Latest News

• Region: APAC
• Topics: Decommissioning
• Date: Jan, 2025

Malaysia is set to receive Shelf Drilling’s 1983-built Baltic jack-up rig to kickstart a multi-year plug and abandonment programme

Last upgraded in 2015, the rig can support up to 120 crewmen, and comes with the Marathon LeTourneau Super 300 design. 

It is anticipated that T7 Global has acquired the rig from the Dubai-based provider to facilitate Petronas Carigali’s P&A initiative.

As Petronas continue to invest in innovative well solutions to boost production, the operator also has plans to permanently plug more than 500 wells over the next five years.

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

A groundbreaking offshore construction vessel is being used for a Gippsland Basin decom contract, which will provide a safer and more cost-effective removal of platforms.

The Esso Australia Pty Ltd (Esso Australia), a subsidiary of ExxonMobil Australia, recently awarded Switzerland-headquartered Allseas, a leading contractor in the offshore energy market, the contract to remove up to 12 retired platforms from the Gippsland Basin in the Bass Strait, with a combined weight of approximately 60,000 tonnes. It covers up to 12 topsides and up to 11 steel jackets.

Allseas will utilise the Pioneering Spirit, which the company says is the largest, most versatile offshore construction vessel in the world, designed for the single-lift installation and removal of offshore platforms and the installation of record-weight pipelines.

The emergence of Pioneering Spirit sets new standards in offshore installation and decommissioning, according to Allseas. Capable of lifting entire platform topsides of up to 48,000 t and jackets up to 20,000 t in a single piece, it significantly reduces the amount of offshore work associated with installation and decommissioning, moving the work onshore where it is safer and more cost effective and reducing the time required to execute such contracts. The vessel set a new world record for the heaviest lift ever performed in July 2024, when it removed the last platform of the Shell Brent field in the North Sea, Brent Charlie, with topsides weighing 31,000 t.

Allseas plan to remove all the structures with Pioneering Spirit in just three to four months, starting late 2027. Once removed, the facilities will be transferred to barges or vessels for load-in to the Barry Beach Marine Terminal in Victoria for dismantling and recycling by a separate onshore contractor. Planning and engineering work is already underway.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

Fishing forms an integral part of even the plugging and abandoning process, besides its significance in drilling, completing or recompleting.

A North American company called Wellbore Fishing & Rental Tools LLC provides operators with these services, with a special emphasis on risks, costs and downtime reduction. 

With strategically located yards in Port Fourchon and Texas City, the company's position near the loading docks serve as holding locations for fishing tools, eliminating shipping time, thus in turn, working wonders in bringing down NPT. 

Serving an ever-evolving industry

Comprising of a workforce with decades-long experience in the industry, the company personnel works on the basis of continued research and development to meet the demands and challenges of an ever-evolving industry. Personnel training in the company is usually driven by exposure to new equipment and process solution. Currently, the team is focusing on adapting real time technology to monitor tool performance parameters and high performance tool properties for extreme deep-water service applications.  

• Region: Europe
• Topics: Well Intervention
• Date: Jan, 2025

The European offshore well intervention market is witnessing dynamic growth, driven by geopolitical shifts and strategic investments in the region. According to industry data, the onshore segment dominates Europe’s oil production landscape, accounting for 65% of rigs. However, the offshore sector, including the Norwegian Continental Shelf and the Mediterranean Sea, is rapidly emerging as a critical area for well intervention activities, particularly due to evolving energy demands and sanctions on Russia.

Norway leads offshore expansion

Russia remains the largest exporter of oil and natural gas in Europe. However, sanctions imposed by European and North American countries have significantly impacted the Russian oil and gas industry. These sanctions, however, present growth opportunities for Norway, Europe’s second-largest natural gas producer, to strengthen its position in the offshore well intervention market.

