isol8, an Aberdeen based oil and gas services firm, has received a UK£3.5mn investment from BGF to support its long-term growth plans and develop its zero-emissions product portfolio as its expands its services into the wellbore construction sector.
It is estimated that successful deployment of isol8’s technology could unlock savings of between UK£1.5mn to UK£7mn for platform and subsea wells abandonments. This could translate to savings of between UK£2bn to UK£5bn in North Sea well decommissioning costs.
isol8 is the only company in the world known to use underwater soldering to create metallurgically bonded alloy barriers to seal off oil and gas wells. The firm designs, develops and deploys its industry leading Fusion Barriers, providing a longer lasting and more environmentally friendly solution to traditional cement-based methods.
The drive to decommission
Andrew Loudon, CEO of isol8, commented, “Decommissioning is now a huge focus in the North Sea and we’re partnering with clients to help them significantly reduce their asset retirement costs.
“Now, with the support of BGF, we are in a strong position to broaden our zero-emission product portfolio and accelerate the production of new products, including our casing annulus packers and tubing packers for well construction.
“The BGF team fully understands and supports our vision, and their expertise and business knowledge will be invaluable as we embark on this next chapter together.”
As part of the transaction, BGF Investor Richard Pugh will join the board of isol8 as an investor director, alongside newly appointed independent director Nigel Avern. Nigel is the former CEO of Peak Well Systems, nurturing the business from a small start-up to an international company with market leading positions in well intervention tooling and bridge plugs. Nigel led the successful trade sale of Peak to Schlumberger. Formerly, Nigel spent 18 years with The Expro Group working in range of marketing, technical and general management roles.
Pugh said, “isol8 has huge potential to use its cutting-edge Fusion technology to generate very large savings in plug and abandonment and intervention operations – both of which are markets where we expect long-term growth and where Aberdeen continues to have world-leading expertise.
“At the same time, by ensuring a gas-tight seal, Fusion provides the industry with a much lower emission solution than cement, going some way to address the long-term challenge of de-carbonising the sector. This funding round will support an exceptional management team in completing the final push to commercial adoption, working in parallel with a number of operators who have shown real commitment to the technology.”
During a challenging time for the industry, Wellvene, a design, engineering and manufacturing company, has continued to progress from strength to strength and has capped its impressive performance with the introduction of its latest well intervention solution: the WellHOP™ - Shallow Application Slickline Solution.
Writing in its latest update bulletin, Bronson Larkins, managing director of Wellvene, outlined how the company, which is entering its fifth year of operations, has continued in its evolution despite the industry downturn. When the pandemic hit, many companies including Wellvene were forced change their business plans and way of operations. Despite this, Wellvene has pushed on and successfully re-adapted its 2020/21 plan in order to protect its growth objectives and support the changing requirements of the well industry.
For instance, the company recognised that with the increasing pressure on operators and providers to deliver more climate friendly services and products, there has been a shift away from new well delivery to lower cost, lower rate adding well intervention opportunities while companies are also more intent on achieving their P&A obligations. By steering into this, and working to reduce its carbon footprint itself, Wellvene has expanded upon its working relationships with major operating and service companies in the UK, Norway, the Middle East and Australasia.
While signalling that further growth is still on the horizon, Bronson commented, “We’ll continue to re-invest in our business and our people, and reaffirm our commitment to industry improvement, whilst staying true to our core values of safety, integrity, trust, transparency and respect.”
The WellHOP™ solution
As if to demonstrate the strong position the company is currently holding, Wellvene has released the WellHOP™ Shallow Application Slickline Solution, designed as a more efficient solution to addressing shallow plug installations for xmas tree, well head repairs and DHSV remedial work. For their WellHop technology, Wellvene has been selected as a finalist in the Emerging Technology category for The Offshore Achievement Awards 2021.
Wellvene recognised that operating companies have a HSE obligation to carry out annual Wellhead maintenance on all xmas tree valves, wellhead valves and DHSV’s and, with a significant number of tests on any given platform, failure of numerous valves may occur. This can result in the requirement for wireline to be mobilised in order to plug the well for surface valve repairs or to complete remedial work on the DHSV. This can become a time consuming and costly problem for operating companies as securing space on any platform post maintenance campaign, is often tricky.
