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Fairfield Energy recently announced the removal of the topsides from Dunlin Alpha platform which is the latest milestone in the decommissioning of the four fields which make up the Greater Dunlin Area.

Following the hook down and removal activities undertaken by the HAF Consortium (Heerema Marine Contractors and AF Offshore Decom) last month, Heerema’s SSCV Sleipnir transferred the remaining modules to its deck before removing the main 11,750-tonne Module Support Frame (MSF) in a single lift. The Sleipnir then returned to AF Offshore Decom’s Environmental Base at Vats where more than 95% of the Dunlin topsides will be recycled.

The Dunlin Alpha installation, located approximately 137 km northeast of Shetland and in a water depth of 151 m, produced its first oil in 1978. In the 37 years that followed, more than 522 million barrels of oil were recovered from the Greater Dunlin Area, comprising the Dunlin, Dunlin S/W, Osprey and Merlin fields. Fairfield Energy acquired the assets in 2008 and took over full operatorship in 2014, maximising production during its late-life stage and then progressing its subsequent decommissioning programmes.

Alan Scott, General Manager for the Greater Dunlin Area Decommissioning Project said, “This is a poignant milestone for an installation which has been a central part of UK North Sea production since the industry’s earlier days. Notably, in 1978 it was the first field to produce into the Sullom Voe Terminal on Shetland, paving the way for the many which came after.

“The Greater Dunlin Area itself has made its mark but it’s important not to forget the thousands of people who have visited or called the platform their working home. Dunlin has always been blessed with a strong team spirit and this is another core part of its legacy, having influenced the careers of many across the industry. I’d like to thank everyone who has been involved with Dunlin over the years, helping the asset overcome any challenges and achieve its many successes,” Alan Scott added.

An agreement was reached with the UK authorities in 2015 that the fields had reached Maximum Economic Recovery (MER), enabling Fairfield to begin the multi-asset, multi-year decommissioning of the Greater Dunlin Area. Since then, Fairfield has developed, consulted upon and gained the approval for its decommissioning proposals and executed a series of scopes which, at their peak, employed 600 personnel from over 26 drilling, subsea and topside operations companies.

Gary Farquhar, Platform and Infrastructure Decommissioning Manager said, “Project execution has involved the P&A of 12 Osprey and four Merlin subsea wells; the decommissioning of the extensive subsea infrastructure associated with those satellite fields; the decommissioning of subsea power import, gas import and oil export infrastructure; the P&A of 45 platform wells; and the engineering down of the Dunlin Alpha topsides. We are pleased to have added Topsides Removal to the list of activities that have been safely and efficiently executed.”

Ithaca Energy, an oil and gas operator has contracted Well-Safe Solutions to plug and abandon (P&A) six wells on the Anglia Platform in the Southern North Sea.

The contract – for an undisclosed sum – will see the Aberdeen-based well decommissioning specialists provide project management, well engineering and all managed delivery services for the project.

The Well-Safe Protector, a heavy-duty harsh environment jack-up rig, is nearing the end of extensive technical preparations and will mobilise to the field in late summer 2022.

Matt Jenkins, Chief Operating Officer at Well-Safe Solutions, said, “This full-service contract is further vindication of our operating model and allows Ithaca to realise the benefits of Well-Safe’s extensive experience in the Southern North Sea. Well-Safe delivers environmentally-friendly and cost-effective well decommissioning operations, unlocking key learnings over multi-well, multi-operator campaigns."

An option to P&A an additional three subsea wells is also available during 2023.

Jane Eddie, Bid Manager, added, “We have worked closely with Ithaca Energy to design a contract which meets their needs and – crucially – those of Offshore Energies UK, the North Sea Transition Authority and other industry stakeholders.”
“Our team is uniquely positioned to support Ithaca Energy with their decommissioning obligations, as we are the first UK-based company with owner-operated rigs to exclusively perform well P&A operations.”

Ricky Thomson, OEUK Decommissioning Manager, said, “Decommissioning has a crucial role to play in helping the UK deliver its net zero ambitions, as outlined in the North Sea Transition Deal. The UK’s decommissioning industry has an incredibly exciting future ahead, and projects like this will be vitally important to realising those ambitions.

This contract announcement follows recent news of Well-Safe Solutions’ purchase of the WilPhoenix semi-submersible rig from Awilco Drilling. The rig will now undergo conversion for well P&A activity and has been renamed the Well-Safe Defender.

The Petroleum Safety Authority Norway (PSA) has given OKEA consent to use COSL Promoter for permanent plug and abandonment of wells on the Draugen field.

COSLPromoter is a semi-submersible drilling rig designed to operate in water depths up to 750 metres. This compact unit is designed for North Sea / Norwegian Sea and worldwide use in harsh environments. Station keeping is maintained by an 8-line mooring system or by dynamic position mode maintained by 6 fixed pitch, variable speed thrusters (DP3).