In 2021, natural gas demand showed recovery to pre-crisis levels and was projected to rise modestly during the forecast period. Exploration activities in offshore regions like the North Sea have surged, driven by Norway’s strategic investments. The Norwegian Petroleum Directorate’s Awards in Predefined Areas (APA) 2020 offered 30 companies ownership interests in 61 production licenses, with 34 licenses located in the North Sea. This offshore region alone holds 18% of Norway’s undiscovered oil and gas potential, highlighting the growing importance of offshore well intervention activities.

Equinor and its partners have also focused on offshore development, investing NOK 3 billion (approx. US$300mn) in the Statfjord Øst field in 2020. This project involves installing gas lift pipelines, modifications on the Statfjord C platform, and drilling new offshore wells. These interventions are designed to recover an additional 23 million barrels of oil, with production expected to start by 2024.

In recent years, Norway has prioritised sustainable offshore operations. Companies are adopting advanced upstream technologies to reduce greenhouse gas emissions, aligning with the European Union’s 2030 targets and the long-term goal of net-zero emissions by 2050. These efforts position Norway as a leader in the offshore well intervention market, especially as European countries seek reliable energy sources amidst Russian sanctions.

Conclusion

The European offshore well intervention market is poised for significant growth, with Norway leading the charge. As geopolitical factors reshape energy dynamics, offshore activities will play an essential role in ensuring reliable energy supplies while addressing environmental sustainability.

This analysis is based on the Europe Well Intervention Market report by Mordor Intelligence. For further insights into both onshore and offshore well intervention, visit, Mordor Intelligence.

• Region: West Africa
• Topics: Well Intervention
• Date: Jan, 2025

On January 15, 2025, Chevron has announced that it did not find commercial hydrocarbon reserves in its exploration well, Kapana 1X, located in Namibia’s Orange Basin within the PEL90 block.

Despite the absence of viable reserves, the company emphasised that the well provided valuable geological data, enhancing its understanding of the basin. Chevron indicated that it plans to continue exploring Namibia in the future, as the country remains a key area of interest for oil producers.

Namibia has recently become a hotbed for offshore oil discoveries, with several large-scale finds making headlines as some of the biggest of the century. However, not all exploration efforts have been successful. Last week, Shell revealed a US$400 million write-down on an offshore discovery in Namibia, deeming it commercially unviable.

In a separate development, Namibia’s national oil company announced in April that it had entered into a deal with Chevron, granting the US company an 80% operating working interest in an offshore block in the Walvis Basin, marking a new phase in Chevron’s involvement in the country’s energy sector.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

To resolve methane emissions challenges during a decommissioning programme, Interwell P&A's RockSolid turns out to be an ideal solution

The company had addressed such an issue during a Canada operation, when it was able to shut in a shallow methane gas source ejecting around 0.55 cu/m per day by installing a gas-tight barrier at 773mKB inside a competent caprock.

Effective sealing solution

The emission was initially isolated and later stopped, enabling a smooth delivery of the decommissioning programme. It was a result of a surface casing vent flow (SCVF) issue in a well, where two different gas sources were identfied following pre-intervention logging. The installation of the RockSolid barrier ensured that it was effectively sealed from the roots, allowing ongoing research to address the shallow source. This was shut off by the installed RockSolid that replaced the casing and cement, obstructing any hydrocarbon flow inside the borehole. As gas pockets above the barrier had bled off, the well decommissioning programme was carried out unhindered.

The RockSolid remains a sustainable plugging alternative. 

Click here to register for Offshore Network's Gulf of Mexico Decommissioning and Abandonment conference. 

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

One of the latest industry innovations in the subsea well intervention market is Unity's Subsea Compact Shear-Seal Blowout Preventer.

As a BOP safety head, the CSS can provide critical safety barrier above the subsea tree as part of the landing string.

A result of Unity’s original, field-proven, compact and lightweight surface design, the Subsea CSS comes with a friendly modular interface, ideal for any mode of deployment, be it rig-based, in-riser intervention, or light well intervention open water riser and riserless as well.

