A recent report by Macquarie University’s Centre for Energy and Natural Resources Innovation highlights a pressing issue regarding how the structural integrity and failure risks that come with offshore wells that are suspended, plugged or abandoned tend to be severely underestimated.
Wells that are not appropriately abandoned can pose a serious threat to the health of neighboring countries and the environment. Inadequate plugging can also result in excessive emission of methane, contributing to climate change. Moreover, leaks and operational issues can make them a significant safety hazard.
The report highlighted six recommended best practices and regulatory reforms that would be useful for handling plugged and abandoned oil and gas wells. Upon its launch, professor of Energy and Resources Law at Macquarie and writer of the report, Tina Soliman-Hunter, in collaboration with the members of the Maritime Union of Australia (MUA) urged the need to strengthen the regulatory framework for end-of-life offshore oil and gas assets.
CODA's forecast emphasised that around 51% of Australia's on- and offshore decommissioning liability will occur before 2030, with 23% occuring between 2031 and 2040. This liability considers the removal of offshore material, most of which comprises steel and concrete. The removal of a majority of offshore infrastructure material would depend on NOPSEMA requirements.
According to an article by Petroleum Australia, deputy leader of the Victorian Greens and Member of the Victorian Legislative Council, Sarah Mansfield stated that nearly 150,000 tonnes of methane were being emmitted by just a handful of surveyed sites each year. She also initiated the inquiry into abandoned and plugged wells, given Victoria's gradual transition towards renewables.
A United States-based oilfield technology company called Deep Well Services stepped into the United Arab Emirates with its acquisition by Enersol, a joint venture comprising ADNOC Drilling Company and Alpha Dhabi Holding.
DWS, through Enersol, will drive the development of the UAE’s conventional and unconventional energy resources. Its contribution, alongside other Enersol companies, will add the technological support necessary to deliver ADNOC Drilling’s US$1.7bn worth of contract that involves leveraging 144 unconventional wells.
Established in 2008, DWS is known for its advanced technology services within the energy sector. Its patented Hydraulic Completion Units (HCU) are designed for high-pressure, long lateral, and multi-well completion operations, enabled by its data analytics software, BoreSite. The HCUs are also known for tackling workover of laterals, multi-well pads, high-pressure operations, and complex fishing programmes.
The company's other patented offering is the data acquisition system (DAS), BoreSite, which can allow operators to attain production optimisation by leveraging vast data sets into actionable insights for them. Its live feed reflects operations condition in real-time, which can be monitored and gauged remotely to make prompt corrections if required.
DWS' blowout preventers that are manufactured in the US with an API 16A & 6A certification are available in 10k and 15k pressure ratings. These, along with its range of accumulators, assures reliable well control and traceability for wellbore intervention activities.
The blowout preventers feature:
The company's pressure management services offer a compact and mobile 5000 psi hot tap drill to release trapped pressure by exercising caution and following all safety protocols. It is equipped with the necessary tools from casing valves to drill pipes for operators to get their production back online.
The company also covers training and development, offering globally accredited programmes with a special focus on operational safety and efficiency. It also assists in automating flowback operations via a joint venture called AutoSep Technologies. Besides its vast experience across multiple basins in North America, DWS has served more than 70 E&P companies that include both small-private operators and large-cap national energy companies.
Enersol has acquired a 95% stake in DWS at approximately US$223mn, including performance-based payments, subject to necessary regulatory approvals and other customary conditions precedent. The joint venture reflects ADNOC Group's readiness to adopt advanced oilfield technologies to maintain the Middle East's relevance in today's oil and gas industry. DWS has been the venture's fourth acquisition in 2024, following agreements to take over a downhole visual analytics company called EV; acquire 51% interests in NTS Amega, a manufacturer of advanced precision equipment and solutions provider for the energy sector, and a 67% stake in US-based Gordon Technologies that offer measurement while drilling services.
These acquisition strategies aim to build a next-generation technology portfolio with the scope to expand its presence in a previously untapped yet dynamic market.
To know more about the global well intervention scene click here.
The UK’s North Sea Transitions Authority (NSTA) has highlighted the role of new technologies in making P&A operations more efficient and cost-effective, and the potential of the UKCS as a test bed for pioneering P&A technologies which could be rolled out in other basins, such as the Gulf of America.
