Middle East

The rate of technological advancements is advancing, and it is pulling the oil and gas industry into new realms of digitalisation, automation, AI and more. The field has become more competitive and yet, despite this, the latest innovation from Blue Spark Energy, the wireline applied stimulation pulsing technology (the BlueSpark tool) which has the potential to radically increase the efficiency of well intervention operations, stands apart.

In a virtual webinar, Blue Spark Energy representatives Todd Parker, CEO, and Chris Grahame, VP of Sales and Marketing, presented the technology, describing it as the future of environmentally responsible wellbore interventions.

As Parker explained, the engineers at Blue Spark Energy have utilised electrical energy in a third format outside of AC or DC, high pulsed power, for application within the well intervention sector. High pulsed power is the idea of taking electricity and compressing it to be released in a very short period of time. Returning to school physics, power equals energy over time, so by reducing the time taken, the power is much higher. By example, Parker demonstrated a test in the Blue Spark Energy laboratory which used the energy equivalent to two cell phone batteries and releasing it in microseconds to generate power in the hundreds of megawatts range. The company has taken this and built a device to take electrical energy, compress it and then produce a high power output for use in the well intervention sector.

Production enhancement

So what can this technology actually do? Well, as Parker continued, “The primary application of this technology is to return oil wells to optimal production by removing blockages that could cause disruptions. The BlueSpark tool, through repeated high power pulses, can effectively remove organic and inorganic debris in production zones and reopen perforations which have been plugged either immediately after perforation or as the well has matured.”

Already Blue Spark Energy has deployed this technology in hundreds of wells across the globe and returned with some incredibly promising results. Listing some of these examples, Parker stated that in one example in the Middle East, a customer used the BlueSpark technology for two remote wells and found that the high power pulses were just as effective as coiled tubing acidisation methods and was able to more easily target specific zones. Additionally, the small footprint and ability to rapidly mobilise to the remote location (due to the small amount of equipment and personnel required) meant the BlueSpark tool produced the same result in just 10% of the time and led to an aggregate increase of 60% in oil production across the two wells.

Parker noted that the technology can be used to clear blockages across the wellbore – be that in the productive zone or the completion equipment further up – any part that has the capacity to create somewhere for debris to start building up the BlueSpark tool is effective at treating the disruption. It is also not restricted by the kind of debris that is obstructing the well, and anything from waxes, calcium carbonate or even iron sulphides can be treated. With other intervention methods you often need deeper diagnostics to ascertain what chemicals are required, for example, but all Blue Spark Energy operators need to confirm is if there is debris and where – they are not concerned with what it looks like or what it is.

To emphasise this, Parker added, “In the North Sea at an unmanned installation the operator encountered a barium sulphate scale build up in the tubing and across the surface controlled subsurface safety valve (SCSSV). Operators were unable to use conventional methods due to scale build up restrictions above the SCSSV and were therefore required to shut-in the well and set up a plug as a barrier below the SCSSV. We were able to take out a small wireline mast and within 24 hours place the technology across the SCSSV, remove the debris and put the well back into production. This was a 3500bpd producer in danger of being shut which we were able to rapidly treat without causing any damage.”

Multiple applications

In addition to cleaning screens and gravel packs in oil production, the BlueSpark tool has also been deployed for usage in other applications such as water source wells or improving geothermal efficiency, proving its versatility across the energy sector. In another case in the North Sea, Parker showed how the technology was used to improve the efficacy of decommissioning wells by removing debris to allow for a rigless type of decommissioning as opposed to section mill or something more complicated.

This technology, as Parker continued, is particularly suited when deployed by wireline tractor, and is compatible with all wireline industry equipment – if a perforating gun can be run off the wireline unit so can the BlueSpark tool. It is very transportable, able to be transferred in a helicopter for example, and is deployed in pairs to de-risk operating time. It also has an incredibly small environmental footprint, without using chemical fluids, explosives and requiring only a small amount of energy. Although the pulses are released at high power, due to the low energy used, there is no risk of damaging any equipment.

