Leading institutional investor in the global energy and infrastructure sectors, EIG, has entered into definitive agreements with Novonor S.A. and the Brazilian Development Bank (BNDES) in order to acquire Ocyan Participações S.A.
Ocyan is a Brazilian-based solutions provider to the offshore oil and gas industry that boasts a 23-year track record of delivering for the sector, including in the operation of subsea and decommissioning projects. It is the only operating in the floating production storage and offloading (FPSO) industry and currently operates four offshore units through a joint venture with Altera Infrastructure.
R. Blair Thomas, EIG’s Chairman and Chief Executive Officer, remarked, “I have known and respected Ocyan for decades. The company’s resilience and the strength of its business have helped it overcome significant economic headwinds while maintaining a healthy balance sheet, positioning Ocyan for long-term growth. Brazil is home to over 25% of the global FPSO fleets, and we believe the future market dynamics for oil and gas infrastructure in Brazil are very favourable, underscoring our dual commitment to supporting growth and development in this important region while creating value for our investors. We are also excited to support Ocyan’s ventures in the renewables space to help drive the energy transition forward.”
EIG is looking to finalise the takeover to the tune of US$390mn, continuing its history of investment into the South American country – it has invested more than US$2bn there since 1998. As the latest example of this, the acquisition of Ocyan reflects the company’s comprehensive Brazilian strategy focusing on infrastructure supporting deepwater crude oil production, responsible decommissioning activities and renewables / low-carbon projects.
Roberto Prisco Paraiso Ramos, Ocyan’s Chief Executive Officer, remarked, “Ocyan has built and operated more than US$4bn of drilling rigs, pipelaying support vessels and FPSOs, alone or in joint ventures, always enjoying the very strong support of its shareholders and Novonor. This acquisition does not impact current contracts and operations with our clients and suppliers. This is another important chapter in our history and one that will undoubtedly create new opportunities for Ocyan.”
Offshore Network’s latest Global Well Intervention Report delves into the highly-prosperous global market and analyses the growth of operators utilising well intervention practices as the focus across the industry is shifting towards end-of-life activities and reaching environmental targets.
Assessments issued by Rystad Energy suggest that 17% of the world’s wells will undergo intervention processes by 2027, accounting for 260,000 wells globally. Spending within this market has already seen a surge and is likely to amount to US$58bn by the end of 2023, representing a significant growth of 20% since 2022. Climate consciousness has played a predominant role aiding the growth as mounting pressure is building across the industry to limit environmental footprints, with global companies seeking to make intervention an integral pillar within their business strategies.
In November 2023, COP28 witnessed Saudi Arabia launch its landmark Oil and Gas Decarbonisation Charter (OGDC) wherein 50 companies who represent 40% of the global oil and gas market thus far have signed up to the global pact to speed up climate action initiatives and are committed to become net-zero by 2050. However, it is not just the call for fast environmental action that is driving the intervention market, but the global increase in energy demand is also playing a vital role. According to the International Energy Agency, annual oil demand is expected to grow from 285.7 mboe/d in 2021 to 351 mboe/d in 2045, with oil set to retain a 29% share in the energy mix.
Increasing production rates is still a major priority across the industry, and a factor that must be balanced with the growing need to minimise carbon footprints. Well intervention practices are proving a key avenue that companies across the globe are turning their heads to, from expediting resources from the more veteran regions like the North Sea and the Gulf of Mexico to introducing more of these practices to ‘newer’ regions such as the Middle East and West Africa.
Shell has awarded a sizeable contract to Subsea7, a subsea engineering, construction and services company serving the offshore energy industry, for the decommissioning of subsea infrastructure offshore Brazil.
The infrastructure in question is that associated with the FPSO Fluminense in the Bijupirá and Salema fields of the Campos Basin, at 700 m water depth.
Yann Cottart, Subsea7 Brazil Vice-President, remarked, “Twenty years ago, Subsea7 installed the flexibles and umbilicals for Shell’s Bijupirá and Salema fields and, two decades later, we’re proud to be one of Shell’s chosen contractors to take part in the completion of this field’s life cycle.”
The scope of work for Subsea7 includes the disconnection, recovery and disposal of 10 flexible risers, three umbilicals and nine mooring lines.
The works in question are expected to get underway in December 2023.
Expro, a provider of energy services, has expanded its portfolio of cost-effective, technology-enabled services and solutions within the subsea well access sector by completing the acquisition of PRT Offshore.
