Shell U.K. Limited has confirmed an order for four MARS™ (Multiple Application Re-injection System) systems for well stimulation operations on the Pierce field in the North Sea. The multi-million dollar order is due for delivery in 2009 and represents the second commitment by Shell to the MARS technology following the successful installation in their Bittern field earlier this year. In the Pierce installation, the MARS system will allow subsea chemical squeeze operations from an ROV- support vessel, eliminating the need for MODU support. This capability increases safety, saves time and reduces costs over traditional intervention methods. The patented MARS system is a Cameron technology, supplied by DES Operations of Aberdeen, a wholly owned subsidiary of Houston-based Cameron. The technology has been described as “a USB port for wellheads” and enables multiple processing technologies such as pumps, meters or chemical injection skids to be retrofitted onto any wellhead at any time during the life of the field.

Ian Donald, Cameron’s vice president at DES said, “We are delighted that Shell has confirmed their commitment to MARS. It offers them strategic flexibility and maximum productivity in a cost-effective package. “ John Anthony, Shell technical authority, added, “Working with DES, we have developed a cost-effective well intervention system which allows us to significantly minimize the cost, downtime and risk normally associated with subsea chemical stimulation operations.” “In addition to the Bittern and Pierce installations, Shell is also looking at MARS-enabled production optimization in other North Sea fields,” Anthony added.

Having out grown their old facilities at 3 Prospect Place, DES has relocated to new premises at:

Pavilion 1, Discovery Drive, Westhill, Aberdeen, AB32 6FG

Ian Donald, Managing Director said “We have been growing by 50% year on year lately and these new premises will allow us to continue to grow at this rate. From our Aberdeen base, we will be coordinating local projects and new markets in West Africa and Gulf of Mexico.”

World Oil® magazine announced the twelve winners of the 2007 World Oil Awards at the sixth annual black-tie gala dinner last night in Houston, Texas. The event, attended by close to 350 industry leaders, benefited three universities that offer programs leading to careers in the petroleum industry.

"The World Oil Awards showcases the tremendous innovation and technological breakthroughs driven by the global petroleum industry," said John "Rusty" Meador, President and CEO of Gulf Publishing Company. "It's a way for the industry to come together to recognize their peers and to continue to inspire the best and the brightest to join the ranks of this global business." The twelve award categories span virtually all aspects of the upstream industry, ranging from Best Outreach Program to Best Data Management to Best Drilling Technology Award.

"In addition to the geographic diversity of the winners, it is encouraging to see that both large and small companies receive recognition for their achievements," noted Meador.

New Horizons Idea Award
Multiple Application Re-Injection System

For Immediate Release – DATE, 2008 – Houston TX – Cameron has confirmed an order of 14 MARS™ (Multiple Application Re-injection Systems) for the long-term subsea production optimization strategy on Chevron’s Lobito Tomboco Field in Angola. The order is initially valued at $16M and represents another significant commitment by a major operator to the MARS production interface which has been described as “a USB port for wellheads.”
MARS has been previously used by BP for subsea multiphase pumping in the Gulf of Mexico and is scheduled to be deployed by Total in Angola and Shell in the North Sea for subsea multiphase metering and well stimulation respectively. The patented MARS system is a Cameron technology, supplied by DES Operations of Aberdeen, a wholly owned subsidiary of Houston-based Cameron. The technology enables multiple processing technologies to be retrofitted onto subsea Christmas trees and is being applied by Chevron to perform subsea chemical squeeze operations on existing wells in Angola. Chevron and DES have integrated the MARS system into an existing subsea infrastructure enabling chemical scale squeeze operations from an ROV support vessel, eliminating the need for MODU support.

Ian Donald, Cameron’s vice president and general manager at DES said, “We are delighted at the adoption of the MARS system by Chevron. The MARS interface is adaptable to any subsea tree enabling the integration of a variety of processing equipment to an operator’s asset.” Roger Bradley Chevron subsea superintendent for the project added, “We have worked closely with DES to develop a cost effective well intervention system which allows us to significantly minimize the downtime associated with subsea chemical stimulation operations.”