This is where the WellHOP™ comes in. With a wire drum c/w 3,000ft of 0.125” slickline, measuring head and toolstring winch installed directly onto a frame around the lubricator, it challenges traditional slickline rig ups and operating methods by eliminating the need for a mast and separate wireline winch whilst also simplifying the overall PCE rig up.
The WellHOP™ is specifically designed for DHSV remedial work and to set shallow plugs for xmas trees and wellhead repairs or emergent plugging operations. With the ability to be transported in only two baskets for reduced lifts and full PCE rigged up directly onto well with only two lifts, the system offers significant time saving during rig up and rig down. For multi well campaigns the system can also be lifted directly from one well to the next in a single lift and allows a customer to achieve more xmas tree and DHSV repairs within a single campaign compared with conventional slickline. The WellHOP™ ensures a reduction in operational risk, time, cost and POB whilst improving overall operational efficiency.
Due to its numerous benefits, the WellHOP™ solution has been submitted for the OWI Global Awards 2021. To find out more information on this event, follow this link: https://offsnet.com/owi-awards
Aberdeen-based downhole sensing technology specialist, Well-SENSE, has entered into a five-year agreement that provides Halliburton Company exclusive rights to distribute and deploy Well-SENSE’s FiberLine Intervention (FLI) technology in North America’s unconventional wells market.
Understanding and optimising well and fracture interactions is a challenge that operators face today. Branded by Halliburton as ExpressFiber, the disposable fibre-optic surveying solution offers operators in North America’s unconventional market an accurate and direct subsurface measurement during fracture operations, at a price point to suit every well pad. Unlike other cross-well monitoring techniques that provide indirect measurements, ExpressFiber uses distributed acoustic sensing (DAS) to acquire a direct measurement of microseismic, strain and temperature.
Annabel Green, CEO of Well-SENSE, said, “Entering into our first, multi-year, commercial contract with a leading oil and gas service company is an exciting step for Well-SENSE and it will demonstrate the scalability of FLI. Our unique bare fibre deployment technology delivers cost and time savings alongside superior data and has a wide range of downhole applications. We are firmly focused on delivering that value to operators around the world and our agreement with Halliburton represents a key milestone in this strategy.”
Well-SENSE’s wider range of acoustic and thermal fibre solutions have been successfully deployed, both onshore and offshore, around the world for a variety of applications. Currently the technology is in high demand to assist with cement assurance, leak detection, P&A planning, cross-well strain and vertical seismic surveys.
Well-SENSE is part of Aberdeen’s FrontRow Energy Technology Group, which is focused on nurturing new technology to provide practical solutions to current oil and gas challenges.
Equinor Energy has opted to add additional well intervention work to the previously agreed work scope for the low-emission jack-up rig Maersk Intrepid at the Martin Linge field offshore Norway.
Maersk Intrepid is an ultra-harsh environment CJ70 jack-up rig, designed for year-round operations in the North Sea and featuring hybrid, low-emission upgrades. It was delivered in 2014 and is currently operating at Martin Linge for Equinor. The rig was initially contracted by Equinor for both drilling and accommodation activities and its scope in the region has been continually extended as the field has been developed.
Of the latest contract extension, the firm value is approximately US$10.5mn, including integrated services but excluding potential performance bonuses. The added well intervention scope has a firm duration of 31 days, which means that the rig is now contracted until February 2022.
The contract extension is entered under the Master Framework Agreement between Equinor and Maersk Drilling, in which the parties have committed to collaborate on technology advancements and further initiatives to limit greenhouse gas emissions. The contract with Equinor Energy AS contains a performance bonus scheme based on rewarding reduced CO2 and NOx emissions.
Speaking at the Virtual Offshore Well Intervention Europe Conference 2021, Bruce Trader, President of MADCON Corporation, guided an audience through his company’s Structural Composite Retrofit (SCR) process, developed to restore the structural integrity of conductors and well casings as well as providing long term corrosion protection.
