21 minute read
BOE Exploration Production LLC
DEEPWATER
POWERING THE ENERGY TRANSITION
BOE Exploration & Production LLC is laser-focused on oil and gas operations in the Deepwater Gulf of Mexico. We speak to Joseph Leimkuhler, COO of the company, about the latest technology and the future of exploration and production
Writer: Marcus Kääpä | Project Manager: David Knott
Oil and gas - and their importance to the global economy - cannot be understated.
From transportation and heating buildings to producing electricity and raw materials (everything from plastics to pharmaceuticals), oil provides a reliable and affordable foundation for many comforts of daily life.
The US is the world’s leading producer of oil, and collectively with natural gas and coal, provides approximately 80 percent of the country’s energy needs.
While renewable energy is increasing in scale based on global climate concerns, oil and gas are fundamental to the global energy solution for the foreseeable future. According to the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2022, in their base case, petroleum and natural gas will remain the mostconsumed sources of energy, and is actually increasing in the country through to 2050. This highlights the importance of domestic oil and gas development and production in areas with the
low emissions footprint, such as the Deepwater Gulf of Mexico.
In Texas alone, the oil and gas industry accounts for over three million jobs, and together with Louisiana, the two states make up over half of the oil and gas-related jobs in the entire country. These states border the Gulf of Mexico and offer abundant access to oil and gas reserves both inland and offshore.
“It has had its share of ups and downs during the past 35 years, but the geology and significant existing infrastructure of the Deepwater Gulf of Mexico is the gift that keeps on giving,” says Joseph Leimkuhler, Chief Operating Officer (COO) of BOE Exploration & Production LLC (BOE).
BOE – AT A GLANCE
BOE Exploration & Production LLC is an operator in the deepwater Gulf of Mexico.
COMPANY MISSION
To responsibly deliver high value, low carbon energy to the US market from the Deepwater Gulf of Mexico.
COMPANY EXPERTISE
BOE has assembled a cohesive team of experts who share a large-scale vision for the company as a partner of choice in the Gulf of Mexico.
– JOSEPH LEIMKUHLER, COO, BOE EXPLORATION & PRODUCTION LLC
The barrels of oil and gas produced by companies like BOE, in the Deepwater Gulf of Mexico - renowned as the lowest in carbon intensity - make up 15 percent of the US production, according to the EIA.
As COO for BOE, Leimkuhler is responsible for all offshore engineering and operations. During the last 38 years, he has worked in a variety of offshore engineering capacities: Vice President of Drilling for LLOG Exploration; various positions for Shell International E&P Co, and Shell E&P-Americas, including Well Delivery Manager for Gulf of Mexico well operations, Subsea Development Manager, Deepwater Drilling Superintendent, and teaching Shell’s drilling engineering classes; and positions with M-I Drilling Fluids and ARCO.
Leimkuhler was one of several significant operational experts who joined BOE in 2019, a time of significant expansion.
CELEBRATING 40 YEARS OF PROJECT EXCELLENCE THROUGH THE ENGINEERING AND DESIGN OF OIL AND GAS FACILITIES SOLUTIONS TO SUPPORT ALL PHASES OF PROJECT DELIVERY
OFFSHORE ENGINEERING
INDUSTRY EXPERIENCE YOU CAN LEVERAGE
INTEGRATED SOLUTIONS
FULL-SERVICE ENGINEERING
• Process • Mechanical • Civil and Structural • Architectural • Electrical • Instrumentation • Automation and Controls • Design and Drafting
MANAGEMENT SERVICES
• Portfolio and Project
Management • Construction Management • Safety Management • Risk Management • Information Management • Asset Management • Integrity Management
PROJECT SUPPORT SERVICES
• Project Controls • Procurement and Contracting • Document Control • Inspection and Vendor Surveillance • Technology Services • Regulatory and Permitting • Commissioning and Start-up Support • Client Representation
WHAT WE DO BEST
EDG executes brownfield and greenfield projects in all phases of the project life cycle. With experience working within numerous Phase Gate Systems, EDG supports your project team from early assessments through finalizing design to maintaining your operations.
CONCEPTUAL ANALYSIS
FRONT-END ENGINEERING DESIGN
DETAILED ENGINEERING
STARTUP/ COMMISSION SUPPORT OPERATIONS SUPPORT DECOMMISSIONING/ ABANDONMENT
WWW.EDG.NET | 888.334.9298 | @EDG
OFFSHORE OIL
The Gulf of Mexico is well-known for its deepwater oil and natural gas reserves.