In addition to the 14 MARS systems, DES will provide the chemical delivery system for Chevron’s project.

In March, 2007, DES Operations Limited was acquired by Cameron. The company now operates as a separate business within Cameron’s Subsea Systems division. DES’ current range of products and services, including:

• MARS and MARS Production Optimization Modules
• MARS Friendly Christmas Tree (MFXT) and
• POSSibilities (Production Optimisation Simulation Software)

will continue to be available to all customers and service partners. DES systems will continue to be configured for current and new equipment variants/specifications.

The MARS standard has been further endorsed and acknowledged by recent industry awards, including:

• Subsea UK – Best Subsea Newcomer, 2007
• Scottish Offshore Achievements – Innovative Technology Award, 2007
• OTC 2007 ASME – Distinguished Innovation Award, 2007

DES now offer increased capability, infrastructure and capacity allowing us to provide a superior range of products and services to new and existing customers. The combined DES and Cameron entity will further provide increased capability to the market by further simplifying current and new wellhead based processing technologies.

The teams at both DES and Cameron are excited and enthused about further developing multiple solutions their joint technologies can enable. We look forward to working with our clients to become the world leader in the identification, execution and delivery of production optimisation solutions.

DES qualified as one of the finalists in the OTC 2007 Woelfel Best Mechanical Engineering Achievement Award competition and won the BMEA Distinguished Innovation Award presented on behalf of the Executive Committee of the International Petroleum Technology Institute (IPTI) of the American Society of Mechanical Engineers.

Major achievements in Scotland’s energy industry were honored at a prestigious ceremony held on 15th March 2007 in Aberdeen.

The guest of honor and keynote speaker at the 22nd Scottish Offshore Achievement Awards Dinner was Lord Truscott, Parliamentary under Secretary of State for Energy.

Scottish Enterprise Energy team director Brian Nixon told the audience - “This is indeed one of the hottest tickets in town with the 400 plus places for tonight’s dinner sold out weeks ago and the strongest evidence that the industry is still very supportive of what have become known as the oil oscars”.

“We need to make the effort to celebrate out outstanding achievements more often – blow our own trumpet and advertise the existing technologies, techniques and breakthroughs throughout our industry.”

Cameron (NYSE: CAM) has acquired DES Operations Limited, an Aberdeen, Scotland-based supplier of production enhancement technology for the oil and gas industry. The acquisition provides Cameron with DES’ unique MARS (Multiple Application Re-injection System) technology, which enables the installation of multiple processing technologies directly onto the subsea completion.

Since incorporating in 1999, DES has enjoyed global success with its MARS™ and POSSibilities™ technologies. Several major operators, including BP and Shell, have incorporated these products to optimize production from both new and existing fields.

MARS, which has been described as “the equivalent of a USB port on a subsea completion” has been used in various major international projects to incorporate subsea processing technologies into these developments.

DES is expected to provide Cameron increased capability to support customers by simplifying subsea processing for both on and off the wellhead applications.

Cameron is a leading provider of flow equipment products, systems and services to worldwide oil, gas and process industries.

Industry body Subsea UK announced the winners of its in-augural awards at a dinner at Aberdeen Exhibition and Conference Centre attended by around 350 people. The event, sponsored by Acergy, aims to recognise excellence and achievement across the rapidly expanding subsea sector.

Subsea UK chief executive David Pridden said of the winners:
"For a small company, DES Operations has come up with big game-changing technology which is being applied throughout the world and is a worthy winner of the best newcomer award. Its Multiple Application Reinjection System (MARS) is offering operators significant cost-savings and flexible solutions to the challenges of developing small or mature fields.

Subsea UK believes DES exemplifies what the UK can bring to the subsea sector and must continue to bring so that we maintain our envied world-leading position".

Aberdeen based DES Operations has entered into an agreement with Shell for the sale of 3 MARS (Multiple Application Reinjection System) units.

