Europe

BiSN, a leading supplier of downhole sealing solutions and technology to the global oil and gas industry, has been awarded a key contract by a major oil and gas operator in the North Sea.

The three-year contract (which features two one-year extensions) requires BiSN to use its proprietary Wel-lok alloy barrier technology to safely and efficiently plug and abandon oil and gas wells in the North Sea. The technology is a cost-effective and environmentally-driven solution that provides a permanent well-barrier and gas-tight seal in single and multiple annuli.

The scope of work includes providing BiSN Wel-lok alloy plug barrier technology, which ensures a permanent plugging and abandonment of oil and gas wells so that they are securely and reliably sealed, vastly reducing corporate liability and potential environmental impact. BiSN's alloy plugs are a superior solution compared with conventional technology that uses cement, elastomers, resin, or others as sealing elements that deteriorate over time, particularly in harsh environments.

Paul Carragher, Founder and CEO of BiSN, commented, “We are pleased and very excited that BiSN has been awarded this major contract. This is another step forward in the execution of our company mission to provide unique barrier solutions that protect the earth’s natural resources. Our strategic objectives, which include providing our novel technology and best-in-class services, focus on working collaboratively with our customers to support and exceed their well abandonment objectives.”

Mark Nicol, BiSN Regional Business Development Manager – UK, Europe & Africa, added, “This award recognises BiSN’s differentiating technology and capabilities to deliver a permanent well barrier in challenging offshore oil and gas wells. We look forward to collaborating with this operator and all associated stakeholders to successfully complete this project.”

Claxton, the University of Aberdeen, the National Decommissioning Centre and the Net Zero Technology Centre (which is providing funding and oversight), have continued to move ahead in the delivery of the Underwater Laser Cutting (UWLC) system, an alternative and clean underwater cutting technology ready to take the decommissioning market by storm. 

UWLC improves efficiency when used for downsizing activity or applicable subsea decommissioning scopes and offers the flexibility of deployment methods in storage ponds, tanks and offshore. It was noted by the partners that the technology has the potential to ‘revolutionise’ subsea cutting. 

The initial phase of the partnership, delivered between 2019 and 2021, saw the development of the UWLC system targeted at delivering offshore cutting trials in 70 metres seawater depth. The Net Zero Technology Centre funding supported partners in the development of underwater capable optics; the design and manufacturing of an underwater laser cutting head; procurement and packaging of a 15KW laser generator for offshore operations; and design and manufacture of control system software and hardware suitable for 50 bar hyperbaric conditions.

Successful delivery of this phase was demonstrated through subsea cutting performed at 70 metres seawater depth. This included 250 underwater cuts performed on structural steel up to 120 mm thick; Human Machine Interface (HMI) and 500 metre depth capable electronic control system; the design and manufacture of 500 metre depth rated subsea laser cutting head; and the system verified at technology readiness level 6 and suitable for further development. 

The next phase of the partnership is planned for 2023-24 and involved the development of the UWLC system targeted at delivering a cutting tool suitable for real offshore cutting scope. The Net Zero Technology Centre will provide funding once again for this stage and a Tier 1 oil and gas producer and vessel operator will also contribute. 

This phase will include a selection of suitable cutting opportunities; the development of the laser cutting head through the incorporation of lessons learned from phase 1; the development of a cutting tool to manipulate the laser cutting head to suit the cutting scope; and the integration of the HMI and electronic control from phase 1 into the intelligent cutting tool to optimise cutting head manipulation and performance.

The success of the second phase will be measured by performance on an actual offshore cutting scope against typical mechanical or abrasive cutting solutions. The objective is to demonstrate the system as a proven cutting technology for suitable applications, with the system being verified at technology readiness level 7 and suitable for further commercialisation.

“It is fantastic to be involved in such a great partnership and work with an inspiring team on this development project,” commented Craig Baxter – Decommissioning Technical Manager, Claxton. “The technology is showing great promise in delivering cross sector decommissioning work scopes. I am looking forward to delivering an offshore decommissioning work scope through 2023 with a view to commercialising the technology and opening it up as a cutting solution available to the oil and gas, nuclear and offshore wind decommissioning market.”

Archer Limited has announced the acquisition of P&A specialist company Romar-Abrado, increasing its growth within the well services sector.

The acquisition is based on an enterprise value of US$8mn, plus earn-out pending trading performance over the 2023-2025 period.

“We are pleased to announce the investment in Romar-Abrado, continuing out growth within our well services segment. The acquisition is another value creating investment which expands our capabilities within workover operations and well abandonment,” said CEO of Archer, Dag Skindlo.