Nowhere is the need for new technologies to improve operations more acute than the Gulf of America, given that around 2,300 non-producing wells are scheduled for plugging and abandonment by this year, with decommissioning costs forecast at between US$40-US$50bn and environmental compliance expenses continuing to grow.
In the NSTA Technology Survey and Insights 2024, which raises awareness of solutions and approaches operators are using in the UKCS, the NSTA highlights that Well P&A, the most expensive part of the decommissioning process, is a field of active innovation, driven by both vendors and operators and including through-tubing logging, barrier placement, and downhole wireless sensing.
It highlights that there has been progress in introducing novel barrier materials and deployment techniques, and tools for removing control lines from downhole gauges. It notes that modular workover rigs for platforms and light well intervention vessels for subsea abandonments can lower P&A costs when compared to the use of standard rigs.
In the area of well inspection and cement condition, there are several emerging technologies including multi string logging for barrier verification and assessing cement quality behind the production casing.
There are several examples of conductor cutting techniques reported in the survey, with one operator confirming deployment of a combined hydraulic cutting tool with a pinning tool to allow combined cutting and pinning operations.
In the area of barrier placement and verification, operators are using deployable technologies such as through tubing abandonment, ongoing field trialling of non-alloy barriers, fusion-based alloy plugs, and suspended well abandonment tools for rigless abandonment using lower cost vessels. One operator plans to use self-healing cement to incorporate downhole gauge cables which prevent effective plug setting. Emerging technology is being progressed through trials of novel abandonment techniques.
Operators are considering light well intervention vessels for subsea open-water abandonments and subsea shut-off devices for open-water tubing retrieval. Emerging technology includes novel approaches for breaking the cement bonds on casing strings, with the swarf recovery unit and a casing recovery system being new developments.
The survey also highlights the use of innovative solutions for improving well access for interventions, low-cost platform workover rigs/modular drilling rig systems, rigs specifically configured for well P&A, and riserless P&A systems. The latest innovations include an inside casing status visualisation technology, subsea vessel based fishing tools and a casing expander tool.
Brunei Shell Petroleum (BSP) has awarded Serikandi Hilong Sdn Bhd, a joint venture between Serikandi Oilfield Services (Serikandi) and Hilong Marine Engineering (Hilong), a significant contract for decommissioning services offshore Brunei.
In a LinkedIn article published by the consortium, the contract is for the Engineering, Preparation, Removal and Disposal (ERRD) of redundant structures. Serikandi says the project “prioritises resource reclamation, ecosystem revitalisation, and economic growth aligning with global sustainability goals.”
Serikandi states the that by leveraging its local expertise with Hilong’s technology proficiency, the collaboration will deliver safe, efficient and environmentally responsible decommissioning services.
Revi Bhaskaran, CEO of Serikandi Group, said, “This milestone reflects our commitment to environmental preservation and operational excellence. Collaborating with Hilong enables us to expand our capabilities while supporting regional decommissioning expertise.”
Jeffery Gu, Executive Deputy President of Hilong Group, commented, “We are honoured to contribute to Brunei’s first major decommissioning project. Together with Serikandi, we will ensure successful delivery while upholding the highest safety and environmental standards.”
Following 2024's extensive eight-well production drilling campaign in the Dussafu Marin permit offshore Gabon, operator BW Energy and partner Panoro Energy have managed to hit their production targets of 40,000 barrels of oil per day (bopd) in November 2024, and has remained consistent since.
This was made possible by a robust workover and electrical submersible pump replacement programme with the help of Borr Drilling's Norve jack-up rig. An effective artificial lifet method, ESPs help pump production fluids from low pressure situations. It is easy to maintain, and is considered a cost effective alternative to vertical turbine, split case and positive displacement pumps.
At approximately 37,153 bopd in the fourth quarter of 2024, the site crossed a milestone as it was the highest quarterly rate achieved since 2018, when the block first started producing.
The current production rate might jump by another 10%, given the scope for the FPSO nameplate capacity to reach beyond 40,000 bopd.
After the 2024 production campaign concluded in October, with the installation of a conventional electrical submersible pump (ESP) system for the DHIBM-7H well as it was brought online, the rest of the seven Hibiscus / Ruche production wells also underwent a workover and ESP replacement programme in January this year.