1938 saw the first offshore well drilled in Texas, with the first discovery of oil made a few years later in 1941. Today, the Gulf remains the primary offshore source of these resources for the entire US, generating approximately 97 percent of all the country’s OCS (outer continental shelf) oil and gas production.
“Deepwater offshore operations require substantial offshore experience,” Leimkuhler says. “The collective experience of the BOE team - coming from a diverse group of offshore operators - includes many successful discoveries and developments over the years, across a range of offshore projects. The overall breadth and capability of the team is impressive, and BOE’s team is energized by new opportunities in the Gulf of Mexico.”
With the geological, engineering, development, construction, finance, accounting, land, and legal functions in its Houston office, BOE opened a second office in Covington, Louisiana in 2019.
“Over the years, a substantial portion of the offshore oil and gas industry moved from Louisiana to Texas,” Leimkuhler tells us. “BOE saw an opportunity to attract talent with Louisiana roots, and Covington was a great choice - providing the ability for our employees to work in an industry they love at home in Louisiana.”
By the summer of 2019, BOE assumed operation of several subsea producing fields, and continued to grow. In late 2019, BOE signed its first deepwater rig contract for the Deepwater Asgard, a deepwater,
– JOSEPH LEIMKUHLER, COO, BOE EXPLORATION & PRODUCTION LLC
Founded in 1960, Edison Chouest Offshore (ECO) is recognized today as the most diverse and dynamic marine transportation solution provider in the world. ECO operates a growing fleet of almost 300 vessels and serves an expanding global customer base. ECO has the largest base of shipyards in the U.S., owns and manages world-class port terminal facilities and operates worldwide in all oceans. Staying on the forefront of new technologies is an integral part of the ECO vision, as evidenced by recent advances in the areas of emissions reductions, subsea support services, integrated bridge systems, remote monitoring systems and global communications. The ability to design, build, own and operate diverse, high-capacity and technologically superior vessels has made ECO an unrivaled leader in the maritime industry.
C-INNOVATION Single Source for Subsea Solutions
ECO affiliate C-Innovation is a global, integrated marine services company specializing in advanced subsea solutions including ROVs, AUVs, subsea construction, fleet services, survey and positioning, and tooling services. C-I provides innovative solutions to complex challenges in engineering, project management and subsea field development.
C-PORT Raising the Bar for Efficiency in Cargo Movement
ECO’s expansive port facilities provide superior vessel support and unmatched efficiency. In an industry where the bottom line is controlled by efficiency in cargo movement, expediting vessel turnaround is a key factor in determining profit or loss. Chouest’s port services are second to none, reinforcing ECO’s role as the preeminent offshore supply source in the Gulf of Mexico, Brazil and Guyana.
dual-activity drillship owned and operated by Transocean, an offshore drilling contractor offering well construction services worldwide with a focus on deepwater rig operations. Drilling operations began in January 2020, and continued through the COVID-19 pandemic, with two discoveries made in the first campaign.
PASSIONATE ABOUT SAFETY
BOE is passionate about the offshore industry and safety. Bestin-class performance in Health Safety & Environment (HSE) is a core value, and the BOE staff are empowered to build programs that are fit-for-purpose. A robust and responsive Safety and Environmental Management System (SEMS) developed by its HSE team meets BOE’s high standards.
“The BOE SEMS is not just a binder on the shelf, we strive to make it the way we work,” Leimkuhler continues. “Offshore operations depend on every person, and every company, focusing on safe operations as a core value: “priorities change, but values don’t”. We work with our trusted contractors, ensuring alignment with
Halliburton
Enhancing offshore development
Halliburton enhances offshore development with advanced products and services that include rotary steerable systems, downhole tools, and fluids. Through collaborative engineering, automation, and remote operations, we help plan, design, and execute the optimal well.
Whatever your drilling environment, our rotary steerable systems accurately place the well bore in the reservoir, preserve borehole quality, and maximize rate of penetration, to reach target depth.
The iCruise® intelligent rotary steerable system reduces well time through fast drilling, fast tripping time and quicker casing drill outs. The system accurately places the wells in the reservoir using precise steering capabilities, and reliably reaches total depth so you can drill longer wells, predictably, on time and on budget.
The iStar™ platform acquires highdefinition measurements closer to the bit and deeper into the formation for enhanced subsurface insight. It provides real-time visibility of the type and quantity of reservoir fluids and uses data science techniques to optimize reserves calculations and improve well placement.
The BaraECD® solution helps manage risk, improve well site safety, and improve overall performance. It helps prevents barite sag and risky weight variations by maintaining stable gel strengths and low-shear viscosity at advanced temperatures and pressures.
