May 24, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico fell this week as one previously working jackup came off contract and was cold stacked.  Total fleet utilization is 61.5% with 75 of 122 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs, is virtually unchanged at 89.3% with 75 of the 84 units under contract. 

Total jackup utilization is 50% with 41 of 82 jackups under contract, while marketed utilization is 82% with 41 of 50 rigs contracted.

Total floating rig fleet utilization is still at 87.5% with 33 of 34 floaters under contract, with all 26 semis and seven marketed units under contract for marketed utilization of 100%.  The lone idle unit, currently enroute to the area, is not marketed in the U.S. Gulf.

Within the platform rig fleet, utilization fell slightly as one rig was released.  Overall, 20 of 51 rigs are contracted for utilization of 39.2%, while marketed utilization is 52.6%, with 20 of 38 rigs under contract.  Finally, inland barge fleet utilization remained at 41.4% with 24 of 58 units under contract, with marketed utilization staying at 60% with 24 of 38 units under contract.

Headline News

Work continues on BP’s oil spill leak coming from well MC 252 in the Gulf of Mexico that occurred more than a month ago.  Latest technology to contain the well includes the plan to use a “top kill” operation, in addition to subsea efforts focused on well intervention techniques via a blow out preventer.  The “top kill” method involves the injection of heavy drilling fluids into the well to stem the flow of oil and gas.

Operator News

Crimson Exploration, Inc. announced that Carl Isaac has been appointed Senior Vice President of Operations.

Saratoga Resources, Inc. has entered into a 20-year seismic licensing agreement with Seismic Exchange, Inc. for 42.88 blocks of 3-D seismic data, located in the state waters of Louisiana.

Driller News

ENSCO has received contract extensions from Apache that will keep jackups ENSCO 86 and ENSCO 87 with the operator thru 2010.  The new term for ENSCO 86 is effective from July 31, while the new period for ENSCO 87 began May 23.  ENSCO 86 is currently working in Vermilion 78, and ENSCO 87 just began work in Main Pass 296. The rig likely will also have work in Main Pass 140 and in the West Delta area later in the year.  The two extensions now give ENSCO five of seven marketed jackups in the Gulf with contracts that run through 2010. ENSCO 75, also with Apache, and ENSCO 82 and ENSCO 68, both with Chevron are the other three.

Seahawk Drilling reports jackup Seahawk 2504 will finish its contract with Mariner Energy around the end of May.  At present, no follow-up work is in place, but Seahawk intends to take the rig to West Cameron 38 for seven to ten days of surveys and repairs.  After that, the company expects to have work for the rig.  Seahawk also will likely have multiple contracts signed possibly this week for idle jackup Seahawk 3000.  Repairs to the rig have been pushed back slightly and are now expected to be completed by June 10.  The company’s only jackup affected by the recent permit moratorium appears to be the Seahawk 2004.  It is understood that Dynamic Offshore does not have a permit secured for its planned well in Vermilion 196.  As a result, the rig will likely go idle for a brief period after it completes its current contract with Arena Offshore around the end of the month.

Pride International newbuild drillship Deep Ocean Ascension has reached Curacao and after a crew change will continue its voyage to the U.S. Gulf.  The rig is expected to arrive offshore Galveston later this week, after which it will complete acceptance testing prior to starting its five-year contract with BP in August.  The next delivery for Pride will be the drillship Deep Ocean Clarion, scheduled to be completed by Samsung Shipyard in the third quarter this year.  It also has a five year contract in the U.S. Gulf with BP starting in the first quarter of 2011.  Both newbuilds are rated to drill in up to 12,000 fsw and have rated drilling depths of 40,000 feet.