Saving money as well as the environment

After the webinar, Parker spoke to Offshore Network to shed more light on this innovative new technology and which markets the company is targeting in the future.

Parker said, “The process people are talking about a lot at the moment is the electrification of a lot of carbon intensive processes. The BlueSpark tool can become that intervention device that leads in the electrification of conventional well intervention techniques. There is no risk of creating a situation worse than you had before, no safety hazards, and finally you are reducing the carbon footprint of your intervention operations.”

Aside from the environmental and safety benefits, the BlueSpark technology also offers significant financial incentives as well. Parker added, “The costs savings mainly come from operators not having to move a rig or heavy equipment, and the ability to intervene quickly. It costs less to transport, there are less people required to move it, and it’s very fast to set up (there is no wellbore preparation). Looking from a fiscal perspective you are probably looking at being able to save more than 50% over using a conventional technique to accomplish the same result. We have case studies where we have saved customers days of operating time and millions of dollars.”

The story so far

Parker took some time to reflect on Blue Spark Energy’s journey so far which, at times, has been quite frustrating. He said, “The physics is basically high school physics, the engineering was not, so it took some time to build the tool robust, durable and slimmer to access more wellbores, but we finally had a commercial model in 2013 which we started to take around the world.”

“Unfortunately this is where you run up against the inherent conservativeness of the industry itself. From 2013 to 2018 we really faced that from a lot of operators who, broadly speaking were interested in new technology but really struggled to introduce it as it is radically changing their intervention, not changing a small part of it such as introducing a type of chemical. It took us a few years to get some customers to where they were comfortable making that change.”

Currently Blue Spark Energy has quite a large capacity, after deploying to more projects and manufacturing more assets to meet demand. It has ongoing projects in Nigeria, Denmark, Norway, the UK, Malaysia and the Middle East and, to date, has completed over 600 projects across the world working with a variety of clients such as Exxonmobil, Chevron, Shell, Equinor and more. Across the thousands of well descents attempted by the technology, it boasts a 99.6% operating efficiency and rarely creates downtime for customers. As there is a small amount of equipment and capex required to perform an operation, it is a relatively easy fleet to maintain. Additionally, as there are no complicated moving parts and the supply chain is quite simple, it is an extremely scalable business.

Looking ahead

Turning to the future, Parker commented, “Covid had an impact on business, 2020 was not our best year but it was our second best year. Now there is a tremendous backlog of wells that require maintenance and people want to do it rapidly and effectively, so we are envisioning a big uptake in activity in the short term. We think it is an opportunity for a lot of customers to see the benefit of this technology.”

Parker continued, “We want to continue to operate in logistically challenged regions, that is the easy argument. In some regions such as Africa, the Middle East, and Far East it is hard to get equipment to these locations, so why not try something radically different that is easy to get there.”

“The second dimension is we are still discovering additional applications. People are coming to us and asking, can we do it for this or use it for this purpose and we are continually refining the technology. So while there is a geographic spread there is also some technical growth we are seeing as well. Being able to help the decommissioning process, for example, to more effectively cut off any methane leaks in the future is exciting, as it is a big topic which at the moment has tremendous costs for operators. We are starting to get some real interesting air time in that space.”

Welltec has announced the agreement of a long-form contract (LFC) with Saudi Aramco which, following an extensive approval process, will see Welltec deliver completion products and services across the Saudi Aramco portfolio in any environment.

“Welltec began installing WAB metal expandable packers for Saudi Aramco in 2014 as part of a technology trial, and the award of a LFC demonstrates how far we’ve progressed since then,” said Kevin Wood, Well Completions Sales Director for Welltec Middle East.

Wood added, “Confirmation of this award represents a major step in our partnership with Saudi Aramco which also enables us to continue along the path of exemplary service quality in the execution of completions. With more products being qualified through Saudi Aramco this year, and the addition of an in-country Welltec manufacturing facility, it’s greatly appreciated that Welltec have been recognised through this award.”

