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News Article | May 5, 2017
Site: globenewswire.com

Sendje Berge Limited, a subsidiary of BW Offshore Limited (BWO), has today received termination notice for the FPSO Sendje Berge operating under a contract with Addax Petroleum Exploration Nigeria Limited (Addax) on the Okwori field offshore Nigeria. The termination will have effect from 6 November 2017 and Addax has requested BWO to provide a demobilisation plan for the FPSO. BWO will continue the process with the enforcement of the arbitration award for all outstanding claims against Addax. The outstanding gross claim at the end of the first quarter 2017 was USD 61.8 million. For further information, please contact: BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO represented in all major oil & gas regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


News Article | May 5, 2017
Site: globenewswire.com

Sendje Berge Limited, a subsidiary of BW Offshore Limited (BWO), has today received termination notice for the FPSO Sendje Berge operating under a contract with Addax Petroleum Exploration Nigeria Limited (Addax) on the Okwori field offshore Nigeria. The termination will have effect from 6 November 2017 and Addax has requested BWO to provide a demobilisation plan for the FPSO. BWO will continue the process with the enforcement of the arbitration award for all outstanding claims against Addax. The outstanding gross claim at the end of the first quarter 2017 was USD 61.8 million. For further information, please contact: BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO represented in all major oil & gas regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


Ugochukwu O.,Addax Petroleum
Society of Petroleum Engineers - SPE Nigeria Annual International Conference and Exhibition, NAICE 2015 | Year: 2015

Hydraulic modelling is an integral part of drilling operations, thus its importance for the efficient delivery of a wellbore cannot be over emphasized. The standard API methods for drilling fluid hydraulics assume either Power law or Bingham Plastic, these models provide a simple way of estimating required parameters for efficient drilling operations, but for conventional wells. These models are sometimes not accurate when used to model the hydraulics of more difficult wells. When drilling fluid is circulated, pressure drop takes place due to friction between the fluid and the surface of the stand-pipe, rotary hose, swivel, Kelly, drill-pipe, drill-collar, drill-bit, and the annulus between the drill-string and the open hole or casing. This generates a total frictional pressure drop in the hydraulic circuit called the Stand Pipe Pressure (SPP). The Equivalent Circulating density (ECD), which is generated from annular pressure losses, needs to be predicted correctly to ensure that the fracture gradient of the formation to be drilled is not exceeded, as there will be losses of the drilling fluid into the formation and potential wellbore instability problems. The paper discusses seven (7) rheological correlations/equations from studies (Robertson-Stiff, Casson, Carreau, Sisko & Willamson, Hershel Buckley, Cross and Modified Bingham Plastic) which have been used in different conditions to simulate and predict the parameters required for efficient hole cleaning operations. It then highlights the magnitude of failure that occurs when simple hydraulic correlations/ models are used for complex wells and very viscoplastic fluids. The paper compares and discusses the variation with actual results when the Bingham Plastic, Power, Hershel Buckley and Robertson Stiff models are used to model fluid hydraulics. It proposes that the correct hydraulics of a particular well depends on the nature of the reservoir and bottomhole conditions, as the data from an offset well might not be representative of a target well. Thus it is required that an engineer should run different simulations using different hydraulic models and then compare with the actual data during operations. The difference between the simulated and actual can be used as the fudge factor to further optimize the hydraulics for other hole sections or wells with similar configurations, if the best fit hydraulic model is unavailable in the simulator. Copyright 2015, Society of Petroleum Engineers.


Nwagu C.,Addax Petroleum
Society of Petroleum Engineers - SPE Nigeria Annual International Conference and Exhibition, NAICE 2015 | Year: 2015

Addax Petroleum Nigeria operates the OML-126 and 137 blocks in Nigeria. These are adjacent oil and gas blocks, located in the Niger-Delta region offshore. The close proximity of these blocks, and their similarity in terms of reservoir formation, means drilling activities in these blocks have had similar experiences. Past exploration wells targeting deep reservoirs in the blocks have experienced well control incidents resulting in the loss of millions of dollars due to the loss of several Bottom Hole Assemblies (BHAs), the loss of the wellbores and consequentially the premature termination of the projects. These well control issues were largely due to the pore pressure uncertainties in these blocks, which made it difficult to determine and plan the appropiate mud weights, required for the high pressures of the deep reservoirs. The Star-6 (ST-6) well was a subsea High Pressure High Temperature (HPHT) exploration well, which was successfully drilled by Addax Petroleum Nigeria between September - October, 2014. The well is located in the OML-126 block. Despite the short time frame for planning the well, with a range of possible pressures and temperatures, the drilling and exploration teams worked together to maintain safety and performance, and to overcome various logistical and operational challenges. The success of the well can largely be attributed to; the detailed well engineering planning, successful implementation of lessons learned from past exploration drilling activities in the area and utilization of industry recommended drilling practices. This case study, takes a look at the different stages of well planning and actual execution of the ST-6 well that led to the drilling by Addax Petroleum Nigeria, of the first successful exploration well to date that met all its objectives in the OML-126 block. Copyright 2015, Society of Petroleum Engineers.


