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design of a rig which could also traverse the narrow Canal. Upon its arrival at 

 the chosen drilling site, four pontoon-type legs would swing-out and provide for 

 even greater stability in rough areas. 



Other companies are redesigning existing rigs. Zapata Norness accomp- 

 lished this with a third of its fleet last year and permitted all three of the rigs 

 which were involved to work in greater water depths. The usual procedure 

 chosen is to add nnembers to the existing legs, replacing the legs with longer 

 ones or converting a bottom- supported vessel to one which is buoyant in the 

 water, thereby permitting it to operate in greater depths. While the cost of these 

 improvements can exceed 50% of the rig's value, the revenues which can accrue 

 from the rig's increased daily working rate as well as its being able to obtain a 

 greater utilization factor, can more than pay for the improvements. 



Not only are the rigs changing, but so is the equipment- Improved 

 drawworks, better air and hydraulic systems, and more efficient cranes are 

 materiallv uoeradine their use, value, and efficiency. Further advances are expected 

 in the future as the need for flexible, tough and reliable equipment which can work 

 in any area, ranging from the Arctic cold to the Equitorial heat, increases. Imi- 

 proved pumping systems for deeper wells and more reliable blowout preventers 

 to insure the safety of man and machine are being developed. Lighter weight 

 turbine engines are being improved so that they can be raade capable of jobs where 

 the horsepower requirement is greater than the capabilities of today's existing 

 models. 



But while exploratory rigs are being constructed with increasing flexibility, 

 production platformis are being geared to incorporate the latest designs for the 

 specific area in which they will work. Union Oil's monopod platform in ice-swept 

 Cook Inlet, helicopter transported rigs, rigs which are drilling on a 40 degree 

 angle into shallow offshore sands near Peru, and special purpose rigs for use on 

 the THUMS project, a series of man-made islands offshore California are but a 

 few examples. 



We expect that within the next several years one or more of several deep- 

 water production systems will be placed in operation. Such Systems have already 

 been designed by: 



1. Mobil Oil - North American Rockwell; 



2. Fluor Corporation (Western Offshore Division) 



3. Compagnie Francaise des Petroles (CFP) - Westinghouse Electric 

 with two separate systems. 



Offshore deep-water tanker terminals, including underwater storage systems, 

 will be used with greater frequency in the future. Some are already being placed 

 into service. Companies involved include: 



1. Gulf Oil-three offshore loading stations; one in Ba'ntry Bay, 

 Ireland, the second in the Persian Gulf and one in Nova Scotia, 

 with several more planned throughout the world, including one 

 at Okinawa. 



