Offshore Network has released a free-to-download report outlining the developing prospects for the Asia Pacific’s offshore well intervention industry.
The wider energy sector is facing daunting challenges in the shape of increasing electricity consumption and the ever-increasing demand to limit environmental impact. While the rise of cleaner energy sources such as renewables appear unstoppable, there does, however, remain a place at the table for oil and gas, with fossil fuels set to continue to be an important component of the energy mix for the decades ahead. This trend is particularly pronounced in Asia, which is set to dominate global oil demand growth in 2024 and beyond.
While drilling has traditionally provided the answer to meeting growing demand, rising costs, uncertainty of success and environmental concerns are turning heads away from this activity and towards the potential of well intervention. The emergence of this is also being encouraged by the need for plugging and abandonment, a concern ever-growing in urgency as the region’s well stock continues to age. With market conditions opportune for well intervention to take centre stage, there remain some key challenges that must be overcome before it can fully step into the spotlight and fulfil its potential.
Offshore Network’s latest outlook assesses these key challenges such as collaboration and operator-service provider disharmony while examining the vast opportunities the region is offering.
Energy services provider Expro has announced it has entered into a definitive agreement to acquire Coretrax, a technology leader in well integrity and production optimisation solutions, from an investment group led by Buckthorn Partners.
The acquisition of Coretrax will enable Expro to expand its portfolio of cost-effective, technology-enabled well construction and well integrity solutions, particularly across the North and Latin American, Europe and sub-Saharan Africa, and the Middle East and North Africa. Building on Coretrax’s successful 15-year history, the acquisition will accelerate the availability of the company’s innovative tools by leveraging Expro’s global operating footprint.
Michael Jordan, Chief Executive Officer, said, “We are thrilled to announce our proposed acquisition of Coretrax and look forward to welcoming John Fraser and his teammates to the Expro family.
“Coretrax has a complementary offering to Expro with little overlap and will bolster the portfolio of technology-enabled services and solutions offered through our Well Construction and Well Intervention & Integrity product lines, adding significant value to our clients from innovative technologies that reduce risk and cost, optimise drilling efficiency, extend the life of existing well stock, and optimise production.”
John Fraser, CEO at Coretrax, commented, “The synergies between our respective technology portfolios will enable us to grow our market share while significantly increasing our capabilities to tackle the most complex well challenges. We are proud of the innovation-led approach, strong customer base and performance history that we developed over the last 15 years, and we look forward to joining forces with Expro to create greater value for our customers globally.”
Helix Energy Solutions has announced the extension of its decommissioning contract with Trident Energy do Brasil Ltda.
The contract extension is for an additional 12 months and in direct continuation of the current contract. The extension is expected to begin in the fourth quarter of 2024 at rates in line with the improved well intervention market. The original contract commenced late 2022 offshore Brazil in the Campos Basin and utilises the Siem Helix 1 riser-based well intervention vessel and a 10K Intervention Riser System. Helix is providing fully integrated plug and abandonment well services through its Subsea Services Alliance partner SLB as well as project management and engineering services.
Helix and Siem Offshore have signed six-year charter extensions for both the Siem Helix vessels, with the Siem Helix 1 term extending through December 2030 and the Siem Helix 2 term extending through December 2031. The Siem Helix vessels 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 (ROV) operations, offshore construction and emergency response.
The Helix Producer I (HPI) contract has also been extended by one year, to 1 June 2025. Since 2016, the HPI, a ship-shaped dynamically positioned (DP2) floating production unit, has been located at Green Canyon Block 237 producing oil and gas through the existing Phoenix Field subsea infrastructure. The vessel is designed to produce hydrocarbons and export to shore via pipeline or tanker.
Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, stated, “We are pleased to announce that Helix has successfully executed these contract extensions, reflective of improving market conditions and increased demand for Helix’s assets and services.”
UK-based, closed-loop geothermal energy developer, CeraPhi Energy, has acquired the business of Third Energy Limited, a former shale gas development company with plans to repurpose the existing wells into clean geothermal energy centres.
