Helix Energy Solutions Group has announced new three-year vessel charter and service contracts with Petrobras for the riser-based well intervention vessels Siem Helix 1 and Siem Helix 2 working offshore Brazil.
Finalised following a competitive tender process, the new three-year contracts are valued in aggregate at an estimated US$786mn, in accordance with Petrobras’ estimated value.
The Siem Helix 2, since 2017, has been performing riser-based well intervention activities for Petrobras in the Santos and Campos Basins, and to date has completed more than 100 well interventions.
The Siem Helix 1 previously worked for Petrobras from April 2017 – July 2021 completing 74 well interventions in the Santos and Campos Basins.
Daniel Stuart, Helix’s Vice President-Commercial, said, “We have built a long and productive working relationship with Petrobras for the last seven years. During this time, we have consistently delivered safe and cost-effective well intervention services to the Brazilian market. These new three-year contracts underscore Helix's commitment to innovation, tailored solutions, and leveraging our extensive global well intervention expertise. These contracts reaffirm our Energy Transition business model, empowering clients to optimise production from their existing assets.”
The Siem Helix 1 and Siem Helix 2 are purpose-built, advanced well intervention vessels capable of performing a wide range of subsea services including production enhancement, well decommissioning, subsea installation, offshore crane and Remotely Operated Vehicle operations, offshore construction, and emergency response.
SLB has launched a well integrity assessment solution for carbon storage developers to quantify the risks associated with wells at prospective storage sites with previous drilling activity.
Since carbon capture, utilisation and storage (CCUS) provides one of the most immediate opportunities for reducing emissions, establishing secure storage sites is essential to enable the growth of a low carbon energy ecosystem. SLB’s new methodology for quantifying the probability and potential impact of carbon leakage helps customers understand the risks associated with each well, informing remediation strategies and ultimately estimating the project's long-term viability.
“The significance of the risks associated with each well and the costs of remediation to mitigate leakage risks can make a project economically unfeasible,” said Frederik Majkut, Senior Vice President of Industrial Decarbonisation, SLB. “By addressing potential well integrity issues early in the development process, SLB’s well integrity assessment solution can help storage developers avoid costly delays or operational disruptions, and drive companies toward their net zero ambitions.”
There are several prospective carbon storage sites that can be found in either mature or retired oil and gas fields. Having a large number of wells at a site can increase the risk of potential leakage pathways for the stored carbon.
The new tool by SLB incorporates advanced failure mode effect and criticality analysis (FMECA) to assess potential leakage pathways, well barrier, failure mechanisms and resulting consequences. Using advanced multi-physics 3D modeling, SLB can assess the volume and flow rates of brine and carbon leakage over time to better estimate risk.
Thunder Cranes, a leading provider of portable, modular, offshore rental cranes with a lift capacity ranging from 2 to 0 tons, has published a case study outlining a successful decommissioning project it helped facilitate in the Gulf of Thailand.
The company was originally engaged by Chevron Thailand to assist in the removal of modules from the topside of a production platform located in the Gulf. This was scheduled prior to the removal of the entire well-head platform by a heavy barge crane. Removing the modules would sufficiently reduce the overall platform weight to within the capacity of the intended barge crane.
The objective of the client was a reverse-installation and backloading of various modules to supply vessel for disposal or recycling and the existing platform crane capacity and reach radius was not sufficient for the project.
Located on the top deck there were 14 large components weighing between 10 to 40 tons, as well as a number smaller components of various weights below 10 tons.
Thunder Cranes proposed the TC90 modular rental crane which has a maximum capacity of 50MT for offboard lifts and this was accepted as the best solution from the viewpoint of ensuring safe, static lifting. Cost and time savings were also to be expected.
According to Thunder Cranes, there were a number of unique challenges that had to be incorporated into the detailed planning of the decommissioning operation. This included the limited space on the platform for rigging up as well as no exposed beams on which the company could apply the TC90 clamping system. To meet this, welding with dog plates was required to tie down the modular crane and this was implemented safely and without issues. In addition, due to limited space on the platform deck, the supply vessel was on standby within reach of the platform crane, allowing the rig up and rig down of the TC90 crane on the fly.
