ocsadvisoryboard.org gom … · web viewenergy sector will turn profitable in 2016, says expert....

GULF OF MEXICO REPORTOCS ADVISORY BOARD

Houston, Texas

February 2016

GULF OF MEXICO REPORT | 2

CONTENTS

Industry News.........................................................................................................................3

Exploration News..................................................................................................................21

Recent Discoveries and Development 21

Drilling Activity 24

Rigs and Service 29

Acquisitions, Divestitures, and Ventures 34

Tables...................................................................................................................................40

Status of Gulf of Mexico Well Permits 40

Approved Permits to Drill – Deepwater 41

Status of Gulf of Mexico Plans 56

Approved Exploration Plans 57

Approved Development Operations Coordination Documents 63

OOSA Deepwater Rig Report 66


Industry NewsEnergy Sector Will Turn Profitable In 2016, Says ExpertBy Kalyan Kumar | 01/04/2016 | http://www.ibtimes.com/

Cuban Technicians work in an oil rig of the Great Wall Drilling Company, a subsidiary of China National Petroleum Corp (CNPC), in Varadero, Matanzas province, Cuba, during an organized tour by the state-run Cuba-Petroleo (CUPET), October 21, 2015. Cuba plans to drill exploratory deepwater wells in the Gulf of Mexico by the end of 2016 or beginning of 2017 despite current low oil prices, officials from the state oil monopoly said.

Even as falling oil prices are worrying producing states like Saudi Arabia and Canada besides oil companies, an analyst has some assuaging price outlook for the energy sector in 2016.

According to Craig Columbus of Tower Square Investment Management, the worst-performing energy sector in 2015 will turn profitable in 2016.

“We are now at peak energy pessimism. If you look at commodity bear-market cycles, they typically last 20 years, but most of the price damage is done in the first six years. We've had five consecutive negative commodity-priced years," Columbus told CNBC Power Lunch program.

The energy sector of the S&P 500 fell more than 20 percent in 2015 and had been trailing other 10 sectors. Some of the reasons fuelling the optimism of Columbus are the outlook on US dollar and non-OPEC supply.

WEAKENING SHALE

“Dollar appreciation will still be up, but less, in 2016, and as non-OPEC supply starts to flatten, as that shale production starts to come off, I think it will create opportunity in things like natural gas,” he said.

It may be recalled that dollar gained over 8 percent against many currencies in 2015 and natural gas prices fell more than 35 percent in 2015. However, Columbus is advising investors to be patient.

“I thought once we took out US$38 on oil, we would trend back down to the mid- to low-$30s, so I think you have to be patient. Wait for WTI to pull back to you," the analyst added.

FRACKING JOBS VANISHING

Meanwhile, the explosive job growth in the oil and gas sector of the US economy that followed fracking revolution is on the way out. If fracking put American energy workers back to work after recession, in 2015, the job gains in the energy sector was at a minimum.

This is driven by plummeting oil prices and layoffs of more than a quarter of million workers, said industry consultant Graves & Co. The forecast said energy business will endure more job cuts and bankruptcies will not be a surprise in early 2016.

The plight in oil sector is amply reflected in the decrease of active oil and gas rigs in the US, which fell 61 percent to 698 as of Dec. 31, compared to a year ago, according to Baker Hughes.

LOW PRICES


The record-low oil prices are driving down gasoline prices to below US$2 per gallon (AU$2.78) in a majority of the US gas stations, noted AAA, fuelling record sales of new vehicles and driving up shopping.

The continued global glut of oil created by the surge in US oil output and high production by the OPEC dented the profit margins of companies, making job cuts rampant in all energy companies.

With oil trading below US $40 (AU$55.53) a barrel since 2009, global giants such as Royal Dutch Shell, Chevron and Halliburton are slashing jobs, reports USA Today.

The only exception is the midstream energy sector, where pipeline and energy transport companies operate. They are not as hard hit as the producers, according to Graves & Co.

Analyst: Oil Prices Aren't Low EnoughBy Audrey Leon | 12/09/2015 | http://www.oedigital.com/

It goes without saying that Art Berman with Labryrinth Consulting Services has a belief about oil prices that is likely not shared by many in the oil and gas industry: Berman believes the prices should be lower.“Prices have to fall further,” he told an audience in Houston last week. “We’re below US$40/bbl now, the whole key here is to change investor/producer behavior.”Berman was one of three speakers gathered for a special breakfast on 3 December in advance of AtComedia’s (OE’s parent company) Petroleum Exhibition & Conference of Mexico (PECOM) show on April 5-7 held annually in Villahermosa, Mexico.Berman showed the audience a slide with historic oil price averages, saying that long-term oil prices since 1950 have averaged US$45/bbl in 2015 dollars. Before 1974, oil prices averaged around $23/bbl. Berman says price trends will not increase until the surplus is reduced. Currently, he says, the US crude inventories amount to 122 MMbbl above five-year average and 104 MMbbl above five-year maximum. And demand is weak, but still growing at around 1.6 MMb/d a year, he says.So what caused the oversupply?Berman blamed the oversupply on “cheap money”— caused by interest rates that have been kept artificially low.“Cheap money creates a problem for investors who are looking for a better yield,” he says. And those investors looked to the oil market, and specifically the US shale/tight oil plays, which Berman says were produced at barely break-even prices when oil was high. “Tremendous amount of capital for marginal investments. We created a bubble.”And certainly investor pressure when oil was high led most North American companies with global assets to turn their focus on “easy oil” coming from the US shale plays. Famously, in 2014, Apache Corp. was one of those companies that quickly shed offshore assets to appease investors who wanted to switch directions, urging the company to walk away from capital intensive LNG projects offshore Australia. Apache eventually exited its Australian offshore business altogether back in April.But, Berman says the current downturn is a larger market issue. “The price collapse is nothing more than a devaluation of a market that was too high,” he says. “High price and low demand leads to oversupply.”


Yet, there are bigger implications than just the price of oil. Berman showed the breakfast crowd that high energy costs have resulted in a low economic growth. “High prices kill demand,” he says. Berman’s chart showed rising gross domestic product (GDP) correlates with low or falling oil prices, but flat GDP correlates with a high oil price.“Energy is what links the entire global economy,” Berman says. “Much lower oil prices, are the only reasonable path to return the world economy to high growth and higher demand and have a balanced oil market.”Berman says that oil prices will recover faster than what most forecasts have predicted, but he says, the best hope for price recovery is to let OPEC hold the line and to let the market correct itself. He expects to see the beginnings of a price recovery in 2016.“High costs are not sustainable”Mike Haney, director of Douglas-Westwood’s Houston office, reminded the crowd that higher oil prices came with increased project costs, eating into profits. Haney notes that spending soared 237% in a 13-year period.Haney (pictured, right) told the breakfast crowd there was some potential good news: The downturn has led to some operators and service providers to find new ways to deal with rising costs.“It’s been a painful process,” he says, citing how supermajor Shell managed to reduce costs related to its deepwater Appomattox, in the US Gulf of Mexico, by some 20%. But, Haney says that international oil companies need a new business model because, he says, oil prices would need to be around $105/bbl to meet planned spending. While $55/bbl is considered the breakeven cost for deepwater.Ultimately, Haney shared Douglas-Westwood’s forward view, which is still positive for the offshore industry. “We have downgraded our drilling expectations, but we still expect growth,” he says, stating that the industry will still drill more wells offshore than ever each year, with some 17,000 offshore wells to be drilled by 2020.With regards to subsea, Haney says Douglas-Westwood expects annual subsea tree installation to grow 7% per annum over 2014-2020.However, the floating production systems (FPS) market has been hit considerably by spending cut backs. In 2010-11, FPSO orders averaged 20/yr, but in 2015 there have been only three orders. Long-term, Haney expects 74 FPSO installations from 2015-2019. Yet, he cites that $59 billion of spend required to complete these installs amount to 81% of total FPS sector spend, with most projects ending up about 40% over budget.With those results for the FPS market, the industry needs to come into alignment on both reasonable cost and time expectations for project delivery. IMPLICATIONS FOR MEXICOWhile the opening of Mexico’s oil and gas sector has been historic, many have viewed the timing to be unfortunate as the first bid round (Ronda Uno) followed the crash in oil prices. But, despite the doom and gloom in the industry, the view in Mexico is actually quite positive, according to Oscar Roldan (pictured right), head of the National Data Repository for Mexico’s regulator, Comisión Nacional de Hidrocarburos (CNH).Roldan told the breakfast crowd that, ultimately, Round One (Ronda Uno) was a success for Mexico because “it happened, and it was transparent.” And for a country that is noted for its corruption, that is a true success.


Additionally, the country was able to learn from criticism during the first phase of Round One. This led to Mexico’s Ministry of Finance to realize that the minimum bids it had set were too high, Roldan says. And the Ministry sought to make the terms more attractive by the time phase two of Round One, which featured more established shallow water plays, took place.However, for Roldan, the round has been a success in another way: the low oil prices have helped Mexican startups succeed.“The oil price was the best opportunity to invest in Mexico (for the smaller Mexican companies) because the big guys had to hold off,” Roldan says. “The newly created Mexican companies weren’t selling oil, so they benefited from the low oil price. They didn’t have the same problems of the other established companies.”


Quiet Gulf Hurricane Season End Leaves Oil Drowned in OversupplyBy Ben Sharples | 11/30/2015 | http://rigzone.com/

(Bloomberg) -- Oil bulls can say farewell to another quiet Atlantic hurricane season in the Gulf of Mexico, which ends Monday without a storm-induced price rise to lift crude from its once-in-a-generation slump. Barely an oil worker was evacuated from the Gulf of Mexico and the biggest storm this year -- the strongest hurricane ever in the Western Hemisphere, actually -- tore through the Pacific. The subdued June-November season overlapped with a four-month stretch of oil prices averaging less than $50 a barrel, the longest run since the global financial crisis. As well, the epicenter of U.S. production has moved onshore to shale fields spanning North Dakota and Texas.“Once upon a time we would have been watching very closely to what’s happening in the Gulf of Mexico,” David Lennox, an analyst at Fat Prophets in Sydney, said by phone. “We’ve seen a few disasters from hurricanes, but the shale phenomenon has really taken the sting out of lost Gulf production.”Aided by shale oil developments, U.S. production is at such a rate that oil stockpiles are more than 100 million barrels, or about one-third, above the five-year average, buffering the impact from hurricanes. While prices surged 44 percent in 2008 after Hurricane Ike struck, markets barely blinked four years later after Hurricane Isaac hit and curbed more than 90 percent of crude output in the Gulf of Mexico.The Gulf of Mexico accounted for 16 percent of domestic production in 2014, down from 27 percent in 2003, according to data from the Energy Information Administration. A combination of horizontal drilling and hydraulic fracturing has unlocked supplies from shale formations including the Permian and Eagle Ford basins in Texas and the Bakken in North Dakota.Eleven storms, including two major hurricanes, were recorded during this year’s Atlantic hurricane season, which runs from the start of June to the end of November, according to the U.S. National Hurricane Center. Tropical Storm Bill was the only system to trouble the Gulf of Mexico when it struck in June.

Oil And Gas Bankruptcy Climbs To More Than $16 Billion In 2015By Staff | 12/09/2015 | http://www.oilandgas360.com/

Saying that 2015 has been a difficult year for the oil and gas sector would be an understatement.U.S. crude oil benchmark WTI averaged $91.23 per barrel in 2014, while in 2015 it has, to date, averaged $49.12. That’s a 46% decline, and it shows no signs of recovering soon. WTI today stands at $36.08, 34% lower than the year-ago price of $55.26. Future crude oil prices for December 2024 currently sit at just $54.96.This sharp decline in prices has put the oil and gas industry in a difficult position. Many companies have adapted to the new reality of low oil prices, but that’s easier to accomplish for companies with right-sized balance sheets. Not all have been so fortunate. As of mid-December, 41 oil and gas companies filed for bankruptcy protection under Chapter 11 or Chapter 7 of the U.S. Bankruptcy Code with the court system. Their collective debt, both secured and unsecured, totals more than $16 billion dollars.


Once a company files for Chapter 11 protection with the court system, management continues to run the day-to-day business operations, but all significant business decisions must be approved by a bankruptcy court. Once a company files Chapter 11, one or more committees is appointed to represent the interests of creditors and stockholders in a process of working with the company to develop a plan of reorganizing to get it out of debt.Creditors with secured debt, which is backed by collateral, are paid back first after the company files Chapter 11, with those holding unsecured debt paid next. Common equity stockholders are last in line. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares.Instead of allowing a company to continuing operating, those in Chapter 7 bankruptcy are forced to sell off any un-exempt assets to pay creditors. A trustee is appointed, and they ensure that any assets that are secured are sold and that the proceeds are paid to the specific creditors.OIL AND GAS DEBT FROM BANKRUPTCIES 52% SECUREDDebt in the oil and gas companies that filed for bankruptcy in 2015 was split very nearly down the middle of secured and unsecured debt. The 41 companies had a combined secured debt load of $8.7 billion, with another $8.0 billion in unsecured debt. The total debt of the companies was approximately $16.7 billion.The average total level of debt for the companies that filed for bankruptcy in 2015 was $406.7 million dollars. The average secured debt was $222.8 million, while the average unsecured debt for the companies was $204.7 million.The largest bankruptcy of any single E&P company happened on September 16, 2015. Samson Resources filed for Chapter 11 protection reporting total debt was $4.3 billion. Its bankruptcy made up roughly 30% of the total dollar value of oil and gas bankruptcy filings.Samson entered bankruptcy with a pre-arranged plan to reduce its debt by swapping control to a group of investors who held the company’s $1 billion second-lien loan. Those lenders were also planning to buy $450 million in stock in the reorganized Samson. There has been no final plan announcement as of December 18.Kohlberg Kravis Roberts & Co. LP purchased Samson for $7.2 billion in 2011. Phil Cook, Samson CFO, made known Samson’s thinking, and the industry’s for that matter, during bankruptcy court proceedings:“Oil and gas companies across the United States and around the world are feeling the pressure from the downward spiral in commodity prices, and the fate of many of these companies is yet to be determined. Access to capital is the lifeblood of exploration and production companies. With increasing leverage because of a constant need for capital, together with the recent rising cost of capital in the industry, operating in the current environment has been—and likely will remain—challenging . . . . Some companies will attempt to wait out the current conditions, hoping for a rebound in commodity pricing and increased access to low-cost capital; others will succumb to market pressures and be forced to sell at depressed prices or otherwise permanently halt operations. Other companies will take a proactive approach and work to reshape their operations and balance sheet in a manner that will allow them to weather the macroeconomic environment in all circumstances.”BLACK AUGUSTBankruptcies in the oil and gas business happened every month this year, with seven companies filing for bankruptcy over the course of the first quarter, with WTI prices averaging $48.53. By far the darkest month for the industry this year in terms of bankruptcies, however, was August. With


WTI closing out the month at $49.20, 10 companies filed for bankruptcy as the industry began to show signs of stress under the continued low oil price.THE FEDERAL RESERVE’S RED FLAGThe Shared National Credits (SNC) exam, a Federal Reserve initiative to review and classify large syndicated loans, rated one in seven loans in the oil and gas industry over $20 million as “classified loans” – those with unpaid interest and principal outstanding that are in danger of defaulting.The SNC report said: “Oil and gas commitments to the exploration and production sector and the services sector totaled $276.5 billion, or 7.1%, of the SNC portfolio. Classified commitments – a credit rated as substandard, doubtful, or loss – among oil and gas borrowers totaled $34.2 billion, or 15.0%, of total classified commitments, compared with $6.9 billion, or 3.6%, in 2014.“LOWER SEC PRICE DECK CREATING PRESSUREThe amount of reserves companies have to borrow against have also been coming down as the SEC lowers its price deck for 2016. The dramatic decrease in oil prices since November of last year has pulled the SEC’s price deck down to about $50.13, based off the average of the price for WTI on the first day of every month this year, down 48% from the price deck used in 2015.The lower price deck means companies have fewer reserves to borrow against, which saw many of them come out of their borrowing base redeterminations with less available credit from banks than they had before oil prices crashed. According to information from EnerCom Analytics, oil and gas companies saw their borrowing bases reduced by 11.7% on average during the most recent redetermination.WHAT’S COMING NEXT?EnerCom’s database indicates that as of the week ended December 18, 2015, the average debt-to-EBITDA ratio of E&P companies was 2.6x, with a median of 2.9x. Those with the highest debt-to-EBITDA will like be the first to run into issues down the road.With bank redeterminations lowering the amount available for most energy companies to borrow, and with several companies highly levered, it is likely that more bankruptcies could be in store in 2016. Options still remain for companies that file Chapter 11, however.Samson Resources’ plan to hand equity in the restructured company to junior lenders, including large investment firms Silver Point Capital LP, Cerberus Capital Management LP and Anschutz Investment Co., in exchange for debt forgiveness will help keep the company operating. Those lenders have also agreed to recapitalize the company with as much as $485 million in new loans and to support a rights offering.Other companies could follow in Samson’s footsteps, working to convince debt holders to forgive their indebtedness in exchange for equity, or seek new equity investors to take out the debt as a “get out of bankruptcy” card, according to EnerCom Analytics. A company’s ability to manage its bankruptcy will ultimately come down to their assets, says EnerCom. “The ultimate debt-for-equity truth will be in the rock.”SOME COMPANIES STILL IN A STRONG POSITIONEven as the oil and gas industry goes through a difficult downturn, some companies continue to prosper.In fact, based on their most recent filings, several companies have managed to position themselves to make it through in good shape despite the lower price of oil. Companies that have kept a strong balance sheet and optimized operations and overhead look like they will be able to weather the


storm of the current commodity environment and come out the other side positioned to take a leading role when a recovery begins.Companies like Gulfport Energy Corp. (ticker: GPOR), Occidental Petroleum Corp. (ticker: OXY), PDC Energy (ticker: PDCE), Panhandle Oil and Gas (ticker: PHX) and Synergy Resources (ticker: SYRG) have all managed to maintain strong financial metrics despite today’s lower oil prices.BANKRUPTCY All the companies in that group have lower than the average 2.6x net debt-to-EBITDA ratio, which is the group average from EnerCom’s E&P Weekly, while still maintaining low G&A costs, and using their capital more efficiently than most of their peers.

Fed-Up Creditors Seek To Put US Energy's Zombies Into BankruptcyBy Tom Hals | 12/23/2015 | http://www.reutersl.com/

WILMINGTON, Del (Reuters) - Rising financial stress in the U.S. energy sector has prompted some suppliers and vendors to take unusual legal action to collect unpaid debts: forcing struggling companies with billions of dollars in debt into bankruptcy.Since August, creditors have filed petitions for involuntary bankruptcy against three energy producers with nearly $2 billion in combined debt: Miller Energy Resources Inc (MILLQ.PK), Black Elk Energy Offshore Operations [BLCELB.UL] and Energy & Exploration Partners Inc (ENXP.N).During that period, there have been a total of seven bankruptcies involving energy companies with at least $200 million in debt.Involuntary bankruptcies signal deepening pessimism about the crude market outlook and herald more distress for oil and gas producers if prices stay low.Petitions for involuntary bankruptcy, which seek to impose court oversight on a company that is not paying its debts, are very rare and typically target smaller operations. Over the past decade, they accounted for less than 1 percent of the tens of thousands of business bankruptcies filed each year, according to the Administrative Office of the U.S. Courts. (Graphic:tmsnrt.rs/1T1XJ1e)Involuntary bankruptcies targeting large companies are particularly unusual. Over the past 12 years, creditors have taken such action against only six public companies. Four of those were filed this year. In addition to Black Elk and Miller Energy, creditors have also filed for involuntary bankruptcies against two public companies embroiled in litigation: a casino operator and a property firm."The downside risks are extreme," said Mark Salzberg, a bankruptcy attorney with Squire Patton Boggs in Washington. If a judge dismisses a petition for involuntary bankruptcy, the debtor company can seek its legal costs and punitive damages against the creditors that filed it.But recently creditors have been willing to take that chance in a sign of receding hopes for an oil market rebound.Oil prices have crashed to less than $35 a barrel CLc1 at one point from above $100 a barrel 18 months ago, creating energy industry "zombies" that have been forced to slash costs and idle operations to conserve cash.These producers have slashed thousands of jobs, and postponed paying bills.


