RIGAMAROLE

FALL 2014 ISSUE NO. 33 RIGAMAROLE FALL 2014 ISSUE NO. 33 A LETTER FROM MARC EDWARDS, TURNS TEN PRESIDENT AND CHIEF EXECUTIVE OFFICER

RIGAMAROLE

02 AN EXTRAORDINARY ENDEAVOR 42 BARGES TO BEHEMOTHS Early in 2014 the Ocean Endeavor was scheduled Diamond Offshore traces the Company’s begin- With this issue, Diamond Offshore commemorates ten years of publishing to move to Romanian waters, in anticipation of nings to the earliest days of the offshore drilling Rigamarole in its current format. This anniversary provides an apt planned ExxonMobil and OMV Petrom exploration industry. Today, after decades of innovation and occasion to reflect upon what has happened in our industry during the wells in the area. But before any drill bit could bite opportunistic multiple-company and rig acquisi- into the silty sea bottom, the rig had to go through tions, Diamond Offshore provides contract drilling past ten years, and more importantly, what might lie ahead. a series of carefully planned, perfectly executed services to the energy industry around the globe steps to get there. and is a leader in deepwater drilling. From a personal perspective, this edition is of particular Diamond’s talented employees’ contribution is so relevance as it’s my first since joining Diamond Offshore important. This is what contributes to the Diamond as President and CEO in March of this year. I have Difference and will get us across the line first. We will communicated my thoughts regularly with the Diamond emerge from this cycle with an even brighter shine. 24 A FLEET TO MATCH THE MARKETS 48 ENDEAVOR(ING) TO SUCCEED Ten years ago, Diamond Offshore’s approach to The shipyard phase of the Ocean Endeavor organization since I came on board, but I’ll take the As we look to the future, it is also important that fleet building was much as it is today. The com- conversion from mid-water semi to ultra-deep- opportunity once again to share what I have seen in my we don’t forget the past and the efforts that many pany looks for the best opportunities to upgrade water super-rig has been completed on time and first few months. Let me start with the people I have have undertaken to get us into the position of relative and renew its inventory. under budget. met, both on the rigs and in our offices around the world. corporate strength. In this anniversary edition of We have a passionate workforce that takes pride in Rigamarole, we feature some past stories from over what we do; we have people who come to work to make the years that are still relevant today. Our lead article a difference; and we have employees who care about discusses the Ocean Endeavor’s long journey to 30 ULTRA-DEEP ENDEAVOR 52 THE OCEAN MONARCH Arrival of the Ocean Endeavor at Keppel Fels After a two and a half year massing of power their colleagues, their customers and the environment reach the Black Sea where it is currently working for shipyard in Singapore in May 2006 marked the and might, a newly upgraded Victory Class semi, in which we work. They care about building on the ExxonMobil. In addition to telling the tale of how the rig beginning of a major two-year upgrade that will the Ocean Monarch, joins the Diamond Offshore “Diamond Difference.” was squeezed through the Bosphorus Straight, we revisit prepare the semisubmersible for service in the ultra-deepwater fleet. Everyone is aware of how difficult the offshore its delivery from our rig upgrading program, along with world’s growing ultra-deepwater drilling markets. drilling market has become. We are facing an its sister rig, the Ocean Monarch. We take a look at our unprecedented wave of newbuild drillships coming acquisition of the Ocean Courage and then conclude with to market, the majority of which are uncontracted. a current summary of our newbuild program. 58 GAINING COURAGE Our clients are significantly cutting back on offshore This issue also represents the final publication of 36 TAMING THE LOOP Diamond Offshore wins a bid for a 10,000- ft., new- The Gulf of Mexico’s infamous Loop Current has build DP semisubmersible fresh out of the shipyard. spending as their shareholders demand better returns. Rigamarole as a traditional printed magazine. In its earned some nefarious nicknames. But signifi- The rig is expected to begin work in the GOM in But we know our business is cyclical, and we have place will be similar content, but it will be designed cant oil and gas reserves lie beneath it. Favorable early 2010. successfully weathered storms before. This is where to live online: a format that is compatible with how commodity prices and escalating world demand the Diamond Difference is so important. We have the most of us enjoy our reading these days—on a tablet, for hydrocarbons are nudging operators into this best maintained assets and the best trained people. smartphone, or internet browser. This will allow us to Proof positive of this is that in Q2 of this year we only had update content on a more frequent basis, much like a powerful force of nature with which the industry 64 SETTING SAIL must reckon. Over the next year, Diamond Offshore will launch 52 days of unplanned downtime across a fleet of newspaper website. Your comments and feedback are three ultra-deepwater drillships and two deepwa- 41 active assets. We collectively strive for a workplace certainly of interest to us, so the online version will ter semisubmersible rigs. where no one gets hurt and uptime is best in class. allow you to submit feedback on specific articles. We want to provide a superior level of customer service We hope you enjoy this issue and future editions of that makes Diamond the preferred vendor of choice. Rigamarole and that they will inspire your continued So quite a tall ask then? Not really when we are interest in Diamond Offshore. I am also looking forward already close. Which is why each and every one of to what the next ten years bring to our great company. RIGAMAROLE is published for and about the Managing Editor Darren Daugherty Contact Diamond Offshore Drilling, Inc. people and customers of Diamond Offshore. Design & Production Rigsby Hull PO Box 4558, Houston, Texas 77210 USA For more info, write us, call or visit Printing Cereus Graphics P : 281 492 5300 www.diamondoffshore.com. E : corporatecomms @ dodi.com RIGAMAROLE No . 33 3 In 2012, beneath the deep waters of the Black Sea, HOW ExxonMobil and OMV Petrom DO YOU made a gas discovery off the coast of Romania. CHOP The Ocean Endeavor— outfitted with the latest A 376 drilling technologies and FOOT- equipment—had to be brought to the area in order TALL to confirm the find’s RIG IN potential. But before any drill bit could bite into the HALF silty sea bottom, an ? unfathomable question had to be answered.

4 DIAMOND OFFSHORE RIGAMAROLE No . 33 5 RIGAMAROLE TURNS TEN

WRITTEN BY SCOTT REDEPENNING PHOTOGRAPHY BY CHRIS SHINN and RICH CROWDER

AN EXTRA ORDINARY ENDEAVOR

6 DIAMOND OFFSHORE RIGAMAROLE No . 33 7 In January 2014, Diamond Offshore’s Strait, which cuts through the project nearing the finish line, a Ocean Endeavor completed a drilling heart of Istanbul, connecting few gray hairs have crept into his contract in Egypt. ExxonMobil, the Black Sea to the Aegean and otherwise youthful countenance, working with Romania’s OMV Petrom, ultimately the Mediterranean. hinting at the challenges he and then secured the ultra deepwater rig Two sleek bridges soar 64 meters his team have faced for the last to work a newly expanded drilling (210 feet) high over the Bosphorus, several months. program in the Black Sea. more than enough clearance for the Typically when a contract ends, world’s largest ships to pass safely “This is the first time Diamond Diamond Offshore will relocate a rig below. But the bridge designers didn’t Offshore has done anything like anywhere in the world where count on a seagoing vessel with an this on a rig this big. This is a very it is needed next. In fact, contracts enormous pointed tip towering unusual project,” he says. in recent years had seen the massive 115 meters (376 feet) skyward. To get “The mobilization is taking roughly Endeavor towed from Singapore to the Endeavor underneath, the derrick half a year before any drilling the Gulf of Mexico to Egypt. would have to be taken off, laid down can be done at a significant cost In relative terms, this latest trip for the passage and put back up on to our client. I think that shows from Egypt to nearby Romania the other side—in effect the most the potential ExxonMobil sees in looked to be a quick and easy jaunt. challenging limbo contest Diamond the Black Sea. We will be drilling But there were two very thin, yet Offshore has ever attempted. several wells in Romanian and very formidable obstacles standing Russian waters, and ExxonMobil in the way. holds options to extend the contract HAVE RIG, beyond that. I think the rig could be The Black Sea is a 270,400-square- WILL TRAVEL here for a good long while.” kilometer water mass that is Kyle Bardsley is the Project Engineer virtually landlocked by Romania, in charge of mobilizing the Endeavor The mobilization phase of the Ukraine, Russia, Georgia, Turkey into the Black Sea. He came to the project started on January 18th, and and Bulgaria. The only waterway project at its earliest planning stages some 174 days, 2,583 nautical miles in and out is the narrow Bosphorus in mid 2012. Now, at age 29 and the and 130,000 man-hours later, the

8 DIAMOND OFFSHORE RIGAMAROLE No . 33 9 TWO SLEEK BRIDGES SOAR 64 METERS (210 FEET) HIGH OVER THE BOSPHORUS...TO GET THE ENDEAVOR UNDERNEATH, THE DERRICK WOULD HAVE TO BE TAKEN OFF, LAID DOWN FOR THE PASSAGE AND PUT BACK UP ON THE OTHER SIDE— THE MOST CHALLENGING LIMBO CONTEST DIAMOND OFFSHORE HAS EVER ATTEMPTED.

10 DIAMOND OFFSHORE RIGAMAROLE No . 33 11 “BREAKING THIS RIG BASICALLY IN HALF TOOK A LOT OF CAREFUL PLANNING. OUR DISASSEMBLY APPROACH BEGAN WITH LOOKING AT HOW THE RIG HAD BEEN PUT TOGETHER. WE KNEW THE DERRICK WAS BUILT IN THREE SECTIONS. WE KNEW THE CRANES GO UP PIECE BY PIECE. SO WE BASICALLY REVERSE ENGINEERED IT.”

Endeavor commenced drilling its first well. “We broke them down and loaded them on Breaking down the derrick was basically But Bardsley brings the story of this most a cargo ship, along with the riser, drilling a matter of unbolting the three main uncommon aquatic journey back to the tubulars, third-party equipment, tensionsers, sections, but the SeaTrax cranes beginning. First stop—Palermo, Italy. anchors and our shorebase spares.” presented a more complicated challenge. These towering hoists sit upon massive “It took about 14 days to move the rig Bardsley points out that no rig is ever steel kingposts—solid cylinders that from Egypt to Fincantieri Shipyard in built with deconstruction in mind. were meant to be permanent supports Palermo, and that presented one of our “Breaking this rig basically in half took a and never tampered with. “We cut right first big challenges,” he says. “We needed lot of careful planning. Our disassembly through them,” says Bardsley. “It was four tugs and there was only one available approach began with looking at how the one of the coolest things we did. We had locally with adequate horsepower, so the rig had been put together. We knew the these huge clamshell lathes made, which other three had to come from neighboring derrick was built in three sections. attach to the kingposts like two giant ports. Two came from Messina, Sicily, We knew the cranes go up piece by piece. horseshoes to do the cutting. The lathes and the third from Valetta, Malta. It was a So we basically reverse engineered it.” machined the cranes right off an eighth of big cost to mobilize these tugs to Palermo, an inch at a time, leaving a nice smooth however we could not jeopardize the safety Easy to say, difficult to execute. The weld groove for when it came time to of the crew and rig by using anything derrick is 48 feet square at its base and reattach them. A team of specialists came smaller. Once the tugs got us docked, we 170 feet tall, built to handle staggering in to do the work and it took three days started to break the Endeavor down.” hook loads up to 2,000 kips. The deck to cut the cranes off.” cranes consist of two 90-ton SeaTrax units When fully loaded for drilling, the with 180-foot booms, and one 65-ton unit With the derrick, cranes and equipment Endeavor weighs in at an awe-inspiring with a 160-foot boom. Before all this bulk removed, and all the ballast water pumped 42,463 tons of steel, fluids and machinery. could be budged, a giant floating crane out, the remainder of the rig tipped the The rig hums and throbs as if it’s alive. taller than the rig had to be brought in to scales at 25,163 tons—the weight that It seems that once built, this beast could do the heavy lifting. “The crane we used would have to be hoisted completely out of never be broken. But the job in Palermo was came down to Palermo from Rotterdam in the water by the heavy-lift ship that was to do just that. Essentially, the Endeavor the Netherlands,” says Bardsley. “Once it hired to carry the rig to Romania. Bardsley was broken down and brought to the Black arrived, it took five days just to rig itself says there are only a handful of vessels in Sea in pieces. “To get under the bridges in up. It took down the derrick and deck existence that can contend with a cargo Istanbul, we had to remove the derrick and cranes, then they spent another seven days such as the Endeavor. “The two biggest three deck cranes, which together weigh de-rigging so it could follow us to Romania heavy-lift ships in the world can handle 1,171 tons,” says Bardsley. to put the Endeavor back together.” the rig without any modifications, but they