Trader explained how the process was conceptualised after a major international oil and gas company requested a process to restore the integrity and provide long term corrosion production for their conductors and surface casings as they had been experiencing several years of less than optimal performance. The company had numerous conductors that all were suffering from severe corrosion and required an immediate solution.
For this to be a success, the company issued several key mandates which MADCON had to fulfil including:
-Restore the original design capacity
-Allow future work
-Minimal to zero hot work
-Long term corrosion protection
-Ease of installation in the splash zone
-Meeting regulators compliance
-No cofferdam required
-Fit within the existing conductor guides
-Conduct the work from vessels or the platform and not require a barge or rig
-Eliminate the need for future maintenance.
When the operator hired a third party engineering company to analyse and validate the method MADCON put forward, they assumed that there was no remaining conductor wall or inner string pipe capacity and that the composite section had to be designed to take the full axial and bending load.
Trader explained the basic SCR process which they followed to help the operator, which begins by, if the surface casing is not already grouted, grouting the surface casing annulus to a select elevation (in this case 2-3 metres below the water). This consists of installing a plug to isolate the annulus and putting on epoxy grout before finishing with cement grout all the way up to the wellhead (there is no need to grout to the mud line as the corrosion is not severe a couple of metres below the water). If there is a large length of unsupported casing a reinforcement cage made may be required before, in the final step, a fibreglass jacket is installed to be pumped full of epoxy grout from the bottom up.
As one of the key mandates was to install in splash zone, the materials were all lightweight, composite and easy to install. In more than thirty years of conducting these operations MADCON has recorded zero incidents for the divers involved.
In order to keep hot work (and by extension expense) down, MADCON also took pains to make the repair within the existing conductor guides. The platform had a tight space which posed a challenge but this was able to be overcome and today the company’s repairs only add 1-3 inch in overall diameter meaning they can perform repair work within most existing guides out there saving time, money and eliminating hot work. The company additionally captured more value by performing the work without the use of a rig or large barge as they are able to perform the repairs with relatively small vessels of opportunity or even the platform itself.
Summarising this job, Trader said, “We were able to achieve all the mandates stipulated by the operator including, once the repair was done, eliminating future maintenance so that 27 years (and counting) after the repair everything is still in perfect condition.”
Reliable performance
After gaining a formidable reputation for this kind of work, operators even began commissioning the company for wells that had corroded so much to the point where the surface casing had collapsed. But, as Trader demonstrated with a string of case studies to conclude the session, this was not an issue but something they have now come to specialise in.
For one well, for instance, prior inspection posted no abnormal operational conditions but an inspection from MADCON identified that in fact the well had in fact collapsed and had to be shut in. The company then dissected and removed some of the conductor pipe and identified that the conductor to surface casing was open at a certain elevation and, without anyone knowing, it had been slowly corroding the surface casing to the point that it failed. While supporting the well with casing jacks, the MADCON crew of 8 techicians were able to perform full structure repairs from the platform, from -3 to +20 metres, in just 12 days. Once done the operator was able to get his well back online and producing again.
Trader said, “This process can be modified to restore any capacity that the operator might need and we have been successfully using it to restore original design capacity and provide long term corrosion protection on hundreds of wells.”
Paradigm, an upstream oil and gas technology and services company, has launched the i-Winch, a sustainable conversion service for adapting existing diesel hydraulic intervention winches to fully electric driven intelligent winches.
The i-Winch was developed from their fully electric driven and controlled E-Winch range, to address the challenges facing service companies to invest in new assets that offer lower carbon solutions.
“With the current pressures on oil and gas companies to reduce carbon emissions, the benefits of electric driven winch systems are clear. As with the uptake of electric cars with environmentally conscious consumers, so too are operators looking to satisfy their need to responsibly reduce emissions,” commented William Ash, Managing Director of Paradigm Technology Services, a division of Paradigm Group.
“We developed the i-Winch unit based on a philosophy of repurposing existing diesel hydraulic winches into fully electric drive units, using our proprietary drive system which eliminates the need for hydraulics in either diesel or electric hydraulic driven winches.”