“Romar-Abrado fits well with our strategy for brownfield and P&A. We expect activity to increase within these markets going forward as fundamentals and outlook remain strong. In addition, the transaction will contribute to the acceleration of our international expansion within the well services segment.”

Romar-Abrado offers advanced milling and SWARF handling services to the global P&A market, with its combined approach and operator knowledge providing innovative technologies to deliver permanent, emission-free barriers and alternative zonal isolation solutions.

Jason Broussard, CEO, Romar-Abrado, said, “We are happy to join forces with Archer to further develop and broaden our products and services in Romar-Abrado. Archer is a great fit for the Romar-Abrado business with their global footprint and service offering within workover and abandonment.”

Based on the acquisition and current trading levels, Archer’s financial guidance has increased for 2023, lifting to 20-25% above 2022 levels.

This announcement is but further indication of the mounting interest around end-of-life practices as the global well stock continues to age and environmental concerns continue to build. Perhaps nowhere is this more apparent than in the North Sea where the well intervention market is looking increasingly strong for the years ahead.

To read more about the prospects of the North Sea's well intervention market, find Offshore Network's unique analysis here. 

Neptune Energy, which has a 40% owner share in the Errai project in Norway, has welcomed the announcement from its partner, Horisont Energi, that it has entered into an option agreement on the location of an onshore terminal for the Errai carbon capture and storage project.

The receiving terminal for intermediate onshore storage of CO2 will be located in Gismarvik on the west coast of Norway. From here, carbon would be transported through pipeline to the North Sea, where it would be injected and permanently stored in an offshore reservoir. The option agreement is with Haugaland Næringspark.

Errai is the first commercial CO2 storage project in Norway and could store 4-8mn tonnes of CO2 annually, with the potential to store more in later phases.

Neptune Energy’s Managing Director for Norway and the UK, Odin Estensen, commented, “This is an important step for the development of large-scale carbon capture and storage, and paves the way for a value chain that is crucial for reaching the climate target of net zero emissions by 2050.

“We look forward to leveraging both our oil and gas operations capabilities as well as our significant global experience from operating carbon capture and storage activities."

The Errai project is a key contributor to Neptune's goal of storing more carbon than is emitted from the production and use of its sold product by 2030.

The Errai partners recently submitted an application to the Norwegian Ministry of Petroleum and Energy for storage of CO2 in the announced area on the Norwegian continental shelf. Awards are expected to be announced during the first half of 2023.

Transocean has announced contract awards and extensions totalling US$488mn of firm backlog.

The contracts include a range of work from different fields across the globe. Deepwater Invictus, an ultra-deepwater drillship, was awarded a new three-well contract in the Gulf of Mexico with an independent operator. The contract will contribute an estimated US$43mn in backlog and is expected to commence in direct continuation of the rig’s current programme.

Transocean Barents, a harsh environment semi-submersible, was awarded a new one-well contract with an estimated 110-day duration in the North Sea with a major operator. The contract contributes an estimated US$34mn in backlog and is expected to commence in Q1 of 2023.

In Norway, certain previously disclosed options under the Transocean Norge contract with Wintershall DEA and OMV have now been added to backlog. The incremental term is expected to last 773 days and contribute an estimated US$331mn to backlog.

TotalEnergies exercised a one-well option on its contract with Development Driller III, an ultra-deepwater semi-submersible, working in Suriname. The incremental well is expected to last 90 days and contribute an estimated US$32mn in backlog.

Finally, Harbour Energy exercised the third option on its North Sea, UK, contract with Paul B. Loyd, Jr., a harsh environment semi-submersible, for eight P&A wells, adding an estimated US$48mn in backlog. The additional term is expected to last 275 days and extends the contract to Q3 of 2024.

Global well integrity company, Coretrax, has collaborated with Lee Energy Systems (LES) to deliver a one-trip solution for a major North Sea operator for its P&A campaign.

The collaboration aims to maximise operational efficiencies for the creation of solutions for remedial annular cementing and plug cementing. Coretrax’s CX-2 bridge plug and CX-RTP (retrievable test packer) were deployed with LES’ GATOR Hydromechanical Perforator in order to provide a single-trip system which successfully placed environmental caps across eight wells.

The combined technologies will save operators a total of seven hours in downhole trips.