"Some producers are getting very, very far out there with what they owe their suppliers," said John Sparacino, a bankruptcy attorney with Vorys, Sater, Seymour and Pease in Houston, who represented driller National Oilwell Varco (NOV.N) in the Miller involuntary filing.Lawyers expect more bankruptcies unless crude prices recovers. "If oil continues below $40 a barrel, we should expect to see even more energy filings, both voluntary and involuntary," said John Penn, a bankruptcy lawyer with Perkins Coie in Dallas.LENDERS VS SUPPLIERSInvoluntary bankruptcy gives vendors some say over how an energy producer's dwindling funds are managed, and vendors can use it to try to stop a company from cutting deals that favor lenders or investors.Such cases also allow creditors to choose the court, and all three of the recent cases have been filed outside the busy bankruptcy court in Wilmington, Delaware. Bankruptcy lawyers in Texas said that may suggest suppliers are worried the court is too eager to approve quick sales of businesses, which tend to favor secured creditors.Baker Hughes Inc (BHI.N) and Schlumberger (SLB.N), major oil field service firms, initiated the cases that put Miller and Energy & Exploration Partners into bankruptcy. The Black Elk case was filed by smaller privately held vendors: Gulf Offshore Logistics and The Grand Ltd of Louisiana, and Ryan Marine Services Inc and Laredo Construction Inc of Texas.In securities filings, Baker Hughes and Schlumberger described more than $300 million of accounts receivables as "doubtful," or unlikely to be paid. If an energy producer becomes financially distressed that kind of trade credit is less likely to be repaid than a loan, which is secured by collateral.Baker Hughes, which has agreed to be acquired by Halliburton Co (HAL.N), declined to comment and Schlumberger did not respond to a request for comment.To seek an involuntary bankruptcy, a creditor must be able to prove it is legitimately owed money and that the company generally is not paying its debts as they come due.Companies can seek to dismiss the involuntary filing, but often they opt to convert the case to a voluntary bankruptcy, which gives them more control over the proceeding.For example, Black Elk Energy converted its case to a voluntary bankruptcy a month after creditors filed the involuntary petition.A lawyer for the creditors, Matthew Okin of Okin & Adams in Houston, said the involuntary bankruptcy prevented the Gulf of Mexico producer from being stripped of all of its value in favor of the company's owners, Platinum Partners. "I think it was absolutely necessary," he said.Platinum Partners did not respond to a request for comment.Black Elk has appointed an independent chief restructuring officer who is investigating the allegations against Platinum Partners, said the company's lawyer Elizabeth Green, of BakerHostetler.Energy & Exploration and Miller Energy did not respond to requests for comment.

Paragon Offshore Stalls Interest PaymentBy Staff | 01/15/2016 | http://www.offshoreenergytoday.com/


Paragon Offshore, a provider of jack-up offshore drilling rigs, has decided to defer an interest payment of approximately $15.4 million due today on its 6.75% senior unsecured notes maturing July 2022.The driller, which recently got delisted from the New York Stock Exchange due to its shares under-performance said that, under the terms of the indenture governing the 2022 Notes, the company has a 30-day grace period after the interest payment date before an event of default occurs.In a statement of Friday, Paragon said it believed it is in the best interests of all stakeholders, including equity holders, to use the grace period to continue to engage in discussions with its secured and unsecured debtholders related to alternatives to improve Paragon’s long-term capital structure.There is no assurance that the discussions with Paragon’s debtholders will result in an agreement before the end of the grace period, the company said.The driller which operates 34 jack-ups and six floaters can elect to make the interest payment at any time during the grace period. However, if Paragon decides not to make the interest payment by the end of the grace period, such failure would result in the rights of the requisite holders of certain of its indebtedness, including the 2022 Notes and revolving credit facility, to accelerate the repayment of the principal amounts due, which acceleration would result in a cross-default under Paragon’s term loan facility, the company explained.Randall D. Stilley, President and Chief Executive Officer of Paragon, said, “Paragon has made the strategic choice to defer this interest payment as constructive dialogue with debtholders continues. We believe we are making progress in achieving our objective to improve the long-term capital structure of the company. Paragon’s substantial cash position at December 31, 2015, more than $750 million, provides us with flexibility as we negotiate.“Furthermore, it allows us to continue to meet all of our obligations to suppliers, employees, and others as we deliver safe, reliable, and effective operations to our customers in the normal course of business.”

BP To Cut About 4000 Jobs By 2017By Melissa Sustaita | 01/12/2016 | http://www.oedigital.com/

UK oil giant BP plans to cut approximately 4000 jobs across its global upstream sector in the next two years to simplify its business, improve efficiency, and reduce costs.BP made the initial announcement this morning (12 January) at a town hall meeting in its Aberdeen office that has echoed across the world as the message was delivered to its global upstream team of 24,000 people.“Overall, at a segment level we are planning an upstream organization with a workforce of below 20,000 people by the end of 2017,” Brett Clanton, BP Houston senior director of media affairs, upstream told OE. “To reach this level we will need to reduce our current workforce of BP employees and agency contractors by at least 4000 additional people.”Job cut numbers for BP’s US upstream business, which includes the Gulf of Mexico, Alaska, and Lower 48 onshore, were not immediately available.However, for BP’s North Sea sector that includes more than 20 fields, four pipeline systems and three onshore oil and gas terminals, expects to see a reduction of about 600 staff and agency contractor roles by the end of 2017, with the majority of the job cuts taking place this year.


“Given the well-documented challenges of operating in this maturing region and in toughening market conditions, we need to take specific steps to ensure our business remains competitive and robust,” Mark Thomas, BP North Sea regional president said in a statement.“This is very disappointing news and a sign of the continued difficulties facing the sector, but we welcome the commitment from BP that the company still sees a long-term future in this area and is continuing to invest heavily in the North Sea,” Aberdeen city council leader Councillor Jenny Laing said on Twitter following the announcement of BP’s job cuts.BP’s North Sea business employees about 3000 people, and there are several major ongoing projects in the region.“We are committed to the North Sea and see a long term future for our business here,” Thomas said. “For example, in 2016, we are continuing to invest around $2 billion of capital into North Sea projects and a further $2 billion in running our North Sea operations. This will sustain many hundreds of supply chain contractor jobs going forward.”Major projects in the North Sea include the multi-billion dollar Clair Ridge project, which is in the second phase of development west of the Shetland Islands. The project will install two new bridge-linked platforms to access an estimated 640 MMbbl of oil and gas, is planned to come on stream in 2017 and will extend production from Clair to 2050.BP and its partners also confirmed plans in 2011 to progress a multi-billion dollar redevelopment of the Schiehallion and Loyal fields, west of Shetland, which will take production to 2035 and possibly beyond.

BOEM announces Mike Celata as Regional Director for the Gulf of Mexico Regional OfficeBy Staff | 11/19/2015 | http://www.boem.gov/

Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper today announced Mike Celata as the Regional Director of the Gulf of Mexico Outer Continental Shelf (OCS) Region. Celata, who starts his position immediately, has been with BOEM and its predecessors since 1988. He served as Acting Regional Director prior to his selection.The Gulf of Mexico Region is responsible for managing more than 4,600 active leases over 25 million acres of land on the OCS.“Mike has many years of service with the agency, working on aspects of the OCS energy program and on regional and national ocean policy initiatives,” said BOEM Director Abigail Ross Hopper. “His collaborative management style, public engagement experience and ability to seek out opportunities that strike a balance between resource development and environmental protection make him a perfect fit for overseeing our program in the Gulf.”After receiving a B.A. in geology and physics from Bowdoin College in 1980, Celata attended the Boston College Master of Science Program where he was a seismological research assistant. He began his career as a geophysicist with Exxon in 1984.For the past 20 years, Celata has held varying positions of increased responsibility with BOEM. He has served as principal authority to enhance the development, acquisition and implementation of geoscience and petroleum engineering software at the agency, providing guidance and expertise for the effective use and management of geological and geophysical (G&G) data. As Chief of Resource Studies from 2005 to 2010, he provided oversight for geological play assessments, petrophysical analysis, and G&G permitting for the Gulf of Mexico and Atlantic OCS. As deputy regional supervisor of Resource Evaluation, he oversaw the implementation of worst case discharge


reviews. Before becoming acting Regional Director, Celata served as Deputy Regional Director in the Gulf of Mexico Region.Celata is a member of the Society of Exploration Geophysicists, where he was a District 3 Representative for the Executive Committee from 2006 to 2009. As Regional Director, he plans to emphasize environmental science, operational efficiency and technology use at BOEM. He also plans to increase stakeholder outreach.

Obama Says Must Change The Way Nation Manages Fossil Fuel ResourcesBy Roberta Rampton | 01/12/2016 | http://www.reuters.com/

WASHINGTON, Jan 12 (Reuters) - President Barack Obama on Tuesday said he would seek changes in the way U.S. oil and coal resources are managed, prompting a flood of reaction from environmental groups pushing him to do more to limit fossil fuel production - and producers anxious about regulatory changes."I'm going to push to change the way we manage our oil and coal resources, so that they better reflect the costs they impose on taxpayers and our planet," Obama said in his State of the Union address.As he enters his final year in office, Obama is looking to secure his legacy on priorities like curbing climate change. The White House did not provide details on Tuesday."That's an issue I would say, stay tuned for the months ahead," White House Communications Director Jen Psaki told reporters during a briefing ahead of the speech."This is not a speech where I would expect a 25-page fact-sheet. This is more talking about his vision and the issues we need to address," Psaki said.The Western Energy Alliance, a group that represents oil and natural gas companies that drill on public lands in the western states, said it suspected the lack of immediate details meant that Obama would look for ways to act without Congress."He'll close out his term by continuing to issue new rules through the federal agencies that kill jobs and economic growth in order to promote his climate change agenda," said Tim Wigley, the group's president, in a statement.Environmental groups noted Obama's pledge comes as his administration works on a new five-year plan for offshore oil and gas leases. They are also calling for changes to rules for production of oil and gas on federal lands."For far too long, the Interior Department has given away our publicly owned fossil fuels to mining and drilling companies without regard for the damage they cause to communities and our climate," said Annie Leonard, executive director of Greenpeace USA, in a statement.

US Offshore Oil, Natural Gas Industry Blasts Proposed Well Control RuleBy Staff | 11/17/2015 | http://www.platts.com/

A proposed rule that would regulate the safety of US offshore oil and natural gas operations could instead cripple a struggling offshore sector, an official with the Independent Petroleum Association of America said Thursday.The rule, which the US Bureau of Safety and Environmental Enforcement is proposing to improve well control in offshore operations, "not only would make it harder to operate" in the offshore


environment, but also would "put standards in place that don't enhance safety," Dan Naatz, IPAA senior vice president of government affairs, said in an interview.Naatz cited an analysis of the rule that said its implementation would result in about 26% fewer wells per year being drilled in the Gulf of Mexico, leading to a capital investment reduction in the Gulf of 10% per year and the loss of 50,000 offshore-related jobs by 2027.The study, funded by the American Petroleum Institute and released in July by Blade Energy Partners and Quest Offshore, also found that the federal government would face a $10 billion reduction in revenues over 10 years as a result of the rule's implementation.BSEE proposed the well control rule in April as part of a suite of new regulations designed to increase offshore safety in response to the fatal Macondo incident in April 2010.That event, which resulted in the deaths of 11 crew members on the Deepwater Horizon rig, the sinking of the rig and an out-of-control well that spewed thousands of barrels of oil into the Gulf of Mexico before it was capped, led to an increased national focus of offshore safety and to the creation of BSEE.A portion of the proposed regulations focuses on tightening requirements for construction and deployment of blowout preventers, including incorporating industry standards in the rule and revising existing regulations. A blowout preventer failure was blamed in part for the Deepwater Horizon tragedy.A 60-day public comment period on the proposed rule ended July 15, but BSEE extended the comment period to 90 days at the request of numerous industry commenters.Naatz said the offshore industry has taken a number of steps to improve its safety record in the five years since the Deepwater Horizon event, but the proposed BSEE well-control rule is so prescriptive that it would hamper the offshore industry's ability to safely innovate and would increase costs so much they would discourage operators from drilling in the offshore play.For example, he said, the agency wants to prescribe the formulation of drilling muds used offshore. Naatz said currently "the industry has some discretion in getting the right mix," and added that the proposed rule would "set up a very strict standard" for muds, that would add thousands of dollars of cost per well with little, or any, increased safety benefit.Naatz's comments echoed those made this week in an op-ed, penned by IPAA President and CEO Barry Russell, on the proposed well-control rule."The proposed well control rule threatens to impose new and unattainable costs on industry -- an industry already under stress from the current low commodity price environment -- while potentially reducing safety offshore," Russell said."The oil and natural gas industry is, at its core, an innovator; without the ability to adapt and implement new technologies, companies will be placing both their production capacity and safety at risk," he added.In an email, Erik Milito, API's director of upstream and industry operations, agreed."Industry standards and smart regulatory oversight are key to our success, but the well control rule, as proposed, does not meet this commitment and could ultimately reverse existing improvements to offshore safety," he said.In an email, BSEE spokesman Gregory Julian responded to industry criticism of the proposed rule.


"The well control rule is the result of over five years of careful, thorough, and collaborative work," he said. "We believe that this rule will drive down risks associated with drilling operations to help ensure the safety of personnel and the protection of the environment."The final draft of the rule is now under internal review by the Department of the Interior and there is no specific timeline for the rule to go into effect, he added.BSEE received comments from more than 170 commenters, including from many industry representatives who filed comments on hundreds of technical issues."The comments were mixed, on one end of the spectrum they felt that the rule was not stringent enough and on the other end they felt that the rule was too restrictive and costly," he said.Regulations Should Not Impede The Industry's Growth And RecoveryBy Randall Luthi | 01/14/2016 | http://www.offshore-mag.com/

In the year ahead, we may witness pivotal change in Washington, D.C. While the current administration pushes out the final planks of its agenda to cement the Obama legacy, candidates for the next administration will spend 2016 trying to convince voters that they are the best choice to lead the nation. For some, 2016 ushers in the end of an era; for others, it brings the dawn of a new one. For the offshore oil and natural gas industry, 2016 may be a year in which survival is considered a victory.Barring a sudden disruption of the world’s oil supply or an unexpected surge in the Asian economy, global oil production levels will likely keep oil prices low for much of 2016. Producers and service companies in the US Gulf of Mexico pared back in 2015; 2016 could bring more of the same. The offshore industry will also see a slew of regulations being pushed through at the end of the Obama administration.President Obama has made it clear that his remaining actions, including his regulatory agenda, will filter through the prism of climate change. Unfortunately, many of the administration’s core supporters see fossil fuels as the primary target in the war to reduce greenhouse gases. The rejection of the Keystone Pipeline; the cancellation of two proposed oil and gas lease sales off the coast of Alaska; and the refusal to grant extensions to companies needing extra time to explore in Arctic waters are clear indicators that the development of oil and gas will not be seen as a priority in 2016. Those demanding that oil and natural gas be left in the ground clearly have the president’s ear, particularly when it concerns new exploration and production.The US Gulf of Mexico has the advantage of having a well-established oil and natural gas industry, one that is vital not only to the economies of the Gulf states, but also supplies a significant source of our nation’s energy. Gulf of Mexico oil and gas production, along with the onshore shale revolution, made possible by fracking, effectively reversed a long trend of increasing oil imports. In fact, imports now make up less than half of the crude oil processed by US refineries. If this trend continues, Middle East oil imports could become a distant, unpleasant memory. However, stricter regulations scheduled to be finalized in 2016 and low commodity prices could converge to drive US producers out of business and reverse our path toward energy sufficiency.In 2015, the National Ocean Industries Association (NOIA) and allied national and state trade groups worked hard to influence and shape the regulations and guidance to be finalized in 2016. We have been paying particular attention to the Well Control Rule (WCR) proposed in 2015 by the Bureau of Safety and Environment Enforcement. In the works for more than four years, the WCR is seen by the administration as a “must complete” item in 2016. Highly technically detailed and broad in scope and reach, the proposal includes a mix of one-size-fits-all and prescriptive provisions that could create unintended consequences that would shift risk rather than decrease it. One analysis indicated that over half of the wells safely drilled in the Gulf of Mexico in the last five years would not have been completed had the rule been in effect. Surely this would not have been the intended


outcome of the rule. Hundreds of industry experts from more than 70 companies have devoted thousands of hours reviewing and discussing the rule and have supplied information to the federal regulators for their consideration. This author has been urging the administration to resist the pressure to meet a political deadline, and instead take the time to further consult with industry in order to complete a realistic, implementable, and enforceable WCR that achieves the stated goal of increasing the safety of offshore operations without shifting risk.Tough economic times have also spurred concern over the adequacy of the current bonding requirements in the Gulf. Bonding assures federal regulators that leaseholders, whether past or present, have the financial ability to complete decommissioning activities once production has ceased. The probability of the US government being forced to foot decommissioning bills is minuscule, and history has borne this out. Nevertheless, regulators are exploring ways to increase bonding requirements -- mostly likely through a Notice to Lessees (NTL) in 2016. Guidance under consideration may make it impossible for some operators to continue business by requiring bonding amounts far in excess of actual decommissioning costs for each leaseholder, and may also be outside the purpose and authority of an NTL.Royalty payments are also under scrutiny and may be revised in 2016. The Office of Natural Resources Revenue (ONRR) is in the midst of discussions regarding the payment of royalties and the correct method of unbundling transportation and production costs associated with production. Early indications are that companies could be fined many times the amount of questioned royalty payments, if the complicated process of unbundling costs is not done to the satisfaction of the regulator. An open dialogue and exchange of information between ONNR and the industry payor is crucial to the development of an unbundling process that is easily understood and enforceable.As the administration nails down the planks of an Obama legacy, NOIA continues its work in Washington, D.C. to help shape and influence offshore regulatory decisions that are reasonable; can be realistically implemented and enforced; and most of all, are survivable.

Manslaughter Charges Filed In Fatal 2012 Black Elk Platform BlastBy The Associated Press | 11/19/2015 | http://www.nolal.com/

A federal grand jury indicted two companies on involuntary manslaughter charges and three people face charges in a deadly 2012 explosion on an oil production platform in the Gulf of Mexico, the Justice Department said Thursday.The explosion and fire started during welding work on a platform owned by Black Elk Energy Offshore Operations LLC, killing three workers and injuring several others. In lawsuits and a federal report, the company and its contractors have been accused of failing to follow proper safety practices and rushing work.Black Elk Energy and one of its contractors, Grand Isle Shipyards Inc., were charged with three counts of involuntary manslaughter, as well as eight charges involving federal safety practices under the Outer Continental Shelf Lands Act and one violation of the Clean Water Act.Another contractor, Wood Group PSN Inc., and three workers were charged with violating OCSLA and the Clean Water Act. The workers charged are Don Moss, 46, of Groves, Texas; Curtis Dantin, 50, of Cut Off, Louisiana; and Christopher Srubar, 40, of Destrehan, Louisiana."Workers lives can depend on their employer's faithfulness to the law, not least of all those working in oil and gas production where safety must be a paramount concern," Assistant Attorney General John C. Cruden for the Justice Department's Environment and Natural Resources Division said in a statement provided to The Associated Press.


The explosion occurred a day after BP agreed to plead guilty to criminal charges over the deadly 2010 rig explosion that killed 11 workers and spawned its massive oil spill in the Gulf.Black Elk Energy's platform was located about 17 miles from Grand Isle, Louisiana, in about 52 feet of water. It had been "shut in" for several weeks and wasn't producing oil at the time of the blast, but workers were on the platform preparing to resume production.Srubar, a Wood Group employee, was supervising production work. Moss, an employee of Compass Engineering & Consultants LLC, was supervising construction work. Dantin was a supervisor employed by construction contractor Grand Isle Shipyard.On the morning of Nov. 16, 2012, a worker ignited oil vapors while welding pipe, triggering a chain reaction that caused oil tanks to explode.The welding work that ultimately triggered the blast was discussed at a safety meeting on that very morning. Harold Seghers Jr., a mechanic who was a member of Srubar's crew, testified last year that Moss showed up at the end of the meeting and told workers "to finish up today because he was ready to go home and drink a beer.""I took it kind of offensively, because it was_he was rushing these people up, and when you rush, mistakes are made," Seghers said during a lawsuit deposition.A 2013 report by federal regulators identified a string of safety lapses that led to the explosion. According to witness statements, a number of workers consistently worried about losing their jobs if they raised safety concerns.Steven Lemoine, a lawyer for Srubar, declined to comment. Attorneys for Moss and Dantin did not immediately return calls for comment.The bodies of two workers, Ellroy Corporal and Jerome Malagapo, were recovered from the water. Avelino Tajonera, who was severely burned, died at a Baton Rouge hospital a week after the explosion.A wrongful death lawsuit filed by Tajonera's family claims Black Elk Energy was plagued by management turmoil and a history of safety violations. It was struggling to execute its strategy of "wringing oil and gas from aging wells" at the time of the explosion, the suit said.Srubar and Dantin are among a group of workers who also sued Black Elk Energy and its contractors over the incident.Black Elk is currently in Chapter 11 bankruptcy proceedings.

