Latest News

• Region: Gulf of Mexico
• Topics: Decommissioning
• Date: June, 2022

Energy services provider Danos has been awarded the opportunity to support the Promethean Decommissioning Company (PDC) and Petrofac alliance, to decommission multiple facilities in shallow water fields in the Gulf of Mexico.

CEO Paul Danos said, “Danos is honoured to join the efforts with PDC and Petrofac to provide safe and efficient operational and construction support for the alliance. We look forward to planning and executing this project with our partners and applying our 75 years of experience, safety and operational excellence in the Gulf of Mexico.”

The project, which began at the end of May, includes ten platforms, 196 wells and 32 pipeline segments in the South Pass and East Break fields of the Gulf.

This multi-year programme will allow Danos to support the PDC and Petrofac alliance and its decommissioning program with several of its service lines, including production workforce, construction, fabrication, and instrumentation and electrical.

Danos has many years of experience supporting decommissioning work through various service lines in the Gulf of Mexico as well as internationally.

“Having been appointed decommissioning operator for this project, we are delighted to have Danos join us and support the alliance we have formed with Petrofac. Together, our mission is to deliver safe, lean, integrated, best practices and technology-driven decommissioning operations which will reflect the highest ESG standards and include the minimising of GHG emissions/intensity and the environmental footprint of operations. Danos’ experience and knowledge will prove invaluable to the successful delivery of this program,” said Aditya Singh, President of Promethean Energy.

“Danos’ longstanding relationships in the Gulf of Mexico and comprehensive range of services positions them to provide the expertise needed for the programme,” a Petrofac representative said. 

• Region: North Sea
• Date: June, 2022

The Petroleum Safety Authority Norway (PSA) has given OKEA consent to use COSL Promoter for permanent plug and abandonment of wells on the Draugen field.

COSLPromoter is a semi-submersible drilling rig designed to operate in water depths up to 750 metres. This compact unit is designed for North Sea / Norwegian Sea and worldwide use in harsh environments. Station keeping is maintained by an 8-line mooring system or by dynamic position mode maintained by 6 fixed pitch, variable speed thrusters (DP3).

Draugen is a field in the southern part of the Norwegian Sea. The field has been developed with a concrete fixed facility and integrated topside, and has both platform and subsea wells. Stabilised oil is stored in tanks at the base of the facility. Two pipelines connect the facility to a floating loading-buoy. Production started in 1993.

The water depth in the area is 250 metres. Draugen was discovered in 1984, and the plan for development and production (PDO) was approved in 1988. It produces oil from two formations. The main reservoir is in sandstone of Late Jurassic age in the Rogn Formation. The western part of the field also produces from sandstone of Middle Jurassic age in the Garn Formation. The reservoirs lie at a depth of 1,600 metres and are known to be relatively homogeneous, with good reservoir quality.

• Region: North Sea
• Date: June, 2022

Tailwind Energy has successfully completed a well intervention in the Dana-operated Bittern Field, located in the North Sea.

On well PA-A2, new perforations were added to the upper reservoir and a water shut-off plug in the lower reservoir section.

This intervention has increased the oil rate from c. 1,000 boe/d to c.3,000 boe/d, marking a significant boast to production.

The news comes soon after the company reported a strong financial performance across 2021 with robust figures. In the 2021 CEO review, it was reported that actual production averaged 14,000 boe/d and all assets performed at, or over plan except for Columbus. As a result, the company recorded an increase in revenue to US$382mn relative to US$263mn in 2020. Such a strong performance has allowed the company to recycle cash back into the business and last year it invested the highest capital spend programme to date which included two wells being successfuly drilled and completed. 

• Region: All
• Date: June, 2022

Schlumberger and Subsea 7 have signed an agreement to renew Subsea Integration Alliance for a further seven years.

Subsea Integration Alliance is a worldwide non-incorporated alliance between Subsea 7 and Schlumberger’s OneSubsea subsea technologies, production and processing systems business, to jointly design, develop and deliver integrated subsea development solutions.

Over the past seven years, the alliance has successfully combined the complementary capabilities and market-leading technologies of OneSubsea and Subsea 7, and worked collaboratively with clients to design, develop and deliver integrated SPS and SURF solutions proven to optimise the cost and efficiency of deepwater developments.