And, during real-time operations, our automated drilling platform helps directional drillers make quicker, smarter decisions to stay on plan and achieve predictable results consistently.
www.halliburton.com
NORTH AMERICA OUTLOOK:
CAN YOU TELL US ABOUT YOUR ENTRANCE INTO THE OIL AND GAS INDUSTRY?
JOSEPH LEIMKUHLER, COO: “After graduating from the University of Montana in 1981 with a dual degree in Geology and Forestry, my career in the oil and gas industry started as a “Mud Engineer” for MI Drilling Fluids working in the Overthrust Belt play in Wyoming. This was a great fit with my interest in clay chemistry, geology and just digging big holes!
“By 1984, as a result of the volatility in the industry, I was ready to leave and go to law school. On my last hitch, a professor from the University of Wyoming brought his drilling class to the rig for a tour of the drilling fluid or mud system. That started a long relationship with Dr. Jack Evers, and he convinced me that I was an engineer and belonged in graduate school studying petroleum engineering.
“Thus, I went to the University of Wyoming in Laramie, earned a master’s degree in petroleum engineering in 1987 and then headed south to the Deepwater Gulf of Mexico. I’ve been in the Deepwater ever since, enjoying a 25-year career at Shell, seven years at LLOG Exploration Company, and now three years at BOE.”
“FOCUSED ON HIGH VALUE, LOW CARBON ENERGY”
– BOE EXPLORATION & PRODUCTION LLC
our contractor’s SEMS to achieve safe, efficient operations. We work with excellent offshore service providers, those who can safely deliver the best technical solution, and who are committed to good corporate citizenship.
“There have been significant changes and tremendous improvements in safety and technology over the past few years, from well designs to the equipment used to drill and complete the wells. For example, improved well designs allow deep sub-salt wells to be drilled faster, and more safely compared to years ago.”
According to Leimkuhler, state-ofthe-art deepwater rigs and fit-forpurpose production platforms enable safe and efficient production of oil and gas in the Gulf of Mexico, with the world’s lowest emissions and attractive overall lifecycle cost per barrel.
“Specialized equipment, such as MPD (managed pressure drilling), has become more effective, allowing the potential to conduct drilling operations efficiently with a reduced risk profile,” he adds.
MPD is an adaptive drilling process that accurately and continuously monitors and controls the pressure in a wellbore. The ability to change operating parameters in real-time and with automated adjustments by the MPD system adds both safety and efficiency.
In addition, Leimkuhler is also enthusiastic about continued improvements in seismic imaging
and data processing. He says those advancements allow the industry to “see” the geology below the seafloor better than ever, revealing new and exciting plays, such as the Norphlet and the Wilcox formations, often below massive sections of salt.
Leimkuhler’s passion for the industry translates to action. He serves on the HWCG Well Containment Group (Chairman of the Board of Directors); the National Ocean Industries Association (NOIA) (Board of Directors, Chair-HSE Committee); and the American Association of Drilling Engineers (ADDE) (National Board and National President from 2007 to 2009). A 35-year member of the Society of Petroleum Engineers, Leimkuhler
Sooner Pipe
Sooner has unparalleled inventory availability, access to all major domestic and international manufacturers, and multiple wholly owned service and logistics centers.
Sooner delivers to any location servicing every major US Basin and offshore shelf and deep-water regions. Whether you are a small independent producer or a major multinational, Sooner provides multiple product options and the services to help your project succeed.
Sooner has been a strategic business partner to BOE Exploration & Production LLC since the beginning. Sooner remains diligent in providing the best service and products to our customers with safety as our top priority.
Who We Are
Sooner has a clear purpose: to connect the people who create the world’s energy with the supplies they need. For nearly a century, we’ve been serving and expanding on that purpose, growing into one of the world’s largest OCTG distributors and logistics service providers to the oil and gas industry.
Sooner’s growth has enabled us to reach further and deliver better service to our customers. Each of Sooner’s acquisitions has brought a distinguished history and strong customer base to the combined company.
In our latest moves to connect the world’s energy creators with the supplies they need, Sooner acquired CTAP, LLC in February of 2019. In 2020 Sooner announced the creation of TerraTech Services, offering a full suite of oilfield services and logistics.
From here, the future is very promising, we look forward to continuing to provide the best products and logistics services to our loyal customers.
www.soonerpipe.com
serves on various advisory boards focused on Petroleum Engineering. He is a recipient of Meritorious Service Awards from API and AADE (2011), the AADE Lifetime Outstanding Service award (2017), and the Distinguished Alumni Award (2022) and Eminent Engineer Award (2019) from the University of Wyoming.