Draugen is a field in the southern part of the Norwegian Sea. The field has been developed with a concrete fixed facility and integrated topside, and has both platform and subsea wells. Stabilised oil is stored in tanks at the base of the facility. Two pipelines connect the facility to a floating loading-buoy. Production started in 1993.

The water depth in the area is 250 metres. Draugen was discovered in 1984, and the plan for development and production (PDO) was approved in 1988. It produces oil from two formations. The main reservoir is in sandstone of Late Jurassic age in the Rogn Formation. The western part of the field also produces from sandstone of Middle Jurassic age in the Garn Formation. The reservoirs lie at a depth of 1,600 metres and are known to be relatively homogeneous, with good reservoir quality.

Tailwind Energy has successfully completed a well intervention in the Dana-operated Bittern Field, located in the North Sea.

On well PA-A2, new perforations were added to the upper reservoir and a water shut-off plug in the lower reservoir section.

This intervention has increased the oil rate from c. 1,000 boe/d to c.3,000 boe/d, marking a significant boast to production.

The news comes soon after the company reported a strong financial performance across 2021 with robust figures. In the 2021 CEO review, it was reported that actual production averaged 14,000 boe/d and all assets performed at, or over plan except for Columbus. As a result, the company recorded an increase in revenue to US$382mn relative to US$263mn in 2020. Such a strong performance has allowed the company to recycle cash back into the business and last year it invested the highest capital spend programme to date which included two wells being successfuly drilled and completed. 

Well decommissioning specialist Well-Safe Solutions, has officially added WilPhoenix, a semi-submersible drilling rig to its fleet.

The company stated that the WilPhoenix will now undergo improvements as part of its repurposing as a dedicated P&A asset, and will soon be known as the Well-Safe Defender. In May, Awilco Drilling had made the deal to sell it to Well-safe Solutions.

The WilPhoenix is one of Awilco Drilling's two Enhanced Pacesetter semi-submersible drilling rigs. It was built in 1982 and upgraded in 2011. WilHunter, Awilco Drilling’s other semi-submersible, is in the process of being sold for recycling.

Phil Milton, CEO at Well-Safe Solutions, said, “The addition of our second semi-submersible rig, to be known as the Well-Safe Defender, is a landmark achievement for the business.”

Built in 1983, the WilPhoenix is an established presence in the North Sea, having been extensively refurbished and upgraded in 2016. Well-Safe Solutions expect to take delivery of the rig in June 2022 and will carry out optimisation and recertification requirements for future well plug and abandonment (P&A) activity.

The rig acquisition is expected to create around 100 jobs in a variety of onshore and offshore roles, in addition to the 231 personnel already employed by Well-Safe Solutions.

Neil Ferguson, Operations Manager at Well-Safe Solutions, added, “The WilPhoenix has a strong track record and is the right candidate to undergo conversion for well P&A.”

Well-Safe Solutions is the first UK company with its own assets to provide a Tier 1 well decommissioning service focused exclusively on P&A, with the Aberdeen-headquartered company owning and operating the Well-Safe Guardian semi-submersible and Well-Safe Protector jack-up rig.

The WilPhoenix is expected to enter service with its new owners as the Well-Safe Defender in late 2022.

Energy technology start-up Clearwell Technology has taken up a feasibility testing programme for a new tool that could cut the costs and emissions of well decommissioning projects by half, following support from Scottish Enterprise.

Bruce Cardno and Paul Ray set up Clearwell Technology to develop their thermal milling technology, Therm-X-Mill, and transform the current methods of oil and gas well decommissioning by eliminating the use of drilling rigs and their associated equipment.

SMART:Scotland grant funding of £84,000 from Scottish Enterprise helped Clearwell Technology perform a testing programme. The company is now looking ahead to the next stage of development which will involve further testing, development of a prototype tool and field trials prior to full-scale commercialisation.

Scottish Enterprise head of low carbon transition Andy McDonald said, “Industry reports highlight that the decommissioning market is growing, especially as more focus is spent on energy transition activities and less on drilling new wells.

“This creates opportunities for companies like Clearwell Technology to provide decommissioning technology that will help aid the wider global energy transition agenda and it is fantastic to see a company from Aberdeenshire take forward this innovation.

“Scottish Enterprise aims to support entrepreneurial talent to build a stronger more sustainable Scottish economy and projects like this highlight the collaborative approach to delivering net zero solutions taking place here in Scotland.”

According to a Decom Insights report from Offshore Energies UK, the decommissioning market is currently around 12% of UK offshore industry expenditure with forecasts of over £16bn due to be spent over the next decade and around 4,000 wells estimated still to be decommissioned.

