Latest News

• Region: Australia
• Topics: Decommissioning
• Date: May, 2022

Eni Australia is said to have committed to full decommissioning of the Woollybutt offshore oil field by NOPSEMA, after being issued one of the seven directions of compliance to adhere to the OPGGS Act.

The Woollybutt oil field, located near the northwest of Western Australia ceased production ten years ago. Since then, Eni is said to have failed to maintain this project's infrastructure, which has continued to deteriorate.

Lack of maintenance by Eni recently made headlines when twenty metres of wellhead framing that had been chained to the seabed floated to the ocean surface and was found outside of the project’s location.

This was followed by Eni's request to abandon the Woollybutt field’s remaining equipment including control umbilicals, flowlines, and jumpers. NOPSEMA has refused Eni’s request and has called for all the deteriorating property to be decommissioned and removed.

Work is due to commence this year and is expected to take two to three months and the union will keep a close eye on who is tendering for this contract. As the scale of decommissioning work is set to rise, the MUA will continue to monitor NOPSEMA’s response to the industry.

• Region: All
• Topics: Integrity
• Date: May, 2022

Welltec has formed an exclusive partnership with Isealate AS to become the largest shareholder in the innovative company which provides a patented patch-thru-patch technology.

Chief Commercial Officer at Welltec, Tommy Eikeland, commented, “Well leaks and damages are among the primary concerns raised by our customers during the intervention and workover phase. This acquisition perfectly complements our existing technology portfolio and adds a new dimension in terms of metal expandable capabilities. Once fully integrated, we will be able to set patches and Welltec Annular Barrier technology on either wireline or drill pipe, providing our customers with the ultimate re-lining and repair solutions for well integrity.”

Isealate’s downhole patches can currently be run on wireline and provide multiple benefits typically associated with straddles and larger steel patches without any compromise or trade-offs. The ultra-slim patches have a variety of applications from water-shut off and leak repair, to damaged casing or completion repair, whilst managing to maintain a near full bore ID with minimal restrictions allowing patch-thru-patch operations.

Isealate AS Founder and Board Member, Bengt Gunnarsson, commented, “The integration with Welltec will allow us to bring our unique technology to more operators and deliver it through a global partner with a proven track record. In the meantime, this enables our team to fully focus on further development of the unique patch technology

“Welltec has a truly international field service organisation and management support structure, along with unique engineering, mechanical and electronic capabilities, combined with inhouse manufacturing capacities, which made them the obvious partner choice,” Bengt added.

• Region: All
• Topics: Integrity
• Date: May, 2022

CRA Tubulars B.V., a new technology company based in the Netherlands, is now formally part of the Shell GameChanger Programme.

CRA Tubulars B.V.’s proposal was shortlisted from the submissions that were sent to the Well Technologies Call for Solutions for Storage of CO2 or H2 in Geoformations and was ultimately selected by a panel of Shell technology experts and GameChangers for funding.

As a result, CRA Tubulars B.V. has signed a collaboration agreement under which it will receive advice and funding to validate and qualify the application of its technology including Titanium lined Composite Tubulars (TCT) and Premium Hydraulic Concentric Connection (PHHC) technology for Carbon Capture and Storage (CCS) well applications. A six-month testing and certification programme has been kicked off to ensure industry standard (API) qualification as a key step towards field deployment.

CRA Tubulars uniquely uses aerospace certified materials to achieve superior high-pressure performance corrosion resistance under extreme downhole conditions. TCT is qualified for such applications as it can manage the low temperature swings.

Further benefits include light weight and optimum flow performance. An efficient use of high quality, yet widely available materials, delivers a unique and cost-effective, full well lifecycle alternative to conventional materials.

Qualification testing on the patented technology of 3.5 in TCT pipe and PHHC connection will be completed in accordance with API 5C5 Fourth Edition, Jan 2017 CAL II test requirements to 5,000 Psi, and additional Series B testing to -35 degrees C. Prototype testing has shown potential up to 18,000Psi burst and 240,000lbs tensile strength at temperatures as low as -54 degrees C.

Founder Emile Burnaby-Lautier, and Joost de Bakker, CEO of CRA Tubular, stated, “We are excited about our partnership with Shell GameChanger. We want to show that our vision to win the fight against corrosion, can actually deliver a step change in technical and economic performance in the energy sector. By repurposing superior components and materials with recorded operating performance from the different industry sectors, CRA Tubulars has delivered a corrosion resistant alternative completion tubing that is corrosion free, light weight, reusable, stronger, whilst adhering to industry dimensions.”