“As essential decommissioning projects continue to take place across the North Sea, the campaign is a clear example of how our suite of technology, with support from our skilled partners, can service all aspects of the plugging and abandonment process to deliver a full turn-key service,” said John Fraser, Chief Executive Officer, Coretrax.

“In the current economic climate, reducing rig time can save operators considerable expenditure while also reducing project carbon emissions, working closely with Lee Energy Systems and the operator on this project we were thrilled to be able to develop a solution which delivered such significant efficiencies.”

Owner of LES, Paul Lee, commented, “On behalf of the entire Lee Energy System’s team, I would like to thank John Fraser and all the Coretrax team for their commitment and professionalism in seeing these operations through to fruition.

“LES is delighted with its technical relationship with Coretrax where it focuses on its best-in-class solutions as well as ourselves and bring the combination of these teams together. Continuing to improve on these solutions and innovations will continue to be the focus of our two companies. Our goal is to provide industry-leading solutions to this challenging, costly and most important end of well life cycle decom operations.”  

Island Offshore, which owns an extensive fleet of offshore service vessels with a range of capacities, has indicated that their 2023 light well intervention work programme is filling up with several clients planning to increase the use of their service.

The company provided this information in a social media post where it suggested that utilisation is looking to improve further from 2022 levels. It added that the Island Wellserver vessel will be fully utilised in 2023 working on the Norwegian Continental Shelf and will, in December, be dry-docked at Ulstein Yard for class renewal.

The Island Constructor is currently trading outside the North Sea but will return to the region in February to undertake multi-client LWI work throughout 2023.

Continuing, the company explained that its riserless well intervention units are part of a cost-effective and flexible service alternative to rig-based interventions with a value proposition that has shown to be appealing to customers. The subsea well services include diagnostics, stimulation, monitoring, zonal isolation, and mechanical repairs.

Since 2005, Island Offshore has partnered with TechnipFMC and other alliance partners as first moves to complete more than 400 well interventions. The post concluded, “We are proud to be a small but significant player in the market.”

Celebrations rang through the night last week as the third annual OWI Awards 2022 brought industry giants together to highlight the very best in offshore well intervention.

This year the ceremony was hosted in Aberdeen on 25 November, 2022, and showcased a host of innovative technologies and solutions over the span of eight categories. The judging panel was made up of top operators from around the world ready to find the best of the best in well intervention.

Vaarst kicked off the night by taking home the Digital Transformation Leader trophy for its excellent work on the SubSLAM X2, a trailblazing digital solution which collects real-time intelligent data in order to deliver underwater live 3D point clouds with sub-millimetre precision.

Next up was Expro which was the big winner of the night, claiming victory in two award categories; Champion Integrated Well Service Company and Most Innovative Solution. The company’s integrated subsea intervention package and Octopoda system were recognised by the judging panel for their ingenuity and impact on the outer industry, thus earning the double win.

The award for the Best Example of Collaboration went to AKOFS Offshore in this hotly contested category, for its exemplary work with Equinor, offering the AKOFS Seafarer for integrated services utilising the company’s OneTeam model. The services are provided through four entities ­– AKOFS Offshore, IKM Subsea, Archer and Welltec – highlighting the integral prosperities of collaborative work within the industry.

Tendeka took to the top spot for the Best Project Outcome award, shining a light on the company’s remedial solution, Filtrex Conformable Sand Screen, which showed huge success restoring sand-free production across a three-well campaign in Indonesia. The remarkable performance earned Tendeka high recognition from the judging panel.

As sustainability is an incredibly hot topic within the industry at the minute, the award for Environmental Sustainability Innovation presented a very strong roster, but ultimately there could only be one winner, and Exceed pipped everyone else to the post. The company is on a mission to be the global leader of intergraded well management for energy transition, and was subsequently rewarded for its work on carbon neutral well operation.

SLB was awarded for its Plug and Abandonment Excellence thanks to its industry-first wireline service, Epilogue Isolation, wherein operators are no longer required to remove the inner pipe to evaluate well integrity, revolutionising conventional operations. The service reduces P&A rig days, minimising costs and reduces carbon footprint, all of which make the company a worthwhile winner in the eyes of the judges.

To end the ceremony, the final award was that of Significant Contribution to the Industry; an award which showcases the impressive portfolios accumulated by the finalists over the span of their respective company life cycles. The winner of the prestigious award was Weatherford for its rig-less framework approach to decommissioning pre-abandoned phase 3 wells.

Overall, the ceremony was a cause for celebration for not only the winners, but for all the finalists for all the hard work and dedication each operator has put into making the well intervention industry be the best it can be.