In addition, the recent North Sea Transition Deal set out the sector’s decommissioning supply chain target to ensure 50% local content around projects – all creating opportunities for Scottish businesses.

Bruce Cardno, Director of Clearwell Technology, said, “As energy companies focus on transition our technology aims to make the oil and gas well decommissioning process simpler and more environmentally friendly, while also releasing resources to drive net zero projects in the industry.

“Almost half the cost of any decommissioning project is spent on the plugging and abandonment of the wells so by reducing this cost with our Therm-X-Mill tool we aim to transform the industry’s approach.

“We are ramping up our testing from our site in Aboyne as we progress towards prototype development so this is a really exciting time for us, and we are hugely thankful for the support from Scottish Enterprise to help drive our technology.”

Legasea has announced the successful completion of a significant circular economy project, requiring the disassembly of 10 decommissioned Subsea Production Systems recovered from the Celtic Sea.

According to Legasea, the ‘Shore-to-Store’ service, supported by the Scottish Enterprise’s Green Jobs Fund, has reduced the carbon footprint of subsea decommissioning operations, by taking subsea equipment that is no longer required, and finding routes to refurbish, recertify, remanufacture and reuse, keeping as many components as possible in use, with a projected annual carbon saving of 10,000 tonnes CO2e.

The company said that the project is the culmination of several years of research and planning conducted by Legasea, involving engagement with a wide range of operators and service companies in the subsea sector, to develop a service which benefits the industry environmentally and economically.

Since its establishment in 2018, Legasea has also consulted with a range of government and industry stakeholders, to ensure that the service is closely aligned with decommissioning and environmental policy, and the company has been awarded a SEPA Waste Management Licence, which permits the company to accept a range of material, defined as waste, from subsea decommissioning operations.

Commenting on the project completion, Lewis Sim, Legasea Managing Director, said, “We are delighted with the progress made, with the introduction of the Shore-to-Store service to the subsea industry, and the support received from across the sector has been phenomenal. Every member of our team has contributed to this successful project, and they deserve a big thank you, as do all of the supply chain companies that helped to support the project.

“With more than 6,400 Trees installed globally, at least a quarter of which are in the North Sea; we look forward to assisting with many more decommissioning scopes, with the recovered parts supporting late-life operations in a sustainable manner,” Lewis added.

Speaking in an exclusive interview with Offshore Network, David Fisher, Business Development Manager at Oilenco, highlights the latest technology his company is offering to support well intervention and abandonment operations, and looks to the future in the ever-changing oil and gas market.

Since its foundation in 2008, Oilenco has established itself as a trusted designer, engineer, and manufacturer of well intervention and downhole tooling, offering solutions and support to the global oil and gas industry. Founder and Managing Director, Warren Ackroyd, established the company in Aberdeen, UK, and the company has grown and evolved internationally, with a current workforce of 38 employees and growing.

Oilenco’s core business region, as Fisher explained, is the North Sea where they serve key oil and gas operators. While the North Sea will continue to be a major focus for the company, they have recently opened an office in Stavanger, Norway, Oilenco Norge AS, to establish themselves internationally as one of the market leaders in their field. Recent projects in Australia, West Africa and the Middle East strengthens their capabilities as a global provider.

On display at OWI EU

While their scope now spans across the globe, on the immediate horizon is the Offshore Well Intervention EU 2022 (OWI EU 2022) conference arriving in Aberdeen on 14-15 June. As event sponsor, Oilenco is looking forward to showcasing a range of cutting-edge solutions available to the market.

One such technology is their Hybrid Plug range which can be used on routine well intervention or abandonment operations. Fisher commented, “The Hybrid Plug provides a secure, high-performance well isolation barrier that can be set and retrieved on slickline and uses an existing landing nipple profile within the wellbore.”

“One of the key components of the Hybrid Plug is its sealing arrangement. Conventional lock mandrels that are nipple-set tend to have a seal stack and are run and set into a specified landing nipple. However, the Hybrid Plug uses a mechanically ‘energised’ seal providing a ‘best of both worlds’ approach; the pressure integrity assurance of a bridge plug sealing element and the simple operation of a conventional blanking plug. Essentially, it is a cross between a standard lock mandrel design and a bridge plug sealing element, providing a very robust bi-directional seal.”

“As it is a ‘one-run’ solution, it brings significant time savings to the operator generating cost efficiencies, increasing safety, and reducing risk.”

In one case study demonstrating the value of this product, a North Sea operator was conducting a programme of plug and abandonment activity over several subsea wells using a mobile offshore drilling unit (MODU). Oilenco, to support the operation, provided a package of downhole equipment including the Annulus Bore Hybrid Plug package. During routine operations, the operator experienced difficulties establishing a satisfactory pressure test against a bridge plug that had been set in the annulus tubing. As the tubing hanger featured a landing nipple within the annulus bore, Oilenco’s Hybrid Plug could be set in the hanger profile.