BP Faces Mexico Class Action Lawsuit Over 2010 Oil SpillBy Staff | 12/14/2015 | http://www.epmag.com/

A few months after reaching the largest corporate settlement in U.S. history, BP faces a class action lawsuit in Mexico over its deadly 2010 Gulf of Mexico oil spill, which a civic group on Dec. 11 said it had filed against the company.Acciones Colectivas de Sinaloa, a group specializing in consumer and environmental class action claims, lodged the lawsuit against four BP units at a Mexico City court, said the head of its board, David Cristobal Alvarez.


The claim was based on BP’s acknowledgement of the damage caused when the Deepwater Horizon oil rig exploded on April 20, 2010, off the coast of Louisiana, and on studies supporting evidence of environmental damage in Mexico, Alvarez said.Because the Deepwater Horizon accident did not immediately contaminate the Mexican part of the Gulf of Mexico, no claims were made at the time, he added.“But with the maritime currents and the air, the contamination has reached the Gulf of Mexico, it’s started to affect people on the coasts of the states in the Gulf of Mexico,” Alvarez said.The explosion was the worst offshore oil disaster in U.S. history, killed 11 workers and spewed millions of barrels of oil onto the shorelines of several states for nearly three months.BP said in July it will pay up to $18.7 billion in penalties to the U.S. government and five states to meet nearly all claims from the spill, adding to the $43.8 billion it had already set aside for criminal and civil penalties and cleanup costs.Alvarez said the Mexican suit was seeking compensation for the environmental damage caused, if that was recognized.The court would likely need to decide by February or March whether to accept it as a class action suit, he added.BP had no immediate comment, a company spokesman said.

Offshore Areas Among Untapped Energy Sources For USBy Staff | 01/11/2016 | http://www.epmag.com/

Although hidden in the shadows of its headline-grabbing unconventional oil and gas counterpart at times, the U.S. Gulf of Mexico (GoM) is still holding the attention of many oil and gas companies. But the region and other areas offshore the U.S. are still seen as a source of untapped energy potential.Offshore development, particularly off the southeastern coast, was identified by the American Petroleum Institute (API) as an opportunity. It was among areas mentioned for potential growth in terms of jobs and production in the trade association’s Vote 4 Energy report on the status of the U.S. energy sector.“As part of the 87 percent of federally controlled offshore acreage that is off limits to energy exploration, potentially significant geologic formations in the Atlantic Outer Continental Shelf (OCS) and Eastern Gulf of Mexico that could hold billions of barrels of untapped resources have been left out of the U.S. energy revolution that is transforming state economies in other regions,” API said in the report.Citing figures from the U.S. Bureau of Ocean Energy Management, API said the entire GoM OCS could hold 48.4 billion barrels (Bbbl) and 219.5 trillion cubic feet (Tcf) of undiscovered technically recoverable federal oil and gas resources. Other areas out of reach for oil and gas drillers, such as in the Atlantic, Pacific and Alaskan regions, could hold a combined 41.5 Bbbl of oil and 295.2 Tcf of gas.Federal regulators have taken some steps in parts of the Atlantic by allowing seismic companies to collect data that could point to hydrocarbon resources, the report noted.


New Tech Moves Forward In Deepwater ProjectsBy Staff | 11/17/2015 | http://www.chron.com/

Operators are reevaluating the economics of their deepwater portfolios and looking for ways to reduce the cost of developing them.They are also working on new technologies that are moving forward.For example, in July 2014, FMC entered into a joint industry program with four major operators to develop the next generation of standardized high pressure/high temperature subsea production equipment and systems for up to 20,000 psi and 350 degrees F applications.FMC Technologies' high pressure high temperature joint industry program includes Anadarko, BP, ConocoPhillips and Shell."Before this joint development program, industry standards for developing 20,000 psi HPHT equipment did not exist. But by collaborating with four of the world's leading oil and gas operators, FMC Technologies continues pushing technological boundaries to enable the safe and economical development of some of the world's most complex and demanding fields.Equipment being developed by FMC Technologies for HPHT fields includes subsea wellheads, subsea trees, jumpers, and high-integrity pressure protection systems (HIPPS) along with associated controls," said Brad Beitler, vice president, technology at FMC Technologies.Forsys Subsea, the 50/50 joint venture between FMC Technologies and Technip and launched in 2015, is actively working to reduce operator cost and improve returns by allowing the two companies to collaborate with customers during concept design and FEED phases.By rationalizing and simplifying the overall field layout and integrating subsea umbilicals risers and flowlines (SURF) and subsea production and processing systems (SPS) the cost can be dramatically reduce by eliminating redundant subsea hardware and streamlining projects."There are now technology solutions that reduce cost by: reducing equipment size, footprint and complexity, whilst increasing operational flexibility; reducing installation and operation time; and reducing the rate of equipment wear and tear," said Richard Alabaster, vice president, Surface Technologies at FMC Technologies.Staff at FMC also has a number of other new technologies coming off the drawing board. Moreover, on FMC's website are a host of jobs posted for many departments such as accounting, projects, engineering, operations, assembly, technicians, and numerous others.OneSubsea, a Cameron and Schlumberger company, is now offering one of those pieces of equipment capable of operating at higher pressures and higher temperatures.Recently, OneSubsea was awarded a contract to supply subsea processing systems for the Shell Offshore Inc. Stones development in the Gulf of Mexico. This award follows a Technology Qualification Program and OneSubsea will deliver a 15,000-psi subsea pump system to be installed in the Gulf of Mexico at approximately 9,500 ft.The subsea processing systems scope of supply includes a dual pump station with two three-megawatt single-phase pumps and two subsea control modules, a topside power and control module, a barrier-fluid hydraulic power unit with associated spares as well as installation and maintenance tools."Based on OneSubsea's field-proven boosting technology, this is another innovative step forward for our subsea pumping systems," said Jack Moore, chairman and chief executive officer of Cameron, a parent company of OneSubsea. "This boosting technology will be key for enhancing


recovery and increasing production from the ultra-deepwater environment in the lower tertiary region of the Gulf of Mexico."The Wood Group Kenny is seeing emerging technology themes in the offshore industry that include long-distance tiebacks to existing facilities, increased and enhanced oil recovery technologies, subsea processing/pumping and power, high-pressure high-temperature production, the growth of floating LNG, and the evolution of digital communication and analytics."All of the developments will contribute to potentially major technology advancements for our industry over the coming years," said Kieran Kavanaugh, director, technology development at Wood Group Kenny.And this means a vibrant industry that will support career development and employment opportunities.

Purpose-Designed Seismic Solution Provides Enhanced Subsalt ImagingBy Jo Firth | 01/14/2016 | http://www.offshore-mag.com/

With the cost of deepwater wells reaching more than $500 million, and operational risks being potentially higher, obtaining the best possible seismic image of both the overburden and reservoir is essential. To this end, 3D seismic is proving itself to be a leading technology in de-risking offshore subsalt prospects in the Gulf of Mexico.The goal here is to describe the collaboration and innovation that led to new seismic technologies that today are delivering remarkable images and reducing the risks associated with finding and producing oil and gas in the Gulf of Mexico.At the end of the last decade, wide-azimuth (WAZ) acquisition and processing were providing the best available seismic images in the Gulf of Mexico. Yet even with the significant advances that WAZ brought to the industry, geologic structures below more complex salt were still proving too challenging to illuminate and image. Oil and gas companies required better imaging to operate more successfully.In response, CGG worked with clients who agreed that step-changes in seismic could further reduce risks and enable better evaluation of opportunities. The ambition was to develop a new seismic solution designed to specifically address the challenges of the Gulf of Mexico, and in 2009, a team comprising operators and a service company began planning how to achieve this goal.Multiple acquisition configurations were designed, tested, and evaluated for illumination, cost-effectiveness, and subsurface imaging potential. One design went to final proposal before being determined unable to meet all the criteria. This collaborative approach, considering every aspect of the solution from multiple points of view, ultimately led to the full-azimuth, ultra-long offset, broadband seismic solution of StagSeis. Once final modeling by both CGG and client partners validated the design, it was commercialized and acquisition commenced in 2012.The areal spread of StagSeis was larger than any seismic acquisition configuration previously undertaken, forming what was believed to be the largest moving system on earth at the time, roughly equivalent to the area of Manhattan Island. Multiple vessels operated in a staggered formation to deliver full azimuths to 10 km (6 mi) and ultra-long inline offsets to 18 km (11 mi) on four azimuths. BroadSeis broadband technology was also employed to provide bandwidth down to 2.5 Hz.Operating such a large spread safely and efficiently required significant logistical and HSE excellence. For over seven vessel-years of operations, excellent operational and safety records


were maintained. Marine mammal observers and passive acoustic monitoring (PAM) systems were deployed, with soft-start of sources to minimize impact on wildlife. The streamer vessels deployed have DNV-CLEAN designation, the highest environmental standard, and used low-emission Marine Gas Oil.The volume of data generated by StagSeis was massive; each vessel acquired the approximate equivalent of all the books in the Library of Congress every week. In total, this added up to over 1.5 Petabytes, and four copies of this data were received from the vessels during acquisition.This full-azimuth, ultra-long offset, broadband survey contained new data for subsurface imaging, which meant that many new algorithms had to be created to maximize their benefits, while others had to be optimized to handle the data volume.The ultra-long offset RTM 3D angle gathers contained information for residual curvature analysis, which was used to determine subsalt velocities, especially around steeply dipping salt flanks and subsalt three-way closures. The full azimuths provided better sampling of anisotropy, improving velocity models and delivering tomography velocities that more closely matched sonic logs. New migration algorithms incorporated tilted orthorhombic anisotropy, which leveraged the enhanced sampling. The ultra-low frequencies were ideal for full waveform inversion (FWI) which could produce high-resolution images of the overburden.Standard designature methods, using modeled acoustic source signatures, were inadequate, especially at low frequencies. Therefore, a method of deriving accurate 3D far-field signatures from in-field measurements was developed. This enabled precise 3D designature and debubbling at all frequencies. To handle the true 3D nature of the wavefield, including the wide azimuths and large take-off angles of the ghosts, a 3D deghosting method was developed. The enhanced designature, combined with improved ghost removal, delivered sharper wavelets. This, in turn, enabled better 3D SRME multiple suppression.The collaboration undertaken in this project proved critical. Since the final full-azimuth solution used vessels with linear tow that delivered consistent regular fold and azimuth distribution in each processing bin, CGG’s Subsurface Imaging team was able to deliver Fast-Trax results from a priority area three months after commencement of acquisition. Even at this stage, results showed considerable improvements, confirming that the new technique would indeed deliver the quality required.The outcome of the project was the delivery of a multi-year, three-survey multi-client seismic program covering 871 offshore blocks in the GoM over Garden Banks, Keathley Canyon, Walker Ridge, and Green Canyon. Final images of the first and second surveys in the program, IBALT and DEUX, are now available, and those from the third, TROIS, are due later this year.The final images show great improvements in clarity and detail. At the reservoir level, the image shows structure that was not previously visible, with improved continuity of subsalt horizons and better fault definition. In the shallow section, it is also possible to define potential geohazards better.The increased resolution provided by broadband wavelets without sidelobes clarified impedance contrasts and produced single peak or trough events, corresponding to genuine geologic layers. This delivered clear differentiation of the sedimentary packages and increased interpretation confidence.The success of this project shows that a collaborative approach and tailor-made solution is an excellent way to overcome operators’ key challenges. By understanding the specific challenges clients faced, the surveys could be designed to meet their needs. This solution provides enhanced geological definition of the subsurface, from overburden to the previously obscured subsalt


reservoirs. With the high costs and risks of deepwater operations in the Gulf of Mexico, such imaging is key to continuing its exploration.

Select Projects Earn Special RecognitionBy David Paganie | 12/08/2015 | http://www.offshore-mag.com/

The editors of Offshore magazine have selected five projects that exemplify best-in-class among those that recently achieved first production. Offshore’s Top 5 Projects for 2015 were selected on the basis of best use of innovation in production method, application of technology, and resolution of challenges, along with safety, environmental protection, and project execution. Interestingly, two of the projects employ a variation of the “design one, build two” approach, which is rapidly gaining momentum as project developers seek to improve efficiencies.In no particular order, the winners are:JACK/ST. MALOChevron and partners produced first oil late last year from the Jack/St. Malo project in the deepwater Gulf of Mexico. The Jack and St. Malo fields are among the largest in the GoM, and are part of its Lower Tertiary Trend. The fields were developed with subsea completions tied back to a single host, semisubmersible floating production unit (FPU) moored between the fields. The FPU is the largest of its kind in the GoM. It is fitted with capacity to process 170,000 b/d of oil and 42 MMcf/d of natural gas, with the potential for future expansion. The successful completion of the project was the result of the collaboration of hundreds of suppliers and contractors and thousands of workers across nine countries over a ten-year period.LUCIUSAnadarko and partners achieved first oil from Lucius in the Gulf of Mexico in January of this year, about three years from project sanction. The full cycle time from discovery to first production was five years, about 10 months faster than the industry average of spar projects. Moored in 7,100 ft (2,164 m) of water, Lucius is Anadarko’s largest spar to-date. It produces from multiple resource-rich fields spanning Keathley Canyon blocks 874, 875, 918, and 919. The Anadarko-led consortium made several decisions throughout the project development cycle that resulted in sizeable savings in both time and money.DELTA HOUSEThe LLOG-operated Delta House development in the deepwater Gulf of Mexico flowed first oil in the second quarter of this year. Prompted by an expiring lease, the privately held operator initiated platform design even before a discovery was made. And it was based on its “one-size-fits-most” approach, which would enable it to work within a range of reservoir characteristics. The Delta House host semisubmersible floating production platform is moored in about 4,500 ft (1,372 m) of water. It is designed with capacity to handle 100,000 b/d of oil, 240 MMcf/d of gas, and 40,000 b/d of water.ÅSGARDIn mid-September of this year, the world’s first subsea compression station began operating at the Åsgard production complex in the Norwegian Sea. The technology is designed to boost pressure at the Midgard and Mikkel fields that export gas and condensate to the Åsgard B semisubmersible processing platform nearly 40 km (25 mi) away. In the process, Statoil expects to extend the fields’ lives out to 2032, thereby extracting a further 306 MMboe of production.PERLA


Cardón IV SA., a 50/50 joint operating company between Repsol and Eni, started production from the Perla gas field in the Gulf of Venezuela in July of this year. Located in the Cardón IV block 50 km (31 mi) offshore in 60 m (197 ft) water depth, Perla is estimated to hold up to 17 tcf of gas in place, or 3.1 Bboe. The project partners believe Perla represents the largest offshore gas field in Latin America, and also the first gas field to be brought to production offshore Venezuela.


Exploration News

Recent Discoveries and Development

W&T Offshore Announces New Deepwater Gulf of Mexico Discovery at Ewing Banks 954 A-8 WellPress Release | 12/15/2015 | http://www.prnewswire.com/

HOUSTON, Dec. 15, 2015 /PRNewswire/ -- W&T Offshore, Inc. (NYSE: WTI) announced today a significant discovery at the Ewing Banks 954 A-8 exploratory well located in the deepwater Gulf of Mexico. The well, which recently reached total depth, represents the second discovery in a two-well drilling program from the EW 910 platform. This second well follows the earlier discovery at the ST 320 A-5 well in May 2015, which was also drilled from the EW 910 platform. W&T is operator of EW 910 field and owns a 50% working interest in the well.The EW 954 A-8 well penetrated a total of 150 feet of measured depth hydrocarbon pay contained in two sands. Completion operations are currently underway with a planned two-zone completion. Following facility tie-in, first production is expected during the first quarter of 2016. Although no well flow tests have been conducted, based on formation evaluation data, we currently anticipate producing the well from the two zones at a restrained gross rate of approximately 2,300 Boe per day.

Tracy Krohn, W&T Offshore's Chairman and CEO, stated, "Based on our seismic analysis, we had high expectations for the reserve potential of the EW 954 A-8 exploration well, and we are delighted that the well appears to have exceeded our pre-drill estimates. We are especially pleased with the high quality pay sands found in the A-8 well, which should allow for higher reserve recovery. This discovery also helps de-risk several additional opportunities we have identified as part of our future plans to drill and develop the area. With this discovery we have extended our track record of 100% exploration success with the drill bit to almost three years."

ABOUT W&T OFFSHORE

W&T Offshore, Inc. is an independent oil and natural gas producer with operations offshore in the Gulf of Mexico. We have grown through acquisitions, exploration and development and currently hold working interests in approximately 60 offshore fields in federal and state waters (56 producing and four fields capable of producing). W&T currently has under lease approximately 1.0 million gross acres offshore, including approximately 0.6 million gross acres on the Gulf of Mexico Shelf, approximately 0.4 million gross acres in the deepwater. A substantial majority of our daily production is derived from wells we operate offshore. For more information on W&T Offshore, please visit our website at www.wtoffshore.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect our current views with respect to future events, based on what we believe are reasonable assumptions. No assurance can be given, however, that these events will occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially including, among other things, market conditions, oil and gas price volatility, uncertainties inherent in oil and gas production operations and estimating reserves, unexpected future capital expenditures, competition, the success of our risk management activities, governmental regulations, uncertainties and other factors discussed in W&T Offshore's Annual Report on Form 10-K for the year ended


December 31, 2014 and subsequent Form 10-Q reports found at www.sec.gov or at our website at www.wtoffshore.com under the Investor Relations section.Chevron Says Anchor Discovery In Gulf Of Mexico Shows PromiseBy Rhiannon Meyers | 10/29/2015 | http://www.fuelfix.com/

Chevron says its Anchor discovery deep in the Gulf of Mexico could hold large stores of oil, but more testing needs to be done, Chevron and its partners announced Thursday.

Jay Johnson, Chevron’s executive vice president of upstream, said in a statement early results show the Anchor prospect may be a big enough discovery that it could be classified as a hub. Chevron has developed hubs at other massive projects in the Gulf of Mexico, including the Jack/St. Malo fields, which have a large centralized processing facility to handle oil and gas extracted from each.

But before Chevron moves forward with developing the Anchor project, additional tests need to be completed to fully assess the size of the discovery. The company did not say when it planned to drill more exploratory wells.

The Anchor discovery is located about 140 miles off the coast of Louisiana in 5,180 feet of water, in an area known as the Lower Tertiary Wilcox. After a well drilled last year struck 690 feet of net oil pay, the multinational oil corporation and its partners conducted appraisal drilling in June. That well found 694 feet of net oil pay.

In all, Chevron said it has confirmed a hydrocarbon column of at least 1,800 feet in the reservoirs at Anchor.“The appraisal results to date suggest that Anchor could be one of the largest oil accumulations in the Lower Tertiary Wilcox trend,” Brian Reinsborough, CEO of Venari Resources, said in a statement. The Dallas-based private exploration and production company holds a 12.5 percent stake in the project.

Chevron operates the Anchor prospect and holds a 55 percent working interest. The remaining stake is split between Cobalt International Energy, which holds a 20 percent stake and Samson Offshore Anchor, which has a 12.5 percent interest.

High-Value Oil Find For Shell In Gulf Of MexicoBy Daniel J. Graeber | 11/19/2015 | http://www.upi.com/

HOUSTON, Nov. 19 (UPI) -- Shell said it confirmed what it considers a high-value and significant discovery of oil in the deep U.S. waters of the Gulf of Mexico.

"Kaikias is a high-value opportunity in the deep-water Gulf of Mexico, development potential could exceed 100 million barrels of oil equivalent recoverable," the company declared.

U.S. and international reports indicate inland shale oil basins will decline in part because of financial pressure from lower crude oil prices. In its latest monthly market report, the Organization of Petroleum Exporting Countries said production declines from the Lower 48 may be offset by "strong growth" from the Gulf of Mexico, where year-on-year production increased 14.5 percent.

Shell said the Kaikias prospect is near its existing infrastructure in the Gulf of Mexico, suggesting production would be more competitive at a time when companies are forced to spend less on exploration and production.

"In fact, Shell completed the drilling and appraisal of Kaikias ahead of schedule and under budget allowing the company to achieve more than 20 percent in cost savings," the company said.

A dozen new projects expected online in the Gulf of Mexico by next year should boost offshore U.S. production from an estimated 1.4 million bpd in the fourth quarter to more than 1.6 million bpd in fourth quarter 2016.