12 DIAMOND OFFSHORE RIGAMAROLE No . 33 13 were both booked up, so we had to use Bardsley says winterization was the physical pulling forces from the buoyant for fog to clear, the tugs towed her in around the Black Sea and found that less frenzied when she departs. a slightly smaller, narrower ship,” he largest and costliest job on the project. rig hull would ‘unzip’ the Endeavor and and tied her off to the quay. Now began there wasn’t really a single shipyard A few workers in optic orange coveralls says. “Under normal circumstances the “When you look at taking down the allow it to float free.” the work to do what had been undone built to handle a vessel the size of scramble over the scaffold stairway, Endeavor could not be shipped on this derrick and cranes and the heavy-lift in Palermo. the Endeavor. But Constanta did dismantling the only foot access to the vessel due to stability issues in the open mobilization, those are big, glamorous Thus riding piggyback, the Endeavor have the required water depth, so we rig. A harbor boat peels off the pontoon sea. But it was a different story with operations. The winterization isn’t embarked on the 1,260-nautical- landed here. When we first arrived we barrier that encircles the rig and the derrick and cranes removed, which something you can even see looking at mile journey to the city of Constanta ROMANIAN pretty much took over all the space. slowly chugs away. The tugs report for brought the rig’s weight and center of the rig, but it is essential to make sure we on the Romanian coast, where she RESURRECTION We had the Endeavor, the heavy lift duty and hook up for the tow. Gone are gravity much lower. However, we did don’t have any downtime offshore when would rendezvous with the cargo ship The sprawling city of Constanta is ship, our 170-meter cargo ship, a the curious crowds. Now just a motley need to reinforce the rig’s lower hull to the temperatures go below freezing.” and floating crane and reassembly half seaport, half summer resort. 75-meter barge and the 75-meter pack of port dogs laze on the quay, compensate for the narrowness of the lift would take place. East across the While families frolic in the lapping floating crane. This is kind of a bare- watching indifferently as the hulking ship. Once out of the water, more than Other modifications included adding a Mediterranean, north through waves, slurp up fast-melting soft bones facility without a lot of support. rig inches away. Dolphins lead the tugs, 50 percent of the Endeavor would be 12-man quarters to increase the number the Aegean, threading through the serve, meander through souvenir So we hired Harris Pye, a mobile which in turn lead the Endeavor out hanging off the sides of the ship. of personnel who can work on the rig to Dardanelles into the Sea of Marmara stands and linger in cafés, a giant shipyard contractor that we have a to sea. One journey at last is complete. It looked like it defied the laws of physics. 152. The helipad was also extended and at last encountering the Bosphorus rises conspicuously nearby. This is long and good relationship with. They The next one begins. But our structural engineers and naval 12 feet outward and six feet on each side. Strait and the bridges that caused all a busy port with large cargo ships mobilized here to work the project.” architects spent a lot of time up front After Romania, ExxonMobil plans to this effort in the first place. The spans routinely coming and going, but the After a brief load-out stop near the proving that the plan would work.” drill in Russian waters where they still sit 64 meters above the water, and locals have never seen anything like The work in Constanta goes on for port, the rig is towed to the Neptun use the old Soviet Mil helicopters. These according to Bardsley, the Istanbul Port the Endeavor before. When she was 88 days. The derrick rises. The deck Block about 100 miles offshore. bulky relics significantly outsize the Authority won’t let you cut it pulled into port, hordes of onlookers crane kingposts are welded back on On July 11th the Endeavor at last WARMING UP choppers typically used offshore, and the too close when passing under. crowded the quay to observe the and the booms reassembled. begins the task it was hired to do so FOR WORK Endeavor’s helipad had to accommodate. spectacle, excitedly snapping countless All equipment systems are reinstalled. many months ago—drill a well. Winters in the Black Sea are bitterly “The unrestricted limit is 54 meters. cell phone pictures. Weeks later after Every component of the rig is triple cold, a condition the Endeavor had never However, you can go as high as 58 the derrick is reattached the rig can checked and inspected. As the encountered. Before she could leave THE meters if you have extra tugs and be seen for miles around, even from departure date nears, a palpable Palermo, preparations had to be made. PASSAGE other large vessel traffic is restricted,” the countryside outside of Constanta. excitement permeates the air, as “This rig was designed to work in tropical After 43 hard-working days in port, he says. “Before we left Palermo we This new oddity on the skyline stands crewmembers and contractors knock environments, so all the piping was the Endeavor in her various pieces were trimmed up a few protrusions and then as startling evidence to the lack of out punch-list details, a process exposed,” says Bardsley. “We installed ready to bid Palermo arrivederci. had a surveying company come out to deepwater drilling in the Black Sea. known as acceptance testing. about five kilometers of heat tracing, and The first step after pushing away from verify that the rig in its reduced form But ExxonMobil is in the process of “We make sure everything is ready for we closed off certain areas with a high the shipyard was a three day process could safely pass under the bridges. changing all that. ExxonMobil,” says Bardsley. “The rig concentration of piping and equipment, known as sea fastening, in which the At that point we were good to sail, but needs to be 100 percent before it goes which was a good economical decision rig is secured to the heavy-lift ship to it was close. In fact we were slightly Bardsley says the rig was brought here offshore. We go through all the systems but also makes for a cleaner rig. We also make sure it won’t move around during too high, but we had a plan. The lift practically by default. “We had to look to verify that everything works the had to think of our people. The rig had transport. Bardsley explains that special ship ballasted down a couple of meters, for ports that could handle work like way it was designed to do. So when the a bunch of really good air conditioners, fasteners were welded to the ship’s deck which put us at 57.788 meters tall.” this. First you need the water depth to rig gets on location, nothing will fail but no heaters. We installed 75 heaters and to the underside of the rig. “Think Under the Endeavor went, with 0.212 bring something this size in, and then and cause downtime.” in different workspaces throughout the of it like a giant zipper. These fasteners of a meter to spare. you need the resources to do the work,” rig, We also installed 14 tank heaters to basically zip together to connect the he says. “Fincantieri in Palermo is a When testing is complete, ExxonMobil keep potable water, salt water and drill two vessels,” he says. “So when the ship With the bridges behind, the lift ship well-known shipbuilder with a good gives the green light and the Endeavor water from freezing, and we had to put encounters wave motion, the rig won’t carried on to Constanta. The Endeavor facility and equipment, which gave us a is carefully pried away from her berth. in eight power substations just to run all slide off. Also, it would be unlikely, but was detached just outside of the port and high level of confidence. Here it was a Compared to the rig’s arrival, the scene this new equipment.” if for some reason the ship goes down, secured with tugboats. After a day’s wait different story. We did a broad search on the Constanta quay is considerably

14 DIAMOND OFFSHORE RIGAMAROLE No . 33 15 16 DIAMOND OFFSHORE RIGAMAROLE No . 33 17 were key players. NOV sent crews to TEAM de- and re-commission the derrick WORKING BUILDING and drilling package, SeaTrax helped WITH XOM While this is by far the largest, As the largest of the supermajors, get the cranes back up and running, longest and toughest project Bardsley ExxonMobil can be highly selective Viking SeaTech changed the mooring has ever managed, he’s quick to heap when preparing for a drilling wires to prepare for increased water the credit on other shoulders. campaign. The company chose to depths, COSCO provided the dry- “It wasn’t me who figured this all out. hire the Endeavor for many reasons. tow ship, Hansa the cargo ship and We have a good team of engineers The rig is well equipped to do the job Boskalis the floating crane. back in Houston that did all the because it is conventionally moored planning and all the nuts and bolts and has a high static hook load A healthy percentage of Diamond calculations of how to do this. and vast deck space. Furthermore, Offshore’s own workforce got Then we had to work closely with the ExxonMobil had previous good involved as well, even beyond the rig crew to figure out how to make experience using the rig in 2009 Endeavor’s crew. “After starting the the project actually happen,” he in the GOM. But Bardsley says the project I was amazed at just how says. “Planning and logistics were biggest factor is safety. much of the company was involved,” the toughest part, which began back says Bardsley. “Of course it starts in 2012. There really were a lot of “ExxonMobil is a top-notch company. with the crew, and they have been pieces of the puzzle that had to come They have the resources and great to work with. Plus there’s the together just right. We had to find personnel to see a project through support we get here on the ground and synchronize the timing of 100 percent. They are very thorough in Romania with our operations shipyard facilities, cranes, ships and in everything they do, and safety is managers, shorebase materials a lot of different contractors. one of their biggest concerns, and men, mechanical superintendents The planning paid off. We allotted one of ours as well,” he says. “We and electrical superintendent. 43 days for Palermo and we pulled out have gone through this enormous And then there’s the support we on the 43rd day, we planned project without a major incident, get from Houston. We had help 12 days for transport to Constanta, and I like to say it’s been a result of from engineering, accounting, and we pulled in on the 12th day. all the preaching given from both treasury, legal, purchasing, logistics, When you consider how many Diamond Offshore and ExxonMobil. maintenance, subsea, IT, marine, enormous pieces have to fall in place, The safety culture of both companies marketing, HSE, HR, and even help these are not easy feats.” melds very well. ExxonMobil’s from other rigs on a daily basis. I think culture is that nobody gets hurt, and every part of the company has given At any given time during the height Diamond Offshore’s is Zero Incident support to this project in one way of the project, more than Operations. They go hand-in-hand.” or another, which really shows that 225 crewmembers and contractors everything we do is a team effort. had to be managed as they worked Sam Lujan, ExxonMobil Senior We all had to come together to make widely varying tasks all over Drilling Superintendent and company this project a success.” This statement, and around the rig. Many of the man aboard the Endeavor, couldn’t of course, includes the client. biggest names in the offshore industry agree more. “We always start our

18 DIAMOND OFFSHORE RIGAMAROLE No . 33 19 day with safety,” he says. “We hold a clean. It’s obvious that they take a lot couple weeks, and when I got back meeting with the entire crew that’s of pride in their operation.” everything was pretty much in place. about to come on shift, discuss what You know, that’s really impressive.” happened in the previous shift and Senior Lead Drilling Superintendent discuss any hazards that have been Mike Morgan is another ExxonMobil identified.” Lujan adds that this company man aboard the rig. He says CHALLENGES project calls for an even higher level of safety has been achieved because the SOLVED diligence because the rig is way out of two companies see eye-to-eye. “A lot As one would expect on a project of its element while in port. of elements of our safety systems are this magnitude, not everything has the same. We have actually merged our gone to plan. Morgan says there have “Here in the shipyard we are exposed worksite safety plans. We compared been some hiccups along the way, but to hazards that are not commonplace. our policies to Diamond Offshore’s, they have been well managed. “When When we’re offshore, operations and we have taken the more stringent the cranes were taken off in Palermo, are a little more typical. But in port rule between the two and made it the one of the booms was damaged and there’s a lot of activity and a lot of standard for this operation. Among nobody recognized it until the rig different contractors interfacing. drilling contractors, Diamond’s safety got here,” he says. “Diamond turned There are more hazards that we standards rank very high, and I think around a new boom section from are not quite used to, so we have their statistics show it.” Morgan says Aberdeen, Scotland, in two days.” Lujan to be extremely attentive to safety that high standards are also apparent in adds, “Any time we needed something and really look at the work from a the Endeavor’s appearance. “The rig is here quickly, Diamond airfreighted it in planning standpoint to make sure very well kept. It gets you excited when to keep things clicking along, and with everything is getting addressed.” you see that people want to do the right customs regulations and everything thing, and keep their housekeeping up. else you have to deal with, that’s easier Lujan was with the Endeavor on the All rigs are not like that. You can see said than done.” 2009 ExxonMobil contract and was that it is a culture here.” happy to see the rig come back. That’s also barely scratching the “We know what it’s capable of, and we Like most others on this project, surface. If you really want some war know the people,” he says. “I would Morgan is treading new ground. stories about dealing with challenges, say about 70 percent of the expat “I’ve never been associated with ask the project manager. Kyle Bardsley personnel are the same, which says a anything like this, and I would have to says he went into this expecting that lot about Diamond and their ability to say it has gone well,” he says. things would never go exactly to plan. retain good people. Coming back and “When you look at the scope of the “If that were the case, I could have seeing a lot of the same guys was really work to remove the derrick and cutting planned this project from Houston a positive. They know how we operate down all three cranes and removing and I wouldn’t need to be here,” he and they know we stand behind our all the lines and cables, it’s quite a says. “As much as you do to prevent safety vision. It’s good to have that daunting task. On my first hitch here, them, there are always challenges continuity. It was also good to come they were just starting work on putting and difficulties. One example was in back and see that the rig is still very things back up. Then I went off for a Palermo when we needed to pump out

20 DIAMOND OFFSHORE RIGAMAROLE No . 33 21 the ballast water from our pontoons Jody Elfert is the Operations Manager With the new crew aboard and the to lift the Endeavor out of the water. for the Endeavor. When the project acceptance testing near complete, Palermo has certain restrictions, so we is complete and Bardsley heads home, Johnny Moore and Randy Suffin couldn’t just dump our clean ballast he’ll remain in Romania, making eagerly count down the final hours water overboard. We actually had sure the client’s needs continue to be until the rig’s departure. They are the to pump it into barges and then into met. “ExxonMobil is the largest oil Offshore Installation Managers (OIMs) trucks and truck it away for disposal. and gas operator in the world. aboard the Endeavor, and both admit It turned what should have been a With that comes a lot of pressure to getting a little antsy over the last two-week job into a 43-day job, and it to perform,” says Elfert. “They want few days in port. Offshore drilling is took the whole shipyard to complete it. to know everything that’s going on. their natural habitat, and they are Something that shouldn’t be an issue We have to give them the information more than ready to see a horizon of such as removing water turns into a big they require to run their operations water in every direction. issue. It put us back a month. smoothly. So if a problem comes up, the best thing you can do is to be “There’s a lot more to look over when “Another big challenge was learning up front. We present any problems you’re in port,” says Moore. “We have about customs in Romania. This was that have been encountered and then contractors who may be just coming our first time to work here, so we present the solution. That leads to a onboard for the day, so they are had to learn all the ramifications of good relationship.” not really as concerned with safety importing a rig, and how long ship- procedures and permits on the rig. ments would be held up for parts It’s a big challenge. I walk around all and equipment. When you work in a day long verifying that they are doing place for many years, you know the PREPARING things to plan. If we see something system. But here we had to start FOR LAUNCH that’s not right, we go over it with them from scratch and learn everything on Before the Endeavor could leave the in the safety meeting, and if they still the fly. We faced a steep learning curve. Constanta shipyard, key personnel don’t do things right we remove them It was definitely something we had to decisions had to be made. In order from the rig. Another challenge during overcome quickly.” to work in Romania, more than this project has been communication. half of the Endeavor’s crew has to In a very short period of time we Bardsley says the first thing he does be Romanian, and with the lack have had to communicate in Egyptian, when new challenges arise is to tell of deepwater drilling in the Black Italian and Romanian.” everyone. “No one likes surprises. Sea, experienced people are nearly If there will be an unexpected delay, impossible to find. “We hired a Suffin adds, “It’s just more stressful we tell ExxonMobil immediately Romanian manning company to help in port. I’m still responsible for because they have to plan their us,” says Elfert. “A lot of these guys everything that happens on this rig, business. They are expecting a set date had never worked in the oilfield. It’s a and there are a lot of people that come for the rig to be ready for drilling, completely new atmosphere for them. and go during the day. That is not so if that changes they need to be able Some of them are familiar with ships, normal. When we are offshore I know to adjust. There are a lot of things but not rigs. So they have been busy where everyone is. When we’re here, they need to have ready on their learning their way around, getting instead of the rig being 350 by 350 feet, end as well, such as wellheads, casing, used to the routine and getting used it’s really the whole shipyard. mud and well-control equipment. to working with Americans. Overall it But I’m still responsible for everyone.” Open communication keeps the has been a smooth transition. Suffin says it will be great to be timing in synch.” These guys are pretty sharp.” back offshore, and even better to be

