Region: West Africa
Content Types: Report
Date: Mar, 2024

An overhead shot of a large oil and gas structure offshore.

Silverwell Technology, a global developer of digitally intelligent gas lift production optimisation systems and services, has celebrated a step forward in permeating the African market after securing a contract from a major operator offshore Nigeria.

The contract will see Silverwell bring its digitally intelligent artificial lift (DIAL) gas lift production optimisation system to the country. This system integrated in-well monitoring and control of gas-lift well performance with surface analytics and automation to continually optimise production, remotely and without well intervention. This is expected to bring significant benefits to the operator with DIAL reportedly enhancing the net present value (NPV) of each well by up to US$50mn over their lifetime.

According to Silverwell, DIAL is used by operators around the world for onshore and offshore applications. Currently, it is being installed in shallow water oil wells in the Gulf of Guinea and is operated from an unmanned production platform.

The DIAL optimisation system from Silverwell

“The key driver for the operator was the OPEX saving related to well intervention and the associated logistical cost. The DIAL system also enables the ability to ensure continuous and remote well monitoring and production optimization,” remarked Stephen Faux, General Manager of Operations for the Eastern Hemisphere. “Conventional gas lift systems would require identification of the optimisation issue, data analysis, vessel mobilisation, and ceasing production to perform well intervention to change the gas lift valve(s).

“This process, from start to finish, can take several months and incurs significant financial impact. With DIAL, all data is delivered in real time to the engineer’s desk allowing them to perform analysis, identify uplift opportunities, and make changes to the configuration without visiting the platform. Petroleum engineers can improve production uplift in minutes.”

Silverwell noted that with the system cutting well lifecycle costs by eliminating well intervention, avoiding deferred production and substantially reducing logistics expenditure, it could bring significant benefits to West Africa. And, in doing so, the company expects this contract to lead to further adoption of DIAL in West Africa and across the continent.

Darrell Johnson, Silverwell CEO, said, “Entering the African market and successfully delivering our first project there is a major milestone for Silverwell, as recognition of DIAL’s benefits to operators continues to gather momentum globally.

“Opening up this latest frontier for our industry-leading technology provides a platform for further expansion in West Africa and the wider continent. We see significant potential for DIAL in Africa and elsewhere. From North America to the Middle East, Asia Pacific, and now Africa, demand for a proven method to reduce operational expenditure while maximizing asset productivity is growing. We’re excited for the next steps in DIAL’s journey toward adoption by operators in every region.”