield, the
Chinese presence, and the breadth of their
offerings, suggests future challenges for
U.S.-based oilfield equipment manufac-
turers.
Clearly the Chinese oilfield service
industry, already a factor on the global
scene, will become a much greater factor
both in terms of equipment and service.
What they lack is technology, especially
in the service area, but we suspect that
will come sooner than many competitors
would like.
Offshore Source June, 2005
OIL PATCH
Many people were impressed by the
announcement of a joint venture involving
BJ Services (BJS-NYSE) and
ExxonMobil (XOM-NYSE) to exploit the
latter’s technology for subsea deepwater
well intervention from a dedicated vessel
to be built by venture partner Otto
Candies. The Subsea Intervention Module
(SIM) technology, and its dedicated ves-
sel, are estimated to cost $150 million and
should be ready in three years. The SIM
system will utilize BJ Services’ coiled
tubing expertise and is designed to work
on horizontal subsea wellheads. Given
that limitation, this will be a field specific
application, most likely for a new
ExxonMobil field in Angola.
What we wonder about is the cost esti-
mate of SIM since not all the well inter-
vention hardware has been developed.
While the current SIM cost estimate rep-
resents about half the cost of the last
round of semisubmersible drilling rigs
built in 2001, which SIM is designed to
eliminate, it is still a more costly solution
compared to an alternative deepwater well
intervention system being developed.
Moreover, SIM may prove to be an over-
kill solution to many potential downhole
well problems.
After learning about SIM, we checked
with the Expro Group (EXR-FTSI) to get
an update on their rigless well interven-
tion project started last year. Along with
joint industry partners, BP (BP-NYSE),
Shell (SHO-NYSE) and Chevron (CVX-
NYSE), Expro Group has completed
Phase One of their project. They are now
in Phase Two, or final engineering of the
system, its construction and testing.
Certain components of the rigless system
are still being designed and tested, but
they are all based on existing technology
so there are no concerns about hardware
performance. Expro Group executives
anticipate showing the rigless well inter-
vention system at next year’s OTC prior to
it becoming commercial. The attractions
of the Expro Group’s system are its cost
($15 million), ease of operation (it can
operate off any large supply vessel with
an Aframe for launching and retrieval)
and wide range of downhole services.
While the Expro Group system will not be
capable of pumping fluids in a well in
contrast to SIM, its cost at one-tenth of
that of SIM and the fact that it does not
require a dedicated vessel and can work
on all subsea wellheads, not just horizon-
tal wellheads, makes it a more significant
technological development in our view.
This view does not diminish the technolo-
gy of SIM, but we view SIM as aimed at
more niche markets.
During OTC, Diamond Offshore (DO
to build two new large jackup drilling rigs
f FELS shipyards in Singapore and
Brownsville, Texas, for a total of $300
million. These latest orders bring the total
number of new jackups either ordered, or
under construction, to 29. All but one of
the rigs will be delivered by the end of
2008. While new rig orders, and rumors of
orders, dominated some of the offshore
drilling industry news immediately prior
to OTC, investors are starting to question
whether we are witnessing an emerging
challenge to improved rig rates and off-
shore driller profits.
At the time of the Rowan Companies
(RDC-NYSE) first quarter earnings con-
ference call in mid April, analysts began
questioning whether the new rig orders
were setting up a scenario of burgeoning
rig supply that would soon swamp future
day rate increases being programmed into
analyst earnings models. Rowan manage-
ment attempted to address these concerns
by pointing out the historical rate of jack-
up attrition and the aging of the rig fleet.
Since then, the specter of possible damage
to the rig market from the wave of new-
buildings has pre-occupied investors.
Drilling company management com-
ments notwithstanding, investors fear the
current rig building wave may be similar
to the boom experienced in 1979-1982
that ultimately led to the near total
destruction of the offshore drilling busi-
ness by the mid 1980s.
In the late 1970s, the offshore drilling
industry was stressed by pressures from
oil and gas companies to step up offshore
drilling, not just in the Gulf of Mexico,
but in many other places around the
world. One of the major new basins open-
ing up at the time of the first oil crisis in
1973 was the North Sea.
Because that body of water was harsh-
er than almost anywhere else the offshore
industry had ever drilled, drilling rigs
needed to be larger and stronger to with-
stand the weather and water conditions.
Until new rigs were built, the larger U.S.
drilling rigs moved to the North Sea,
opening up a domestic market that was
incentivized by the high oil and gas prices
here. The favorable U.S. tax code, cou-
pled with high marginal individual tax
rates, contributed to the development of a
new rig financing vehicle – the limited
partnership. The limited partnership struc-
ture enabled 25 investors to pool their
money and then add a substantial amount
of debt to fund construction of new off-
shore drilling rigs. These investment part-
nerships were able to secure non-recourse
financing for the rigs. In addition,
investors in these rigs were able to take an
immediate 10% tax credit based on the
full price of the rig.
They were also able to use accelerated
depreciation that also helped mitigate the
investors’ tax bills. The preferred rig
design for these limited partnerships was
jackups since they cost less to build, could
be delivered quickly and were in great
demand.
During the five year period of 1978-
1982, the offshore drilling industry built
238 new jackups that after attrition result-
ed in more than a doubling of the jackup
rig fleet. That rig newbuilding effort cost
approximately $8 billion, which compares
with the $2.4 billion of total investment in
jackup drilling rigs since the first one was
built in 1950. The jackup investment
exceeded by $600 million the total
amount of money invested in all the off-
shore drilling units in the industry’s histo-
ry. Some 59, or 25% of all the jackups
built during the 1978-1982 period, were
constructed for limited partnerships. It is
unlikely that the offshore drilling indus-
try’s depression in the mid-1980s would
have been avoided had these units not
been built, but the financial damage might
have been mitigated.
While investors acknowledge that the
available supply of large, premium jackup
rigs is fully employed, they worry that this
segment of the fleet may become over-
built if the spate of new rig orders doesn’t
slow. Over the past 20 years, the jackup
fleet has experienced attrition averaging
6.5 rigs per year. During the 1995-2005
period, attrition of jackups has averaged
four per year. The difference in the attri-
tion rate averages for the time periods is
the impact of the earlier jackups that were
retired in the late 1980s and early 1990s.
At the present time, of the 29 newbuild
jackups, three are projected to be deliv-
ered this year, nine in 2006, 12 in 2007,
four in 2008 and one in 2009. At the same
time, the rig fleet continues to age, such
that by 2008, the age of the average jack-
up will be about 20 years. If the jackup
fleet attrition continues to average four
per year for the next four years, the new-
building effort will add only a net 13 rigs
to the existing 385 rig fleet. That repre-
sents about a 3.4% fleet growth on a net
basis, or 7.5% on a gross basis. It is diffi-
cult to imagine that the jackup rig fleet
attrition would be zero over the next four
years, so we would expect the fleet
growth to be somewhere between these
two estimates. We find it hard to believe
that rig demand over the next few years
will not grow sufficiently to absorb these
additional rigs without any meaningful
decrease in jackup day rates. This analysis
doesn’t mean anything to investors, how-
ever, if they fear a global recession cutting
energy demand growth.
Musings from the Oil Patch reflects an
eclectic collection of stories and analyses
dealing with issues and developments
within the energy industry that I feel have
potentially significant implications for
executives operating oilfield service com-
panies. The newsletter currently antici-
pates a semi-monthly publishing sched-
ule, but periodically the event and news
flow may dictate a more frequent sched-
ule. As always, I welcome your comments
and observations. —Allen Brooks
Contact PPHB:
1900 St. James Place, Suite 125
Houston, Texas 77056
Main Tel: (713) 621-8100
Main Fax: (713) 621-8166
www.pphb.com
13
OS_June 05final 5/24/05 4:37 PM Page 14

Offshore At-A-Glance
Forecast Subsea Awards 2003 - 2006

Forecast Floating Production Systems 2005 - 2010

Subsea Production Umbilicals

FOR MORE DETAILED INFORMATION PLEASE CALL

(281) 491-5900 * 44 (0) 1737 371704 - London OR GO TO: www.QuestOffshore.com
www.SubseaZone.com * www.FloatingProductionZone.com
email: corp@questoffshore.com

14 Offshore Source June, 2005

OS_June 05final 5/24/05 4:48 PM Page 15

Offshore Source’s
Stock Watch
STOCK WATCH
Energy Stocks Monthly Stock Figur es & Composite Index

Target of Sellers Industry

Company Name
Symbol Close
Mid May
Close
Mid April
Change Change
%
High Low
52 week