The acquisition includes the subsidiaries, namely Third Energy Trading Limited, Wolfland Renewables Limited, Wolfland Utilities Limited, Third Energy UK Gas Limited, and the 50% holding in West Heslerton Renewables Limited.
The assets located in North Yorkshire, UK, include eight well sites consisting of 12 former gas wells in a suspended state, 22.4 km of 6-inch and 16.6 km of 3-inch subterranean pipelines and a further 22.4 km of buried fibre optic comms lines.
CeraPhi completed a commercial demonstration of its CeraPhiWell system earlier in the summer using the Third Energy KMA site. CeraPhi’s strategy is to de-risk the scaling and commercialisation of large-scale heat networks using boreholes down to a depth of 2km, reducing the space required for deployment of large-scale systems and increasing the extraction of thermal energy available for network connections. By both drilling new wells and repurposing end-of-life and non-producing oil and gas wells, the CeraPhi solution will provide 'huge commercial potential' for the scaling of geothermal heat networks in the UK and globally.
CeraPhi Energy CEO Karl Farrow said, “The decarbonisation of heat represents a huge UK and global challenge in meeting our net zero targets. Combined with the continued insecurity customers face with volatility and seasonal cost of fossil fuels, we have to move geothermal energy to scale to reduce the cost of deploying direct use heat, which is an endless resource not subject to price fluctuation, enabling a move away from our dependency on fossil fuels within our day to day energy mix.
"By using the inexhaustible resource beneath our feet using closed-loop technology we can access this energy anywhere with zero environmental risk, requiring no hydraulic fracturing, no use of water and providing enough energy within the next 15 years to solve our energy crisis indefinitely."
Third Energy Managing Director Russell Hoare said, “At Third Energy we’ve been pursuing a transition strategy for several years now with geothermal energy at the centre of that strategy and in CeraPhi we have found a capable and accomplished partner, as proven by the successful geothermal demonstrator project at our KMA site this summer. Bringing together the expertise of CeraPhi with the assets of Third Energy is a natural progression and I look forward to working with Karl and his team to continue the story.”
Siem Offshore has secured long-term contracts with Helix Energy Solutions for two of its Siem Helix well intervention vessels.
The two contracts for Siem Helix 1 and Siem Helix 2, valued at US$682mn, will come into effect from 1 January, 2025, and 1 January, 2026, respectively and will replace existing agreements to ensure firm utilisation for these vessels until at least 2030.
Each vessel will have a duration period of six years, with an optional extension period of up to five years, the contracts provide a solid foundation for future endeavors and growth for Siem Offshore. Siem Helix vessels have played a crucial role in the well intervention segment, and the longstanding partnership between Siem and Helix is a testament to the success both companies have endured.
Pertamina Geothermal Energy (PGE), an Indonesia-based company, has signed a Memorandum of Confidentiality Agreement with Turkish energy company Kipaş Holding to start a cooperation for the utilisation of geothermal energy.
The Indonesian Embassy in Ankara facilitated PGE’s efforts to seek cooperation in geothermal exploration with various companies throughout Türkiye. PGE and Kipaş Holding are both interested in carrying our exploration projects cooperatively in both Türkiye and Indonesia, and are open to the possibility of a joint investments elsewhere.
The signing of the agreement was carried out by Julfi Hadi, President Director of PGE, and Mehmet Şişman, General manager of Kipaş Holding, witnessed by the Indonesian Ambassador to Türkiye, Achmad Rizal Purnama.
“We are happy to have met with Pertamina Geothermal Energy and hope that the cooperation will be fruitful with an exchange of information and experience for geothermal energy sector improvement in both Türkiye and Indonesia,” commented Şişman.
Oilenco Ltd has been awarded a contract for the provision of engineering and manufacturing services for a major North Sea operator.
The contract will see Oilenco provide well intervention and downhole equipment throughout a 52-well subsea plug and abandonment campaign, as well as its range of services including engineering, CNC machining, assembly, and maintenance services.