The equipment is destined for the Bittern field in the North Sea, where MARS will be used to upgrade their subsea Xmas trees to allow low cost, low risk scale squeeze and well stimulation operations. “The existing method for scale squeeze is diver intensive and is therefore expensive and higher risk”, said Brian Nutley, Business Development Director with DES. “By using MARS, Shell is able to eliminate divers and complete the entire operation using ROVs. The MARS method is safer, faster and more cost effective.” Shell will be installing 2 of the MARS units subsea in 2007, with the third being fitted onshore to a new Xmas tree prior to deployment.

The patented MARS unit effectively adds a new safe “USB port” into the subsea Xmas tree for accessing the well flow on new and existing processing equipment modules (scale squeeze, pumping, metering, separation and sand management) to be installed on any Xmas tree at any time.

The sale of this system follows close behind DES’ first major export sale of MARS in 2005 to the BP King field in the Gulf of Mexico. The King project is the first multiphase pump in the Gulf of Mexico, the deepest pump deployment ever and the longest high voltage tie-back to date. “We are encouraged that our first orders are from the majors, like Shell and BP”, added Ian Donald, Managing Director, “who supported our product development over the last few years with key contributions to our System Integration Test program in 2005”.

The company, with 23 employees, is based in Westhill, Aberdeen with additional offices in Houston. “This order confirms our team’s commitment to working with the customer to provide value added solutions. Congratulations to the team for their hard work, belief and commitment in MARS” added Donald, “We anticipate the MARS products moving to new markets and regions in the near future and I expect we will be looking for more people and larger premises very soon”.

Aberdeen-based DES Operations Limited has appointed Brian Nutley as Director of Business Development.

The company, who produce the MARS (Multiple Application Re-injection System), is set for significant international sales growth following initial sales to BP in the Gulf of Mexico last year.

“I am very excited to be involved in a product that has the potential to redefine how Operators approach production optimization throughout the life of their wells”, said Nutley. “MARS is a simple, low risk, low cost method for retrofitting any process equipment onto any wellhead. To date DES have received orders for subsea applications only, but we are very excited by the current interest for both platform and land applications also.”

Brian comes to DES from Halliburton where his latest role was in strategic marketing for innovation and technology. Brian joined Halliburton in 1973 and has worked in senior operational P&L and business development roles in the US, Far East and Europe.

DES Managing Director, Ian Donald, says "We are delighted that Brian has agreed to join our team. His expertise will be invaluable in extending DES’ footprint in new regions including Europe, West Africa and the Far East.

The patented MARS range of products optimizes production throughout the life of an oilfield, enabling processing equipment modules (pumping, metering, separation and well stimulation) to be installed on any Xmas Tree at any time. The MARS system allows the operator to retrofit any processing equipment module. The processing equipment, including pumps, can be fitted without breaking into existing subsea flowlines or re-entering the well and therefore significantly lowers the environmental, reservoir and cost risks normally associated with deploying subsea processing equipment.

Venture Petroleum has received delivery of their first MARS Friendly Xmas Tree (MFXT) from Vetco for deployment on the Goosander Field. Aberdeen-based DES Operations Limited has supplied the MFXT interface, which enables Venture to adopt a flexible subsea field development strategy throughout the life of field.

The MARS (Multiple Application Re-injection System), is a low risk interface which enables production optimisation to be retrofitted onto any wellhead at any time in field life. Since testing the first MARS unit in March 2005, the product has been chosen by BP in Gulf of Mexico for interfacing subsea multiphase pumps on the KING field, and the company is currently pursing further production optimization opportunities in GoM, Europe and West Africa. “MARS can be retrofitted onto any tree, but the risk and time can be minimized and the range of applications maximized if DES verify key dimensional information during the manufacturing phase of the Xmas tree; this is what we mean by ‘MARS Friendly Xmas Tree’ or MFXT” said Donald. “By specifying MFXT when purchasing new trees, the Operator is able to keep all their strategic options for field development open, while eliminating the pre-investment normally associated with built in contingency hardware.”

Although this is the first deployment of an MARS Friendly Xmas Tree, the MFXT specification has also been adopted by both Shell and BP in the North Sea for forthcoming projects later this year.