By Allen Brooks, Managing Director, Diversified, Production Support and Equipment Companies
Parks Paton Hoepfl and Brown Baker Hughes, Inc. BHI 44.30 43.06 1.24 2.9% 48.25 33.45
BJ Services BJS 47.94 49.92 -1.98 -4.0% 54.65 39.71
Cooper Cameron Corp. CAM 58.55 53.73 4.82 9.0% 58.89 42.68
According to Ablin, health care is attractive while telecom Drill-Quip, Inc. DRQ 25.97 32.05 -6.08 -19.0% 31.98 14.75
Halliburton Company HAL 41.30 40.60 0.70 1.7% 43.58 26.45
in moving up, but according to his models, it is time to take Maverick Tube Corp. MVK 27.29 29.00 -1.71 -5.9% 34.83 19.04
profits in energy. Newpark Resources, Inc. NR 6.03 6.00 0.30 0.5% 6.80 4.64
Crude oil futures prices have been falling over the past six Smith International, Inc. SII 57.38 57.60 -0.22 -0.4% 64.12 47.12
weeks since J.P. Morgan’s oil analyst predicted that a super Schlumberger Ltd. SLB 67.00 66.92 0.08 0.1% 74.43 54.75
Superior Energy Services, Inc. SPN 14.87 15.11 -0.24 -1.6% 17.49 8.65
spike environment could lift oil prices to $105 per barrel at Weatherford International, Inc. WFT 50.31 53.71 -3.40 -6.3% 59.20 39.68
some point in the future. With crude oil futures prices having
fallen from $57.27 to $48.67, or 15%, between April 1 and
May 13, energy stock prices have dived. The Philadelphia Oil Total Diversified, Production,
Service Index (OSX) has fallen 10.3% during this time period. Support and Equip......................... 440.94 447.70 -6.76 -1.5% 494.22 330.92
In the current issue of Barron’s, an article authored by Jack
Ablin, the chief investment officer of Harris Private Bank in Geophysical / Reservoir Management
Chicago, suggests it is time for investors to adjust their invest-
ment portfolio sector allocations. According to Ablin, health Dawson Geophysical Company DWSN 19.80 20.35 -0.55 -2.7% 27.66 9.98
Mitcham Industries, Inc. MIND 6.75 7.12 -0.37 -5.2% 8.94 3.10
care is attractive while telecom is moving up, but according to Veritas DGC, Inc. VTS 26.17 27.24 -1.07 -3.9% 27.79 13.41
his models, it is time to take profits in energy and to steer clear
of technology. While Musings From the Oil Patch is not a Total Geophysical /
stock market newsletter, we did find two points Ablin made in Reservoir Management..………… 52.72 54.71 -1.99 -3.6% 64.39 26.49
his article quite interesting.
Ablin said, “Technology, an unexciting sector six months Offshore Drilling Companies
ago, remains hopelessly unattractive. Among the S&P’s 10
economic sectors, it is the most disadvantaged by rising ener- Atwood Oceanics, Inc ATW 51.90 59.87 -7.97 -13.0% 68.90 31.01
gy prices.” He goes on to discuss how economically sensitive Diamond Offshore Drilling, Inc. DO 41.61 45.20 -3.59 -7.9% 49.25 21.19
ENSCO International Inc. ESV 31.60 33.08 -1.48 -4.5% 39.94 24.95
the tech sector is and that it is facing declining industrial pro- Global Santa Fe GSF 34.54 33.83 0.71 2.1% 38.09 24.03
duction in the future. These conclusions are fascinating for Nabors Industries Inc. NBR 52.00 55.21 -3.21 -5.8% 57.50 40.02
their starkness against the views at the turn of the century when Noble Drilling Corp. NE 52.44 51.68 0.76 1.5% 57.33 33.53
technology represented a new investment paradigm. Based on Pride International, Inc. PDE 21.30 22.57 -1.27 -5.6% 24.80 15.08
these views, however, it appears that Ablin may still be antici- Parker Drilling Company PKD 5.31 5.10 0.21 4.1% 5.82 2.65
Rowan Companies, Inc. RDC 26.30 26.92 -0.62 -2.3% 31.65 20.44
pating higher, not lower, future energy prices such as we have Transocean Offshore Inc. RIG 45.90 47.45 -1.55 -3.3% 49.40 24.49
experienced by the recent movement of crude oil futures in
response to building domestic petroleum inventories. If this Total Offshore Drilling Companies…. 362.90 380.91 -18.01 -4.7% 422.68 239.39
conclusion is correct, then maybe bailing out of energy stocks
right now is premature. On the other hand, we recall that for Offshore Contractors, Services and Support Companies
most of this decade, investors loved to jump back and forth
between technology and energy stocks, entranced by the CalDive International CDIS 44.66 44.27 0.39 0.9% 49.41 23.63
volatility of the stocks in both sectors. Friede Goldman International Inc. FGHLQ 0.0002 0.0002 0.00 0.0% 0.01 0.00
Ablin’s view would suggest that this love-hate view of tech Gulf Island Frabrication GIFI 20.68 21.93 -1.25 -5.7% 25.49 17.65
Global Industries, Ltd. GLBL 8.40 10.10 -1.70 -16.8% 9.31 4.12
and energy stocks might be breaking down. Horizon Offshore Inc. HOFF 0.35 0.29 0.06 20.7% 3.99 0.21
The other point we found interesting was Ablin’s view McDermott International Inc. MDR 19.76 21.11 -1.35 -6.4% 23.39 6.72
about why investors should take profits in energy stocks. Oceaneering International OII 35.05 33.57 1.48 4.4% 41.47 27.95
Driven by the powerful surge in crude oil prices, energy stocks Stolt Offshore SOSA 7.37 7.74 -0.37 -4.8% 8.63 2.25
Torch Offshore, Inc. TORC 42.95 41.48 1.47 3.5% 46.73 30.40
have significantly outperformed the overall stock market. He Tetra Technologies, Inc. TTI 26.92 26.27 0.65 2.5% 32.57 20.75
believes that investors should take profits and reduce their port-
folio exposure to a market-weight. He believes that if the Total Offshore Contractors,
Federal Reserve raises the federal-funds rate to 3.5%, which Service and Support..……….….... 206.14 206.76 -0.62 -0.3% 241.00 133.68
would exceed the current rate of inflation, commodities,
including oil, likely will retreat. Historically, energy stocks
trade at a 20% discount to the overall market based on a for- Offshore Transportation and Boat Companies
ward price to earnings (P/E) ratio. Ablin believes that should
energy company earnings growth slow (likely if commodity Seacor Smit Inc. CKH 56.18 58.90 -2.72 1.1% 60.42 37.35
Gulfmark Offshore, Inc. GMRK 23.85 24.17 -0.32 -1.3% 26.52 13.08
prices fall), then forward P/Es would become relatively expen- Offshore Logistics, Inc OLG 29.02 30.39 -1.37 -4.5% 38.90 21.40
sive unless stock prices retreat. With two potentially negative Petroleum Helecopters PHEL 29.00 29.85 -0.85 -2.8% 30.46 18.03
forces impacting energy stock valuations, Ablin believes it is Seabulk International SBLK 19.20 19.67 -0.47 -2.4% 18.41 6.10
prudent for investors to reduce their exposure. Tidewater Inc. TDW 33.36 35.16 -1.80 -5.1% 41.91 25.73
What strikes us about Ablin’s conclusions is that they Trico Marine Services, Inc. TMAR 0.24 0.24 0.00 0.0% 2.09 0.10
reflect the present conventional investment wisdom. Our view Total Offshore Transportation
is that energy stocks are shifting from the sprint mode that they and Boat Co. .………….………… 190.85 198.38 -7.53 -3.8% 218.71 121.79
have been demonstrating for most of 2005, into a marathon
pace for the next several years. Long-term crude oil futures
Total Diversified, Production,
prices remain higher than near-term futures. This suggests that Support and Equipment 440.94 447.70 -6.76 -1.5% 494.22 330.92
the energy market is more concerned about the ability of the
global oil industry to supply all the crude oil the world might Total Geophysical /
require this winter and in 2006. The absence of a substantial Reservoir Management 52.72 54.71 -1.99 -3.6% 64.39 26.49
cushion of surplus global oil productive capacity is contribut- Total Offshore Drilling Companies 362.90 380.91 -18.01 -4.7% 422.68 239.39
ing to this concern. If global economic activity falters and/or
oil production capability can grow meaningfully, then oil Total Offshore Contractors,
prices will weaken. This is the debate underway in the stock Service and Support 206.14 206.76 -0.62 -0.3% 241.00 133.68
market.
Total Offshore Transportation
Unless, and until, we see a significant ramp up in oil indus- and Boat Co. 190.85 198.38 -7.53 -3.8% 218.71 121.79
try capital spending, growth of oil production capability is
likely to be slow. Therefore, the outlook, and energy stock Total Offshore Source Index … 1,253.55 1,288.46 -34.91 -2.7% 1,441.00 852.27
prices, will remain volatile depending upon the tone of the lat-
est economic, financial and/or political statistic. For investors
seeking direction to confirm their outlooks, the next few DISCLAIMER
The information on this page is provided for information and comparison purposes only and should not be used to make
months may be extremely frustrating. financial and business decisions and is accurate to the best of our knowledge for the period indicated.

Offshore Source June, 2005 15

OS_June 05final 5/24/05 4:38 PM Page 16

Petrobras Contracts Extended

for Subsea 7 IRT Rock Coring
Subsea Intervention

Subsea 7’s IRT (Integrated Remote Technologies)
division today announced two contract extensions from
Petrobras for the continued provision of Remotely
Operated Vehicle (ROV) services onboard Petrobras
chartered drill rigs Amethyst and Atlantic Star. The con-
tract for the Amethyst has been extended to the first quar-
ter of 2007 whilst the Atlantic Star contract will run until
the end of this year. Contracts are valued at approxi-
mately $2 million and $900,000 respectively.
Located in the Campos Basin, Brazil, the drilling rig
Amethyst has a Diablo 3 ROV onboard. This ROV has
now accumulated more than seven years of continuous
work. The vehicle’s initial mobilization was onboard the
drill rig Peregrine 1 in December 1997 and transferred to
the Amethyst three years ago. Since mobilization
System Integrated
onboard the Amethyst, the vehicle has had 99.9% opera-
tional uptime in water depths down to 1200 meters. The
with ROV
Diablo 2 ROV onboard the Atlantic Star was initially
mobilized in June 2004 to support the drilling activities
on two well programs but the contract has now been
extended until the end of 2005. Diablo 2 began its activ-
ities in 1997 as a support ROV for the maintenance and
repair of fibre optic cables, before spending five years on
the drill rig Louisiana and four months on the drill rig
Ocean Yorktown in the Campos Basin in Brazil. Since
being mobilized onboard the Atlantic Star, the vehicle
has had an operational uptime of 99.6% in water depths
to 400 meters.

Phoenix International, Inc. has announced develop-

C-Surveyor™ Completes BHP ment of a capability to take underwater rock cores using
“Sheniz” AUV Survey an ROV. Phoenix successfully integrated a rock coring
system with its 400 hp ROV, Nereus II. Nereus has the
C & C Technologies’ deepwater AUV, C-Surveyor I, unusual ability to operate in a free-flying mode or in a
recently completed a hazard survey for BHP’s Sheniz tracked, bottom crawling mode.
project in Green Canyon. The scope of work required The ROV and drill were modified to provide a demon-
high-resolution multibeam, sub-bottom and side scan strated ability to take 5 feet long, 2 3/8 inch diameter rock
sonar data in water depths ranging from 4,100 feet to cores using ROV supplied hydraulic power. Cores can be
4,550 feet. During the project, the AUV collected over taken in water depths to 8,000 ft. and on slopes up to 45
1,200 kilometers of survey line data that was analyzed degrees. Typical coring time is approximately 40 minutes.
by onboard route engineers for QA/QC measures. The developed capability offers subsea construction
Since becoming operational in January 2001, the C- and geotechnical customers a cost effective alternative to
Surveyor I AUV has performed more than 40,000 kilo- rock coring from a drill ship or barge, or through use of
meters of surveys on 72 different projects for govern- surface lowered coring systems. The Phoenix approach
ment agencies and the oil and gas industry. The water allows use of smaller support vessels and has operational
depths for these projects range from 100 to 2,850 meters advantages when working in high current regimes.
and encompass different levels of complexity. Some of Phoenix International is a marine service company
the more high profile projects have been locating histor- that conducts manned and unmanned underwater opera-
ical World War II shipwrecks, performing pipeline inves- tions worldwide. Core capabilities include underwater
tigation surveys and surveying through a full-scale pro- ship repair, deep ocean search / recovery, submarine res-
duction FPSO location. cue, subsea construction support, and engineering design
and development.

Side Scan Sonar and C & C Technologies Purchases

Image Interpretation M/V Northern Resolution
The Side Scan Sonar Operator’s Not in the Manual Guide™ to Side Scan
Sonar and Image Interpretation is the second release of many planned train-
ing DVD’s focused on the hydrographic/oceanographic market from Black
Laser Learning™. The program is hosted by Vincent Capone who has over
20 years sonar and hydrographic experience along with a Master’s degree in
marine Science. The DVD contains invaluable information geared towards
those who plan, and conduct side scan sonar operations. In depth analysis of
side scan sonar principles and image interpretation. It contains 3D anima-
tions, dozens of images, examples utilizing real data and lectures with con-
cise explanations.
For more information go to www.blacklaserlearning.com.

