North America

• Region: All
• Topics: Geothermal
• Date: Oct, 2023

Seequent, a Bentley Subsurface company, has agreed to acquire Flow State Solutions, a leader in geothermal simulation software, in a bid to cement its position as a comprehensive subsurface provider for the geothermal sector.

Graham Grant, CEO, Seequent, remarked, “Geothermal has the potential to help solve the world’s biggest energy challenges. With this acquisition, Seequent’s best-in-class subsurface analysis software enables a full understanding of geothermal asset performance.”

The geothermal reservoir, wellbore and surface network simulation software of Flow State Solutions helps customers better understand geothermal resources for development and optimisation. As per the agreement, the company’s Volsung portfolio will be combined with Seequent’s capabilities to create a robust end-to-end solution for reservoir analysis. Detailed models of the subsurface built in Leapfrog Energy can be utilised in Flow State Solutions’ simulation environment to build a full picture of a geothermal asset.

Flow State Solutions co-founder, Jonathon Clearwater, who will join Seequent as Technical Domain Expert, Reservoir Engineering, commented, “We are excited to join Seequent’s energy team. By combining Seequent’s expertise and our technical capability in geothermal modeling, we are looking forward to making a significant contribution to the renewable energy transition through improved management of natural resources.”

Simon Webbison, Vice President, Exploration and Resource Management, Ormat Technologies, said, “Ormat Technologies is one of the largest and most active geothermal companies globally, and we are delighted to see the combination of Seequent and Flow State Solutions software capabilities through this acquisition. We already use both companies’ software to better understand our geothermal assets and predict performance, and we are looking forward to working with the joint team to continue driving our success.”

• Region: Gulf of Mexico
• Topics: Geothermal
• Date: Sept, 2023

Fervo Energy, a leader in geothermal technology, has marked the start of exploration drilling at its Cape Station, US, with a groundbreaking ceremony.

The next-generation geothermal energy project is expected to deliver 400MW of 24/7 electricity after it reaches full scale production in 2028.

Principal Deputy Assistant Secretary for Land and Minerals Management, Laura Daniel Davis, commented, “At the Interior Department, we have been moving quickly to meet President Biden’s goal of achieving a carbon pollution-free power sector by 2035. The Cape Station geothermal energy project we are celebrating today is an important milestone in our effort to make that goal a reality.”

The project will likely be the first of many designed to exploit the vast geothermal potential Utah is home to. It is estimated that just the southwest portion of the state contains more than 10GW of high-quality geothermal reserves.

Utah Governor, Spencer Cox, remarked, “Geothermal innovations like those pioneered by Fervo will play a critical role in extending Utah’s energy leadership for generations to come.”

• Region: Gulf of Mexico
• Date: Sept, 2023

The developer of ocean robots for autonomous services, Nauticus Robotics, Inc., has announced its entry into a service contract with Shell plc for inspection services on a Shell subsea field development in the Gulf of Mexico.

Aquanaut, Nauticus’ flagship autonomous robot, will serve as the project’s main machine and perform noncontact and contact inspections across the subsea complex. This project will feature Nauticus’ first-to-market method of autonomous subsea manipulation on live subsea assets in water depths exceeding 1,000 m.

The project will also feature a ‘force multiplier’ solution, boasting multiple scopes of work to be executed simultaneously from a smaller class service vessel that would not normally engage in IMR services. This agreement will see both Nautiucs and Shell take a major step in maturing a novel joint approach to underwater operations that could lead to a significant change in technology and service delivery for the offshore sector.

Nicolaus Radford, CEO of Nauticus, said, “I am incredibly pleased with the progress the team has made in our collaboration with Shell and to embark on this new project with one of the world’s leading energy companies. Nauticus now has visibility long term IMR services work for Shell and the opportunity to become the preferred supplier for this advanced work.

“We recognise the significance of this opportunity with Shell and look forward to the execution of this project work.”

• Region: Gulf of Mexico
• Date: Aug, 2023

The global offshore well intervention market is set for a period of extended growth in light of stable oil prices forecast in the short-term, maintained oil demand in the medium- and possibly long-term, and ever-increasing environmental pressures.