DES has offices in Houston and Aberdeen and have doubled in size every year since 2002. “As Operators continue to adopt MARS as a standard, we are looking forward to continued growth in the next 24 months” added Donald.

DES Operations is delighted to receive a "Highly Commended" award at the 2006 Scottish Offshore Achievement Awards on 16th March.

The Award, in the category of Innovative Technology, was presented by Scottish Deputy First Minister and Enterprise Minister Nicol Stephen MSP. Ian Donald, DES Managing Director, said "This award raises the profile of the MARS technology, and acknowledges the commitment from the DES team and our clients to optimize production. I am delighted for the DES Team and would personally like to thank those who have supported us along the way"

Aberdeen-based Company Set to Take Off with Sale of MARS.

Aberdeen-based DES Operations has entered into an agreement with BP America Production Company for the sale of the DES MARS system (Multiple Application Re-injection System) estimated at £1.6 million.

The sale of this system and projected sales based on excellent feedback from other operators will result in DES doubling its operation in the next eighteen months. The company which currently employs 19 people in Aberdeen and Houston was formed in 1999 to develop subsea processing systems with support from 3i and the DTI.

The MARS system integration test was completed earlier this year. The MARS system, which enables optimisation of oil and gas production whilst eliminating the risks associated with well intervention, will now be installed on the BP operated King Field in the Gulf of Mexico. The King Field is located in water depths ranging from 1500 meters to 1700 meters.

DES managing director, Ian Donald, says : "MARS provides significant cost-savings, flexibility and choices to the challenges facing operators in brownfield and greenfield development. We are delighted about being selected for the King subsea pump project which will be the deepest and longest off-set pumping project to date and the first in the Gulf of Mexico.

The patented MARS system optimises production throughout the life of an oilfield, enabling processing equipment modules (pumping, metering, separation and well stimulation) to be installed on any Xmas Tree at any time. The MARS system will allow the operator to retrofit multiphase pumps. The pumps can be fitted without breaking into existing subsea flowlines or re-entering the well and therefore significantly lowers the environmental, reservoir and cost risks normally associated with deploying subsea processing equipment.

Donald adds : "This sale is the result of significant commitment by DES, with assistance from industry partners, to complete the development and testing of the MARS production optimisation system. Since the completion of the development and test programme earlier this year, the response from operators has been hugely positive. Flexible subsea processing has long been the holy grail of the oil and gas industry; with MARS the operators now have a simple, low risk, low cost method of achieving this."

Aberdeen-based Des Operations last week used a bold approach to launching new subsea intervention technology by running a practical demonstration of the system before more than 60 asset managers and subsea specialists from the North Sea and elsewhere.

Two years in the development, with £2.5million funding from 3i and the DTI, the patented Multiple Application Reinjection System (MARS) enables oil and gas operators to optimise production while minimising the current risks and costs associated with well intervention.

MARS is described as a universal interface that enables low-cost, low-risk processing, such as multi-phase pumping, on new and existing subsea wells. By using MARS, full well-bore intervention or flowline decommissioning and re-commissioning are avoided, according to DES. This, in turn, lowers the economic barriers to achieving increased production.

Managing director Ian Donald said it was important for companies like his to demonstrate faith in the new technologies and to engage future potential clients, as the company did during the trial.
"If you want to sell subsea equipment, you have to bite the bullet and build."



Describing MARS, he said: "It can be deployed on a subsea well system at any time during field life and will allow operators to increase production without well intervention or drilling risk.

With oil and gas operators increasingly seeking low capital expenditure solutions to the development of new and existing fields, the market potential for MARS is significant, particularly in deepwater regions.

"We are currently focused on pumping opportunities, however MARS is a universal work platform which enables other subsea processing elements, such as separation or metering, to be simply deployed throughout the life of field."

The system should also facilitate water injection, sand control and, in the future, separation of bulk water and gas.

Donald told Energy after the trial that the company was "actively engaged" with a Gulf of Mexico operator and integrated project team to provide a multi-phase pump deployment solution for a deepwater development due for completion next year.