Deep Water not Hot Water

...keeping you on the job site and out of trouble C & C Technologies recently announced the purchase
of the M/V Northern Resolution from Malene Østervold
Shipping AS of Norway. The 247-foot Norwegian
Custom Tooling API/ISO Compliant flagged vessel was purchased to assist in the acquisition
•• Pipeline
Pipeline Cutting/
Cutting/ Tooling of geophysical and geotechnical data. The vessel has
Repair
Repair Systems
Systems •• Torque
Torque Tools/Flying
Tools/Flying accommodations for 50 passengers and can transit at a
•• ROV
ROV Installable
Installable Lead
Lead Tools
Tools speed of 12 knots for up to 50 days duration.
Frames/Connection
Frames/Connection •• Hot
Hot Stabs/Docking
Stabs/Docking Currently, the M/V Northern Resolution is dry-
Systems
Systems Probes
Probes
•• Wellhead
docked in New Orleans, LA for modifications. The mod-
Wellhead
Intervention
Intervention Tools
Tools
ifications will include hull-mounting an EA 600 deepwa-
ter single beam profiler and EM 120 mulitbeam,
Burial/De-burial
installing the launch and retrieval system for C & C’s new
Integrated ROV
Tooling C-Surveyor II AUV and making alterations to the vessel’s
Tooling
•• Suction •• Pipeline/Cable
Pipeline/Cable design to ensure efficient operations. Although the
Suction Anchor
Anchor
Pumps
Pumps Intervention
Intervention majority of the projects intended for the M/V Northern
•• Fluid
Fluid Injection
Injection Units
Units •• Water
Water Jetting/Chain
Jetting/Chain Resolution are AUV assignments, the vessel will also be
•• Subsea
Subsea Control
Control Systems
Systems Cutter/Rockwheel
Cutter/Rockwheel mobilized to perform conventional geophysical surveys
Tools
Tools and deepwater geotechnical soil sampling.
Thomas Chance, President of C & C Technologies
added, “We are extremely excited about the addition of
the M/V Northern Resolution to our fleet. This vessel
....Engineering Your Subsea Solutions will allow for us to further expand our international serv-
ices and react more timely to the increased demand for
Houston: +1 713 933 8000 Vancouver: +1 604 986 5600 www.oceanworks.cc
AUV services.”