More to come?

The approval procedure for this agreement has been extensive and thorough, and such a high standard of qualification brings with it the benefit of an expedited process for the establishment of future agreements between the two companies.

Hani Sagr, Area Vice President for Welltec Middle East, explained, “The LFC is the highest level of contract in the Saudi Aramco procurement processes. It provides the best possible foundation for the provision of our technology and services to Saudi Aramco, enabling us to continue growing our partnership as well as our overall presence in the region.”

“The qualification process included a number of site visits, inspections and audits, with full and detailed reports covering the entire Welltec organisation with particular focus on our manufacturing process,” added Sagr, who also noted that it was in December 2018 when proceedings began in earnest.

“This is not only an excellent recognition of the great teamwork between Welltec and Aramco, it also highlights our commitment to the IKTVA programme geared towards in-Kingdom value creation,” Sagr concluded.

The combination of this award and the continued expansion of in-house manufacturing at local level serves as an excellent platform for the future and continued growth in neighbouring countries. The agreement also comes in a strong period for Welltec which has seen an admirable financial period in the face of Covid-19, the penning of deals with companies such as Petronas, and a change of executive who has promised to expand the company’s business potential to new heights. To read more on Welltec’s progress, click here.

Aquaterra Energy, a leader in global offshore engineering solutions, has secured a five-year deal with a major Middle Eastern operator to provide green and brownfield riser analysis so that, combined with other recent project wins in the Middle East, the company will now deliver an estimated UK£1mn of riser analysis work over the five-year period.

Acting as a primary riser analysis supplier, Aquaterra Energy will manage and deliver multiple scopes of long-term work using its in-house analysis teams. Located in Abu Dhabi and Qatar, the contracts incorporate a wide range of recurring brownfield riser analysis projects, with future greenfield opportunities. The brownfield platform modification projects include slot recovery, slot addition and assisting development of inspection programme of existing conductors.

Coping with ageing infrastructure

Martin Harrop, Riser Analysis Manager at Aquaterra Energy, commented, "With the region shifting its focus to ageing infrastructure, there is a growing appetite for experienced riser analysts amongst operators. As the operations are often non-standard, we have been working closely with our client's engineers to find solutions to challenging operational concerns. Our analysis has generated many cost-saving, operational and decarbonisation benefits for our clients in the region.”

Andrew McDowell, Operations Director at Aquaterra Energy, added, “The Middle East is embarking on its next stage as an oil and gas producing region. Operators are now continuing to invest in new projects but also finding themselves with a glut of legacy assets coming to end-of-life from earlier generations of investment. To safely and efficiently maximise output, our expert riser analysts are perfectly placed to support operators with both green and brownfield projects. With a long-term contract in place, I see this as the start of a major period of growth for us in the region.”

Al Gihaz Contracting, part of Al Gihaz Holding, has announced its acquisition of assets, intellectual property and the management systems of Enshore Subsea, a UK-based subsea trenching company, providing seabed intervention services to major projects across industries around the world.

The acquisition will see the creation of a new joint venture with the aim of forming a leading seabed intervention and construction management services provider. The joint venture will rely on the acquired specialised assets of the company, the skilled team and the company’s successful track record of completed projects to aid the Kingdom of Saudi Arabia’s drive to generate 58.7GW of clean energy by 2030 as part of the Saudi Vision 2030.

Sami Alangari, Group Vice Chairman of Al Gihaz Holding commented, “With this acquisition, Enshore Subsea will benefit from the technical and financial expertise of Al Gihaz Contracting, which for many years has been a leading power and manufacturing services provider locally and internationally. We will be able to provide competitive, resilient and diverse services to cover projects globally, and in the Kingdom of Saudi Arabia. This investment is in line with the Vision 2030 of the Kingdom and will pave the way for a strong involvement of the Group in this field.”

