In a major realisation of its production and cost optimisation objectives, the Nigerian National Petroleum Company (NNPC), along with joint venture partner First Exploration & Petroleum Development Company (First E&P), has announced a significant hydrocarbon discovery in the Songhai field, located in OML 85 in the shallow offshore region of Bayelsa.
Spudded as part of efforts to increase and sustain the joint venture's oil production over the next five years, the well was drilled to a total depth of 8,883 feet measured depth (MD) in 30 metres of water. It encountered hydrocarbons across eight reservoirs, logging over 1,000 feet of hydrocarbon-bearing sands, most of which reveals promising reservoir properties. There has been an indication of substantial oil and gas volumes for commercial exploration. The derived well data will now be integrated for thorough research and analysis to calculate resource estimates and optimise field development plans.
"This discovery marks a major milestone in our efforts to unlock the full potential of our assets. The success at Songhai Field underscores the effectiveness of our exploration strategy and our commitment to delivering sustainable value to all stakeholders," said Segun Owolabi, General Manager, Exploration and Development at FIRST E&P.
"This aligns with NNPC Limited’s mandate to drive production growth and cost optimization. The success at Songhai Field reflects our commitment to strategic partnerships, advanced technology, and efficient operations to maximize Nigeria’s hydrocarbon potential sustainably," said Seyi Omotowa, Chief Upstream Investment Officer of NUIMS. "The discovery also highlights the role of strategic collaboration in expanding Nigeria’s hydrocarbon reserves," he added.
"This discovery reaffirms the potential of Nigeria’s offshore assets and the importance of collaboration in boosting reserves and production. NNPC Limited remains committed to driving efficiency and long-term value creation for the nation," said NNPC’s Group Chief Executive Officer, Mallam Mele Kyari.
First oil from the Mero Field in the Santos Basin is expected in the second half of the year with the arrival of SBM Offshore's Alexandre de Gusmao floating production storage and offloading (FPSO) vessel.
This follows the recent arrival of FPSO Almirante Tamandare, which began production on 15 February, as a part of Petrobras fleet.
Alexandre de Gusmao is SBM Offshore's ninth FPSO vessel in Brazilian waters. It boasts a production capacity of 180,000 barrels of oil per day and 12 million cubic meters of gas per day.
SBM Offshore deals with FPSO vessels with production capacities ranging from 150,000 bpod to 250,000 bpod. It can convert oil tankers or very large crude carriers (VLCCs) into FPSOs. It has overall 15 units, deployed mainly in the Latin America region other than in West Africa. Its Fast4Ward offering focuses on risk mitigation and quality enhancement with the help of digital solutions.
"This achievement is a testament to the hard work and dedication of our teams, who have worked tirelessly to bring this project to fruition. The addition of this vessel to our fleet marks a significant milestone in our operations and reinforces our commitment to excellence and innovation in the sector. Welcome to the fleet, FPSO Alexandre de Gusmao," said Bruno Giusti, Brazil Operations Director at SBM Offshore.
Through inspection maintenance and repair, the company has covered services such as the designing, supply, installation, operation and life extension of the FPSO vessels.
To know more about Latin America's offshore well intervention scene, click here.
Liberty Industrial has completed the onshore deconstruction and recycling of the Santos Campbell platform on behalf of McDermott International Ltd.
The project featured the Roll-On-Roll-Off procedure of the oil platform using Self-Propelled Modular Transporters (SPMTs) at the Australian Marine Complex Common User Facility (AMC CUF).
“The decommissioning of the Campbell platform exemplifies Liberty Industrial’s ability to tackle the intricate nature of onshore decommissioning, setting a benchmark for excellence in a rapidly growing industry sector,” said Jed Van Iersel, decommissioning manager at Liberty Industrial.
Van Iersel added that it highlighted the company’s ability “to meet all stakeholder requirements” and to handle complex marine operations.”
Following the offshore removal by McDermott, the Santos Campbell platform arrived at Port Henderson in three unique structures via barge.
These structures were safely transported via SPMTs to the onsite deconstruction yard for disposal and recycling.Liberty Industrial executed the Roll-On-Roll-Off procedures in just five days, following six months of meticulous planning with leading in-house and subcontractor engineers.