Leimkuhler brings significant safety insight to the entire industry through his service to the well containment response issue, as the Chairman of the HWCG Well Containment organization. Fourteen companies that are active in deepwater, including BOE, have pooled their resources to make sure state-of-the-art well containment response capability is immediately available across the US Gulf of Mexico.
CREATING VALUE FOR THE LONG TERM
BOE is particularly proud to be a member of NOIA (National Ocean Industries Association), an organization that represents and advances the offshore energy industry, providing solutions
Expro
Long recognized for extraordinary performance, game-changing technology, superb safety and long-standing partnerships, and now incorporating Frank’s International, Expro is focused on enabling our customers to make timelier and better-informed decisions.
The combination of both companies has brought together decades of market leadership, best-in-class safety and service quality performance, and exceptional talent. With now global capabilities in well construction, well flow management, subsea well access, well intervention and production services, we are a visionary full-cycle energy services expert providing customers with cost-effective, innovative solutions across the entire well lifecycle.
As a recognized global well expert and one of the most trusted partners in the energy industry, Expro is well positioned to play a leading role in enabling our clients to achieve their carbon reduction goals in support of the energy transition.
We have committed to achieving our own Net Zero emissions by 2050 and, since 2020, have been on a clear path to invest in adopting and adapting our technology portfolio in line with new energy demands. By unleashing the power of data and digital transformation, together we can address the critical energy challenges.
expro.com
that support communities and protect workers, the public and our environment. BOE embraces the foundational ESG principles of NOIA. BOE’s desire to produce low carbon barrels as efficiently and safely as possible reflects those principles.
“The barrels coming from the Gulf of Mexico have a low carbon production footprint, as well as a low carbon transportation footprint, resulting in the lowest overall carbon footprint barrels on the planet, making offshore barrels especially attractive during the energy transition,” Leimkuhler explains. “The U.S. Energy Information Agency’s (EIA) 2022 base case estimate is that the country’s oil needs in 2050 will be greater than they are today, even with a substantial ramp up in renewable energy. In our industry’s efforts to achieve a greener future, the lowest carbon barrels will be the most valuable in the years to come and the Deepwater Gulf of Mexico will be a very important contributor while also providing efficient domestic energy supply.
“Cycle times for oil and gas developments has compressed through standardization, but nevertheless often require multi-year investment commitments prior to first production. In order to meet the projected demand for oil and gas in
Deep Sea Development Services, Inc. (DSDS)
DSDS’s association with Beacon comes through their relationship in well containment response preparation as well as with supporting ongoing production operations and maintenance activities.
DSDS is also supporting Beacon with the groundbreaking Shenandoah development as a key member of the small but focused BOE project team overseeing the work of their EPIC contractor Subsea 7.
In addition to the Shenandoah development, DSDS is involved in BOE’s efforts to identify and execute development opportunities that grow Beacon’s portfolio as a responsible operator and desirable technical partner.
DSDS’s role in this effort involves bringing our experience to the table to de-risk schedule acceleration and cost optimization.
FMC Subsea Systems
Pushing Boundaries Through Mutual Trust, Innovative Technologies
TechnipFMC and Beacon Offshore have developed a strong relationship built on mutual trust. Through collaboration, both teams strive for the best technical solution to successfully and safely execute a subsea project.
For the Shenandoah project, TechnipFMC is responsible for the delivery and installation of industry-leading high-pressure, high-temperature (HPHT) Subsea Production System (SPS) equipment, including wellhead, trees, controls and chokes. Our 20K tree system is an industry-first, and these innovative technologies address the challenging conditions of the deepwater Gulf of Mexico field. TechnipFMC looks forward to strengthening the relationship and supporting Beacon’s future developments.
Deep Sea Development Services, Inc. 19219 Katy Freeway, Suite 260, Houston, Texas 77094 Phone: (713) 725-4082 Andy Jefferies, President ajefferies@dsds-usa.com Deep Sea Development Services Inc. (DSDS) is a Houston-based engineering consulting company focused on subsea and deep-water development projects in the Gulf of Mexico, Southeast Asia, West Africa, and Eastern Canada. The company was formed in 1996 to meet the need for experienced subsea systems personnel and to support operators with their deep-water development activities from concept framing, through execution, operation, and eventual abandonment. DSDS has been in continuous operation since its formation and continues to be involved with operators who are pushing the technology envelope to meet the worlds energy needs in an environmentally responsible way.
