Koil Energy Solutions Inc. (KLNG)

[10 bagger]

We are in the beginning stages of a long lasting FPSO cycle.
Glossary of the FPSO industry..
http://www.sbmoffshore.com/PDF/GlossaryEN.pdf

A Floating Production, Storage and Offloading vessel (FPSO; also called a "unit" and a "system") is a type of floating tank system used by the offshore oil and gas industry and designed to take all of the oil or gas produced from a nearby platform (s), process it, and store it until the oil or gas can be offloaded onto waiting tankers, or sent through a pipeline.

A Floating storage and offloading unit is a similar system (FSO), but without the possibility to do any processing of the oil or gas.




History... Oil has been produced from offshore locations since the 1950s. Originally, all oil platforms sat on the seabed, but as exploration moved to deeper waters and more distant locations in the 1970s, floating production systems came to be used.

Oil produced from offshore production platforms can be transported to the mainland either by pipeline or by tanker. When a tanker solution is chosen, it is necessary to accumulate oil in some form of tank such that an oil tanker is not continuously occupied while sufficient oil is produced to fill the tanker.

Often the solution is a decommissioned oil tanker which has been stripped down and equipped with facilities to be connected to a mooring buoy. Oil is accumulated in the FPSO until there is sufficient amount to fill a transport tanker, at which point the transport tanker connects to the stern of the floating storage unit and offloads the oil.

An FPSO has the capability to carry out some form of oil separation process obviating the need for such facilities to be located on an oil platform. Partial separation may still be done on the oil platform to increase the oil capacity of the pipeline(s) to the FPSO.

Advantages
Floating Production, Storage and Offloading vessels are particularly effective in remote or deepwater locations where seabed pipelines are not cost effective. FPSOs eliminate the need to lay expensive long-distance pipelines from the oil well to an onshore terminal. They can also be used economically in smaller oil fields which can be exhausted in a few years and do not justify the expense of installing a fixed oil platform. Once the field is depleted, the FPSO can be moved to a new location.

Indicators suggest that growth of floating production clearly has room to expand, and the underlying market fundamentals have never been stronger because FPSOs provide a development option being studied in more than 140 projects in the planning stages.

Many of the projects coming on line during the next 5 years stem from exploration activity in the late 1990’s as well as the early part of the current energy cycle. The number of active deepwater drilling rigs is projected to increase substantially during the next 4 years because of high day rates, and the FPSOs will continue to provide the best solution,, if not the only solution for most of the soon to be discovered fields.

We are in the beginning stages of a long lasting FPSO cycle.



http://www.oslobors.no/ob/aksjeindeks_utvalg?languageID=1&p_instrid=ticker.ose.OSE10GI&p_per....

Companies of interest:
Aker Floating Production:
http://akerfloatingproduction.com..

BW Offshore:
http://www.bwoffshore.com/

EOC.ol http:
http://www.emasoffshore-cnp.com/

Fred. Olsen Production:
http://www.fpso.no

FPS Ocean http:
http://www.fpsocean.com/

MPF Corp http:
http://www.mpf-corp.com/

Nexus Floating Production:
http://www.nexusfp.no/NexusWeb/templates/StartPage.aspx,,

PetroProd:
http://www.petroprod.com/company.htm

PRS.ol
http://www.prosafe.com/

SBM Offshore:
http://www.sbmoffshore.com/

Sea Production:
http://seaproduction.no/

Sevan Marine:
http://www.sevanmarine.com/

Teekay Petrojarl
http://www.petrojarl.com
-------------------------
SEVAN.ol

The FPSO Sevan Piranema has today commenced oil production on the Piranema field, off the coast of Aracaju, in the state of Sergipe, Brasil.

The Sevan Piranema will be working under an 11+11 year charter contract with Petrobras S.A., in ultra deep water, ranging from 1,000 to 1,600 m.

The FPSO has an oil storage capacity of 300,000 barrels and is equipped with an oil process capacity of 30,000 barrels per day and a gas compression capacity of 3.6 million m3 per day.

The Sevan Piranema is the world`s first cylinder shaped FPSO and is based on Sevan`s unique and patented technology. The hull was constructed in China while the topside fabrication, assembly and commissioning took place in Europe. It is the
first floating production unit to be installed in this area of Brasil.

- This is a major milestone for Sevan and marks the start of a new phase in the development of our Company. We are proud that Petrobras, a world leader in deep water technology and the world`s largest user of floating production units, is the first oil company utilizing the Sevan FPSO, says Jan Erik Tveteraas, CEO of Sevan Marine ASA.

- The cylindrical Sevan FPSO is designed to provide improved motions, higher stability reserves and higher deck load apacity than conventional units. The experience so far from the Piranema field confirms these capabilities, says Tveteraas.

In addition to Sevan Piranema, Sevan has entered into contracts for the charter of four other Sevan units, of which three production units and one drilling unit. The three Sevan FPSOs will be installed in the North Sea while the Sevan Driller will go to US Gulf of Mexico under a six-year contract with Petrobras America Inc.

For further information, please contact:

Jan Erik Tveteraas, CEO Sevan Marine ASA (Media).
Phone: [phone] w
[phone] m

Egil Kvannli, CFO Sevan Marine ASA (Analysts)
Phone: [phone] w
[phone] m