22 DIAMOND OFFSHORE RIGAMAROLE No . 32 23 back with ExxonMobil. “They walk the scheduling feat. He muses over the talk, and they do not take shortcuts. DRILL many cultures he encountered while I’m really looking forward to this,” AWAY using that visa. “It was amazing just ExxonMobil has contracted the he says. “The company men are the the diversity of people involved with Endeavor for 18 months with an kind of guys you can sit down and the project. We had Italians, Dutch, extension option. Kyle Bardsley says talk to face-to-face, and that’s how it Thai, Germans, Chinese, Romanians, the expectation is that the rig will be should be. When you’re working with Turks, English and Americans.” here even longer. “Some of these guys somebody, there should be no shut are hoping that when they retire, they doors. For example there have been For now he will return to more familiar will still be working in the Black Sea. some delays these last few days that surroundings, his home in Houston, It was a lot of work to break down are keeping us in port. Our clients Texas. “This is by far my largest the rig and get it here, and we would are anxious to get out there and start project,” he says. “Before this my have to go through all of this again in drilling, but they have said not to rush longest project took about 50 days. reverse to get it out of here.” anything. They said we will do it safely, It’s been long, but it has been rewarding and it will get done when it gets done. and a good adventure along the way. Bardsley runs down the long list of Now it’s time to go back to Houston, get investments made to complete this “We have very high standards on the a haircut and hopefully relax a little bit.” project. “The floating crane, heavy lift Endeavor,” Suffin concludes. “Everybody ship, cargo ship and rig winterization here takes a lot of pride in this rig. That’s were big ticket items. And then how we’ve achieved the safety record there are a lot of other little pieces we have for all these years. And so that add up very quickly.” the biggest challenge is to get the new people to fall in line with how we work.” Case in point—huge metal racks had to be fabricated to securely hold the Moore says the first well is going derrick and crane pieces on the cargo to go a little slower than usual, by ship. Diamond Offshore will stash necessity. “We will be doing a lot of these racks at the Constanta port, just training on that first one. ExxonMobil in case the Endeavor ever leaves the is completely on board with this. Black Sea and the disassembly process There is a lot of high-tech equipment has to be repeated. But for now, the to learn. Most of the Romanians speak Endeavor drills. English, but we also have a translator on board just in case. We want to Bardsley’s visa expired almost to make sure they really understand the the day that the Endeavor departed job before they do the job.” Constanta, yet another finely executed

24 DIAMOND OFFSHORE RIGAMAROLE No . 33 25 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2005 WRITTEN BY JOANN STONE

Ten years ago, Diamond Offshore’s dress market demands. This article approach to fleet building was much from our first issue finds Diamond as it is today. The company looks for Offshore finishing major upgrades the best opportunities to upgrade on several semisubmersibles— and renew its inventory. Sometimes elevating those units to 4th and 5th that means building new rigs, but Generation capabilities, and growing often it means building more value the fleet to the one of the largest deep- into current assets to quickly ad- water drillers in the world. A FLEET TO MATCH THE MARKETS

WHY UPGRADING OFFSHORE DRILLING RIGS MAKES SENSE

26 DIAMOND OFFSHORE RIGAMAROLE No . 32 27 …AFTER THAT, THE FOCUS COMES DOWN TO OUR FLEET. “THE HUMAN ELEMENT IS HOW FLEXIBLE AND EFFICIENT THIS COMPANY’S GREATEST ARE THE RIGS? HOW DEEP COMPETITIVE EDGE. WE WE CAN GO? HOW QUICKLY KNOW HOW TO FIND, TRAIN, WE CAN DEPLOY A UNIT? AND KEEP GOOD PEOPLE. … HOW COMPETITIVE ARE OUR DRILLING RATES?”

We always seem to want the next new “The human element is this Company’s BEGIN WITH “When the Victory Class rigs were first “Most of the time, equipment simply operate in extreme environments like thing, yet we often complain that “they greatest competitive edge. We know how THE BEST built in the 1970s, they were capable becomes outmoded,” Vecchio explains. those off the coast of Norway.” just don’t build ‘em like they used to.” to find, train, and keep good people. Between 1996 and 2004, Diamond of drilling in 600 feet of water. “And of course, drilling in deep water With offshore drilling rigs, much as with After that, the focus comes down to our Offshore conducted major upgrades on In the 1980s we increased their water- requires more robust systems. But that “With both the Rover and Baroness, ancient sailing ships, the age of a rig is fleet. How flexible and efficient are the more than one third of the Company’s depth capabilities to 2,000 feet, and doesn’t mean that you have to start we wanted rigs that could drill deep only one determinant of lifespan, and not rigs? How deep we can go? How quickly rigs. As a result, Diamond Offshore has in the 1990s, beginning with the from scratch.” wells in deep water,” Vecchio explains. necessarily even the best. The original we can deploy a unit? How competitive gone from a fleet of predominantly Ocean Voyager, to 3,000 feet,” says “Just as important to the program, quality that went into the rig’s design and are our drilling rates?” intermediate depth semisubmersibles Eads. “With the modernization of the WHAT however, we wanted to ensure that they fabrication, along with maintenance and to having the second largest deepwater Ocean Baroness and Ocean Rover, AND HOW were efficient, dependable develop- the unit’s current technical capabilities The majority of Diamond Offshore’s fleet fleet in the industry. we’ve taken them to 7,000 feet and “Our approach, basically, has been mental drilling tools, capable of are all critical factors. was built through acquisitions and provided true 5th Generation two-pronged,” Vecchio continues. evaluating and completing wells mergers with other drillers. In some cases, The Company’s 14 jackup units were capabilities,” adds John Vecchio, Senior “In several instances, the modifications successfully at these greater depths. With the demand for oil growing, like the Ocean Vanguard and the also modernized. Seventy-five percent Vice President of Technical Services. were made to suit specific drilling And we wanted to be able to enhance the pressure to find more hydrocarbons Ocean Patriot, the Company purchased can now drill in 300 feet of water or “And we are capable, with additional programs for our customers. Both the them even more as technology and is rising correspondingly. Furthermore, rigs on a stand-alone basis. While many of greater, and all but one have cantilever mooring, and other more minor adjust- Ocean Quest and Ocean Confidence customer needs warranted.” as depletion of the world’s more these units were built in the ’70s and ’80s, packages. Both the Ocean Titan and ments, of taking them even deeper.” fit into that category. In other cases, accessible reservoirs accelerates, Diamond Offshore believed that because Ocean Tower, which operate in water such as the Baroness and Rover, The two units are virtually identical so does the importance of efficiency in of their structural integrity they would be depths up to 350 feet, were converted “The Victory Class upgrades we have tried—successfully—to Victory Class rigs, as originally finding and developing new reserves, excellent candidates for upgrading. from independent-leg slot rigs to fundamentally involve stripping the anticipate the market and modified rigs built in 1973, and now as upgraded especially in deeper waters. independent-leg cantilever rigs. rigs down to their basic hulls, then based on our assessment of what the to 5th Generation status in Singapore, With exploration accounting for as So, the Company began a process of Of the semi-submersible upgrades, over augmenting the hulls and outfitting marketplace needed—both near and beginning with the Baroness in much as 25% of the cost of a barrel modernizing the fleet on a rig-by-rig half involved enhancing Victory Class the unit with modern equipment. longer term.” late 2000. The Baroness upgrade was of oil, energy companies are looking for basis, as their pedigree and condition rigs built in the 1970s. When Diamond Offshore started this completed in 19.5 months and the Rover ways to lower their discovery and dictated. “From a cost and a time program, we heard some in the “Of the major Victory Class upgrades, in just over 20 months. Both upgrades development costs. standpoint, we believed that 4th and The Victory Class rigs were chosen industry say that the level of costs have ranged from a low of came in under budget estimates. even 5th Generation capabilities because, says Eads, “Victory Class rigs modifications we were planning $10 million for the Voyager to a high of Diamond Offshore made a decision in could be achieved for about one-half have a unique geometry. They consist of could not be done cost effectively. $188 million for the Rover,” says Water depth capabilities for both rigs the mid-1990s to be aggressive about the cost of a new-build rig, and four pontoons, four horizontal cross-tubes, We did not agree. If you have selected Vecchio. This compares with over were increased from 1,500 feet to getting the most out of the Company’s that the rigs could be operational in less diagonal braces, 12 columns, and a your rig right, the heart is still good,” $400 million for a similar new-build rig.” over 7,000 feet as outfitted. Drilling drilling fleet. “We sensed then that than half the time.” cruciform- shaped deck. They were built Vecchio continues. “Performing depth was taken from 20,000 feet to there was a severe shortage of with thicker and higher quality materials, normal and consistent maintenance “In terms of complexity, the Confidence 35,000 feet. Variable deck loads more deepwater drilling rigs,” says “We are talking about maximizing the and expansive deck space. In other words, has a lot to do with lifespan. With the was the most challenging, due largely than doubled, and riser tension Larry Dickerson, Diamond Offshore’s full potential of our fleet,” explains they were built with a good bit of reserve Victory Class rigs, the shortest to the degree of automation required. increased almost five times, from President and Chief Operating Officer. Rodney Eads, Senior Vice President of strength, possess sufficient size, and have calculated fatigue life for the steel in The Confidence incorporates a Dynamic 640 kips to 3,600 kips. Mud and “So we decided that we could upgrade Operations, “in order to provide excellent fatigue and motion chara- the hull is 84 years, with others Global Positioning System capable of completion fluid storage capacity more certain rigs within our fleet to add customers the technical capabilities cteristics. This makes them ideal candid- running into the 200-year range.” keeping the rig on station within than quadrupled. And crew quarters deepwater capacity.” they require to operate in deep water ates for the generational adaptability of 1–2 feet, 90% of the time. It can drill were expanded to accommodate and drill to deeper total depths.” the kind Diamond Offshore has been doing. in 7,500 feet of water. And the unit can approximately 50% more personnel.

28 DIAMOND OFFSHORE RIGAMAROLE No . 33 29 84 YEARS 2252 180 YEARSYEAEARS 190 YEARS YEARSY ARSRS

8888 YEARA S VICTORY CLASS HULL FATIGUE LIFE

The primary features that were the Baroness is providing Unocal the the low end markets to higher spec upgraded to enhance developmental ability to quickly swap from surface markets, which has enabled us to capabilities for the Rover and Baroness to subsea is blow-out prevention compete in the new frontiers offshore included large moon pools, high- systems in deep water as the company and has reduced the available supply capacity tree handling systems, offline seeks to extend the life of Indonesia’s in the shallow water fleet. This has activity capabilities, large deck areas East Kalimantan field. improved the market dynamics for and greater variable deck load capacity. both classes of rigs.” Additional mud and completion fluid FLEXIBILITY storage was also provided. FOR THE FUTURE “We have accomplished this aggressive “In total, we have spent an estimated repositioning largely during slack RESULTS $1.1 billion over a period of eight years market periods, using non-performing IN THE WATER to create the second-largest floater assets which has reduced our lost Speaking to the American Association fleet in the world, a fleet capable of opportunity for upgrade candidates of Deepwater Engineers last year, drilling anywhere in the world,” says and put us in a stronger position in Mike Sprawls, Drilling Manager for John Gabriel, Senior Vice President of dealing with shipyards and suppliers. Unocal Gulf of Mexico, said, Contracts and Marketing.” This overall strategy has allowed “Operators don’t want a rig, they want us to deliver a highly evolved fleet the result of utilizing the rig.” “We have become very proficient at capable of competing in the most Results for operators are what doing these modifications, at challenging applications at a fraction Diamond Offshore’s upgrades have accurately projecting the costs and of new build costs.” been producing. timeframes and putting together the teams to achieve the results we “Our fleet transformation is now When Murphy Oil Corporation want. As long as the return on beginning to pay huge dividends. contracted the Rover to drill two investment is there, we will consider We have been on the front lines wells on one of its leases in deepwater doing them. Does this mean we will of the most recent market movement offshore Sabah, Malaysia, the company never buy or build new rigs? No. and are well positioned take did so with options to drill additional We will evaluate every opportunity advantage of the opportunities and wells within its Sabah lease. Since that makes us more competitive.” challenges ahead.” commencing drilling operations in July 2003, the Rover has drilled a total “The company’s long term strategy of of 12 wells in water depths ranging upgrades has delivered results both in from 377 to 5,729 feet. This has terms of fleet enhancement and share- enabled Murphy to move quickly from holder value,” says David Williams, location to location, amid numerous Executive Vice President. “Our fleet discoveries, with the flexibility to has been completely transformed formulate development plans and from predominately 2nd Generation return to the most promising wells in a units to one of the largest collections timely manner. Across the island of of deep water rigs in the world. Borneo in the Straits of Makassar, We have successfully moved rigs from

30 DIAMOND OFFSHORE RIGAMAROLE No . 33 31 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2005 WRITTEN BY MICHAEL SLATON

When you place our current feature upgrade to ultra-deepwater status. article next to this one from Diamond Offshore saw rising 2006, you can see that the Ocean demand for rigs that could drill Endeavor has long had the goods to in waters up to 10,000 feet and play a starring role in Rigamarole. precious few units in the world that This story takes us to Keppel FELS could pull off the task. TheEndeavor shipyard in Singapore, where the exited Singapore as one of the most Endeavor is nearing the end of an desirable rigs on the market.

ULTRA-DEEP ENDEAVOR ARRIVAL OF THE OCEAN ENDEAVOR AT KEPPEL FELS SHIPYARD IN SINGAPORE MAY 20, 2005, MARKED THE BEGINNING OF A TWO-YEAR UPGRADE THAT WILL PREPARE THE SEMISUB- MERSIBLE FOR SERVICE IN THE WORLD’S GROWING ULTRA-DEEPWATER DRILLING MARKETS. WHEN THE $255 MILLION ALL-IN-COST PROJECT IS COMPLETE, THE RIG WILL BE ONE OF THE LARGEST AND MOST CAPABLE IN DIAMOND OFFSHORE’S FLEET OF DEEPWATER SEMI-SUBMERS- IBLES AND ONE OF THE MOST SOPHISTICATED DRILLING UNITS IN THE WORLD.