Baykulov M.,Addax Petroleum | DuMmong S.,Statoil | Gajewski D.,University of Hamburg
Geophysics | Year: 2011

A processing workflow was introduced for reflection seismic data that is based entirely on common-reflection-surface (CRS) stacking attributes. This workflow comprises the CRS stack, multiple attenuation, velocity model building, prestack data enhancement, trace interpolation, and data regularization. Like other methods, its limitation is the underlying hyperbolic assumption. The CRS workflow provides an alternative processing path in case conventional common midpoint (CMP) processing is unsatisfactory. Particularly for data with poor signal-to-noise ratio and low-fold acquisition, the CRS workflow is advantageous. The data regularization feature and the ability of prestack data enhancement provide quality control in velocity model building and improve prestack depth-migrated images. © 2011 Society of Exploration Geophysicists.


Ugochukwu O.,Addax Petroleum
Society of Petroleum Engineers - SPE Nigeria Annual International Conference and Exhibition | Year: 2016

The time spent on drilling operations in the development of a field is a major percentage of the costs involved in the production of hydrocarbons. However, one of the major challenges facing drilling and re-entry operations today is the prevention of costs and schedule overruns. This is because of the nature of drilling and re-entry operations, the risks involved with the different tasks from well conception up to the completion is not properly accounted for. Other factors like the failure of a new technology planned to be deployed, the pressure of time and the increasing regulatory of safety and environment requirements have made it difficult achieving the financial and timing targets set. The shortfalls in well cost estimation and control are due to reliance on outdated or poor methodologies. Generally, drilling AFE's (Authorization for Expenditure) are generated by applying deterministic methods to offset data and, which primarily consists of the recorded and documented experience of the drilling operations. From the analysis of these data, estimates for drilling performance and the likelihood of facing drilling complications are estimated. Added to all these are also an element of expert judgment, though subjective, that is drawn upon in the estimation of time and costs for the new well/s to be drilled or re-entered. These estimates suffer from the lack of a true scientific approach to predict time and costs which becomes apparent immediately there is a deviation from the planned operations. There has been limited published work involving the applications of probabilistic methods in drilling engineering, particularly when estimating times and costs for re-entry and drilling operations. This fact is even more acute when considering the evaluation of re-entry opportunities and new drilling technologies. There is little or no scope to incorporate an estimation of risks and non-productive time (NPT) in a meaningful manner. This paper presents an accurate probabilistic and risk analysis approach using a subsea re-entry well as a case study. An intervention operation was planned and this method was used to accurately predict the amount of days (and cost) required for the operation, factoring in all the possible risks and time impact on the operation. A deviation of less than 5% was observed when the actual expended time and cost was compared to the planned. Copyright 2016, Society of Petroleum Engineers.


News Article | March 1, 2017
Site: globenewswire.com

Sendje Berge Limited ("SBL"), a subsidiary of BW Offshore Limited, has received an arbitration award relating to its claim against Addax Petroleum Exploration (Nigeria) Ltd for the payment of all outstanding day rates in respect of the hire of SBL's FPSO Sendje Berge, currently operating in Nigeria. The award found entirely in SBL's favour, requiring the claimed day rates to be paid. The arbitration tribunal has further declared that no deduction may be made by Addax from future hire payments. BW Offshore has prior to the award received payment of approximately USD 18.7 million from Addax as partial payment of the outstanding hire payable. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


News Article | February 28, 2017
Site: globenewswire.com

BW Offshore has been successful in the dispute concerning the day rates payable by Addax Petroleum Exploration (Nigeria) Ltd, for the hire of the FPSO Sendje Berge. BW Offshore will revert with further details when the award has been reviewed in detail. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)