Noble Drilling newbuild semi Noble Danny Adkins is scheduled to begin its 1,348-day contract with Shell by the end of May.  The rig’s first assignment will be development drilling in Shell’s Perdido field in Alaminos Canyon 857.  The field’s SPAR platform lies in 7,817 fsw and is the deepest producing facility in the world.  The structure began production in March and will also process production from the Great White, Silver Tip and Tobago fields.  To date, five development and one injection well have been drilled in the fields, although it is expected that ultimately 35 wells will be drilled between the four fields.  The SPAR is designed to process 100,000 b/d of oil and 200 mmcf/d of natural gas.

Rowan has finished its contract with Devon Energy with jackup Rowan Alaska in Eugene Island 337 and the contractor has decided to cold stack the rig.  As previously reported, two potential work locations for the jackup were not approved for hurricane season, leaving it with no follow-up work.  The rig will join the Cecil Provine as Rowan’s only two cold stacked units.

Service/Supply News

Oceaneering International, Inc. was the high bidder to acquire the DMT Sapphire from an affiliate of Deep Marine Technology, Inc., under a bankruptcy-sponsored auction proceeding.  The bid was $16.5 million.

Technip has been awarded a contract by Eni for the Kitan field development project in the Timor Sea off the Australian coast.

May 17, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico was unchanged this week. Total fleet utilization is now 62.3% with 76 of 122 mobile rigs under contract or committed for work. Marketed utilization, which excludes those cold stacked and other non-marketed rigs, remains at 89.4% with 76 of the 85 units under contract.

Total jackup utilization is 51.2% with 42 of 82 jackups under contract, while marketed utilization is 82.4% with 42 of 51 rigs contracted.

Total floating rig fleet utilization is still at 87.5% with 33 of 34 floaters under contract, with all 26 semis and seven marketed units under contract for marketed utilization of 100%. The lone idle unit is not marketed in the U.S. Gulf.

Within the platform rig fleet, 21 of the 51 rigs in the fleet are contracted for utilization of 41.2%, while marketed utilization is 55.3%, with 21 of 38 rigs under contract. Meanwhile, inland barge fleet utilization fell slightly as one previously working rig went idle. Current fleet is 41.4% with 24 of 58 units under contract, while the 24 of 38 marketed units under contract result in utilization of 60%.

Headline News

BP continues its work to contain the oil spill leak coming from well MC252 in the Gulf of Mexico.  A riser insertion tube tool (RITT) containment system was put into place in the end of the leaking riser on May 16. Operations began during the day to allow oil and gas to flow through the tool up to the drillship Discoverer Enterprise on the surface 5,000 feet above.

Produced oil is being stored on the drillship while produced gas is being flared. It is expected that it will take some time to increase the flow through the system and maximize the proportion of oil and gas flowing through the broken riser that will be captured and transported to the drillship.   The RITT is a fabricated from 4-inch diameter pipe, fashioned to allow one end to be inserted into the broken riser pipe that is the source of the main oil flow from the Mississippi Canyon  252 well, and the other to be connected to a drill pipe and riser from the Discoverer Enterprise. The RITT allows the injection of methanol to mitigate against the formation of gas hydrates.  Meanwhile, the IADC is seeking a reprieve for drilling to continue in the shallow water Gulf of Mexico after a federal mandate to stop all new drilling in the Gulf of Mexico for three weeks.

Operator News

Noble Energy, Inc. announced the Deep Blue exploration well on Green Canyon 723 reached TD 32,684 feet.  The well found hydrocarbon pay in multiple Miocene intervals.  Noble Energy and partners are proceeding to sidetrack the well to determine the extent and commerciality of the pay zones encountered.  Noble Energy operates the well with 33.75% interest; BHP Billiton Petroleum holds 31.875%; Statoil USA E&P, Inc. holds 15.625%, Murphy Oil 9.375%, and Samson Offshore 9.375%.  Sidetrack operations are expected to take up to 45 days.

EXCO Resources, Inc. has closed the purchase of Common Resources, LLC jointly with BG Group, plc. The total purchase price paid at the closing was approximately $441.6 million.