Redefining strength and durability in the subsea environment, the Subsea CSS can be classified as a high performing safety barrier which takes less than 10 seconds of closing time. It is 50% lighter than conventional designs, and measures 33.5″ at its widest point, requiring less deck space. Targeted at the shallow water market for standard pressure abandonment and intervention applications, the model requires on additional personnel for operation. It boasts of an universal shear and seal capability, applicable to rods, coiled tubing, wireline, slickline and e-line.

Easily adaptable to dual ram configuration, it is designed for easy access to rams and seals for redress and to replace rams for varying applications. 

Check out Offshore Network's upcoming well intervention conferences here.

• Region: Australia
• Topics: Decommissioning
• Date: Jan, 2025

The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), with its regulatory priorities, aims to address the numerous challenges surrounding offshore decommissioning in Australia. Some of the most common ones include:

Decommissioning liability after title surrender

Australia's decommissioning industry appears to be lacking a fixed plan about its end-state, thereby affecting upcoming decommissioning projects. An additional disadvantage is NOPSEMA's recently introduced 'trailing liability' which enables former titleholders to be called back to work on residual work. Taking into account the immense costs and liability involved, the risk of future decommissioning liability following title relinquishment needs to be appropriately addressed by companies planning decommissioning campaigns. 

Dearth of experienced and skilled personnel

In its recent skills review, the Centre of Decommissioning Australia (CODA) recognised a significant shortcoming of resources in a number of areas including recycling and waste management, regulatory compliance management, decommissioning planning and reporting and stakeholder management and consultation. One major challenge is that the investment in oil and gas projects and renewable energy industry prevents the existing oil and gas workforce from transitioning their skills to decommissioning. It is therefore important for the government at a state level to address these issues and ensure that project work and revenue remains in Australia.

Limited onshore facilities

The availability of limited onshore facilities and ports that are capable of dismantling, recycling, disposing and handling massive topside and substructure loads is found to be a major challenge. In addition to this, the long distances and cost of chartering vessels have a significant impact on the cost and time of decommissioning. Building ports and onshore facilities that fulfil these purposes would help address these challenges.

Lack of vessel availability 

A limited supply of vessels poses a significant challenge for decommissioning project planning. This is exacerbated by ongoing oil and gas investments as well as emerging renewable energy projects like the offshore wind project. Promoting clarity and openness around upcoming decommissioning projects would therefore help titleholders to better plan and collaborate. 

• Region: Europe
• Topics: Well Intervention
• Date: Jan, 2025

As the dust settles on 2024, Mermaid Subsea Services (UK) Ltd. reports it has achieved a historic milestone by completing plug and abandonment (P&A) services across 30 wells in the UK North Sea throughout the year using the Island Valiant vessel.

This achievement marks the highest-number of vessel-based well decommissioning operations completed in a single year within the region. Looking back at its impressive catalogue throughout 2024, one of the most notable projects for the company was the 21 P&A campaign conducted on behalf of an operator across the Northern and Central North Sea. The project was believed to be the largest vessel-based North Sea decommissioning campaign in history.

Alongside this, Mermaid also completed the first stage of a major North Sea decommissioning contract for Shell UK Ltd., with subsequent phases to follow throughout 2025 and 2026.

Scott Cormack, Regional Director for Mermaid Subsea Services (UK), said, “It has been a monumental year for Mermaid, one that has cemented our position as a major player in the North Sea subsea and P&A market […] Recent research from Offshore Energies UK found that operators need to plug 200 abandoned North Sea oil and gas wells a year to stay on top of targets.”

Following last year’s success, Mermaid will continue to grow its presence in the region further in response to the company’s growing backlog with the introduction of its own dive vessel which is scheduled to enter the market later this year, as well as agreeing to charter the Valiant vessel for another season.

“With new additions, contract wins and completed projects, 2024 was an immensely successful year for Mermaid and we look forward to building on this further in 2025 when we will be bringing on our own dive vessel to the region.”