The deconstruction posed significant logistical challenges, the company added in a statement.
Each structure, the heaviest weighing over 600 tonnes, required a bespoke handling plan to ensure safe and efficient transfer from the barge to the decommissioning site, addressing various water displacement considerations and tight port schedules.
The remaining onshore deconstruction and recycling programme was completed on budget, on time, and with exceptional stakeholder satisfaction in 57 days, the statement noted.
Located in the Varanus Island hub, the Campbell Platform removal was contracted to McDermott in 2023, who then engaged Liberty Industrial for the task of deconstruction and waste recycling management.
All structures were deconstructed using suitable demolition excavators, with demolition of taller structures achieved by high reach excavators, oxy-cutting from EWP to pre-weaken structures before final induced collapse, the Liberty Industrial statement noted.
The materials from these structures were then downsized and moved to the processing area for segregating and processing using hot oxy-cutting and cold mechanical shearing, achieving a 99.5% recycling rate.
“We are extremely pleased with our ability to manage the complexities of the project by expanding our capabilities to include marine offloading operations and set a new benchmark for onshore decommissioning in Australia,” said Warwyck Smith, Decommissioning Project Manager, Liberty Industrial.
“We look forward to expanding on our already established and growing presence as a subject matter expert in onshore decommissioning in Australia and internationally.”
A federal judge in Louisiana has rejected a bid by three US states to block a rule adopted in 2024 that strengthens the financial assurance requirementsfor offshore oil and gas companies to ensure they meet their decommissioning obligations.
The judge declined to issue a preliminary injunction sought by the Republican-led states of Louisiana, Mississippi and Texas along with the Gulf Energy Alliance, Independent Petroleum Association of America, Louisiana Oil & Gas Association, and U.S. Oil & Gas Association.
The 2024 rule was issued by the U.S. Bureau of Ocean Energy Management (BOEM), which noted that since 2009, more than 30 corporate bankruptcies had occurred involving offshore oil and gas companies that did not have sufficient financial assurance to cover their decommissioning obligations, which had highlighted a weakness in BOEM’s current supplemental financial assurance programme. BOEM noted that the new rule finalises amendments to existing provisions and increases regulatory clarity about financial obligations “to better protect the taxpayer from potentially bearing the cost of facility decommissioning and other financial risks associated with OCS development, such as environmental remediation.” The new rule includes the requirement that companies which cannot provide adequate financial assurance have to put up a surety bond.
The three states and industry groups argued that the rule if enforced would result in "potentially existential consequences" for small and medium-sized companies as they would be unable to obtain such bonds.
The judge said that issuing a preliminary injunction was not warranted on the grounds that the threatened harm is not imminent, given that the new requirements are being phased in over three years, and demands for supplemental financial assurance would not be issued until mid-2025 at the earliest.
"While these harms may be likely, a preliminary injunction can only be issued if the threatened harm is also imminent," the judge said.
However he said he would expedite the case so the court can reach a final decision on the merits before the demand letters are issued and plaintiffs incur any resulting costs.
Watch this space!
A major milestone has been reached regarding the decommissioning of the Northern Endeavour FPSO wherein an extensive well suspension and flushing campaign has been successfully completed.
The campaign started in September 2024, led by Phase 1 contractor Petrofac Facilities Management Limited (Petrofac). Sapura Constructor, the light well intervention vessel, has completed the works in the Laminaria-Corallina oil fields.
The critical work included temporarily suspending seven of the nine oil wells in the Laminaria-Carollina oil fields (two of the wells were previously suspended). The process involved closing off the valves that control pressure and flow on the sea floor, and installing two sets of specialised barriers at two different sections of the well to ensure fluids cannot escape.
The other part of the campaign involved flushing of nearly 30km of pipeline, including subsea umbilicals, risers and flowlines. The process ensures the pipeline are clear of hydrocarbons and hazardous materials before disconnecting the FPSO which is penned for the second half of 2025.
The completion of this well suspension and flushing campaign is a major step towards allowing the FPSO to be safely disconnected from the subsea infrastructure without leaking fluids into the ocean. More work will take place in later phases of the project to permanently plug and abandon the wells.