Based in Houston, US, PRT Offshore is the only company to provide a complete Hook-to-Hanger solution which enables comprehensive well completions, interventions and decommissioning services from surface to subsea.
In completing the acquisition, Expro expands its portfolio within the subsea well access sector in the North and Latin America. On the other hand, it will help accelerate the growth of PRT Offshore’s surface equipment offering in Europe, sub-Saharan Africa and Asia Pacific.
Michael Jardon, Expro Chief Executive Officer, remarked, “This is an exciting day for both PRT Offshore and Expro as we strengthen and expand our subsea well access technology offering while continuing to deliver value to our customers across the life of their wells.
“Our subsea well access portfolio has a well-established global footprint, especially in the ESSA and APAC regions. We believe this will offer significant growth opportunities for PRT Offshore in these attractive markets. Simultaneously, Expro plans to leverage PRT Offshore’s strong position in deepwater offshore well completion and intervention across the NLA region to provide integrated solutions to our customers.”
PRT Offshore President, Patrick Place, added, “We are looking forward to embarking on this next phase of our journey with Expro. This agreement is an exciting development for PRT Offshore as we integrate our technology, solutions, and expertise with Expro’s market-leading subsea well access portfolio.
“We are excited to continue our best-in-class responsiveness and service quality, as well as leverage the resources of a more robust platform. Our employees, vital and valued, are at the forefront of this transaction, and we are committed to fostering their growth and success in this new chapter. Building on the foundation we have created, this acquisition will open new opportunities for growth, innovation, and success for our company, customers, and employees.”
Petrobras has welcomed the arrival of the floating production, storage and offloading (FPSO) vessel Sepetiba for future work on the company’s giant Santos Basin offshore Brazil.
FPSO Sepetiba is currently undergoing technical procedures before it will be taken to the Mero field within the Santos Basin later this year. The FPSO is capable of producing up to 180,000 barrels of oil and 12mn cubic metres of gas per day, with production expected to begin in Q4 2023.
Sepetiba, which was delivered to Petrobras by SBM, is the second definitive FPSO to be installed in the Mero field, the third largest by volume of oil in place (VOIP), out of all four systems in place. The four units together will have the capacity to produce up to 720,000 barrels of oil per day.
The combined Mero field is operated by Petrobras in partnership with Shell Brasil, TotalEnergies, CNPC, CNOOC and Pré- Sal Petróleo S.A – PPSA.
Expro has announced it has entered into a definitive agreement to acquire the offshore services provider, PRT Offshore, in a bid to expand its portfolio of cost-effective technology services and solutions.
Upon closing of the transaction, which is expected in Q4 2023, Expro will enhance subsea services within the North and Latin America (NLA) region, and accelerate the growth of PRT Offshore’s surface equipment offering in Europe and sub-Saharan Africa (ESSA) and Asia Pacific (APAC) regions.
Based in Houston, Texas, PRT Offshore is the only company to provide a complete Hook-to-Hanger solution, enabling comprehensive well intervention and decommissioning services from the surface to subsea. The unique system allows customers to access the wellbore safely and efficiently while reducing on-board personnel.
Michael Jardon, Expro Chief Executive Officer, said, “Expro is committed to investing in innovation and technology to differentiate our services and solutions offering. This strategic acquisition is exciting for both Expro and PRT Offshore as we strengthen and expand our subsea well access technology offering and continue to deliver value to our customers across the life of their wells.
“Our subsea well access portfolio has a strong and established international presence, particularly across ESSA and APAC. We believe this will provide significant opportunities to expand PRT Offshore’s presence in these attractive regions. Similarly, Expro will leverage PRT Offshore’s strong position in deepwater offshore well completion and intervention throughout the NLA region to deliver integrated customer solutions.”
Nauticus Robotics, a developer of autonomous robots using artificial intelligence for data collection and intervention services, has been awarded a contract by Petrobras to deploy its autonomous subsea robot, Aquanaut, to support the company’s offshore activities.
Aquanaut will be used in Petrobras’ deepwater production field using supervised autonomy for infield inspection services. The contract, one of the largest of its kind to date, consists of approximately two months of subsea inspection and expands Nauticus’ growing international presence to South America.
The fully-electric Aquanaut carries an array of multi-spectral perception sensors that allow the robot to detect, classify, inspect, and act upon subsea infrastructure using its pair of manipulators without direct operator control. This method provides significant cost and greenhouse gas emissions reductions over conventional methods.
