In line with its decarbonisation plans, the British Geological Survey has initiated a £1.7mn renewable energy system, including the installation of a geothermal heat pump that also serves as a 'living laboratory' at its headquarters in Keyworth, Nottinghamshire.
Primarily funded by the Natural Environmental Research Council (NERC) with a further contribution from the Government’s Public Sector Decarbonisation Scheme, the installed system comprises of 28 boreholes drilled to a depth of 225 m.
With advanced monitoring enabled to assess running costs and efficiency, the site will also serve as a laboratory for organisations considering to replace fossil fuel boilers with clean heat pumps. In fact, the institute will conduct further studies through rock samples to help get a better understanding of the flow of heat and water underground, which can be resourceful for those taking up similar projects in the future.
The geothermal setup at the BGS campus that substitutes greenhouse gas-emitting gas boilers will save approximately 30 tonnes of carbon dioxide per year, and reduce the organisation’s heating bill.
"Geothermal energy is heat that naturally occurs under the ground and is available 24/7 across the UK. This project will demonstrate the deployment of ground-source heat pump technology to decarbonise existing buildings across the public sector estate," said David Boon, Senior Engineering and Geothermal Geologist at BGS.
Decom Engineering (Decom), a provider of green decommissioning solutions, has executed three market-entry Australian contracts to strengthen its position within the Asia Pacific region.
The company was commissioned to supply and operate its chopsaw cutting technologies on behalf of a major operator in the Bass Strait alongside two other clients in Australian waters. Together, the contracts amounted to more than UK£500,000.
The decommissioning specialist performed three cuts on a 20’’ concrete weight coated carbon steel rigid pipeline as well as 25 cuts on a 13’’ in-filled flexible flow line jumper, with a 4.5’’ piggy back. This was achieved through the deployment and use of its C1-24 chopsaw at water depths of around 400 m. Meanwhile, another C1-24 chopsaw was utilised on assets in the country’s North West Shelf at water depths of around 500 m.
Decom Engineering Managing Director, Sean Conway, remarked, “The award of these three contracts by major operators is a clear signal that our commitment to the Australian decommissioning sector is being rewarded. With the extensive track-record Decom has established on projects in the UK North Sea, Africa and Asia, we judged that now was the right time for us to enter the Australian market and we are keen to be part of the sector’s journey to sustainability.”
The commitment to the country took the form of a significant investment in the region of UK£500,000 in order to establish infrastructure and relocate equipment and personnel to be reactive to local market demands. This decision was taken after the company recognised the remarkable opportunity that Australia presents, leading Decom to recognise it as strategic market for its future growth. This is also in line with a wider growth directive for the Asia Pacific market, with Decom investing upwards of UK£2mn to design and manufacture a nine-strong portfolio of chopsaws and supporting equipment (including control panels, spares and consumables) which have been used of projects throughout the region.
“We are excited to be kicking off three Australian projects in tandem and look forward to building a strong relationship with our customers,” Conway added. “As our reputation grows, we will replicate our AsiaPac model by investing in facilities, equipment and personnel in Australia, to provide cutting edge technologies which will assist contractors and operators looking for cost effective and environmentally sound decommissioning solutions.”
Following initial success, the company is aiming to introduce its Pipe Coating Removal (PCR) system to Australia in order to offer a full-service decommissioning option for redundant oil and gas steel pipes. The PCR strips steel tubulars of coating and transforms the pipe into a reusable product suitable for other uses.
Conway concluded, “To date our PCR system has processed more than 30,000 tonnes of steel tubulars from surplus prime and decommissioned oil and gas fields and we think that this is an offering which could introduce significant environmental and financial benefits to the massive Australian decommissioning sector.”
The city of Kalisz, Poland, is set to receive PLN14mn (approx. US$3.5mn) from the National Fund for Environmental Protection and Water Management to subsidise the drilling of a geothermal well in the city.
The Ministry of Climate and Environment granted the funding to carry out work checking the availability of geothermal reserves by drilling a vertical borehole to depths of 1,700 m next to the Aquapark swimming pool complex within 2024-2025.