32 DIAMOND OFFSHORE RIGAMAROLE No . 33 33 OVERVIEW OF THE UPGRADES USABLE DECK SPACE — —

1,000 Kip CMC

2,000 Kip Derrick

Mud House Riser storage

Seatrax Cranes (3)

10,000-ft. Water-Depth Capable Outfitted For 8,000-ft. Water Depth 6,000LT-VDL 5-ram 15k BOP 3,600 Riser Tension (17ppg)

OCEAN ENDEAVOR 51,611 SQUARE FEET OCEAN ROVER 27,523 SQUARE FEET

Increased Deck Space A COMPARISON OF THE ENDEAVOR AND ROVER Sponson Accommodations Mud Tanks (140-Person) CAP 437 Enhanced Mooring Helideck 8 or 12-point K4 10,800-ft Wire

Like the previously upgraded semi- generation semi fleet to four units, and Class modernization project in a on many fronts, all converging on the bigger column and pontoon sponsons upgrade will add more capability submersibles Ocean Rover and the Company’s fleet of rigs capable of Company history that also includes the Singapore shipyard. to the hull. These changes will add the across a broad range of specifications Ocean Baroness, the Ocean Endeavor operating in 3,500 ft. of water or greater Ocean Quest, Ocean Victory and buoyancy needed to support the heavier responding to customer needs in is a Victory Class rig, a stout to 13, compared with three in 1995. Ocean Star rigs in the mid-1990s, and Coordination of multiple suppliers loads of equipment required for deep deepwater development. These design distinguished by a cruciform Estimated cost of the Endeavor has it origins in Victory Class work that and vendors is a key skill in a complex development operations and also provide changes will enhance drilling and configuration with four hulls and upgrade is significantly below today’s extends back to the 1970s. scheduling process that involves dozens capacity for high-volume mud storage. completion capabilities as well as the 12 columns, that lends itself well to new-build cost of up to $500 million of primary vendors and hundreds of The planned 16,000 bbl fluids-handling rig’s operational window and ability to 5th generation conversion. However, dollars. In addition, the relatively short “Knowing what you’re getting into and suppliers overall, says Karl Sellers, capacity of the Endeavor overshadows work for extended periods with reduced the Endeavor upgrade is even more construction schedule represents a large where you’re going is a big advantage,” Vice President and second in command even the considerable 13,800 bbl capacity support requirements. ambitious than the Rover or Baroness. delivery advantage over new builds. says John Vecchio, Diamond Offshore’s of Technical Services, who sums it up of the Baroness. Senior Vice President of Technical succinctly with the dictum, “Careful Increased materials storage and handling Upgraded by Keppel Fels in 2002 and A similar upgrade approach may Services. “Time spent up front eliminates planning avoids critical path problems.” Activity on the rig is paralleled at capabilities central to the upgrade of 2003 respectively, the Baroness and also be applied to the Garden mountains of time off the back end,” quay-side, where major “blocks” of the all three rigs are driven by the larger, the Rover are outfitted for working in Banks. An agreement to acquire the he says. “Having a mature design with By the time the rig set off for Singapore, rig, such as living quarters, are built heavier tubulars used in deepwater water depths as great as 7,000 ft., though semisubmersible, also a Victory Class real costs is essential to the decision to most major equipment had been ordered and lifted into position. These steps completions. “Greater storage on the rig,” up to 9,500-ft. water depths can be design, was announced in April while build and the success of the project.” and steel was being received at the require careful integration of suppliers explains Vecchio, “shortens the logistical achieved utilizing augmented moorings the Endeavor was being transported yard. Arrival of the rig is one of many and the shipyard, says Sellers. supply train and makes the operation less and additional riser, buoyancy, casing to Singapore. When the acquisition is The approach earned strong credibility milestones that include contract signing, For instance, equipment suppliers must boat-dependent. We can stage from the and drillstring. With increasing market completed, Diamond Offshore will own in earlier upgrades. The Baroness cutting first steel, dry-docking, main coordinate with the electrical system rig rather than the beach.” For example, demand for 7,500 ft. and greater water all nine of the world’s Victory Class hulls. and Rover upgrades hit delivery generator commissioning, drill-floor SCR supplier so that power requirements Endeavor will have a 6,000-long-ton depth capability, the Endeavor, initially schedules and target costs “almost erection and outfitting, and successful are understood. These suppliers must operating variable deck load (VDL). outfitted for operations in 8,000 ft. of When the Endeavor was built in exactly,” says Vecchio. completion of commissioning. further coordinate with the shipyard This allows for a full complement of water, will be capable of operating in 1975 at Transfield Shipyard in Fremantle, on the installation of equipment and tubulars, fluids and stores onboard—a water depths of up to 10,000 ft. using Australia, the new semi was rated for The upgrade process for the Endeavor The actual upgrade begins with running of electrical cables. logistical advantage in extended augmented moorings. Additionally, the 600-ft. water depth. Changing the rig began while the rig was cold stacked equipment removals and demolition. operations. In contrast, the Baroness and Endeavor mooring system will be easily into a modern-day, 10,000-ft. deepwater at Sabine Pass, Texas. The decision to Vecchio compares it to remodeling a The scope of the Endeavor upgrade is Rover have a 5,500-long-ton operating upgradable to a 12-point mooring system. behemoth is a carefully orchestrated proceed was announced in early January house when he says, “First you strip big even when compared to the VDL. Additionally, free deck space, process honed by Diamond Offshore’s 2005. By March 28, when the semi was away as much as you can and still retain considerable changes made on the also important to materials handling The fully modernized Endeavor will long experience with Victory Class loaded aboard the Blue Marlin for the structural integrity.” Then the foundation Rover and Baroness. In addition to and storage, has been greatly expanded. expand Diamond Offshore’s 5th- upgrades. The rig is the sixth Victory dry tow to Asia, the project was moving work begins. The focus here is on adding greater depth capacity, the Endeavor Along with the larger sponsons, the

34 DIAMOND OFFSHORE RIGAMAROLE No . 33 35 added deck space is one of the more quarters for 140 personnel and efficiencies. The offline capabilities 1,500 kips of setback while transiting, columns, the Victory Class upgrades riser storage; and 21,900 cu. ft. of bulk visible aspects of the change the rig significantly increased office space. afforded by the technology provide allowing drillpipe make-up and setback add greater hydraulics with increased storage capacity. The modernization of will undergo. The Endeavor will offer Like the Rover and Baroness, the operators with the flexibility to carry while underway pump capability. The Baroness is the Endeavor follows a long history of an impressive 50,000 sq. ft. of free Endeavor will also feature enhanced out multiple tasks without interrupting equipped with three 2,200 hp mud upgrading Victory Class rigs to meet Picking up drillpipe while drilling deck space—more than double the developmental capabilities including primary drilling activity, including pumps and a dedicated 1,700 hp pump customer’s evolving needs for deepwater Preparing tools while drilling 23,000 sq. ft. available on the Baroness. a large moon pool (25 ft. x 90 ft.), setting aside the BOP to save a trip for the riser. The riser boost pump applications. With demand for deepwater a high-capacity tree handling system, in subsea tree installations, and Making up shoe, float collar and ensures well requirements are met equipment increasing, the Garden Banks Deepwater development operations and additional mud and completion suspension of casing in the moon pool centralizers to casing joints while still being able to return heavy appears poised to follow. are supported by a full complement fluid storage capacity. while running anchors. cuttings and mud to the surface. of customer and service company Larger pipe and greater hydraulics The Endeavor will have an even greater personnel. The Endeavor upgrade In addition, the rig will employ the Other non-Tripsaver™ offline used in development operations also capability with four 2,200 hp pumps. expands accommodations from the same Tripsaver™ technology that is capabilities include: increase fluid and pump requirements. 122-person permanent quarters at work on the Rover and Baroness, Making-up and laying-down drillpipe Along with greater mud storage volume Other distinguishing features include on the Rover and Baroness to which provides for significant drilling during drilling operations provided by the larger structural a 5 ram, 15,000 psi BOP; 9,450 ft. of

36 DIAMOND OFFSHORE RIGAMAROLE No . 33 37 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2006 WRITTEN BY SCOTT REDEPENNING

No matter where in our watery regular drilling operations. E&P world operators want to drill, companies are enticed into these Diamond Offshore will find a way waters to capitalize on the promise to take them there. This article of large hydrocarbon deposits, and dives into the deepest recesses Diamond Offshore is helping them of the Gulf of Mexico, where contend with the current and tap the notoriously treacherous Loop the reservoirs through technology, Current threatens rigs, risers and strategy and deft station keeping.

TAMING THE LOOP RAGING OFFSHORE RIVER. STORM SUPERCHARGER. RIG WRECKER. THE GULF OF MEXICO’S (GOM) INFAMOUS LOOP CURRENT HAS EARNED SOME NEFARIOUS NICKNAMES. BUT SIGNIFICANT OIL AND GOING WITH THE FLOW GAS RESERVES LIE DEEP IN THE OCEAN FLOOR BENEATH THE LOOP. AND WITH FAVORABLE COM- Riser fairings allow the Loop Current to slide around the drillstring. Each segment can swivel MODITY PRICES AND ESCALATING WORLD DEMAND FOR HYDROCARBONS NUDGING OPERATORS independently, ensuring the fairing is always INTO DEEPER WATER IN SEARCH OF HARDER-TO-REACH RESERVOIRS, THE GULF’S LOOP CURRENT aligned to the current. IS ONE OF THE MORE POWERFUL FORCES OF NATURE WITH WHICH THE INDUSTRY MUST RECKON.

38 DIAMOND OFFSHORE RIGAMAROLE No . 32 39 “We deal with ocean currents all over the more commonly known as Red Tide, wellhead, is of particular concern. The same thing can happen on customers’ investment by widening Service has required all rigs to collect world, but none are more complex and which kills massive numbers of fish and Much like fishing line bows in the slight dynamically positioned rigs. the drilling window.” and share these measurements publicly. challenging than the Loop Current,” says causes severe respiratory problems in current of a stream, the riser is subject When forces exceed thruster power, Private subscriber services also provide Rodney Eads, who heads worldwide humans. Additionally, the current has a to applied forces of moving water. this can lead to an emergency unlatch, PUSHING real-time, trend, and forecast reports, so operations for Diamond Offshore. supercharging effect on tropical storms Strong currents create vortices around which obviously suspends operations.” UPSTREAM operators can see what’s coming and and hurricanes. And finally, even the riser—forces in which the pressure Still, because suspension of drilling at a take the appropriate actions. Bob Blank, an area manager of domestic without storm activity, the Current can on the up-current side of the pipe is “Timing is the key,” Says Captain Peter particular location due to the Loop operations in the GOM adds, “We are wreak havoc on semisubmersible rigs greater. This causes vortex-induced- Bamber, who directs marine operations Current is not uncommon, sometimes These actions come from an array of going off the continental shelf and more conducting offshore drilling operations. vibration (VIV), which can severely for Diamond Offshore. “If conditions for weeks at a time, operators have been creative options for mitigating the Loop and more toward the Loop Current. stress the riser joints and damage force us to disconnect the riser and forced to look for alternatives. Some Current forces on rigs. Moored Our customers want to be out there, and This last point is exacerbated by subsea structures and the wellhead. suspend drilling, we want to conduct a have created contingency plans for semisubmersible rigs can be set up with some of them are shocked the first time unpredictability. The Loop Current is Extreme cases have even caused planned operation.” Bamber says that alternate drilling locations during high the moorings pre-biased against the the Current hits them." amorphous, constantly changing length, the riser to part from the rig and sink even as current speed mounts, operators Loop Current activity. Yet many are current, and occasionally tugboats can width, shape and even depth. Gigantic to the sea floor. Blank notes that in don’t want to disconnect while they’re meeting the force head-on with two of be employed to pull a moored rig against The Loop Current is a finger-shaped eddies known as warm-core rings, are addition to the VIV impacts, the in the drilling window. On the other the most powerful weapons known to the current with just enough force to “river” of unusually warm and fast water spun off and carry Loop Current effects Loop Current creates other challenges. hand, waiting too long can lead to even man—knowledge and creativity. help maintain station. A dynamically- moving clockwise into the GOM at the to other areas of the GOM before “First, getting the rig into position is more expensive losses. “When water positioned semisubmersible drilling rig’s Yucatan Peninsula and back out at the dissipating. All this means that Loop difficult. So is holding the position. speeds start to exceed two knots, you New knowledge is coming in the form of thrusters can also be used to counter the tip of Florida. This oceanic anomaly can Current conditions can migrate in and And once lost, getting the position back want to have a plan in place to pull the extensive data, which is constantly force of the current. push 80º F water hundreds of feet deep. out of a rig’s position with very little is hard.” riser while you still can,” says Bamber. being gathered, compiled and meaning- The Loop packs a potent punch of warning, and can be at any level in the “Otherwise the riser may be lost.” fully reported. Metocean data correlates Another way to reduce stress on the having heat energy coupled with the raw water column below the rig at any time. “Station-keeping in the Loop Current is meteorological and oceanographic riser is to use the current’s own force power of the fast moving water, which key,” adds Eads. “On moored rigs, Fortunately, these challenges are not conditions such as water speeds and against it, with attachments known has led to some notable impacts. First, These conditions create unique when forces on the moorings are out of insurmountable, says Eads. directions, water temperatures, wind as riser fairings. These teardrop-shaped the Loop Current creates ideal challenges to deepwater drilling in the our operating window, we have to “Diamond Offshore is putting procedures speeds and directions, even cloud height devices divert current around the riser, conditions for the growth, transport and GOM. The riser, which encases the drill suspend operations and unlatch the in place to protect the Company’s rigs at locations throughout the Gulf. equalizing forces on all sides to mini- retention of Gymnodinium breve blooms, string for thousands of feet from rig to riser. This is costly for the operator. and equipment, and to protect our Since 2004, the Minerals Management mize flex and VIV in higher currents.

40 DIAMOND OFFSHORE RIGAMAROLE No . 33 41 “RUNNING FAIRINGS WITH THE RISER COSTS MORE, BUT WE FEEL WE ARE AT THE POINT IN THE GOM THAT WE NEED TO EMPLOY THE FAIRINGS TO HELP CUSTOMERS IMPROVE OPERATIONAL EFFICIENCY AND COST EFFECTIVENESS.”