16 Offshore Source June, 2005

OS_June 05final 5/24/05 4:39 PM Page 17
System Enhances
Safety by Making
Up Tubulars on
Rig Floor
BJ Tubular Services announced the introduction of the
Top-Drive Casing Alignment Tool, a new system that
offers a simple, yet safer approach to running tubulars.
Known as the T-CAT, this state-of-the-art tool makes
it possible to run tubulars without carrying out hazardous
stabbing board operations. By using the T-CAT, tubu-
lars can be made up directly on the rig floor. Operated
remotely by one technician, the operator uses the T-CAT
to pick up the tubular from the catwalk. He then posi-
tions it and makes it up in the rotary, in keeping with tra-
ditional industry practice. The entire process is achieved
without a stabber, and is operated from the rig floor.
The T-CAT is designed to handle casings of any size,
so it is highly adaptable. Virtually any casing can be run
directly from the drillfloor, which minimizes manual han-
dling of the casing. In addition, the T-CAT is easily
rigged up and down, unlike costly conventional systems
that must be permanently installed on the rig’s derrick.
Recently, BJ Tubular Services used the T-CAT to run
tubulars on behalf of Talisman Energy (UK) Limited
from the semi-submersible drilling unit Sedco 714 in
the North Sea. “The T-CAT system proved to be reliable
when running 13-3/8” buttress casing in marginal weath-
er conditions. Casing was run with remote operation pro-
vided by a casing running technician. This eliminated
the requirement for a stabber, making for a less hazardous
operation. Running rates were good, especially given the
type of connection and weather conditions,” said Fraser
Tavendale, drilling superintendent-Sedco 714 for
Talisman Energy.
The T-CAT is a dramatic step forward, offering a
number of key benefits. “In addition to the fact that the
T-CAT does away with the need to carry out hazardous
stabbing board operations, just one technician is required
to operate the T-CAT remotely from the rig floor. This
means that personnel are always well out of harm’s way,
which improves safety standards,” said Les Mason, sales
and operations manager for BJ Tubular Services. “We
designed the T-CAT to keep tubular handling to a mini-
mum, and to manipulate the tubular with great care. As
a result, the tubular is much less likely to be damaged,
preventing costly repairs down the road,” he added.
The T-CAT is the latest addition to BJ Tubular
Services’ growing portfolio of automated systems, which
features the Leadhand, a hydraulic power tong manipula-
tion system, and the Conductor Torquing System, which
offers improved safety and efficiencies when making up
or breaking out conductor-threaded connections.
Offshore Source June, 2005
Fugro-Jason
Announces RockMod
Fugro-Jason, the leader in reservoir characterization
technology, recently announced RockMod Services, a new
reservoir characterization offering based on the company's
recently released sixth generation reservoir characterization
technology. RockMod Services integrates two critical tech-
niques into a single algorithm--Simultaneous AVA
Geostatistical Inversion--to deliver the clearest and most
reliable reservoir models. This new service and its underly-
ing technology are a natural progression for the company,
which has been developing innovative solutions for more
than 15 years.
"RockMod combines geologic information with AVA
sensitivity analysis techniques and pre-stack stochastic
inversion, making it possible to substantially reduce devel-
opment risk associated with conventional and non-conven-
tional reservoirs," said Dr. Carlos Torres-Verdin, Associate
Professor, University of Texas Austin. Dr. Torres-Verdin's
Formation Evaluation consortium will present the results of
a recent research study at the EAGE Annual Conference and
Exhibition, June 13-16, 2005. "With RockMod, Fugro-
Jason remains at the forefront of new reservoir modeling
technologies."
RockMod Services builds a model of the earth, based on
all the data and information available, making it unparal-
leled in accuracy and detail. RockMod Services can be
applied to any field at any stage of its development.
Deliverables can include petrophysics, reservoir identifica-
tion, reservoir property determination, reservoir quality indi-
cation, static and dynamic flow simulation models and eco-
nomic risk assessment.
"For the first time, rock properties and geostatistics can
be combined in a single integrated method, providing the
best possible representation of the true earth," said David
Graham, General Manager of Fugro-Jason. "Our clients can
spend less time considering the limitations of their models
and more time determining how to design the most effective
drilling program for their field."
For more information about RockMod Services, go to
www.rockmod.com.
New Drilling Technology
The Department of Energy has marked another key
milestone in its research and development (R&D) initiative
to develop “microhole” technologies aimed at slashing the
costs and reducing the environmental impacts of drilling
America’s oil and gas wells.
DOE has announced the award of funding for 10 proj-
ects that are designed to push microhole technology anoth-
er step closer to commercially and widespread adoption by
the U.S. oil and gas industry. The initiative involves devel-
oping technologies associated with drilling wells smaller
than 4 inches in diameter and related downhole micro-
instrumentation.
Contact: John Grasser, DOE, (202) 586-6803.
Providing Reliable and Secure Communication Services to the Oil and Gas Industry
Ocean Fiber’s Gulf FiberNet
Subsea Fiber Optic
Cable Network...
For more information please contact
tayars@oceanfiber.com
Technology
Economical Recovery of
Bypassed Hydrocarbons
with New Sand Control
Technology
Halliburton's (NYSE: HAL) Production
Optimization Division has developed the SandTrap
(SM) service using a formation stabilization system
to assist operators with the economical recovery of
bypassed hydrocarbons in friable or weakly consoli-
dated reservoir sands. To date, Halliburton's
SandTrap service has been successfully deployed in
reservoirs prone to sand production problems in the
Gulf of Mexico, California, Indonesia, and
Argentina.
The SandTrap service offers two new completion
options that can stabilize the formation surrounding
the wellbore -- as a standalone screenless sand con-
trol treatment or as a screenless frac pack in con-
junction with consolidating proppant, such as
Halliburton's Expedite® service -- to provide sand
control with stimulation for weakly consolidated oil
and gas sands. Along with providing operators a
choice of completion options, the SandTrap service
offers several alternative means of placement, includ-
ing down production tubing, coiled tubing, and joint-
ed pipe and service packer.
"In its simplest form, the SandTrap service tech-
nology combines near wellbore consolidation with
the option for stimulation using a tip screen out
(TSO) fracture treatment," said Harvey Fitzpatrick,
sand control product manager, Halliburton's
Production Optimization Division. "This technique
combines the advantages of good formation penetra-
tion and permeability retention through sure setting,
good adhesion, and strength on sands with clay con-
tent. Plus, it remains viable even in conditions of
greater than 350 degrees Fahrenheit."
"We continue to seek ways to balance the equa-
tion of cost versus productivity to better enable oper-
ators to profitably recover reserves they would other-
wise forego," said Jim Renfroe, senior vice president,
Halliburton's Production Optimization Division.
"For instance, the SandTrap service provides our
clients the means to extend the life of artificial lift
pumps and reduce workovers due to sand production,
bringing down costs while maintaining production."
Halliburton, founded in 1919, is one of the
world's largest providers of products and services to
the petroleum and energy industries. The company
serves its customers with a broad range of products
and services through its Energy Services Group and
KBR. The company's World Wide Web site can be
accessed at www.halliburton.com.
17
OS_June 05final 5/24/05 4:40 PM Page 18
Global Marine Secures
USA-Australasia Contract for Southern Provide Government
Communications
Cross Cable Network
Global Marine secures USA-Australasia underwater
cable maintenance contract for Southern Cross Cable
Network until 2010.
Southern Cross Cables Limited has announced it will
renew and extend its undersea cable maintenance agree-
ment with Global Marine Systems Limited (Global
Marine) for the northern portion of the 30,000km USA-
Australasia Southern Cross Cable Network to December
2010.
The decision by Southern Cross comes in the same
week that the new owners of Global Marine launch the
company’s new business plan, following last year’s
restructuring and acquisition by London-based
Bridgehouse Marine.
The Southern Cross Cable Network provides the
fastest, most direct and secure international bandwidth
from Australasia to mainland USA via Hawaii. It is
owned and operated by Southern Cross, whose share-
holders comprise Telecom New Zealand, Optus and MCI.
The cable system consists of two cables linking the west
coast of the USA with Hawaii, Fiji, New Zealand and
Australia. It has been operational since 2001 and spans
more than 30,000km.
Global Marine, which installs more than 50% of the
world’s buried fiber optic cables and between 30 and 40%
of all subsea cables repairs and maintenance, won the
original maintenance contract for Southern Cross Cable
Network in 2001. The company has beaten stiff competi-
tion to secure an extension of this contract.
Fiona Beck, President and CEO of Southern Cross
SatPoint Introduces
VoIP over VSAT
SatPoint introduces VoIP termination services over VSAT
Following introduction of VoIP connectivity in its BitMax VSAT
SCPC/DAMA service earlier this year and lately also over its
marine VSAT DVB-RCS service, SatPoint now offers complete
VoIP to PSTN (public telephone network) termination services.
This new service allows the subscriber to place a call from his
ships terminal, using SatPoints BitMax service and routing it
over the public Internet at essentially no additional cost above
the basic service itself. This call may be terminated directly in
the company’s private exchange on land, in another VoIP phone
or routed to the public telephone network providing the best of
both worlds, low cost and global access. In this manner, calls are
only charged at local tariffs.
The service also offers competitive call charges to mobile
phones. Low or no cost is only part of the advantage with VoIP,
the flexibility is enormous. One really useful feature is that VoIP
is fundamentally not tied to a geographical location as most
wired phones are. The effect of this is the opportunity to realize
a range of virtual switchboard and exchange services without
any investment into hardware.
Currently, SatPoint can offer a lowest cost routing service to
major European countries. The VoIP service is not limited to
marine application but may very well be used for any land appli-
cation where land connections are poor, unreliable or costly.
Since the location of the phone terminal is possible wherever
there is an Internet connection, the application is ideal for serv-
ices that are mobile or moved on occasion. Interfacing to the
existing public telephone network is carried out by SatPoint and
offers all the services available, such as forwarding, number
presentation and much more.
For offshore applications, hybrid networks can be built by
SatPoint using a combination of VSAT, GSM and VoIP technol-
ogy, permitting very flexible solutions to be realized.
New Version of France Telecom’s SkyFile
France Telecom Mobile Satellite Communications is
offering a new version of its proprietary software solution
enabling the transfer of e-mails, faxes and SMS via Inmarsat
and Iridium mobile satellite terminals. The new version com-
presses data sent by up to 90%, speeding up transfer times
and reducing communications costs. The software also
includes a SPAM filter and a black & white list option for bet-
ter management of incoming e-mails.
Other new features include:
• A ship/shore/ship system enabling the user to send infor-
mation from a terrestrial fax to a mobile satellite terminal, and
vice-versa.
18
New Partnership to
Solutions
Cables Limited, says: “Price was a factor when we were
looking for a maintenance agreement for our cables – but
it was not the only consideration. It was vital to secure a
deal that not only met our requirements but also was cost
effective and quality driven.”
On receiving the news confirming the Southern Cross
Board’s decision, Gabriel Ruhan, Managing Director of
Global Marine said, “This contract is crucial to Global
Marine’s Pacific footprint and confirms our market lead-
ing position in the undersea cable installation and mainte-
nance sector. Southern Cross’s decision to renew this
maintenance contract with us demonstrates the company’s
satisfaction with our service over the last few years and is
testament to the strength of our relationship. We are of
course very excited at the prospect of continuing to work
with them.”
Global Marine has remained at the forefront of cable
installation and maintenance ever since. Operating with
the world’s most advanced fleet of cable ships and subsea
vehicles, it is a market leader in marine cable installation
and maintenance for telecommunications, as well as sci-
entific research, oil, gas, utilities and the renewable ener-
gy sector. It has installed more undersea fiber optic cables
than any other operator. More than 50% of the world’s
buried fiber optic cables have been installed by Global
Marine Systems and between 30 and 40% of all subsea
cables repairs and maintenance are undertaken by the
company. It continues to develop sophisticated tools and
techniques to plan, install and maintain cables in order to
improve the resilience of its customers’ systems.
Iridium Reaches 500
Satellite Years
Iridium Satellite has announced that its con-
stellation of low-earth-orbit communication satel-
lites has achieved a world record of more than 500
satellite-years of in-orbit performance.
Iridium’s constellation consists of 66 active
satellites and 13 in-orbit spares, which Iridium can
quickly activate in the event of any satellite out-
ages. Iridium’s initial satellites, were launched
in 1997-1998, and commenced worldwide service
in 1998. Iridium placed seven additional spares
into orbit in 2002 to ensure long-term uninterrupt-
ed service.
In the last two years, Iridium and its industry
partners have implemented a number of opera-
tional enhancements that remove dependency on
high-wear components, thus increasing the satel-
lite lifespan. As a result, third party engineering
analysis, supported by the continued excellent on-
orbit performance of the satellites, indicates that
the existing constellation is viable through 2014
without the need for any additional launches.
The Boeing Company operates the satellite
network under a long-term contract with Iridium
Satellite.
Carmen Lloyd, chairman and CEO of Iridium
Satellite LLC, said, “The robust design and reli-
able performance of the satellites are largely
responsible for the rapid growth experienced by
Iridium during the past two years. Our service
providers, third-party integrators and customers
have learned that Iridium is a dependable service
providing global low-latency data and voice com-
munications for users with the most demanding
communication requirements.”
• This feature allows the user to access, check and control
messages in his or her SkyFile mailbox from any location via
the Internet.
Online credit/invoicing system
• Similar to an internet café system, crew members or pas-
sengers receive online credit for personal e-mail communica-
tions according to time connected or volume of data trans-
mitted.
• A virtual interface between SkyFile and ship manage-
ment systems enabling onboard applications to dispatch and
receive data via SkyFile.
Three companies have announced today a new
partnership to provide satellite network management
solutions to the Federal Government. Network man-
agement specialist Parallel has teamed up with tech-
nology provider ManTech International Corporation
and technology business integration consultancy
Taylor McKenzie, Inc. to offer cutting-edge manage-
ment for satellite networks and hybrid satellite/ter-
restrial networks.
Central to the partnership is SatManage, a satel-
lite network management suite developed by Parallel.
The suite offers pioneering visual correlation of net-
work events and monitors satellite signal quality.
SatManage is proven to significantly improve net-
work performance while reducing operational costs.
The Auto Helpdesk component can open and close
up to 70% of network trouble tickets without the
need for human intervention. The suite integrates
with management software already in place and acts
as a “manager of managers,” providing a net-centric,
high-level view of the network.
“We are delighted to form this new partnership,”
said Eugene Renzi, U.S. Army Major General (Ret)
and President of the Defense Systems Group at
ManTech. “SatManage is an excellent product
which we feel will shape how the Federal
Government manages its satellite networks.”
The partnership will be working together at the
forthcoming TechNet International 2005 trade show.
ManTech International Corporation will be exhibit-
ing at booth 1138; joining ManTech, will be repre-
sentatives from Parallel and Taylor McKenzie
demonstrating SatManage. TechNet International
2005 takes place at the Washington Convention
Center, Washington, DC from May 17-19.
Parallel is very excited to announce this partner-
ship and to work with both ManTech International
Corporation and Taylor McKenzie, said Tim Moore,
President, Parallel. “SatManage has tremendous
potential for use in the Federal Government and this
partnership will widen our opportunities consider-
ably”
Jim Patty, Executive Vice President, Taylor
McKenzie added: “The experience and technical
expertise of the three companies, combined with the
excellent functionality and benefits of SatManage
will mean that we can provide superb satellite net-
work management solutions for the sector.”
Parallel’s satellite network management suite,
SatManage, provides comprehensive management
for satellite and hybrid networks. The vendor inde-
pendent suite manages all the factors that determine
network performance and includes groundbreaking
visual event correlation. Other components manage
signal strength, traffic levels, latency, and even Sun
outages. Advanced automation also automatically
opens, diagnoses and closes up to 70% of network
trouble tickets.
McMurdo AIS
Approved by FCC
McMurdo’s new M-2 Automatic Identification
System (AIS) has received type approval from the
Federal Communication Commission in
Washington, D.C., clearing the way for its use in the
United States.
The McMurdo M-2 provides the ideal AIS solu-
tion for all types of vessels. Its compact design and
ease of use now means that even the smallest of
workboats, tugs and support craft can benefit from
the same level of safe navigation enjoyed by com-
mercial shipping worldwide.
M-2 fulfills the International Maritime Authority
(IMO) requirements for Class A, AIS transponder
system. The M-2 AIS is fully automatic and pro-
vides two-way communication of tracking and ves-
sel location information from ship-to-ship and ship-