Kalisz has been rumoured to be the home of rich geothermal reserves, and this exploration project aims to discover if there is indeed truth to that statement.
Kalisz’ Mayor, Krystian Kinastowski, stated, “We have been waiting for this information for a long time, but it was worth developing projects, documents and analyses for many years.
“We will drill a geothermal well in Kalisz to check the availability of geothermal waters under out city […] We hope that we will be able to discover hot springs and the water found in them will be used to heat homes and for recreational purposes.”
The North Sea Transition Authority (NSTA) has released the latest version of the Decommissioning Data Visibility Dashboard in a bid to make decommissioning operations more cost-efficient.
When first piloted by the organisation in 2021, the platform included field-specific information of just three operators. Now, that number is up to 15, unlocking even more vital information about upcoming work to potential suppliers. This will allow for enhanced collaboration and careful planning to achieve more cost-effective decommissioning operations, ultimately making them more attractive.
According to NSTA, the interactive dashboard provides suppliers with the confidence to invest in technologies and training by reducing the uncertainty and lack of transparency around the timing of decommissioning activities. Armed with data from the annual UKCS Stewardship Survey, it shows how many wells, subsea structures and pipelines the companies plan to decommission – as well as the weight of platforms to be removed – over the next five years.
Alastair Bisset, NSTA Head of Decommissioning and DaRT Co-Chair, remarked, “Suppliers need to know when decommissioning work is going to happen so that they can invest with confidence and plan effectively. The dashboard was created to help plug this knowledge gap, so it is very satisfying to see this group of leading operators put their weight behind it.”
Operators will be able to use this data to identify potential collaboration opportunities to decommission wells together (thereby saving costs) while service providers have the chance to discover what skills and resources will be in demand at an earlier date.
Scott Barr, Executive Vice President, North Sea, at Harbour Energy and DaRT Co-Chair, commented, “This dashboard will help provide the supply chain with the visibility and confidence they need to deliver UK decommissioning works in a timely and cost-competitive way. It will also enable organisations to better understand future demand for skills and resources and to further increase their capacity to invest in technology and training programmes accordingly.”
Austrian fruit and vegetable producer and marketer, Frutura, has commissioned an energy module from Orcan Energy allowing the company to transfer excess heat from geothermal drilling into clean power.
The Orcan Energy module produces around 625MWh of electrical energy per year, enabling Frutura to save approx. 100 tons of CO2 annually.
In 2016, the company opened Frutura Thermal Vegetable World in Styria, Austria, marking a significant step for a new era of sustainable agriculture. Thermal water is used to heat greenhouses, and until recently the excess heat generated by geothermal drilling remained unused. Now, Futurua is converting the heat into clean energy with the help of Orcan Energy’s module and utilizing the geothermal borehole all year round, enhancing energy efficiency.
Manfred Hohensinner, Managing Partner for Frutura, said, “Now that we have become independent of fossil fuels for heat generation, it was a logical step to convert the excess heat from geothermal drilling into electricity. Orcan Energy was the ideal partner for us, providing all the flexibility we need to respond to any changes in the future thanks to their modular approach.”
Andreas Sichert, CEO of Orcan Energy, commented, “Together, we combine the direct use of geothermal heat with the production of electricity. With Orcan Energy, heat-to-power is also possible on a smaller scale thanks to our modular approach.
“In particular, the simple combination with our standardised modules has great potential: We can meet both the heat and electricity requirements of the building sector, commercial and industrial businesses with geothermal energy in a decentralised, CO2-free and attractively priced way.”
In a five-year joint framework agreement with Talos Energy Inc, Helix Energy Solutions Group, Inc gets the first right of refusal regarding specific annual work scopes for Talos’s decommissioning requirements in the US Gulf of Mexico.
Scheduled to start in the second quarter of the year, the agreement outlines a base pricing structure and processes for determining and scheduling specific projects Talos requires.