Veronica Simmonds, Commercial Partnerships Manager at Shell GameChanger, commented, “The Shell GameChanger programme is the ideal platform to accelerate the qualification and certification of technologies. In particular technologies that offer our organisation and the industry reliable and cost-effective innovation and contribute to the transition to an affordable and reliable low carbon energy system. And CRA tubulars B.V. with their TCT technology is part of it.”

• Region: All
• Topics: Decommissioning
• Date: May, 2022

Claxton AS, a brand within the Energy Services division of Acteon, a marine energy and infrastructure services company, has signed a collaboration agreement with Norwegian-based supplier Seabed Solutions to add value to its decommissioning projects and help operators fulfil their obligation to return subsea sites to their natural state.

According to Claxton, the partnership simplifies procurement, increases project execution efficiency and reduces costs for infrastructure owners by offering a wider range of dredging, excavation, cutting and decommissioning equipment and services through a single contract interface and by using a combined offshore crew.

Claxton and Seabed Solutions are known for extensive subsea experience and the former is said to have had an operational presence in Norway for over nine years and expanded its base in 2019 to meet industry demand. Seabed Solutions was established in 2015 by a management team with decades of experience leading the Norwegian seabed intervention market.

“As more and more oil and gas installations are getting close to the end of their economic and productive life, the demand for decommissioning services increases. This partnership means that the owners of the outdated installations can get the entire scope of decommissioning services on the same contract,” said Christian Aas, Seabed Solutions Managing Director.

Nick Marriott, Claxton General Manager, Norway, said, “Claxton is excited about the partnership, which will allow us to explore synergies to enhance our client offerings and methodologies to drive growth.”

“Offering integrated services through one contract and a single interface, and with collegial crew use, will help to increase procurement and project execution efficiency,” Nick added.

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

Helix Energy Solutions Group, Inc. has announced that it has entered into a definitive agreement to acquire 100% of the equity interests of the Alliance group of companies for US$120mn million cash at closing, plus the potential for post-closing earnout consideration.

Alliance is a Louisiana-based privately held company that provides services in support of the upstream and midstream industries in the Gulf of Mexico shelf, including offshore oil field decommissioning and reclamation, project management, engineered solutions, intervention, maintenance, repair, heavy lift and commercial diving services.

Helix said that the transaction aligns with its ‘Energy Transition’ business model, by expanding its decommissioning presence in the Gulf of Mexico shelf and advancing Helix’s ESG initiatives by responsibly supporting end-of-life requirements of oil and gas projects.

The transaction also augments Helix’s decommissioning and life-of-field maintenance service capabilities through the addition of Alliance’s comprehensive shallow water assets, including a fleet of Jones Act-compliant lift boats, offshore supply vessels, a heavy lift derrick barge and diving vessels, as well as plug and abandonment systems, coiled tubing systems and snubbing units.

The deal further positions Helix to further penetrate the North American decommissioning market, with published reports forecasting nearly US$3bn of decommissioning expenditures between 2022 and 2025, and the potential to expand into the global market. Based on the assets being acquired, the parties’ assumptions and market conditions, and anticipating Alliance's potential annual EBITDA in excess of US$30-40mn, the transaction is expected to add accretive free cash flow and diversify Helix’s asset base and revenue stream, at an attractive valuation.

According to Helix, the deal will help in preserving a strong financial position and liquidity, as Helix’s pro forma cash, liquidity and net debt would approximate US$145mn, US$186mn and US$119mn, respectively. The transaction is also expected to enhance the financial performance outlook, with expected continued improvements in free cash flow resulting in expected strong liquidity and leverage position.

Owen Kratz, Helix’s President and Chief Executive Officer said, “Based on a number of markets and regulatory drivers and our current expectations, we fully believe that the offshore oil and gas decommissioning market will grow significantly in the near term. This acquisition complements Helix’s present deepwater abandonment offerings by adding shelf and facility abandonment capabilities and significantly enhances our position as a full-field abandonment services provider, both in the Gulf of Mexico and globally. We also see possibilities to expand our opportunities within our existing late-life production business.”

Steve Williams, owner of Alliance said, “Our recent successes in acquiring and developing businesses and assets to establish Alliance as an offshore shallow water energy services company has led us to Helix, who we see as the industry standard in deepwater energy services.”

The acquisition is expected to close in mid-2022 and is subject to regulatory approvals and other customary conditions.