ConocoPhillips announced that Jeff Sheets, currently Senior Vice President, Planning & Strategy, will become Senior Vice President, Commercial and Planning & Strategy.

Crimson Exploration reported production for the first quarter of 2010 was 2.8 BCFe compared to production of 4.3 BCFe in the first quarter of 2009. The decrease in production was primarily due to natural field decline, limited capital expenditure activity in 2009 and the first quarter 2010, and the sale of the company’s Southwest Louisiana properties in December 2009.

Swift Energy Company announced that Greg Matiuk and Bruce H. Vincent were re-elected to serve three-year terms on the company’s Board of Directors at its annual meeting of shareholders.

Driller News

Apache has extended its contract with Rowan jackup Cecil Provine for another 60 days effective from May 1.  The rig is currently working for the operator in Grand Isle 40.  While the new term keeps the rig working through June, it is expected Apache will ultimately keep the rig working for the remainder of 2010.  Meanwhile, jackup Rowan Alaska is scheduled to complete its work with Devon Energy this week.  As of now, Rowan has no follow-up work for the rig in place.  It is understood that two potential follow-up locations were not approved to be drilled during hurricane season.

ENSCO will move jackup ENSCO 87 to Main Pass 296 in the next day or so for a sidetrack with Apache.  Drilling is expected to last around 45 days, after which it is believed the rig will go to Main Pass 140.  The rig’s current term with Apache ends May 22, so it is expected that an extension will be in place this week.  Also, the company reports that jackup ENSCO 99 will now be with ExxonMobil until the first week of June as it will complete the current well in the Grand Isle area.  Upon completion, the rig goes to West Delta 45 for a 30-45 day well with Nexen Petroleum, and it is further understood that ENSCO will likely have follow-up contracts signed for the rig shortly.  Details will be provided as they are made available.

Spartan Offshore reports it has been awarded a contract from Phoenix Exploration for a 40-day well in West Cameron 269.  Drilling will be carried out by the Spartan 151 once it completes the current well in Eugene Island 53 with Mariner Energy in the first-half of June.  A previously awarded contract from Century Exploration for a 30-day well in the Breton Sound area will now be drilled in August after Phoenix finishes its well.  The company also says it has about 14 days left on the Spartan 303 contract with Marlin Coastal.  The operator is now completing its well in West Cameron 132.  It is believed Spartan may have a follow-up contract for the rig shortly.  Finally, the Spartan 202 has just began its 14-day workover with Pisces Energy in South Timbalier 204.  The rig will go next to Marlin for a workover program after Pisces.

BP has spud its second relief well in Mississippi Canyon 252.  Transocean semi Development Driller II spud the well May 16 and will attempt to intercept the original wellbore above the oil reservoir at approximately 16,000 feet.  BP opted to drill the second relief well as a backup should the company encounter problems reaching the target with the first well, currently being drilled by sister rig Development Driller III.  Drilling operations are expected to take around 90 days.

Diamond Offshore semi Ocean Victory has spud the final well of a two-well contract with Newfield Exploration.  Drilling in Garden Banks 293 began over the weekend and is expected to last for 60 days to mid-July.  Upon completion of the well, the rig will have a contract gap until early November when it will return to its contract with ATP O&G.  That term will last around 90 days after which the rig has another 120-day gap before it completes its final 75 days with ATP next June.

Jackup Seahawk 2001 completed its contract for Energy XXI in South Timbalier 22 and is now on location in High Island  176 for an option well with Castex Offshore.  Operations will keep the rig busy to mid-July. 

Diamond Offshore has received a one-year contract from OGX for work off Brazil using jackup Ocean Scepter.  Work is scheduled to begin in early December.  The rig is currently working on a six-well contract for Arena Offshore in the U.S. Gulf that is scheduled to run into early August, although rumors are that the operator might want to extend the contract for another well.