The projected scopes of work include Talos’s normal course abandonment of offshore wells, pipelines and platforms, primarily on the shelf. Helix’s Louisiana-based shallow water abandonment group, Helix Alliance, plans to utilise derrick barges for structure removals, liftboats for plug and abandonment activities, and dive support vessels (DSVs) for pipeline abandonments, plus multiple offshore supply vessels (OSVs), among other assets in the course of the campaign.
Owen Kratz, Helix’s President and Chief Executive Officer, said, “We are excited to have been awarded this significant framework agreement for well and structure removal and decommissioning. Helix and Talos have worked together on field production, well intervention and decommissioning in the deepwater arena for many years, and this framework expands the relationship onto the shelf, further demonstrating Helix’s position as the preeminent company for full-field decommissioning in the Gulf of Mexico.”
As the oil and gas industry is increasingly seeking sustainability, well intervention remains an obvious choice.
According to Jenny Feng, Supply Chain Analyst, Rystad Energy, operators will look to "ramp up production from existing fields, and well interventions will be a vital piece of the puzzle. As a quick, efficient, and cost-effective method of maximising existing resources, interventions are going to be a hot topic in the years to come." As per the research body’s prediction last year, spending on interventions stands close to nearly US$58bn. With sustainability the focal point, this amount sets the bar for a surge in the coming years as the number of wells ready for intervention is projected to reach 17% by 2027, equating to a total 260,000 wells globally.
Middle East and North Africa's (MENA) eagerness to take up intervention activities is well evident as companies such as Coretrax is showing increased interest in the fossil fuel-driven region. “The Middle East is a key growth area for Coretrax... As operators remain focused on maximising recovery efficiently and sustainably, our expandable technology is ideally placed to support this demand," said John Fraser, Coretrax CEO, while marking the company’s first deployment of ReLineWL straddles in 2022 for a major Saudi operator.
In another multi-year contract in the Middle East signed as recently as October 2023, the well integrity and production optimisation leaser will be delivering production enhancement across a multi-well campaign. It will also be supplying expandable tubulars to support brownfield optimisation. With advanced tools such as ReLineMNS and ReLineHYD expandable casing patches under the brand name, the company will effectively help isolate trouble zones and stimulate production on the operator’s existing wells.
Companies from the region are leveraging artificial intelligence and machine learning (AI and ML), and coming up with groundbreaking digital innovations in the intervention space. AIQ's autonomous well control solution called RoboWell that has been deployed by ADNOC in its North East Bab (NEB) assets remains one such instance. Expro, which is an active player in the MENA region, has come up with a tool called Galea, which is a completely automated well intervention system that can perform a variety of slickline operations, offering easy alternative to conventional methods.
The Middle East and North Africa Well Intervention Outlook attempts to reflect on these industry developments, as OWI MENA 2024 gears up to return in Abu Dhabi from 17-18 September.
The Offshore Well Intervention West Africa Webcast from Offshore Network shines the spotlight on a market with significant potential and unpicks the challenges holding it back.
Moderator Robert Daniels, Editor at Offshore Network, was joined by an expert panel of guests who joined the discussion from a myriad of locations across the region. This list of panellists willing to share their knowledge and experience included Obasi Isdore Chigozie, Well Intervention Specialist at Sterling Oil Exploration & Energy Production Co. Ltd; Albert Amewolah, Subsea Operations Engineering at Tullow Oil; and Isioma Agbadiba, Subsea Production Supervisor at Eni Nigeria.
At a time when the global oil and gas industry is grappling with the energy transition, the need to maintain production targets has remained imperative – despite COP28 calling for an eventual transition away from fossil fuels – in line with growing power demand. In West Africa, companies are now looking to do their part for the environment while also contending with the wider issues around electrification and the role fossil fuels will continue to play in the economic development of its nations.
It is against this backdrop that the panellists spoke on the role of offshore well intervention within this evolving environment – a method often depicted as the answer to enhancing production rates without incurring the sustainability hit of drilling new wells. Additionally, the market and its servers are receiving heightened attention due to the growing need for plug and abandonment activities as the world’s (and region’s) offshore wellstock increases in average age with every passing year.