Globally, spending on well intervention is on the rise with Rystad Energy predicting an increase by almost 20% in 2023 to take the total tally to US$58bn. This is just the start of a forthcoming surge with 17% of wells predicted to go through the intervention process by 2027.

North America accounts for 64% of the total wells ready for intervention by 2027, according to Rystad, giving rise to the dramatic potential of the market in the Gulf of Mexico. According to BSEE, there are approximately 1,885 active production platforms on the OCS with more than 60% older than 25 years.

This is leaving operators grappling with the need to maintain production rates while also dealing with ever-ageing infrastructure, with mounting regulatory pressure increasing the need to address decommissioning obligations. In facing this conundrum, an increasing amount of well intervention activity is highlighting the importance of this service as a means to address both sides.

As new technological innovations become more viable and the understanding around methods such as light well intervention build, the market will only advance in stature, suggesting it will finally meet the potential it has promised for so long, creating a tantalising future for the crowd of service and equipment providers offering their assistance.

• Region: North America
• Topics: Geothermal
• Date: July, 2023

Fervo Energy, one of the leaders in next-generation geothermal technology, has announced the successful completion of its well test at its full-scale commercial pilot project, Project Red, in Nevada.

The successful test confirmed the commercial viability of Fervo’s drilling technology and further established Project Red as one of the most productive enhanced geothermal systems (ESG) to date. The 30-day well test achieved a flow rate of 63 litres per second at high temperature, which enabled 3.5MW of electric production, setting new records for both flow and power output from an EGS.

Fervo is the first company to successfully drill a horizontal well pair for commercial geothermal production, achieving lateral lengths of 3,250 ft, and reaching temperatures of 191°C. Data collected through the course of this pilot prohject will enable rapid advancement in geothermal deployment, with Fervo’s next horizontal well pair planned to achieve more than double the power output of the pilot design.

Tim Latimer, Fervo Energy CEO and Co-Founder, said, “By applying drilling technology from the oil and gas industry, we have proven that we can produce 24/7 carbon-free energy resources in new geographies across the world. The incredible results we share today are the product of many years of dedicated work and commitment from Fervo employees and industry partners, especially Google.”

Fervo and Google signed the world’s first corporate agreement in 2021 to develop next-generation geothermal power. The end goal for the partnership is to power Google’s Cloud region in Las Vegas with an ‘always-on’, carbon-free resource that will reduce the company’s hourly reliance on fossil fuels.

Results from Project Red indicate that geothermal energy could supply more than 20% of US power needs and compliment wind and solar in order to reach a fully decarbonised grid.  

• Region: Gulf of Mexico
• Date: July, 2023

Trendsetter Engineering, a provider of specialised subsea hardware and offshore service solutions from exploration drilling through to abandonment, has announced the recent completion of two deepwater well stimulation campaigns for major operators in the Gulf of Mexico.

The two campaigns resulted in the successful acid treatments of a combined six wells. The campaigns arrived on the heels of a contract agreement to deliver hydraulic intervention and technical services via the Subsea Tree Injection Manifold (STIM) for a Hydrate Remediation and Flowline Flush Project in the Gulf of Mexico.

The Trendsetter STIM offers a 15,000psi rated subsea safety system designed to provide hydraulic well access for both vertical and horizontal tree types. In addition to hydraulic well stimulation, the STIM unit has been used and is capable of supporting various other hydraulic intervention operations including hydrate remediation, bull heading of kill weight fluid and cement as well flowline flushing and testing operations for both pre and decommissioning.

• Region: Gulf of Mexico
• Date: July, 2023

Valaris has secured new contracts and contract extensions to leave its associated contract backlog at approximately US$150mn.

The new scope includes:

• A two-well contract with Anadarko Petroleum Corporation in the U.S. Gulf of Mexico for semisubmersible VALARIS DPS-5. The contract is expected to commence in July 2023 and has a minimum duration of 60 days.

• A nine-well contract for a plug and abandonment campaign with Apache in the U.S. Gulf of Mexico for semisubmersible VALARIS DPS-5. The contract is expected to commence in September 2023 and has a minimum duration of 110 days.