Capturing value
Ash continued, “One of the major challenges for service companies currently is the investment costs involved in switching to electric driven units whilst they already have a fleet of conventional diesel hydraulic units on the books. For example, one of the most prolific winches on the market over the years is the ASEP SlimLine, a diesel hydraulic designed unit designed to last several decades. An i-Winch conversion to rebuild an old unit back to fully electric driven, will extend the life of the unit by at least 10 years, so not only extending the life of the unit but eradicating the need to repair or replace equipment.”
“In addition, the performance of the unit is improved and offers all the benefits of our E-Winch range with constant speed or tension control, remote control, automated jarring, zero-line breakage, and enhanced safety whilst being fully configured for remote operations, thus reducing the number of crew. We conservatively estimate US$15,000 annual maintenance saving per unit after the conversion whilst sustainably repurposing a significant portion of the material from the donor unit as part of the process”.
Ash concluded, “Operators are under pressure to significantly lower their carbon emissions right now, and we are proud that our values and global leading technology combine to offer a cost-effective solution here. The combination of our E-Winch or i-Winch units with our digitally enabled slickline platform system, Slick-E-Line, can transform conventional well intervention operations into a fully digitally enabled well intervention single package, that reduces runs, reduces costs and reduces carbon impact whilst enhancing real time control.”
For a relatively young company (Paradigm Group was established in 2009) the i-Winch unit is the latest in a strong line of solutions developed to minimise carbon impact and generate value for the energy industry.
As part of the Offshore Well Intervention Virtual Offshore Well Intervention Europe Conference 2021, Charles Sanders, Business Development Manager at 3M, explained how 3M’s Ceramic Sand Screen Systems can provide operators and service companies with a competitive advantage and better risk/reward profile for well intervention operations.
Sanders opened the session by describing the basic design of the ceramic sand screens. The equipment is made up of a perforated base pipe with ceramic rings placed over on top. These rings have ridges that create a profile and provide the sand control. The solution comes in modules of 1.5m length and is available in a range of different sizes.
Alongside a host of benefits, the ceramic sand screens have been designed to reduce and potentially nullify three main areas of risk: erosion, economic and reputational.
Explaining these, Sanders noted that because the through-tubing of the sand control solution has been designed with reduced tubing size there is a perception that it is therefore higher risk as it amplifies the erosional forces at previous economic flow rates. But this is only the case with standard screens using inferior material which are severely limited by their susceptibility to erosion. With such equipment, when dealing with erosive material, the operational velocity must be kept fairly low otherwise the well life can be greatly shortened.
By replacing the traditional materials with ceramic, which is highly resistant to erosion and corrosion, the root cause of these problems are addressed which completely changes the traditional rule of thumb to indicate whether a screen can be run.
Sanders commented, “The material change in our sand screens means we can push the intermediate boundary so that conditionals viewed as high risk with traditional materials are now low risk. We have deployed into harsh environments far and excess of what the rule of thumbs are. This will enable us and operators to be more competitive and change the risk/reward landscape.”
A well that is producing to its full potential, unhindered by solids production, is a future revenue stream for both operator and service company. In this way the ceramic sand screen reduces the erosion risk, as explained; reduces the economic risk, by offering enhanced produce rates as well as limiting the cost of failure; and reduces reputation risk both on a corporate and personal basis, as 3M’s proven track record with this technology means you can be confident when deploying it.
Ceramic Sand Screen case studies
To demonstrate the capabilities of the ceramic sand screens, Sanders guided the audience through three case studies where the technology has been deployed.
The first was covering an underperforming gas well in the North Sea where it was not feasible to do a frac pack. There were no sand management facilities on the platform and the estimated velocity in perforations was 100 ft/s. 3M deployed their ceramics sand screens for the frac operation at 3 screen joints using rigless on E-line single run through the riser. This resulted in no proppant flow back for all six sub sea and two platform well applications, high rates of 35 MMSCFD, and increased longevity of the well life with all still producing today with no sand control failure.