According to Panoro Energy's Chief Executive Officer, John Hamilton, the Dussafu drilling campaign was expanded to eight wells in order to accomodate first track development of the final two discoveries made in May 2024.
“Our current focus is on fully transitioning all the new wells to conventional ESP systems and restoring production at the three shut-in wells, after which we will drill the exciting Bourdon prospect in line with our infrastructure lead exploration and appraisal strategy aimed at unlocking the substantial organic upside that exists on the block,” said Hamilton, while speaking on the drilling campaign.
As part of its 2025-26 programme in Gabon, Borr Jack-Up XIV Inc will be deployed by Vaalco Energy for the drilling of multiple development wells and appraisal/exploration wells.
"We are excited about the major projects planned for 2025 that are expected to deliver a step-change in organic growth across our portfolio in the coming years. In Gabon, we continue to work with our joint owners at Etame on our shared goal of executing another successful drilling campaign designed to enhance production and add reserves. We have signed a contract with Borr that we believe allows us the flexibility to optimise our drilling and workover plans offshore Gabon.
“We anticipate the programme to begin in mid-2025 with the sequencing and exact number of wells yet to be finalised. We are planning on multiple wells in the Etame field, multiple wells at our SEENT platform and a redrill and several workovers in the Ebouri field to access production and reserves that were previously shut in and removed from proved reserves due to H2S. Over the past three years, we have delivered on our focused strategy and believe we will continue to do so with the organic growth programmes across our diversified portfolio over the coming years,” said George Maxwell, the Chief Executive Officer of Vaalco Energy.
To know more about Africa's well intervention scene, click here.
Global law firm Clifford Chance has provided its feedback on Australia’s recently-published roadmap for decommissioning, calling the blueprint a welcome development but one that needs "tangible" support to ensure success.
In its report – The Road to Decommissioning: Establishing a Global Decommissioning Hub in Australia – it charts the steps Australia plans to make following the release of the government’s long-awaited Offshore Resources Decommissioning Roadmap. In its closing remarks on where to next for the industry, Clifford Chance highlights some of the many opportunities –and challenges –ahead.
"There is significant potential for growth in the Australian decommissioning industry through involvement in upskilling employees, re-purposing existing ports and building facilities that will improve the efficiency of recycling decommissioned materials," it states. "The government's commitment to ensuring Australia is equipped to grow the decommissioning industry is a welcome development, which needs to be matched with tangible actions."
Testimony to Australia's continuing commitment to energy transition, the main objective of the roadmap is to develop a world leading decommissioning hub in Australia. This proposed hub will service global demands, seizing the opportunity to capitalise on the estimated US$60bn spend on decommissioning offshore facilities over the next 30 to 50 years. Among the growth opportunities highlighted by Clifford Chance are prospects for international collaboration. It notes that Australia lacks adequate vessels for engaging in heavy offshore decommissioning and there is also an opportunity for stakeholders to collaborate with other global markets to import machinery. Port modification is also seen as another area of opportunity. No existing Australian port researched by CODA and KPMG has all the required attributes to handle offshore decommissioning, Clifford Chance noted in its report. This means existing ports will need to be modified to host decommissioning.
But ultimately, this is only the beginning of the journey, it adds. "It is clear that the Australian government, and its state counterparts (who must come along this journey), are still in the information-gathering phase of developing the industry, as there has been a recent request for tender by the Department of Industry Science and Resources for technical advice relating to decommissioning.
"It is a long road ahead, but the areas of development highlighted by the government should act as a checklist for interested parties in ensuring that Australia is at the forefront of the decommissioning industry.
"The roadmap is a welcome and significant stepping stone in Australia’s energy transition journey, and in developing and fostering stakeholder engagement on Australia's ambitions to become a global leader in the offshore decommissioning sector. Australia's next step is eagerly awaited."
The end of 2024 saw the Australian Government’s Department of Industry, Science and Resources release ‘Australia’s Offshore Resources Decommissioning Roadmap’, summarising the Government’s plan to create a sustainable domestic decommissioning industry.
In the Minister’s Foreword, Madeleine King, Minister for Resources and Minister for Northern Australia, stated, “An Australian decommissioning industry can be part of our economic transformation as we move to net zero. It can support new jobs for our skilled offshore workforce and attract new investment for Australian businesses. It can also grow domestic industrial capabilities while supporting the circular economy. This industry will play a key role in the continued protection of our marine environment by ensuring Australia continues to meet the robust environmental standards under Australian and international law.