• A minimum duration 180-day contract with an undisclosed operator offshore Australia for heavy duty modern jackup VALARIS 107. The contract is expected to commence in first quarter 2024.

• A one-year contract with an undisclosed operator offshore Australia for heavy duty modern jackup VALARIS 107. The contract is expected to commence in October 2024.

• A two-well contract with a major Australian operator for heavy duty ultra-harsh environment jackup VALARIS 247. The contract is expected to commence in early to mid-2024 and has an estimated duration of 100 days.

• Region: Gulf of Mexico
• Date: July, 2023

Expro has secured a contract with a major operator for the first deployment of its unique single shear and seal high-debris 15K ball valve assembly.

The multi-functional single shear and seal mechanism will form part of a full subsea deepwater completion/intervention system being designed by Expro for a long-standing and valued customer for a deepwater subsea field at about 6,600 ft in the Gulf of Mexico.

The mechanism is designed to answer the customer’s requirement for a versatile, single-valve subsea solution rather than the conventional double-valve system while offering the reassurance of risk reduction through an additional safety barrier.

Graham Cheyne, Expro’s Vice President of Subsea Well Access, commented, “We are proud to offer our innovative shear and seal solution to meet the needs of this important customer in the Gulf of Mexico. Our cutting-edge technology propels the industry’s momentum towards increased automation, improving safety on the rig floor by minimising personnel and mitigating human error, while providing an additional safety barrier. It offers operators with flexibility for their operations in both in-riser and open water subsea applications.”

Expro’s high-debris single ball system, which delivers shear and post shear seal on a multitude of sizes of coiled tubing, slickline, and electrical cable, is a solution for both gas and liquid. Its versatility makes it suitable for deployment in both in-riser or open water environments.

It is NACE MR0175 compliant and qualified for sour hydrogen sulfide environments. Bi-directional sealing is available even after a pump-through. The mechanism has been qualified to API 17G standard for the performance and design of subsea well intervention equipment. Its ability to handle up to 15% debris is a significant improvement over alternative mechanisms used in this environment today.

Expro’s shear and seal valve is available in the ELSA-HP 15ksi enhanced landing string assembly. It can be configured as a single valve, a single valve with a latch mechanism, or as a conventional subsea test tree arrangement, enabling flexibility. Expro is currently integrating the shear and seal ball system into its ELSA-HD 10ksi equipment and open water offerings.

• Region: Gulf of Mexico
• Topics: Decommissioning
• Date: July, 2023

The Bureau of Ocean Energy Management (BOEM) has proposed changes to modernise financial assurance requirements for the offshore oil and gas industry, in order to better protect American taxpayers from incurring the costs associated with the oil and gas industry’s responsibility to decommission offshore wells and infrastructure.

BOEM Director, Liz Klein, commented, “These proposed updates to our financial assurance regulations will help ensure that energy companies that are operating in publicly-owned federal waters are able to fulfill their clean-up and decommissioning responsibilities, without taxpayers having to step in to foot the bill. The commonsense updates that we are proposing would modernise evaluation and financial criteria so that we are better protecting taxpayers from the decommissioning costs associated with aging oil and gas infrastructure on the Outer Continental Shelf.”

Together with reforms to royalty rates, rental rates, onshore bonding requirements, and leasing practices, the changes being announced today continue to advance the Biden-Harris Administration’s federal oil and gas reform agenda, which was outlined in a report that the Department of the Interior developed in response to Executive Order 14008.

The proposed rule would establish two metrics by which BOEM would assess the risk any company poses for the American taxpayer.

To accurately and consistently predict financial distress, BOEM would use credit ratings from a nationally recognized statistical rating organisation, or a proxy credit rating generated through a statistical model. BOEM would require companies without an investment-grade credit rating to provide additional financial assurance. BOEM is seeking public feedback on whether it should rely on credit ratings to make these determinations and what credit rating threshold would best protect taxpayer interests without imposing undue burdens on industry.

Second, BOEM would consider the current value of the proved oil and gas resources on the lease itself when determining the overall financial risk of decommissioning, given that any lease with significant reserves still available would likely be acquired by another operator that would then assume the liabilities in the event of bankruptcy.