BAD VIBRATIONS Strong currents create vortices around the riser—forces in which the pressure on the up-current side of the pipe is greater. This causes vortex-induced-vibration (VIV), which can severely Diamond Offshore has successfully Loop Current at that time had migrated Mechanical Engineering Magazine: TAMING THE LOOP stress the riser joints and damage subsea structures and the employed fairings in other parts of the significantly north and west, stretching “If you stop and think about what these These teardrop-shaped fairings divert current around the wellhead. Extreme cases have even caused the riser to part from the rig and sink to the sea floor. world. Eads says, “Running fairings all the way to the Mississippi delta. Like rigs do, offshore drilling ought to be riser, equalizing forces on all sides to minimize flex and VIV in higher currents. Diamond Offshore has successfully with the riser costs more, but we feel a runaway freight train, Katrina rode impossible. The weather is difficult, employed fairings in other parts of the world and plans to we are at the point in the GOM that we that heated track to landfall, gaining depths are so great, and the pipes are so begin using them in the Gulf of Mexico. need to employ the fairings to help speed and strength until smashing the relatively insubstantial that almost a customers improve operational Gulf Coast with major destructive force. miracle is required to be successful. efficiency and cost effectiveness.” Imagine trying to poke holes in the By contrast, Rita gathered massive ground with a 50-ft. length of ¼-in. STORM strength on the Loop Current, becoming wooden doweling. Offshore drilling is SURGE the second strongest storm ever something like that. Except worse.” The Loop Current also plays a major recorded. But when Rita moved off the Still, offshore drilling is moving ever role in the development of hurricanes. warm rings, the storm lost intensity farther into the deep and stormy waters Understanding the Loop Current is one before landfall. in the heart of the Loop Current, and of the keys to understanding what these Diamond Offshore is taking steps to storms are likely to do once they enter And, after devastating the Yucatan, make sure the Company can keep the GOM. The Loop Current sits dead Wilma cut easterly across the “turning to the right” for its customers center in the Gulf’s hurricane alley, Loop Current so quickly there wasn’t as safely and efficiently as possible. acting as an enormous storm fuel enough time to intensify before going injector. When hurricanes move over ashore in Florida. the Gulf’s deep, hot waters they can intensify from a Tropical Storm to a Hurricanes, 10,000-ft. water depths Category 5 hurricane in less than and the Loop Current, to name a few 48 hours. This was the case with of the challenges. Paraphrasing Katrina. Making matters worse, the Jeffrey Winters, Associate Editor at

42 DIAMOND OFFSHORE RIGAMAROLE No . 32 43 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2007 WRITTEN BY DENISE ALLEN ZWICKER

Diamond Offshore has become the creating the first portable and company it is today largely through reusable offshore drilling units, strategic acquisitions. This story which were built on submersible takes us back to the very birth barges. From there we trace the of the offshore industry, where company’s lineage and legacy of Diamond Offshore predecessor technology into the modern era company ODECO solved the of world-class, ultra-deepwater limitations of stationary rigs by drilling rigs.

BARGES TO BEHEMOTHS FROM SHALLOW-WATER SUBMERSIBLES TO ULTRA-DEEPWATER FLOATERS, DIAMOND OFFSHORE HOLDS A LONG AND RICH HERITAGE IN THE OFFSHORE DRILLING INDUSTRY. TODAY, AFTER DECADES OF INNOVATION AND OPPORTUNISTIC MULTIPLE-COMPANY AND RIG ACQUISITIONS, WE PROVIDE CONTRACT DRILLING SERVICES TO THE ENERGY INDUSTRY AROUND THE GLOBE AND ARE A LEADER IN DEEPWATER DRILLING.

44 DIAMOND OFFSHORE RIGAMAROLE No . 32 45 finding seven major fields. Ocean Viking 1992, ODECO was purchased by The Bush link was always interesting, A HISTORY Laborde designed a platform supported (for lifting) on this thing so I can haul it discovered the giant Ecofisk Field for Diamond M Corp., soon to become too. Once, during a meeting, a key OF INNOVATION by columns on top of a barge. The barge off for salvage,’” Plaisance notes. But Phillips Petroleum. Ocean Victory found Diamond Offshore Drilling, Inc. Zapata person was called to the phone to THE PREDECESSOR could be flooded so that the unit’s hull Laborde had the last laugh. The rig drilled the Piper and Claymore fields for talk to ‘George.’ Turned out that ‘George’ COMPANIES: ODECO rested on the ocean floor. When the a discovery well on its first attempt— Occidental Petroleum. Ocean Voyager ZAPATA was the President of the United States! Much of Diamond Offshore’s history is drilling was finished, the barge could be the South Pass Field, near the mouth of discovered the Brent, Cormorant, PETROLEUM that of ODECO (Ocean Drilling and towed to a new drilling site. the Mississippi River, for Shell Oil. and Auk fields. And Ocean Kokuei found CORPORATION The offshore company’s name was Exploration Co.). ODECO was founded the Ninian Field. ARETHUSA (OFFSHORE) LTD. changed to Zapata Corp. in 1982. During in New Orleans in 1953 by Alden J. “His was the first submersible rig design After a decade of working with At about the same time that Laborde was the downturn of the late 1980s, Zapata “Doc” Laborde. This marine engineer in the world, and he tried to sell the submersibles, Laborde and his staff had In 1969, ODECO got in the jack-up founding ODECO, four as-yet-unknown was in trouble and looking to sell its rig and commander of a destroyer escort design to Kerr-McGee, but they wouldn’t noticed how stable the rigs were while business, building the Ocean Star (not to partners were forming another Diamond fleet. A consortium from Europe, led by in World War II got to know the oil field bite,” Plaisance notes. “So he quit his job they were being submerged at a location. be confused with Diamond Offshore’s Offshore predecessor: Zapata Petroleum Belgians, formed Arethusa (Off-Shore) in 1947, when he went to work for Kerr- and started looking for someone to back “They tried not pumping out all of the present day semisubmersible of the Corporation, an oil exploration company. Ltd. and bought the fleet in 1990. In 1996, McGee, the first driller to work offshore him. At last, he found Murphy Oil Co. water and moving the rig while it was same name). The original Ocean Star is The partners were George H.W. Bush Diamond Offshore purchased Arethusa. in the Gulf of Mexico. in El Dorado, Ark. Charles Murphy ran partly submerged,” says Plaisance. now an offshore-drilling museum at the (the 41st U.S. President), John Overbey, an onshore oil company, but he saw “The idea worked. So they opted to Offshore Energy Center in Galveston, J. Hugh Liedtke, and Bill Liedtke. DIAMOND M DRILLING CO. “In those days, they built a steel-piling promise offshore. And he saw this as a design a rig that was semisubmersible, Texas. And, in 1971, ODECO designed The fledgling company formed an In the early 1960s, an onshore drilling platform, put a converted land rig on it, way to enter the offshore arena. held in place by anchors. “They built a and built the world’s first self-propelled offshore exploration company, Zapata company, Brewster-Bartle, went and used boats to supply it,” says scale model and tested the rig in semisubmersible, Ocean Prospector. Off-Shore Co., in 1954, with 30-year-old bankrupt. The banks that now owned M.R. “Moe” Plaisance, vice president— “Laborde needed $1 million to build his Laborde’s neighbor’s swimming pool. Bush as the company’s president. the company’s rigs called Don McMahon, International Operations for Diamond rig, so Murphy put up $500,000 of that They were pretty amazed that the model In 1974, ODECO became the largest The young company pioneered new a Texas rancher and oil man, and asked Offshore and a former ODECO (a new semisubmersible today can cost sat there, almost still,” he says. “So they and most diversified offshore drilling offshore drilling equipment. (Zapata him to take over the failed company. employee. “If they drilled a good well, as much as $700 million). Laborde decided to build the Ocean Driller in contractor in the world when the Petroleum, headed by the Liedtke McMahon took the challenge and formed they had a structure in place to produce found other investors to put up the rest. 1964—which was the first purpose-built company acquired Storm Drilling brothers, later would become Pennzoil.) Diamond M Drilling Co. in 1964. He the oil or gas. But, if the well was dry, Murphy gave Laborde 10 percent and semisubmersible.” and Marine of Houston. The Storm deal named the company after Diamond M it was a lot of trouble and very costly to made him president. And, when added two semisubmersibles, Zapata also was a pioneer offshore Acres, his ranch near Simonton, Texas. take down and rebuild elsewhere. Laborde built that first rig, he named it The Ocean Driller and its successor, four drillships, and eight jack-ups to Canada, with the Zapata Ugland Laborde noticed the way inland barges Mr. Charlie in thanks to Charles Murphy Ocean Explorer, were the company’s two ODECO’s fleet and brought the semisubmersible, which was one of the In 1965, Diamond M began as an inland- work and said ‘Why not do that for for believing in his idea,” Plaisance says. prototype semisubmersibles. company’s worldwide drilling opera- first partnerships between a barge contractor in the Gulf of Mexico, offshore drilling?’ He wanted to design They ushered in a new era of offshore tions into new offshore frontiers, such U.S. driller and Norwegian shipping soon growing into the world’s largest a mobile offshore drilling unit Not everyone believed. “The president drilling for the growing company. as West Africa and South America. companies. This is one of the roughest inland-barge drilling company. (MODU) that could move from one of McDermott came to the shipyard environments for drilling in the world, spot to another without having to be where they were building Mr. Charlie and ODECO rigs pioneered exploration of Murphy Oil Corp. acquired 100 percent with rogue waves, fog, icebergs, sea ice, McMahon took Diamond M public in rebuilt each time.” said, ‘You ought to put some big pad eyes the North Sea during the late 1960s, ownership of ODECO in 1991. And, in hurricanes and nor’easter winter storms. 1970, expanding into offshore waters

46 DIAMOND OFFSHORE RIGAMAROLE No . 33 47 with jack-up rigs, posted barges, The purchase created the world’s Offshore’s fleet now stands at 44 rigs, semisubmersible rigs, and a drillship. largest offshore drilling fleet: including 30 semis, one drillship and In the early 1970s, Diamond M was one 52 semisubmersibles, jack-ups, 13 jack-up rigs, with two additional of the largest owners of barge rigs in offshore platform rigs, and a drillship. ultra-premium jack-up units under the industry. The company expanded The company also owned and operated construction, making Diamond overseas into Brazil, Chile, West 32 land-based drilling rigs. Offshore one of the largest drilling Africa, Ireland, Sicily, Tunisia, contractors in the world. And with Australia, and Southeast Asia. Until October 1995, Diamond Offshore more than four decades of real-world, was a wholly owned subsidiary of global drilling experience, the legacies In the late 1970s, Western Oceanic Loews Corp. Then Loews sold of ODECO, Zapata, and Diamond M tendered an offer to buy Diamond M. 30 percent of the company in an initial have produced one of the most trusted Loath to be purchased, Diamond public offering. Diamond Offshore drilling partners in the energy industry. sought and found a “white knight” Drilling began trading on the New York in Kaneb Services, Inc. Stock Exchange under the ticker symbol “DO.” PUTTING THE PIECES TOGETHER In April 1996, Diamond Offshore After the oil collapse of the 1980s, acquired Arethusa (Off-Shore) Ltd. (and Kaneb was fighting bankruptcy. 11 rigs) with stock. This reduced Loews’ Jim Tisch of Loews Corp., New York, stake in the company to 54 percent. had been buying drilling rigs at distress Since that time, Loews’ share in the prices. He approached Diamond M’s company has virtually remained president, Bob Rose, in 1989 with an constant. In December 1996, Diamond M offer to buy a rig. Rose instead offered Onshore was sold to DI Industries, Inc. Tisch the entire company. Tisch agreed. A LEGACY OF In 1992, Diamond M Corp. bought EXPERIENCE WORLDWIDE ODECO (with 40 rigs), briefly Today, all of the barge, platform and changing the company’s name to land rigs acquired in earlier Diamond M-Odeco Drilling Inc. before transactions have been sold and changing the name to Diamond additional semisubmersibles have been Offshore Drilling, Inc., in 1993. acquired. As a result, Diamond

48 DIAMOND OFFSHORE RIGAMAROLE No . 33 49 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2007 WRITTEN BY SCOTT REDEPENNING

This article completes the journey exploration market. Diamond of the Ocean Endeavor’s multi-mil- Offshore remained steadfast to its lion dollar transformation into an strategy of converting existing ultra-deepwater drilling power- rigs to the highest ultra-deepwater house. In 2007, deepwater new- standards. Thus the company was build activity was rampant as rig able to deliver the best technolo- companies and newcomer specula- gies faster at a fraction of the cost tors chased a fast-growing offshore incurred by competitors.

ENDEAVOR(ING) TO SUCCEED THE SHIPYARD PHASE OF THE OCEAN ENDEAVOR CONVERSION FROM MID-WATER SEMI TO ULTRA-DEEPWATER SUPER-RIG HAS BEEN COMPLETED ON TIME AND UNDER BUDGET. THAT IS NO SMALL FEAT IN THE BURGEONING E&P INDUSTRY WHERE OVER 100 NEW RIGS ARE EITHER ON THE BOOKS, UNDER CONSTRUCTION OR HAVE BEEN RECENTLY DELIVERED. FINAL COMMISSIONING IS NOW UNDER WAY.