to-shore and AIS-equipped aids to navigation
(ATONs). It is easy to install and integrates with
other shipboard electronics, whether the
Offshore Source June, 2005
OS_June 05final 5/24/05 4:40 PM Page 19
Passport Systems Contracted
Shipyards & Equipment
for Cargo Detection Scanner
Passport Systems, Inc. announced that the
Homeland Security Advanced Research Project
Agency of the Department of Homeland Security has
awarded a contract for research and development in
support of advanced detection systems for nuclear and
radiological devices. The contract is for the initial
phase in a multi-phase program to develop and build a
prototype scanner system that could be deployed in
seaports, borders and airports worldwide to detect
nuclear, radiological, explosive and chemical devices.
The initial award is for $1.6 million.
Robert Ledoux, President and a founder of
Passport Systems, stated, “This award represents the
recognition of the potential of nuclear resonance fluo-
rescence imaging in next-generation scanning systems.
It is an important step in Passport’s efforts to develop
a comprehensive, non-intrusive scanner to detect
WMD, explosives and other threats to the Nation’s
security.”
Nuclear resonance fluorescence imaging (NRFI) is
Kongsberg Lead Systems
Integrator on USCG New-Build
Kongsberg Maritime was a lead systems integrator
during production of the sophisticated new U.S. Coast
Guard Icebreaker, MACKINAW (WLBB-30), which
was launched at the Marinette Marine Corporation, in
Marinette, Wisconsin on April 2, 2005.
Kongsberg Maritime was chosen as the Single
Source Bridge Integrator (SSBI) by builders, Marinette
Marine, a job that included responsibility for the overall
bridge layout and integration with other on-board sys-
tems. The vessel’s bridge is designed in accordance with
DnV’s Watch One (DnV W-1).
The onboard systems provided by Kongsberg
Maritime included Dynamic Positioning System (SDP)
with SDP/SJS Operator Terminals (OT) for remote use
and the Integrated Ship’s Control System (ISCS), which
included: SEAMAP 10 Electronic Chart Display and
Information System (ECDIS), DGPS, LORAN-C and
Automatic Radar Plotting Aid (ARPA).
For training, the Coast Guard chose Kongsberg
Maritime Simulation to interface its POLARIS
Simulator System with the onboard equipment. The
bridge watch standers of the MACKINAW also received
Double Hulled
AT/B Tugs to be
Built at Senesco
In a move that will change Senesco Marine’s
focus and provide continuous work for the next three
years, officials at the shipyard announced they have
signed a contract with New Jersey-based U.S.
Shipping, LLC (USSHIPLLC), the largest American
Flagged petroleum/chemical carrier in the United
States, to build a 140,000- barrel double-hulled
chemical AT/B with tug that can double as a 150,000-
barrel double-hulled petroleum AT/B. U.S. Shipping
has options for three more 150,000-barrel double-
hulled petroleum AT/B’s with Senesco Marine. The
move will more than double Senesco Marine’s work-
force, which currently stands at approximately 200.
Construction is expected to take around 14
months for the barge and 12 months for the tug. If all
goes according to plan, Senesco Marine will start cut-
ting steel in December and expects to deliver the
AT/B early in 2006. The AT/B will be the first for
U.S. Shipping.
When complete, the barge component of the AT/B
will measure 512 feet long with a displacement of
26,600 tons. The tug will measure approximately
145 feet in length with 10,000 hp along with state-of-
the-art controls, galley and sleeping quarters capable
of holding a crew of 16. All total,the AT/B will meas-
ure approximately 600 feet long.
Offshore Source June, 2005
a highly accurate technology that automatically and
rapidly detects the existence of nuclear devices, radio-
logical or “dirty bombs,” explosives, chemical
weapons and other contraband. NRFI identifies these
threats by scanning the constituent chemical elements
of the contents of a cargo container, vehicle or suit-
case. This technology identifies the contents of a con-
tainer or suitcase without having to open it up and does
not depend on a human operator attempting to make a
visual identification of possible threats. This is in stark
contrast with the current generation of high-energy x-
ray scanning devices.
Passport Systems was founded in December 2002
to commercialize nuclear resonance fluorescence
imaging technology, which was developed by William
Bertozzi, a professor of physics at the Massachusetts
Institute of Technology, and one of the company’s
founders. Passport Systems is exclusively licensed by
MIT to use its nuclear resonance fluorescence imaging
patents.
DP Operator training at the Kongsberg Maritime Inc,
Training Centre in Houston, Texas. Once commissioned,
an onboard training program will increase the crew’s
skills. This room will have both the ship’s simulator and
DP trainer console.
The POLARIS simulator and DP trainer console are
currently at the Pre-Commissioning Office located next
to the shipyard while the ship is being completed by
Marinette Marine. This arrangement enables the crew to
train on the navigational equipment and maintain crew
proficiency in ship handling, DP operational and naviga-
tional skills. Actual transits have already been set up on
the simulator and watch teams stand ‘real-time’ watches
with realistic scenarios specific to Great Lakes transits.
“For Kongsberg Maritime, this project represents the
first time we have been a lead system integrator on a
USCG vessel. Kongsberg Maritime was praised for its
advanced technologies and dedication of staff. We are
now well poised with the U.S. Coast Guard.” states Olav
Stein Liavaag, Kongsberg Maritime’s Overall Project
Manager during the systems integration onboard
MACKINAW.
Subsea Industries manufactures and supplies powerful
underwater ship hull cleaning systems and ancillaries.
Our rotary cleaning units are considered by many to be
the most powerful & efficient available. We provide cost
effective and innovative technical solutions for all ships’
hull cleaning and protection requirements. Our customer
back up and support services are second to none. A range
of systems is available for various applications, from
cleaning any pleasure yacht up to 8500 TEU container
ships.
The underwater environment is harsh and unrelenting
and so sturdy, reliable and efficient equipment is vital.
The unique design of our series of Typhoon underwater
cleaners provides the efficiency and durability demanded
by such conditions. All our systems are carefully
designed and operational safety is always our prime con-
sideration.
Due to close cooperation with our sister company
HYDREX NV, which has had worldwide experience in
underwater hull cleaning for more then 30 years, we have
been able to constantly improve our Typhoon hull clean-
ing machines in operational conditions. The latest MC
312 model was used to clean a 600-foot roro carrier. The
machine operator spoke about its use afterwards saying,
“The ease with which this new machine can be applied to
the hull makes it the best cleaning machine I have ever
used. It maneuvers far more easily than earlier versions
whilst at the same time stays on the contours of the hull
with less effort.”
We have now two different three headed systems
available, the MC 311 which has been in use for more
then 15 years, and our latest version of the MC 312.
The unique design of the MC 312 underwater hull
cleaner provides the versatility, efficiency and durability
Vessels Need Response
Plan to Enter U.S. Ports
Legislation intended to further protect U.S. waters from
marine-sourced pollution requires all self-propelled vessels
over 400 gt calling at U.S. ports to have a Vessel Response
Plan similar to that currently required for tankers. The leg-
islation is in recognition of the sometimes considerable vol-
ume of bunkers carried by dry cargo vessels that could lead
to a significant marine pollution incident. The U.S. Coast
Guard has issued interim guidance for the development of
the required Vessel Response Plans. This is contained in
NVIC 01-05. The full text of the NVIC is available at
http://www.eagle.org/regulatory/uscg/nvic.pdf or at
www.uscg.mil/hq/g-m/nvic.
The legislation requires that Response Plans must be
prepared and submitted to the U.S. Coast Guard no later
than 8 August 2005. In the likely event that the formal reg-
ulations will not have been issued by that date, the Coast
Guard may issue a two year authorization letter to the ves-
sel, provided that the Response Plan submitted is in con-
formance with the NVIC.
Principal elements of the NVIC mandated Response
Plans require the vessel operator to nominate a Qualified
Individual (QI), identify a spill response organization and
describe the training, equipment testing and drills required
of the vessel’s crew.
In particular, the Vessel Response Plan must identify the
location at which the specified vessel plans and associated
data necessary to perform salvage, stability and hull stress
assessments are maintained. The NVIC recognizes the ves-
sel’s classification society as being a suitable location.
ABS, through its affiliate ABS Marine Casualty
Response, Inc. (ABS MRC), provides a comprehensive
Rapid Response Damage Assessment (RRDA) service and
offers owners a range of services to meet the NVIC require-
ments, from compiling and storing the necessary informa-
tion to full damage assessment modeling of the vessel. ABS
MRC suggests that operators of vessels that routinely carry
significant quantities of bunkers, such as large container-
ships, would benefit from enrolling such vessels in the
RRDA service so that the necessary stability model can be
developed in advance so that an immediate assessment and
response strategy can be determined in the event of an inci-
dent.
Contact Bob Vienneau at 281.877.6126 or by email:
rvienneau@eagle.org
New Version of Hull
Cleaning System
required to deal with
different operational
conditions that vary
from ship to ship.
The downward pres-
sure of the brushes
can be easily adjusted
throughout the opera-
tion whilst the clean-
ing heads are self-adjusting to the contours of the hull.
These, coupled with a powerful “four-wheel” drive sys-
tem, are the major technological breakthroughs in subsea
cleaning. Different types of fouling on different types of
coatings can now be treated with the appropriate pressure
and tools, thus preventing damage to the hull coating.
The MC 312 has a very fast cleaning rate. It is designed
for larger ships hulls or other large, reasonably flat sur-
faces.
We also have a smaller two-head unit and several sin-
gle brush hand-cleaning and propeller polishing machines
available. We can adapt any package to suit your require-
ments and budget and provide either just the cleaning
units themselves or otherwise supply the complete sys-
tem,
19
OS_June 05final 5/24/05 4:49 PM Page 20
Supplier News
CCTV Explosion-Proof
Camera Station
At OTC this year, Fugro OCEANOR featured
their new CCTV Explosion Proof Camera Station,
in addition to their tried, tested, and much used
Crane Boom Camera System; and range of
Surveillance Camera Systems for both safe and haz-
ardous areas.
The most recent introduction to the camera sys-
tem range is the new Explosion Proof Camera
Station with internal wiring. This compact EEx de
camera housing and pan/tilt unit, accompanied by
the integrated EEx de junction box, are all manufac-
tured in 316L stainless steel with IP66 minimum
ingress protection.
There are two options available – the OCN IPTC
MK 1/ JB2, which provides a larger junction box for
mains or fiber optic cable connection; and the OCN
IPTC MK1/ CH2 which includes a wiper motor for
wiping or washing.
The camera station is delivered complete with a
sunshield and a thermostatically controlled heating
element. All internal wiring is made pluggable for
ease of maintenance and service.
The pan/tilt can be equipped with position feed-
back system and active pre-position; and is available
with a simple plug-in PCB on the telemetry receiv-
er. The pan/tilt unit is also equipped with magnetic
brakes in both pan and tilt directions to further
secure the camera at a set position. Adjusting the
electronic limit switches can set the working area for
the pan/tilt.
The compact telemetry receiver is installed in the
camera housing and allows for both “up-the coax”
and twisted pair telemetry. It also includes an
advanced auto-tuning system for simple and reliable
set-up and communication. The camera station is
equipped with a modern high-resolution compact
camera block with and integrated zoom lens. Full
technical specifications are available in datasheet
format.
The CTVS-2000 Crane Boom Camera System is
designed to help take the risk element out of crane
ADCPs Support
MMS Initiative
in the GOM
The U.S. Minerals Management Service, in collabo-
ration with the industry experts, has mandated a new
environmental requirement for drilling rigs and floating
platforms operating in the Gulf of Mexico. Under this
new program, operators in this region will collect and
share current data from drilling and production sites
located in greater than 400 meters of water. The new
monitoring program is designed to ensure that operators
and drilling contractors have better information for exist-
ing and forecasted current conditions.
Chris Oynes, MMS Gulf of Mexico Regional
Director, explained in a recent news announcement,
“This cooperative effort between government and indus-
try will advance our understanding of these currents and
ultimately improve our ability to prepare for them.”
In support of this latest initiative, RDI worked very
closely with our customers and increased our manufac-
turing capacity to meet the delivery requirements. RD
Instruments has been providing the offshore oil and gas
industry with deepwater acoustic Doppler current profil-
ing (ADCP) products and solutions for over 20 years.
Grant Jennings, Commercial Sales Manager for
RDI’s Marine Measurements group, adds “We were con-
sulted early on in this process to work with our cus-
tomers and the industry to provide them with the data
they need to be in compliance with this new safety regu-
lation. We’ve been providing deepwater products in sup-
port of this industry for many years, and are very pleased
to play a continuing role in the safety and productivity of
these offshore platforms.”
20
operations by ensuring the best possible view of
areas under the load. Well over 300 systems have
been installed on drilling rigs, platforms, FPSOs and
bulk carriers. Incorporating a high-resolution color
camera with integrated 12x zoom and (override-
able) auto focus – both zoom and focus can be oper-
ated remotely by a joystick in the crane cab – the
system is easy to install. Amongst its features are a
10.4-in. TFT monitor (larger displays are available
as options) and a miniaturized stainless steel EEx de
IP66 camera housing with thermostatically-con-
trolled heating element.
The camera is suspended in a magnetically-
dampened vertical pendulum (Multimek™) – the
dampening principle is practically unaffected by
extreme temperature shifts. The system, which
operates on 90-250V, 50-60Hz, can be extended
with an extra camera for the winch.
The rest of the Fugro OCEANOR range of sur-
veillance camera systems includes integrated CCTV
(closed circuit TV) for both safe and hazardous
areas, and sub-sea TV systems (guideline, guide-
line-less or fixed). Modular in design, these inte-
grated systems have been installed on many offshore
platforms and vessels. They can be standard or tai-
lor-made and have proved extremely reliable, flexi-
ble, user-friendly and offer ‘best life-cycle cost’.
Fugro OCEANOR prides itself on working with
clients to ensure that their surveillance camera sys-
tems provide the ideal answer for a customer’s pres-
ent and future requirements. They work closely
with each client through key stages such as an initial
survey, scope of work, engineering, procurement,
production, documentation, installation, commis-
sioning to determine the right system for the job in
hand. This could range from a small system feeding
into just one or a few monitors, to a large complex
system comprising several cameras, multiple opera-
tors and multiple monitors. After-sales service is of
equal importance and Fugro OCEANOR can supply
spares and offer full maintenance services.
SEACON Product Wins
Prestigious Award at OTC
SEACON Advanced Products, LLC and Lockheed Martin
have jointly won the prestigious Woelfel Best Mechanical
Engineering Distinguished Innovation Award for the HydraLight
Wet-Mate Optical Connector. The award was made by the
International Petroleum Technology Institute (IPTI) of the
American Society of Mechanical Engineers (ASME) at the
annual ASME Industry Leadership Awards ceremony at OTC
2005 on May 4th, 2005.
Winter Rescue in
the Arctic
Leading life-saving appliance supplier, VIKING Life-Saving
Equipment, has developed a new evacuation system specifically
designed for frozen waters and harsh arctic environments.
At present, there is a great deal of international interest in the
arctic regions, but severe winters limit rescue operations. Fog
and winter ice make evacuation by helicopter unsafe and the use
of free fall lifeboats impossible. In response, VIKING has mod-
ified its already proven offshore chute system to cope with the
special conditions encountered when evacuating by chute direct-
ly onto a ship.
The new design incorporates a counterweight system that
compensates for the heave of the vessel, even in the heavy seas
encountered in arctic waters. The chute is kept taut without the
use of electrical power.
In warmer seasons when evacuation by liferaft is possible,
the innovative VIKING system functions as other standard chute
systems. The boarding platform, which is deactivated for direct
vessel rescue, deploys and keeps the chute taut, using weights.
VIKING is the only company we know of that offers a system
that is stable in all climatic conditions.
VIKING has delivered four SES-2C Arctic evacuation sys-
tems for installation on fixed floating platforms operating in the
Sakhalin Fields. The platforms will be equipped with chutes
designed to evacuate 140 people in 10 minutes to sea level, some
28 meters below.
Veripos Extends
Global DGPS
Coverage
Veripos has extended the South American sector of its global
Differential GPS service with the establishment of new facilities
in Peru serving offshore users in the Pacific region. They com-
prise two land-based reference stations at the coastal cities of
Chiclayo and Lima providing rapid update rates and low data
latency, with correction data relayed via Inmarsat satellites.
As with other Veripos global coverage, the new DGPS net-
work permits computing of multiple reference station solutions
for added reliability and precision. Fully compatible with all
types of GPS receiver using the RTCM SC104 V2.3 format, the
single and dual frequency service ensures enhanced positional
accuracies and performance while also extending the validity of
operations during any periods of heightened ionospheric activity.
Typical accuracies are between 1 and 3m.
The new service extends Veripos’ existing pan-American
DGPS services in North America, the Gulf of Mexico, Trinidad
and Brazil and follows recent extension of its multi-station
Brazilian network to include complementary Glonass facilities
as a secondary GNSS satellite positioning source.
Offshore Source June, 2005
OS_June 05final 5/24/05 4:49 PM Page 21