Enshore Subsea

Enshore Subsea will be based out of the existing operational facility in the port of Blyth in the UK, which is supported by a skills base that facilitates the supply of services into the global offshore seabed intervention market. Services will include subsea engineering and construction management, skilled manpower supply and equipment rental for subsea trenching, seabed intervention, development of seabed tooling technology and submarine flexible product installation. The expertise of the existing management and operational teams from Enshore Subsea will remain with the joint venture.

Pierre Boyde, Managing Director of Enshore Subsea, said, “I am delighted that through this cooperation with Al Gihaz, we are able to take the company forward with a sustainable cost base, renewed energy and focus on our areas of expertise. We aim to be the Contractor’s contractor of choice, supporting seabed intervention projects worldwide.”

International trade has been severely impacted over the last week after the Ever Given container vessel ran aground amid high winds and a standstorm in the Suez Canal, effectively shutting off the important maritime route, but now service has resumed as the vessel has finally been pulled free.

It is estimated that around 12% of total globe trade passes through the Suez Canal each year, and the effective sealing off of the channel has caused widespread disruption which has left few industries unaffected: it has been suggested that around US$9.6bn worth of goods has been held up each day. For the oil and gas sector, it was another setback after a challenging period which has seen hydrocarbon prices plummet over the last year. Although oil is still set for a fourth quarterly gain, the disruption in the Suez Canal provoked a dip in prices with West Texas Intermediate falling as much as 2.5% and Brent also falling.

Unwedging the Ever Given was no easy feat. With the vessel measuring nearly 400m and weighing almost 220,000 tons it was not a case of a simple manoeuvring operations once it became stuck. After nearly a week of continued efforts, in the early hours of Monday 29 March, thanks to the efforts of Egyptian and international salvage teams, the stern was finally freed. However, as was warned at the time, there was still much to do as the bow was still stuck rock-solid.

However, after achieving refloating once the tide had risen, efforts were redoubled and the Ever Given was fully dislodged on Monday afternoon (GMT). With the ship free to continue on its journey, traffic can finally flow once again after six days of holding, although it will take some time to clear the backlog of, according to Leth Agencies, more than 360 ships awaiting passage (some estimates suggest this could take up to 4-5 days). However the worst has been overcome, and the relentless efforts of the salvage crews and onshore workers to free the ship has surely saved several more days of disrupted maritime trade.

Saipem, a leading company in the engineering, drilling and construction of major projects in the energy and infrastructure sectors, has been awarded a contract from Qatargas worth more than US$1bn related to the North Field Production Sustainability Pipelines Project located offshore and onshore the Qatar peninsula.

The contract (EPCL package) entails the engineering, procurement, construction, and installation (EPCI) of offshore export trunklines and related onshore tie-in works and is part of the development of the North Field production plateau, which also includes the EPCI of offshore facilities (“EPCO” package) previously awarded to Saipem in February.

The scope of work for this award (EPCL package) includes three export trunklines starting from their respective offshore platforms to the Qatargas North and South Plants in Ras Laffan Industrial City for a total length of almost 300 km, as well as associated onshore tie-in works and brownfield activities on existing onshore and offshore facilities. Pipelaying operations will be executed by the DE HE and Saipem Endeavour vessels.

Stefano Porcari, Saipem E&C Offshore Division COO, commented, “This additional contract awarded by our key client Qatargas strengthens our consolidated relationship and represents a further proof of the trust in Saipem’s ability to deliver challenging projects and is a sign of success of our positioning strategy in Qatar. We are very proud to increase our contribution to such a strategic development for the country.”

Double haul for Saipem

This agreement is an expansion of the US$1.7bn contract awarded by Qatargas to Saipem for the EPCI of various offshore facilities for the extraction and transportation of natural gas, including platforms supporting and connecting structures, subsea cables and anticorrosion internally cladded pipelines. The agreement also included the decommissioning of a pipeline and other significant modifications to existing offshore facilities.

