Helix Energy Solutions Group will continue to provide well intervention services in the US Gulf of Mexico for Shell starting this year as part of a new multi-year contract.
Ranging throughout the well life cycle to plug and abandonment, the contract will cover integrated project management and engineering services including production enhancement.
The contract ensures services for an increased minimum number of days annually, including the availability of the Q5000 riser-based well intervention vessel, Intervention Riser Systems (IRSs), and remotely operated vehicles (ROVs).
Equipment from Subsea Services Alliance, a venture by SLB and Helix, will also be deployed for operations.
Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, said, “We are pleased to announce that Helix has successfully executed a long-term contract with Shell, a valued customer we have safely worked with on numerous projects around the world and with whom we look forward to continuing our excellent relationship. The contract is reflective of improving market conditions and increased demand for Helix’s assets and services, as we continue executing on our strategy by providing best-in-class and global leading well intervention services.”
Halliburton has taken steps to expand its offshore portfolio as it heads into the New Year.
Fresh from the launch of its new advanced well intervention suite, Halliburton is set to acquire Optime Subsea, a company that delivers offshore technology that disrupts conventional methods and supplies technologies and services within subsea intervention, well completion, and well control. Its offerings simplify complex subsea operations, enhance operational efficiency and reduce risks.
This move will see the latter’s umbilical less technology move into Halliburton’s Testing and Subsea division. Subject to regulatory approval and other customary closing conditions, the transaction is expected to close in early 2025 according to Optime Subsea who will, in turn, receive access to global markets and resources for further technology development.
“The agreement is a validation of our journey as a company, from a local startup to a leader in subsea technology,” said Jan-Fredrik Carlsen, CEO of Optime Subsea. “We are proud of our roots and the strong commitment of our employees, who have made this success possible. This is a fantastic opportunity to join Halliburton and contribute to further growth and development.”
Elsewhere, Halliburton Labs has also announced that five new innovative companies have been added to its collaborative ecosystem. The startups will enter an environment designed to help advance their commercialisation through support from Halliburton’s practitioners and business network. The new companies include:
• 360 Energy: With its In-Field Computing technology, this startup captures flared or stranded gas and monetises it through modular data centres in a bid to provide a valuable solution for resource owners.
• Cella: Providing end-to-end services, Cella advances subsurface mineralisation of carbon dioxide through resource assessment, proprietary injection technology, and monitoring techniques to provide valuable geologic carbon solutions.
• Espiku: Developing solutions that advance water and valuable minerals recovery from brines and industrial produced water streams, Espiuku’s systems allow for rapid deployment in diverse environments to unlock the potential of domestic resources.
• Mitico: The patent-pending granulated metal carbonate sorption technology of Mitico captures more than 95% of the CO2 emitted from post-combustion point sources.
• NuCube Energy: The company’s nuclear fission under development will produce electricity and high-temperature heat for electrical and industrial markets. It targets heat production at temperatures up to 1,100°C for industrial applications to offer cost-competitive electricity in remote areas.
“We welcome these innovative energy startups,” remarked Dale Winger, Managing Director of Halliburton Labs. “We are eager to help these participant companies use their time and capital efficiently to progress new solutions that meet industry requirements for cost, reliability, and sustainability.”
The Maritime Union of Australia (MUA) has expressed its support for the establishment of the Offshore Decommissioning Directorate by the Australian Federal Government. This initiative highlights the government's focus on offshore oil and gas decommissioning opportunities over the coming years.
The Union remains committed to advocating for a comprehensive roadmap that ensures full and proper decommissioning, emphasizing high-quality Australian jobs, workplace safety, and environmental care as part of a just transition from hydrocarbon industries to offshore renewable energy projects.
Thomas Mayo, Assistant National Secretary of the MUA, stated, “Decommissioning is well underway, yet offshore workers continue to face unacceptable hazards, including poorly maintained rigs, fatigue, and hydrocarbon spills. The MUA is steadfast in our commitment to holding government and industry accountable for improving safety, environmental protections, and conditions on the job.”