Fugro Pelagos Wins QCS Receives

Project of the Year Order for Pipeline Supplier News

The Alaska Surveying and Mapping Conference Committee honored Fugro

Pelagos, Inc. with the 2005 Project of the Year for their survey in Sitka, Alaska.
Connectors
This annual award recognized Fugro’s exemplary contribution to the nautical
Quality Connector Systems LLC (QCS), a
charting efforts of the National Oceanic and Atmospheric Administration
Houston-based subsea pipeline connector
(NOAA) in Alaska.
products company, announces that it has
In 2004, NOAA contracted Fugro Pelagos to chart 87 km2 of the Sitka
received an order from an affiliate of
region, an intricate area of islands and drying reefs containing a highly irregular
Enterprise Products Partners LP, the operator
shoreline with many rocks, foul areas and kelp. Fugro successfully and econom-
of the High Island Offshore System
ically integrated Airborne LIDAR Bathymetry (ALB) and ship multibeam echo
(HIOS), one of the largest natural gas
sounding (MBES) operations to complete the survey, representing NOAA’s first
gathering systems in the Gulf of
simultaneous deployment of these systems.
Mexico. QCS will provide the
Fugro collected topographic and bathymetric LIDAR data and conducted
Company’s mechanical pipeline
MBES surveys to collect the near shore and deeper offshore data. Navigation
connectors to comprise an emer-
safety and scientific information for the Sitka region were significantly enhanced
gency pipeline repair system for the
by the high-resolution, 100% coverage of MBES and ALB data over the shoal
42” subsea natural gas main transmission
zones surrounding the numerous islets. Integrating these types of data produced
line in the HIOS system. The 42” GripLock™ Flange
additional information, resulting in the fusion of airborne and acoustic data co-
end connectors and the FlangeMate™ misalignment ball
registered with high-resolution digital imagery. The imagery was then used to
connectors will be warehoused at the HIOS facility in Sabine
create an orthorectified photomosaic of the survey area, which showed the shore-
Pass, Texas to be kept in a state of readiness for rapid deployment
lines, islands and sea surface, greatly enhancing shoreline verification data prod-
in the event of a subsea damage event on the pipeline. Quality
ucts. Fugro further incorporated the topographic LIDAR mapping capability,
Connector Systems is a full-service designer and manufacturer of engi-
resulting in beach and onshore feature mapping integrated with the bathymetry.
neered subsea pipeline connectors for the offshore oil and gas industry.
With this survey, Fugro became the first company contracted by NOAA to per-
For more information Phone: 713-526-7274 or visit www.qualitycon-
form both MBES and ALB surveys within a single field area in support of nau-
nectorsystems.com
tical charting.

Intense Activity for Fugro

GEOS in Gulf of Mexico
The need for increased understanding and awareness
of the importance of the oceans around the U.S., follow-
ing establishment, by Congress, of the Commission on
Ocean Policy; and the Bush Administration’s response to
the Commission’s work, has led to heavy demands on the
expertise offered by the Houston office of the world’s
leading metocean company, Fugro GEOS.
Fugro GEOS is experiencing increased activity in the
Gulf of Mexico as a result of the cooperation between the
U.S. Minerals Management Service (MMS) and offshore
oil and gas producers. These organizations are engaged
on a pioneering monitoring program to improve the
U.S.A.’s understanding of powerful ocean currents that
have the potential to affect deepwater operations across
the Gulf. All deepwater operations are subject to the
Minerals Management Service (MMS) Notice to Lessees
(NTL) 2005-GO2, requiring real-time measurement and
dissemination of Acoustic Doppler Current Profiler
(ADCP) data.
The Background
“President Bush’s statement on the importance of
building a Global Earth Observation Network, including
Integrated Oceans Observation way at the Earth
Observation Summit in July 2001 was key to starting this
particular ball rolling,” explains Jan van Smirren,
Regional Director, Fugro GEOS.
“Congress played a vital role when they established
the U.S. Commission on Ocean Policy to help create
greater understanding of the importance of the ocean,
coasts and Great Lakes to the U.S.A. Chaired by retired
Admiral James Watkins, the Commission began work in
September 2001 and in September 2004 published a thor-
ough and expansive report: ‘An Ocean Blueprint for the
21st Century’.
“The Bush Administration’s constructive response,
‘U.S. Ocean Action Plan’, followed; and this, coupled
with the NTL aimed at all operators in the Gulf of
Mexico lies at the heart of all this frenetic activity,” says
van Smirren.
“The NTL from the US MMS, issued initially in
November 2004 and updated in January, set out plans to
establish and implement an ocean current monitoring and
data-sharing program in the Gulf of Mexico. Under the
NTL, deepwater oil and gas platform operators will col-
lect ocean current data from deepwater drilling and pro-
duction sites, and publish it on the Internet. Several
months ago, initial feedback indicated that more than
forty operating sites would collect data on a daily basis.
Over the past months, MMS has also engaged industry in
discussions on how this information may best be inte-
grated into the IOOS currently under development.
“The NTL applies to floating production facilities
and drilling rigs in water depths greater than 1,312 feet
(400m), and is aimed at ensuring that the current data
are gathered and reported in a consistent manner. The
clients with whom we have been working to meet the
requirements are operating in water depths ranging
from 1,400ft (425m) to 9,000ft (2,750m). Under the
terms of the NTL we are also working with a number of
clients on their requirements for planned future floating
production facilities.”
The Fugro GEOS solution
To meet the requirements of the NTL, Fugro GEOS
has developed Ocean VISION an ADCP Data
Acquisition and Management service, which can work in
conjunction with both a Fugro GEOS data acquisition
suite or an operator’s existing measurement system. “The
development of Ocean VISION has been ongoing over
the past two years. However, speed was very much of the
essence to include last minute changes to ensure that the
system would meet the MMS data needs and all-impor-
tant March 31, 2005 date,” explains van Smirren.
Ocean VISION is an innovative web-based service,
enabling users onshore to view offshore conditions in
near real-time. Data are transferred from the offshore
data acquisition system using Fugro GEOS’ RTADCP
program. This provides a simpler interface to set up the
file transfer (using File Transfer Protocol, FTP). For
speed, consistency and accessibility, data are retained in
the native binary format from RD Instruments’ broad-
band ADCPs. Data can then be transferred automatical-
ly to the MMS nominated website at 12-hourly intervals,
as specified by the NTL.
Data received at the Fugro GEOS FTP server, are
immediately uploaded into the Ocean VISION data-
base. Data are then made available to clients in a web-
based application, using Microsoft’s Internet Explorer,
together with Adobe’s SVG viewer to provide interac-
tive graphics.
“We believe Ocean VISION is the only service that is
able to display data from multiple ADCP’s in an inte-
grated profile, allowing users to be fully aware of current
flow throughout the water column,” explains Jan van
Smirren.
“Naturally, since the publication of the NTL we have
been busy not just developing Ocean VISION and ensur-
ing all our Ocean VISION systems were live by 31
March, but also providing many of our clients with addi-
tional ADCPs,” he says. “During the first quarter of
2005, we have had over twenty ADCP’s (Acoustic
Doppler Current Profilers) deployed in the Gulf of
Mexico for ten Fugro GEOS clients. A further five real-
time current monitoring systems involving up to eight
ADCP’s are on order for deployment in the near future.”
The majority of the systems installed offshore have
included a combination of 38kHz and 75kHz RigADCP
systems. These rig-based current monitoring systems
measure from near surface over a maximum water depth
range of 3,600ft (1,100m) and 2,000ft (600m) respec-
tively. In addition, Fugro GEOS has also provided more
than five bed-mounted ADCP monitoring systems for
operations in waters greater than 3,600ft (1,100m).
Many on these systems have also been provided with
real-time acoustic data telemetry.
At the time of increase in the Gulf of Mexico current
monitoring activity, Fugro GEOS already owned the
world’s largest fleet of 38kHz ADCP’s. The company
has since more than doubled the number of units that it
owns to ensure that it can meet the needs of all clients
now and in the future.
Fugro GEOS has also had three vessels operating
Vessel Mounted ADCP (VMADCP) current monitoring
systems active within the Gulf of Mexico during the first
quarter. The vessels assist with particularly current sen-
sitive drilling and offshore construction operations by
mapping the current conditions and monitoring the loca-
tion and movement of the strong band of currents relative
to work sites. A combination of 75kHz and 300kHz
(maximum range 460ft, 140m) have been used to map
currents in this way, with the 300kHz unit providing
greater detail over the near-surface layer. As part of this
service, Fugro GEOS is also providing clients with near
real-time data analysis services on a 24/7 basis, to
ensure that the current data are provided in clearly
understandable and usable formats, typically within an
hour of collection.
“The last quarter has included a number of specific
challenges, not least of which has been the logistics of
preparing, mobilizing, installing and operating such a
large number of systems” explains van Smirren.
“However, our highly motivated, experienced and dedi-
cated staff has ensured that we have met and continue to
meet those challenges head-on.”
For further information, please contact: Jan van
Smirren - Regional Director j.smirren@geos.com

