Subsea in January

Subsea_in_AugustSubsea World News has gathered all the highlights to bring you a summarized version of the most popular articles from the previous month.

The year started off with mixed feelings about where the subsea industry will be heading in 2016. The companies continue to adjust to new market conditions as the value keeps declining each month. The stock market has been tough on all oilfield-services providers, bringing them to even up to a decade-low, in some cases even more.

Some players have already announced new rounds of layoffs, while the rest is still to be known when the subsea majors present their full-year 2015 earnings and outlook for this year. The giant Schlumberger had to let go additional 10,000 workers and Aker Solutions is forced to cut 900 more MMO jobs in Norway after loosing the bid for Statoil job.

Nevertheless, contract awards seem to be slowly picking up. McDermott will install subsea umbilicals and flowlines for Anadarko’s Phase II development of the Caesar/Tonga field, Wood Group scooped Prelude FLNG job in Australia, and FMC will deliver subsea production systems for Woodside’s Western Flank Phase 2 (GWF-2) project. Other notable deals include master service agreements Norway’s Statoil has made with Aker Solutions and OneSubsea, Johan Castberg FPSO concept study for Aker Solutions, and approximately $117 million in contracts for SapuraKencana.

Also in January, NHO and Technip Norway have gone to court with Norway’s offshore union, Industri Energi (IE) and the Norwegian Confederation of Trade Unions (LO) claiming the “breach of peace obligation” following the boycott notice IE handed in to Technip Singapore after the company rejected the collective agreement for its offshore workers engaged on the Norwegian shelf.

In addition, previously announced Fugro’s sale and leaseback agreement for its geotechnical vessels Fugro Scout and Fugro Voyager has been officially wrapped up, bringing them close to €100 million in cash, which, according to the company, will be fully applied to debt reduction. News about other vessels have also drawn attention of our readers, especially the arrest of the deepwater pipelay construction vessel “Jascon 18” in Singapore.


For the month of January, our 10 most-read articles were:

Oil services company, Subsea 7, saw its stock price hit a five-year low after dropping below NOK 55 on Wednesday. Despite the latest job offshore Egypt, the shares have dived approximately 60 percent since 2011 form NOK 150 (NOK 154.9 in April 2012).
Photo: Sea Trucks
The deepwater pipelay construction vessel “Jascon 18” was arrested last week on behalf of a shipyard in Singapore. The 150-meter vessel was built at the Kwong-Soon shipyard in Singapore and, as earlier reported, scheduled for delivery in Q3 2015.

                                                                Subsea 7 Sinks to Five-Year Low                                           Subsea Vessel Arrested in Singapore 

DeepOcean Axes 90 Jobs
Norwegian subsea player DeepOcean is reportedly letting go up to 90 of its workers as it adjusts to lower activity levels. Switching its focus to renewables in the past few months hasn’t been enough to compensate the slowdown in the oil industry.
Court to Decide on Technip Boycott Case in Norway
Norway’s offshore union, Industri Energi (IE) and the Norwegian Confederation of Trade Unions (LO) have been taken to court by NHO and Technip Norway for the alleged “breach of peace obligation”, after IE delivered a boycott notice to Technip Singapore PTE.

                                                                              DeepOcean Axes 90 Jobs                                                    Technip Takes IE to Court

Photo: Fugro
Dutch subsea and survey specialist, Fugro, has struck a deal with ICON Investments for sale and leaseback of its geotechnical vessels Fugro Scout and Fugro Voyager. The agreement is for an initial lease term of 5 years with up to 12 years extension option.
Schlumberger Sees Red Ink and Axes 10,000 More Jobs
Oilfield services major, Schlumberger, has further reduced its overall workforce by some 10,000 employees, and booked a quarterly net loss in the three months ended December 31. This brings the number of layoffs up to 30,000 together with previous job cuts this year.




                                  Schlumberger Axes 10,000 More                                 Fugro Strikes Double Vessel Deal

Subsea factory (Illustration purpose only), Photo: Statoil
Statoil Petroleum has signed Master Service Agreements with Aker Solutions and OneSubsea Processing. The agreements signed form the basis for potential new EPC contracts (engineering, procurement and construction) for subsea equipment in the medium term future.
Lay Vessel 105 and North Ocean 102 are docked to support operations at McDermott’s spoolbase facility in Gulfport, Mississippi.
McDermott has won a subsea umbilical and flowline installation contract by Anadarko in support of its Phase II development of the Caesar/Tonga field located in the U.S. Gulf of Mexico. Caesar/Tonga Phase II is being developed as a subsea tieback to the Constitution spar.

                                                          Aker, OneSubsea Agree with Statoil                                  McDermott Scoops Anadarko Gig

Aker Solutions to Cut Up to 900 MMO Jobs
Aker Solutions notified its MMO employees across Norway of necessary steps to reposition the business and enhance competitiveness in a market with unprecedented challenges. Depending on future work levels, as many as 900 permanent positions may be impacted.
Wood Group Lands Prelude Deal (2)
Wood Group has secured a three-year contract with Shell Australia’s Prelude, FLNG project. The Contract focuses on development and implementation of the flexible riser integrity management plan, as well as inspection, monitoring, testing and on call engineering support.

                                                               900 Must Go at Aker’s MMO                                  Wood Group Lands Prelude Deal

Subsea World News Staff
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