John Evans, CEO of Subsea 7 commented, “The success of Subsea Integration Alliance is a result of the drive and commitment of both Subsea 7 and OneSubsea to deliver an enhanced experience and outcome for our clients. Driven by the demonstrable benefits to clients of this mode of collaborating, integrated projects are expected to remain a significant component of the subsea market. We look forward to extending our relationship with OneSubsea as we address the opportunities of the offshore energy market.”

The alliance continues to build momentum and, in recent years, has been awarded major greenfield projects in Australia, Brazil, Africa and Turkey, as well as significant tie-back work in the Gulf of Mexico and Norway.

“Subsea Integration Alliance has proven to be a tremendous success,” said Abdellah Merad, EVP, Core Services and Equipment, Schlumberger. “Having been awarded 12 integrated projects and more than 130 early engineering studies around the world, it has helped– and will continue to help – customers achieve maximum value from their subsea developments through industry-leading innovation and expertise.”

• Region: All
• Date: June, 2022

BiSN, a leading supplier of sealing solutions and technology to the global oil and gas industry, has reached a significant milestone after completing its 300th deployment, helping operators around the world to effectively solve common downhole flow issues.

The operations were carried out on six continents (Australia, The Americas, Europe, the Middle East, Africa and South Asia) and took place in a range of challenging conditions and location; onshore, offshore, high temperature or high pressure.

By providing critical production enhancement, intervention, completion, and plug and abandonment services, using its patented Wel-lok sealing technology, BiSN reduced costs, improved production, and dramatically extended the life of hundreds of wells.

By working with specially developed chemical reaction heaters to carefully melt unique bismuth-based eutectic alloys into plugs, BiSN developed its Wel-lok technology to create a bismuth plug that is not only safer, but much more reliable and easier to deploy. It makes it possible to form a gas tight (v0) seal and with a density that is 10 times higher than water it effectively displaces all wellbore fluids.

Paul Carragher, CEO of BiSN said, “As operators strive to address downhole flow issues safely, increasing production while reducing costs, we have made it our mission to help them achieve this. We have the extensive real world experience in applying this method. As a result of carrying out more than 300 deployments globally, we know how to successfully use our technology to complete operations aimed at enhancing production, completions, plug and abandonment, and intervention. These jobs represent operations carried out for many repeat customers, illustrating the value and confidence they continue to place in our work.”

To help operators tackle complex challenges downhole, BiSN draws upon its varied experience and services. These range from shutting off water production and isolating zones to setting a gas-tight plug, repairing damaged casing or tubing, and permanently sealing multiple annuli, among others.

While the company continues to provide downhole sealing solutions to new and existing customers in the US, Canada and Australia, BiSN is actively expanding in Europe and Africa and has recently opened an office in Aberdeen.

• Region: North Sea
• Topics: Decommissioning
• Date: Jun, 2022

Well decommissioning specialist Well-Safe Solutions, has officially added WilPhoenix, a semi-submersible drilling rig to its fleet.

The company stated that the WilPhoenix will now undergo improvements as part of its repurposing as a dedicated P&A asset, and will soon be known as the Well-Safe Defender. In May, Awilco Drilling had made the deal to sell it to Well-safe Solutions.

The WilPhoenix is one of Awilco Drilling's two Enhanced Pacesetter semi-submersible drilling rigs. It was built in 1982 and upgraded in 2011. WilHunter, Awilco Drilling’s other semi-submersible, is in the process of being sold for recycling.

Phil Milton, CEO at Well-Safe Solutions, said, “The addition of our second semi-submersible rig, to be known as the Well-Safe Defender, is a landmark achievement for the business.”

Built in 1983, the WilPhoenix is an established presence in the North Sea, having been extensively refurbished and upgraded in 2016. Well-Safe Solutions expect to take delivery of the rig in June 2022 and will carry out optimisation and recertification requirements for future well plug and abandonment (P&A) activity.

The rig acquisition is expected to create around 100 jobs in a variety of onshore and offshore roles, in addition to the 231 personnel already employed by Well-Safe Solutions.