Offshore Source June, 2005 21

OS_June 05final 5/24/05 4:50 PM Page 22

Offshore Source
OTC Report
OTC 2005 Focuses on Sustaining the Success of Offshore Industry

New technologies and new ideas to sustain the

growth of the industry overflowed at this year’s
Offshore Technology Conference (OTC), bringing a
record 51,320 attendees to Houston for four days. The
conference was held 2-5 May at Reliant Center at
Reliant Park in Houston.
“Industry leaders gathered in sessions focused on
the future of financing the offshore oil and gas indus-
try to meet the world’s increasing energy demands and
on recruiting personnel to replace the aging work-
force,” said Rod Allan, OTC ‘05 Chairman. “Those
who participated in these sessions took part in creating
history — some of the industry’s brightest minds dis-
cussed ideas that will define the course of the industry
during the next decade.”
Allan added that an array of new technologies was
presented for the first time. The Spotlight on New
Technology program highlighted 14 innovative tech-
nologies that are already making the industry more
successful.
The 51,320 participants in 2005 represent OTC’s
highest attendance since 1985 – arriving from 110
nations around the world.
The exhibition at OTC this year included 2,087
exhibiting companies, totaling more than 410,000 net
square feet, filling all available indoor and outdoor
space.
Navigating the show was much easier than in past
years since the show moved into the Reliant Center.
This year you could feel the confidence of the oil and
gas industry in the air. The mixture of Salsa dancers
and exotic race cars inside and bands outside
increased the feeling of optimism. The evening par-
ties, such as the incredible event that Cameron put on,
pretty much said it all.
The exhibits were large, expensive looking and
even extravagant in some cases. Many of the larger
exhibits had full-service bars tending to the many vis-
itors to the booths.
There also seemed to be more large hardware,
characteristic of the past. The incredible models of
ships and platforms would still stop you in your tracks.
The outside exhibit area grew also, and with the
perfect weather conditions all week, made cruising the
outside exhibits a pleasure, especially the welding
demonstrations at the Miller booth.
The 2006 OTC, “New Depths. New Horizons,”
takes place 1-4 May at Reliant Center at Reliant Park.
For more information, visit www.otcnet.org/2006.

22 Offshore Source June, 2005

OS_June 05final 5/24/05 4:50 PM Page 23

June 7-9, 2005: July 17-21, 2005: September 20-23, 2005: October 25-27, 2005:
GO-EXPO Coastal Zone 05 Subsea Houston 2005 LAGCOE
Biennial Calgary Oil & Gas Show New Orleans, LA The Woodlands, TX Lafayette, LA
Calgary, Alberta +1 (888) 799 2545 www.csc.noaa.gov/cz/ www.SubseaHouston.com
November 1-4, 2005
June 8-10, 2005: August 21-24, 2005: September 27-28, 2005: Offshore Communications
Subsea Rio 2005 UUST Dynamic Positioning Conference 05 Houston, TX
Rio de Janeiro, Brazil Durham, New Hampshire Houston, TX www.offshorecoms.com
www.SubseaRio.com www.ausi.org/uust/uust.html www.dynamic-positioning.com
November 6-9, 2005:
June 15-17, 2005: September 6-9, 2005: October 4-7, 2005: PACON 2005
Offshore Brazil Offshore Europe 2005 DEMA Changhua, Taiwan
Rio de Janeiro Aberdeen, Scotland Las Vegas, NV www.hawaii.edu/pacon
www.offshore-europe.co.uk
June 20-23,2005: October 19-21, 2005: Jan, 30-Feb 1, 2006:
IEEE Oceans 05 September 19-23, 2005: SMTC&E (SNAME) Underwater Intervention
Brest, France Oceans 2005 MTS/IEEE Houston, TX New Orleans, LA
www.oceans05europe.org Washington D.C. www.maritimeexpo.com www.underwaterintervention.com
info@oceans2005.org

Issue/Trade Show Date

2005
January
Marine Construction Houston-Feb 7-9

February the global ocean forum

Underwater Intervention-Feb 14-16
SPE/IADC-Feb 23-25

March
U.S. Hydrographic Conf-Mar 29-31 21-23 MARCH 2006 LONDON ExCeL

April
EnergyOcean 2005-April 26-28
THE WORLD'S LARGEST MEETING
May
OTC-May 2-5
PLACE FOR MARINE SCIENCE AND
OCEAN TECHNOLOGY
June
Brazil Offshore-June 15-17

July www.oi06.com
To Be Announced
CONTACT:
SPEARHEAD EXHIBITIONS LTD
August
To Be Announced TEL +44 (0) 20 8439 8892
EMAIL enquiries@oi06.com
September
Offshore Europe-Sep 6-9
MTS/IEEE Oceans-Sep 19-23

October
SPE/ATCE-Oct 9-12
LAGCOE-Oct 25-27
Offshore Communications-Nov 1-4

November
Clean Gulf-Nov 9-10

December
WorkBoat-Nov 30-Dec 2
*Publisher reserves the right to change show distributions
at any time

Offshore Source June, 2005 23

OS_June 05final 5/24/05 4:53 PM Page 24

Company News

Nautronix plc, the Aberdeen-based Centre of Excellence

for Commercial Acoustics of the Nautronix Group,
announced the appointment of Andrew (Andy) McMurtrie
as the Director of Sales for NASNet™, the leading edge tech-
nology in underwater navigation and positioning.
Continental Energy Corporation announced that David
Tai Wai Yu has been appointed to the Board of Directors and
will serve as a non-executive director until the Company’s
next annual meeting of shareholders.
Horizon Offshore, Inc. announced that its board of direc-
tors has elected David W. Sharp, currently its Executive Vice
President and Chief Financial Officer, as President and Chief
Executive Officer. Mr. Sharp also was elected to the
Company’s board of directors for a term expiring in 2007 to
fill the vacancy caused by the resignation of Bill J. Lam in
December, 2004. The Company also announced the promo-
tion of Ronald D. Mogel, currently Vice President
International Accounting and Tax of the Company’s sub-
sidiary Horizon Offshore Contractors, Inc., to Chief Financial
Officer. The elections will be effective on April 30, 2005.
Richard A. Sebastiao of RAS Management Advisors, Inc., a
turnaround and management consulting firm, who func-
tioned as the Company’s Chief Restructuring Officer and
principal executive officer since August 30, 2004, has
resigned, also effective on April 30, 2005.
AmerCable Incorporated, has announced a new
financial partnership with Industrial Growth Partners
(IGP), a private equity firm headquartered in San Francisco,
California. According to AmerCable President and CEO
Robert F. (Bob) Hogan, this new financial partnership match-
es perfectly with AmerCable’s management goals to contin-
Trenching and Burial Experts! ue its significant global expansion and sales growth in the oil
and gas market.
CCSI’s Board of Directors is pleased to announce the
• Pipeline Burial appointment of Gary L. Brown as President. CCSI has
• Umbilical Trenching been an industry leader in corrosion protection for more than
20 years, with more than two million field joints coated
• Engineering and Consulting worldwide and the largest fleet of field joint coating systems
in the world. Mr. Brown has been active in the Oil and Gas
• Cable Installations and Burial industry for over thirty years and has held numerous senior
management positions at companies including Halliburton,
Dresser Industries, Axelson and Cooper Cameron. Most
recently he was President of CRP Balmoral Inc.
Occidental Petroleum Corporation announced that for-
mer U.S. Secretary of Energy, Spencer Abraham, 52, was
elected by the company’s stockholders to its board of direc-
tors. Mr. Abraham joins 10 other independent, outside direc-
tors, and Dr. Ray R. Irani, Chairman, President and Chief
Executive Officer, who were reelected to the board. Mr.
Abraham served as Energy Secretary from 2001 until earlier
this year. As Energy Secretary, he led the initiative that result-
ed in the development of the nation’s first comprehensive
energy plan in more than a decade,
SOLA Communications announced the recent promo-
tion of Steve Landry to Sales Manager of both the
Telecommunications and Safety and Controls divisions of the
company. Art Gunnells has been named Training Manager
for the company. Gunnells comes to the company with over
14 years of experience in the health and safety management
industry.
Data Technology Solutions is pleased to announce the
appointment of Tricia Echols. Tricia will be handling all
aspects of sales for the remote communications industry.
Tricia was previously with Coastel Communications before
joining DTS.
Dr. Donald Albrey Arrington, a fourth-generation
Project Consulting Services to the Floridian who served as a staff environmental scientist on the
Kissimee River Restoration Project, has been appointed sci-
ence director for the Perry Institute for Marine Science. He
Offshore and Subsea Industries is a specialist in restoration ecology whose work has includ-
ed researching the impact of the Kissimee River restoration
on fish populations and on ecological impacts of tidal estuary
restoration in the Bahamas. Catherine Booker, a Perry
Fellows Marine Science Intern, has been appointed research
• Fiber Optic Communication Networks associate for the Perry Institute for Marine Science.
Applanix announced the appointment of Brad Koziey to
• Topside and Subsea Sensors, Security and Surveillance the position of Director of Sales, and Kevin Perkins to the
• Cable and Pipeline Seabed Engineering position of Executive Sales Manager, Airborne Products for
• Ocean Observing Systems the Americas.
IDM Electronics, Electro-Tec and Focal Technologies
are now Kaydon Power and Data Technologies – a glob-
al alliance answering the demand for power and data
transmission solutions. Kaydon Power and Data
Technologies leads the design and supply of electrical and
Ocean Specialists, Inc. fiber optic rotary interface components, and optical multi-
plexers. From rotating interface solutions for marine, energy,
Contact: Jim Byous defense, aerospace, to industrial applications such as CCTV,
772-600-1030 robotics or packaging, Kaydon Data and Power Technologies
Ocean Specialists, Inc.
jbyous@oceanspecialists.com has an increased capability to respond.