– JOSEPH LEIMKUHLER, COO, BOE EXPLORATION & PRODUCTION LLC
the next eight to 10 years, companies must invest now in offshore assets and exploration/development activities.”
For Leimkuhler, increased focus on renewable energy can present challenges to access capital for oil and gas projects. The offshore leasing environment for US federal waters has recently been delayed and questions regarding incremental regulation can impact the ability to proceed with near term developments on existing leases. On top of this, as with all industries, the offshore industry is challenged by shortages of materials and experienced staff due to the lasting impact of the COVID-19 pandemic, fragile supply chains, and the subsequent economic implications.
“BOE has been focused, authentic and diligent in its ESG journey, embracing challenges head on,” Leimkuhler continues. “The unique culture, purposely cultivated by BOE’s leaders “empowering experience” results in engaged team members who collaborate to deliver results.
“It has been impressive to watch the team come together. From geology, engineering, construction, drilling,
Weatherford
Weatherford consistently delivers a trusted approach to our customers’ wells, and we continue to innovate and push the industry forward.
We have redefined what our customers can do with managed pressure. By applying our field-proven technology to deliver higher quality, stable wellbores with fewer surprises, we help create comprehensive pressure management strategies that enhance safety, lower wellconstruction costs, reduce wellcontrol risks, and increase production.
Since 2018, Weatherford has used managed pressure wells solutions in the Gulf of Mexico on 40 deepwater wells for a total of more than 350,000 feet.
www.weatherford.com
Exmar Offshore Company
Exmar Offshore Company (EOC) is the designer of the OPTI® series of production semisubmersible hulls.
The OPTI® hull is a standard design that has been successfully used on three floating production systems in the Gulf of Mexico. Beacon Offshore Energy (BOE) contracted EOC to leverage its past and recent experience on previous projects to size the hull for the Shenandoah project resulting in the largest OPTI® design to date.
EOC’s OPTI® hull utilizes proprietary technology to optimize motions and connect risers with its FAST® system and process. EOC is honored to work on behalf of BOE and to bring its technology and experience to the benefit of the Shenandoah project, BOE and its partners.
www.exmaroffshore.com
Laborde Marine operates one of the industry’s most dependable and diverse fleets, manned by highly qualified and safety-oriented crews. The Company is suited to support all offshore operations including exploration, drilling and production support, construction support, as well as many other aspects of offshore marine support.
www.labordemarine.com
Now Hiring All Positions
OIL & GAS TRANSPORTATION & LOGISTICS
Leasing all truck sizes:
• FLATBED • MINI FLOAT • HOT SHOT • PERSONNEL
OFFICES
Corporate 601 Poydras Street, Suite 1725 New Orleans, Louisiana 70130 T 504-582-2185 F 504-582-2396
Operations 1601 Highway 182 Morgan City, Louisiana 70380 T 985-399-9066 F 985-399-9503 Mailing address: PO Box 2945 Morgan City, LA 70381 DRIVE4EAGLE.COM
NOIA FOUNDATIONAL ESG PRINCIPLES:
• NOIA member companies provide the energy that is essential for everyday lives and raises the quality of life of communities, reducing poverty and hunger while promoting good heath and well-being. • NOIA operates in coastal and ocean environments with safety, health, environmental protection and sustainability as core values. • NOIA shares a commitment to a high standard of corporate citizenship and continuous improvement in ESG performance. • NOIA recognizes the risks of climate change and the need for continued action.
As innovators, NOIA is committed to contributing solutions and best practices to optimally balance societal and environmental needs.
completions, reservoir, land, finance and accounting, BOE professionals know how to put a plan in place, work with regulators to gain approval, and then execute with success.”
BOE views opportunity through an ESG lens and seeks opportunities for carbon reduction, big or small. For example, BOE is working with its key vendors to reduce fuel consumption and improve efficiencies. Additionally, in conjunction with his service on the University of Wyoming, College of Engineering Advisory Board, Leimkuhler connected BOE with a research project on improving carbon capture efficiency, that if successful could have a lasting onshore and offshore impact. Hopeful for carbon solutions that can positively impact the industry, BOE elected to underwrite part of the study.
BOE is excited by the way that the offshore energy industry has embraced the energy transition. Working through organizations such as the NOIA, BOE is motivated to leave a positive legacy of change.
“We see a bright future for BOE in being a significant contributor to energy security, as well as smart solutions, through the energy transition,” Leimkuhler concludes.
BOE EXPLORATION & PRODUCTION LLC
(346) 867-0548