Neil Ferguson, Operations Manager at Well-Safe Solutions, added, “The WilPhoenix has a strong track record and is the right candidate to undergo conversion for well P&A.”

Well-Safe Solutions is the first UK company with its own assets to provide a Tier 1 well decommissioning service focused exclusively on P&A, with the Aberdeen-headquartered company owning and operating the Well-Safe Guardian semi-submersible and Well-Safe Protector jack-up rig.

The WilPhoenix is expected to enter service with its new owners as the Well-Safe Defender in late 2022.

• Region: North Sea
• Topics: Decommissioning
• Date: Jun, 2022

Energy technology start-up Clearwell Technology has taken up a feasibility testing programme for a new tool that could cut the costs and emissions of well decommissioning projects by half, following support from Scottish Enterprise.

Bruce Cardno and Paul Ray set up Clearwell Technology to develop their thermal milling technology, Therm-X-Mill, and transform the current methods of oil and gas well decommissioning by eliminating the use of drilling rigs and their associated equipment.

SMART:Scotland grant funding of £84,000 from Scottish Enterprise helped Clearwell Technology perform a testing programme. The company is now looking ahead to the next stage of development which will involve further testing, development of a prototype tool and field trials prior to full-scale commercialisation.

Scottish Enterprise head of low carbon transition Andy McDonald said, “Industry reports highlight that the decommissioning market is growing, especially as more focus is spent on energy transition activities and less on drilling new wells.

“This creates opportunities for companies like Clearwell Technology to provide decommissioning technology that will help aid the wider global energy transition agenda and it is fantastic to see a company from Aberdeenshire take forward this innovation.

“Scottish Enterprise aims to support entrepreneurial talent to build a stronger more sustainable Scottish economy and projects like this highlight the collaborative approach to delivering net zero solutions taking place here in Scotland.”

According to a Decom Insights report from Offshore Energies UK, the decommissioning market is currently around 12% of UK offshore industry expenditure with forecasts of over £16bn due to be spent over the next decade and around 4,000 wells estimated still to be decommissioned.

In addition, the recent North Sea Transition Deal set out the sector’s decommissioning supply chain target to ensure 50% local content around projects – all creating opportunities for Scottish businesses.

Bruce Cardno, Director of Clearwell Technology, said, “As energy companies focus on transition our technology aims to make the oil and gas well decommissioning process simpler and more environmentally friendly, while also releasing resources to drive net zero projects in the industry.

“Almost half the cost of any decommissioning project is spent on the plugging and abandonment of the wells so by reducing this cost with our Therm-X-Mill tool we aim to transform the industry’s approach.

“We are ramping up our testing from our site in Aboyne as we progress towards prototype development so this is a really exciting time for us, and we are hugely thankful for the support from Scottish Enterprise to help drive our technology.”

• Region: Middle East
• Topics: Decommissioning
• Date: Jun, 2022

Norwell Engineering, a global well engineering and project management firm, has secured a multi-million dollar contract to deliver an integrated offshore decommissioning project in the UAE on behalf of operator Sinochem Corporation (Sinochem).

Norwell Engineering will develop the abandonment strategy for Sinochem’s UAQ Gas Field as well as detailed well and facilities decommissioning planning, tendering and procurement services, logistics, marine support and operational execution.

Mike Adams, General Manager of Norwell Engineering, said the company partners with client decommissioning teams to address technical, safety, environmental and legislative considerations.

He commented, “While the decommissioning sector is heating up with several well engineering firms active in the space, our experience and technical focus across the entire field provides operators with a different perspective – reducing risks and identifying efficiency savings during every phase.

“The wells are the most complex and costly element of an integrated decommissioning scope and this is what Norwell has specialised in for more than 30 years. Together, with our subsurface partners, and growing topsides decommissioning team, we are in an excellent position to support clients such as Sinochem with end-to-end project management of their integrated decommissioning scopes.”

Sinochem, is a leading, state-owned, player in the global oil exploration and production sector. The UAQ Gas Field was the first offshore gas field independently developed and built overseas by Sinochem. As part of the integrated project, Norwell will be responsible for developing the abandonment strategy, as well as detailed well and facilities decommissioning planning, tendering and procurement services, logistics, marine support and operational execution.