“The foundations of an Australian decommissioning industry have been laid. We have the skills and expertise to underpin a world-class decommissioning industry, backed by strong regulatory settings.”
The roadmap outlines the steps the Australian Government will need to take to coordinate and guide policies while setting clear regulatory expectations in order to seize the estimated AUD$60bn in economic opportunity lying in wait.
To implement the roadmap, a dedicate Offshore Decommissioning Directorate will be established within the Department and will work with industry, unions, state and territory governments, First Nations groups, international organisations and local communities to help build an Australian decommissioning industry. The Directorate will focus on the most pressing issues identified by stakeholders and also work across governmental bodies to necessary policies in place to maximise the contribution of decommissioning to the Australia economy.
In line with the roadmap, the Australian Government will implement the following actions to support the development of the regions’ decommissioning industry:
More information, as well as the full roadmap, can be found on the Government’s website.
To secure dedicated operations that include routine subsea well interventions or abandonments in the United States Gulf of Mexico over the next five years, a deepwater consortium from the region, HWCG LLC, has entered an agreement with Trendsetter Engineering to upgrade an existing 6-3/8 inch, 15k Trident Open Water Intervention Riser System (OWIRS).
Once upgraded, possibly by the first half of the year, the system will become well equipped for operations in water depths up to 10,000 ft, improving barrier functionality, leaving MUX controls redundant. It will also convert the Trident LRP into a compact, lightweight 15k capping stack.
Previously, HWCG posessed a 20k valve-based capping stack for addressing blowout incidents. It was supported by a 7-inch gate valve designed, qualified and manufactured by Advanced Technology Valve. It came with a rating of 20,000-psi and 350°F. It helped address challenging technical issues within the deepwater environment by improving a well area that was open to flow and also enhanced riser load capability. According to Craig T Castille, the Managing Director of HWCG, the development helped 'improve our full cycle response mission', as part of the consortium's commitment to 'providing a Rapid Response Solution for well containment which minimises potentially severe environmental and economic impacts to the Gulf of Mexico and its stake holders'.
The HWCG came into existence following the unfortunate incident of Deepwater Horizon, bringing together the offshore industry for the greater cause of setting up a prompt and comprehensive response team to address subsea blowout before it leaves an irreplaceable damage to people, property and environment. It's multiple initiatives include a robust Mutual Aid programme, strategic partnerships with vendors and industry experts such as Helix Energy Solutions Group and Trendsetter, to name a few, and conducting crisis exercises and thoughtfully curated drills.
“Our approach to deepwater well containment has always centered on consulting with the industry’s foremost experts while leveraging the best available technology. Our annual drill showcases the vast level of collaboration inherent in our response efforts, which becomes even more critical at full scale,” said former Managing Director of the consortium, David Coatney.
The consortium considers the upgraded system by Trendsetter state-of-the-art, which can also be deployed in the event of a subsea blowout, ruling out the necessity of several critical response modes such as well capping, flowback, well kill, and well intervention. It is known for its cost reduction and efficient well intervention capabilities.
HWCG's Technical Director, Mitch Guinn, and Project Manager, Erik Bristol, has worked alongside Trendsetter to tailor the upgraded system for routine operations and source control response, ensuring seamless integration with the venture's existing capping stacks. “HWCG is committed to providing its members with access to superb technology from extremely capable service providers. The Trident OWIRS system and our agreement with Trendsetter are emblematic of HWCG’s strategy to utilise equipment which is routinely operated in the US GoM. This strategy reduces operational risks during a response by improving worker confidence through repetition,” said Castille.
To know more about the global well intervention scene, click here.
Earlier this month Aker BP took over the ownership of the Oda field, located in the Ula area in the southern Norwegian North Sea, from Sval Energi.
Talar Arif, Director of the Ula area, stated, “This is a good example of the excellent cooperation between the license partners in the Ula area. We have a common goal of finding solutions that maximise value creation both in operational and decommissioning phases.
“By transferring the operatorship to Akep BP, Oda will become an integrated part of the optimisation of late-phase operations, as well as the planning and execution of the decommissioning and removal of infrastructure in the Ula area. This will provide both technical and economic synergies in the operational and decommissioning phases.”
