isol8, an Aberdeen based oil and gas services firm, has received a UK£3.5mn investment from BGF to support its long-term growth plans and develop its zero-emissions product portfolio as its expands its services into the wellbore construction sector.
It is estimated that successful deployment of isol8’s technology could unlock savings of between UK£1.5mn to UK£7mn for platform and subsea wells abandonments. This could translate to savings of between UK£2bn to UK£5bn in North Sea well decommissioning costs.
isol8 is the only company in the world known to use underwater soldering to create metallurgically bonded alloy barriers to seal off oil and gas wells. The firm designs, develops and deploys its industry leading Fusion Barriers, providing a longer lasting and more environmentally friendly solution to traditional cement-based methods.
The drive to decommission
Andrew Loudon, CEO of isol8, commented, “Decommissioning is now a huge focus in the North Sea and we’re partnering with clients to help them significantly reduce their asset retirement costs.
“Now, with the support of BGF, we are in a strong position to broaden our zero-emission product portfolio and accelerate the production of new products, including our casing annulus packers and tubing packers for well construction.
“The BGF team fully understands and supports our vision, and their expertise and business knowledge will be invaluable as we embark on this next chapter together.”
As part of the transaction, BGF Investor Richard Pugh will join the board of isol8 as an investor director, alongside newly appointed independent director Nigel Avern. Nigel is the former CEO of Peak Well Systems, nurturing the business from a small start-up to an international company with market leading positions in well intervention tooling and bridge plugs. Nigel led the successful trade sale of Peak to Schlumberger. Formerly, Nigel spent 18 years with The Expro Group working in range of marketing, technical and general management roles.
Pugh said, “isol8 has huge potential to use its cutting-edge Fusion technology to generate very large savings in plug and abandonment and intervention operations – both of which are markets where we expect long-term growth and where Aberdeen continues to have world-leading expertise.
“At the same time, by ensuring a gas-tight seal, Fusion provides the industry with a much lower emission solution than cement, going some way to address the long-term challenge of de-carbonising the sector. This funding round will support an exceptional management team in completing the final push to commercial adoption, working in parallel with a number of operators who have shown real commitment to the technology.”