Nicolaus Radford, CEO of Nauticus, commented, “A contract with another worldwide leading operator for Nauticus speaks to the state-of-the-art technologies of our autonomous robots as we further penetrate the global markets. The market opportunity for Nauticus in offshore Brazil is significant, as it is one of the world's most active offshore energy basins; we are pleased to enter this market through a world class operator.
“We competed through a rigorous tender process with many well-respected industry competitors to earn this business with Petrobras and eagerly await the deployment of our assets to validate our capabilities. We continue to build our robust pipeline of opportunities, giving us confidence to execute on our mission and deliver long-term value to shareholders.”
Brazil has posed itself as one of the key drivers in the Latin American market that is driving the region's growth in the international oil and gas game. A net oil importer until 2014, Brazil has become the top producer in Latin America in 2016, and since then has enjoyed uncontested leadership in the region. While this represents a great opportunity for the region’s oil and gas sector, from the operators to service providers supporting them, there is a looming decommissioning wave on the horizon.
The global oil market has been witness to many ups and downs since the advent of the Covid-19 pandemic. Far from stability, it has weathered a persistent conflict in eastern Europe; re-emergence of Covid-19 in China; major, consecutive price cuts by OPEC+ nations, and a global uptake on renewable activity. The IEA, however, has indicated that oil demand would remain steady until it reaches a peak in the mid-2030’s at 103mn bpd before beginning to plateau. It predicted that despite the global energy mix changing to accommodate the surgence of renewable practices coming to the forefront, fossil fuels will still hold a 60% share within the energy game until at least mid-century.
The Ministry of Mines and Energy (MME) in Brazil has big plans on drawing investment to the country's petroleum sector. It will be focusing on the various ways to drive exploration in frontier areas and call for investments in mature, as well as marginal, economic fields. Owing to these ambitious goals, there is a dual opportunity for both greenfield development and production enhancement through well intervention.
Besides the active role of Petrobras on advancing the country’s oil and gas industry, new players are also emerging as the state-owned Brazilian Petroleum Company has been passing on its mature assets to several entities from BW Energy to Trident over the last few years. Petrobras itself has plans to decommission 26 of its floating platforms, with the P-32 asset scheduled to begin the process this year.
On the other hand, high marketed utilisation rates of offshore rigs, especially in Latin America following the eastern European conflict, led to a supply chain gridlock. While many operators are considering collaboration between companies in order to use the same vessel for their respective assets, logistically, that process could also present challenges.
Another challenge in the well intervention industry lies in tackling the high costs involved in the process. This has resulted in the popularity of a slightly more fresh-faced method – riserless light well intervention (RLWI). Used instead of heavier vessels, this has the potential to significantly reduce cost of operations and minimise environmental impact – an increasingly pressing concern for operators.
ROVOP, a large independent remotely operated vehicle (ROV) solutions provider, has announced a US$25mn senior secured credit facility with Cordiant Capital (Cordiant), a specialist global infrastructure and real assets manager.
Backed by global private equity firm Bluewater, ROVOP is known for providing its customers with best-in-class equipment and services and is a long-term and trusted partner to blue-chip customers in all key offshore sectors.
Cordiant will support ROVOP with investment into its fleet infrastructure and employees. This will allow the business to continue capitalising on highly favourable offshore market dynamics by securing new contract wins across both new build construction, decommissioning, surveillance, and maintenance services.
Neil Potter, CEO ROVOP, said, “ROVOP is seeing record demand for its services, and Cordiant’s investment means we’re better placed than ever to take advantage of increasing international demand for subsea robotics in both renewable and traditional energy sectors. This investment solidly positions ROVOP for further growth as we continue to invest in our fleet and our people.”
Stephen Foss, Co-Head Energy Transition Infrastructure at Cordiant Capital commented, “ROVOP is a company with great momentum and we’re excited to be supporting them on the next stage of their growth journey. We firmly expect infrastructure service providers like ROVOP to continue thriving as the desire to develop autonomous, low-cost based means of power generation and expansion of digital communication as they continue to grow in importance.”
Ocyan, an oil and gas company with a sustainable attitude and knowledge to provide solutions for the industry, has announced that a Solstad Offshore's vessel has arrived in Brazil, ready to perform decommissioning activities.
