Shell Brazil Extends Contract with BJ Tubular in Multi-Million Dollar Deal

BJ Tubular Services has been awarded a three-year extension to its current contract with Shell Brasil Ltda to provide a range of casing and tubing running services offshore Brazil. The new agreement extends BJ Tubular Services' activities for Shell in the region through 2011.

Shell awarded the original contract to BJ in 2005 for operations on the drillship Deepwater Navigator. Its operations in Brazil have included ongoing drilling in the Bijupira field in the Campos Basin, circa 150km east of Rio de Janeiro. The contract extension calls for BJ to provide services for Shell's next development, the BC-10, which is located in a deepwater block offshore Vitoria.

BJ Tubular Services will commence operations this spring with dedicated personnel and state-of-the-art equipment from its Macae, Brazil division facilities.

The multi-million dollar contract extension includes two one-year options to renew.

To increase safety and improve running times, BJ will use a fully mechanised running system that includes its Leadhand tong manipulating technology with hydraulic casing and back-up tongs. In addition, BJ plans to install its Derrickman system on the drilling rig. This remotely-operated mechanical arm makes it possible to maneuver tubulars and drillpipe into a vertical position without a crew member acting as a traditional stabber.

"I attribute the extension of our contract to the safe, efficient casing and tubing running services we have been providing Shell in the Campos Basin during the past three years," said Kenny Watt, general manager of BJ Tubular Services. "We will be drawing upon that experience and look forward to using our fully mechanised running system to reduce costs and further improve safety."

Since entering the Brazilian market in 1999, BJ Tubular Services has been highly active in the region, running casing and tubing, and driving conductors with its large fleet of hydraulic Hydrohammers.