Another hurdle was that some of the larger modules at the limit of the TC90 reach radius did not have verified weight information. As a result, a decision had to be made on whether to reposition the crane for those lifts or whether to disassemble and breakdown down those modules into smaller components. Upon further study it was concluded that the best way forward was to breakdown some of the modules. In addition, Thunder Cranes deployed its most experienced lifting superintendent on site to supervise the most critical lifts.
In order to ensure all the challenges were sufficiently dealt with and the company was able to carry out the project effectively, rigorous planning and assessments were undertaken and actioned. Thunder Cranes’ process for this starts with a thorough assessment of the client’s lifting requirements, platform drawings, general specifications, and project timelines. A site visit is then conducted to verify that an appropriate and practical solution can be proposed.
Its proposal and quotation come with a Site Visit Report to clearly communicate the proposed method with drawings and photos.
After the proposal is given the green light, Thunder Cranes begin the detailed planning stage where it collaborated with the client to customizs elements of the project in terms of materials, equipment, third party services, utilities, scaffolding, etc. Customisation can include any platform modifications if needed, or any re-positioning, or removal of elements from the main deck of the platform.
The company’s modular crane configuration is customised to meet specific needs with regards to the tied down method, boom reach radius, zone rating, or any other safety or environmental considerations.
The next step included engineering work pack submission to the client addressing the specific scope of work and lifting requirements, featuring detailed considerations from the site visit, with comprehensive rig up and lifting plans, customised layout and positioning drawings, as well as reaction force calculations needed to conduct a structural analysis.
Pre-mobilisation planning included risk assessment/hazard identification, and alignment sessions were conducted for offshore personnel to ensure safe and efficient operation of the modular cranes.
For other projects, dependent on location, the preparation and deployment of the modular cranes and auxiliary equipment might begin months ahead to ensure cranes are at the load out port and ready to be transported to the offshore site and assembled according to the pre-planned schedule and project configuration.
According to Thunder Cranes, the project objectives were met successfully to the client’s satisfccation and within schedule. There were no incidents or hinderances recorded during the project which followed a timeline of:
• Load out from port and sailing to platform via supply boat.
• Platform crane lifts TC Modular Crane components to platform for rig up.
• Welding base beam and complete rig up of TC90.
• Inspection and load testing TC90.
• Commence lifting operations.
• Stop operation during heavy monsoon weather.
• Resume lifting operations.
• Rig down TC90 and demob.
By removing the production modules, the overall platform weight was reduced to be within the capacity of the heavy lift vessel which was able to remove the topside and structure in one lift. This marked another successful project carried out by Thunder Cranes.
Oilenco Ltd, a leading provider of specialised well intervention solutions and services, has announced a series of promotions and new roles to its top team as it seeks to expand its global reach and begin the next phase of its journey.
One of the primary changes to the company’s structure will be the appointment of Blair McCombie to the position of Managing Director. Having joined the company as an operations director in 2017, McCombie has been instrumental to the growth of the organisation, its increase in revenue year-on-year, and the almost doubling of its workforce in the last two years. Now, McCombie is tasked with leading the company onto new horizons, and will oversee its overall performance and future direction.
In undertaking this sizeable task, Oilenco has ensured McCombie is well supported with a number of further key appointments. This includes the promotion of Davie Nicoll to the role of Buiness Director for Africa; the introduction of Graham Masson as Business Director for UK and Europe earlier this year; and the transition of Warren Ackroyd, Owner and previous Managing Director of the company, to the new job of Technical Director. Kim Ackroyd will continue her role as Finance Director, completing a formidable, experienced lineup that will focus on implementing strategies for regional growth and create a strategic focus on driving innovation.