Oda is located 14km east of Ula. The field contains two production wells and one injection well tied to Ula.
To tackle field development work in the US Gulf of Mexico, bp has onboarded C-Innovation (C-I) to deliver a significant contract that also covers inspection, maintenance, and repair (IMR) services.
The contract gives bp access to C-I's vast fleet of specialised subsea and supply vessels, besides the provision of its special light construction vessels, C-Constructor and MV Holiday. Each of these vessels come equipped with 150 MT subsea cranes and two Schilling UHD work class remotely operated vehicles (ROVs).
These two dedicated IMR construction vessels will be deployed for project management, engineering, equipment, logistics, and port services, alongside aiding construction, inspection, survey and decommissioning projects. “C-I will act as the contracting lead from front end engineering to offshore execution," said Ryan Combs, C-I’s bp Programme Manager.
The company is proud of its offshore service packages that are customised to suit individual client needs. Delighted on acquiring this three-year contract that has an additional two one-year extensions scopes as well, Combs said, "This multi-year contract in the Gulf of Mexico secures the C-Constructor and Holiday to support a diverse array of subsea activities ... A crucial factor in winning this award is C-I’s access and integration of the unmatched resources available within the Edison Chouest Offshore (ECO) family of companies. This new award is the continuation of a well-established relationship with bp and demonstrates our ability to deliver on our commitments and continuously improve our services year after year.”
C-I has been present in the US Gulf of Mexico since 2017, where its vessels have completed more than 60 riserless light well intervention (RLWI) projects in the Gulf of Mexico, especially in the deepwaters.
"One thing that sets us aside I believe is our ability to control our own destiny and to take on the contract as a whole," said the company's Vice President, David Sheetz.
C-I's turnkey RLWI services are diverse enough for the most part of the well intervention system, including provision of the vessel, ROVs, subsea intervention system, pumping system, coiled tubing, nitrogen and stimulation fluids. The company is also known to have remediated multiple hydrates in the Gulf of Mexico.
The bp-operated Mad Dog field, which is known for its exceptional production count, had also seen the deployment of C-I's IMR ROV vessel, MV Dove, which helped mitigate several risks involved in the project. Some of these included armoring with Lexan polycarbonate, designing of new manipulator mounting subframes so that the reach of the manipulators can be extended by 12 inches, and the installation of enhanced manipulator control systems.
"C-I was engaged by bp early in the project lifecycle to provide input into the design of the subsea hardware and installation capabilities of the ROV, which would face limited access to the installation location beneath the facility. The C-I project team engaged with the ROV operations groups, offshore managers and tooling group in order to evaluate the risks involved with the execution of the project and ultimately secured a successful outcome,” said Combs.
To know more about the global well intervention scene, click here.
Seatrium Ltd. has announced the signing of a MoU with BP Exploration & Production (bp) in preparation for the Tiber Floating Production Unit (FPU) in the US Gulf of Mexico.
Marking the second project for the companies, Seatrium will provide services to carry out the engineering, procurement, construction and commissioning (EPCC) of a FPU designed to support the development of bp’s deepwater assets in the Gulf. The Tiber FPU will be equipped with advanced technologies to enhance operational efficiency and safety.
The Tiber discovery is located approximately 300 miles southwest of New Orleans in the Keathley Canyon.
Seatrium and bp will jointly define the initial works and EPPC scope under the MoU. The contract is subject to the final investment decision by bp which is anticipated for later in the year. The new agreement builds on the existing partnership between the two companies on the Kaskida FPU, which reached final investment decision in 2024.
Reservoir Group, a provider of innovative well intervention services, has successfully deployed its tubing cutting tooling in a variety of sizes and applications for both onshore and offshore environments.
This service, which supports a range of vertical and high deviation wells, is designed to reduce operational costs and bring production back online quickly. The cutting-edge technology, including hydraulic anchor tools, is deployed through coiled tubing, rig drill pipe, and snubbing unit drill pipe.
The diverse range of deployment methods allows Reservoir Group to efficiently service wells in various conditions. In a recent case history involving 11 wells, the company achieved a 100% success rate in tubing cutting operations.
A spokesperson from reservoir Group said, “Our team of technical experts combined with our proprietary products and commitment to customer care have been pivotal in delivering safe, high-quality, and cost-effective solutions.”
Page 5 of 83
