Specialist well-decommissioning services provider Well-Safe Solutions has announced the completion of its third investment round, raising £50 million for the company.
Well-Safe Solutions said it will use the funds for the purchase of its third rig and to broaden the capabilities it offers to clients around the world. The funding round was led by MW&L Capital Partners, a London-based principal investment and financial advisory firm, with participation from a consortium of new and existing investors.
The latest investment brings the total capital raised by the company to over UK£150mn.
Phil Milton, Chief Executive Officer of Well-Safe Solutions, said, “This further investment demonstrates our strong investor support, enabling ongoing growth here in the UK as well as delivering the next stage of Well-Safe’s international growth.”
“The capital raised in previous investment rounds has been instrumental in enabling the company to put in place a world-class portfolio of bespoke well plug and abandonment (P&A) assets, backed by expert onshore and offshore teams. These investments are now bearing fruit thanks to recent contract wins and workscopes throughout the North Sea for our rigs and well engineering teams.”
“As we continue to build upon Well-Safe’s operational record, we are looking forward to exporting this model to new markets, which have expressed an interest in our collaborative, multi-well, multi-operator approach to well decommissioning,” Phil added.
Well-Safe was recently awarded its first contract with Ithaca Energy for the Well-Safe Protector jack up rig, which will be used to decommission several wells located in the Southern North Sea. The business also announced the acquisition of the ex-Awilco Drilling WilPhoenix semi-submersible rig, which is to be renamed the Well-Safe Defender.
The Aberdeen-based company said that it is building on this positive momentum, with over 100 new employees joining the company in the past 12 months.
Alasdair Locke, Chairman and majority Shareholder of Well-Safe Solutions, said, “This financing allows a step-change in the capabilities of Well-Safe Solutions, enabling us to be competitive on a global basis. I’m grateful for the support from existing and new investors.”
Julian Metherell, a founding partner of MW&L Capital Partners, added: “We are delighted to continue to partner with Well-Safe to build a world-class decommissioning business.”
EXCEED has announced the award of a milestone, vessel-based well plugging and abandonment campaign to be carried out in partnership with Mermaid Subsea Services UK (Mermaid) on behalf of four operators.
The result of a tranche of initial bids from the strategic partnership builds upon EXCEED’s 130+ well abandonment track record and is the company’s largest vessel-based well P&A campaign to date, whilst representing Mermaid’s entry into the North Sea marketplace.
Due to commence Q3, the multi-operator vessel-based campaign is thought to be one of the largest campaigns of its type to be undertaken on the UKCS for at least a decade, and currently comprises the decommissioning of ten E&A wells across Northern, Central and Southern areas.
Based on the campaign approach, which has been highlighted as an important lever in the cost reduction of well P&A, the potential for this to become a multi-operator programme was the objective upon which the partnership was founded.
Mermaid Operations Director, Scott Cormack, explained, “New contracting models are critical to achieving the decommissioning cost reduction target set by the North Sea Transition Authority (NSTA). However, the NSTA reported in 2021 that these models were yet to become the norm and that a lack of collaboration was, in part, responsible.
“Our aim is to help address that situation, not only through our own collaboration with well management leaders EXCEED, but also by encouraging operators to consider the benefits of a lump sum, campaign approach to decommissioning. That this has been the precise outcome of our first campaign is testament to the clear appetite for this approach amongst the operator community,” Scott added.
John Anderson, Commercial Director for EXCEED commented, “Our well decommissioning experts have worked on some of the sector’s highest-profile abandonment campaigns, and it’s clear to us that this partnership brings something unique to the sector; a turnkey well P&A service, which provides not only the technical downhole capabilities but also complete control over vessel schedules.
“In this way, we can optimise timings to allow for multi-operator campaigns. With mobilisation/demobilisation accounting for a third of the total well P&A cost, this approach makes good economic sense, as well as minimising the environmental impact of multiple, separate campaigns.”
NSTA Head of Decommissioning Pauline Innes said, “The NSTA is actively promoting multi-operator, well-decommissioning campaigns – which can deliver substantial cost efficiencies, reduce emissions and give suppliers confidence to invest – and is encouraged this approach has gained traction in the North Sea market.”
Plexus Holdings PLC, an oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has been awarded a purchase order for plug and abandonment equipment and services from Oceaneering International Services Limited, a division of Oceaneering International Inc.