“As well as expanding our global reach, one major component of growth is investment in developing our product portfolio through enhancing our existing products as well as new product development,” remarked Blair. “With Warren’s invaluable expertise and a dedicated team under his direction, we are able to listen to our clients, creating solutions that meet their needs, as well as the needs of the global well intervention and P&A industry.
"The knowledge, experience, and creativity of the Oilenco team is what sets us apart and allows us to provide reliable, high-quality solutions and services. Since starting with the company, I have seen a shift to a more service-led environment, where clients rely on a variety of services including design, manufacture, redress, refurbishment, product rental and training, all within Oilenco’s capabilities and areas we will continue to develop. As we celebrate 15 years this year and we kick-start our next chapter, I am delighted to become managing director, leading the company in the next phase of its journey.”
Geothermal baseload and energy storage company, Sage Geosystems Inc, announced Christine, Texas, as the location for a 3MW Geopressured Geothermal System (GGS) energy storage facility after entering into a land use agreement with San Miguel Electric Cooperative Inc.
Set to be established later in the year, near the SMECI lignite coal power plant, the EarthStore facility will utilise the earth's natural capacity for energy storage to produce clean, sustainable, and dispatchable electricity on demand. This technology offers a reliable and resilient power source that is independent of weather conditions and not reliant on wind or sunshine.
“Once operational, our EarthStore facility in Christine will be the first geothermal energy storage system to store potential energy deep in the earth and supply electrons to a power grid,” said Cindy Taff, CEO of Sage Geosystems. “Geothermal energy storage is a viable solution for long-duration storage and an alternative for short-duration lithium-ion batteries. Electric utilities and co-ops like SMECI, will be able to use our technology to complement wind and solar, and stabilize the grid.”
The facility will use Sage’s proprietary technology to store energy, targeting 6-to-10-hour storage durations and delivering a round-trip efficiency (RTE) of 70-75%. In addition, water losses are targeted to be less than 2%. At scale, this energy storage system will be paired with renewable energy to provide baseload and dispatchable power to the electric grid. When combined with solar power, the facility will enable round-the-clock electricity generation at a blended Levelized Cost of Energy (LCOE) well under US$0.10/kWh.
Craig Courter, CEO, SMECI, said, “Long-duration energy storage is crucial for the ERCOT utility grid, especially with the increasing integration of intermittent wind and solar power generation. We are excited to be part of this innovative project that showcases the potential of geothermal energy storage.”
Sage will operate as a merchant, buying and selling electricity to the ERCOT grid.
Sage will be applying for two drilling permits in Texas. The first permit is in Atascosa County for the EarthStore facility in Christine and the second permit is in Starr County, adjacent to the company’s existing test well.
Archer will be acquiring an additional 10% of the shares in Iceland Drilling from its joint venture partner Kaldbakur for US$2.5mn.
Settled in Archer Limited shares, the transaction will bring Archer’s total ownership to 60%. The transaction is expected to close within the next two months.
Iceland Drilling is an international provider of high-temperature geothermal drilling, with offerings across renewable service segments such as deep drilling for electricity generation, wells for district heating and cooling, and wells for carbon storage. It has close to 200 employees with its main operations currently in Iceland and the Philippines.
Archer's CEO, Dag Skindlo, said, "Geothermal energy is an important part of the future energy mix which has direct overlap and synergies with Archer’s core services. We have a clear ambition to increase our well services participation in the growing geothermal market and we are monitoring opportunities to deploy idle and lower specification land rigs to geothermal projects globally. The market for geothermal drilling and district heating is estimated by industry experts to grow meaningfully over the next few decades, and Iceland Drilling is well positioned to capture market share. We will continue to support growth and development of Iceland Drilling and welcome Kaldbakur as a new long-term investor in Archer.”
The increased ownership means that Iceland Drilling will be consolidated into Archer’s financial accounts. The inclusion is projected to increase Archer’s full year 2024 proforma revenue by approximately 4% and EBITDA by 6-7%. Going forward, the transaction is expected to enhance Archer’s cash generation and reduce Archer’s leverage ratio.