News Article | November 28, 2016
Site: globenewswire.com

EBITDA for the third quarter was USD 76.9 million, a decline of USD 7.7 million (9%) (USD 84.6 million). The reduction in EBITDA for the third quarter compared with the previous quarter was mainly a result of no further loss of hire insurance for Cidade de São Mateus which ended in May. Operating profit for the quarter amounted to USD 19.2 million, a decrease of USD 5.7 million (23%) (USD 24.9 million). Addax Petroleum Exploration Limited has for some time not paid the Company the full contractual rate for the FPSO Sendje Berge. BW Offshore considers the arguments for not paying the full rate unjustified and has started an arbitration process. During third quarter, the Company submitted a claim to the arbitration tribunal of USD 52.6 million. BW Offshore received notice in November 2016 that that the contract with Petronas for the FPSO Berge Helene will not be extended beyond May 2017. During the third quarter, BW Offshore was notified that Statoil will not exercise options for extension of contract beyond June 2017 due to a change in the operating model on the Peregrino field. The Catcher project remains within budget with first oil expected in the second half of 2017. "We are pleased to see positive developments in several of our focus areas", said Carl K. Arnet, the CEO of BW Offshore. "The Catcher project is progressing well, the fleet performance is good, and our cost cutting initiatives are paying off with full effect from 2017. BW Offshore has established a solid runway and is well positioned to pursue value creating opportunities." Please see attachments for the full quarterly report and presentation. BW Offshore will host a presentation of the financial results 09:00 (CET) today at Hotel Continental in Oslo, Norway. The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre. The presentation will be broadcasted via webcast, and will also be available for replay. Please visit www.bwoffshore.com for login-details. For further information, please contact: BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore is the world's second largest contractor with a fleet of 14 FPSOs represented in all major oil regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. Further information is also available on www.bwoffshore.com This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.


News Article | February 28, 2017
Site: globenewswire.com

EBITDA for the fourth quarter was USD 164.5 million, an increase of USD 87.6 million (USD 76.9 million). The increase in EBITDA was mainly a result from the insurance settlement for FPSO Cidade de São Mateus of USD 94.3 million. During the fourth quarter an impairment assessment of the fleet was completed. As a result, BW Offshore recorded an impairment loss of USD 222.6 million. An impairment of USD 135.5 million was recognised due to damages on FPSO Cidade de São Mateus. The remaining impairment was charged to the vessels BW Athena, FPSO Polvo, Berge Helene and Espoir Ivoirien.  Operating loss for the quarter amounted to USD 115.3 million, a decrease of USD 134.5 million (Operating profit USD 19.2 million). BW Offshore has signed interim extension agreements for the Abo FPSO with Nigerian Agip Exploration Ltd. until 31 March 2017. The short-term extensions have been agreed to secure operational continuity while joint work is continuing to conclude the negotiations. Addax Petroleum Exploration Limited has for some time not paid the Company the full contractual rate for Sendje Berge. During the third quarter, the Company submitted a claim to the arbitration tribunal for unpaid contractual rate. The claim amounted to USD 66.7 million by end of the fourth quarter. BW Offshore is currently awaiting the formal outcome of a preliminary hearing carried out by the arbitration tribunal during first quarter of 2017. The Catcher project remains within budget with first oil expected in the second half of 2017. During the fourth quarter, BW Offshore, as 66.67% partner in a coming joint venture with BW Group, signed agreements to acquire a significant share (more than 80%) in the Dussafu field offshore Gabon subject to certain conditions and approval by Gabonese authorities. The project reflects the Company's strategy to participate in alternative field development models to ensure the continued employment of assets. In February 2017, BW Offshore acquired a stake in the proven Kudu gas field offshore Namibia. The Kudu infrastructure project is underpinned by local power demand. "BW Offshore is developing its capability to participate in and be a partner for developing proven hydrocarbon resources offshore by acquiring the stakes in Dussafu and Kudu," said Carl K. Arnet, the CEO of BW Offshore. "With the Catcher project on track for first oil later this year, continued good fleet performance and a more efficient organization, we are positioned for increased market activity." Please see attachments for the full quarterly report and presentation. BW Offshore will host a presentation of the financial results 09:00 (CET) today at Hotel Continental in Oslo, Norway. The presentation will be given by CEO Carl K. Arnet and CFO Knut R. Sæthre. The presentation will be broadcasted via webcast, and will also be available for replay. Please visit www.bwoffshore.com for login-details. For further information, please contact: BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore has a fleet of 14 owned FPSOs and one FSO represented in all major oil & gas regions world-wide. BW Offshore has a long track record on project execution and operations. In more than 30 years of production, BW Offshore has executed 38 FPSO and FSO projects. The company is listed on the Oslo Stock Exchange. This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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