Together, the industry experts explored such topics and answered where West Africa fits into this global trend? What are the factors unique to the region and that are shaping its future? And what must be done for more well intervention campaigns to be conducted there?
Click here to discover the full, free-to-view webcast.
And for any questions surrounding the topics covered or the upcoming OWI WA conference (running from 28-29 May in Lagos, Nigeria), reach out to:
Jack Heffernan - Project Manager
e:
t: +44 (0)20 3038 6926
Sapura Energy and Norway-based AF Offshore Decom launched their joint decommissioning venture called Kitar Solutions at OTC Asia 2024.
Sapura's strategic assets and AF Offshore Decom's extensive North Sea decommissioning expertise have resulted in Kitar Solutions, which will undertake decommissioning projects with a customised approach, while prioritising risk mitigation and sustainability.
Sapura Energy defines Kitar as a comprehensive suite of engineering, preparations, removal and disposal (EPRD) services that streamlines the decommissioning process, and reflects the company's dedication to advancing decommissioning techniques and promoting effective waste management and recycling.
Kitar Solutions boasts of unique capabilities from facility isolation and cleaning, removal and disposal of topsides, jackets and subsea structures, to engineering and verification surveys. It has dedicated zones for both ship disposal and offshore structure disposal, where installations can be dismantled, recycled and repurposed.
Helix Energy Solutions Group has been awarded a deepwater well intervention contract by Esso Exploration and Production Nigeria (Esso).
The contract is for work offshore Nigeria in the Erha and Usan fields wherein Helix will provide its Q4000 well intervention vessel to cover fully integrated well intervention services from production enhancement to plug and abandonment.
Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, commented, “We are pleased to announce this contract for the Q4000. We are eager to strengthen our relationship with Esso and to further establish our presence as the leader for well intervention services in West Africa.”
The project is expected to commence in September 2024, with the vessel expected to stay in Nigeria until 2025.
Plexus Holdings PLC, an AIM-quoted oil and gas engineering services business, and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has won a contract valued in excess of £1mn to provide specialised equipment and services for multiple plug and abandonment (P&A) activities in the North Sea.
Under the terms of the contract, Plexus will provide Exact adjustable surface wellhead equipment, and specialised centric mudline system tooling and services for P&A operations on wells in the Dutch sector of the North Sea. Operations are planned to commence in Q2 2024 for a period of nine months. Exact adjustable wellheads and centric mudline systems are part of the Plexus licence/collaboration agreement with SLB.
Commenting on the contract, Plexus' CEO Ben Van Bilderbeek said, "The number of wells that must be permanently plugged and abandoned is fast growing, particularly in mature offshore locations such as the North Sea, where the OEUK indicated that decommissioning would account for 25% of oil and gas expenditure in 2023, up from 12% in 2022, and encouragingly I believe this trend will continue. We are therefore delighted that Plexus' reputation is strengthening within this sector, and that our range of customers is broadening. Furthermore, this contract demonstrates the progress we are making in getting back into the adjustable wellhead and mudline equipment market as an established expert in this field and 'go-to' company for this type of equipment and service."
The Federal Government of Austria, through the Climate and Energy Fund (Klima und Energiefonds), has announced a new funding programme worth EUR10mn to support deep geothermal projects.
The ‘Deep Geothermal Energy’ programme will support feasibility and preliminary studies, exploration and investigation measures, pilot drillings and the preparation of projects for the economic use of deep geothermal energy.
The aim of the funding programme is to create the basis for the implementation of efficient and environmentally-friendly deep geothermal projects. The Climate and Energy Fund will support companies and public institutions in five modules:
• Module One – Basic preliminary studies
• Module Two – Feasibility studies
• Module Three – Exploration
• Module Four – Pilot drilling
• Module Five – Citizen participation and information events
Climate and Energy Fund Managing Director, Bernd Vogl, said, “Our new programme helps to develop and implement projects for deep geothermal energy in heating networks and in industrial processes.
“The entire spectrum extends from planning to exploration to pilot drilling. This is intended, among other things, to reduce the risks associated with geothermal drilling. We are excited about the projects that will emerge from this initiative.”
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