Norwell will then deliver dismantling of the platform equipment before moving the platform onshore, where it will be handed over to the UAE government.

• Region: North Sea
• Topics: Decommissioning
• Date: Jun, 2022

Legasea has announced the successful completion of a significant circular economy project, requiring the disassembly of 10 decommissioned Subsea Production Systems recovered from the Celtic Sea.

According to Legasea, the ‘Shore-to-Store’ service, supported by the Scottish Enterprise’s Green Jobs Fund, has reduced the carbon footprint of subsea decommissioning operations, by taking subsea equipment that is no longer required, and finding routes to refurbish, recertify, remanufacture and reuse, keeping as many components as possible in use, with a projected annual carbon saving of 10,000 tonnes CO2e.

The company said that the project is the culmination of several years of research and planning conducted by Legasea, involving engagement with a wide range of operators and service companies in the subsea sector, to develop a service which benefits the industry environmentally and economically.

Since its establishment in 2018, Legasea has also consulted with a range of government and industry stakeholders, to ensure that the service is closely aligned with decommissioning and environmental policy, and the company has been awarded a SEPA Waste Management Licence, which permits the company to accept a range of material, defined as waste, from subsea decommissioning operations.

Commenting on the project completion, Lewis Sim, Legasea Managing Director, said, “We are delighted with the progress made, with the introduction of the Shore-to-Store service to the subsea industry, and the support received from across the sector has been phenomenal. Every member of our team has contributed to this successful project, and they deserve a big thank you, as do all of the supply chain companies that helped to support the project.

“With more than 6,400 Trees installed globally, at least a quarter of which are in the North Sea; we look forward to assisting with many more decommissioning scopes, with the recovered parts supporting late-life operations in a sustainable manner,” Lewis added.

• Region: North Sea
• Date: May, 2022

Speaking in an exclusive interview with Offshore Network, David Fisher, Business Development Manager at Oilenco, highlights the latest technology his company is offering to support well intervention and abandonment operations, and looks to the future in the ever-changing oil and gas market.

Since its foundation in 2008, Oilenco has established itself as a trusted designer, engineer, and manufacturer of well intervention and downhole tooling, offering solutions and support to the global oil and gas industry. Founder and Managing Director, Warren Ackroyd, established the company in Aberdeen, UK, and the company has grown and evolved internationally, with a current workforce of 38 employees and growing.

Oilenco’s core business region, as Fisher explained, is the North Sea where they serve key oil and gas operators. While the North Sea will continue to be a major focus for the company, they have recently opened an office in Stavanger, Norway, Oilenco Norge AS, to establish themselves internationally as one of the market leaders in their field. Recent projects in Australia, West Africa and the Middle East strengthens their capabilities as a global provider.

On display at OWI EU

While their scope now spans across the globe, on the immediate horizon is the Offshore Well Intervention EU 2022 (OWI EU 2022) conference arriving in Aberdeen on 14-15 June. As event sponsor, Oilenco is looking forward to showcasing a range of cutting-edge solutions available to the market.

One such technology is their Hybrid Plug range which can be used on routine well intervention or abandonment operations. Fisher commented, “The Hybrid Plug provides a secure, high-performance well isolation barrier that can be set and retrieved on slickline and uses an existing landing nipple profile within the wellbore.”

“One of the key components of the Hybrid Plug is its sealing arrangement. Conventional lock mandrels that are nipple-set tend to have a seal stack and are run and set into a specified landing nipple. However, the Hybrid Plug uses a mechanically ‘energised’ seal providing a ‘best of both worlds’ approach; the pressure integrity assurance of a bridge plug sealing element and the simple operation of a conventional blanking plug. Essentially, it is a cross between a standard lock mandrel design and a bridge plug sealing element, providing a very robust bi-directional seal.”

“As it is a ‘one-run’ solution, it brings significant time savings to the operator generating cost efficiencies, increasing safety, and reducing risk.”