Shell made a preliminary discovery with an appraisal well in Kaikias in 2015. The field is located in deep waters about 60 miles south of the Louisiana coast.Anadarko Brings Heidelberg OnlineBy Melissa Sustaita | 01/18/2016 | http://www.oedigital.com/

Anadarko Petroleum achieved first oil at Heidelberg in the deepwater Gulf of Mexico last week.Heidelberg is located in Green Canyon 859 and is the company’s second major truss spar development in the GoM in the last two years.

Heidelberg was expected to achieve first oil in April 2016, but achieved the milestone about four months ahead of schedule on 14 January.

The Heidelberg development consists of six production wells, standalone spar, two drill centers, dual looped 8in flowlines, and 16in oil and gas export lines.

Heidelberg is an 80,000 b/d floating production facility, and is Anadarko’s newest spar and a replication of the Lucius spar as part of the company’s “design one, build two” approach, which began production in January 2015 in the Gulf of Mexico.

In October, Anadarko lifted the topsides onto the Heidelberg spar using Heerema Marine Contractor’s largest crane vessel, the Thialf.

Anadarko operates Heidelberg with 31.5% interest. Its partners include Cobalt (9.375%), Eni (12.5%), ExxonMobil (9.375%), Freeport McMoRan (12.5%), Marubeni (12.75%), and Statoil (12%).

Marathon Oil Drills Duster In The Gulf Of MexicoBy Staff | 12/03/2015 | http://www.offshore-mag.com/

HOUSTON – Marathon Oil has reached total depth in the Solomon exploration well in the Gulf of Mexico.The well, drilled to a depth of 34,600 ft (10,546 m) on Walker Ridge block 225, encountered the Lower Tertiary target interval. The well has been P&A’d, and the rig has been released with no further activity planned on the block.

Marathon Oil is the operator with a 58% working interest in the well. Venari holds a 22% working interest and Murphy holds 20%.


Drilling Activity

Noble Energy Announces Early Start-up at Big Bend in the Deepwater Gulf of MexicoPress Release | 11/10/2015 | http://www.globenewswire.com/

Houston, Oct. 28, 2015 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE: NBL) announced today that the Big Bend oil development in the deepwater Gulf of Mexico commenced production on October 26, 2015. The single-well field is ramping as expected and is anticipated to reach a maximum gross production rate of approximately 20 thousand barrels of oil equivalent per day (MBoe/d) over the next couple of weeks. Approximately 90 percent of the volumes being produced are oil. In addition, the Company has continued to accelerate the Dantzler development and now expects first production from the Dantzler field by early November. Big Bend and Dantzler, located in Mississippi Canyon 698 and 782, respectively, are subsea tiebacks to the third-party Thunder Hawk production facility. Combined, the fields are estimated to contribute a maximum net production rate of 20 MBoe/d to Noble Energy.

Gary W. Willingham, Noble Energy’s Executive Vice President of Operations, said, “We continue to build on our strong track record of major project execution with Big Bend coming online less than three years from discovery and within our sanctioned budget. Big Bend is the first of three major projects planned to come online for us in the Gulf of Mexico over the next nine months, contributing significant oil production and cash flow to the business. Short cycle times to first production, strong well deliverability, and low production costs from our Gulf of Mexico projects deliver attractive returns even in today’s environment.”

Noble Energy operates Big Bend with a 54 percent working interest. Other interest owners are W & T Energy VI, LLC (a wholly owned subsidiary of W & T Offshore Inc.) with 20 percent, Red Willow Offshore, LLC with 15.4 percent and Houston Energy Deepwater Ventures V, LLC with 10.6 percent.

The Company is also the operator of Dantzler with a 45 percent working interest. Partners include Ridgewood Energy Corporation (including ILX Holdings II, LLC a portfolio company of Riverstone Holdings, LLC) with 35 percent working interest and W & T Energy VI, LLC with 20 percent.

Noble Energy also announced that the Humpback well offshore the Falkland Islands reached total depth and is being plugged and abandoned. Humpback was drilled in the Fitzroy sub-basin of the Southern Area License and encountered non-commercial quantities of crude oil and natural gas. Full well assessment and the integration of drilling results into the Company’s geologic models is ongoing to determine remaining exploration potential in the Southern Area License. The geologic play including Humpback is only one of a number of prospect play types in the Southern Area License.

The rig which drilled the Humpback well will be released to another operator before returning to Noble Energy to spud the Rhea prospect in late 2015 or early 2016. Located in the Northern Area License offshore the Falkland Islands and approximately 265 miles from Humpback, Rhea is in a proven petroleum basin near existing oil discoveries. Rhea is a Cretaceous-aged prospect with multiple reservoir targets and total estimated gross mean unrisked resources in excess of 250 million barrels of oil.


Murphy Oil Corporation Updates Gulf Of Mexico Drilling ResultsBy Staff | 12/10/2015 | http://www.nasdaq.com/

EL DORADO, Arkansas, December 3, 2015 - Murphy Oil Corporation (NYSE:MUR) today announced the non-operated Solomon exploration well in Walker Ridge Block 225 in the Gulf of Mexico reached the targeted lower tertiary Wilcox at a total depth of approximately 34,600 feet. The well is being plugged and abandoned with no further activity planned. Murphy holds a 20 percent interest in the well which is operated by Marathon.

In addition, Murphy announced the operated Thunder Bird sidetrack well in Mississippi Canyon Block 819 in the Gulf of Mexico reached the targeted Middle Miocene zone at a total depth of approximately 21,900 feet. The well encountered producible hydrocarbons with approximately 75 feet of pay. However, due to current low oil prices and capital allocation review for the 2016 budget, a decision has been made to plug and abandon the well. Murphy operated the Thunder Bird well with an 87.5 percent working interest.

Murphy has increased its exploration expense guidance for the fourth quarter 2015 from $132 million to $235 million, of which $197 million is attributable to dry hole expense. Included in the dry hole expense is approximately $54 million related to the Solomon well and approximately $109 million related to the Thunder Bird operations, including $20 million related to the original well drilled in a prior year.

ABOUT MURPHY OIL CORPORATION

Murphy Oil Corporation is a global independent oil and natural gas exploration and production company, with proved reserves of 756 million barrels of oil equivalent at year-end 2014. The Company's diverse resources base includes offshore production in South East Asia, Canada and Gulf of Mexico; as well as, North American onshore plays in the Eagle Ford Shale and Montney.

Stone: Amethyst Well Comes Online In Januaryby Staff | 12/22/2015 | http://www.offshoreenergytoday.com/

Stone Energy, an independent oil and natural gas exploration and production company, has announced that its Amethyst well, in the U.S. Gulf of Mexico, will come online in January 2016.

According to Stone’s operational update from Monday, the Ensco 8503 deep water drilling rig concluded completion operations and a well test at the Amethyst well, located in Mississippi Canyon block 26, in mid-December 2015. The flowline and umbilical hookup is expected to start upon departure of the rig.

The well is expected to come online on schedule by January 2016, with an expected initial production rate of approximately 40-60 million cubic feet of gas equivalent per day (Mmcfepd) after clean-up. The project is a tie-back to Stone’s Pompano platform, located less than five miles from the discovery, and Stone holds a 100% working interest.

CARDONA WELL

After Amethyst, Stone says it plans to mobilize the Ensco 8503 rig to drill and complete the Cardona #7 development well in Mississippi Canyon block 29. The well is an offset to the existing TB-9 well and will be Stone’s fourth well drilled in the Cardona field development program. Drilling and completion operations are expected to be completed in the first quarter of 2016. Production is projected to start in the second quarter of 2016 and is expected to reach 4,000 to 5,000 barrels of oil equivalent per day (Boepd), the company said.Stone holds a 65% working interest and is the operator of the project.


TIARAS WELL

Stone also reported that, in the fourth quarter of 2015, Petroleos Mexicanos (Pemex) spud the Tiaras-1 exploration well, which is located approximately three miles southwest of Stone’s Lamprey exploration prospect in Alaminos Canyon block 943 in the Gulf of Mexico. The Tiaras-1 well is expected to provide helpful information relative to the Lamprey prospect, Stone explained. If the Tiaris-1 well is successful, the Lamprey well is projected to spud in 2016. The initial Lamprey well is estimated to take two to three months to drill and, if successful, Stone may drill a follow-up appraisal well.

Discussions with potential partners regarding the 100% owned Lamprey and Derbio prospects are ongoing with a reduction in working interest expected before drilling either well. Additionally, Stone continues to pursue rig farm-out opportunities as well as potential projects that could utilize the Ensco 8503 rig and require an operator.

During the first week of November 2015, Stone mobilized and installed an H&P platform drilling rig on its Pompano platform to begin a development drilling program, consisting of one workover project and three to four development wells. The workover will be the first well of the program and is expected to start in the first week of January 2016.

ENI’S VERNACCIA

Elsewhere in the Gulf of Mexico, drilling operations at the deep water Vernaccia exploration prospect, located in Mississippi Canyon block 35, were completed in November 2015. The well was spud in October and drilled to a depth of approximately 17,800 feet, encountered no commercial hydrocarbons and has been plugged and abandoned. Stone holds a 22% working interest, but only a 4% drilling cost in the project, for an estimated net dry hole cost to Stone of approximately $3 million.

Otto Energy enters Gulf of Mexicoby Staff | 12/11/2015 | http://www.offshoreenergytoday.com/

Byron Energy has entered into a binding participation agreement with Otto Energy whereby the latter will pay a part of drilling costs to gain a stake in Byron’s three U.S. Gulf of Mexico projects.

This agreement covers three of Byron’s existing projects, with Otto contributing up to $17.3 million in drilling costs and past expenditure recovery, as part of a staged farm out program, to advance the three projects.

Byron said on Friday that the injection of this funding through a staged program will substantially reduce its need for capital and could ultimately lead to three new wells being drilled by Byron during 2016, offering Otto an accelerated entry into the basin.

Under the agreement, Otto pays a disproportionate share of drilling costs to earn 50% of Byron’s interest in three projects: South Marsh Island 6, South Marsh Island 70/71 and Bivouac Peak, in the Gulf of Mexico.

Byron also said that, after drilling of the program’s initial SM 6 #2 well, Otto will then have a short option period to elect to participate in the SM 71 #1 well; in the event Otto elects to participate in SM 70/71, Otto will reimburse Byron for a portion of past costs on the SM 6 lease and the SM 70/71 leases. After the drilling of SM 71 #1 well, Otto will have earned an option to participate in the drilling of the first well on Bivouac Peak leases.

If all three wells are ultimately drilled, the end result will bring $17.3 million in funding for Byron’s existing projects. Should Otto elect not to participate in further drilling after the drilling of SM 6 #2 well, Otto will not earn the option to participate in the SM 70/71 leases and the agreement will cease.


Otto will also have the option of participating for up to a 50% interest in one new asset acquired by Byron, if any, through to March 2017 by paying 66.67% of related drilling costs or acquisition costs, and proportionate treatment of related expenses.

Byron recently hired the Hercules 264 rig to drill one well at SM 6, followed by an optional well at SM 71 beginning in the March 2016 quarter. SM 6

Under the agreement, Otto will participate in the drilling of the SM 6 #2 well during the March 2016 quarter. Otto will pay 66.67% of the estimated dry hole costs to earn a 50% working interest in the SM 6 lease. Otto’s promoted exposure will be capped at $5.3 million of the estimated $8 million dry hole cost, after which both companies will bear their own proportionate interests. At earning depth, Otto will have the right to elect to participate in the drilling of the SM 71 #1 well. Upon a positive election at SM 71, Otto will reimburse Byron for past costs at SM 6 of $2.1 million as well as past costs at SM 70/71 of $0.9 million.

SM 71

At SM 71, Otto will pay 66.67% of the expected $4.5 million dry hole costs to earn a 50% working interest in the SM 71 and SM 70 leases. Otto’s promoted drilling exposure will be capped at $3 million, after which both companies will bear their own proportionate interests. At earning depth, Otto can elect to participate in Byron’s Bivouac Peak Project.

BIVOUAC PEAK

Should Otto decide to participate in Byron’s recently acquired Bivouac Peak leases, Otto will pay 66.67% of Byron’s share of the drilling costs to earn a 45% share of the Bivouac Peak leases. Otto’s drilling contribution will be capped at $6 million based on a dry hole estimate of $10 million. Otto will also reimburse Byron for 50% of Byron’s past costs in the project at the time of election.

In total, Otto will potentially contribute $14.3 million in drilling costs and approximately $3 million in past cost reimbursements, if all three wells are drilled and Otto elects to participate in all three projects.

Byron Energy CEO, Maynard Smith, said: “We are pleased to welcome Otto as a co-venturer, initially at SM 6 and potentially at SM 70/71 and Bivouac Peak.”

Smith also added: “The Otto-Byron transaction is well timed to take advantage of the substantially lower drilling and service costs in the current environment.”

Byron expects to spud the SM 6 #2 well during the first quarter of 2016. That well will be followed immediately by the SM 71 #1 well assuming Otto elects to participate in the drilling of the SM 71 #1 well. Byron said it has initiated permitting on both wells and expects approvals by mid-January 2016.

PERMITS

Byron added it has also filed a Development Operations Coordination Document (DOCD) with BOEM which will allow it to modify the existing SM 6 caisson, lay a flow line to the SM 10 “A” platform where hydrocarbons will be separated, and transported to market for sale.

Along with that DOCD application, Byron has requested a Suspension of Production from BSEE for the SM 6 lease which will extend the lease term to give Byron time to design, install and hook up new facilities. Byron concluded by saying that a key component of this process is a Production Handling Agreement between Byron and the offset operator at SM 10, Fieldwood Energy LLC.


Drilling Picks Up Across The Perdido FoldbeltBy Anne Leonard & Tom Liskey | 01/13/2016 | http://www.offshore-mag.com/

One of the world’s most closely watched exploration wells was spudded on Nov. 13, 2015, about 135 mi (218 km) due east of Brownsville, Texas. The Tiaras-1 new field wildcat is being drilled by Seadrill’s West Pegasus semisubmersible, which is one of three rigs working in more than 8,000 ft (2,400 m) of water in a 20-mi (28-km) radius on the Perdido Foldbelt in the northwestern Gulf of Mexico.

What makes this well so noteworthy is that it is in Mexican waters, within 10 mi (15 km) of Shell’s Perdido field complex, where the other two deepwater rigs are employed. It is estimated that more than 30 Bbbl of oil lie on the Mexican portion of the Perdido Foldbelt, a premise that is bolstered by the fact that PEMEX has already made four Lower Tertiary discoveries.

Moreover, large swaths of these vastly underexplored waters are about to be made available to international explorers for the first time.

With interest growing in the expected announcement of the deepwater phase of Mexico’s first bid round, there has been an uptick in activity on the US side. In addition to the ongoing development drilling by the Noble Don Taylor drillship and Atwood Condor semisubmersible, exploration is planned by Shell to the northeast of the field complex and by Stone Energy to the southwest. Stone in particular is closely watching the progress of Tiaras-1, as the well is perhaps on the same structure as the company’s Lamprey prospect.

So, PEMEX’s Tiaras-1 new field wildcat may confirm cross-border reservoirs and therefore be the first deepwater well to fall under the jurisdiction of the 2013 Outer Continental Shelf Transboundary Hydrocarbon Agreements Authorization Act. In early December, it was drilling below 10,590 ft (3,228 m) in 8,179 ft (2,493 m) of water; the proposed total depth is about 15,850 ft (4,830 m), targeting the Lower Tertiary. Potential resources are 146 MMboe.

The West Pegasus is moored just 2 mi (3 km) south of the international boundary and 4 mi (6 km) south of the first of two locations mapped by Stone in its Lamprey exploration plan. Stone says the Lower Tertiary Frio and Wilcox appear to thicken at Lamprey, which has potential resources of 104-547 MMboe.

Stone calls Lamprey a potential hub adjacent to Shell’s Great White field which, along with Tobago and Silvertip, is part of the Perdido field complex. Since coming onstream in 2010, Perdido has produced about 100 MMboe; estimated recoverable reserves are 500 MMboe. On Nov. 10, 2015, the Noble Jim Day spudded a Great White development well on Alaminos Canyon block 857. Further to the northeast on block 859, the Atwood Condor is working in the Tobago field. In addition, Shell plans to explore its Whale prospect, which is only 4 mi northeast of the Tobago host. The exploration plan proposes three locations in Alaminos Canyon block 772, and a well on block 815 where Shell made the Silvertip discovery in 2004. Shell says Whale is updip of Tobago and Silvertip, both of which are producing.

Because much of the Perdido Foldbelt lies south of the border, successful exploration of the Lower Tertiary in the Gulf of Mexico has expanded farther to the north and east beyond Perdido. However, it was the salt-cored anticlines trending southwest to northeast across the Mexico-US marine boundary that first caught the attention of explorers, leading to the discovery of Great White in 2002. Great White is the first Lower Tertiary field in the Gulf to produce, and the Perdido field complex remains one of just five producing fields on the Paleogene Trend.

Phase 4 of Mexico’s Round 1 will offer 10-plus blocks in Perdido. The kick off has been delayed as regulators have been working on the draft contract to ensure maximum participation.


PEMEX scored its first Perdido Foldbelt discovery in 2012 at the Trion-1 wildcat, which was drilled to a total depth of 20,075 ft (6,119 m) in 8,307 ft (2,532 m) of water, resulting in a light oil (34° API) discovery. Trion potentially holds between 350 and 500 MMboe. It was quickly followed by Supremus-1 (2012), Maximino-1 (2013), and Exploratus-1 (2013-2014).

PEMEX is in negotiations with potential partners for both Trion and Exploratus. Company officials have said they believe that Maximino will be the next asset up for partnership. Trion, Exploratus, and Maximino are thought to collectively hold up to 1 Bboe.

In addition to the West Pegasus at Tiaras, PEMEX has three other semisubmersibles under contract on the Perdido Foldbelt: the Centenario at Melanocetus-1, the Bicentenario at Astra-1, and La Muralla IV at Exploratus-1DL.

With six deepwater rigs at work and an upcoming bid round, the Perdido Foldbelt is truly one of the world’s hot spots. Without a doubt, Mexico hopes that the deepwater phase of Round 1 will lure supermajors and national oil companies to the portion within its border.

Rigs and Service

US Offshore Rig Count Improves To 27By Offshore Staff | 01/12/2016 | http://www.offshore-mag.com/

HOUSTON – The US offshore rig count has improved over the previous week to 27 active rigs, according to the Baker Hughes Weekly Rig Count of Jan. 8, 2016.

This number was a slight improvement over the report issued on Dec. 23, 2015, which said that there were 24 active rigs in US offshore areas.

Total rigs engaged in exploration and production in the US totaled 664 for the week ended Jan. 8, down by 34 from the previous week’s rig count. The current nationwide rig count is still less than half of the prior-year level of 1,750.

The natural gas rig count was down by 14 from the past week to 148. This compares to 329 active natural gas rigs a year ago.

The oil rig count fell by 20 from the previous week to 516. This number not only lies on the lower end of the five-year range but is also well below the previous year’s rig count of 1,421.

Walter Oil & Gas Installs Platform In GoM’s Coelacanth FieldBy Velda Addison | 12/01/2015 | http://www.epmag.com/

Towering about as high as the Empire State Building, the recent installation of the 400-m (1,312-ft) fixed-legged platform marked a milestone for Walter Oil & Gas Corp.’s Coelacanth project in the U.S. Gulf of Mexico (GoM) as it pushes closer to first oil in the deep Flex Trend.

Plans are for oil to flow from the field, which spans four blocks total in the Ewing Bank area, in mid-2016.


It took crews more than 2 million man hours to complete the platform, which was built at Gulf Marine Fabricators yard in Ingleside, Texas, and 2.5 days to load the 60-million pound jacket onto the launch barge for its Oct. 15 sail-away.

Located at a water depth of about 1,186 ft, the company said the platform is the third largest fixed platform in the GoM trailing Shell’s Bullwinkle and BP’s Pompano, which stand at water depths of 1,352 ft and 1,294 ft, respectively.

“At the base, the main legs form the corners of a 330 x 330 sq ft, enough room for two football fields side-by-side,” the company said, adding the platform will be held in place by 14 piles.

The feat would come after overcoming several challenges—aboveground and beneath—in this part of the GoM where salt structures and deepwater shales can limit seismic imaging.

“Shales in this region were deposited and buried quickly so the rock never fully compacted,” Walter Oil & Gas said in a company report detailing the project. “Water trapped in the rock creates geopressure that requires extra care while drilling to overcome potential hazards.”