He further emphasised the need for action, adding, “The release of the Roadmap underscores the critical role the MUA has played in shaping this initiative, and now is a critical time to address several significant shortcomings. While we welcome the establishment of a Decommissioning Directorate, the roadmap falls short of the robust framework our members deserve. The lack of concrete commitments, such as industry-funded infrastructure, checks and balances such as independent verification of completed work, and strengthened worker safety protections, is concerning.”
Mayo concluded, “This moment cannot be overstated. Our public response is a clear signal to all stakeholders – government, industry, and our members – that the MUA is increasingly dedicating attention and resources commensurate with the significance of this opportunity. We call on the Federal Government to heed the expertise of the decommissioning workforce and adopt the Union’s upcoming further recommendations to the Directorate. Complacency is not an option.”
The MUA's engagement underscores the importance of ensuring offshore decommissioning is conducted to the highest standards, safeguarding both workers and the environment.
Case studies highlighted in the Offshore Energies UK Offshore Decommissioning Report 2024 have highlighted the importance of offshore engineering and preparatory work for safe and cost-effective outcomes in decommissioning projects.
OEUK cites AF Offshore Decom’s experiences with a bridge-linked flare stack, where extensive preparatory work, particularly from the platform complex, significantly reduced the time required for the heavy lift vessel (HLV) in the field. Additionally, by focusing the preparatory activities during the winter months, the team was able to optimise the use of the HLV for the summer, thereby enhancing operational efficiency.
In another case highlighted in the report, extensive preparatory works facilitated a smooth and effective removal of a major platform. Comprehensive helicopter surveys and a thorough engineering phase were undertaken, minimising unexpected issues during the main offshore removal campaign. This was followed by an HLV campaign when a crew handled the topsides preparations along with smaller modular lifts. A second HLV campaign included a large integrated modularised steel frame lift and an efficient jacket lift. The structures were then transported onwards to AF's environmental base to be dismantled and recycled onshore.
The phased execution helped to mitigate risk and allowed for detailed engineering and interface management, which was an important part of the project.
Optimising offshore operations for decommissioning projects in this way can make a substantial contribution to keeping costs down. This is critical in the Gulf of Mexico, where operators face spiralling decommissioning costs. Findings from a recent study published in Nature Energy showed that there are around 14,000 unplugged oil and gas wells in the Gulf of Mexico, with the process of plugging and decommissioning these wells estimated to cost around US$30bn.
The presence of existing offshore industries positions Australia well to enhance its decommissioning industry.
For decommissioning activities to be carried out efficiently, an experienced workforce, the right vessels available at the right time, and a culture of safety and environmental stewardship are key requirements.
Australia’s domestic workforce exhibits extensive skill and experience in the oil and gas industry. This means that a majority of them can be re-deployed and re-skilled for decommissioning projects supporting Australia’s energy transition. However, the emergence of the renewable sector makes attracting and retaining a workforce significantly challenging.
In Australia, vessels are not hosted but instead imported for heavy offshore decommissioning. While the local availability for heavy lift and specialist vessels don’t appear to be a strategic opportunity, the domestic workforce can provide crew and support for these activities.
Offshore decommissioning will mostly be concentrated in south-east and north-west Australia, with the south-east region hosting significant offshore wind generation in the future. Offshore renewables construction could increase competition for infrastructure and capability, including ports, which requires careful management and coordination.
Australia’s decommissioning industry is well-positioned, with the presence of a domestic recycling industry playing a key role in the waste management phase of offshore decommissioning. However, there are some critical knowledge gaps that need to be addressed. These include innovation on the impact of contaminants on the environment and ecosystems, possibilities to develop new recycling pathways and technologies, and more efficient cleaning and waste management processes.
Australia’s availability of innovative products and technologies creates an opportunity for global exports to other decommissioning markets. The ability to create new innovative products and services makes Australia a significant contributor to the global decommissioning market.
Gulf of Mexico leads with 26 of the 56 case studies that have been conducted by the International Association of Oil & Gas Producers (IOGP) before releasing a comprehensive benchmark on jacket decommissioning.