Kent is collaborating with the UK’s Energy Institute to create guidelines for decarbonisation economics in Greenhouse Gas (GHG) emission reduction projects in the upstream oil and gas industries.
This report will provide clear, actionable guidance to help the sector achieve its environmental goals, demystifying the economics of decarbonisation, including the societal cost of carbon. While it will focus on the UK North Sea upstream sector, it will take a global view so that it can serve as a basis for future research across the world. It will involve the collaboration of Kent’s Environmental team, Asset Decarbonisation team, and Energy Environment Economic (E3) Modelling and Communications team.
"We have seen the challenges of presenting decarbonisation projects against standard project economics with the only justification being the reduced OPEX related to Emission Trading Scheme credits and potential increased revenue from an increase in sales gas quantities from reducing fuel and flare gas," said Graham Filsell, Kent’s Decarbonisation lead. "There is a strong case for the societal cost of carbon and potentially an individual asset marginal abatement cost to form part of the project economics for decarbonisation projects."
James Lawson, chair of USEG (Upstream Environmental Group) added, "Decarbonisation and GHG reduction projects are inherently holistic, involving a wide spectrum of energy professionals, many of whom have not previously engaged in economic assessments and project prioritisation. Furthermore, these projects compete for capital and resources with other industry sectors. Therefore, a clear, concise, and targeted document that all energy professionals can refer to will be invaluable for ensuring that capital and resources are allocated appropriately and in line with net zero commitments."
• Demystifying Decarbonisation Economics: Provide clarity for energy professionals with limited exposure to project economics, such as environmental or sustainability managers.
• Understanding Carbon Costs: Offer insights into how carbon costs are calculated and influenced by market forces, including societal costs.
• Alternative Metrics: Recommend non-standard metrics beyond NPV to ensure that decarbonisation goals are met, delivered as a technical note to the industry.
• Justification of Metrics: Articulate and justify the choice of both standard and non-standard metrics used in the guidance.
• Upstream O&G Value Chain: Focus on the upstream sector of the O&G value chain affected by decarbonisation and assess the potential to broaden the scope to the full value chain.
Halliburton has been awarded a contract by Petrobras to provide a range of complete services in integrated well interventions and plug and abandonment for offshore wells in Brazil.
Covering nearly two-thirds of all interventions and plug and abandonment work for Petrobras, the contract holds huge significance for Halliburton as it reinforces the company’s strategic position in the Brazilian market.
Services will include fluids, completion equipment, wireline, slickline, flowback services, and coiled tubing. These will be integrated through Halliburton’s project management service line to ensure efficient and effective execution.
"Our long-standing relationship with Petrobras exemplifies our ability to collaborate and engineer solutions to maximise their asset value. Halliburton’s offshore well intervention capabilities optimise production, extend well life, reduce costs, and access challenging reserves," said Halliburton's Chairman, President and CEO, Jeff Miller, while commenting on the multi-year contract which is set to begin in the second quarter of 2025.
China Petroleum Coporation of Taiwan (CNPC Taiwan) signed a MoU with Academia Sinica and National Central University for a partnership concerning geothermal research, exploration and development technology collaboration.
The MoU comes in response the Taiwanese Government’s energy and transformation policy as well as the desire to actively promote research and development of green energy and carbon reduction technologies across multiple industries.
In recent years, CNPC China has been searching for collaboration teams in order to cooperate with the national energy transformation policy. Academia Sinica is the country’s highest academic research institution, housing the Institute of Geosciences which masters advanced geological, geochemical and geophysical related survey data and analysis technologies. Central University has the School of Geosciences and the Carbon Sequestration and Geothermal Research Center.
The collaborative aim is to promote geothermal research and exploration technology within Taiwan in a bid to be net-zero by 2050.
ASCO, a UK-headquartered logistics and materials management company, has completed a contract with Onslow Marine Support Base (OMSB) in Western Australia in support of the offshore decommissioning sector.
