Asia Pacific

Offshore Network has released a free-to-download report outlining the developing prospects for the Asia Pacific’s offshore well intervention industry.

The wider energy sector is facing daunting challenges in the shape of increasing electricity consumption and the ever-increasing demand to limit environmental impact. While the rise of cleaner energy sources such as renewables appear unstoppable, there does, however, remain a place at the table for oil and gas, with fossil fuels set to continue to be an important component of the energy mix for the decades ahead. This trend is particularly pronounced in Asia, which is set to dominate global oil demand growth in 2024 and beyond.

While drilling has traditionally provided the answer to meeting growing demand, rising costs, uncertainty of success and environmental concerns are turning heads away from this activity and towards the potential of well intervention. The emergence of this is also being encouraged by the need for plugging and abandonment, a concern ever-growing in urgency as the region’s well stock continues to age. With market conditions opportune for well intervention to take centre stage, there remain some key challenges that must be overcome before it can fully step into the spotlight and fulfil its potential.

Offshore Network’s latest outlook assesses these key challenges such as collaboration and operator-service provider disharmony while examining the vast opportunities the region is offering.

Click here to download the report for free.

Pertamina Geothermal Energy (PGE), an Indonesia-based company, has signed a Memorandum of Confidentiality Agreement with Turkish energy company Kipaş Holding to start a cooperation for the utilisation of geothermal energy.

The Indonesian Embassy in Ankara facilitated PGE’s efforts to seek cooperation in geothermal exploration with various companies throughout Türkiye. PGE and Kipaş Holding are both interested in carrying our exploration projects cooperatively in both Türkiye and Indonesia, and are open to the possibility of a joint investments elsewhere.

The signing of the agreement was carried out by Julfi Hadi, President Director of PGE, and Mehmet Şişman, General manager of Kipaş Holding, witnessed by the Indonesian Ambassador to Türkiye, Achmad Rizal Purnama.

“We are happy to have met with Pertamina Geothermal Energy and hope that the cooperation will be fruitful with an exchange of information and experience for geothermal energy sector improvement in both Türkiye and Indonesia,” commented Şişman.

Coretrax is set for further growth as the company has secured five multi-year contract wins for 2024 and plans to expand its footprint in the Asia Pacific region by a further 30%.

The latest deals encompass key milestones including the business’ first project win in Latin America and its first expandable casing patch deployment in the UAE.

Following a string of successful geothermal and carbon capture and storage (CCS) projects, Coretrax has secured its largest geothermal contract to date – a multi-year project in Denmark where it will deliver its Origin wellbore clean up technology across 17 geothermal wells.

The entire well lifecycle

John Fraser, CEO of Coretrax, stated, “We have experienced a period of sustained growth and are excited to be entering 2024 with a strong pipeline of work and plans for further expansion in the coming months. Our technology spans the entire well lifecycle which means we can support operators from drilling right through to the plugging and abandonment phase.”

The company is also expected to increase its 320-strong workforce by an additional 100 personnel across its bases in Europe, the Middle East, Asia Pacific and the Americas.

“The coming 12 months will see us increase our headcount and footprint globally,” Fraser continued, “with Asia Pacific a particular focus for the business as we respond to increasing demand for our technology across countries including Australia, Brunei and Malaysia. We are also eager to extend our operations in the geothermal and CCS sectors with our circulation tools gaining a strong track record in these emerging markets.”

The contract wins come off the back of the company expanding its well intervention offering by acquiring a suite of new technology from Wireline Drilling Technologies.

Pertamina, an Indonesia state-owned oil and gas corporation, has revealed that it is exploring Rig-to-CCS (carbon capture storage) developments with Korea National Oil Company (KNOC).

The collaboration aims to repurpose offshore oil and gas platforms into CCS facilities and is being pursued through a joint study agreement. This was signed by Nicke Widyawati, President Director of Pertamina, and Dong Sub Kim, President & CEO of KNOC, in a bid to reduce emission and support net zero commitments.

“I highly appreciate this collaboration. Apart from enriching CCS studies, this collaboration also helps address Indonesia's challenges regarding abandonment and site restoration (ASR) of offshore platforms,” remarked Widyawati.

“The cost of conventional ASR or decommissioning is extremely high, necessitating an alternative ASR solution, especially reutilisation, in order to ensure the gradual and efficient implementation of ASR for these offshore platforms.”

Oki Muraza, the Senior Vice President of Research and Technology Innovation of Pertamina, added, “This collaboration could be extended to the development of Rig-to-Wind Farm, Rig-to-Fish-Farm, and Rig-to-LNG Terminal to transport natural gas to locations where energy facilities are yet to be established.”

Many companies are seeking to address the decommissioning challenge which is increasing in urgency. Click here to discover Offshore Network's unique report on the global decommissioning outlook. 

Offshore Network’s newly released Global Offshore Decommissioning & Abandonment Report tracks the growing need for end-of-life activities that is becoming an increasingly pertinent issue across the world.

While decommissioning has its roots as far back as the 1960’s, it was only towards the end of the century, under mounting environmental sentiment, that national bodies and the community began engaging with the issue more acutely and discerning what this will mean for the industry’s future. Time and resources dedicated here have drawn the curtains further back, and the more that is revealed, the more daunting the decommissioning task has become.