The plug was successfully set, and pressure tested by the onboard slickline crew allowing this phase of the programme to be completed on schedule. It was noted that the hybrid plug solution was dependable, easy to operate, saved time, and broadened the capability of the regular offshore crew.

Another technology which the company is looking to showcase at OWI EU is the Pressure Wave Valve, an open-on-demand, intervention-free equalising device that can be attached to lock mandrels or bridge plugs and operates only when it senses a specified ‘wave’ of applied pressure.

Fisher remarked, “If you set a plugging device in the wellbore, you would have to intervene on the well to equalise it before you can pull it out of the well. This means you have to rig up wireline on the well which is an extra run in the hole causing extra risk and extra cost. However, if you have the pressure wave valve installed, it means when you want to equalise, you simply cycle pressure starting from a low-pressure, increasing to an upper pressure, and returning to a low pressure again repeatedly over 6 to 12 cycles. After a predetermined number of cycles, the valve will open.”

The Pressure Wave Valve is particularly useful in P&L/P&A operations and completion workover operations. In one instance, when an abandonment service provider was seeking timesaving opportunities to improve efficiencies during abandonment tubing recovery, they sought the help of Oilenco.

While similar solutions have been in use for several years, Oilenco’s Pressure Wave Valve incorporates significant improvements to increase the operational reliability of the device, including enhancing debris management. In the abandonment project, Oilenco were able to configure the Pressure Wave Valve for the client within their desired operating parameters. The Pressure Wave Valve was pressure cycled open, allowing the tubing to be pulled ‘dry’ without the need for further wireline intervention.

The operation of the valve is non-time dependent. Activation cycles can be carried out within minutes of each other or several months or even years later, with no specific setups required, and the operating parameters of the Pressure Wave Valve are not affected by changes in the wellbore pressures below.

A full range of support

The Hybrid Plug technology and Pressure Wave Valve are key products for the company, but as Fisher was keen to emphasise, they are just the tip of the iceberg.

“We have a wide range of products and solutions that can be tailored towards a customer’s requirements. At OWI EU, we will be discussing different solutions that are relatable to routine well intervention operations and abandonment, such as our scale remedial package, safety valve remedial package, sleeve solutions and much more.”

Oilenco is more than just a high-quality product supplier. They offer a range of services including product training, so customers are fully emersed in the Oilenco solution and full operability of the product.

Fisher noted, “If a client wants to run the equipment themselves rather than receiving onsite support from an Oilenco engineer, we provide training either in our workshop or through training videos (if overseas), as well as providing technical manuals and documents to support our solutions. If attending a training course in person, the delegate is issued with a certificate of competence at the end.”

Ready for the rebound

The pandemic created challenging times for all industries, with those operating within the oil and gas industries forced to contend with uncertain prices, lockdown regulations and employee safety. While we are not completely on stable ground yet, the early recovery signs look positive for the oil and gas sector.

In relation to his company, Fisher remarked, “2018 and 2019 were strong years for us with consistent growth throughout both. 2019 was our best performing year with well intervention and abandonment activity in the North Sea. Covid presented many challenges, but we were here to help our clients through these challenging times, continuing to provide essential support, collaborating with their teams to meet supply requirements. As a result, not only were we fortunate enough to retain our headcount and keep the years of knowledge and experience we have within the company, but we also invested in our facility to ensure that post Covid, we continue to design and manufacture innovative solutions, and provide the high-quality products and services our clients have come to expect from us.”

“Coming out of Covid, certainly from a market perspective, a lot of the projects which were shelved or delayed are starting to resurface. Not only with the current oil price, but partly due to the current geopolitical situation, demand is growing and globally, we are seeing operators investing in production either in existing wells to help increase production or investing in exploration and new well discovery.”

“That being said, well abandonment is still very much on the agenda for many operators, and I am sure it will be here for the next 20-30 years. As Oilenco’s solutions are transferrable between intervention and abandonment, we look forward to continuously supporting our clients globally” Fisher commented.

In concluding, Fisher stated, “Overall, from a company side, it is good to be in a post-Covid recovery space. Being back in face-to-face meetings with clients, being involved in conferences such as OWI EU, seeing and hearing what industry and operators are planning. Oilenco can do everything from initial design to manufacturing, testing, inspection, and training, as well as providing access to a large rental fleet for immediate release. Our team have a breadth of experience that runs right through from concept to completion, it is what makes us a strong company and we are looking forward to showcasing our capabilities.”

Find out more about Oilenco at their website here.