• Region: West Africa
• Topics: Decommissioning
• Date: May, 2022

Petrofac, one of the leading providers of services to the global energy industry, has grown its presence in Africa having been selected by Tullow Oil to provide well decommissioning services in Mauritania.

The contract, with a potential total value of more than US$60mn, involves the project management, engineering, planning and plugging and abandonment (P&A) of seven subsea wells on Tullow Oil’s Banda and Tiof fields.

Petrofac will assume responsibility for the subsea well decommissioning scope from Maersk Decom, who have been preparing the work since 2020. By mutual agreement, the parties have novated the contract to Petrofac who will take immediate responsibility for the project, with the offshore scope running from the fourth quarter of 2022 throughout first quarter of 2023.

Petrofac said it will provide all personnel, assets and equipment required for the project, including management of the ‘Island Innovator’ drilling unit and offshore support vessels.

Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business said, “The contract award is a demonstration of the international demand that exists for the skills and quality of delivery we have established in the North Sea. Since 2016 Petrofac has delivered three successful decom campaigns for Tullow Oil. We look forward to emulating this success for them in Mauritania, and across the African continent as we continue to grow our business here.”

• Region: Latin America
• Date: May, 2022

Karoon Energy Ltd has reported that its contract with Maersk Drilling for the Baúna intervention campaign has commenced, following the receipt of all permits and regulatory approvals required.

After loading supplies and equipment for the programme, the rig departed Rio de Janeiro on 8 May BRT and arrived at the PRA-2 well site in license BM-S-40 (Baúna), southern Santos Basin. The rig moored, using pre-installed mooring buoys, and the first Baúna intervention in the four-well campaign commenced on 15 May BRT.

The intervention campaign, which is aiming to add 5,000-10,000 bopd to Baúna production, comprises the installation of new electric submersible pumps in the PRA-2 and SPS-92 wells, installation of gas-lift equipment in SPS-56 and re-opening of the lower zone of the BAN-1 well.

The campaign is anticipated to take four to five months to complete. The Maersk Developer rig is then scheduled to drill two development wells on the Patola Field and, subject to the receipt of required regulatory licences, one or potentially two control wells on the Neon oil discovery.

Karoon Energy’s CEO and Managing Director, Dr Julian Fowles, commented, “The commencement of the Baúna intervention programme represents the culmination of more than 18 months of detailed planning and hard work from the Karoon teams and our contractor partners in Australia and Brazil.

“Our key focus is on delivering this campaign safely, efficiently and on schedule, in close cooperation with the operator of the drilling rig, Maersk Drilling. We will update the market on progress in the June 2022 quarterly report.”

• Region: Middle East
• Date: May, 2022

At the Offshore Well Intervention Middle East 2022 conference, representatives from BP provided a detailed case study on their successful rigless abandonment of a well in Block 61, Oman.

Aala Abbas, Wells C, I & I Engineer at BP, opened the session by explaining the background of the operation. She noted that the well was drilled back in 2016, targeting the Amin formation and appraising the northern concession of Block 61. The formation is of tight gas which required hydraulic fracturing to produce, and the well was intervened post D&C immediately where the targeted zone was perforated and break down was attempted. This, however, was unsuccessful and, after attempts were made to re-stimulate in addition to extensive testing, the decision was finally made to permanently abandon the well as part of the oil and gas ministry requirement.

“Conventionally, wells P&A jobs are performed via a drilling rig which is very efficient, has a low-risk profile, is fairly straightforward but costly,” Abbas commented. “Hence, we looked into different methodologies and benchmarked them against the rig option which was projected to take 11 days and a cost of one [given as a comparative figure].”

“The second methodology was a hybrid option where the rig and rigless would be used. It would entail killing the well via coiled tubing before setting a plug and cementing the wellbore via a rig. The P&A job was expected to take approximately 12 days of operation at a cost of 1.23. This is quite high but would save rig time.”

“The other option, and the one we selected, was P&A completely through rigless. The well would be killed via coiled tubing before the setting of the plug and perforation above it would be conducted via E-line. It would then be cemented in the wellbore via the cement unit. The total duration of this methodology was approximately 22 days, and the planned cost was 0.73 with zero rig time. There were, however, disadvantages in it being non-standard, relatively higher risk profile and it was the least experienced method.”