In 2021, IHS Markit predicted that global offshore decommissioning spending could reach around US$100bn between 2021 and 2030, a staggering 200% increase compared to the previous ten-year period. In light of this, the information services provider asked whether the world was entering “a decade of offshore decommissioning” as it reacted to the data that suggested nearly 2,800 fixed platforms and 160 floating platforms could be decommissioned in that period, alongside more than 18,500 wellheads, 2,850 subsea trees and 80,000 km of offshore pipelines and umbilicals. Looking further ahead, the Energy Industries Council further predicted that this cost of decommissioning would continue to rise beyond that, hitting the US$200bn figure within the next 20 years.

Offshore Network’s unique report charts the rise of the decommissioning market across the globe, providing analysis on this within each of the key offshore oil and gas regions from the more mature regions of the North Sea and Gulf of Mexico, to those that are less far along in this journey such as West Africa.

Click here to download the full report and learn more about the decommissioning & abandonment outlook as well as the opportunities that are opening up for those with the capacity to support the forthcoming, significant work.

PT Pertamina Geothermal Energy (PGE) has announced its cooperation with Chevron New Energies International (Chevron) and Mubadala Energy to embark on a Joint Study Agreement (JSA) to explore the geothermal potential in Indonesia.

The JSA aims to capitalise on the companies’ strengths and experience, namely bringing together PGE’s scale as the largest geothermal producing company in Indonesia, Chevron’s expansive capabilities as a multinational energy company committed to providing cleaner energy, and Mubadala Energy’s record in delivering reliable and efficient energy to the region while playing a continuous active role in the energy transition.

The agreement provides a comprehensive framework to conduct a joint study into developing the Kotamobagu Geothermal Working Area (WKP). The agreement falls in line with the Indonesian government’s recent announcement that the region will target an addition of 3.3 GW of installed geothermal capacity by 2030.

President Director of PT Pertamina Geothermal Energy, Julfi Hadi, said, “Our Joint Study Agreement this time aims to utilise the complementary strengths of the three parties in developing geothermal in Kotamobagu.”

Wahyu Budiarto, Chevron Indonesia Country Manager, commented, “This is Chevron’s fifith collaboration with Pertamina and we are excited about the addition of Mubadala Energy in the Kotamobagu WKP. We look forward to bringing into the partnership Chevron’s technical expertise and new geothermal technologies to explore renewable energy resources to support Indonesia’s energy transition goals.”

Mansoor Mohamed Al Hamed, CEO of Mubadala Energy, concluded, “With our track record of delivering strategic energy resources in Indonesia for over a decade, we are excited about this partnership with PGE and Chevron to explore the expansion of geothermal energy, an important segment of Indonesia’s clean energy growth ambitions. The opportunity to explore such projects is embedded in Mubadala Energy’s commitment to playing an active role in the energy transition as we continue to support Indonesia’s Net Zero targets.”

MB Century (MBC), an engineering and maintenance specialist for the geothermal and hydro sector, has partnered with GNS Science (GNS), a research institute, to support the geothermal industry in the Philippines and across the globe.

The agreement, which was announced on the eve of the 4th Philippine International Geothermal Conference (PIGC), focuses on supporting the Philippines geothermal sector in achieving the decarbonisation goals set by the Government. The two will combine their expertise to support international partners in their efforts to achieve efficient and sustainable solutions in geothermal development for the country and other key international markets such as Indonesia, Taiwan and Japan. Further plans are in place to expand into the USA, Kenya, Tanzania, Ethiopia, Djibouti, Turkey, Italy and South America.

Gary Wilson, General Manager of Research, Strategy and Partnerships at GNS Science, remarked, “This partnership is a great example of New Zealand companies working together to leverage New Zealand expertise globally. Both MB Century and GNS Science have worked at the forefront of geothermal energy development and optimisation for decades.

“We are motivated to share our collective experience with other countries globally to maximise the potential of this renewable energy resource.”

Greg Thompson, CEO MB Century, added, “This agreement provides a robust framework for our geothermal cooperation, encompassing joint investigations, international projects, scientific and technical exchanges, and personnel growth and development.

“We are excited about the possibilities that lie ahead and look forward to a fruitful partnership with GNS Science as we pioneer innovative solutions in the field of energy.”

Light Structures AS, a leading supplier of fiber optic condition monitoring systems based on Fiber Bragg Grating (FBG) technology, has signed an MoU with independent energy expert, DNV, to develop new methodologies and solutions around structural health monitoring and digital twins.

The two companies share a vision to advance solutions with the two technologies in order to improve safety at sea as well as achieving new operational efficiencies and reducing asset lifecycle maintenance costs.

DNV and Light Structures will leverage the value in structural integrity monitoring data acquired through the latter’s SENSFIB systems for complex marine and offshore projects. They will collaborate on diverse areas including customer requested project and solutions design, modelling and hydrodynamic analysis, hybrid twin databases, interfacing, instrumentation, installation and commissioning, and co-marketing.

Niklas Hallgren, CEO of Light Structures, commented, “Digitalisation in the maritime sector has streamlined our ability to widen the scope of applications that structural integrity data can benefit, so we are looking forward to exploring new workstreams and project implementations through our work with DNV.”

Brice Le Gallo, Vice President and Regional Director for Energy Systems, APAC, DNV, added, “Our collaboration with Light Structures unlocks the potential to boost digital twin fidelity, resulting in new levels of operational insight for our engineers and customers.”