Two radiation safety officers (RSOs) as well naturally occurring radioactive materials (NORM) and mercury monitoring and analysis equipment were mobilised to the OMSB site as per the contract. The RSOs delivered on-site training for NORM awareness, and monitoring for various hazards such as benzene, hydrogen sulphide (H2S) with a particular focus on NORM and mercury.
OMSB Chief Operating Officer, Andre Veder, said, “At OMSB
we believe all parts of the supply chain supporting the offshore decommissioning sector requires a robust focus on safety, efficiency and compliance. As part of this, OMSB proactively holds a range of licences including a radiation licence and associated management plan.
“To drive an effective and compliant outcome for the receival, handling and storage of potentially radioactive items, OMSB selected ASCO as its radiation specialist. ASCO’s international experience with radioactive items has allowed projects undertaken to appropriately manage the risks while not impacting the schedule of the works."
The project was led by senior RSOs John Davidson and Robin Small who helped to optimise the site, ensuring that supervised areas were set up correctly and any contaminated materials were properly managed and contained. The team enhanced OMSB's management plans and risk assessments, ensuring top-tier radiation management and site safety operations.
While ASCO has been present in Australia for more than 13 years, this contract represents the first time it has delivered NORM services in the Southern Hemisphere, demonstrating its capability and establishes its credibility to operate in this segment here. According to ASCO, this will set the groundwork to confidently invest to further deliver large scale projects of this nature in the country and expects continues growth in the region as the decommissioning opportunities in Australia mount.
Lee Vettese, Business Development Manager - Environmental Services and Decommissioning at ASCO, added, “This contract signals significant growth for ASCO in Western Australia. Our work in the North Sea has led the way in global decommissioning activity for a number of years now and we’re excited to bring that experience to Western Australia."
Petrofac will be supporting the Netherlands’ ambitions for CO2 capture and storage as TotalEnergies EP Nederland BV has chosen its services for a multi-million-dollar front-end-engineering design (FEED) for a CO2 injection platform.
The project involves the decommissioning of topsides and installation of a new repurposed platform connecting to the Aramis CO2 distribution network.
Petrofac is already working on a FEED project covering the design of the 32” CO2 trunkline, including onshore, landfall and offshore sections, together with the offshore CO distribution hub platform for the Aramis system, that it took up earlier this year. This additional scope will enhance the company's carbon transport and storage (CCS) sector internationally, influencing its reputation in managing the challenges and opportunities in delivering CO2 capture, transport, and storage at scale.
John Pearson, Chief Operating Officer, Energy Transition Projects, Petrofac, said, “This award demonstrates confidence in our abilities to provide vital engineering and project delivery expertise to projects that span the CCS value chain. This project, associated with the overall Aramis development, is another key component to the Netherlands’ ambitions to capture millions of tonnes of CO2 from industrial emitters in the region. We are immensely proud to be making an important contribution to these ambitions.”
Ahead of the D&A APAC 2024 Conference, set to open its doors in Kuala Lumpur from 12-13 November, Offshore Network has released its Asia Pacific Decommissioning and Abandonment Outlook which reviews the region’s current liabilities and the key players who are undertaking the oncoming decommissioning storm.
The countdown is on for Southeast Asia to stay ahead of what promises to be a prosperous decommissioning market in the decades to come. As many of the region’s upstream assets wave goodbye to their productive years, D&A liabilities continue to tally up meaning the once-distant thought of decommissioning is now firmly at the forefront.
According to Petronas’ Activity Outlook 2021-2023, within Malaysia there are more 3,000 wells in which 45% are idle, with over 500 scheduled to be permanently plugged by 2030. Wood Mackenzie has previously reported that Southeast Asia’s offshore assets, amounting of 2,600 platforms and a staggering 35,000 wells, will eventually need to undergo decommissioning services.
Due to the sheer scope of D&A work in the years ahead, emphasise is being placed on the growing need for knowledge sharing and collaboration throughout the region. With collaboration comes the implementation of innovative technology and more opportunities to reap prosperous results akin to those seen in the North Sea and Gulf of Mexico.
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