Blair McCombie, Operations Director at Oilenco, commented, “This contract award is an outstanding achievement for Oilenco. Not only does it demonstrate our capability to provide high-quality P&A solutions, but our clients will benefit from our breadth of knowledge and experience in this market.
“As Oilenco celebrates turning 15 this year, securing this contract and being part of this significant P&A campaign is a fantastic way to kick-start our celebrations.”
Oilenco has been providing P&A tooling solutions to the UKCS for more than six years, accounting for a significant growth area within the company through the provision of hybrid plugs, remote opening devices, and scale remedial solutions in its extensive fleet.
As part of a North Sea project this year, subsea engineering company Interventek will be supplying a newly developed, compact and lightweight bore selector technology to decommissioning services provider, Well-Safe Solutions.
Interventek will also provide life of tool support including training, services and critical spares.
Interventek’s CEO, Alan Duncan, explained, “This type of compact and lightweight technology is currently limited in market availability, so the provision of our new solution to tier one service companies will help to enhance industry efficiency and cost-competitiveness, particularly in the decommissioning sector. We’re delighted to have been selected by Well-Safe as a new equipment supplier and are dedicated to supporting them in delivering optimum results to operators.”
Steven Chalmers, Wells Subsea Manager at Well-Safe Solutions, said, “Well-Safe Solutions is committed to realising safe, smart and efficient well decommissioning operations. New technology plays a vital role in making operations as efficient as possible and Interventek’s Bore Selector will help to boost efficiency when deployed from the Well-Safe Guardian.”
The design of the bore selector supports the industry’s move towards more compact and lighter weight systems with improved deck handling and deployment efficiency. The tool’s function allows a monobore riser or riserless system to be used for intervention on a dual bore Xmas tree. This means that dual bore interventions can be carried out without returning the system to surface to realign the riser for annulus bore access, enabling access to a large number of wells in a shorter period of time, with increased operational efficiency. It is positioned between the tree running tool and the lower riser package and uses an actuated flapper which can be moved manually via a standard ROV interface or hydraulic surface controls. The flapper position directs the wireline toolstring into either the production bore or the annulus. A bi-directional ball valve is also integrated into the annulus access route to enable circulation of fluids during operations.
As COP28 shone the spotlight onto the ambitious targets set by the Heads of State and Governments Global Renewables and Energy Efficiency Pledge, wherein 123 countries recognised their commitment to maintaining global warming levels to within 2°C, work is only just beginning throughout the world’s energy network to increase the pace and deployment of renewable sources.
Currently, geothermal energy only accounts for 0.5% of global renewable installed capacity according to the International Renewable Energy Agency, signifying that there is significant room to increase deployment. According to the International Geothermal Association (IGA) there are currently 2,500 active deep geothermal wells globally, boasting an installed capacity of 173GW for heating and cooling purposes. While China is leading the localised heating system charge, the EU, USA and APAC regions are hot on its heels, offering an abundance of potential for geothermal extraction.
From an electrical standpoint, IGA states that there are currently 3,700 active geothermal wells globally boasting an installed capacity of 16.3GW. The US is the global front runner, generating more geothermally-charged electric power than any other region in the world, with that figure only set to increase. In line with the COP28 Renewables Pledge, IGA has promised to triple geothermal output by 2030, bringing overall electric power capacity up to 48GW, and total geothermal generation for heating and cooling systems up to 520GW. North America will prove to be a key player in meeting this target, becoming a driving force in boosting production via pilot projects and new technologies.
Offshore Network’s bespoke 2024 Geothermal Case Study Review shines the spotlight over North America, highlighting a selection of game-changing projects and the companies behind them, including Fervo Energy, GreenFire Energy, Baker Hughes and C Thermal.
Cooper Energy Limited, an exploration and production company, has announced that the Helix Q7000 vessel has commenced work on the first well of the Basker Manta Gummy (BMG) decommissioning programme.