However, new and improved seismic data acquired from TGS led Walter Oil & Gas to deeper hydrocarbon indicators (HCI) in 2008. But the Deepwater Horizon tragedy and the federal mandate to halt drilling brought work on its exploratory well—along with others in the GoM—to a standstill in 2010. The company picked up drilling nearly two years later, striking oil in several zones, as it faced another challenge—securing leases that contained reservoirs associated with the discovery and forming joint ventures to bring the development to fruition.

“In short, to assemble the acreage for Coelacanth and secure joint venture partners, 17,600 acres were acquired by Walter via multiple federal offshore lease sales and acreage purchase and co-development arrangements,” according to the report. “To establish the joint venture, Walter negotiated and entered into over a dozen commercial agreements with seven different offshore companies, including majors, large independents, and small independents.”

The process took several years to complete. Today partners in the project include Ridgewood Energy Corp., Gordy Oil Co. and Houston Energy Deepwater Ventures.

“The EW 834 Coelacanth project, despite significant obstacles, is a geologic, commercial and engineering success story which will have a meaningful impact for years to come,” Jim Looke, Walter’s vice president of drilling and production operations, said in the report.

Now that installation of the platform—designed to serve as a production host for other future discoveries nearby—is complete future plans include setting the rig on the platform this winter and completing the first well.

Walter will re-enter and complete the 2010 discovery well and drill several more wells into the main Miocene 20,000-foot sand oil reservoir. At this time, the company could not say how exactly many wells would be drilled in the next two years.

“Other oil zones in the existing well, while relatively thin, tie to robust seismic amplitude anomalies nearby. These HCIs, interpreted to be large oil reservoirs, will be tested by development wells that also target the proven oil zone,” the report said. “Another development well will capture a proven oil zone at 9,000 ft, which was discovered, but not produced, by an older well on the block. There are several other shallow HCIs believed to be oil reservoirs that can be accessed from the platform.”

The Coelacanth platform is capable of producing up to 30,000 barrels of oil per day and 60 million cubic feet of gas per day.


LLOG Exploration Announces Delta House Facility Exceeds Nameplate Oil CapacityPress Release | 01/04/2016 | http://www.businesswire.com/

COVINGTON, La.--(BUSINESS WIRE)--LLOG Exploration Company, L.L.C. (“LLOG”), along with its Gulf of Mexico joint venture partner, Blackstone Energy Partners, and its co-owners, the entities managed by Ridgewood Energy (which includes Riverstone designated ILX affiliates), Red Willow Offshore, LLC, Calypso Exploration, LLC, Deep Gulf Energy II, LLC, Houston Energy, and American Midstream Partners, LP (NYSE: AMID) announced that the LLOG operated Delta House floating production system (FPS) at Mississippi Canyon 254 achieved its nameplate oil capacity of 80,000 barrels of oil per day. LLOG recently brought the ninth well on production several weeks ahead of schedule and two additional wells will be brought on production to the FPS in 2016. The FPS nameplate capacity includes 50% redundancy of key rotating equipment. The FPS is designed for peaking capacity of 100,000 barrels of oil per day and 240 million cubic feet of gas per day with no redundancy of key rotating equipment.

“The startup and ramp up of the Delta House FPS has gone exceptionally well.”

The Delta House FPS was built, installed, and put on line in three years. First production was achieved in April of 2015. The Delta House project was recently named one of the Top 5 Projects in the world according to Offshore Magazine. “The startup and ramp up of the Delta House FPS has gone exceptionally well.” says Scott Gutterman, President and CEO of LLOG Exploration. “The FPS uptime has averaged in excess of 99% since production was initiated which we believe is best in class for similarly sized facilities.”

LLOG is the largest privately owned oil producer in the U.S. and one of the largest private producers in the Gulf of Mexico. LLOG’s corporate headquarters is in Covington, Louisiana and LLOG has an office in Houston, Texas.

Noble Plans to Stack Rig; Lay Off 120-130 EmployeesBy Valerie Jones | 11/30/2015 | http://www.rigzone.com/

Noble Drilling will lay off 120 to 130 offshore workers as the company stacks its Noble Jim Day (UDW semisub) rig.

In a letter to the Texas Workforce Commission, Noble said that all affected employees work on the Noble Jim Day, a rig located in international waters in the Gulf of Mexico that reports directly to Noble’s offices in Sugar Land, Texas. The company is still finalizing its plans, according to the letter.

“Noble continues to actively market the rig, but has taken this prudent step to manage a gap in contract coverage,” John Breed, director, investor relations and corporate communication, Noble Drilling, said in an email to Rigzone.

The layoffs will occur over a period of 14 days and will begin Jan. 26, 2016.

“Noble plans to maintain some employees on the Noble Jim Day at the stacking location,” the letter states. “Although Noble may recall some employees to work should it secure a new contract for the Noble Jim Day, it expects the layoffs to be permanent.”

Turritella FPSO Heads For The Gulf Of MexicoBy Offshore Staff | 11/16/2015 | http://www.offshore-mag.com/


SINGAPORE – Shell is one step closer to achieving first oil at its Stones development from the world’s deepest floating production facility. The Turritella FPSO recently set sail from Singapore, where it was built at the Keppel yard, and is on its way to its new home in the deepwater Gulf of Mexico.

Once it reaches the Gulf of Mexico, this facility will connect to subsea infrastructure located in the Lower Tertiary play, beneath 9,500 ft (2,896 m) of water, which Shell says breaks the existing water depth record for an oil and gas production facility.

Stones is located about 200 mi (320 km) southwest of New Orleans in the Walker Ridge area.

“The strength of Shell in deepwater is rooted in our ability to combine innovation with our strong track record for delivery,” said Wael Sawan, executive vice president of Deep Water, Shell Upstream Americas. “Achieving first oil at Stones - in this new Gulf of Mexico frontier - involves taking a measured and strategic approach, growing as we learn more about the reservoir.”

The project has nearly 16 million hours of work safely completed during construction. Shell said a “safety first” mindset and a desire to “build something special with no harm to people” is what led to the safety success during the construction of the Turritella.

Shell selected this vessel design to optimize field development and produce this ultra-deepwater discovery in a safe and responsible manner. Using this floating vessel allows Shell to address the relative lack of infrastructure, seabed complexity, and unique reservoir properties. Aside from being the world’s deepest facility, it also features an industry-first application of combining a disconnectable buoy with steel lazy wave risers – steel pipe with in-line buoyancy that absorbs the vessel’s motion and boosts riser performance at extreme depths.

SBM Offshore was contracted to build the vessel, which is a converted Suezmax FPSO. It will have a processing facility capacity of 60,000 b/d of oil and 15 MMcf/d of gas treatment and export. No water injection facilities are specified. SBM said that the Suezmax hull will be able to store 800,000 bbl of oil.

Technip Awarded A Subsea Contract For The Odd Job Deepwater Field In The Gulf Of MexicoPress Release | 01/07/2016 | http://www.businesswire.com/

Technip has been awarded a lump sum contract by Deep Gulf Energy II, LLC for the development of the Odd Job field. This ultra deepwater field is located in Mississippi Canyon, offshore New Orleans, in the Gulf of Mexico, in water depths ranging from 1,330 to 1,825 meters.

The contract consists of:

Project management and engineering services, Fabrication and installation of approximately 23 kilometers of pipe-in-pipe flowline, Fabrication and installation of approximately 2 kilometers of Steel Catenary Riser (SCR), Design, fabrication and installation of in-line sled, flowline end termination, Fabrication of jumper, Pre-commissioning for the flowline and SCR system.

This new award highlights our unique vertical integration in the subsea business environment, covering all aspects of this field development from engineering to design, manufacturing and installation.

Technip's operating center in Houston, Texas, USA, will manage the overall project. The SCR and flowline system will be fabricated at the Group’s spoolbase in Mobile, Alabama, USA. The offshore installation is expected to be


performed in the summer of 2016 by Technip’s vessel the Deep Blue, one of the world's largest ultra-deepwater pipelay and subsea construction vessel.

Technip is a world leader in project management, engineering and construction for the energy industry.From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 36,000 people are constantly offering the best solutions and most innovative technologies to meet the world’s energy challenges.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.

Technip shares are listed on the Euronext Paris exchange and traded in the USA on the OTCQX marketplace (OTCQX: TKPPY) as American Depositary Receipts.

New ‘Failsafe’ BOP Design IntroducedBy Staff | 12/11/2015 | http://www.offshoreenergytoday.com/

BOP Technologies, a Houston-based oil and gas blowout preventer (BOP) and well intervention systems manufacturer, has announced a new design for BOPs.

The company described its new design as “failsafe” and said it would allow the BOP to work even if the drilling rig loses power or hydraulic pressure.

According to BOP Technologies, its concept design places a backup system in the body of the BOP Shear Ram mechanism itself. If power or hydraulic pressure is lost, there would still be a way to safely cut and close-off the well, protecting the crew and preventing oil from being released into the environment, said the company.

Last month, BOP Technologies publicly announced the release of CIRBOP, with a patented design for a new type of BOP for which the company said can deliver 5 million lbs. of shear force to the rams.

Khoa Pham, BOP Technologies CEO, said: “Industry has been working hard ever since the Deepwater Horizon incident to prevent that tragedy from occurring again. The problem is that there are limitations to the existing technology that the industry has not been able to solve. The inventor of our BOP shear rams, Jay Read, stepped outside the box and came up with a completely new approach.”

Weatherford Lands 1180-Ton Casing StringBy Staff | 12/17/2015 | http://www.oedigital.com/

Weatherford achieved a new world record by landing an 1180-ton (2,360,700-lb) casing string at a total depth of 26,805 ft (8170 m). The job was performed on a deepwater rig in the Gulf of Mexico this fall.

The operator of a deepwater rig in the Green Canyon required installation of a heavy, 14in, 112.6 lb/ft casing string. The total weight of the casing and landing string needed to reach total depth was 1180 tons. The operator contracted with Weatherford to install the landing-string slips 1250 (LSS 1250), which acts as a spider to safely and efficiently grip tubulars and has a maximum load capacity of 1250-ton (2,500,000 lb).

Weatherford deployed the LSS 1250 after providing an engineering analysis to verify that the pipe could reach total depth without damaging the tubulars from excess stress. The team then ran the string to total depth with no issues. Without the increased load capacity provided by the LSS 1250, the operator would have needed to drill a second hole section and run two separate casing strings at an approximate cost of US$15 million.


Acquisitions, Divestitures, and Ventures

Freeport-McMoRan To Launch Auction For Oil And Gas Assets-SourcesBy Mike Stone | 12/23/2015 | http://mobile.reuters.com/

Dec 23 (Reuters) - Freeport-McMoRan Inc, the U.S. miner that was targeted by activist investor Carl Icahn earlier this year, is planning to run an auction process for its oil and gas assets in early 2016, according to people familiar with the matter.

The process would be the company's first concrete move to end its ill-fated foray into oil and gas after it said in October it would explore strategic options for the assets, including a spinoff, joint venture or public offering.

Phoenix, Arizona-based Freeport-McMoRan's board has retained investment bank Lazard Ltd to advise on possible sale of the company's entire oil and gas interests, which could be worth more than $3 billion, the people said this week.

The sale process may not result in any deal, the people said. It will, however, help Freeport-McMoRan with valuing the assets, so it can decide which strategic alternative offers the most value, the people added.

The sources asked not to be identified because the deliberations are confidential. Freeport-McMoRan and Lazard declined to comment.

Freeport's big bet on oil and gas came in 2013 with the acquisitions of Plains Exploration and McMoRan Exploration for $19 billion, including debt. The moves were big contributors to the company's heavy debt load. Since these acquisitions, oil prices have roughly halved.

Freeport-McMoRan's energy division includes assets in the Deepwater Gulf of Mexico, onshore and offshore assets in California and in the Haynesville natural gas shale formation, along with other natural gas assets in Louisiana.

Shedding the oil and gas business would leave Freeport-McMoRan with mainly copper and gold mining assets. Roughly 60 percent of Freeport's $21 billion of revenue in 2014 came from copper, with about 20 percent from oil.

The company's operations include the massive Grasberg copper and gold mine in Indonesia, the Cerro Verde copper mine in Peru and seven copper mines in North America.

Freeport-McMoRan agreed in October to add two new directors to its board as part of a deal with Icahn, who had taken aim at the company's spending, capital structure and executive compensation.

Earlier this month, Freeport-McMoRan suspended its annual dividend and made deeper cuts in capital spending and copper production to deal with a downturn in commodities prices that has entered its fifth year. (Reporting by Mike Stone in New York; Editing by David Gregorio)


Halliburton, Baker Hughes Merger DelayedBy Staff | 12/16/2015 | http://offshoreenergytoday.com/

Halliburton’s proposed acquisition of Baker Hughes, valued at $35 billion, has hit a stumbling block as the U.S. Department of Justice is not convinced the companies have done enough to address the DOJ’s Antitrust Division’s competitive concerns.

According to a joint statement issued by the two companies, they expect that their timing agreement with the Antitrust Division of the U.S. Department of Justice (DOJ) will expire without reaching a settlement or the DOJ initiating litigation at this time to block their pending transaction.

The two oilfield services providers said: “The DOJ has informed the companies that it does not believe that the remedies offered to date are sufficient to address the DOJ’s concerns, but acknowledged that they would assess further proposals and look forward to continued cooperation from the parties in their continuing investigation.”

In a statement issued on Tuesday, the companies said that over the last year, they’ve responded to “numerous DOJ requests for information, producing millions of pages of documents, providing numerous written submissions in response to specific questions, and participating in multiple meetings with the DOJ.”

The companies also pointed to the fact that, early in the process, Halliburton proposed to the DOJ a “substantial divestiture package that would facilitate the entry of new competition in markets in which products and services are being divested.”

“Both companies strongly believe that the divestiture package, which recently was significantly enhanced to address the DOJ’s specific competitive concerns, is more than sufficient to address concerns raised by competition authorities, including the DOJ,” Halliburton and Baker Hughes said in a joint statement.

This latest development has forced Halliburton and Baker Hughes to delay the closing of the transaction at “no later than April 30.”

The companies said they intend to continue their discussions with the DOJ, and remain focused on completing the transaction as early as possible in 2016, but said there is no guarantee that an agreement with the DOJ or other competition authorities will be reached.

AWAITING RESPONSE FROM AUSTRALIA

Halliburton’s acquisition of Baker Hughes has yet to be approved by the Australian Competition and Consumer Commission (ACCC) as well. The commission in October delayed its final decision on the acquisition until December due to competition concerns. The ACCC us expected to make the final decision on December 17, 2015.

The proposed acquisition is also being considered by competition authorities in a number of jurisdictions, including the US, the European Union, India and China. The proposed merger has received regulatory clearances in Canada, Colombia, Ecuador, Kazakhstan, South Africa, and Turkey.

To remind, Halliburton in November 2014 said it had reached definitive agreement with Baker Hughes under which Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction.


Cameron Shareholders All In For Schlumberger MergerBy Staff | 12/18/2015 | http://www.offshoreenergytoday.com/

U.S. oilfield systems provider Cameron has informed that its stockholders have voted in favor of the proposed merger deal with Schlumberger, the world’s largest oilfield services company.

Cameron said that at a special meeting Thursday, the stockholders “overwhelmingly” voted to adopt the previously announced merger agreement providing for the acquisition of Cameron by a wholly owned subsidiary of Schlumberger Limited.

Upon completion of the transaction, each share of Cameron common stock will convert into the right to receive 0.716 shares of common stock of Schlumberger Limited and a cash payment of $14.44.

“We are pleased that our stockholders have clearly recognized and endorsed the significant value generated by this transaction,” said Scott Rowe, President and Chief Executive Officer of Cameron. “The combination of the two organizations will create a premier oilfield equipment and services company uniquely positioned to deliver superior value to the industry.”

The proposed agreement has been cleared by the U.S. Department of Justice, which last month granted early termination of the waiting period required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the proposed merger.

The transaction remains subject to regulatory approvals and customary closing conditions, and the companies expect the acquisition will close in the first quarter of 2016.

Marathon Oil Sheds Gulf Of Mexico AssetsBy Staff | 11/09/2015 | http://www.offshoreenergytoday.com/

Marathon Oil Corporation, a global exploration and production company based in Houston, announced on Monday it has signed an agreement for the sale of a majority of its assets in the U.S. Gulf of Mexico.

Without revealing the name of the buyer, the company said it was selling its operated producing properties in the greater Ewing Bank area and non-operated producing interests in the Petronius and Neptune fields in the Gulf of Mexico for $205 million.

Marathon says the buyer will assume all future abandonment obligations for the acquired assets. These assets represent a majority of the company’s operated and non-operated producing properties in the Gulf of Mexico. The effective date of the transaction is Jan. 1, 2015 and closing is expected before year end.

Marathon Oil notes it will retain its interests in certain other producing assets and acreage in the Gulf of Mexico, as well as its interests in the Gunflint development and Shenandoah discovery.

ConocoPhillips To Exit Deep-Water Exploration By 2017By Collin Eaton | 10/29/2015 | http://www.fuelfix.com/

HOUSTON — ConocoPhillips officials say the company will stop searching for oil and gas in deep-water fields by 2017, and it plans to sell the offshore leases it doesn’t intend to drill.


Its exit from deep-water exploration would free up roughly $800 million in capital, the amount it has budgeted for exploration next year. Plus, it will save on costs on that side of the business, Matt Fox, ConocoPhillips’ executive vice president of exploration and production, told investors on Thursday.

“It’s a strategic decision to exit deep-water exploration,” Fox said.

It is part of the company’s plan to sell $1 billion to $2 billion assets a year as it braces for lower oil prices. The Houston company has about 2.2 million acres and three recent discoveries in the Gulf of Mexico.

Its decision on whether or not to develop the discoveries “is quite some ways off.”

“We may choose to stay with those developments but we may choose to exit before development happens,” Fox said. When asked by an analyst if the exit means ConocoPhillips will dispose of assets it has partially explored, Fox said “possibly, only if we get full value for it.”

“We haven’t made a commitment to exit deep-water, per se, but deep-water exploration,” he said.

ConocoPhillips had said this summer it would scale back on exploration spending, cutting its exploration spending to $1.8 billion of its estimated $11.5 billion budget.

ConocoPhillips lost about $1.1 billion in the third quarter as it took impairments and restructuring charges and paid a penalty for terminating a contract for a Gulf of Mexico deep-water rig.

It said it would lop off $1.3 billion from its capital budget guidance this year to $10.2 billion, and compress its operating costs by another $1 billion to $8.2 billion as it braces for a long downturn.

“We are accelerating actions to position our company for low and volatile prices, while improving the underlying performance of the business,” ConocoPhillips CEO Ryan Lance said in a written statement.

Its $1.1 billion loss in the third quarter, about 87 cents a share, compared to its $2.7 billion profit in the same July-September period last year.

It wrote off $195 million in asset value, took a $156 million restructuring charge related to severance packages and a $246 million charge for terminating the Gulf rig contract.

“We are exercising flexibility in our capital program, dramatically lowering our cost structure and divesting assets that do not compete for funding in our portfolio,” Lance said.

ConocoPhillips said its daily oil and gas production grew by 81,000 barrels to 1.6 million barrels as it drew extra crude from Alaska, Canada, U.S. shale plays and the Middle East. The firm says it has seven major projects expected to come online and that its massive Canadian oil sands project drew its first barrels of thick oil in the quarter.

Its fields in the Eagle Ford Shale in South Texas and the Bakken Shale in North Dakota picked up a 10 percent increase in production while its Canadian operations bolstered output 39 percent.

Gulf Island Fabrication, Inc. Announces the Completion of the Acquisition of LEEVAC Shipyards AssetsPress Release | 01/04/2016 | http://www.businesswire.com/

Gulf Island Fabrication, Inc. (NASDAQ: GIFI) today announced that pursuant to the asset purchase agreement dated December 23, 2015, between LEEVAC Shipyards, LLC and its related affiliates (collectively, “LEEVAC”),


certain owners of LEEVAC and a Gulf Island subsidiary, the purchase of substantially all of LEEVAC’s assets, including LEEVAC’s leasehold interests at its marine fabrication facilities in Jennings, Louisiana and Lake Charles, Louisiana, and substantially all of LEEVAC’s machinery and equipment, was completed.