In one case study demonstrating the value of this product, a North Sea operator was conducting a programme of plug and abandonment activity over several subsea wells using a mobile offshore drilling unit (MODU). Oilenco, to support the operation, provided a package of downhole equipment including the Annulus Bore Hybrid Plug package. During routine operations, the operator experienced difficulties establishing a satisfactory pressure test against a bridge plug that had been set in the annulus tubing. As the tubing hanger featured a landing nipple within the annulus bore, Oilenco’s Hybrid Plug could be set in the hanger profile.

The plug was successfully set, and pressure tested by the onboard slickline crew allowing this phase of the programme to be completed on schedule. It was noted that the hybrid plug solution was dependable, easy to operate, saved time, and broadened the capability of the regular offshore crew.

Another technology which the company is looking to showcase at OWI EU is the Pressure Wave Valve, an open-on-demand, intervention-free equalising device that can be attached to lock mandrels or bridge plugs and operates only when it senses a specified ‘wave’ of applied pressure.

Fisher remarked, “If you set a plugging device in the wellbore, you would have to intervene on the well to equalise it before you can pull it out of the well. This means you have to rig up wireline on the well which is an extra run in the hole causing extra risk and extra cost. However, if you have the pressure wave valve installed, it means when you want to equalise, you simply cycle pressure starting from a low-pressure, increasing to an upper pressure, and returning to a low pressure again repeatedly over 6 to 12 cycles. After a predetermined number of cycles, the valve will open.”

The Pressure Wave Valve is particularly useful in P&L/P&A operations and completion workover operations. In one instance, when an abandonment service provider was seeking timesaving opportunities to improve efficiencies during abandonment tubing recovery, they sought the help of Oilenco.

While similar solutions have been in use for several years, Oilenco’s Pressure Wave Valve incorporates significant improvements to increase the operational reliability of the device, including enhancing debris management. In the abandonment project, Oilenco were able to configure the Pressure Wave Valve for the client within their desired operating parameters. The Pressure Wave Valve was pressure cycled open, allowing the tubing to be pulled ‘dry’ without the need for further wireline intervention.

The operation of the valve is non-time dependent. Activation cycles can be carried out within minutes of each other or several months or even years later, with no specific setups required, and the operating parameters of the Pressure Wave Valve are not affected by changes in the wellbore pressures below.

A full range of support

The Hybrid Plug technology and Pressure Wave Valve are key products for the company, but as Fisher was keen to emphasise, they are just the tip of the iceberg.

“We have a wide range of products and solutions that can be tailored towards a customer’s requirements. At OWI EU, we will be discussing different solutions that are relatable to routine well intervention operations and abandonment, such as our scale remedial package, safety valve remedial package, sleeve solutions and much more.”

Oilenco is more than just a high-quality product supplier. They offer a range of services including product training, so customers are fully emersed in the Oilenco solution and full operability of the product.

Fisher noted, “If a client wants to run the equipment themselves rather than receiving onsite support from an Oilenco engineer, we provide training either in our workshop or through training videos (if overseas), as well as providing technical manuals and documents to support our solutions. If attending a training course in person, the delegate is issued with a certificate of competence at the end.”

Ready for the rebound

The pandemic created challenging times for all industries, with those operating within the oil and gas industries forced to contend with uncertain prices, lockdown regulations and employee safety. While we are not completely on stable ground yet, the early recovery signs look positive for the oil and gas sector.

In relation to his company, Fisher remarked, “2018 and 2019 were strong years for us with consistent growth throughout both. 2019 was our best performing year with well intervention and abandonment activity in the North Sea. Covid presented many challenges, but we were here to help our clients through these challenging times, continuing to provide essential support, collaborating with their teams to meet supply requirements. As a result, not only were we fortunate enough to retain our headcount and keep the years of knowledge and experience we have within the company, but we also invested in our facility to ensure that post Covid, we continue to design and manufacture innovative solutions, and provide the high-quality products and services our clients have come to expect from us.”

“Coming out of Covid, certainly from a market perspective, a lot of the projects which were shelved or delayed are starting to resurface. Not only with the current oil price, but partly due to the current geopolitical situation, demand is growing and globally, we are seeing operators investing in production either in existing wells to help increase production or investing in exploration and new well discovery.”

“That being said, well abandonment is still very much on the agenda for many operators, and I am sure it will be here for the next 20-30 years. As Oilenco’s solutions are transferrable between intervention and abandonment, we look forward to continuously supporting our clients globally” Fisher commented.