The rigless operation, once selected, was divided into four main stages. The first was to isolate the reservoir by pumping cement via coiled tubing covering approximately 530 metres from the well TD to above the pay zone. BP then tagged the cement to confirm its placement and quality via coiled tubing and, post tag, they displaced the well back to one SG before inflow testing the plug and pressure that up to 8,000 psi. 

The next stage included setting a copperhead bridge plug across the packer to isolate the shallowest reservoir section and then pressure tested to 7,000 psi. Initially they ran with tubing punch but this was unsuccessful and so they ran with 2-7/8” perforating guns, perforating just above the packer to allow reverse circulation later for the cement job. The injection test was successful with a circulation rate of six barrels per minute.

Continuing the presentation, Sultan Al Abri, Wells C, I & I Engineer at BP, commented, “For the third stage we had to confirm that we had sufficient circulation of cement through the perforation and so, to stimulate that, we pumped a high viscous pill which confirmed the circulation and capability to receive cement through the perforations. After that, we reversed circulated the cement from the A-annulus up the tubing while applying positive pressure on the tubing to avoid having cement free-falling from the annulus. The cement was then given time to cure before running slickline tag to confirm the cement placement and the quality of the cement which was successful. 

In the fourth and final stage, the tree was removed, and the tubing and wellhead were cut using a thermal cutter at the surface. The remaining void, from tubing to the annulus side, was pumped with cement using a cement unit with a PVC pipe. After the abandonment the barriers in place included cement across the Amin formation, 15K copperhead bridge plug across the packer depth covering the shallowest reservoir, cement in A-annulus from packer to surface, cement in B-annulus from 13 3/8” shoe to surface, and cement in 4 ½” by 5 ½” tubing from the copperhead bridge plug to the surface.

This was a non-standard operation for the company, and they therefore had some challenges. These included:
• An inability to establish circulation through tubing post tubing punch as the punch tool was not fit for purpose. To remedy that in the future they would select a perforation gun instead. 
• Longer WOC duration as the shallowest section BHST was not incorporated into the lab test. In the future the company would therefore ensure lab tests would be performed in a more representative environment and the cement recipe would be optimised. 
• Incorrect pumped cement volume due to on site pre-job recalculation using incorrect capacities. This could be avoided in the future by ensuring all changes to the programme are managed by MOC process. 
• Inability to cut the tubing due to an inadequate gas weld cutter. The lesson learned from this was to use the plasma cutter for tubing cut. 

“Despite the challenges, we delivered the abandonment job with an extra one day than planned but with a 27% less cost than initially expected. For individual service lines we had well testing delivered at about 90% of the planned cost at eight instead of ten days duration; slickline was conducted at the right cost but took an extra half day; coiled tubing was delivered at 65% the planned cost and ran for three and half days instead of five; cementing was completed at about 60% of the projected cost at approximately the same amount of time; and tree removal took the same amount of time as expected,” Al Abri concluded. 

“The only service line that we exceeded the planned cost and duration was E-Line and that is attributed to the NPTs mentioned earlier where extra runs were required.”

• Region: All
• Topics: Integrity
• Date: May, 2022

HydraWell has joined forces with READ (including subsidiaries READ Cased Hole and ANSA), a cased hole production logging, well integrity and reservoir evaluation solutions provider, to create a leading well integrity specialist with ambitions to play a prominent role in late-life oilfield activities.

Both companies have long-established histories of delivering expert well integrity services and solutions for clients around the world. The new combined company will be strategically located with offices and bases in Stavanger, Aberdeen and Houston together with a presence in Alaska, Australia, Brazil, Malaysia and Qatar. HydraWell CEO, Mark Sørheim, will now be CEO of the combined company which will have a total of 75 employees. Total revenue for the combined company is expected to reach approximately US$20.3mn in 2022.

According to HydraWell, late-life oil and gas wells worldwide have an increased requirement for well integrity monitoring, and there is a growing demand for permanent plugging and abandonment of these ageing assets. HydraWell, READ and ANSA will operate within well integrity, with READ and ANSA measuring and analysing well integrity issues with HydraWell remediating the issues identified. The combination of the companies will allow customers to benefit from seamless well integrity planning and diagnostics to barrier installation using digital tools, repeatable and reliable service delivery and effective new technologies that reduce risk and cost to operations.

Sørheim commented, “This is an exciting juncture in our corporate journeys, and we are delighted to join forces with a like-minded specialist business whose services are complementary. This allows us to create a unique offering within the well integrity market to deliver further added value to our customers through deeper knowledge, increased operating efficiencies and improved workflows across their well operations.”