Additionally, in connection with the transaction, Gulf Island has entered into an agreement to lease LEEVAC's marine fabrication facility in Houma, Louisiana. The purchase price for the LEEVAC assets was $20.0 million, subject to a working capital adjustment under which Gulf Island received at closing a dollar-for-dollar reduction for the assumption of certain net liabilities of LEEVAC and settlement payments from sureties on certain ongoing fabrication projects that were assigned to Gulf Island in the transaction. After taking into account these adjustments, Gulf Island received approximately $1.6 million in cash at closing. In addition, the transaction added approximately $112.0 million of incremental contract backlog.

Chris Vaccari, President and Chief Executive Officer of LEEVAC said, "I am very excited to become a part of the Gulf Island management team. To compete in today's marine fabrication market place and serve an increasingly more sophisticated customer you must have access to the best talent, tools, and facilities, and I believe this transaction creates a group of shipyards that will better meet the demands of the market."

Kirk Meche, President and Chief Executive Officer of Gulf Island stated that “the closing of the acquisition of the LEEVAC assets accomplishes a key strategic initiative of management, expanding our marine fabrication and vessel repair and maintenance presence in the Gulf South market and diversifying our fabrication capabilities. I want to personally welcome the former LEEVAC employees who have joined our team.”

PPHB, LP acted as exclusive financial advisor to Gulf Island in the transaction. Gulf Island was advised on legal matters exclusively by Jones Walker LLP. LEEVAC was advised on legal matters exclusively by McGlinchey Stafford PLLC.

Gulf Island Fabrication, Inc., based in Houston, Texas, with fabrication facilities located in Houma, Louisiana, and San Patricio County, Texas, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms (such as tension leg platforms “TLPs”, “SPARs”, “FPSOs”, and “MinDOCs”), piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, towboats, liftboats, tanks and barges. The Company also provides offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, heavy lifts such as ship integration and TLP module integration, loading and offloading of jack-up drilling rigs, semi-submersible drilling rigs, TLPs, SPARs, or other similar cargo, onshore and offshore scaffolding, piping insulation services, and steel warehousing and sales.

Anadarko Has Pulled Offer To Buy Apache, CEO SaysBy Collin Eaton | 11/11/2015 | http://www.bizjournals.com/

HOUSTON — The CEO of Anadarko Petroleum Corp. has confirmed his company recently approached smaller rival Apache Corp. with a proposal for an all-stock acquisition, but after being “summarily rejected” Anadarko withdrew the offer and will no longer pursue a deal.

“We are unwilling to pursue the transaction without access to detailed non-public information,” Anadarko Chairman, President and CEO Al Walker said in a written statement on Wednesday, noting that Apache appears to be trading “at or near full value currently.”

He said Anadarko had proposed the deal because shareholders of both firms could benefit from Apache — a company he said has lagged in both financial and operational performance — entering the larger firm’s corporate fold. But Apache rejected the deal and “no discussions of substance occurred,” Walker said.


Apache, worth $18.8 billion on the stock market Wednesday, declined to comment.

Citigroup investment banker Stephen Trauber said Anadarko’s out-of-the-blue bid for Apache is an early salvo into a potential acquisition wave as oil majors and large independent producers take advantage of low corporate valuations of their smaller rivals, though merger activity isn’t likely to begin in earnest for at least another six months.

“We’re probably near the bottom,” in terms of oil prices, Trauber said. “Valuations are low and if you believe the sector is going to improve over the next two to five years, this is a pretty good opportunity to buy good assets at a relatively low valuation.”

Anadarko’s statement comes after initial reports that Apache, which has cut its workforce by 20 percent this year, had been in talks to sell itself to an unknown buyer, which analysts speculated could be Exxon Mobil Corp. or another oil major.

Apache’s share price had surged earlier this week on speculation it would be taken over by a larger company. But Anadarko shares had dropped nearly 7 percent when reports by Bloomberg and others indicated The Woodlands-based oil explorer was the potential suitor.

Walker said the initial non-binding, all-stock offer sent to Apache included a modest premium and “would have been highly accretive to Anadarko on a cash flow per-share basis, even before synergies.”

But industry observers say the deal wouldn’t have been a good fit. Analysts at Houston-based Tudor, Pickering, Holt & Co. said they saw little need for Anadarko to bolster its operations with Apache’s “scattered footprint, much of which is outside the core unconventional fairways.”

“We would be hard pressed to see how buying large mature fields internationally would strategically fit and how it would be accretive for the organization given Apache has done a great job efficiently running both Egypt and the North Sea,” the analysts said.


Tables

Status of Gulf of Mexico Well Permits

Well Permits StatisticsUpdated Monthly

Data last updated on 01/01/2016

Permit Type

Water Depth Less than 500ft1

Water Depth Greater than 500ft2 Total

Approved *all water

depthsPermits

Approved Dec 1-31,

2015

Returned3as of Dec 1-31, 2015

Pending as of Dec 1-31, 2015

Permits Approved Dec 1-31,

2015

Returned3as of Dec 1-31, 2015

Pending as of Dec 1-31, 2015

New Well 1 7 7 3 7 18 4Revised New Well 0 0 1 24 1 6 24

Bypass 0 1 0 4 0 1 4Revised Bypass 1 1 1 6 0 1 7

Sidetrack 2 12 5 4 3 1 6Revised Sidetrack 1 0 0 8 0 1 9

1Shallow water drilling operations became subject to new rules and information requirements as of June 2010.2Deep water drilling operations became subject to new rules and information requirements as of October 2010.3Submitted permit applications may be returned for further information or clarification.

Approved Permits By

Water Depth For All Types

Shallow Water (< 500 ft) Deep Water (> 500 ft)

New

W

ell

Revi

sed

New

W

ell

Bypa

ss

Revi

sed

Bypa

ss

Side

trac

k

Revi

sed

Side

trac

k

New

W

ell

Revi

sed

New

W

ell

Bypa

ss

Revi

sed

Bypa

ss

Side

trac

k

Revi

sed

Side

trac

k

Total for 2015 121 33 7 9 52 57 68 443 33 67 34 60

2015

Dec 1 0 0 1 2 1 3 24 4 6 4 8Nov 1 2 1 0 2 0 5 30 6 13 6 10Oct 0 0 1 1 2 2 8 31 5 6 3 6Sep 0 2 1 1 3 1 5 40 2 3 2 4Aug 1 2 1 0 7 3 8 40 2 0 2 1Jul 0 4 0 0 3 11 7 46 0 2 3 5Jun 2 0 0 3 6 4 6 53 1 4 4 5May 0 4 1 0 7 10 6 37 1 4 1 2Apr 1 7 0 1 4 5 11 36 2 7 0 5Mar 2 8 1 0 8 8 5 34 2 11 3 5Feb 2 1 1 2 1 6 2 30 4 8 3 5Jan 2 3 0 0 7 6 2 42 4 3 3 4


Approved Permits to Drill

Approved Permits to Drillfrom October 1, 2015 to January 21, 2016

Approved Date

Permit Type

Surface Area

Block Numbe

rCompany Name Well Type Well

NameWater Depth Rig Name

1/21/2016 Bypass MC 29 Stone Energy Corporation Development 7 2009 ENSCO 8503

1/20/2016 Revised New Well MC 338 Noble Energy, Inc. Exploratory 1 4824 ATWOOD ADVANTAGE

1/20/2016 Revised Sidetrack MC 794 LLOG Exploration Offshore,

L.L.C. Exploratory 1 1464 NOBLE AMOS RUNNER

1/19/2016 Revised New Well KC 96 Chevron U.S.A. Inc. Exploratory 2 4838 PACIFIC SANTA ANA

1/19/2016 New Well ST 131 Arena Offshore, LP Development K005 152 HERCULES 300

1/19/2016 New Well MC 475 Shell Offshore Inc. Exploratory 1 6590 NOBLE GLOBETROTTER

1/19/2016 Revised New Well GB 559 Shell Offshore Inc. Exploratory OR004 3393 NOBLE BULLY I

1/19/2016 Revised New Well GC 512 Hess Corporation Development SB002 3577 DIAMOND OCEAN

BLACKLION

1/19/2016 Revised New Well AC 857 Shell Offshore Inc. Development GB006 8037 NOBLE DON TAYLOR

1/18/2016 MC 29 Stone Energy Corporation 7 2009 ENSCO 8503

1/15/2016 Sidetrack MC 895 LLOG Exploration Offshore, L.L.C. Exploratory 1 3682 SEADRILL WEST

NEPTUNE

1/15/2016 New Well KC 102 Chevron U.S.A. Inc. Exploratory 2 4262DUPLICATE FOR

DEEPWATER ASGARD -USE 51292

1/15/2016 Sidetrack SS 198 Renaissance Offshore, LLC Development I012 100 HERCULES 205

1/15/2016 Bypass AC 857 Shell Offshore Inc. Development GA006 7817 H&P 205

1/15/2016 New Well GC 825 BP Exploration & Production Inc. Development 1 4979 ENSCO DS-3

1/15/2016 New Well GB 559 Shell Offshore Inc. Exploratory OR004 3393 NOBLE BULLY I

1/15/2016 Revised MC 338 Noble Energy, Inc. Exploratory 1 4824 ATWOOD ADVANTAGE



Approved Date

Permit Type

Surface Area

Block Numbe



New Well

1/14/2016 Revised New Well GC 640 Chevron U.S.A. Inc. Development PS005 4299

DUPLICATE FOR DEEPWATER ASGARD -

USE 51292

1/14/2016 Revised New Well GC 281 Energy Resource

Technology GOM, Inc. Exploratory 1 2735 NOBLE DANNY ADKINS

1/14/2016 Revised Sidetrack GB 958 Cobalt International Energy,

L.P. Exploratory 3 4846 ROWAN RELIANCE

1/13/2016 Revised New Well MC 566 Shell Offshore Inc. Exploratory 1 7020 NOBLE GLOBETROTTER

1/13/2016 Revised Bypass KC 686 Repsol E&P USA Inc. Exploratory 2 6162 ROWAN RENAISSANCE

1/13/2016 Revised New Well GC 627 BP Exploration &

Production Inc. Exploratory 2 4305 SEADRILL WEST CAPRICORN

1/12/2016 Revised New Well MC 29 Stone Energy Corporation Development 7 2009 ENSCO 8503



1/12/2016 Revised Sidetrack AC 857 Shell Offshore Inc. Development GA006 7820 H&P 205


1/11/2016 Revised New Well MC 427 LLOG Exploration Offshore,

L.L.C. Exploratory 2 5768 SEADRILL SEVAN LOUISIANA

1/11/2016 Revised New Well KC 770 Union Oil Company of

California Exploratory 1 6574 T.O. DISCOVERER INDIA

1/8/2016 Revised Sidetrack MC 794 LLOG Exploration Offshore,

L.L.C. Exploratory 1 1464 NOBLE AMOS RUNNER

1/8/2016 Revised New Well WR 584 Exxon Mobil Corporation Development JU103 7142 MAERSK VIKING

1/7/2016 Revised New Well HI A494 Rooster Petroleum, LLC Development B005 210 ROWAN JOE DOUGLAS



Approved Date

Permit Type

Surface Area

Block Numbe




1/6/2016 Sidetrack EI 314 Arena Offshore, LP Development C010 235 H&P 105

1/5/2016 Revised New Well AC 475 ConocoPhillips Company Exploratory 1 5142 MAERSK VALIANT


1/5/2016 Revised New Well ST 131 Arena Offshore, LP Development K004 152 HERCULES 300



1/4/2016 Revised Sidetrack EI 314 Arena Offshore, LP Development C010 235 H&P 105



1/4/2016 Revised New Well GC 512 Hess Corporation Development SB002 3577 DIAMOND OCEAN

BLACKLION


12/31/2015 New Well KC 96 Chevron U.S.A. Inc. Exploratory 2 4838 PACIFIC SANTA ANA



12/30/2015 Revised Sidetrack GC 18 Whistler Energy II, LLC Development A013 760 NABORS MODS 201





Approved Date

Permit Type

Surface Area

Block Numbe



12/29/2015 Revised New Well WR 677 Union Oil Company of

California Development PS004 7035 T.O. DISCOVERER CLEAR LEADER





USE 51292

12/28/2015 Revised Sidetrack GC 726 Anadarko Petroleum

Corporation Exploratory 2 4663 ROWAN RESOLUTE

12/28/2015 New Well GC 281 Energy Resource Technology GOM, Inc. Exploratory 1 2735 NOBLE DANNY ADKINS

12/24/2015 Sidetrack MC 794 LLOG Exploration Offshore, L.L.C. Exploratory 1 1464 NOBLE AMOS RUNNER

12/23/2015 New Well MC 338 Noble Energy, Inc. Exploratory 1 4824 ATWOOD ADVANTAGE

12/22/2015 Bypass VK 959 LLOG Exploration Offshore, L.L.C. Exploratory 1 4255 SEADRILL SEVAN

LOUISIANA



12/21/2015 Revised Bypass VK 959 LLOG Exploration Offshore,


12/21/2015 Sidetrack GB 958 Cobalt International Energy, L.P. Exploratory 3 4846 ROWAN RELIANCE



12/21/2015 VK 959 LLOG Exploration Offshore, L.L.C. 1 4255 SEADRILL SEVAN

LOUISIANA

12/18/2015 Sidetrack WR 51 Anadarko Petroleum Corporation Exploratory 3 5857 DIAMOND OCEAN

BLACKHAWK

12/18/2015 Revised Bypass KC 96 Chevron U.S.A. Inc. Exploratory 1 4847 PACIFIC SANTA ANA




Approved Date

Permit Type

Surface Area

Block Numbe




12/15/2015 Sidetrack VK 989 Stone Energy Corporation Development A015 1290 H&P 100











USE 51292

12/10/2015 Revised Sidetrack MC 807 Shell Offshore Inc. Exploratory MB008 3037 OLYMPUS N88



12/10/2015 Revised Sidetrack EI 184 Northstar Offshore Group,

LLC Development A005 88 HERCULES 201

12/10/2015 Bypass KC 686 Repsol E&P USA Inc. Exploratory 2 6162 ROWAN RENAISSANCE

12/9/2015 Bypass KC 96 Chevron U.S.A. Inc. Exploratory 1 4847 PACIFIC SANTA ANA


12/9/2015 Revised New Well EW 910 W & T Offshore, Inc. Development A008 557 H&P 203



12/9/2015 KC 686 Repsol E&P USA Inc. 2 6162 ROWAN RENAISSANCE



Approved Date

Permit Type

Surface Area

Block Numbe





12/8/2015 Revised Sidetrack GC 609 BHP Billiton Petroleum

(GOM) Inc. Development SS002 4294 T.O. DEEPWATER INVICTUS

12/7/2015 Revised New Well VK 959 LLOG Exploration Offshore,




12/4/2015 Revised Bypass MP 270 Castex Offshore, Inc. Exploratory 3 210 ENSCO 87


12/2/2015 Revised New Well MC 657 Shell Offshore Inc. Development C004 7570 T.O. DEEPWATER

NAUTILUS

12/2/2015 New Well KC 770 Union Oil Company of California Exploratory 1 6574 T.O. DISCOVERER INDIA


12/2/2015 Revised Bypass MC 942 Statoil USA E&P Inc. Exploratory 4 4200 MAERSK DEVELOPER


12/1/2015 Revised Bypass GC 743 BP Exploration &

Production Inc. Development DC133 6824 SEADRILL WEST AURIGA




12/1/2015 Bypass WR 634 Union Oil Company of California Development PN007 6800 PACIFIC SHARAV




Approved Date

Permit Type

Surface Area

Block Numbe




11/30/2015 Revised Bypass MC 725 Hess Corporation Development 5 4311 STENA FORTH



11/27/2015 Bypass VK 959 LLOG Exploration Offshore, L.L.C. Exploratory 1 4255 SEADRILL SEVAN

LOUISIANA


11/25/2015 Sidetrack ST 131 Arena Offshore, LP Development K003 152 HERCULES 300

11/25/2015 New Well AC 475 ConocoPhillips Company Exploratory 1 5143 MAERSK VALIANT


NAUTILUS




11/23/2015 Sidetrack GC 726 Anadarko Petroleum Corporation Exploratory 2 4663 ROWAN RESOLUTE

11/23/2015 Revised New Well GC 726 Anadarko Petroleum




11/22/2015 ST 131 Arena Offshore, LP K003 152 HERCULES 300

11/21/2015 GC 726 Anadarko Petroleum Corporation 2 4663 ROWAN RESOLUTE

11/20/2015 Revised Sidetrack GC 596 Chevron U.S.A. Inc. Development PN006 4021 T.O. DISCOVERER

INSPIRATION

11/20/2015 New Well GC 512 Hess Corporation Development SB002 3577 DIAMOND OCEAN BLACKLION



Approved Date

Permit Type

Surface Area

Block Numbe



11/20/2015 Bypass MP 270 Castex Offshore, Inc. Exploratory 3 210 ENSCO 87










NAUTILUS

11/19/2015 Revised New Well WR 634 Union Oil Company of

California Development PN007 6803 PACIFIC SHARAV




USE 51292

11/19/2015 Sidetrack GC 609 BHP Billiton Petroleum (GOM) Inc. Development SS002 4294 T.O. DEEPWATER

INVICTUS


11/18/2015 Revised Bypass WR 160 Statoil Gulf of Mexico LLC Exploratory 2 5868 T.O. DISCOVERER

AMERICAS

11/18/2015 New Well GC 512 Hess Corporation Development SA002 3531 DIAMOND OCEAN BLACKLION

11/18/2015 Revised Bypass MC 84 Freeport-McMoRan Oil &

Gas LLC Exploratory SS007 5404 ROWAN RELENTLESS






Approved Date

Permit Type

Surface Area

Block Numbe







11/17/2015 Revised New Well MC 35 Eni US Operating Co. Inc. Exploratory 1 3532 ENSCO 8506

11/16/2015 Revised Sidetrack GB 978 Chevron U.S.A. Inc. Exploratory 2 3803 T.O. DISCOVERER INDIA

11/16/2015 Revised New Well MC 383 BP Exploration &

Production Inc. Exploratory K003 4721 ENSCO DS-3


11/16/2015 Bypass GB 958 Cobalt International Energy, L.P. Exploratory 3 4846 ROWAN RELIANCE

11/13/2015 Bypass MC 725 Hess Corporation Development 5 4311 STENA FORTH

11/13/2015 Revised Sidetrack MC 819 Murphy Exploration &

Production Company - USA Exploratory 1 5673 T.O. DISCOVERER DEEP SEAS


NAUTILUS


11/12/2015 GB 958 Cobalt International Energy, L.P. 3 4846 ROWAN RELIANCE

11/10/2015 Revised Sidetrack GC 596 Chevron U.S.A. Inc. Development PN006 4021 T.O. DISCOVERER

INSPIRATION



11/9/2015 Revised Bypass MC 942 Statoil USA E&P Inc. Exploratory 4 4200 MAERSK DEVELOPER


11/9/2015 Revised GC 743 BP Exploration & Other DC801 6853 T.O. DEVELOPMENT



Approved Date

Permit Type

Surface Area

Block Numbe



New Well Production Inc. DRILLER III

11/9/2015 Revised Bypass WR 225 Marathon Oil Company Exploratory 1 6781 MAERSK VALIANT

11/6/2015 Revised Sidetrack MC 807 Shell Offshore Inc. Exploratory MB008 3037 OLYMPUS N88



Production Inc. Other DC801 6853 T.O. DEVELOPMENT DRILLER III





L.L.C. Exploratory 2 5746 SEADRILL WEST NEPTUNE

11/5/2015 Sidetrack MC 807 Shell Offshore Inc. Exploratory MB008 3037 OLYMPUS N88




AMERICAS

11/5/2015 MC 725 Hess Corporation 5 4311 STENA FORTH

11/4/2015 Sidetrack AC 857 Shell Offshore Inc. Development GA006 7820 H&P 205

11/4/2015 Sidetrack MC 819 Murphy Exploration & Production Company - USA Exploratory 1 5673 T.O. DISCOVERER DEEP

SEAS


11/4/2015 New Well VK 959 LLOG Exploration Offshore, L.L.C. Exploratory 1 4252 SEADRILL SEVAN

LOUISIANA





Approved Date

Permit Type

Surface Area

Block Numbe




11/4/2015 Revised New Well KC 736 Chevron U.S.A. Inc. Exploratory 3 6646 T.O. DISCOVERER INDIA


11/3/2015 New Well AC 857 Shell Offshore Inc. Development GB006 8037 NOBLE DON TAYLOR



11/3/2015 Bypass MC 84 Freeport-McMoRan Oil & Gas LLC Exploratory SS007 5404 ROWAN RELENTLESS



11/3/2015 Sidetrack GC 18 Whistler Energy II, LLC Development A013 760 NABORS MODS 201

