Europe

DOF Subsea has been awarded an Engineering, Preparatory works, Removal, Transportation, Recycling and Disposal (EPRD) contract by Norwegian energy giant Equinor Energy AS.

The contract is in relation to the Heimdal subsea decommissioning works and includes the recovery and disposal of approximately 2,000 tons of subsea equipment. The offshore work is scheduled in two main campaigns across three DOF vessels between 2024 and 2028, with project management and engineering work to start immediately. The preliminary work will be delivered by DOF’s expert cessation team based in Bergen, Norway.

Mons S. Aase, Group CEO, DOF, said, “I’m pleased that we are once again trusted to deliver a complex subsea project for Equinor. I look forward to completing the project successfully and safely.”

Heimdal is the Equinor-operated field in the North Sea, which has been operational since 1985. The contract states DOF Subsea are responsible for the removal, dismantling and recycling of the main platform topsides and jacket.

Aker Solutions can now offer operators a Second Life Report on the raw materials a platform contributes to the circular economy as part of its decommissioning offering in light of the fact that 99% of a drilling platform can be recycled.

The report spotlights the quantity of materials yielded in decommissioning work, and for topsides with heavy lift records, that leads to a lot of valuable raw materials. Maintaining more sustainable economic activity relies heavily on reusing as many materials as possible, as far less energy is used in the recovery of recycled materials than in the production of newer ones. Steel recovered offshore has many unique qualities and uses that can be capitalised on.

However, the process of rendering these huge structures into salvageable materials can be a brutal endeavour. For example, on its final journey, the drilling platform used in the Norwegian Valhall oil and gas field was carried on the Pioneering Spirit heavy lift vessel only to be left at the Aker Solution’s Stord yard in May 2022 as large machines waited to demolish it. The 6,700 ton platform was first stripped of all hazardous materials and electrical waste before it was levelled by explosives. This process, however, speeds up the demo and makes it safer by bringing down heavy structures to ground level, avoiding the need to work from height.

The original Valhall installations have produced over one billion barrels of oil equivalent since the field entered production in 1982, with two platforms having been recycled at the Stord yard, and a third will be decommissioned later this year. While the original structures will continue on as raw materials, Aker Solutions has aided Aker BP in extending the life of the remaining Valhall centre for an extra 40 years.

Aker Solutions has already accumulated a pipeline of orders for structural teardowns in the North Sea, and already have some 40,000 tons of recovered hulks awaiting dismantling and recycling at the Stord’s yard.

Oilenco Norge AS, sister company to well intervention and abandonment company Oilenco Ltd, has appointed Dean Reynolds as Business Development Manager for their Norway operation.

Reynolds will transfer from Oilenco to Oilenco Norge AS after four years with the market-leading company and will be responsible for the growth of the Oilenco brand in Norway.

Reynolds, who has more than 20 years’ experience in the oil and gas industry, commented, “Oilenco is an innovative company bringing together bespoke design engineering expertise and custom manufacturing services to support clients with the most demanding of challenges. In my new role as Business Development Manager for Oilenco Norge, I will be responsible for developing client relationships, raising awareness of Oilenco products and capabilities, whilst demonstrating our compliance with the latest industry standards and high-quality service the company provides.

“Over my career I have gained valuable knowledge and experience from the front end, working offshore, understanding the needs of engineers, as well as supporting oil companies to provide a superior service to their customers. I am sincerely grateful to work for a fast paced, forward thinking company like Oilenco and to be given this opportunity to showcase our evolving product range to the Norwegian market.”

Blair McCombie, Operations Director, Oilenco Ltd remarked, “Oilenco have been working alongside oil and gas companies in the Norwegian sector since 2008, and following the establishment of Oilenco Norge in 2021, it is critical we have a dedicated operation and technical support in region. This appointment strengthens our position and shows commitment to provide a more collaborative service to our clients. As a significant producer of oil and gas, we look forward to supporting the Norwegian sector, bringing efficiencies to their well intervention operations through our design, manufacturing and engineering capabilities. Dean is a great asset to the company and addition to the Oilenco Norge team, and with his technical knowledge and years of experience, is a talented resource to work alongside our client to supply the service they require.”

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.

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.