After this success, 3M wanted to deploy their technology to enter into different zones and were commissioned to provide a cost effective solution to maximise production from a well in a shallower zone with downhole sand control in Egypt. This well had high gas rates, high influx velocity and impingement velocity through short net target zone. Hot spotting was also a major concern. Ceramic sand screens were chosen to address these challenges, and via a rigless wireline deployment, they were placed across the perforation zone in two wells and two wells above the perforation zone inside the tubing. This added 15 MMSCFD of gas to the asset, achieved sand free production rates and the company subsequently reviewed the technology to replicate it as the primary sand control method in other applications. As a result of these benefits the operator was able to capture more than US$12mn in first year of average production.
Finally, Sanders described an example in Norway where the ceramic screen was used for OH SAS completions in high corrosive and high rate gas wells. The solution in this case was specifically designed to address client specific OH challenges. Once deployed the sand screens eliminated the technical challenges and risks of gravel packing HPHT conditions, reduced the operation risk and avoided the cost of pumping services. Subsequently, the well was able to achieve its target rate of 106 MMSCFD.
Sanders added that the velocity encountered on these wells (such as 100 ft/s at the North sea operation) was huge and something that could not even be considered by traditional sand screen methods and yet 3M’s solution coped effectively and has even been tested in environments of up to 200ft/s. This represents a significant step change.
Sanders stated, “When you remove the risk perception the high risk opportunities open up. I have focused on erosional environments and benefits here but there is a whole range of advantages that this solution offer such as reduced operational complexity and HSE risks, proven productivity and minimised solids production, rationalising and standardising effective control design in the field, and can save you up to four to six times of CAPEX requirements over a conventional rig operation.”
Concluding the session, Sanders offered the audience the opportunity to challenge 3M with their well sand problems which they would be happy to look into and address if they can. As Sanders added, “these don’t solve every problem, but they sure do solve a lot of them and we would love to see how we can help deliver better performance for your assets or well intervention services.”
Another opportunity to learn more
On Tuesday, July 6th 2021, 3M will be demonstrating in more detail how the Ceramic Sand Screen Systems can offer effective sand control and long term productivity for your wells in a free online webinar.
Starting at 10:00 am BST, 3M will discuss whether the current sand control practices used in oil and gas production contribute enough to meet productivity targets and energy policies, and explain how 3M’s ceramic sand screens can eliminate the need for complex sand control methods. This will be followed by a Q&A session where you can ask your questions anonymously. If you register and can't make it to the webinar, a recording is available after the event.
To sign up, follow the link below:
Offshore technology supplier Osbit Ltd has reached a key milestone in the assembly of a new well intervention tower system for FTAI Ocean.
The FTAI Ocean Smart Tower System now stands at 40 metres (its full height), after the top section of the tower on to the lower section was installed in a complex lift operation.
This involved hoisting the top section of the tower by crane and holding it in place on the lower section, while the sections were welded together. With the two sections joined together, the final fitout of hydraulic, control and electrical parts can now take place.
The FTAI Ocean Smart Tower System
The system, currently under construction at Wilton Engineering Services in the UK, will facilitate integrated riserless and riser-based well intervention operations on FTAI Ocean’s flagship DP3 vessel M/V Pride. When completed, it will weigh 1,300 tonnes and be capable of operating in water depths up to 1,500 metres.
It integrates a series of innovations derived from Osbit’s experience in developing well intervention and offshore handling equipment to improve operational safety, flexibility, and accessibility:
-The tower’s vertical Open Water Intervention Riser System (OWIRS) racking system improves deck safety by reducing the need for access around the well centre to handle OWIRS joints, while its small footprint optimises deck space, for more effective equipment storage.
-The system integrates the existing vessel crane into the full deployment system, providing up to a 250-tonne active heave compensated capacity. Additionally, the system offers an active and passive heave compensated platform for building, operation, and recovery of OWIRS, and riser based or riserless intervention systems in 1,500 metres and 3,000 metres respectively. The heave compensated platform is able to support coil tubing, slickline and e-line operations and provides safe and efficient personnel access via an integrated walk to work system.