24 Offshore Source June, 2005

OS_June 05final 5/24/05 5:07 PM Page 25
Plastics—An Alternative Fuel
in a Landfill Near You
Innovative Companies Reduce Dependence on
Oil & Natural Gas by Recycling Trash
While oil rigs drill for crude oil in the
ocean, in sensitive ecosystems and in polit-
ically charged regions of the world, an
alternative fuel is needlessly piling up in
our landfills. Although transportation and
home heating fuels consume a majority of
the world’s oil production, the use of crude
oil to make the millions of plastic products
people use every day consumes 8% of the
world’s oil supply, or 2.2 billion barrels a
year. Much of this plastic quickly goes to
landfills in the form of discarded products
and packaging.
Unlike home heating and motor vehicle
fuels that are burned and emitted, the oil cap-
tured in plastics offers a rare opportunity to
reuse those petroleum-based materials
through recycling. Greater use of recycled
plastics not only can help reduce America’s
demand for crude oil and natural gas, but it
will also reduce the cost to the environment
caused by the exploration, mining, repro-
cessing and transportation of these precious
resources. Perhaps most important to some,
it would also help avoid the many social,
economic and political problems associated
with the United States’ reliance on oil and
other carbon-based fuels.
It is surprising that many people don’t
know how plastic is made. “Most plastic
materials are derived from small molecules
which are sourced from crude oil or natural
gas,” says Steve Grossman Ph.D., a profes-
sor at the Department of Plastics
Engineering, University of Massachusetts at
Lowell, a premier U.S. plastics engineering
university. “The small molecules are
obtained from oil by a process of petroleum
cracking, which breaks the larger molecules
into small molecules. The small molecules,
known as monomers, are then chemically
reacted and converted into polymers, which
are then molded into desired plastic shapes,”
Grossman explains.
Look around you at all of the things made
from plastic. Could they have been made
with recycled plastic rather than virgin oil-
derived plastic? That is the kind of question
that drove entrepreneur Eric Hudson to
found Recycline®, an environmental con-
sumer products company, in 1996.
“Sourcing recycled plastics for consumer
products instead of using virgin resources
reduces energy consumption, conserves nat-
ural resources, avoids pollution and landfill
waste, and reduces dependence on foreign
fuels,” states Hudson, Recycline’s President
and CEO.
The first step that would help with
America’s transition to plastics recycling on
a larger scale is for more manufacturers to
use recycled plastic in the production of their
plastic products. The Preserve™ Razor
Recyclable is the latest addition to Waltham,
Massachusetts-based Recycline’s Preserve
brand, which already includes the number
one selling toothbrush line in the natural
product marketplace. Like the Preserve®
Toothbrush, the handles of the Preserve™
Razor Recyclable are made from 100% recy-
cled plastic - at least 65% of which is recy-
cled Stonyfield Farm® yogurt cups.
“Our partnership with Recycline is
important because it demonstrates what
companies can do to take responsibility for
their products, from design to disposal,”
states Gary Hirshberg, President and CEO of
Stonyfield Farm, the world’s largest organic
yogurt producer. “The simple act of buying
products that help preserve natural resources
and contribute to responsible, sustainable
growth is extremely powerful. Our partner-
ship with Recycline has made possible the
recycling of more than 1,000,000 yogurt
cups into useful new products like the
Preserve® Toothbrushes, and now, the
Preserve™ Razor Recyclable.” He adds
that the Recycline partnership is in keeping
with Stonyfield’s mission of environmental
Offshore Source June, 2005
responsibility, which includes being
America’s first manufacturer to offset 100%
of its CO2 emissions from its facility’s ener-
gy use.
The Preserve Razor features a patent-
pending handle made of recycled plastic that
enables the user to squeeze off the blade and
recycle the handle when finished. The han-
dles are completely recyclable through com-
munity recycling programs that accept #5
plastics or, as consumers do now with the
Preserve Toothbrush, by using Recycline’s
postage-paid recycling mailer. All Preserve
brand products that are returned to Recycline
are recycled into useful plastic lumber prod-
ucts such as decks, park benches and chil-
dren’s playground equipment. “The
Preserve™ Razor Recyclable attacks the
excessive resources consumed by disposable
razors in the United States,” adds Hudson
According to US EPA estimates, 2 billion
disposable razors make their way into land-
fills in the United States every year. “That’s
a lot of wasted crude oil and natural gas,”
says Hudson, “both in the handle in the first
place, and in the landfill in the second.” One
ton of recycled plastic saves 16.3 barrels
(685 gallons) of oil, 98 million Btus of ener-
gy and 30 cubic yards of landfill space
(Mississippi Department of Environmental
Quality). Recycling a ton of plastic also
saves about as much energy as is stored in
197 gallons of gasoline (Ohio Department of
Natural Resources).
Innovative companies like Recycline are
demonstrating that it is cost-effective to recy-
cle. “It makes sense not only to use recycled
materials in your manufacturing but also to
design products to be as recyclable as possi-
ble after use,” states Hudson. “At Recycline,
our recycled plastic material costs between
$0.49 and $0.59 per pound, which includes
the transportation costs in our recycling sys-
tem. Presently, comparable virgin plastic OFFSHORE SOURCE
costs between $0.65 and $0.70 per pound,”
says Hudson. “Our material costs are also CLASSIFIED ADVERTISING
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The Preserve brand’s key message is “Preserve
your Health, Preserve the Earth”. The compa- Corporate office:
ny’s mission is to help consumers conserve – to
develop products with improved function and that 772-221-7720
are responsible to the Earth. To learn more
about Recycline and the Preserve brand, please info@offshoresource.com
visit www.recycline.com or call 888-354-7296.
25
OS_June 05final 5/24/05 5:05 PM Page 26

patent pending

MARINE SANITATION
DEVICE
USCG CERTIFIED-IMO APPROVED FOR WORLD
WIDE ACCEPTANCE

NO CHEMICALS REQUIRED

LOW MAINTENANCE
INCLUDES EFFLUENT DISCHARGE PUMP FOR
OVERBOARD DISCHARGE OF TREATED WASTE
ODOR FREE

NO EXTRA TANKS REQUIRED

EASY/AUTOMATIC OPERATION

TOUGH CORROSION RESISTANT MATERIALS

LIGHTWEIGHT UNITS
CAPACITIES UP TO 50,000 GPD

HMX-hydro maceration oxidation

The TIDALWAVE HMX TYPE II Marine Sanitation Device
(MSD) provides state of the art processing of onboard
sewage. Designed for quick starts and stops with the push of
a button, the PLC-automated TIDALWAVE HMX system uses
chemical oxidation, hydro-maceration and media separation
to thoroughly destroy influent biomass. The optional
electrocatalytic system generates sodium hypochlorite on-site
from seawater or brine, eliminating consumables during
operation. The four-stage treatment system provides trouble
free treatment of black and gray water with a sterile effluent
for disposal. These systems are provided in marine grade
aluminum or steel construction with tough flexible ceramic,
epoxy coating for corrosion protection.

www.HEADHUNTERINC.com
Phone: +1-954-581-6996
Fax: +1-954-587-0403

Bright Light Foundation Mission

Inspired by the faith and courage of
Tammy Bright and her family the mis-
Skeets Photo
sion of the Bright Light Foundation is
to raise funds, in the spirit of compas-
sion and fun, to assist with the medical
Service
needs of those within the oilfield com- Industrial Photography
munity stricken by catastrophic illness. for the Offshore Oil & Gas Industry
None of us “expect” to experience a catastrophic illness,
but in reality they strike often and can quickly deplete the Serving the Gulf of Mexico Since 1967
financial resources of many families. We invite individu-
als and companies to support our effort through direct When time is short and quality is paramount,
contributions or participation in our annual dinner/auction use the very best that you can find,
and golf tournament. Merchants who would like to sup- because there truly is no substitute for experience.
port the foundation can additionally do so through the
donation of items for the annual auction. Families of
those working in the oil field industry who are incurring
extensive medical expenses associated with a cata-
strophic illness can apply to the Foundation for financial
support.
ANNUAL FUND RAISING EVENTS
Dinner/Auction Golf Tournament
September 23, 2005 September 24, 2005
Wyndam Greenspoint Hotel Cypresswood Golf Club
12400 Greenspoint Drive 21602 Cypresswood Drive
Houston, Texas 77060 Spring, Texas 77373
Phone: 281-875-2222 Phone: 281-367-3659
P.O. Box 1010, Patterson, La 70392
Applications for assistance and registration forms for our Tel: 985 395 6216 • Page: 504 880 2529
annual events can be found on the foundation’s web site
at: www.bright-light-foundation.com Cell: 985 518 1505

Marine Scientists and Remote Sensing Specialists supporting Oil and Gas
Activities, Environmental Projects and Environmental Studies Worldwide

VFL Energy Technologies, Inc. began as an idea –

a better way to bring efficient Flushing, Pressure
Testing, and Chemical Injection Technologies to the
oil field industry. With our patented equipment and
industry expertise, we continue to do that and more
– always looking to the future – always looking for a
better way to help our customers.
Members of the Association of Diving Contractors Insured by International Special Risks

26 Offshore Source June, 2005

OS_June 05final 5/24/05 5:01 PM Page 27

Inquiries about the event can be THE ONLY INTERNATIONAL EVENT,

emailed to info@offshorecoms.com FOCUSING ON COMMUNICATIONS
TECHNOLOGIES IN THE OFFSHORE OIL & GAS
AND MARINE ENVIRONMENT

Main Sponsor

Luncheon
Guest Speaker

• ACOUSTIC COMMUNICATIONS November 1

Golf Tournament &
• SATELLITE Tutorials
• WIRELESS November 2-4
• FIBER OPTIC SYSTEMS Conference & Exhibition
Marriott Westchase Hotel
• IT SOLUTIONS & Convention Center
• HYBRID NETWORKS Houston, Texas
Spencer Abraham
Former U.S. Secretary of Energy
• REAL-TIME OILFIELD OPERATIONS
• OCEAN OBSERVING SYSTEMS Premier Corporate Sponsor:
• SUBMARINE TELECOMMUNICATIONS Corporate Sponsors:
• SCADA
• SHIP-TO-SHIP Supporting Sponsors:
An SES GLOBAL Company

• SHIP-TO-SHORE
• SHIP-TO-RIG
Media Sponsors:

Organized by:

N E W S + E N E R G Y + T E C H N O L O G Y
Technology Systems Corporation
Publishing & Conferences
PO Box 1096
Palm City, FL 34991

Call for Speakers/Papers

For Conference Information:
Toll-FREE in the USA 877.270.7102
Tel 772.221.7720 / Fax 772.221.7715
info@offshorecoms.com
Let our forum be your platform to inform delegates about developing trends,
enabling technologies and exciting innovations for the Offshore Communications
industry.
Abstracts are now being accepted and should be of the highest caliber, informative,
forward-looking and non-commercial. Speakers should provide attendees with:
•Existing knowledge about the technology and market for offshore communications.
•Insight into the future of communications technologies for the offshore oil & gas
and marine environment.
•Intelligence into upcoming opportunities, contracts, installations and requirement.
Submit An Abstract
Go to www.offshorecoms.com and click on the link, call for papers, to view and
download an application. Email info@offshorecoms.com or fax 772-221-7715
along with the registration form.
OS_June 05final 5/24/05 5:00 PM Page 28