The proposed regulatory changes would provide additional clarity and reinforce that current grant holders and lessees bear the cost of ensuring compliance with lease obligations, rather than relying on prior owners to cover those costs.

BOEM would use decommissioning estimates based on industry reported data collected by the Bureau of Safety and Environmental Enforcement (BSEE) at a level that would adequately cover estimated decommissioning costs without being overly burdensome. This proposed rule would allow current lessees and grant holders to request phased-in payments over three years for new financial assurance amounts.

The proposed changes were published in the Federal Register on 29 June, which will open a 60-day public comment period.

• Region: Gulf of Mexico
• Topics: Decommissioning
• Date: June, 2023

The Bureau of Safety and Environmental Enforcement (BSEE) Director, Kevin Sligh, has announced a US$3mn investment from the Bipartisan Infrastructure Law to help reduce the risk of pollution from orphaned infrastructure on the federal Outer Continental Shelf.

The funding will specifically support BSEE decommissioning service contracts in the Matagorda Island lease area in the Gulf of Mexico. The funds are part of a nearly US$64mn commitment from President Biden’s Investing in America agenda to address orphaned oil and gas wells on public lands.

“The funding announced today under the President’s Bipartisan Infrastructure Law is critical for helping BSEE leverage available funds to tackle the backlog of decommissioning orphaned infrastructure offshore in the Gulf of Mexico,” commented Sligh. “If not properly decommissioned, offshore oil and gas infrastructure can become safety hazards, cause environmental harm, or interfere with navigation, fishing, or other uses of the Outer Continental Shelf.”

BSEE plans to award contracts to address nine orphan wells and associated pipelines and platforms in the Matagorda Island lease area, approximately 12 miles off the Texas coast. The initial contract will address the most immediate and urgent needs to reduce the risk of safety incidents and pollution in preparation for well-plugging operations.

An important part of BSEE’s responsibilities is to ensure that infrastructure used in exploration, development, and production activities undertaken according to the Outer Continental Shelf Lands Act is properly decommissioned to provide the long-term protection of the resource and the surrounding environment.

• Region: Gulf of Mexico
• Topics: Decommissioning
• Date: June, 2023

Petrofac, a leading provider of services to the global energy industry, has added a third Gulf of Mexico field, and extended the scope of its existing contract to decommission two fields, in the Gulf of Mexico.

Following this contract expansion, the legacy offshore fields and assets now include 12 platforms, 211 wells and 32 pipeline segments, as well as operations and logistics services. The scope includes the safe, efficient, and assured decommissioning of the fields and operation of the fields during the execution of the decommissioning work.

Petrofac will use its proven decommissioning programme management systems, tools, and processes to deliver the project. Its integrated local team, wider global decommissioning organisation and supply chain partners, have collectively plugged and abandoned more than 2,300 wells and decommissioned over 250 facilities.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, remarked, “This sizable contract expansion recognises our industry-leading decommissioning programme management experience and our differentiated in-house capability to manage all well and asset decommissioning phases.

“Through this and other decommissioning projects, Petrofac is actively and sustainably contributing to the energy transition globally.”

• Region: Gulf of Mexico
• Topics: Decommissioning
• Date: Jun, 2023

Helix Alliance, the Louisiana-based subsidiary of Helix Energy Solutions Group, has been awarded a 39-well decommissioning contract for the Gulf of Mexico shelf.

Owen Kratz, Helix’s President and Chief Executive Office, said, “This award demonstrates Helix’s position as the preeminent company for full-field decommissioning in the Gulf of Mexico shelf, along with our other services supporting the full life cycle of offshore fields, following the expansion of our industry-leading decommissioning services with our acquisition of Alliance last year.”

The scope of work includes the plug and abandonment of 39 wells, 15 pipelines and seven structures. Helix Alliance plans to utilise the EPIC Hedron heavy lift derrick barge for structure removals, lifeboats for P&A activities, the Triton Explorer dive support vessel for pipeline abandonments and multiple Helix Alliance OSVs throughout the campaign.