-The system is fitted with both guide wire and pod wire systems which, alongside the deck skidding system, minimises the need for crane lifts, increases operating windows and enables equipment to be directly loaded into the well centre.
-Also incorporated is Osbit’s Integrated Logistics Support (Osbit ILS) software technology, which offers detailed data insight and asset performance analysis.
Steve Bedford, Director at Osbit, commented, “This system is the culmination of our extensive expertise and strong reputation in the design and build of cutting-edge well intervention and offshore handling systems. We remain committed to utilising our capabilities to support our clients in enabling safer and more efficient offshore operations.”
“As a business, it is rewarding for us to see this world-class piece of kit successfully coming together and we are very much looking forward to delivering the completed system to FTAI Ocean.”
Jon Attenburrow, Managing Director at FTAI Ocean, added, "This is a great achievement, for all involved in the design, build and assembly of the Smart Tower System, in these difficult times. We are pleased the build has been carried out safely and professionally to date, and look forward to the successful completion of the world class Well Intervention Tower.”
To hear more from Osbit and industry experts on the latest technology and best practice relating to well intervention, be sure to attend the Offshore Well Intervention Europe Virtual Conference 2021 which is accessible via this link: https://www.offsnet.com/owi-eu/register.
Archer Oiltools has been awarded a plug and abandonment (P&A) campaign by Wintershall Noordzee B.V across 2021 and 2022. The scope awarded to Archer is to perforate, wash, and provide cement and formation integrity testing tools, services, downhole tools on tubing conveyed, and plugs-cutters for 22 wells with an option of another 20 wells.
Hugo Idsøe, Vice President of Archer Oiltools, commented, “Over the last decade Archer has delivered a high number of P&A and Slot recovery operations to our customers in the North Sea with great success. This contract is a milestone for the southern part of the North Sea and a testimonial of all the good work that we have done for Wintershall Noordzee B.V. over the last three years.”
“Our team have delivered excellent performance and we continue to prove that Archer’s Oiltools is an industry leader for smart and robust solutions in markets where well integrity, reliability and time savings are of upmost importance.”
“With a broad portfolio of products and services within P&A and Slot Recovery, Archer is in a unique position to deliver lower carbon solutions to our clients. Through our development of new technologies and solutions, we are rapidly adapting to and embracing the sustainability focus on lower emissions,” Idsøe added.
Archer has been carving a formidable presence for itself in the North Sea in recent months with this announcement coming soon after its acquisition of DeepWell, a leading Norwegian well intervention company focused on high-tech based wireline service. DeepWell commands one of the most modern wireline unit fleets on the Northern Continental Shelf and holds a strategic long-term contract in the light well intervention market, making a fine addition to Archer’s portfolio. It is therefore no surprise that the company was awarded another contract by Wintershall Noordzee B.V. and it is highly likely more work will be coming its way in the future.
Serica Energy plc, a British independent upstream oil and gas company with operations centred on the UK North Sea and gas accounting for over 80% of its production, has encountered difficulties in the drilling of the Columbus development well, located in the North Sea, 35km north-east of the Shearwater production facilities.
The Columbus development well was spudded in mid-March and drilled, as planned, to a total measured depth of 17,600ft by the Maersk Resilient heavy duty jack up rig. A 5,900ft horizontal section was drilled through the reservoir formations of the upper forties and encountered a sequence of sands and shales, in line with pre-drill expectations. The well required sand screens to be installed to prevent fine particles being produced and difficulties were encountered while running the screens so that it was ultimately not possible to install them.
As a result, the reservoir section of the well will be side-tracked and re-drilled, using data collected during initial drilling to optimise its trajectory and avoid the difficulties encountered running the screens in the original well. The additional operations are expected to take around 3-4 weeks at a net cost to Serica of around UK£3mn.
While this has raised the expense of the operation, these recent developments are not expected to affect the timing of production start-up, which is still projected during Q4 2021. Serica stated that further updates will be provided on each project when flow test data is available.
Mitch Flegg, Chief Executive of Serica Energy, commented, “Whilst frustrating, the additional operations on Columbus are not expected to affect the timing of first production, and the economic returns of the project remain very attractive for the company.”