Service/Supply News

McDermott International, Inc. announced that Perry L. Elders has been elected Chief Financial Officer of its subsidiary, J. Ray McDermott, S.A.. In this role, Elders will have primary responsibility for all financial functions.

May 10, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico fell this week as one working rig went idle, one newbuild, contracted jackup was delivered and one idle drillship got under tow to the Gulf from West Africa.  Total fleet utilization was 62.3% with 76 of 122 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs, fell to 89.4% with 76 of the 85 units under contract.

Jackup utilization inched down to 51.2% with 42 of 82 jackups under contract, while marketed utilization was 82.4% with 42 of 51 rigs contracted.  The Hercules 253 completed a contract and was moved to a stack location, while Rowan took delivery of newbuild Rowan EXL-I, which will begin work for McMoRan E&P later this month.

Total utilization for the floating rig fleet dropped to 87.5% with 33 of 34 floaters under contract.  The lone idle unit is Aban Abraham drillship, which began tow from West Africa to the U.S. Gulf.  However, the rig will not be marketed in the region, which kept marketed utilization at 100% with 26 semis and 7 drillships under contract.

Headline News

Speculation continues to abound in regards to the Interior Dept.’s recent announcement that no new offshore drilling permits would be approved for essentially the rest of the month, in response to BP’s rig disater.  Some reports indicate that any permits approved prior to April 20 will be honored and the rigs able to move to those locations, but that no rig would be allowed to move if the permit was approved after April 20.  While that has yet to be verified, it is understood that Approved Permit for Maintenance (APM) requests such as workovers, P&A’s, etc are not affected by the ruling.  Beyond these two issues, however, no one seems to be completely clear on the full scope.  However, at this point most believe that activity will be affected minimally as most operators are appearing able to shift work around enough to enable their rigs to remain working.  Clearly, only time will tell how this ruling will ultimately affect the rig fleet, but it appears to still be too early in the process for any real effect to be felt.  The Minerals Management Service (MMS) has concluded inspections on the 30 rigs currently operating in the deepwater Gulf.  Reports are that no major safety violations were found.  The agency is now inspecting the 47 deepwater production facilities in the Gulf, with completion expected in about a month.   Meanwhile, BP’s attempt to contain the well continue with the company trying to place a containment dome over the location and by trying a “top kill” option.  Last week the company tried placing a containment dome over the well, but the effort turned out to be unsuccessful due to a build-up of hydrates within the dome.  Now the company will try to place a second, smaller containment dome that is designed to mitigate hydrate build-up. 

Operator News

Pemex expects to spud its first exploratory well in the offshore Perdido area in October or November this year.  If the name Perdido sounds familiar, it should.  The field traverses the Mexico-U.S. marine border in the western Gulf of Mexico and it’s where Shell began production on the U.S. side of the field earlier this year.  The Shell facility sits in 8,038 fsw, the world’s deepest to date.  Pemex’s Maximino-1 well will be drilled in nearly 10,000 fsw, it is thought by Seadrill semi Petrodrill III.  Historically, little deepwater drilling has taken place off Mexico and Pemex desires to step up that part of its operations.  However, given the operator’s lack of expertise in this area, the company is seeking ways to increase the pace within the current legal framework.  Nevertheless, the company is increasing its deepwater investment in the coming years.  Expenditures are expected to increase from $706 million this year to $989 million in 2011 and then to $1.39 billion in 2012.  Pemex’s goal is to have 35 wells drilled by the end of 2012, up from the 14 already drilled or currently being drilled.  Pemex estimates that as much as 50% of its prospective hydrocarbons lie in deepwater.     

ATP Oil & Gas reported production commenced on March 28 from the Atwater Valley 63 #4 well through the ATP Titan. Nabor’s platform Rig 202 has been placed on the ATP Titan and completion operations on the MC 941 #3 well are expected to begin next week.

Stone Energy reported its Amberjack well on Mississiippi Canyon 109 flowed more than 1,700 boe/d; three more wells are planned for the area this year.