Although the company admitted that progress has been slower than anticipated, it is now making headway on the project with the Helix Q7000 – a purpose-built DP3 semisubmersible vessel from Helix Energy Solutions – now commencing work on the Basker-3 well after initially arriving late to the BMG field. The late arrival of the vessel resulted in Cooper Energy incurring more than three months of holding costs for the remaining contractor spread on the BMG programme and, in addition, more time was required during start-up activities due to factors such as loading of equipment and integration of the Integrated Riser System (IRS).
While Cooper Energy does not anticipate the start-up delays to impact the remainder of the project, the slow progress means re-forecasting of the programme for the remaining six BMG wells is required. As a result of this, the company has revised its mid-case cost estimate for the BMG decommissioning from AUS$193-198mn to approximately AUS$240-280mn. In order to keep this as low as possible, the company has indicated it will be applying learnings from the Basker-3 decommissioning work to the remaining wells. In addition, where possible, Cooper Energy and its contractors will aim to simplify the scope of decommissioning.
While the focus remains on executing the decommissioning programme safely and within the minimum time possible, the company has indicated there are certain risks retaining, including variables outside of the company’s control that could increase the total cost of the decommissioning programme.
Previously, the Helix Q7000 was at work offshore in New Zealand, conducting a decommissioning campaign on the Tui oil field. Click here to learn more.
Aquaterra Energy, a leader in global offshore energy engineering solutions, has won a three-year contract with a leading UK exploration and production company to provide analysis services across the company’s offshore operations.
As per the contract, Aquaterra Energy will provide a range of offshore analysis services to deliver vital insights for the operator, enabling it to optimise its operational performance. This will include riser and conductor analysis for jack-ups and semi-submersibles alongside integrity management, decommissioning and late-life analysis.
“We’re delighted to strengthen our partnership with this customer by signing this contract,” remarked James Larnder, Managing Director of Aquaterra Energy. “We have dedicated significant time and resources to winning these long-term analysis contracts, and the success we’ve seen in this area is a testament to the first-class service delivered by our expert in-house team. To support this growth, we have doubled our analysis team over the last few years, with a focus on recruiting graduates through our award-winning graduate programme.”
Aquaterra Energy will support the operator with recommendations to manage risks and optimise offshore designs for its global portfolio across the full offshore project lifecycle, from extending or decommissioning late-life wells, to early-stage planning. In doing so, it aims to enhance performance, lower costs and support the reduction of carbon emissions from the company’s operations.
Martin Harrop, Analysis Manager at Aquaterra Energy, added, “We’re an agile, solutions-driven partner, and through these long-term agreements can provide customers with assurances and recommendations from the earliest stages of their projects – where we can provide the most value to project delivery and identifying efficiency gains. We work closely with our in-house project engineers to ensure the solutions we suggest to clients are not just what’s best from an analytical perspective, but also an engineering one, and the growth we’ve seen in this area speaks to the quality of our service.”
In a recent update on the SPS-88 well from the Bauna Project site in Brazil, Karoon Energy said that it will install a lightweight intervention vessel (LWIV) to start an intervention process so that the impacted well can be brought back to production.
Production from the SPS-88 well was first affected in November 2023 due to the formation of hydrates owing to an equipment failure in the gaslift dehydration unit of the floating, production, storage and offloading (FPSO) platform. Of the 12 subsea wells from the area that are joined to the Altera&Ocyan-operated FPSO via flowlines, two Patola wells were bought online last year. While the company closely worked with the FPSO operator, and had the faulty equipment successfully replaced and topsides issues resolved to remove the hydrates by circulating fluids, a mechanical blockage in the gas lift valve still obstructs the well's production capacity.
The obstruction has led the company to decide upon undertaking a 20-day intervention process by LWIV that will cost it approximately US$5-10mn. Subjected to engaging a LWIV and ancillary services and equipment, the company noted on its latest statement that this work will be initiated on the fourth quarter of 2024.
As highlighted on its statement, the intervention work will reflect on Karoon's production costs as it will swing between the range of US$10.5-15.0 per boe for the year from the previous US$9.0-14.0 per boe. While the Bauna FPSO comes with a storage capacity of 631,000 boe, the intervention plans has also led it to lower its last year production goals to stand around 9.0mn boe.
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