Manager Director of READ Cased Hole, Bruce Melvin added, “READ Cased Hole continues to go from strength to strength and the merger adds to this by positioning our new entity as leading integrated well integrity measurement, analysis and remediation specialists. This will not only enhance READ’s presence in the abandonments market but also expedite ANSA’s digital platform attracting new client relationships. We look forward to what the future holds and building on the success of both companies.”

• Region: West Africa
• Topics: Decommissioning
• Date: May, 2022

Havfram, a Norwegian oil field equipment supplier recently announced that PC Mauritania 1 Pty Ltd, a wholly-owned subsidiary of PETRONAS, has awarded Havfram an offshore decommissioning contract.

The contract includes the provision of engineering, procurement, retrieval and disposal (EPRD) services for the abandonment and decommissioning of Subsea Facilities at Chinguetti and Banda Fields, offshore Mauritania, in March 2022.

“The PETRONAS Chinguetti and Banda EPRD project is another significant project award for Havfram in the Africa region. This is one of four projects Havfram has been awarded in Africa and the Mediterranean in the last 12 months, further enhancing our already strong track record in the region. We are proud to have been chosen by PETRONAS to meet their decommissioning needs in this field,” said Odd Strømsnes, CEO, Havfram.

Under the contract, Havfram will utilise its in-house expertise to project manage, engineer, retrieve and dispose of the remaining field infrastructure, having already executed the first phase of decommissioning operations in 2018.

“Our focus on risk mitigation and efficient execution solutions has seen us selected by Petronas once again as the perfect partner for decommissioning operations,” said Kevin Murphy, EVP Subsea and Deputy CEO, Havfram. “Havfram has consistently delivered a range of subsea projects across the continent for our clients, and we look forward to renewing our working partnership with Petronas’ Chinguetti and Banda team.”

• Region: Gulf of Mexico
• Topics: Integrity
• Date: May, 2022

Defuzzy Labs, one of the leading robotics companies specialising in unmanned systems in the UAE, collaborated with SubUAS, the US company behind the Naviator Air/Sea Drone platform, to demonstrate its latest robotics fleet management solution and shed light on the future of offshore inspections.

The demonstration, which was held at the AWS Energy Symposium in Houston, featured the Sharjah-based operator instructing a Naviator drone fleet to perform an inspection from over 11,000 kilometres away, alongside the SubUAS team based in New Jersey, USA.

The live demonstration showcased Defuzzy's latest development of its robotics fleet management solution, which uses AWS's Roborunner service to command multiple Naviator drones over the cloud. This scalable and modular solution enables Defuzzy to easily integrate robots of various makes, models, and forms into the fleet and control them. The cloud services will further help enhance remote monitoring solutions and complete accurate robotic inspections, thus improving the safety and efficiency of inspection operations.

During the demonstration, Defuzzy engineers stationed in Sharjah, UAE, displayed their ability to monitor and command multiple Naviator drones located in New Jersey, USA. The fleet management solution automatically planned a mission and assigned it to the available drone in the background, after which the Sharjah-based operator was seen monitoring the fleet's status and the live video stream of the inspection routine.

Adnane ElSoussi, CEO and Co-Founder, Defuzzy, said, “We are pleased to announce that Defuzzy’s robotics fleet management solution will be used to command a fleet of offshore robotic platforms, which will not just be limited to drones, but a combination of USVs (Unmanned Surface Vessels) and other drones. Our robotic fleet management solution eliminates many challenges associated with inspections of offshore facilities, such as adverse weather and harsh operational conditions, limited and poor communication, availability of multi-talented inspectors, difficulty to access spaces requiring special tooling and equipment, high-risk operational environment, and lastly, high operational costs.”

• Region: North Sea
• Date: May, 2022

Archer Oiltools has been awarded a two-year contract extension from Equinor Energy AS in the North Sea.

The contract covers plug and abandonment (P&A), fishing and downhole mechanical isolation equipment. Based on current activity levels, the additional backlog is estimated at US$60mn for the 24 months period which will commence in June this year.

“This is a strategically important extension for Oiltools in one of our core markets, which further strengthens our footprint and presence in the region. Our technology and strong record of execution in the North Sea makes us a supplier of choice for Equinor. We continue to support Equinor’s requirements for safe and efficient operations while providing proprietary low carbon solutions and operational efficiencies to further their energy transition goals,” said Hugo Idsøe, Vice President, Archer Oiltools.