Energy Partners, Ltd. (EPL) reported production for the first quarter of 2010 averaged 15,716 boe/d and natural gas production averaged 50.9 mmcf/d.

Murphy Oil reported the DC4 well in DeSoto Canyon was drilled to TD 13,195 feet and encountered 156 feet of oil pay in three zones. Murphy is the operator of DC4 with a working interest of 64.2%.  The DC4 well, offsetting last year’s natural gas discovery at Dalmatian, shows oil upside in that block that may hold additional prospective potential.

Driller News

Driller Earnings...

Transocean has reported a net income of $677 million on revenues of $2.602 billion for the first quarter of 2010.  That compares to net income of $942 million on $3.118 billion of revenue for the same period in 2009.  Also, Rowan Companies reports it had a net income of $64.6 million on revenues of $432.4 million for the three months ended March 31, 2010.  That compares with net income of $131.7 million on revenues of $494.8 million for the same period in 2009.  Earnings for the current quarter were $93.3 million excluding an inventory charge at the company's manufacturing facility.  Meanwhile, Seahawk Drilling says it had a net loss of $22.3 million on revenues of $25.3 million for the first quarter of 2010, versus a net income of $13.1 million on revenues of $115.7 million for the same period in 2009.  Parker Drilling reports it had a net loss of $2.1 million on revenues of $157.6 million compared to a net income of $2.1 million on revenues of $173.9 million for the first three months of 2009.  The company says first quarter 2010 revenues declined 10 percent from the last quarter of 2009.  Finally, Atwood Oceanics announced that it earned net income of $66,755,000 on revenues of $159,069,000 for the quarter ended March 31, 2010.   That compares to net income of $56,427,000 on revenues of $140,652,000 for the same period in 2009.

Rowan has taken delivery of the first of four newbuild LeTourneau Super 116-E design jackups from the Keppel FELS yard in Brownsville, TX.  The Rowan EXL-1 was delivered on time and will begin a 385-day contract with McMoRan E&P around the middle of the month.  It will begin the program with an 85-day well in Brazos A-23, followed by a 300-day well in Eugene Island 223.  The work will keep the rig busy to June 2011.  The EXL class jackups are rated to drill 35,000-ft wells in up to 350 fsw.  The Rowan EXL-II is scheduled for delivery in mid-August while the final two will be delivered in 2011.

Diamond Offshore completed the first of a two-well contract for Shell with jackup Ocean Spartan.  Operations in Brazos A-19 were wrapped up late last week, but the rig has been moved to a standby location in West Cameron 184 while Shell determines whether it will be able to move the rig to the second location in the Mobile Bay area.  Shell has a 40-day well abandonment scheduled for the location.  No indication has been given as to when a decision will be made.  Diamond has also moved semi Ocean Endeavor to the stack location in West Cameron 184 after it recently completed a sublet well for ExxonMobil.  Lastly, jackup Ocean Titan is now on location in South Marsh Island 69 for ANKOR Energy after finishing work in nearby South Marsh Island 27.  The rig’s current term for ANKOR runs to mid-June, but reports are that the term is likely to be extended.  Details will be reported as they become available.

Jackup Hercules 253 completed work for Contango Operators in Matagorda Island 617 late last week.  The rig is now stacked in West Cameron 497 while Hercules awaits further work for the rig.  The company is understood to be discussing a follow-up contract, but no agreement has been reached yet.  Contract details will be reported once negotiations are concluded.  Meanwhile, jackup Hercules 257 finished its contract with Hall-Houston in West Delta 89 and is now on location in South Timbalier 21 for a 14-day workover with Energy XXI.

Aban Offshore drillship Aban Abraham is now enroute to the Gulf of Mexico from Equatorial Guinea.  The rig is scheduled to undergo shipyard work here as it reportedly will then be bid for work in South America.  The rig should arrive here in June.