The benchmark has been calculated on the basis of the offshore execution cost that is proportional to the duration of offshore execution. Survey from companies such as AkerBP, bp, Chevron, Petrobras, and Repsol, to name a few, have backed the data that went into the making of the benchmark.
Starting from 2008 to 2023, the records include removed jacket weights that range from less than 250 tonnes to 20,000 tonnes, and jacket configurations from monopods to 8-legged jackets. For most cases, below 500-tonnes jackets have been removed by single lifts, while multiple lifts took less than five attempts. The removal of a single jacket usually takes up to 10 days.
The 56 jacket removals are predominantly multi-installation removals, with 40 occurrences. There were 13 cases of jacket and topside removals, while only three instances of standalone removals.
Chet Morrison Contractors, LLC (Morrison) was recently awarded the crucial pipeline decommissioning contract, which marked a pivotal step in addressing the longstanding issue of orphaned infrastructure in the Gulf of Mexico.
With particular focus on eight pipelines in the Matagorda Island Area, the contract which was issued by the Bureau of Safety and Environmental Enforcement (BSEE), will allow Morrison to conduct essential on-site pipeline decommissioning activities in the region.
Abandoned infrastructure often pose a threat to offshore safety and the environment. Decommissioning orphaned pipelines will therefore contribute to the long-term health of the Gulf ecosystem and open up areas for safer navigation and commercial activities.
“Morrison values its long-standing relationship with BSEE and appreciates their continued confidence in our team to deliver on this important decommissioning initiative,” said Chet Morrison, CEO and founder of Morrison. “BSEE recognises that Morrison is more than qualified to handle a scope of this magnitude. We will utilise our experienced people, our versatile fleet of barges and equipment, and the smart approach that we’ve become known for over the years.”
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has reached a final investment decision (FID) for the Bonga North deep-water project off Nigeria’s coast.
This subsea tie-back will connect to the Shell-operated Bonga Floating Production Storage and Offloading (FPSO) facility, where Shell holds a 55% interest.
The Bonga North project encompasses drilling and starting up 16 wells—split equally between production and water injection wells—alongside upgrades to the Bonga Main FPSO and new subsea hardware installations. The initiative aims to sustain production at the Bonga facility, with recoverable resources estimated at over 300 million barrels of oil equivalent (boe). Peak production is expected to reach 110,000 barrels of oil per day, with first oil anticipated by the decade's end.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, described the project as a significant investment contributing to stable liquids production and reinforcing Shell’s Upstream portfolio. Bonga North’s development aligns with Shell’s strategy to drive cash generation through its Integrated Gas and Upstream business into the next decade.
SNEPCo operates Bonga North in partnership with Esso Exploration and Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), on behalf of the Nigerian National Petroleum Company Limited (NNPC). Situated in OML 118, Bonga is a deep-water field with production beginning in 2005. It achieved its one-billionth barrel milestone in 2023, and the FPSO has a production capacity of 225,000 barrels of oil daily.
Bonga North’s recoverable volumes exceed 300 million boe, classified as proven and probable (2P) under the Society of Petroleum Engineers’ standards. The project is also expected to surpass Shell’s hurdle rate for its Upstream business, leveraging near-field opportunities, technical expertise, and simplified, replicable operational models.
The Bureau of Safety and Environmental Enforcement (BSEE) is a leading federal agency appointed to improve safety and ensure environmental protection relating to the offshore energy industry. BSEE's regulations for the decommissioning of oil and gas wells in the Gulf of Mexico are rooted in a combination of safety, environmental protection, and financial accountability. The regulatory framework is designed to ensure that operators properly manage the risks associated with the abandonment of wells and the removal of infrastructure. These regulations address several key aspects:
When a leading oil-producing nation like the UAE hosts a global climate summit such as COP28, the message to the world is clear: balancing climate commitments with energy realities is a complex but necessary endeavour.
The recent conference in Dubai reaffirmed the goal of limiting global warming to 1.5°C. However, with fossil fuels still providing about 80% of the world’s energy, their role in meeting global demand cannot be overlooked in the near term.