Deep water well control service provider, Marine Well Containment Company (MWCC), has onboarded W-Industries with a multimillion contract to conduct the engineering, fabrication, and delivery of its new drill-ship deployed containment system.
This will enhance the coverage for potential deep water well control situations that majorly impact the offshore oil & gas industry. MWCC’s new MODU Deployed Containment System (MDCS) will be put into place by W-Industries, involving designing, manufacturing, and integration of its seven key flowback modules. This new equipment will further enhance MWCC’s already extensive capabilities to capture and keep hydrocarbons out of the environment in the event an incident well cannot be immediately shut-in. Designed to operate reliably in challenging offshore environments, the flowback solution will provide dependable performance for up to six months, allowing sufficient time for relief wells to be drilled to permanently plug the well.
“W-Industries is proud to partner with MWCC on this critical project,” said Michael Bain, SVP Integrated Systems at W-Industries. “With our extensive technical experience in offshore automation and modular fabrication, we are dedicated to delivering an efficient and robust solution that will significantly enhance MWCC’s containment response capabilities.”
“MWCC is excited to work with W-Industries on this important enhancement to our current flowback capabilities, a great example of our never-ending focus on continuous improvement,” said David Nickerson, CEO of MWCC. “W-Industries’ expertise in delivering highly automated modular processing systems is exactly what MWCC was looking for.”
This partnership reinforces W-Industries’ leadership in offshore energy innovation, particularly in supporting industry safety initiatives and regulatory requirements. By contributing to MWCC’s continued advancements in well control capabilities, W-Industries is demonstrating its commitment to operational safety, regulatory compliance, and offshore risk mitigation. This positions the company as a trusted partner for offshore and subsea energy solutions, ensuring that well containment technology continues to keep pace with developments in offshore drilling practices.
To address the challenges associated with offshore oil and gas decommissioning, the Ocean Conservancy has recommended the following actions to be taken to set the stage for long-term success:
The Bureau of Safety and Environmental Enforcement (BSEE) should develop mandatory decommissioning plans, under which operators are able to clear their decommissioning backlog within a set timeline. For offshore wells and platforms located on expired, terminated, or relinquished leases, the BSEE must enforce appropriate decommissioning deadlines and ensure that they are up-to-date. In case of uncertainities regarding the enforceability of BSEE sanctions, the agency should issue clarifying guidance or set up new or revised guidelines.
For idle wells and platforms located on active leases, the BSEE should codify its decommissioning deadlines for such infrastructure. It should also shorten deadlines to ensure that idle wells and platforms are cleaned up promptly, while ensuring that these wells and platforms are decommissioned within one year. Furthermore, the BSEE should be cautious of granting decommissioning waivers for potential future use of wells or platforms. In case it does grant a future use waiver, the agency should require operators to provide supplemental financial assurance that will cover the full cost of decommissioning. The BSEE should also increase its use of sanctions to compel compliance with decommissioning deadlines.
When a pipeline no longer proves useful, the BSEE should require its owner to remove it from the seabed. Regulations need to be revised and the agency needs to permit decommissioning in place only in rare circumstances, during which operators need to monitor the condition and location of the pipeline over time to ensure that it remains secure. Moreover, a fee needs to be paid to combat the impact of the discarded pipeline. The BSEE operators are also required to perform site clearance activities and ensure that the agency steps up its observation, inspection and verification, so that it does not entirely rely on self reported data provided by the operators.
The Bureau of Ocean Energy Management (BOEM) should also consider implementing a system that would require each lessee to establish a dedicated account, into which the lessee would invest funds sufficient to satisfy estimated decommissioning obligations. The main advantage of this system is the absence of bonding requirements. Funds should also be made available to the lessee during the conclusion of lease operations. Most importantly, the BOEM should ensure minimisation of US taxpayer exposure to decommisioning liabilities.