The order includes tieback and subsea well control equipment together with hydraulic controls and services. The rental equipment will be used to support Oceaneering's vessel-based P&A services for a six-operator joint campaign in the Dutch Sector of the North Sea.
Ben Van Bilderbeek, CEO of Plexus, commented, "We are delighted to be working with Oceaneering on this North Sea project and anticipate this opportunity leading to further potential for P&A work for Plexus, especially given the sector's growth forecasts. This new order for our unique services on a multi-well campaign is a major step forward for Plexus and represents a diversification of our business into support-vessel based P&A work."
"After many lean years and following the collapse and near collapse of many companies in the oil and gas services sector in 2015/16, it is reassuring to see a widely reported recovery in drilling activity and capital expenditure around the world. Encouragingly this has led to an increased level of interest in our Exact-EX exploration wellhead rental services, Centric-15 mudline hangers and our POS-GRIP ‘HG’ production wellhead technology, for which we are positioning the company to benefit, by way of planned investment in additional inventory and increased customer engagement."
This order is estimated to generate revenues of circa UK£500,000 for Plexus in calendar year 2023, and has the potential to lead to other similar work in the North Sea and internationally both with Oceaneering and other customers.
Fairfield Energy recently announced the removal of the topsides from Dunlin Alpha platform which is the latest milestone in the decommissioning of the four fields which make up the Greater Dunlin Area.
Following the hook down and removal activities undertaken by the HAF Consortium (Heerema Marine Contractors and AF Offshore Decom) last month, Heerema’s SSCV Sleipnir transferred the remaining modules to its deck before removing the main 11,750-tonne Module Support Frame (MSF) in a single lift. The Sleipnir then returned to AF Offshore Decom’s Environmental Base at Vats where more than 95% of the Dunlin topsides will be recycled.
The Dunlin Alpha installation, located approximately 137 km northeast of Shetland and in a water depth of 151 m, produced its first oil in 1978. In the 37 years that followed, more than 522 million barrels of oil were recovered from the Greater Dunlin Area, comprising the Dunlin, Dunlin S/W, Osprey and Merlin fields. Fairfield Energy acquired the assets in 2008 and took over full operatorship in 2014, maximising production during its late-life stage and then progressing its subsequent decommissioning programmes.
Alan Scott, General Manager for the Greater Dunlin Area Decommissioning Project said, “This is a poignant milestone for an installation which has been a central part of UK North Sea production since the industry’s earlier days. Notably, in 1978 it was the first field to produce into the Sullom Voe Terminal on Shetland, paving the way for the many which came after.
“The Greater Dunlin Area itself has made its mark but it’s important not to forget the thousands of people who have visited or called the platform their working home. Dunlin has always been blessed with a strong team spirit and this is another core part of its legacy, having influenced the careers of many across the industry. I’d like to thank everyone who has been involved with Dunlin over the years, helping the asset overcome any challenges and achieve its many successes,” Alan Scott added.
An agreement was reached with the UK authorities in 2015 that the fields had reached Maximum Economic Recovery (MER), enabling Fairfield to begin the multi-asset, multi-year decommissioning of the Greater Dunlin Area. Since then, Fairfield has developed, consulted upon and gained the approval for its decommissioning proposals and executed a series of scopes which, at their peak, employed 600 personnel from over 26 drilling, subsea and topside operations companies.
Gary Farquhar, Platform and Infrastructure Decommissioning Manager said, “Project execution has involved the P&A of 12 Osprey and four Merlin subsea wells; the decommissioning of the extensive subsea infrastructure associated with those satellite fields; the decommissioning of subsea power import, gas import and oil export infrastructure; the P&A of 45 platform wells; and the engineering down of the Dunlin Alpha topsides. We are pleased to have added Topsides Removal to the list of activities that have been safely and efficiently executed.”
Global well integrity and production optimisation expert Coretrax has successfully deployed the ReLineMNS system across three wells and expanded a total of more than 27,000 ft of tubulars, a world record-breaking project in the Utica Basin, for a major gas operator with its ReLine Expandable Technology.
With one of the expandable liners reaching 9,000 ft in its expansion, all installations smashed the previously held record of 7,243 ft by at least 1,000 ft.