50 DIAMOND OFFSHORE RIGAMAROLE No . 33 51 “These days, coming out anywhere Endeavor will be more than ready for construction. Crewmembers have near schedule and budget shows its first assignment in the Gulf of helped with equipment installation amazing team integration,” says Mexico for Devon Energy once final and will be there through John Vecchio, Diamond Offshore’s commissioning is complete. But commissioning and testing. Senior VP of Technical Services. before the unit is delivered to any They have been getting familiar with “In fact, a good percentage of the customer, Vecchio stresses that there this rig, as well as going out to budget contingency was returned, is an essential round of intense work on other upgraded Victory which is almost unheard of. And that testing and commissioning, and Class rigs in the fleet to get real is taking into account that these “that is the time we will deal with any hands-on application training. projects are not over-endowed with unexpected issues that may arise.” They have also been completing the high contingencies.” “Right now, the rig is in Singapore training courses required for their harbor awaiting the heavy lift individual jobs. All this so they are The respect attached to this transport ship,” Vecchio says. ready to work even before the rig is. accomplishment is augmented by the “While the Endeavor is there, we are sheer enormity of the project. running the unit through the paces.” “All of these measures are not Upon arrival at Singapore’s Keppel The first step is to make sure required by the client,” Vecchio FELS shipyard in May 2005, the individual components like the concludes. “But we do this to make 2,000-ft. water-depth-rated 2nd electrical and piping are hooked up sure we are delivering a great generation Ocean Endeavor was correctly. Moving to the next level, working product. We also typically stripped to the bare bones and has each major system is checked, such use the same third-party testing now reemerged with all the splendor as the bulk system and mud system. companies that our clients do, so of a Victory Class new-build. Next is a full integration test, where everyone is ahead of the game. The rig boasts 5th generation all systems are brought online and They do not have to duplicate the equipment, over 50,000 sq. ft. actual drilling is simulated. “We dive effort, and we know we are working of usable deck space, 6,000 long tons right in and mix mud, make up pipe, from the beginning to be client-ready.” of operating variable deck load, and do just about everything else that a new integrated hurricane mooring is normally done on the job,” Assuming commissioning goes system, and comfortable accom- Vecchio says. “And we do the work smoothly, the Ocean Endeavor is modations for a 140-person crew. By with the real crew that will currently slated to commence drilling comparison, an equivalent new-build ultimately be working the rig.” in the Gulf of Mexico this summer. would likely be twice as expensive and take significantly longer to finish. Although the upcoming well site is half a world away from where the Designed to drill wells up to 35,000 Endeavor was upgraded, the crew has ft. in 10,000 ft. of water, the been phased in over the course of the

52 DIAMOND OFFSHORE RIGAMAROLE No . 33 53 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2009 WRITTEN BY SCOTT REDEPENNING

In 2009, yet another Diamond regulations set forth for drilling in Offshore ultra-deepwater upgrade the GOM in the wake of hurricanes emerged anew from Keppel FELS Rita and Katrina, making the rig a Singapore shipyard and was coveted catch for operators. This immediately hired for work 13,000 story takes us through the last few miles away in the Gulf of Mexico. stages of commissioning, just days The Monarch’s mooring system before the rig began to flex its new was specially outfitted to meet new capabilities for customers. THE OCEAN MONARCH

AFTER A 2 - ½ - YEAR MASSING OF POWER AND MIGHT, A NEWLY UPGRADED VICTORY CLASS SEMI JOINS THE DIAMOND OFFSHORE ULTRA - DEEPWATER FLEET. IN 1997 BRUCE WILLIS STOOD ON THE HELIDECK OF THE OCEAN MONARCH DRIVING GOLF BALLS AT A GREENPEACE VESSEL. AT THAT TIME, THE MONARCH WAS AN ENSERCH-OWNED RIG AND WAS SERVING AS A MOVIE SET FOR THE FILM ARMAGEDDON. TWELVE YEARS, A NEW OWNER AND $310 MILLION IN UPGRADES LATER, THE MONARCH JOINS HER SISTER RIG OCEAN ENDEAVOR AS ONE OF THE LARGEST CONVENTION- ALLY MOORED FLOATERS IN DIAMOND OFFSHORE’S FLEET, AND ONE OF THE MOST CAPABLE ULTRA - DEEPWATER UNITS OPERATING IN THE GULF OF MEXICO ( GOM ).

54 DIAMOND OFFSHORE RIGAMAROLE No . 32 55 staging area. This work essentially ULTRA-DEEP and 2,000 feet of bottom hole assembly boils down to four major systems and MIGHT with drill collars up to 9-½ inches. DRILLING WELLS TO about two week’s effort. These are The Ocean Monarch started that first On the seafloor thousands of feet perhaps the most elemental systems job as one in an elite group of beneath the Monarch, the wellhead is 35,000 FEET IN UP for actually drilling a well — the draw gargantuan floaters. The 171.5-foot protected by the rig’s state-of-the-art works that lift the drill string, the derrick is hook load rated to 2 million 15,000-psi blowout preventer stack TO 10,000 FEET OF top drive that turns the string to pounds. Riser tension is rated to with an H2S - rated lower marine riser WATER NECESSITATES drill the hole, and the crown-mounted 3.6 million pounds, rotary loads to package and ROV interface controls. compensator and inline tensioner, 2 million pounds and setback to ENORMOUS CAPACITIES. which work with instant precision 1.5 million pounds, which is the pipe The Monarch is certainly built and to cancel wave action and protect weight that can be racked in the equipped to go deep. And going deep in THE MONARCH HAS the drill string and riser from derrick. In all, the maximum combined the GOM makes station-keeping being damaged as the rig heaves in load can reach 6.3 million pounds, particularly challenging, as the rig has OVER 50,000 SQUARE changing seas. with roll or pitch of 2.5 degrees, 6-foot to fight off the Gulf’s infamous high- heave and 70-knot winds. velocity loop current and inevitable FEET OF DECK SPACE THE “LAST” BOAT seasonal hurricanes. The Monarch OUT OF SINGAPORE Drilling wells to 35,000 feet in up to faces nature down with 12 Stevpris AND CAN HANDLE Normally commissioning takes place 10,000 feet of water necessitates 15-ton anchors: eight standard plus at or near the original shipyard. enormous capacities. The Monarch has four storm units, which at times will 6,000 LONG TONS OF And the majority of the Monarch’s over 50,000 square feet of deck space likely be deployed outside of hurricane commissioning was carried out in and can handle 6,000 long tons of season for extra assurance. Few rigs VARIABLE DECK LOAD. Singapore. But to make the 13,300- variable deck load. The rig has a drill- have a mooring system this robust. mile journey from Singapore to the water capacity of 12,915 barrels, fuel GOM with any semblance of time oil of 6,895 barrels, liquid mud of The standard chain-to-wire anchors efficiency, the rig would have to be 9,945 barrels, bulk mud storage of are held by 3-¾-inch wire with a dry-towed on a heavy-lift vessel, and 13,300 cubic feet and 11,000 cubic feet breaking strength of 1.73 million those ships were in tight supply. of bulk cement storage. At any given pounds, while the storm anchors time, the Monarch can comfortably employ 3-⅞-inch wire with a breaking COMMISSIONING new-build unit with about 85% virgin came together at Keppel FELS.” “We hadn’t finished everything in house and feed a crew of 150 people. strength of 1.825 million pounds. Turn back the clock about 20 days. structural work and all new state-of-the- Having so many new components and Singapore, but we already had the When deployed, the four additional The Monarch floats in a staging area, art equipment systems. such a large rig makes commissioning Blue Marlin booked, and we had The equipment list is equally storm anchors add up to 40% more moored on a 250-foot deep shelf in quite the formidable task. “In all, there a start date for our contract fixed in impressive. One corner of the deck holding capacity than the conventional the GOM an hour’s chopper ride from “We basically built it from scratch,” were about 6,000 items on our list, each the GOM. So when the vessel arrived, houses Oceaneering’s Millennium eight-point mooring system alone. the New Orleans International Airport. Walton says. “What little we kept was needing its own test, inspection and we elected to complete our Magnum Class ROV, a remotely This conveniently accessible location carefully inspected to ensure its positive result before moving on,” commissioning in the Gulf rather than operated vehicle system. Halliburton’s Monarch Operations Manager Chad is where the final stages of rig comm- soundness.” ( That “little” was primarily Walton says. “Once the majority of the paying demurrage on the only ship HCS-ISO Advantage Combo Williams calls extra attention to this issioning took place. Commissioning the massive hull, originally overbuilt for steel work is done, you test your engines available that could meet our schedule,” Cementing Skid claims another corner. last feature. “The 2005 hurricane is the process of proving that everything the rigors of the North Sea, with the and generators, power distribution says Walton. “But we’ll be fine. Mud can be driven miles beneath the season had several storms that sent a on the rig performs as it should, from fatigue life of its main columns and systems, emergency control systems, Some things we accomplished seafloor via four National Oilwell number of rigs adrift. After that the smallest electrical circuit to the pontoons measured at over 100 years. lighting, saltwater pump, drill water dockside in Singapore before we left Varco 14P-220 triplex mud pumps we knew there would be new industry major pieces of equipment to the rig So strong, in fact, is that hull that it can pumps, fuel pumps, transfer pumps, because it’s more efficient to get rated at 7,500-psi discharge, driven by standards for mooring in the Gulf of as a whole, with all systems working in accommodate the large amount of purifiers, electrical controls, agitators, people and equipment to the rig. two GE 1,100-horsepower DC motors. Mexico,” he says. “But Diamond unison to simulate a real drilling additional flotation capacity necessary shakers, degassers, mixing pumps, But there are other things you do at Offshore didn’t wait for those to be operation. to support the weight of the giant new charge pumps, mud pumps, blowout anchorage, like offshore All of these systems surround a established. We refitted virtually our superstructure that was added. ) preventer system and controls, deck commissioning and final crew leading-edge NOV drilling package entire GOM floater fleet with a This “systems integration test” is a “Everything else,” Walton continues, cranes, knuckleboom crane, bridge familiarization and training. built to perform in high seas, with a 12-point mooring system. And we also finish line that Project Manager Aubrey “was created as modular components cranes, iron roughneck, bridge rackers, The GOM staging area is a good place crown-mounted compensator rated mandated that any of our new rigs Walton was eager to cross. He’s been offsite in about 20 fabrication facilities finger boards, horizontal to vertical to finish those items because it’s to a 25-foot stroke with a 1-million- destined for the Gulf be outfitted with with the Monarch since August of 2006, around Singapore, which were then sent pipe handling machines and mouse hole only a short ride from land by boat pound capacity that doubles to storm mooring systems. when it arrived at Keppel FELS shipyard to the shipyard for assembly. We also rotary. Just to name a few,” he adds. or helicopter and only a short tow 2 million pounds when closed and in Singapore for the upgrade. He and his had major parts of the lower hull built in Only 205 commissioning details of the away from our first job.” locked. The derrick’s racking platform This protects our property and the team then commenced transforming the China and Indonesia. All these pieces original 6,000 remained unchecked has removable fingers that can interests of our clients while keeping rig into its current state — virtually a were scattered everywhere and then when the rig was towed to the GOM accommodate 34,000 feet of 6-⅝-inch the rig from going adrift.” drill pipe, some of the largest available, The measures we took to expand and

56 DIAMOND OFFSHORE RIGAMAROLE No . 33 57 strengthen the mooring systems on instead of a check valve on the BOP, panels and exposed wires. Yet in a our GOM floaters following hurricanes the installation of hard piping to allow matter of days the rig and crew will be Rita and Katrina proved very effective, more convenient hookups for well test prepared to drill. This readiness is as all of our rigs held station during equipment during completions, possible because the Monarch has Ike and Gustav in 2008. In fact, four of modifying the derrick to handle bigger sister rigs out there drilling with our floaters were directly in Ike’s path, drill pipe and specifying a more similar equipment, and much of the but weathered the storm without stalwart well-head connector. crew has been hand- picked from those significant incident. And the overall units. It was a tough job for Phil Tobey, performance of our GOM floaters “There’s one other thing about this Area Manager over the Monarch, during the storms earned us a relationship,” LaSade continues. Endeavor, Baroness and Ambassador. commendation from the Minerals “Anadarko has a very prominent He had to pull crew from some of Management Service for the initiative known as IIF, which stands his prize vessels and get many effectiveness of our efforts. for the Injury Incident Free workplace. of the personnel involved with the Our goals are to protect people and Monarch well before the rig would ever DRILLING the environment, and Diamond begin operations. FOR Offshore is completely on board with ANADARKO that in their own initiatives”. “We brought a lot of the guys over The most interested client currently while the rig was in Singapore, like the aboard the Monarch is Choney LaSade, Chad Williams embellishes the point. drilling teams, electronic technicians, Anadarko’s Drilling Superintendent for “Our rig is on Anadarko’s budget, so of subsea engineers, maintenance techs Deepwater Drilling. Anadarko’s course we want to perform for them and mechanics. Our goal was to get operations in the GOM represent about without downtime. Our job is to get them familiar with the systems so they 25% of the company’s revenue, and the well down fast and get it down safe. can hit the sea running when the rig’s LaSade is ready to put the Monarch to Their spread costs are well over a ready to go,” he says. “We also trained work to bolster that number. million dollars a day, with our rig being people on our sister rigs, since the about 40% of that. Anadarko needs a equipment systems are a lot like the “We’re looking to drill sub-salt wells performer — a company that can do it Monarch’s. There seems to be a lot of about 30,000 feet down in water about faster, deeper and safer. We work hard pride among the guys about coming to 7,000 feet deep,” he says. “We’ve to be that company. We set stringent this brand new rig.” worked with Diamond Offshore rigs policies and procedures for health, for several years now, primarily the safety and environment, we train our Confidence, and a healthy dose of 5,500-foot rated Ocean Star, but we’ve people well, and we hold them anxiety is apparent in the demeanor of never contracted one that could handle accountable to carry our high Driller David Punchard, who is wells quite like this. So we were glad standards forward.” overseeing the finishing touches in his to see the Monarch come out, and we driller’s shack and will soon put down hired it for a four-year term.” This commitment is already being the Monarch’s first string of pipe. LaSade adds that the Monarch’s proven out by hard statistics. “I’ve run a driller’s chair similar to this capabilities were only part of the The Monarch has not logged a on the 10,000 - foot - rated Ocean reason for the contract. “We have Lost Time Incident ( LTI ) since coming Confidence, but there are some new always had a great relationship with out of the shipyard in Singapore. bells and whistles on this one,” he says. Diamond Offshore. I appreciate that This is a significant record given the the communication is always very nature of the commissioning work “I’m a little nervous about it, to be open. While the Monarch was being and the urgent pace that was set to get honest, but I know it’s going to be great. upgraded, my team went to Singapore the rig ready for drilling. We have a good team and everyone’s with the Diamond Offshore team always more than happy to help. And, numerous times to collaborate and TRAINED you know, there comes a time when share knowledge. We believe in this TO PERFORM you get used to what you’ve been doing, company and rig enough that Again, step back a mere two weeks and you want to step out a bit and Anadarko put some of its own capital prior to the Monarch’s first job. learn something new.” into the upgrade.” No drill pipe has been made up; no mud has been mixed. The BOP stack These client-funded improvements and ROV haven’t seen a drop of include angling the mud pits for easier seawater yet. For the moment the cleaning, installing a hydraulic valve futuristic driller’s chair is all open

58 DIAMOND OFFSHORE RIGAMAROLE No . 32 59 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION FALL 2009 WRITTEN BY SCOTT REDEPENNING Over the decades, through market game. But when the downturn came, booms and busts, Diamond Offshore some couldn’t make good on their has managed to navigate a steady commitments. Diamond Offshore course. This is because the company moved to take over defaulted strategically zigs when others zag. construction contracts on three The global credit crisis of 2008 rigs that were nearly complete. The presented such an opportunity. company gained state-of-the-art When oil prices were at record highs, assets at a fraction of newbuild costs. many jumped into the newbuild

GAINING COURAGE AS THE PRICE OF OIL MADE ITS SPECTACULAR CLIMB PAST $140 A BARREL IN JULY 2008, DRILLING COMPANIES CLAMORED TO GET NEW - BUILD ORDERS INTO SHIPYARDS AROUND THE WORLD. NOW LOP $75 TO $100 OFF THAT OIL PRICE, AND THROW IN A GLOBAL CREDIT CRUNCH, AND SUDDENLY SOME OF THESE NEW RIGS ARE STANDING NEAR COMPLETION WITH DEFAULTED CONSTRUCTION PAYMENTS. ONE SUCH RIG WENT ON THE AUCTION BLOCK LAST SUMMER AND, FOLLOWING THE SALE, EMERGED UNDER A NEW NAME, THE OCEAN COURAGE — A HULKING DYNAMICALLY POSI- TIONED UNIT CAPABLE OF DRILLING 40,000 - FOOT WELLS IN 10,000 FEET OF WATER.