The BSEE and BOEM need to establish 'fitness to operate' standards to ensure that lessees and operators are qualified to conduct business on federal offshore oil and gas leases. Factors such as past compliance, and lease permit terms and the financial health of lessees and operators need to be considered. A formal rulemaking process needs to be undertaken to ensure that the standards are enforceable. During this process, agencies must disqualify existing or potential lessees or operators that fail to meet the required fitness standards.
Both the BSEE and BOEM need to increase their commitments to transparency and data sharing in regard to offshore oil and gas decommissioning operations. By expanding their dashboard with additional details on status and ownership of wells and pipelines, they can ensure that publicly available data is more accessible and understandable. The dashboard could also be made more elaborate and user friendly by adding more details about the disposition of structures, including the reuse of platforms and rigs-to-reeds status. Furthermore, it could also disclose estimated and final costs for decommissioning activities.
To strengthen government oversight and enforcement of offshore oil and gas decommissioning activities, the Congress can pass legislation mandating any of the above policy solutions and also to achieve outcomes that are beyond the existing authority of administrative agencies. Additionally, job training programmes can also be facilitated to train those oil and gas workers who are interested in transitioning to work on renewable energy projects or offshore decommissioning work.
A company specialising in rigless well intervention services, TSMarine (Contracting) Ltd, has bagged contracts of approximately £2mn for a multi-client well abandonment programme.
The contracts will be delivered for two significant operators in the North Sea, where TSMarine's recently chartered vessel, the Rem Poseidon, will be deployed to plug and abandon three Category 2 suspended subsea wells in the Southern North Sea.
The campaign will involve perforation, followed by cementing the wells before the wellheads have been severed and recovered. TSMarine will also recover and dispose residual oil-based muds as required in the process.
Speaking on the project's focus on spreading the mobilisation and transit costs that come with decommissioning, Tim Martin, TSMarine's Regional Director for Europe and Africa, said, "We have developed this innovative approach to deliver significant cost benefits to operators - the first of several innovative approaches which we are developing to drive down the cost of subsea decommissioning.
"The trend for multi-client well abandonment projects is increasing, primarily because operators are sharing fixed costs with each other and realising the cost savings that can be achieved from a single mobilisation."
The project is similar to the one that the Aberdeen-based subsea services contractor took up in 2008 for bp, Perenco and Tullow Oil. "We are well positioned to support operators effectively manage decommissioning activity and this project underlines our ability to offer operators cost effective, bespoke well abandonment and decommissioning programmes," said Martin.
As the lead contractor for the programme, TSMarine will project manage the campaign, develop the work scope, including but not limited to, developing the required tooling, selecting and managing sub-contractors, planning and executing the offshore operations. In addition, the project team will carry out well reviews, HIRA and emergency response planning.
A key player in the niche subsea rigless intervention and decommissioning market, TSMarine operates worldwide, with offices in Aberdeen, Bergen, Norway, Perth Australia, Singapore and Nigeria.
To know more about Europe's well intervention scene, click here.
Production at Brazil’s Mero field is set to ramp up with the arrival of SBM Offshore’s FPSO Alexandre de Gusmão.
The FPSO, which has a production capacity of 180,000 barrels of oil (BOPD) per day and gas compression of 12mn cubic metres per day, left China for Brazil in December. It is scheduled to spend 22.5 years in the country according to the terms of a lease and operation contract with Petrobras signed in 2021. Alexandre de Gusmão will be the fifth FPSO unit operating at Mero, joining Pioneiro de Libra, Guanabara, Sepetiba, and Marechal Duque de Caxias. The addition of the new FPSO is expected to boost the field’s production capacity to 770,000 bopd.
The Mero field, located in ultra-deep waters (2,100 m) approximately 190 km off the coast of Rio de Janeiro in the pre-salt layer of the Santos Basin, reached the milestone of 500,000 barrels of oil produced daily on 28 February. Discovered in 2010, Mero is governed by the Libra Production Sharing Contract, operated by Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies (19.3%), CNOOC (9.65%), CNPC (9.65%) and Pré-Sal Petróleo SA (PPSA) (3.5%), which, in addition to managing the contract, acts as the Union’s representative in the non-contracted area (3.5%). The pre-salt currently accounts for 81% of Petrobras’ total production.