11/3/2015 MC 807 Shell Offshore Inc. MB008 3037 OLYMPUS N88


11/2/2015 Bypass MC 942 Statoil USA E&P Inc. Exploratory 4 4200 MAERSK DEVELOPER



10/30/2015 MC 942 Statoil USA E&P Inc. 4 4200 MAERSK DEVELOPER

10/29/2015 Bypass MC 794 LLOG Exploration Offshore, L.L.C. Exploratory 1 1462 NOBLE AMOS RUNNER


10/29/2015 Bypass GC 743 BP Exploration & Production Inc. Development DC133 6824 SEADRILL WEST AURIGA


NAUTILUS

10/28/2015 New Well MC 84 Freeport-McMoRan Oil & Exploratory SS007 5404 ROWAN RELENTLESS



Approved Date

Permit Type

Surface Area

Block Numbe



Gas LLC






10/27/2015 MC 819 Murphy Exploration & Production Company - USA 1 5673 T.O. DISCOVERER DEEP

SEAS

10/26/2015 MC 794 LLOG Exploration Offshore, L.L.C. 1 1462 NOBLE AMOS RUNNER


AMERICAS


10/22/2015 New Well MC 29 Stone Energy Corporation Development 7 2009 ENSCO 8503


10/21/2015 Revised Sidetrack MC 819 Murphy Exploration &

Production Company - USA Exploratory 1 5673 T.O. DISCOVERER DEEP SEAS

10/21/2015 Sidetrack GC 596 Chevron U.S.A. Inc. Development PN006 4021 T.O. DISCOVERER INSPIRATION

10/20/2015 New Well WR 634 Union Oil Company of California Development PN007 6803 PACIFIC SHARAV


Production Inc. Development 2 6034 THUNDER HORSE PDQ



10/19/2015 Revised New Well MC 942 Statoil USA E&P Inc. Exploratory 4 4200 MAERSK DEVELOPER


Production Inc. Development 2 6034 THUNDER HORSE PDQ



Approved Date

Permit Type

Surface Area

Block Numbe



10/19/2015 Revised Bypass WR 758 Chevron U.S.A. Inc. Exploratory PS001 6967 T.O. DISCOVERER CLEAR

LEADER



10/16/2015 Bypass WR 160 Statoil Gulf of Mexico LLC Exploratory 2 5868 T.O. DISCOVERER AMERICAS

10/16/2015 Revised New Well GC 596 Chevron U.S.A. Inc. Development PN006 4021 T.O. DISCOVERER

INSPIRATION


L.L.C. Exploratory 2 5746 SEADRILL WEST NEPTUNE

10/16/2015 Revised Sidetrack ST 131 Arena Offshore, LP Development K001 152 HERCULES 300



10/16/2015 New Well MC 657 Shell Offshore Inc. Development C004 7570 T.O. DEEPWATER NAUTILUS


Production Inc. Development 9 5636 SEADRILL WEST CAPRICORN

10/15/2015 Bypass WC 168 Linder Oil Company, A Partnership Development A001 40 HERCULES 264






10/14/2015 Sidetrack MC 819 Murphy Exploration & Production Company - USA Exploratory 1 5673 T.O. DISCOVERER DEEP

SEAS



10/14/2015 New Well GB 1003 Cobalt International Energy, Exploratory 1 4520 ROWAN RELIANCE



Approved Date

Permit Type

Surface Area

Block Numbe



L.P.

10/14/2015 Sidetrack ST 24 Chevron U.S.A. Inc. Development SC024 53 HERCULES 173




USE 51292


10/11/2015 MC 819 Murphy Exploration & Production Company - USA 1 5673 T.O. DISCOVERER DEEP

SEAS

10/8/2015 Revised New Well MC 127 Freeport-McMoRan Oil &

Gas LLC Exploratory SS003 5511 NOBLE TOM MADDEN


10/8/2015 New Well GC 627 BP Exploration & Production Inc. Exploratory 2 4305 SEADRILL WEST

CAPRICORN

10/8/2015 Bypass WR 51 Anadarko Petroleum Corporation Exploratory 3 5857 DIAMOND OCEAN

BLACKHAWK

10/8/2015 Revised Sidetrack ST 131 Arena Offshore, LP Development K001 152 HERCULES 300


10/7/2015 Revised Bypass WC 168 Linder Oil Company, A

Partnership Development A001 43 HERCULES 264

10/7/2015 Revised Sidetrack MC 809 Shell Offshore Inc. Development P007 3646 NOBLE DON TAYLOR


Production Inc. Other DC801 6853 T.O. DEVELOPMENT DRILLER III

10/7/2015 Revised New Well GB 958 Cobalt International Energy,

L.P. Exploratory 3 4846 ROWAN RELIANCE

10/7/2015 New Well GC 643 Freeport-McMoRan Oil & Gas LLC Exploratory SS004 3885 NOBLE SAM CROFT

10/7/2015 Revised MC 725 Hess Corporation Development 5 4308 STENA FORTH



Approved Date

Permit Type

Surface Area

Block Numbe



New Well

10/7/2015 Revised Sidetrack WR 51 Anadarko Petroleum

Corporation Exploratory 3 5857 DIAMOND OCEAN BLACKHAWK

10/7/2015 Revised New Well KC 686 Repsol E&P USA Inc. Exploratory 2 6207 ROWAN RENAISSANCE

10/6/2015 Revised New Well MC 807 Shell Offshore Inc. Development MB008 3003 OLYMPUS N88




10/6/2015 Revised Bypass WR 758 Chevron U.S.A. Inc. Exploratory PS001 6967 T.O. DISCOVERER CLEAR

LEADER


Production Inc. Development 9 5636 SEADRILL WEST CAPRICORN

10/5/2015 New Well MC 427 LLOG Exploration Offshore, L.L.C. Exploratory 1 5768 SEADRILL SEVAN

LOUISIANA



10/2/2015 Revised Bypass GC 640 Chevron U.S.A. Inc. Development PS009 4292


USE 51292

10/2/2015 Sidetrack MC 809 Shell Offshore Inc. Development P007 3646 NOBLE DON TAYLOR


Status of Gulf of Mexico Plans

Shallow and Deepwater Exploration and Development PlansData last updated on 10/20/2016

Status of ExplorationPlans and DOCDs

for New Wells Only

Received prior to June 8,

2010

Received since June 8,

2010

Modification Requested1 Withdrawn2 Pending3 Deemed

Submitted4

Approved since June 8,

20105

Water Depth Less than or equal to 500 feetInitial Exploration Plans 3 109 3 6 3 2 98

Revised Exploration Plans 0 40 0 3 2 0 35Supplemental Exploration

Plans 3 26 0 1 0 0 28

Initial Development Operations Coordination

Document (DOCDs)8 70 1 8 2 3 64

Revised DOCDs 0 381 0 22 3 7 349 Supplemental DOCDs 10 128 4 6 10 1 117

Water Depth Greater than 500 feet Status of Exploration

Plans and DOCDsfor New Wells Only

Received prior to Oct 12,

2010

Received since Oct 12,

2010

Modification Requested1 Withdrawn2 Pending6 Deemed

Submitted4

Approved since Oct 12,

20107

Initial Exploration Plans 8 163 3 5 5 4 154 Revised Exploration Plans 5 273 2 21 4 3 247 Supplemental Exploration

Plans 5 109 0 8 4 2 100

Initial Development Operations Coordination

Document (DOCDs)5 43 1 1 1 1 44

Revised DOCDs 3 138 0 19 4 2 116 Supplemental DOCDs 3 80 0 2 5 3 73

1. A modification may be requested if further information or clarification is needed for submitted exploration plans and DOCDs. These exploration plans and DOCDs are not counted as pending.

2. Applications may be withdrawn by an operator at any time in the application process.3. Pending exploration plan and DOCD figures in this table include applications submitted before and after June 8, 2010. They do not

include applications where there has been a modification requested.4. Consistent with federal regulations, a plan is deemed "submitted" once all supporting materials and documentation has been

provided. Once a plan is deemed submitted, BOEMRE has 30 calendar days to analyze and evaluate Exploration Plans and 120 calendar days to analyze and evaluate DOCD.

5. Approved exploration plan and DOCD figures in this table include exploration plans and DOCDs submitted before and after June 8, 2010.

6. Pending exploration plan and DOCD figures in this table include applications submitted before and after October 12, 2010. They do not include applications where there has been a modification requested.

7. Approved exploration plan and DOCD figures in this table include exploration plans and DOCDs submitted before and after October 12, 2010.

http://www.boem.gov/Oil-and-Gas-Energy-Program/Plans/Exploration-and-Development-Plans-Definitions.aspx



















Approved Exploration Plans

Approved Exploration Plansfrom 10/01/2015 – 01/21/2016

Surface Area

Surface Block

Lease Number Operator Name Water

DepthReceived

DatePlan Final

Action Date

AC 424 G32964 Statoil Gulf of Mexico LLC 6733 8/26/2015 10/1/2015AC 943 G31205 Stone Energy Corporation 7735 8/4/2015 11/13/2015AC 815 G19409 Shell Offshore Inc. 9059 7/30/2015 10/9/2015AC 772 G35153 Shell Offshore Inc. 8787 7/30/2015 10/9/2015AC 772 G35153 Shell Offshore Inc. 8830 7/30/2015 10/9/2015AC 772 G35153 Shell Offshore Inc. 9059 7/30/2015 10/9/2015AT 64 G28104 Statoil USA E&P Inc. 4620 11/3/2015 12/11/2015AT 64 G28104 Statoil USA E&P Inc. 4624 11/3/2015 12/11/2015AT 64 G28104 Statoil USA E&P Inc. 4636 11/3/2015 12/11/2015AT 150 G35426 Freeport-McMoRan Oil & Gas LLC 4701 9/3/2015 10/23/2015DC 713 G31567 LLOG Exploration Offshore, L.L.C. 8446 8/17/2015 12/4/2015DC 713 G31567 LLOG Exploration Offshore, L.L.C. 8448 8/17/2015 12/4/2015DC 713 G31567 LLOG Exploration Offshore, L.L.C. 8449 8/17/2015 12/4/2015EW 1009 G34878 Noble Energy, Inc. 1867 9/9/2015 12/1/2015EW 1009 G34878 Noble Energy, Inc. 1871 9/9/2015 12/1/2015GB 559 G11546 Shell Offshore Inc. 3382 11/2/2015 1/14/2016GB 559 G11546 Shell Offshore Inc. 3393 11/2/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4140 9/30/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4158 9/30/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4161 9/30/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4239 9/30/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4274 9/30/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4294 9/30/2015 1/14/2016GC 640 G20082 Chevron U.S.A. Inc. 4336 9/30/2015 1/14/2016GC 850 G31757 Cobalt International Energy, L.P. 6425 10/9/2015 1/8/2016GC 850 G31757 Cobalt International Energy, L.P. 6490 10/9/2015 1/8/2016GC 851 G31758 Cobalt International Energy, L.P. 5842 10/9/2015 1/8/2016GC 851 G31758 Cobalt International Energy, L.P. 6019 10/9/2015 1/8/2016GC 851 G31758 Cobalt International Energy, L.P. 6083 10/9/2015 1/8/2016GC 851 G31758 Cobalt International Energy, L.P. 6172 10/9/2015 1/8/2016GC 851 G31758 Cobalt International Energy, L.P. 6188 10/9/2015 1/8/2016GC 851 G31758 Cobalt International Energy, L.P. 6372 10/9/2015 1/8/2016GC 762 G25198 Chevron U.S.A. Inc. 4645 9/21/2015 12/23/2015



Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

GC 762 G25198 Chevron U.S.A. Inc. 4663 9/21/2015 12/23/2015GC 762 G25198 Chevron U.S.A. Inc. 4695 9/21/2015 12/23/2015GC 762 G25198 Chevron U.S.A. Inc. 4702 9/21/2015 12/23/2015GC 762 G25198 Chevron U.S.A. Inc. 4728 9/21/2015 12/23/2015GC 806 G31751 Chevron U.S.A. Inc. 4722 9/21/2015 12/23/2015GC 762 G25198 Chevron U.S.A. Inc. 4654 9/21/2015 12/23/2015GC 806 G31751 Chevron U.S.A. Inc. 4654 9/21/2015 12/23/2015GC 564 G34993 BHP Billiton Petroleum (GOM) Inc. 4219 11/27/2015 12/21/2015GC 564 G34993 BHP Billiton Petroleum (GOM) Inc. 4225 11/27/2015 12/21/2015GC 564 G34993 BHP Billiton Petroleum (GOM) Inc. 4227 11/27/2015 12/21/2015GC 564 G34993 BHP Billiton Petroleum (GOM) Inc. 4231 11/27/2015 12/21/2015GC 609 G16764 BHP Billiton Petroleum (GOM) Inc. 4294 11/5/2015 12/16/2015GC 39 G34966 Noble Energy, Inc. 1921 9/9/2015 12/1/2015GC 39 G34966 Noble Energy, Inc. 1927 9/9/2015 12/1/2015GC 627 G25174 BP Exploration & Production Inc. 4314 9/3/2015 11/6/2015GC 865 G35010 Stone Energy Corporation 3690 7/1/2015 10/2/2015GC 865 G35010 Stone Energy Corporation 4150 7/1/2015 10/2/2015GC 609 G16764 BHP Billiton Petroleum (GOM) Inc. 4294 9/21/2015 10/1/2015KC 57 G25777 Chevron U.S.A. Inc. 4095 8/27/2015 12/30/2015KC 101 G25781 Chevron U.S.A. Inc. 4112 8/27/2015 12/30/2015KC 102 G25782 Chevron U.S.A. Inc. 4082 8/27/2015 12/30/2015KC 102 G25782 Chevron U.S.A. Inc. 4132 8/27/2015 12/30/2015KC 102 G25782 Chevron U.S.A. Inc. 4267 8/27/2015 12/30/2015KC 102 G25782 Chevron U.S.A. Inc. 4327 8/27/2015 12/30/2015KC 58 G30910 Chevron U.S.A. Inc. 4089 8/27/2015 12/30/2015KC 58 G30910 Chevron U.S.A. Inc. 4130 8/27/2015 12/30/2015KC 638 G33334 Freeport-McMoRan Oil & Gas LLC 5864 9/10/2015 12/16/2015KC 638 G33334 Freeport-McMoRan Oil & Gas LLC 5915 9/10/2015 12/16/2015KC 638 G33334 Freeport-McMoRan Oil & Gas LLC 6085 9/10/2015 12/16/2015KC 682 G33340 Freeport-McMoRan Oil & Gas LLC 6242 9/10/2015 12/16/2015KC 682 G33340 Freeport-McMoRan Oil & Gas LLC 6314 9/10/2015 12/16/2015KC 682 G33340 Freeport-McMoRan Oil & Gas LLC 6401 9/10/2015 12/16/2015KC 686 G33341 Repsol E&P USA Inc. 6207 11/3/2015 12/9/2015KC 93 G25780 Chevron U.S.A. Inc. 4568 6/24/2015 12/8/2015KC 93 G25780 Chevron U.S.A. Inc. 4617 6/24/2015 12/8/2015KC 93 G25780 Chevron U.S.A. Inc. 4669 6/24/2015 12/8/2015KC 93 G25780 Chevron U.S.A. Inc. 4752 6/24/2015 12/8/2015



Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

KC 137 G33005 Chevron U.S.A. Inc. 4517 6/24/2015 12/8/2015KC 137 G33005 Chevron U.S.A. Inc. 4744 6/24/2015 12/8/2015KC 137 G33005 Chevron U.S.A. Inc. 4752 6/24/2015 12/8/2015KC 137 G33005 Chevron U.S.A. Inc. 4784 6/24/2015 12/8/2015KC 137 G33005 Chevron U.S.A. Inc. 4787 6/24/2015 12/8/2015KC 129 G30924 Cobalt International Energy, L.P. 5167 9/3/2015 11/12/2015KC 129 G30924 Cobalt International Energy, L.P. 5266 9/3/2015 11/12/2015KC 129 G30924 Cobalt International Energy, L.P. 5706 9/3/2015 11/12/2015KC 129 G30924 Cobalt International Energy, L.P. 5718 9/3/2015 11/12/2015KC 129 G30924 Cobalt International Energy, L.P. 5888 9/3/2015 11/12/2015KC 769 G25803 Union Oil Company of California 6534 8/10/2015 10/26/2015KC 770 G25804 Union Oil Company of California 6547 8/10/2015 10/26/2015KC 770 G25804 Union Oil Company of California 6573 8/10/2015 10/26/2015KC 770 G25804 Union Oil Company of California 6574 8/10/2015 10/26/2015KC 770 G25804 Union Oil Company of California 6596 8/10/2015 10/26/2015KC 770 G25804 Union Oil Company of California 6603 8/10/2015 10/26/2015KC 814 G25810 Union Oil Company of California 6630 8/10/2015 10/26/2015KC 813 G25809 Union Oil Company of California 6570 8/10/2015 10/26/2015KC 481 G27720 ConocoPhillips Company 5986 6/19/2015 10/21/2015KC 525 G27725 ConocoPhillips Company 6066 6/19/2015 10/21/2015KC 525 G27725 ConocoPhillips Company 6076 6/19/2015 10/21/2015KC 525 G27725 ConocoPhillips Company 6081 6/19/2015 10/21/2015KC 525 G27725 ConocoPhillips Company 6209 6/19/2015 10/21/2015KC 569 G27734 ConocoPhillips Company 6226 6/19/2015 10/21/2015MC 794 G34909 LLOG Exploration Offshore, L.L.C. 1460 12/18/2015 1/5/2016MC 257 G35325 LLOG Exploration Offshore, L.L.C. 5869 8/28/2015 12/18/2015MC 257 G35325 LLOG Exploration Offshore, L.L.C. 5897 8/28/2015 12/18/2015MC 338 G31490 Noble Energy, Inc. 4824 11/18/2015 12/18/2015MC 387 G22873 ConocoPhillips Company 6490 10/2/2015 12/11/2015MC 388 G27272 ConocoPhillips Company 6630 10/2/2015 12/11/2015MC 388 G27272 ConocoPhillips Company 6631 10/2/2015 12/11/2015MC 388 G27272 ConocoPhillips Company 6668 10/2/2015 12/11/2015MC 895 G33764 LLOG Exploration Offshore, L.L.C. 3710 9/15/2015 12/4/2015MC 895 G33764 LLOG Exploration Offshore, L.L.C. 3750 9/15/2015 12/4/2015MC 895 G33764 LLOG Exploration Offshore, L.L.C. 3825 9/15/2015 12/4/2015MC 126 G18194 Freeport-McMoRan Oil & Gas LLC 4317 6/29/2015 11/27/2015MC 126 G18194 Freeport-McMoRan Oil & Gas LLC 4530 6/29/2015 11/27/2015



Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

MC 126 G18194 Freeport-McMoRan Oil & Gas LLC 4543 6/29/2015 11/27/2015MC 127 G19925 Freeport-McMoRan Oil & Gas LLC 5565 6/29/2015 11/27/2015MC 127 G19925 Freeport-McMoRan Oil & Gas LLC 5566 6/29/2015 11/27/2015MC 127 G19925 Freeport-McMoRan Oil & Gas LLC 5568 6/29/2015 11/27/2015MC 127 G19925 Freeport-McMoRan Oil & Gas LLC 5569 6/29/2015 11/27/2015MC 801 G32350 LLOG Exploration Offshore, L.L.C. 3360 7/29/2015 11/20/2015MC 427 G31498 LLOG Exploration Offshore, L.L.C. 5768 10/22/2015 11/20/2015MC 294 G31485 Noble Energy, Inc. 4673 6/3/2015 11/16/2015MC 338 G31490 Noble Energy, Inc. 4824 6/3/2015 11/16/2015MC 338 G31490 Noble Energy, Inc. 4826 6/3/2015 11/16/2015MC 339 G32316 Noble Energy, Inc. 4446 6/3/2015 11/16/2015MC 339 G32316 Noble Energy, Inc. 4511 6/3/2015 11/16/2015MC 339 G32316 Noble Energy, Inc. 4518 6/3/2015 11/16/2015MC 942 G24130 Statoil USA E&P Inc. 4197 7/14/2015 10/26/2015MC 942 G24130 Statoil USA E&P Inc. 4197 7/14/2015 10/26/2015MC 383 G07937 BP Exploration & Production Inc. 4721 9/21/2015 10/16/2015MC 942 G24130 Statoil USA E&P Inc. 4197 9/4/2015 10/9/2015MC 72 G08483 Stone Energy Corporation 1882 9/11/2015 1/15/2016MC 565 G34447 LLOG Exploration Offshore, L.L.C. 6850 9/17/2015 12/31/2015MC 565 G34447 LLOG Exploration Offshore, L.L.C. 6858 9/17/2015 12/31/2015MC 127 G19925 Freeport-McMoRan Oil & Gas LLC 5568 9/25/2015 12/9/2015MC 127 G19925 Freeport-McMoRan Oil & Gas LLC 5569 9/25/2015 12/9/2015MC 391 G26252 Shell Offshore Inc. 7081 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7166 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7187 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7220 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7252 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7255 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7272 7/1/2015 11/20/2015MC 393 G26254 Shell Offshore Inc. 7378 7/1/2015 11/20/2015MC 393 G26254 Shell Offshore Inc. 7404 7/1/2015 11/20/2015MC 348 G19939 Shell Offshore Inc. 7252 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7220 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7252 7/1/2015 11/20/2015MC 393 G26254 Shell Offshore Inc. 7378 7/1/2015 11/20/2015MC 393 G26254 Shell Offshore Inc. 7404 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7081 7/1/2015 11/20/2015



Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

MC 391 G26252 Shell Offshore Inc. 7086 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7093 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7096 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7166 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7287 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7166 7/1/2015 11/20/2015MC 391 G26252 Shell Offshore Inc. 7287 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7200 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7220 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7252 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7255 7/1/2015 11/20/2015MC 392 G26253 Shell Offshore Inc. 7272 7/1/2015 11/20/2015MC 393 G26254 Shell Offshore Inc. 7378 7/1/2015 11/20/2015MC 393 G26254 Shell Offshore Inc. 7404 7/1/2015 11/20/2015MC 563 G21176 Deep Gulf Energy III, LLC 6501 9/16/2015 11/13/2015MC 432 G33731 Shell Offshore Inc. 6683 8/21/2015 10/16/2015MC 476 G33736 Shell Offshore Inc. 6602 8/21/2015 10/16/2015MC 476 G33736 Shell Offshore Inc. 6631 8/21/2015 10/16/2015MC 476 G33736 Shell Offshore Inc. 6665 8/21/2015 10/16/2015MC 475 G35335 Shell Offshore Inc. 3567 8/21/2015 10/16/2015MC 475 G35335 Shell Offshore Inc. 3568 8/21/2015 10/16/2015MC 475 G35335 Shell Offshore Inc. 6590 8/21/2015 10/16/2015SM 71 G34266 Byron Energy Inc. 137 8/6/2015 11/16/2015SS 350 G35246 W & T Energy VI, LLC 336 2/2/2015 12/30/2015SS 350 G35246 W & T Energy VI, LLC 344 2/2/2015 12/30/2015SS 350 G35246 W & T Energy VI, LLC 367 2/2/2015 12/30/2015SS 350 G35246 W & T Energy VI, LLC 369 2/2/2015 12/30/2015SS 199 G12358 Renaissance Offshore, LLC 105 10/5/2015 12/10/2015

WR 52 G25232 Anadarko Petroleum Corporation 5900 10/20/2015 12/9/2015WR 51 G31938 Anadarko Petroleum Corporation 5847 10/20/2015 12/9/2015WR 271 G35080 Statoil Gulf of Mexico LLC 6713 9/29/2015 11/4/2015WR 271 G35080 Statoil Gulf of Mexico LLC 6734 9/29/2015 11/4/2015WR 271 G35080 Statoil Gulf of Mexico LLC 6764 9/29/2015 11/4/2015WR 272 G35081 Statoil Gulf of Mexico LLC 6067 9/29/2015 11/4/2015WR 272 G35081 Statoil Gulf of Mexico LLC 6074 9/29/2015 11/4/2015WR 271 G35080 Statoil Gulf of Mexico LLC 6734 9/18/2015 10/23/2015


Approved Development Operations Coordination Documents

Approved Development Operations Coordination Documentsfrom 10/01/2015 – 01/21/2016

Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

AC 815 G19409 Shell Offshore Inc. 9350 7/2/2015 10/26/2015AC 859 G20871 Shell Offshore Inc. 9627 7/2/2015 10/26/2015EI 341 G02914 Arena Offshore, LP 272 5/29/2015 12/30/2015EI 341 G02914 Arena Offshore, LP 272 5/29/2015 12/30/2015EI 341 G02914 Arena Offshore, LP 272 10/22/2015 12/23/2015EI 341 G02914 Arena Offshore, LP 272 10/22/2015 12/23/2015EI 158 G01220 Fieldwood Energy LLC 80 8/18/2015 12/18/2015EI 158 G01220 Fieldwood Energy LLC 80 8/18/2015 12/18/2015EI 341 G02914 Arena Offshore, LP 272 7/14/2015 12/11/2015EI 341 G02914 Arena Offshore, LP 272 7/14/2015 12/11/2015GB 386 G10350 Shell Gulf of Mexico Inc. 2620 8/28/2015 12/24/2015GB 426 G08241 Shell Offshore Inc. 2860 9/17/2015 12/18/2015GC 903 G24197 Anadarko Petroleum Corporation 5252 9/17/2015 1/6/2016GC 903 G24197 Anadarko Petroleum Corporation 5260 9/17/2015 1/6/2016GC 726 G24179 Anadarko Petroleum Corporation 4960 9/1/2015 12/24/2015GC 561 G16753 Anadarko Petroleum Corporation 4135 8/14/2015 12/11/2015GC 609 G16764 BHP Billiton Petroleum (GOM) Inc. 4294 11/4/2015 12/11/2015GC 653 G20084 BHP Billiton Petroleum (GOM) Inc. 4235 9/23/2015 12/11/2015GC 468 G26313 Hess Corporation 3579 2/2/2015 11/13/2015GC 468 G26313 Hess Corporation 3441 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3531 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3538 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3532 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3573 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3574 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3577 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3599 2/2/2015 11/13/2015GC 512 G26315 Hess Corporation 3599 2/2/2015 11/13/2015GC 683 G18421 Anadarko Petroleum Corporation 4470 7/20/2015 11/6/2015GC 18 G04940 Whistler Energy II, LLC 760 3/20/2015 10/16/2015GC 157 G24154 LLOG Exploration Offshore, L.L.C. 2618 7/10/2015 10/9/2015GC 157 G24154 LLOG Exploration Offshore, L.L.C. 2614 7/10/2015 10/9/2015



Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

GC 157 G24154 LLOG Exploration Offshore, L.L.C. 2618 7/10/2015 10/9/2015MC 84 G08484 Freeport-McMoRan Oil & Gas LLC 3607 8/3/2015 12/11/2015MC 84 G08484 Freeport-McMoRan Oil & Gas LLC 5403 8/3/2015 12/11/2015MC 84 G08484 Freeport-McMoRan Oil & Gas LLC 5404 8/3/2015 12/11/2015MC 84 G08484 Freeport-McMoRan Oil & Gas LLC 5409 8/3/2015 12/11/2015MC 129 G10977 Freeport-McMoRan Oil & Gas LLC 5304 8/3/2015 12/11/2015MC 809 G05868 Shell Offshore Inc. 3800 9/17/2015 12/11/2015MC 762 G07957 Shell Offshore Inc. 3140 9/17/2015 12/11/2015MC 762 G07957 Shell Offshore Inc. 3145 9/17/2015 12/11/2015MC 762 G07957 Shell Offshore Inc. 3148 9/17/2015 12/11/2015MC 762 G07957 Shell Offshore Inc. 3140 9/17/2015 12/11/2015MC 762 G07957 Shell Offshore Inc. 3152 9/17/2015 12/11/2015MC 762 G07957 Shell Offshore Inc. 3140 9/17/2015 12/11/2015MC 300 G22868 LLOG Exploration Offshore, L.L.C. 5723 8/6/2015 12/4/2015MC 29 G13997 Stone Energy Corporation 2009 9/29/2015 11/13/2015MC 79 G27259 LLOG Exploration Offshore, L.L.C. 3868 7/13/2015 11/6/2015MC 934 G07975 Shell Offshore Inc. 3849 7/10/2015 10/9/2015MC 934 G07975 Shell Offshore Inc. 3875 7/10/2015 10/9/2015MC 935 G07976 Shell Offshore Inc. 3852 7/10/2015 10/9/2015MC 934 G07975 Shell Offshore Inc. 3853 7/10/2015 10/9/2015MC 935 G07976 Shell Offshore Inc. 3797 7/10/2015 10/9/2015MC 935 G07976 Shell Offshore Inc. 3851 7/10/2015 10/9/2015MC 935 G07976 Shell Offshore Inc. 3853 7/10/2015 10/9/2015MP 310 G04126 Fieldwood Energy LLC 263 8/5/2015 12/11/2015MP 310 G04126 Fieldwood Energy LLC 263 8/5/2015 12/11/2015MP 310 G04126 Fieldwood Energy LLC 263 8/5/2015 12/11/2015MP 144 G01634 Chevron U.S.A. Inc. 208 7/30/2015 10/9/2015SS 198 G12355 Renaissance Offshore, LLC 100 12/31/2015 1/15/2016SS 198 G12355 Renaissance Offshore, LLC 100 12/31/2015 1/15/2016SS 198 G12355 Renaissance Offshore, LLC 100 8/26/2015 11/20/2015SS 198 G12355 Renaissance Offshore, LLC 100 8/26/2015 11/20/2015SS 169 820 Fieldwood Energy LLC 51 7/31/2015 11/3/2015SS 169 820 Fieldwood Energy LLC 51 7/31/2015 11/3/2015SS 219 829 Renaissance Offshore, LLC 112 7/17/2015 10/16/2015SS 219 829 Renaissance Offshore, LLC 112 7/17/2015 10/16/2015ST 188 G01899 Arena Offshore, LP 143 3/13/2015 11/20/2015ST 188 G01899 Arena Offshore, LP 143 3/13/2015 11/20/2015



Surface Area

Surface Block


DepthReceived

DatePlan Final

Action Date

ST 38 G09637 Chevron U.S.A. Inc. 58 9/1/2015 11/6/2015ST 38 G09637 Chevron U.S.A. Inc. 58 9/1/2015 11/6/2015ST 23 386 Chevron U.S.A. Inc. 45 7/27/2015 10/2/2015ST 24 387 Chevron U.S.A. Inc. 53 9/3/2015 10/2/2015ST 24 387 Chevron U.S.A. Inc. 53 9/3/2015 10/2/2015ST 23 386 Chevron U.S.A. Inc. 45 7/27/2015 10/2/2015VK 989 G06898 Stone Energy Corporation 1290 1/4/2016 1/8/2016VK 989 G06898 Stone Energy Corporation 1290 1/4/2016 1/8/2016VK 915 G06894 Freeport-McMoRan Oil & Gas LLC 3250 8/3/2015 12/11/2015VK 956 G06896 Shell Offshore Inc. 3216 9/17/2015 12/11/2015VK 989 G06898 Stone Energy Corporation 1290 6/25/2015 10/9/2015VK 989 G06898 Stone Energy Corporation 1290 6/25/2015 10/9/2015VK 989 G06898 Stone Energy Corporation 1290 7/16/2015 10/9/2015VR 331 G02572 Energy Resource Technology GOM, Inc. 218 10/8/2014 12/29/2015VR 331 G02572 Energy Resource Technology GOM, Inc. 215 10/8/2014 12/29/2015


OOSA Deepwater Rig Report

OOSA DEEPWATER RIG REPORTAS OF 01/21/2016

CONTRACTOR RIG TYPE CURRENT OPERATOR LOCATION WD PROSPECT ACTIVITY

ATWOOD ADVANTAGE DRILL SHIP NOBLE MC 339 #1 4828 SILVERGATE DRILLING

ATWOOD OCEAN ATWOOD CONDOR SEMI SHELL GC 116

#A-2ST 2040 POPEYE DRILLING

BLAKE 1007 PLATFORM READY STACKED

DIAMOND OCEAN BLACK HAWK DRILL SHIP ANADARKO WR 51

#3ST2 5856 SHENANDOAH DRILLING

DIAMOND OCEAN BLACK HORNET DRILL SHIP ANADARKO GC 683

#3 4474 CAESAR TONGA DRILLING

DIAMOND OCEAN BLACK LION DRILL SHIP HESS GC 512

#SB-2 3581 STAMPEDE INSPECTION

DIAMOND OCEAN BLACK RHINO DRILL SHIP MURPHY GI 71 WAITING ON

LOCATION

DIAMOND OCEAN ONYX SEMI READY STACKED

DIAMOND OCEAN SARATOGA SEMI SHIPYARD

ENSCO 8500 SEMI READY STACKED

ENSCO 8501 SEMI COLD STACKED

ENSCO 8502 SEMI COLD STACKED

ENSCO 8503 SEMI STONE MC 29 #7 2006 CORDONA DRILLING

ENSCO 8505 SEMI MARUBENI MC 305 #2 6997 ACONCAGUA WORKOVER

ENSCO 8506 SEMI ENI MC 772 #6 5639 DEVIL'S TOWER SW WORKOVER

ENSCO MAD DOG SPAR PLATFORM BP GC 782 #A-7 4427 MAD DOG DRILLING

ENSCO PDQ PLATFORM BP MC 821 #2 6034 THUNDER HORSE WORKOVER

ENSCO DS-3 DRILL SHIP BP GC 869 #1 5100 MAD DOG INSPECTION

ENSCO DS-4 DRILL SHIP READY STACKED

ENSCO DS-5 DRILL SHIP PETROBRAS GI 91 READY STACKED

FRED OLSON ENERGY

BOLETTE DOLPHIN DRILL SHIP ANADARKO ENROUTE

H&P 100 PLATFORM STONE VK 989 1290 POMPANO DRILLING

H&P 201 PLATFORM SHELL MC 807 #A-12ST1 2945 MARS WORKOVER

H&P 202 PLATFORM SHELL GC 158 2985 BRUTUS WAITING ON LOCATION

H&P 204 PLATFORM SHELL MC 809 3798 URSA WAITING ON LOCATION

H&P 205 PLATFORM SHELL AC 857 #GA-6 7891 GREAT WHITE DRILLING

H&P 406 PLATFORM SHELL GB 427 2862 AUGER WAITING ON




LOCATION

H&P OLYMPUS N88 PLATFORM SHELL MC 763 #MB8ST 3030 OLYMPUS WORKOVER

HELIX Q 4000 SEMI ANADARKO MC 711 #5 2951 GOMEZ

HELIX Q 5000 SEMI SERVICE VESSEL

MAERSK DEEPWATER VIKING DRILL SHIP EXXON WR 584

JU 103 7142 JULIA WORKOVER

MAERSK DEVELOPER SEMI STATOIL MC 942 #4 4197 POWER NAP DRILLING

MAERSK VALIANT DRILL SHIP CONOCOPHILLIPS AC 475 #1 5142 MELMAR DRILLING

NABORS 85 PLATFORM CHEVRON GC 205 2590 READY STACKED

NABORS 87 PLATFORM CHEVRON VK 786 1751 READY STACKED

NABORS 202 PLATFORM READY STACKED

NABORS MOD 200 PLATFORM READY STACKED

NABORS HOLSTEIN SPAR PLATFORM FREEPORT MCMORAN O&G GC 644 4344 HOLSTEIN WAITING ON

LOCATION

NABORS NABORS 140 PLATFORM ENI MC 773 #A-6 5610 DEVIL'S TOWER READY STACKED

NABORS SUPER SUNDOWNER 14 PLATFORM READY STACKED

NOBLE AMOS RUNNER SEMI LLOG MC 794 #1ST 1462 CLAIBORNE DRILLING

NOBLE BOB DOUGLAS DRILL SHIP ANADARKO EB 690 #1 4202 NAVAJO WORKOVER

NOBLE BULLY 1 DRILL SHIP SHELL GI 92 DRILLING

NOBLE DANNY ADKINS SEMI TALOS GC 280 #1 2756 TORNADO DRILLING

NOBLE DON TAYLOR DRILL SHIP SHELL AC 857 #GB-6 8037 GREAT WHITE DRILLING

NOBLE GLOBETROTTER I DRILL SHIP SHELL MC 566 #1 7062 FORT SUMTER DRILLING

NOBLE JIM DAY SEMI SHELL WR 508 #6 9556 STONES WORKOVER

NOBLE PAUL ROMANO SEMI HESS GB 216 #4 1450 PENN STATE DRILLING

NOBLE SAM CROFT DRILL SHIP FREEPORT MCMORAN O&G

GC 643 #SS-2 3888 HOLSTEIN DEEP DRILLING

NOBLE TOM MADDEN DRILL SHIP FREEPORT MCMORAN O&G

MC 129 #SS-4 5330 KING WORKOVER

PACIFIC SANTA ANA DRILL SHIP CHEVRON KC 96 #2 4833 GIBSON DRILLING

PACIFIC SHARAV DRILL SHIP CHEVRON WR 634 #PN-7 6803 ST MALO DRILLING

ROWAN RELENTLESS DRILL SHIP FREEPORT MCMORAN O&G GI 61 WAITING ON

LOCATION

ROWAN RESOLUTE DRILL SHIP ANADARKO GC 726 #2ST 4655 CAESAR TONGA DRILLING

ROWAN ROWAN RELIANCE DRILL SHIP COBALT GB 959

#3ST 4843 NORTH PLATTE DRILLING

ROWAN ROWAN DRILL SHIP REPSOL KC 686 6162 LEON DRILLING




RENAISSANCE #2

SEADRILL SEVAN LOUISIANA SEMI LLOG MC 427

#2 5768 LA FEMME DRILLING

SEADRILL WEST AURIGA DRILL SHIP BP GC 743 #DC 133 6817 ATLANTIS WORKOVER

SEADRILL WEST CAPRICORN SEMI BP GC 627

#2 4314 HOPKINS DRILLING

SEADRILL WEST NEPTUNE DRILL SHIP LLOG MC 79 #1ST 3682 OTIS WORKOVER

SEADRILL WEST SIRIUS SEMI GI 71 COLD STACKED

SEADRILL WEST VELA DRILL SHIP BP MC 777 #8 5719 THUNDER HORSE NORTH DRILLING

STENA DRILLING ICE MAX DRILL SHIP SHELL NOVA SCOTIA DRILLING

STENA DRILLING STENA FORTH DRILL SHIP HESS MC 726 #4 4308 TUBULAR BELLS WORKOVER

TRANSOCEAN DEEPWATER THALASSA DRILL SHIP SHELL GI 92 INSPECTION

TRANSOCEAN C.R. LUIGS DRILL SHIP

TRANSOCEAN DEEPWATER ASGARD DRILL SHIP CHEVRON GC 640 WORKOVER

TRANSOCEAN DEEPWATER CHAMPION DRILL SHIP EXXON EB 946

#DB-3 4652 DIANA WORKOVER

TRANSOCEAN DEEPWATER CONQUEROR DRILL SHIP CHEVRON UNDER

CONSTRUCTION

TRANSOCEAN DEEPWATER NAUTILUS SEMI SHELL MC 657

#C-4 7551 COULOMB DRILLING

TRANSOCEAN DEEPWATER PATHFINDER DRILL SHIP COLD STACKED

TRANSOCEAN DEEPWATER PROTEUS DRILL SHIP SHELL UNDER

CONSTRUCTION

TRANSOCEAN DEVELOPMENT DRILLER I SEMI DRILLING

TRANSOCEAN DEVELOPMENT DRILLER III SEMI BP GC 743

#DC 801 6853 ATLANTIS DRILLING

TRANSOCEAN DISCOVERER AMERICAS DRILL SHIP READY STACKED

TRANSOCEAN DISCOVERER CLEAR LEADER DRILL SHIP CHEVRON WR 678

#PS-4 7035 ST MALO SOUTH WORKOVER

TRANSOCEAN DISCOVERER DEEP SEAS DRILL SHIP MURPHY GI 77 WAITING ON

LOCATION

TRANSOCEAN DISCOVERER ENTERPRISE DRILL SHIP GI 91 COLD STACKED

TRANSOCEAN DISCOVERER INDIA DRILL SHIP CHEVRON KC 770

#1 6555 SICILY 2 DRILLING

TRANSOCEAN DISCOVERER INSPIRATION DRILL SHIP CHEVRON GC 596

#PN-6ST 4023 TAHITI DRILLING

TRANSOCEAN DISCOVERER SPIRIT DRILL SHIP COLD STACKED

TRANSOCEAN DW INVICTUS DRILL SHIP BHP GC 609 #SS-2ST3 4294 SHENZI NORTH DRILLING

VANTAGE TITANIUM EXPLORER DRILL SHIP READY STACKED