60 DIAMOND OFFSHORE RIGAMAROLE No . 32 61 The Courage is now mobilizing to the and they’ve paid for themselves two or 3.5 million pounds of riser tension and raw power, which comes from eight conventional vessels. Both 13 - year convenient,” Annis says. deep waters of the Gulf of Mexico three times over in the past few years. 2 million pounds of tubular setback. Caterpillar C280 engines split between Diamond Offshore veterans, Gorman Clint Bailey, senior DP operator and the ( GOM ) where the first contract wells Buying the Courage is an extension of Smart fingerboards rack various two separate engine rooms and capable and Annis are effectively training each captains’ right - hand man on the will be drilled. This is an 80 - day, that opportunistic philosophy, finding diameters of drill pipe up to 6 ⅝ - in., as of putting out a collective 40,000 other, so by the time the rig starts bridge, enthusiastically adds his 13,300 - mile wet tow through the value at an attractive price.” well as casing and drill collars. Plus the horsepower. Being a dynamically drilling, each will be a full - fledged OIM observations of the Courage’s Sunda Straits, across the Indian Ocean, derrick supports efficient offline positioned rig with no anchors holding captain who is proficient in DP. Then capabilities. “This is a state - of - the - art around the Cape of Good Hope, across Before acquiring the Courage, building of four - joint drill pipe stands the vessel in place over the wellhead, they’ll be able to alternate hitches and system. There are very few rigs out the Atlantic Ocean and finally to the Diamond Offshore was already well and three - joint casing stands the majority of those horses are be the other’s relief. Smith is also a there that are its equal,” he says. GOM. Yet the journey the Courage has positioned with deepwater equipment, simultaneously with drilling allocated to the thrusters mounted veteran Diamond hand. “There are cameras all over the rig so we made to arrive on Diamond Offshore’s due to relatively recent Victory - class operations. Riser sections can be underneath, eight 15 - foot propellers can look anywhere and everywhere rig roster is equally as remarkable. upgrades for the Ocean Baroness, racked vertically as well. that automatically pivot and adjust to Gorman states that the timing couldn’t from right here. We can also monitor Ocean Rover, Ocean Endeavor and keep the Courage perfectly in place and be better for adding a robust DP vessel our fire systems, ventilation, emergency UPWARD Ocean Monarch, two 7,500 - ft. rated The Courage handles 7,000 metric tons the riser at a safe angle, no matter what to the Diamond Offshore fleet, even shutdowns, deluge system and ballast THROUGH THE units and two 10,000 - ft. rated units, of variable deck load, readily the wind, waves and currents are doing. beyond the obvious boon of getting the system. We can even run that ballast DOWNTURN respectively — all conventionally accommodating up to 42,000 feet of rig at a low purchase price. system on full automatic to keep us on The oil & gas industry is down, with moored semisubmersibles. drill pipe and 10,000 feet of riser, as STEERING “Ultra - deepwater is where operators an even keel — that’s never been done cautious optimism in near - term These also fit the Diamond Offshore well as major equipment systems like THE BOAT want to go, and DP rigs are particularly before. Plus the amount of power on forecasts. But according to Ocean strategy, Richards points out. the 15,000 - psi - rated Schlumberger Each of the eight Rolls Royce UUC 355 popular in this environment because of this vessel is incredible. On simulation Courage Area Manager Jon Richards, “Each upgrade took less than two years MD1000 cementing unit and full - azimuth thrusters is capable of their versatility,” she says. “You don’t we can drill in 100 knots of wind and challenging times like these are when and resulted in an essentially brand Oceaneering’s Magnum Class ROV producing 66.4 metric tons of have to go through a long mooring - up hold station. As for forward speed, Diamond Offshore sees opportunities. new ultra - deepwater rig. Building one with control and maintenance shacks. propulsion in any direction on very process when you arrive on location. the vessel was pushed up to 10 knots “The growth strategy of this Company from scratch would have taken twice The rig can hold 14,613 barrels of drill short notice. These thrusters take their You don’t have to hire anchor boats in sea trials, which is amazing. has always been to acquire assets as long and cost twice as much,” he water, 21,043 barrels of fuel oil, 12,178 direction from the vessel’s and lay out an anchor pattern. We normally wouldn’t sail that fast, during downturns where you can get says. “Instead of spending capital and barrels of liquid mud in the lower hulls Class 2 Kongsberg K - Pos Dynamic In fact, you can get to work on the well but this rig can obviously perform.” iron at a reduced price, and that’s what waiting, we’ve got our new rigs out plus another 6,808 barrels of mud in Positioning package, a triple - redundant almost immediately once you arrive. they’ve done here,” he says. “If we had there earning dayrates. The Courage the pits. More than 34,100 cubic feet digital control system that keeps the rig DP rigs are also ideal for highly A NEW placed an order for this class of vessel acquisition is simply a twist on that are set aside for bulk mud and cement fixed squarely over the well by following developed fields, like the areas we’re CREWING a year ago, we would have waited three approach. And with the Courage, storage, and 17,340 square feet of heading data from two differential likely headed to in the Gulf of Mexico. APPROACH years for delivery, and the price would we have added a fifth DP rig to our storage is available to hold 6,100 sacks. GPS units, as well as hydro - acoustic Developed fields have lots of pipelines Many of the major components on the have been more than $700 million. As fleet that’s as capable as, or more There’s also ample room for personnel, beacons placed on the seafloor. and other subsea infrastructure on the Courage are new to Diamond Offshore. it stands, we’re getting a rig that’s capable than, virtually any semi in with ultra - modern living facilities bottom, making it difficult to drop an The Aker Solutions drilling package is essentially ready to work now, and we deepwater today. This is definitely designed to comfortably feed, house All DP functions are run from a bank of array of anchors. But DP rigs can go and the first in the Company’s fleet. won the bid with a $460 million offer. leading - edge technology.” and office up to 164 crew members. widescreen monitors and input panels work just about anywhere.” The Kongsberg DP technology is leading That’s win - win.” that traverse the full length of the edge. Plus all of the rig’s systems are DYNAMIC Far beneath the waves, the Courage spacious bridge, a system that is also Annis points out other practical benefits digitally integrated at unprecedented Although adding assets at bargain STRENGTH deploys a touch - screen - controlled duplicated in the engine rooms for an of having DP thrusters on the bottom of levels for performance and safety. prices is standard for Diamond The Courage’s first job will be to drill a 18 ¾ - in. x 15,000 - psi Cameron TL extra measure of control versatility. the rig, especially in the GOM during Even doing something as seemingly Offshore, this practice has never series of wells for Petrobras ranging blowout preventer stack and hurricane season. “The Courage is simple as moving mud from pit to pit is a before come in the form of a from 25,000 to 31,000 feet in about H2S - rated lower marine riser package The Kongsberg system employs basically a ship that can move under its complex touch - screen maneuver. completely new rig, according to Neil 8,300 feet of water. While these are no with ROV interface panels. The riser advanced computerization and own power,” he says. “That means we Add in the fact that the rig is due to go to Hall, operations manager for the mere shakedown starter wells, the rig package includes 21 - in. outer diameter sophisticated algorithms to can motor right out of the path of work in a matter of weeks, and Courage. “Normally, you can’t go out is built to handle much more. “In the x 75 - foot Cameron Loadking joints, automatically steer the vessel, yet all oncoming storms. We just pull the riser according to Courage Drilling Supt. and buy cutting - edge technology at Gulf of Mexico, you have to drill big or and an Aker Marine DAT riser this technology sits idle and ineffective and BOP stack and go. Then after the David Hammond, “We’ve got quite the discount prices brand new out of the go home,” says Hall. “And this rig can tensioning system rated to a total unless there are talented hands at the storm passes, we can quickly get back steep learning curve to climb. shipyard. But these are not normal certainly drill with the biggest.” stroke of 50 feet. controls. This responsibility falls to the on location and working.” Having this times,” Hall says. “Our strategy is offshore installation managers / captains kind of mobility has its less - dramatic “With all of our other new - builds and usually to buy rigs that other Atop a 324 x 299 - foot lower hull, the Fully loaded with equipment, tubulars, of the Courage, Michelle Gorman, uses as well. As the sun arcs across the upgrades, we’ve been 100% on top of companies don’t see value in anymore. superstructure rises 118 feet to a supplies and personnel, the Courage Richard Annis and Carl Smith. Gorman, sky during operations, the driller often everything from the beginning. Cases in point are the Ocean Vanguard sprawling 244 x 244 - foot main deck, tips the scales at 46,700 metric tons, who happens to be the first female OIM catches a blinding glare off the glass of This time it’s more like buying a car and Ocean Patriot. We bought these crowned by a massive derrick that and yet the rig is incredibly captain in Diamond Offshore history, the driller’s shack. One call up to the right off the lot,” Hammond says. mid - water units for $65 million each soars another 210 feet skyward. nimble — an efficient, fully automated was hand-picked because she brings bridge can get the DP crew to rotate the “Normally on a vessel like this, we’d have in a previous down - cycle when many The derrick is rated to handle machine designed to drill deep and get extensive DP experience to the job. rig to put the sun at a better angle, operations people on board for at least a in the industry thought they might 2 million pounds of hook load, there fast. Wielding this kind of Annis, on the other hand, offers longtime without interrupting operations. “Being year, sometimes two years prior — going never work again. But work they have, 2.5 million pounds of static load, deepwater might takes considerable captain experience from his stints on free of anchor chains can be very through all the schools and training to

62 DIAMOND OFFSHORE RIGAMAROLE No . 33 63 “ULTRA - DEEPWATER IS WHERE OPERATORS WANT TO GO, AND DP RIGS ARE PARTICULARLY POPULAR IN THIS ENVIRONMENT BECAUSE OF THEIR VERSATILITY.” get ready to run the rig. Obviously, we Diamond Offshore coveralls — a man an original crew member as relief,” don’t have that kind of time.” who takes considerable paternal pride he says. “This really facilitates Corners, however, will not be cut. in the Courage. He was there when information exchange both ways. Diamond Offshore has found a way to the rig was born from a slab of steel and One will be strong in Diamond gain back some of that lost time helped raise the structure up into Offshore’s management system and through a unique crewing strategy the giant it is today. Chrisovergis is in how we do business, and the other will that’s as new to the Company as the rig the drilling department, but he’d be have the technical understanding of itself, Jon Richards explains. happy to tell you about every detail the rig. Each will bring the other up to “This rig was fully crewed by the of every system on board. He knows the speed. “It’s an ideal situation,” company that commissioned Courage top to bottom, which Hall continues. “But it’s not easy. construction of the rig before they ran makes him a valuable resource to Before we can pull a crew member into financial difficulties and were Diamond Offshore. from one of our working rigs, we have forced to sell the unit. As soon as we to fill the position with a trained won the bid for the rig, we quickly “This Aker drilling package is incredibly person, so we don’t leave the other rig called as many of the original crew as complex, so our philosophy is that short. For example, we specifically we could, from the highest positions everyone needs to get trained chose Michelle Gorman for the down, and brought them in to Houston everywhere,” he says from one of the OIM job, but it took two months to get for interviews. We needed the three high - tech control chairs in the her here. This is no normal rig experience they’d already gained on driller’s shack. “Even a deckhand will compared to most of our others, so we this rig as it was being constructed, be trained to drill. were very careful about looking around and we needed the labor to keep from our fleet to find the relevant having to draw so heavily on our other That way we’re always ready to step experience, the right leadership skills rig crews. We were very fortunate to into any task, no matter what. and the best attitude.” hire about 50% of our current crew on We want to get the mistakes, what I the Courage from that group. call burps, out of the way during Jon Richards puts the crewing strategy training before we’re out there in frank perspective. “We’ve got a “The interviews showed that these working. But this system also is so unique situation here,” he says. people had been hand - picked. automated with so many safety “Deepwater is the future, and ambitious They had previously worked for major measures built in, it’s hard to individuals want to step up to the drilling contractors, so we felt very make a mistake. I’m lending my newest technology and advance their good about these hires. Many had experience to the training, but we’ve careers. We have people coming from spent more than a year on this rig, all got a lot to learn.” different companies and areas of the and we needed to retain that world just to be on this rig. Now we knowledge base. It was also good that As for the Diamond Offshore have the opportunity to instill in them we didn’t have to pull too much personnel who were drawn from other a culture of safety and a solid work talent off our other rigs.” rigs, Neil Hall says there was a ethic. We get to Diamondize them, so strategy in this process, too. to speak. We’ve got all these different Toolpusher Vince Chrisovergis is one of “In several key positions, we have a talents, and it’s up to us to put them in the original hands who now dons Diamond Offshore veteran paired with the right place to make this rig all it

64 DIAMOND OFFSHORE RIGAMAROLE No . 33 65 RIGAMAROLE TURNS TEN

ORIGINAL PUBLICATION SPRING 2013 WRITTEN BY SCOTT REDEPENNING As the global recession of the late spec dynamically positioned drill- 2000s dragged on, shipyards began ships that rank at the top of the offering newbuild contracts at dras- world’s most advanced ultra-deep- tically reduced prices. With charac- water drilling units. The ships began teristic financial sagacity, Diamond securing contracts long before con- Offshore moved to take advantage of struction was complete. The Ocean the opportunity. This article intro- BlackHawk and Ocean Onyx have duces the seven new rigs that were now begun working, and all of these ordered—highlighting four high- units have secured term contracts.