A recent Competent Person’s Report estimates the Columbus gross undeveloped 2P reserves to be in excess of 14 million boe and, once production begins, the average gross production forecast is projected to be around 7,000 boe per day, of which over 70% is gas.
Rhum 3 update
Serica also provided an update on the R3 Intervention Project, situated on the Rhum field, which commenced in October. The company stated that the R3 well has now been cleared of all equipment installed when it was originally completed in 2005. Reservoir access has been regained, thus allowing new completion equipment to be run in preparation for production.
The new completion is currently being installed prior to performing a flow test on the well, which is expected to be carried out in June. A diving support vessel has been contracted to install the subsea control equipment required so the well can start producing in Q3 2021.
Following an offer letter signed in April 2021, Archer has announced that it has signed a sales and purchase agreement (SPA) to acquire DeepWell for NOK177mn on a debt and cash free basis which will be financed using existing cash and liquidity reserves.
DeepWell is a leading Norwegian well intervention company which provides wireline and downhole services to oil companies on the Norwegian Continental Shelf (NCS). The company currently employs approximately 200 people and, across 2020, had a revenue of around NOK360mn.
The acquisition of DeepWell, which commands one of the most modern wireline unit fleets on the NCS and holds a strategic long-term contract in the light well intervention market, will greatly enhance Archer’s well intervention service offerings in the North Sea.
Lage Nordby, Vice-President of Wireline at Archer, commented, "We are pleased to welcome DeepWell’s team of employees to Archer. By strengthening our wireline equipment fleet and organisation, increasing our low emission solutions, and continuing our track record for service quality, Archer is well positioned on the Norwegian Continental Shelf. The acquisition of DeepWell gives us access to equipment and employees needed in order to fulfill our obligations under our recently awarded wireline contracts with Equinor and ConocoPhillips."
Jan Erik Rugland, COO of Moreld AS and CoB of Deepwell, said, "We are pleased to have reached an agreement with Archer securing continued operations on existing contracts and the continued development of DeepWell’s state of the art wireline technology. I want to thank all the employees, both on- and offshore, for their dedication and perfection. This transaction is in line with our strategy to divest capital intensive businesses in order to focus our energy on transition and growth plans."
The closing of the transaction is expected to be finalised during Q2 2021 and is subject to customary closing conditions and regulatory approvals.
Archer Limited has signed an offer letter with Moreld laying out principle terms to purchase 100% of the shares in DeepWell AS (DeepWell).
DeepWell is a leading Norwegian well intervention company established in 2004 that is focused on mechanical wireline and cased hole logging services. Headquartered in Avaldsnes, Norway, DeepWell had approximately 200 employees and a revenue of NOK355mn in 2020.
Starting from 1 May 2021, Archer will also take over the Equinor wireline services scope from DeepWell, which was awarded in 2018. The light well intervention services for Equinor were to be completed by the AKOFS Seafarer together with Welltec, and included the provision of all wireline and basic logging services, together with operational support and crews.
Archer's CEO, Dag Skindlo, commented, “An acquisition of DeepWell would secure Archer’s access to a modern fleet of electric wireline units, as well as enable participation in the vessel-based light well intervention market. Strengthening our equipment fleet, broadening our low carbon/low emission solutions and continuing our track record for service quality are all key aspects of our strategy on the NCS. We are impressed by DeepWell’s team and look forward to continuing this process with them.”
The contemplated transaction is subject to due diligence, negotiation of the transaction documentation, closing conditions and regulatory approvals.
Archer’s North Sea expansion
The addition of DeepWell is further evidence of Archer’s formidable performance in the North Sea as it continues to expand operations and offerings in the region. The company continues to pursue new technology and digital solutions for well simulations and remote support in order to enhance efficiency and target reducing their carbon footprint.
Additionally, in April 2021, the company secured a long-term frame agreement with ConocoPhillips for the provision of wireline services on the Norwegian Continental Shelf. According to their release, this makes Archer the largest mechanical intervention company on the Shelf, with an estimated total contract back-log of NOK3.5bn.
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