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The Offshore Operators Committee (OOC) Oil & Gas Blockchain Consortium announced the successful completion of its first pilot leveraging blockchain technology. The pilot, developed in partnership with Data Gumbo utilizing its GumboNet™ blockchain network, proved a platform for automating produced water haulage from field reading to invoice payment. It was executed on five Equinor wells in the Bakken field in North Dakota with water logistics and transportation provider Nuverra Environmental Solutions and a midstream disposal company. It was the first industry-wide use of a blockchain-native network for produced water haulage.
“The results of this pilot prove that non-manned volume validations can trigger automated payments to vendors, and showcase the opportunities that exist for blockchain to reduce costs, increase efficiency, provide transparency and eliminate disputes in the oil and gas industry,” said Rebecca Hofmann, Chairman of the OOC Oil & Gas Blockchain Consortium. “This is just the tip of the iceberg for the potential of blockchain in our industry.”
The OOC Oil & Gas Blockchain Consortium includes 10 oil and gas member companies, Chevron, ConocoPhillips, Equinor, ExxonMobil, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Repsol and Shell, that have partnered to study and define blockchain use cases across the industry value chain to solve common pain points. The pilot’s initial results included:
Reducing current process workflow from 90-120 days to 1-7 days and 16 to 7 steps, requiring zero manual intervention;
85% of all volume measurement automatically validating against data from multiple parties, with the potential for near 100% auto validation with future enhancements;
Validations automatically triggering the execution of related invoice transactions, which reduces financial risk by giving assurance that payments coincide with field activity; and
Delivering a potential of 25% – 35% reallocation of resources versus current business process for operator and trucking company.
“It's all about companies knowing their operating expense and reducing it. The consortium use case produced results that show blockchain delivers the ability to know and lower your costs,” said Andrew Bruce, CEO and Founder of Data Gumbo. “More importantly the results show collaboration among field operations and technology experts to create a deployable and scalable solution.”
The OOC Oil & Gas Blockchain Consortium plans to continue building this solution and expand it to other commodities and services to deliver cost savings and efficiencies to its member companies and the industry as a whole. While the use case was trucking produced water, the solution represents a gateway for numerous other industry use cases, which can transform the way operators work with oilfield suppliers and vendors, and how goods and services can be validated in the field to trigger automatic payments and near-real time expense tracking.
“Blockchain offers a path to navigate previously convoluted and resource-intensive issues around trust, accuracy and the ability to verify data in the field,” said Eivind Lie Kristensen, Bakken Operations Production Leader at Equinor.
Produced water and commodity haulage invoicing and reconciliations are typically manual processes inaccessible between parties, with data self-reported or stuck in non-interoperable silos. By providing a single immutable record of truth, Data Gumbo’s GumboNet synchronizes data across parties for greater transparency that frees up working capital, reduces contract leakage and enables real-time cash and financial management, and delivers provenance.
The consortium tapped the power of blockchain for real-time data transparency, accuracy and automation of contract payments. These efficiencies are available now to return savings and value to consortium member companies.
The pilot also demonstrates that the oil and gas industry is embracing emerging technologies like blockchain. “We are always exploring new technology that will streamline oil field processes through automation, reducing cost for our company and our customers,” said Greg Tipton, CIO of Nuverra Environmental Solutions.
“The learnings derived from this pilot show that blockchain is a technology for industry collaboration in oil and gas that benefits all connected parties. The consortium looks forward to leveraging these insights to prompt further adoption and establish key blockchain frameworks and guidelines,” said JD Franke, vice-chairman of the OOC Oil & Gas Blockchain Consortium.
Source: 360 Feedwire
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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