Service/Supply News

PHI, Inc. has entered into a Letter of Intent with TAM Empreedimentos e Participações S/A to form a joint venture company to provide helicopter transportation to the expanding Brazilian oil and gas offshore market.

Foster Wheeler AG has been awarded a project management consultancy contract by the Abu Dhabi Co. for onshore oil operations for the Bab field expansion and the development of the Qusahwira field in the U.A.E.

May 3, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico rose slightly this week as a previously idle rig received a contract.  Total fleet utilization was 63.3% with 76 of 120 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs cracked the 90 percent barrier, standing at 90.5% with 76 of the 84 units under contract.

Jackup utilization rose to 51.9% with 42 of 81 jackups under contract, while marketed utilization hit 84% with 42 of 50 rigs contracted.  A new contract for jackup ENSCO 68, currently enroute to the Gulf from Venezuela, accounted for the bump in the numbers.

Total and marketed utilization for the floating rig fleet remained at 100% with 26 semis and 7 drillships under contract or committed for work.  Diamond Offshore semi Ocean Endeavor completed work for ExxonMobil and will be towed to a stack location, but the rig remains under contract with Devon Energy until further sublet work can be secured.

Headline News

Fallout continues as a result of the oil leak from the Deepwater Horizon blowout.  Speculation is what, if any, the immediate affect will be on drilling activity in the Gulf.  While the prospects of a large-scale shutdown of any kind is very low, a slow down or stoppage of permit activity/approvals and/or the possibility that some rigs within or around the spill area will be evacuated are the main concerns at the moment.  Should the latter occur for any extended period of time, the possibility of some operators declaring force majeure and canceling rig contracts is a real fear within the drilling contractor ranks.  To date, the only known rig evacuation occurred when ExxonMobil evacuated non- essential personnel from Diamond Offshore’s Ocean Endeavor semi for a few days, but workers have since returned to the rig. 

The 41st Annual Offshore Technology Conference opened today at Houston’s Reliant Park.  More than 2,532 companies will showcase their goods and services in nearly 560,000 square feet of exhibit space.  Attendance is expected to surpass last year’s final figure of 67,721 persons from 134 countries.

Operator News

W&T Offshore, Inc. has acquired of all of the interests of Total E&P USA, Inc. in three blocks located in Mississippi Canyon 242, Viosca Knoll 822 and 823 for a purchase price of $150 million.

Apache Corporation reported first-quarter net income surged to $705 million or $2.08 per diluted common share as liquid hydrocarbon production climbed to a record 300,557 barrels per day, up 8% from the prior-year period.

McMoRan Exploration Company announced that James R. Moffett will be named to the additional role of President and Chief Executive Officer following the retirement of Glenn A. Kleinert. James R. Moffett and Richard C. Adkerson will continue as Co-Chairmen of the Board of Directors.

Cobalt International Energy, Inc. has been notified by Anadarko Petroleum (operator) that the appraisal well Heidelberg # 2 on Green Canyon 903 will be permanently plugged and abandoned due to mechanical problems. Anadarko plans to drill a substitute appraisal well on the block. Drilling operations will commence as soon as possible with the ENSCO 8500 which is currently on location.

Contango Oil & Gas Company announced its Dude prospect on Matagorda Island 617 and Paisano prospect on Vermillion 155 are both dry holes. The company is currently drilling the Eloise South prospect on Eugene Island 10 and completing the Nautilus well on Ship Shoal 263.

Driller News

ENSCO has received a six-month extension with Chevron for jackup ENSCO 82.  The new term now keeps the rig locked up for the remainder of the year.  The jackup is currently working for the operator in Eugene Island 276.  Chevron also recently extended its contracts on three Hercules Offshore jackups (see related story in this issue).  Meanwhile, Chevron has also signed up jackup ENSCO 68 for a seven-month contract that will keep that rig working through 2010.  The rig will begin work in Main Pass 298 in early June once it arrives from Venezuela and undergoes three-to-four weeks of clearing customs and inspections.  It is currently scheduled to arrive in the Gulf on May 10.