"Since extracting its first oil, Mero’s production has been marked by technological advances, innovation and production records. The 500,000 barrels per day mark is the result of the work of several areas and the new technologies used in our projects and in our day-to-day operations. The company remains committed to operating sustainably, optimising production in existing fields and, in doing so, helping to provide the energy needed for the country’s development," said Magda Chambriard, CEO of Petrobras.
"Mero is the third largest field in Brazil and, in terms of volume of oil in place and production, is behind only Tupi and Búzios, also located in the Santos Basin pre-salt. And production will increase even further with the completion of the ramp-up of the FPSO Marechal Duque de Caxias and the start-up of the FPSO Alexandre de Gusmão. We have invested heavily in technological development, which allows us to increase productivity while minimising greenhouse gas emissions, with safety and integrity of the facilities," said Sylvia Anjos, Petrobras’ Exploration and Production Director.
Nauticus Robotics has announced the signing of a definitive agreement to acquire subsea robotics expert SeaTrepid International.
The strategic acquisition, which is projected to be completed by May 2025, underscores Nauticus’ commitment to innovation and revenue growth in 2025. By integrating Nauticus’ AI-driven autonomy software ToolKIT into SeaTrepid’s existing ROV fleet, the combination will showcase strong advancements in power efficiency and operational performance.
The ability of ROVs and Aquanaut to communicate at depth unlocks new service opportunities which enable the two autonomous systems to collaborate in delivering cutting-edge underwater solutions.
Bob Christ, SeaTrepid’s previous CEO and now President of SeaTrepid Operations, said, “We look forward to combining with Nauticus to extend ROV capabilities and enhance execution on a global scale."
David Huber, current SVP of Ocean Minerals, commented, “SeaTrepid is a long-time reliable subsea services provider to the deepwater companies I have worked for over the past several decades. With the combination of Nauticus' autonomous cutting-edge controls technology coupled with SeaTrepid's deep knowledge of subsea services, I see this as a breakthrough development for the offshore sector."
While subsea pipelines that are not in use are considered obstructions and need to be cleared by operators from the seafloor, there are a number of gaps in regulations governing the decommissioning of subsea pipelines.
For example, when the BSEE staff refuses to find a pipeline as obstructive, they may proceed to clear the inside of the pipeline, secure its ends, and leave it on the seafloor. This is considered an exception which has resulted in nearly 97% of disused pipelines to remain on the ocean floor. According to the Governmental Accountability Office (GAO), operators had left around 18,000 miles of disused pipeline at the bottom of the Gulf of Mexico, as of 2021. Although these structures might go on to become an obstruction over time, their removal has been largely unsuccessful in most cases, due to a lack of funding mandate allocated towards pipeline removal.
Another notable loophole is the absence of fixed decommissioning deadlines within existing regulations. Verification regarding the absence of obstructions on decommisioned pipeline sites are also not mandatory. Moreover, BSEE regulations do not require operators to monitor and report on decommissioned-in-place pipelines, nor does BSEE itself monitor decommissioned-in-place pipelines. There is also no fixed data on the extent to which the industry is actually complying with any of the agency regulations that have been laid out.
Elemental Energies has expanded its senior management team with the appointment of Ross Provan as Head of Decommissioning Solutions.
Ross will bring 18 years of projects and operational experience to the role, with expertise spanning drilling, facilities engineering, subsea, project assurance, construction and decommissioning.
In his new role, Ross will lead Elemental Energies’ focus on EPRD (engineering, preparation, removal and disposal) and the integration of services including the existing wells decommissioning capabilities across all areas of the work breakdown structure.
Mike Adams, Chief Executive Officer at Elemental Energies, said, “With global offshore decommissioning spend projected to double over the next two decades, the need for integrated, cost-effective and innovative solutions is crucial […] With Ross leading this key area, we are confident that his experience and expertise will help us to continue to drive innovation and efficiency in the decommissioning sector.”
Elemental Energies has built a global reputation in engineering and project management, and has an extensive track record managing large-scale platform P&A, major subsea well decommissioning and integrated wells and facilities projects. Last year the company continue to expand its service offering with the joint venture announcement with Archer for global P&A services.
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