Saipem will enhance the overall project execution, comprising both EPCO and EPCL scope of work, by combining relevant planned schedules and project management. Once completed the project aims at increasing the early gas field production capacity to 110mn tonnes per annum. Saipem will start activities immediately and project completion is expected by mid-2024.

Downhole technology developer and manufacturer Omega Well Intervention and well intervention company Wellpro Group, have announced a strategic alliance to deliver downhole tools to the Middle East and North African (MENA) market.

As per the agreement, Wellpro Group will manage the deployment of Omega Well Intervention products through their extensive network across the region, a move which will go alongside significant investment in all MENA facilities. Omega Well Intervention will provide access to an engineering design team as well as manufacturing capabilities and test facilities for product development.

Jim Thomson, CEO of Wellpro Group commented, “This agreement, which covers the Middle East and North Africa, gives us the opportunity to deliver a more complete well intervention package to the region. In these challenging times, our clients are increasingly looking for ways to reduce costs and make operational efficiencies. Through this alliance we are now able to offer them a wider range of products from a single source.”

Brian Garden, Managing Director of Omega Well Intervention, added, “As part of Omega growth strategy, collaboration with Wellpro Group within the Middle East enhances the ability of both companies to offer a more comprehensive product range within the well intervention business space. This collaboration will ensure that we deliver quality products alongside first-class service.”

This agreement comes as part of Wellpro Group’s clear intentions to strengthen their presence in the Middle East region, quickly following the company announcement (in December 2020) that it was entering the Saudi Arabian oil and gas market with the energy services company i-Energy involving complete operational asset and field support.

For Omega Well Intervention it is another step in a successful spell which has recently seen the award of two accreditations by the American Petroleum Institute for its retrievable bridge plugs and quality management system adding to the twenty five patents across their range of downhole tools that the company already boasts.

The Egyptian Ministry of Petroleum and Schlumberger have announced the launch of the Egypt Upstream Gateway, an innovative national project for the digitalisation of subsurface information and enable global access to the country's subsurface data. This unique digital initiative will be used to unlock the potential of Egypt's petroleum sector and promote the country for international investment in exploration and production projects.

“Egypt is in the process of launching the Egypt Upstream Gateway, a digital subsurface platform that will act as an up-to-date repository of the country’s subsurface data,” commented H.E. Tarek El-Molla, Minister of Petroleum and Mineral Resources for Egypt. “The Egypt Upstream Gateway will digitally promote Egypt’s oil and gas bid rounds through seamless online access to the sector’s data, as well as endorsing our exploration potential worldwide, it is a defining milestone in the country’s oil and gas digital transformation.”

The Egypt Upstream Gateway provides digital access to over 100 years' worth of accumulated national onshore and offshore seismic, non-seismic, well-log, production, and additional subsurface data under a single platform. This data, which empowers de-risked decisions through the ability to explore multiple basins and evergreen data, can be accessed virtually from anywhere using the platform’s online portal. In addition, the Egypt Upstream Gateway will host Egypt's upcoming bid round highlighting lease availability information to national and international investors.

Rajeev Sonthalia, President of Digital & Integration at Schlumberger, said, "The Egypt Upstream Gateway is the embodiment of the Egyptian Ministry of Petroleum's vision, leveraging digitisation to modernise the country's petroleum sector. With the launch of this industry-first platform, the Egyptian Ministry of Petroleum and its affiliates—EGPC, EGAS, GANOPE—can digitally showcase national assets to investors worldwide, in addition to leveraging the latest digital technology and solutions to accelerate discovery throughout the country."

Digitalisation has become a key issue for the offshore oil and gas industry (and indeed the entire energy sector). The importance of getting a firm grip on data and having the capacity to effectively use this is paramount and can lead to tangible benefits in areas such as production efficiency and lifetime of assets. This is clearly understood by the Egyptian Ministry of Petroleum with this announcement that marks a real sign of intent to get ahead of the curve. It is also noteworthy that the data will be opened up for international consideration with discussions on data sharing and partnerships around this intensifying in recent months.