"Additionally, we're working with various oil majors and independents carrying out front-end engineering design for UK and Norwegian projects."

He added that early adoption of MARS into a new field development allows flexibility to be designed into the field architecture. Moreover, MARS can be retrofitted on to any well, thereby ensuring that the subsea infrastructure is "future-proofed".

After 2 years at Westhill Business Centre in Aberdeen, DES has relocated its UK headquarters to a new office development at 3 Prospect Place in Westhill, Aberdeen. Tom Bryce, Director of Business Development said, "We have been grown 200% in the past year and had out grown our old office. This move will allow us to continue to expand our team to meet growing customer demand.

DES Operations Limited received copyright and trademark registration (2333462) for 'MARS'. MARS (Multiple Application Re-Injection System) is DES' universal 'plug and play' interface which enables low cost sub sea processing.

DES Operations Inc, a subsidiary of DES Operations Limited, has taken new office premises within the Scottish Development International (SDI) facility in the Westchase district of Houston. See location for details.

The Oil & Gas team of 3i, Europe's leading venture capital company, today announced their £2.5m backing of DES Operations.

DES Operations is an Aberdeen based business established in 1999 that has developed a unique and patented subsea interface. This new product, branded MARS (Multiple Application Re-injection System), is a universal interface for wellheads. It acts as a fluid diverter out of the wellhead, and into an external process, before passing the fluids back into the flow line. It enables pumping or processing equipment to be located on top of the wellhead as opposed to at the surface, at the manifold or in the well as is currently the case. This has significant advantages to the oil companies in terms of recovery rates, cost and risks.

The subsea market is a strong growth area and DES is well positioned to drive its niche within this market. The capital committed by 3i will enable DES Operations to commercialise the MARS product.

The founding directors are Ian Donald, 43 who has been in the oil industry all his life with various field development roles with BP and Lasmo on the E&P side and Coflexip and Vetco Gray on the contracting and service side. He is supported by Tom Bryce, 35 who has spent 10 years with Varco, the drilling systems manufacturer. Bernie Anson, formerly FSSL is Non Executive Chairman and Glynn Williams, founder of Sensa will be a Non Executive Director.
3i's Oil & Gas team has worked on similar deals in the past - most notably the investment in Sensa in 1995 with an exit in 2001. Therefore the team on this deal, Mark Dickinson and Hans Middelthon, bring valuable knowledge and insight into how best to support and help DES' growth. As the leading investor in Europe in this sector and with 30 Oil and Gas sector companies (service and E&P companies) in 3i's portfolio, there is great opportunity to introduce companies and management teams for their mutual benefit.

Director of 3i's Oil & Gas team Graeme Sword commented: "3i is very excited by the potential of DES. We have been looking for the right company to strengthen our presence in the sub sea sector for some time and DES fits all our criteria. It has good growth potential, is in an exciting market and is led by a strong management team. We're committed to investing in local businesses and have expanded our investment team to ensure that we are in the best position to do this. Following on from the signing of the recent CH4 and ABB transactions this shows the diversity of our Oil and Gas investment activity".

Ian Donald, Director of DES Operations, said "We are looking forward to working with the 3i team. We anticipate exciting growth in the adoption of subsea pumping and processing solutions, and intend to field test the MARS system in 2004. The 3i involvement will enable DES to fully commercialise the MARS technology to provide the industry with cost effective production boosting and processing at the wellhead".

Download 3i 2004 prospectus.

DES announced today that it received confirmation of patent award US6613514 from the US patent office for the MARS (Multiple Application Re-Injection System). The MARS is a standardised subsea 'plug & play' interface which enables low cost subsea processing by enabling any processing equipment (e.g. pump) to be retrofitted onto any subsea xmas tree without the need to enter the well and break the flowline. Ian Donald, Managing Director, said "This is great news. It is important for DES, like any technology based company, to be able to promote their technology with the knowledge that it protected. The Gulf of Mexico subsea sector is a key strategic market for DES and we look forward to expanding our operation there in the near future".