The Normand Cutter, which is under Ocyan’s management, will perform decommissioning work on Petrobras subsea structures at Campos Basin and Sergipe-Alagoas. The vessel finally arrived earlier in January after the contract was awarded last year.
Normand Cutter is an offshore construction vessel (OCV) of 127.5 m long, equipped with a crane presenting lifting capacity for 300 tons, in addition to a flexible pipe lay system of up to 100 tons and pipe storage of up to 1250 tons. The ship has a crew capacity of 114 people, however Ocyan’s onboard team will be composed of 23 people.
The vessel arrived in Brazil after beginning its journey in Norway. On 12 December 2022, Normand Cutter departed from the country onto Scotland where collection and pipe lay systems were deployed. Now in Brazil, the vessel will perform the first campaign for the collection of equipment at Campos Basin, where it will remain for two weeks to then unload the structures at Vitória (ES). At the end of this first stage, still at Espírito Santo, it will perform the last stage of equipment deployment – rollers and reels for storage of flexible pipes – necessary for the sequence of the project.
André Luiz Magalhães, Executive Manager for Subsea Construction at Ocyan, commented, “This is the first decommissioning contract for offshore production fields in Brazil and we can say that we are at the forefront when it comes to the national production chain. The project will give us experience and a great expertise. This project marks the return of Ocyan to the subsea construction area. We expect a bright future with new opportunities in other companies, including international operators.
“After all this trajectory, in February, Normand Cutter will start to operate definitely at Campos Basin, collecting structures of FPSO Cidade do Rio de Janeiro and FPSO Cidade de Rio das Ostras, and in the second semester, it will initiate the work at Sergipe Alagoas Basin, in the area of the FPSO Piranema. All material will be treated and sent for recycling. Offshore services under the contract will last for approximately one and a half years,” explained the executive.
Rafael Guigon, Director for Subsea Construction Contracts at Ocyan, added, “For Ocyan, the presence of the Normand Cutter in its fleet is a strategic point and will provide a window of opportunity for new subsea construction contracts. From now on, we can search for other projects that require this kind of asset as a work tool for activities performed in this area. This vessel will allow the execution of simultaneous projects.”
TechnipFMC, a global oil and gas company that provides complete project life cycle services for the energy industry, has been awarded a substantial master services agreement (MSA) for subsea services offshore Brazil.
The three-year contract, awarded by state-owned Petrobras, has an option to extend for a further two years. TechnipFMC will provide life-of-field services to support its installed base offshore Brazil.
The contract – worth between US$250mn-US$500mn as per TechnipFMC’s definition of a ‘substantial contract’ – covers installation, intervention, and maintenance of both equipment and tooling, as well as technical support for subsea umblicals, risers and flowlines.
The agreement succeeds a previous MSA and supports Petrobras’s increased volume of operations. Services will be supplied from TechnipFMC’s base in Macaé, Brazil.
Jonathan Landes, President, Subsea at TechnipFMC, commented, “This new MSA continues our enduring partnership with Petrobras. We are delighted to continue this relationship through this direct award. For 40 years, we have provided services from Macaé, demonstrating the strength of our commitment to delivering services using our in-country workforce.”
Halliburton Company has completed the installation of the industry's first single trip, electro-hydraulic wet connect in deepwater for Petrobras in Brazil, marking a significant achievement in downhole electric completion technology.
The Halliburton Fuzion EH electro-hydraulic downhole wet-mate connector helps increase well recovery factors by maintaining integrity of Halliburton's SmartWell completion systems throughout the well's lifecycle. It helps further facilitate safer and simpler intervention operations and avoids potential formation damage because of workover operations.
Halliburton plans a future version of a dual trip system Fuzion-EH connector for qualification and implementation by Petrobras in 2023. This system will provide additional benefits in SmartWell system installations while maintaining the benefits of the single trip system.
Mark Dawson, Vice President of Halliburton Completion Technology, Halliburton, commented, “The Fuzion-EH connector is the first step in the fully electric intelligent completion journey and is a product of collaborative development with Petrobras and Shell. This achievement paves the way for us to give customers the autonomous capability to control and manage reservoirs across their wells and assets and deliver on our Future of Completions.”
Olivier Wambersie, General Manager Brazil Technology, Shell, added, “This significant well technology development marks the first single trip, multiple zones, open hole completion. It was a remarkable example of teamwork, partnership and technical collaboration between operators and Halliburton in the Brazilian ecosystem. This technology's first application was enabled using the ANP Levy.”
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