Hercules Offshore has inked new contracts or extensions for four of its U.S. Gulf jackups.  First, Chevron has agreed to six-month extensions on the Hercules 120, Hercules 173 and Hercules 350, now keeping all three units under contract through the end of the year.  Meanwhile, Energy XXI has signed a deal to pick up the Hercules 257 for a 14-day workover in South Timbalier 21.  The rig will complete operations on its current well for ADTI/Hall-Houston in West Delta 89 this week.  At the same time, the Hercules 253 is expected to complete its ADTI turnkey well for Contango Operators in Matagorda Island 617 this week.  As of now, Hercules does not have follow-up work in place for the rig, but the company says it expects to have a new contract in place for the rig shortly.

Diamond Offshore semi Ocean Endeavor has completed a sublet well for ExxonMobil in Mississippi Canyon 211.    Some personnel had been evacuated from the rig for a few days in the aftermath of the Deepwater Horizon accident, but all are now back and anchors are now being pulled after which the rig will be moved to Diamond’s stack location in West Cameron 184.  It was previously believed that ExxonMobil would return to the Keathley Canyon area for another sublet well with the rig, but the operator has now opted not to drill the well.  The semi is under contract with Devon Energy through June 2011, although with the recent sale of its properties it is believed Devon will seek further sublet opportunities for the remainder of the contract term.

Pemex has opened bids for the first of five jackup tenders.  Sinvest AS, through its Iner Servicios/FirstDrill group submitted the low bid using the Deep Driller 6.  Assuming the bid passes Pemex’s final approval, scheduled for ruling May 20, the $124 million bid will result in a day rate of $113,499 for the jackup.   Drilling on the 1,039-day contract is scheduled to begin July 20.  The 350-ft IC jackup, which was delivered in 2008, is currently idle in the U.A.E.  Pemex will open bids for another four jackup contracts on May 26, with terms ranging from 254 to 465 days.

Driller Earnings…

Pride International reports it had a net income of $73 million on revenues of $362.8 million for the three months ended March 31, 2010.  The figures compare to a net income of $158.9 million on revenues of $451.9 million during the same period in 2009.  Meanwhile, Hercules Offshore says it had a loss from continuing operations of $16 million on revenues of $150.8 million for the first quarter of 2010, compared with a loss from continuing operations of $4.5 million on revenues of $223.5 million for the first quarter of 2009.

Service/Supply News

Cuming Corporation, a leader in the design and manufacture of technologically advanced syntactic foam flotation products and insulation materials for the offshore oil and gas industry, will be acquired by Houston-based Deep Down, Inc.

Baker Hughes, Inc. has closed its acquisition of BJ Services Company  Pursuant to the previously announced merger agreement, each BJ Services stockholder will receive 0.40035 shares of Baker Hughes common stock, par value $1.00 per share, and $2.69 in cash in return for each share of BJ Services common stock held.

Smith International, Inc. announced that the agreement to acquire @Balance, B.V. from Shell Technology Ventures Fund 1 B.V. closed on April 15. At Balance provides managed pressure drilling (MPD) services using its patented technology.

Argus Subsea, which manufactures subsea products for time-critical fields, announced the introduction of the AZ-15J subsea tree and wellhead system. Specially designed for jack-up mobile drilling units, the Argus AZ-15J is a purpose-built system that allows operators to drill and complete wells up to 15,000 PSI working pressure without special riser systems or temporary abandonments.

SensorTran, producer of an advanced distributed temperature sensing (DTS) system, is opening a sales and service support office in Houston. The new office serves as the strategic hub for SensorTran’s Oil & Gas business, and will accommodate key senior executives, sales managers and technical support personnel.

Allis-Chalmers Energy, Inc. announced the appointment of Carlos Etcheverry as President of its Drilling and Completion segment.