In concluding, Fisher stated, “Overall, from a company side, it is good to be in a post-Covid recovery space. Being back in face-to-face meetings with clients, being involved in conferences such as OWI EU, seeing and hearing what industry and operators are planning. Oilenco can do everything from initial design to manufacturing, testing, inspection, and training, as well as providing access to a large rental fleet for immediate release. Our team have a breadth of experience that runs right through from concept to completion, it is what makes us a strong company and we are looking forward to showcasing our capabilities.”

Find out more about Oilenco at their website here.

• Region: North Sea
• Topics: Decommissioning
• Date: May, 2022

Deep geothermal delivery specialist CeraPhi Energy has been awarded the first of its kind geothermal study to undertake the repurposing of offshore oil and gas wells using its proprietary advanced closed-loop system

The study will cover the initial phase of a staged process to determine how retrofitted wells can reduce the carbon footprint of an operating platform.

The project is being led by the CeraPhi subsurface engineering team in collaboration with topside engineering services company Petrofac. The study will use EnQuest’s Magnus Platform as the base case.

The Magnus Platform, formally operated by BP, is one of the UK's largest operating facilities and sits north of the Shetland Islands. Magnus is a fully integrated drilling and production facility with a design capacity of 85,400 bpd of crude oil, 110 mmscfd of gas export and a maximum of 240,000 bpd of produced water.

The study will incorporate the use of CeraPhi's proprietary advanced closed-loop technology, CeraPhiWell, which is designed to fit into old wells to extract heat from deep underground by a downhole heat exchanger. Depending on the operating temperatures established in the study the heat produced could be used as direct power and/or heating or cooling for utilities and other services reducing the overall carbon emissions of the facility.

Karl Farrow, CeraPhi, Founder and CEO, said, “This award is a statement to how the oil and gas industry is transitioning in the decarbonisation of the oil and gas extraction process.”

“If we can use old non-productive wells to produce clean baseload energy, why can’t we make those same wells produce carbon-free energy when they are drilled, reducing the carbon footprint during the oil and gas extraction process and ensuring the maximum use of these assets through a complete energy transition over decades,” Karl furthered.

Craig Nicol, Project Manager, NZTC, said, “We are delighted to be supporting CeraPhi with this ground-breaking project that if proven could become a serious contributor to the renewable energy mix. The industry is facing a significant challenge to decommissioning wells that have come to the end of their production, this novel approach has the potential to extend their life whilst delivering on our net-zero targets.”

Jonathan Carpenter, Vice-President, Petrofac New Energy Services, said, “Our engineering specialists are looking forward to working with CeraPhi on this pioneering study, which has the potential to unlock a completely new way of generating renewable power using existing oil and gas infrastructure. It could be a game-changer in our efforts to decarbonise the oil and gas production process and has wider applicability for clean baseload power as well.”

CeraPhi Energy was founded by a team of oil and gas experts just over 18 months ago, and is driving deep geothermal projects using its proprietary closed-loop technology across the world, with a total of nearly 1.5GW of heat, cooling and power projects under development and more than 5 GW under appraisal.

• Region: North Sea
• Topics: Decommissioning
• Date: May, 2022

Allseas’ Pioneering Spirit has delivered the Gyda topsides to the Aker Solutions yard in Stord, Norway, for disposal.

Gyda is a field in the southern part of the Norwegian sector in the North Sea, between the Ula and Ekofisk fields. The field was developed with a combined drilling, accommodation and processing facility supported by a steel jacket standing in 66 m water depth. The platform started producing in 1990, with a decommissioning plan submitted in 2016.

After removing the 18,400 tonne former drilling and production facility from the southern North Sea, Pioneering Spirit arrived in Norway on 24 May.

The latest delivery means that, since March 2022, Allseas has lifted more than 65,000 tonnes of North Sea facilities, an achievement made possible by their motion compensation and single-lift systems.

2022 is now on schedule to be a record year for the company with dozens of offshore lifts, ranging from light bridges to entire jackets and topsides, to be undertaken. They include the massive Gyda jacket, which Allseas is booked to remove later this summer.