The total setting time from beginning expansion to exiting the top of the liner took only nine hours per well over a total of seven days on location. Covering the well integrity issue with one full-length liner, the overall setting time was significantly less than that of competing products on the market, setting at approximately 1,000ft per hour.
Coretrax’s technology was deployed into each of the wells with a 4.25” outer diameter liner. On expansion of the liner, the post-expansion of the inner diameter was 4.1” with an internal pressure capability of well over 10,000 psi, covering the wellbore issues identified.
Scott Benzie, Chief Technical Officer at Coretrax said, "Our advanced no shoe expandable technology allows operators to effectively isolate well integrity issues and immediately proceed with their next operations without the requirement to drill out a shoe, enabling our clients access to huge time and cost savings on their projects."
“The engineered materials used in the expandable technology ensure reliability is maintained through the operation, resulting in a consistent expansion reflecting our attention to detail.
“Our highly skilled team members from the operations and applications departments were key to the success of this world record, and delivering our valuable services for each well. This project pays testament to the strong and trusting relationship we have built with our client.”
Ithaca Energy, an oil and gas operator has contracted Well-Safe Solutions to plug and abandon (P&A) six wells on the Anglia Platform in the Southern North Sea.
The contract – for an undisclosed sum – will see the Aberdeen-based well decommissioning specialists provide project management, well engineering and all managed delivery services for the project.
The Well-Safe Protector, a heavy-duty harsh environment jack-up rig, is nearing the end of extensive technical preparations and will mobilise to the field in late summer 2022.
Matt Jenkins, Chief Operating Officer at Well-Safe Solutions, said, “This full-service contract is further vindication of our operating model and allows Ithaca to realise the benefits of Well-Safe’s extensive experience in the Southern North Sea. Well-Safe delivers environmentally-friendly and cost-effective well decommissioning operations, unlocking key learnings over multi-well, multi-operator campaigns."
An option to P&A an additional three subsea wells is also available during 2023.
Jane Eddie, Bid Manager, added, “We have worked closely with Ithaca Energy to design a contract which meets their needs and – crucially – those of Offshore Energies UK, the North Sea Transition Authority and other industry stakeholders.”
“Our team is uniquely positioned to support Ithaca Energy with their decommissioning obligations, as we are the first UK-based company with owner-operated rigs to exclusively perform well P&A operations.”
Ricky Thomson, OEUK Decommissioning Manager, said, “Decommissioning has a crucial role to play in helping the UK deliver its net zero ambitions, as outlined in the North Sea Transition Deal. The UK’s decommissioning industry has an incredibly exciting future ahead, and projects like this will be vitally important to realising those ambitions.
This contract announcement follows recent news of Well-Safe Solutions’ purchase of the WilPhoenix semi-submersible rig from Awilco Drilling. The rig will now undergo conversion for well P&A activity and has been renamed the Well-Safe Defender.
Esso Australia Pty Ltd, a subsidiary of ExxonMobil Australia Pty Ltd and operator of the Gippsland Basin Joint Venture recently announced the commencement of a technical tender process for decommissioning of a number of its facilities in the Bass Strait.
The company is said to be requesting technical submissions from a number of experienced offshore heavy lift contractors for this initial tender phase, who will each outline how they propose to undertake the platform removal activities required.
“Given the complexity of decommissioning offshore facilities, we expect each vendor will propose a unique approach to platform removal in the Bass Strait, based on their capabilities and experience,” said ExxonMobil Australia Chair, Dylan Pugh.
“We will then consider all the options presented, ensuring they meet our own, community and regulator expectations, before moving onto the final commercial tender process next year,” added Dylan.
Over the last few years, Esso Australia has completed around $600mn of early decommissioning works in the Bass Strait, including successfully removing the Seahorse and Tarwhine facilities, completing plug and abandonment activities on our Blackback and Whiting wells, and significantly progressing well-decommissioning activities on Kingfish B and Mackerel.
“As the operator of some of Australia’s most mature oil and gas fields, Esso Australia is committed to safely and responsibly decommissioning our Bass Strait offshore facilities,” said Pugh.
“As we continue to progress these important early decommissioning works, this technical tender is an important step in preparing for the eventual decommissioning of a number of our facilities that are to cease production in the near future.”
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.
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.
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.
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.”
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.
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