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

In December 2024, INEOS Energy acquisitioned the Gulf of Mexico deepwater assets of CNOOC Energy Holidays USA Inc., a subsidiary of CNOOC International Ltd, marking the third major investment for INEOS within the US in the last three years.

The deal includes the acquisition of non-operated assets built around two deepwater early production assets within the Gulf (Appomattox and Stampeded fields), as well as several mature assets and supporting businesses. The additional asset increase INEOS global production rate to more than 90,000 barrels of oil equivalent per day.

Brian Gilvary, Chairman of INEOS Energy, said, “This is a major step for us into the deepwater Gulf of Mexico, which builds on our growing energy business. INEOS Energy is all about competing in the energy transition to provide reliable, affordable energy to meet world demands as the population continues to grow.”

INEOS Energy’s CEO, David Bucknall, added, “The USA is a very attractive place for INEOS Energy to invest. This is our third deal in three years following the 1.4 mtpa LNG deal with Sempra and the acquisition of Chesapeake Energy’s oil and gas assets in South Texas. Total capital spend on energy assets in the USA now exceeds US$3bn, providing a strong platform for future growth.”

• Region: North America
• Topics: Well Intervention
• Date: Jan, 2025

The Gulf of Mexico (GOM) is a critical region for offshore oil and gas production, with operators increasingly focusing on mature fields to meet energy demands sustainably.

As new field discoveries slow, industry leaders are directing resources towards maximising the efficiency and recovery of existing assets.

According to industry insights, the GOM accounts for a significant portion of global oil production from mature fields, where advanced well intervention techniques are proving instrumental in maintaining output.

With many platforms and wells in the region reaching the latter stages of their operational lives, optimising recovery has become a cost-effective and environmentally sound approach.

Unlike new developments, interventions on mature fields leverage existing infrastructure, minimising both capital expenditure and environmental footprint.

New technology

Technological advancements are at the heart of this strategy. Companies like Baker Hughes are introducing tailored solutions such as their Mature Assets Solutions programme, designed to enhance production efficiency while addressing sustainability concerns. Light well intervention technologies are also increasingly deployed in the region, enabling cost-effective maintenance and recovery improvements.

The well intervention market in the Gulf of Mexico is projected to grow steadily as operators shift their focus from exploration to maximising output from existing fields. Industry reports indicate increased spending on well interventions, with the region becoming a hub for innovation in this domain.

Challenges remain, including ageing infrastructure and tightening regulations. However, these also present opportunities for service providers and technology innovators. By addressing these issues proactively, operators in the GOM are positioning the region as a leader in sustainable offshore production.

The focus on mature fields in the GOM reflects a broader trend in the energy sector: achieving a balance between meeting current energy needs and progressing towards a more sustainable future. This approach ensures the Gulf remains a cornerstone of global offshore production while contributing to environmental and economic goals.

• Region: North America
• Topics: Decommissioning
• Date: Jan, 2025

Blake Habbit has been promoted to Danos’ new Operations Manager to lead the growth and development of the company’s decommissioning services within the Gulf of Mexico.

In his role, Habbit will oversee the business operations and customer support throughout the decommissioning phase while coordinating across Danos’ diverse entity portfolio to ensure safe, seamless and efficient management of client’s end-of-life projects.

CEO Paul Danos said, “Blake’s extensive industry knowledge and proven track record of managing customer accounts make him the perfect fit for this role. We are confident that under his leadership, our decommissioning services will expand, and we will be able to support the changing needs of our customers as they transition to end-of-life.”

Habbit has 25 years of experience within the industry covering offshore production operations, drilling and safety. He joined Danos as a Production Services Account Manager in 2029 and was named Senior Account Manager in 2023.

Danos has previously aided in a series of decommissioning projects within the Gulf of Mexico, including two P&A campaigns for major operators in 2012 and 2017, details of which can be found on its website.