Topic: Decommissioning

Petrofac obtains significant decommissioning contract

Region: Gulf of Mexico
Content Types: Report
Date: May, 2022

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Petrofac, a leading provider of services to the global energy industry, and Promethean Decommissioning Company (PDC), a pure-play decommissioning operator, will come together to decommission the South Pass 60, South Pass 6 and East Breaks 165 fields, offshore Gulf of Mexico.

The substantial scope of work includes work on nine platforms, 200 wells and 32 pipeline segments, all of which will need to be safely and assuredly decommissioned.

PDC takes on the role of decommissioning operator and is responsible for fulfilling the field decommissioning orders received from the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement in February 2022.

Petrofac has been appointed by PDC as the decommissioning services provider in a contract valued at around US$200mn. The company will use its proven decommissioning programme management systems, tools, and processes to deliver the programme.

The PDC-Petrofac alliance has selected Danos, a leading Gulf of Mexico offshore services provider, for more than 75 years to support field operations and the decommissioning programme. With nearly 2,500 employees, Danos has a proven history of operational excellence and safe operations.

The project will be led from Houston, with the integrated alliance team using the latest digital software, including Petrofac’s proprietary project management tool Turus, to deliver the decommissioning project with comprehensive dashboards, transparency and assurance.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, commented, “This significant contract recognises our industry-leading decommissioning programme management experience and our unique in-house capability to manage all well and asset decommissioning phases. It’s been more than four decades since Petrofac first began in Texas and in that time we have expanded our offshore capabilities across the globe. This expertise will be applied to the project, complemented by our already strong onshore presence in Texas.”

Aditya Singh, Founder and CEO, Promethean Energy Corporation added, “We are pleased to offer our new outsourced ‘decommissioning operator’ service to the industry and to commence activity on this major decommissioning project. We are fully aligned with all our stakeholders to improve environmental performance through the safe and efficient decommissioning of end-of-life assets. We accomplish this with a dedicated, fit-for-purpose entity, PDC, via an integrated operating service model and focused programme management. I am particularly pleased that the PDC and Petrofac alliance has been selected, leveraging the complementary strengths of both companies.”