SETTING SAIL WITHIN THE NEXT TWO YEARS, DIAMOND OFFSHORE WILL LAUNCH THREE ULTRA-DEEPWATER DRILLSHIPS, A DEEPWATER SEMISUBMERSIBLE, AND AN ULTRA-DEEPWATER HARSH ENVIRONMENT SEMISUBMERISIBLE. ALL OF THE RIGS ALREADY HAVE CONTRACTS AND WILL HEAD DIRECTLY TO WORK.

66 DIAMOND OFFSHORE RIGAMAROLE No . 33 67 Design: Gusto P10,000 DW ultra deepwater drillships Classification: ABS, A1 Drillship semisubmersibles - Dimensions: 754 ft long x 118 ft wide x 59 ft deep Draft: 36 ft operating / 29 ft transit ocean onyx (DELIVERED) Displacement: 70,000mT operating ocean blackhawk (DELIVERED) Variable Deck: 22,045T operating GENERAL ocean blackhornet Transit Speed: up to 12.5 knots Water Depths: 12,000 ft designed / 10,000 ft outfitted ocean apex ocean greatwhite ocean blackrhino Drilling Depth: 40,000 ft ocean blacklion Design: Enhanced Victory Class/Crucifix Form Design: Moss CS60E Design 6th Generation, Derrick: NOV Dual Bottleneck, 210 ft high with 80 ft x 60 ft Classification: ABS Column Stabilized Drilling Unit Harsh Environment base, combined hook load capacity of 4,000 kips Dimensions: 361 ft long x 320 ft wide x 128 ft high Classification: DNV +1A1 Column Stabilized Drilling Unit Drawworks: (Main): NOV / AHD 1250, six AC electric Draft: 76 ft operating / 28 ft transit Dimensions: 402 ft long x 255 ft wide motors, 9,000hp total, 1,250T with sixteen 2 1/8” Displacement: 49,855LT operating Draft: 77 ft operating drilling lines Variable Deck: 7,000LT operating Displacement: 67,400T operating GENERAL

(Aux): NOV / AHD 750, five AC electric Transit Speed: up to 3.8 knots GENERAL Variable Deck: 7,500T operating motors, 5,750hp total, 750T with fourteen 1 3/4” Water Depths: 6,000 ft designed / 5,000 ft outfitted Transit Speed: up to 8 knots drilling lines Drilling Depth: 30,000 ft Water Depth: 10,000 ft Compensator: Active Heave Compensating Drawworks Drilling Depth: 35,000 ft

DRILLING Rotary Table: (Main): NOV RST 75 1/2” hydraulic, 1,375T static Derrick: NOV, 185 ft high with 40 ft x 40 ft base, (Aux): NOV RST 60 1/2” hydraulic, 1,000T static load capacity of 2,000 kips Derrick: NOV, 210 ft high with 49 ft x 52.5 ft base, Top Drive: (Main): NOV TDX-1250, 1,250T with 7,500 psi Drawworks: NOV UDBEL 2040, four DC electric motors, load capacity of 2,500kip, capable of 900T setback (Aux): NOV TDS-8SA, 750T with 7,500 psi 1,000hp each, with 2” drilling line Drawworks: NOV SSGD, five AC electric motors, 1,150hp each, Tubular handling: 2 x NOV MPT ‘Hydraulic Roughneck’ for tubular Compensator: NOV drill string motion compensator, 2,000kip capacity, fourteen 2" drilling line range 3 1/2” to 9 3/4” + 2 x NOV HR IV-ER 800 kips capacity with 25 ft stroke Compensator: NOV 1,000t static, 500t dynamic capacity, Mud Pumps: 5 x NOV 14-P-220, 2,200hp, 7,500 psi Rotary Table: NOV RST, 49 1/2” 25 ft stroke with Active Heave Compensation DRILLING Top Drive: NOV TDX-1000, 1,000T with pipe handler DRILLING Rotary Table: NOV, 60 1/2", 1,250t Main Power: 6 x Himsen diesel engines rated Tubular handling: NOV ST-120 Iron Roughneck for tubular range Top Drive: NOV TDX-1000, 1,000t 4,500kW, each driving 5,375 kVA AC generators 3 1/2” to 10” + NOV BR-10-SD-D bridge racker Tubular handling: 2 x NOV ARN-270 Iron Roughneck with full offline 2 x Himsen V-type diesel engines rated Mud Pumps: 4 x NOV 14-P 220, 2,200hp, 7,500 psi standbuilding + 2 x NOV Vertical Hydrarackers-IV-ER 9,000kW, each driving 10,875 kVA AC generators Mud Pumps: 4 x NOV 12 P-220, 2,200hp each, 7,500 psi POWER Emergency Power: V-type Cummins diesel engine rated 1,900kw Main Power: 5 x Caterpillar C175 Tier II diesel engines rated driving 1x STX engine rated 1,550kW AC generator 2,400hp each with 4,160 VAC generators Main Power: 8 x HH1 HiMSEN 12H32 Tier II diesel engines rated Emergency Power: 1 x Caterpillar C32 engine rated 720 kW approx 6,120 kVA AC generators POWER

Liquid Mud: 15,204 bbls POWER Base Oil: 7,209 bbls Liquid Mud: 10,798 bbls Brine: 13,175 bbls Base Oil: 3,315 bbls Liquid Mud: 13,332 bbls Drill Water: 18,593 bbls Brine: 2,000 bbls Base Oil: 3,962 bbls Potable Water: 8,834 bbls Drill Water: 15,456 bbls Brine: 3,962 bbls STORAGE Bulk Material: 16,315 ft3 (barite + bentonite) + 15,891 ft3 (cement) Potable Water: 1,002 bbls Drill Water: 12,326 bbls Potable Water: 5,220 bbls Sack Storage: 6,000 sacks STORAGE Bulk Material: 27,010 cu ft (mud + cement) Sack Storage: 5,000 sacks STORAGE Bulk Material: 30,366 cu ft (mud + cement) Sack Storage: 5,000 sacks Knuckle-boom: 1 x 100 ton + 2 x 85 ton knuckle-boom AHC Subsea: 165 ton Active Heave Compensation 1 x 56 ton SeaTrax 6032 with 150 ft boom knuckle-boom 1 x 56 ton SeaTrax 7224 with 160 ft boom 2 x 100t SeaTrax 10832 with 200 ft boom CRANES 1 x 68 ton SeaTrax 9040 with 160 ft boom 1 NOV gantry crane for riser handling 1 x 12T NOV knuckle boom crane for tubular handling

CRANES 1 x 34.4mT NOV knuckle-boom crane for riser and tubular handling Diverter: Vetco CSO 21 1/4” 500 psi diverter with 1 x 20” CRANES flow line + 2 x 16" overboard diverter lines BOP Stacks (2): Hydril 18 3/4” 15,000 psi seven-ram preventer Diverter: Vetco 24” (ID) 500 psi with 16” flow line Diverter: 60" Shaffer 21 1/4", 500psi with 18" flow line 2 x Hydril 18 3/4” 10,000 psi annular preventers BOP Stack: Shaffer 18 3/4” 15,000 psi five-ram preventer BOP Stack: Shaffer 18 3/4” 15,000 psi six-ram preventer C&K Manifold: 3 1/16”, 15,000 psi Shaffer dual 18 3/4” 10,000 psi annular preventers 3x NXT Double 22" Operators LFSR-CVX

SUBSEA Marine Riser: Vetco HMF Class H 21”, 75 ft long per joint C&K Manifold: 3 1/16”, 15,000 psi Full API Std 53 and BP GP10-10/10-11 compliance Tensioners: 16 x 225 kips NOV wireline riser tensioners. Total Marine Riser: Shaffer FT-E, 75 ft long per joint C&K Manifold: 3 1/16”, 15,000 psi SUBSEA capacity 3,600 kips with 50 ft of wire travel SUBSEA Tensioners: 8 x 200 kips Dual Rucker wireline riser tensioners. Marine Riser: Shaffer FT-H 10,000ft, 21" OD, 75 ft long per joing Moonpool: 73 ft x 42 ft Total capacity 1,600 kips with 50 ft of wire travel Tensioners: 8 x 450 kips double wireline riser tensioners Moonpool: 22 ft x 81 ft Total capacity 3,600 kips with 50 ft of wire travel Moonpool: 29.5 ft x 91.8 ft Thrusters: 6 x Thrustmaster, 5,000kW azimuth thrusters with fixed pitch variable speed propellers Mooring System: (8) 3 1/4” x 4,200 ft RQ5 chains, DP System: Kongsberg K-POS (8) 3 3/4” x 8,800 ft wires, Mooring System: Fitted with (2) 84mm x 320mm R5 chains w/ 18mT Dual Activity: Yes (8) 15T Stevpris MK6 anchors Stevpris Mk6 anchors for harbor mooring, capacity for (8) 84mm x 2,200m R5 chain

OTHER Accommodation: 210 people

OTHER Accommodation: 140 people; NR-30 compliant Helideck: Sikorsky S-61 & S-92 Helideck: Sikorsky S-92; CAP 437 compliant OTHER Accommodation: 180 people Helideck: EH-101 or S-92; CAP 437 compliant

2014 2015 2016 milestones to completion SHIPYARD DELIVERY DATES ocean blackhawk ocean apex ocean blacklion ocean greatwhite CONTRACT ocean blackrhino ANADARKO ocean blackhornet ocean onyx CONTRACT 68 DIAMOND OFFSHORE APACHE RIGAMAROLE No . 33 69 RIGS & LOCATIONS DIAMOND OFFSHORE RIGS BY TYPE AND LOCATION RIGAMAROLE THE NEXT TEN

AUSTRALIA TYPE DEPTH(ft) EQUIPMENT TRINIDAD AND TOBAGO

OCEAN AMERICA SS 5,500 SP; 15K; 3M; 5R OCEAN LEXINGTON SS 2,200 3M; 4R

BRAZIL UNITED KINGDOM

OCEAN COURAGE SS 10,000 DP; 15K; 4M; 6R OCEAN PATRIOT SS 3,000 15K; 3M; 5R OCEAN VALOR SS 10,000 DP; 15K; 4M; 6R OCEAN PRINCESS SS 1,500 15K; 3M; 4R OCEAN BARONESS SS 8,000 VC; 15K; 4M; 4R OCEAN GUARDIAN SS 1,500 15K; 3M; 5R OCEAN ALLIANCE SS 5,250 DP; 15K; 3M; 4R OCEAN NOMAD SS 1,200 3M; 4R OCEAN WINNER SS 4,000 3M; 4R ¯ OCEAN VANGUARD SS 1,500 15K; 3M; 4R OCEAN WORKER SS 4,000 3M; 4R VIETNAM ¯ OCEAN YATZY SS 3,300 DP; 4R ¯ OCEAN CONCORD SS 2,300 3M; 4R OCEAN QUEST SS 4,000 VC; 15K; 3M; 4R

CANARY ISLANDS

OCEAN CONFIDENCE SS 10,000 DP; 15K; 4M; 6R OCEAN VALIANT SS 5,500 SP; 15K; 3M; 4R MAP LOCATIONS

COLOMBIA 1 GULF OF MEXICO (U.S. AND MEXICO) 8 SEMISUBMERSIBLES OCEAN CLIPPER DS 7.875 DP; 15K; 3M; 5R 1 DRILLSHIP ECUADOR 5 JACK - UPS

OCEAN SPUR JU 300 IC 2 BRAZIL / S. AMERICA GOM (U.S. AND MEXICO) 9 SEMISUBMERSIBLES 1 DRILLSHIP OCEAN BLACKHAWK DS 12,000 DP; 15K; 5M; 7R 1 JACK - UP OCEAN ONY X SS 6,000 VC; 15K; 4M; UC; 5R OCEAN VICTORY SS 5,500 VC; 15K; 3M; 5R 3 NORTH SEA OCEAN STAR SS 5,500 VC; 15K; 3M; 4R 5 SEMISUBMERSIBLES OCEAN YORKTOWN SS 2,850 3M; 4R 4 MEDITERRANEAN / W. AFRICA / BLACK SEA ¯ OCEAN SARATOGA SS 2,200 3M; 4R 3 SEMISUBMERSIBLES OCEAN AMBASSADOR SS 1,100 3M; 4R 5 AUSTRALASIA OCEAN KING JU 300 IC; 3M 8 SEMISUBMERSIBLES (2 UNDER CONSTRUCTION) OCEAN TITAN JU 350 IC; 3M 3 DRILLSHIPS (UNDER CONSTRUCTION) OCEAN SCEPTER JU 350 IC; 15K; 3M OCEAN NUGGET JU 300 IC KEY OCEAN SUMMIT JU 300 IC LEARN MORE ABOUT OUR NEWEST ULTRA DEEP- ¯ OCEAN WHITTINGTON SS 1,600 3M SS SEMISUBMERSIBLE ¯ OCEAN NEW ERA SS 1,500 3M; 4R DS DRILLSHIP WATER DRILLSHIPS IN THE NEXT ISSUE JU JACK-UP INDONESIA UC UNDER CONSTRUCTION ¯ OCEAN GENERAL SS 3,000 3M; 4R DP DYNAMICALLY POSITIONED / ( SP ) - MALAYSIA IC INDEPENDENT LEG CANTILEVERED RIG VC VICTORY CLASS OCEAN MONARCH SS 10,000 VC; 15K; 4M; 5R SP SELF - PROPELLED OCEAN ROVER SS 8,000 VC; 15K; 4M; 5R 3M THREE MUD PUMPS ¯ OCEAN EPOCH SS 3,000 3M; 4R 4M FOUR MUD PUMPS ROMANIA 5M FIVE MUD PUMPS 15K 15,000 - PSI WELL CONTROL SYSTEM THE OCEAN ENDEAVOR SS 10,000 VC; 15K; 4M; 5R 4R FOUR RAM BOP 5R FIVE RAM BOP SINGAPORE 6R SIX RAM BOP ² OCEAN APE X SS 6,000 VC; 15K; 4M; UC; 5R 7R SEVEN RAM BOP ² UNDER CONSTRUCTION SOUTH KOREA TYPE DEPTH(ft) EQUIPMENT ¯ COLD STACKED OCEAN ² OCEAN BLACKHORNET DS 12,000 DP; 15K; 5M; 7R ² OCEAN BLACKRHINO DS 12,000 DP; 15K; 5M; 7R ² OCEAN BLACKLION DS 12,000 DP; 15K; 5M; 7R ² OCEAN GREATWHITE SS 10,000 DP; 15K; 4M; 6R BLACKHAWK

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