This reality, coupled with ongoing geopolitical and economic challenges, has driven energy companies to prioritise efficient methods of boosting production. Enter well intervention – a critical tool for optimising output from existing oil fields.
Jenny Feng, Supply Chain Analyst at Rystad Energy, emphasised the importance of this strategy: “…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."
According to Rystad’s research, spending on well interventions reached nearly US$58bn last year. With sustainability now a central focus, this figure is expected to rise, as the proportion of wells eligible for intervention is predicted to grow to 17% by 2027, representing approximately 260,000 wells globally.
As the world grapples with the challenge of balancing urgent climate action with a continued reliance on oil and gas, the Middle East finds itself at the forefront of this critical transition. One of the region’s key strategies is leveraging digital technologies to optimise its oil and gas operations, ensuring efficiency and sustainability.
With advancements like artificial intelligence (AI) and machine learning (ML) becoming integral to enhancing well production, the industry is undergoing a significant transformation. These cutting-edge technologies are redefining workflows, using advanced algorithms and automation to maximise output while minimising environmental impact.
This is an extract from a report by Offshore Network, which explores how the Middle East’s adoption of digital solutions is reshaping the well intervention market, highlighting a forward-thinking approach that bridges the gap between traditional energy practices and the drive for a more sustainable future. Read more on this and other reports.
Planning and preparation are underway for Australia’s largest offshore decommissioning project. Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia, has awarded Allseas the contract to dismantle up to 12 retired platforms from the Gippsland Basin in the Bass Strait.
The platforms, with a combined weight of approximately 60,000 tonnes, mark a historic milestone for offshore operations in the region.
For the first time, Pioneering Spirit will bring its revolutionary single-lift technology to Australian waters. This cutting-edge capability enables the removal of entire offshore structures – both topsides and jackets – in a single lift, allowing the massive scope of work to be completed within just a few months.
“This landmark decommissioning project represents a significant milestone for Allseas in Australia,” said Evert van Herel, General Manager of Allseas Australia. “Over the past 20 years, we’ve built a strong track record delivering subsea pipelay and construction services for major greenfield projects in these waters. It’s an honour to now bring our expertise to the first removal of platforms of this scale from Australian waters.”
The ambitious timeline includes the removal of up to 12 topsides and 11 steel jackets during a 3–4-month campaign set to begin in late 2027. Once removed, the structures will be loaded onto barges or vessels for transport to the Barry Beach Marine Terminal in Victoria, where they will be dismantled and recycled by an onshore contractor.
The engineering and project management work is being led from Perth and Melbourne, with additional support from Allseas’ offices in Delft and Kuala Lumpur.
“This historic project gives us an opportunity to showcase the capability of our single-lift technology in challenging environments like the Bass Strait,” added Evert. “We’re very much looking forward to working with Esso Australia to make this a successful project and thank them for their trust in Allseas to carry out this landmark project!”
Helix's Q7000 purpose-built DP3 semi-submersible vessel will undergo hull clearance among other maintenance activities at Namibia’s Port of Walvis Bay before it is all set to start for delivering a decommissioning contract off the coast of Brazil as agreed with Shell in 2022
The year-long contract also mandates plug and abandonment services at the Bijupira and Salema fields in Brazil’s Campos Basin.
It will take an estimated 10 days – that will also involve the removal of maring growth from the pontoons – to have the vessel prepared for operations offshore Brazil.
Helix's Q7000 vessel that was built in 2019 is equipped for riser-based subsea well intervention and decommissioning operations. With a capacity to withstand harsh environmental conditions, the unit supports production enhancement operations, well-cleanup, and field development. With a variable deck load capacity of about 3,000 metric tons besides well intervention and service fluids, Q7000 can support a crew of as many as 140 people.
The upper deck has a 600-metric-ton well intervention tower with active and passive heave compensation, and a skidding system for well intervention support equipment and tubular storage make up the large flush deck. The below deck comprises twin work-class ROV systems, bulk fluid storage, and pumping systems.
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