A comprehensive session on plug and abandonment (P&A) regulatory update will be delivered by Rafael Augusto do Couto Albuquerque, Rigs and Wells Coordinator, ANP at the soon to happening Offshore Well Intervention Latin America (OWI LATAM), to be held from 18-19 October 2022, in the city of Rio, Brazil.
In this particular session, the region’s premier well intervention conference will provide attendees with in-depth knowledge on analysing the current offshore well decommissioning situation in Brazil to best position businesses and service providers for upcoming P&A work.
Rafael will also shed light on ways to understand the challenges faced by new operators within the Brazilian market to best prepare for future projects. Attendees are also given in-depth knowledge of new intervention technologies and ways to validate the equipment so that the operators and service providers have the opportunity to optimise their toolbox.
OWI LATAM is poised to be the platform for discussion on the region’s offshore well intervention topics. The event features experts from international and regional companies, alongside regulatory bodies and service providers.
To know more about the full programme, click here: https://www.offsnet.com/latam/conference-brochure
Or reach out to the details below:
Rachael Brand
Project Manager
T: +44 (0) 20 3409 3041
Export credit agency UK Export Finance (UKEF) will be supporting Brazilian contractor Ocyan's decommissioning drive with a US$7.5mn guarantee.
After initial discussions with UKEF, Ocyan onboarded Scottish business Maritime Developments Ltd in 2022 who would take care of the equipment needs for the decommissioning project in Brazil. This was made possible using the UKEF grant which helped Ocyan procure financing from ABC International Bank to successfully set off the MDL deal. The grant will be applicable on a reimbursement basis, boosting its access to working capital.
Charlotte Wiltshire, European Head of Wholesale Banking, ABC International Bank plc said, "We are delighted to continue our support of UK businesses in conjunction with UKEF, leveraging off Bank ABC Group’s MENA and international footprint. This is an important milestone transaction, promoting the UK’s expertise in the oil and gas decommissioning and renewable energy arena. Bank ABC is looking forward to enabling similar energy transition projects in future."
A subsea pipelaying specialist from Aberdeen, MDL's wheeled horizontal lay system technology will be deployed by Ocyan to remove hundreds of kilometres of subsea cables and pipes from defunct FPSO oil and gas rigs in Brazilian waters.
Andrew Blaquiere, MDL Managing Director, said, "MDL is known worldwide for our forward-thinking technology that enables challenging scopes to progress on time and on budget, and this delivery to a Brazilian indigenous company is proof of that. Our engineering studies identified limitations with existing technology on the market when it came to recovery capability from deep waters like those in Brazil. The alternative for these operations would be to use a specialist construction vessel, resulting in high cost and scheduling challenges.
"In a true MDL ‘We Build Innovation’ style, we put our heads together, brainstormed alternative approaches – and delivered the Wheeled HLS. As a result, the client – and the Brazilian market – gained a cost-effective way to kit-out a vessel of opportunity to handle high loads and tackle recovery projects – this way enabling more sustainable end-of-life operations."
The first-ever overseas grant from UKEF also stands to benefit more than 70 Scottish businesses which are responsible for the entirely local MDL model.
Private equity investors Buckthorn Partners and One Equity Partners (OEP) have acquired Acteon Group, an international offshore energy infrastructure services businesses, in a move to develop the organisation’s capabilities in key markets.
The two entities have announced a significant injection of investment that will be used to improve Acteon’s standing with suppliers and customers. The company has been active since 1989 and now provides specialist engineering, services and technologies across all phases of the offshore lifecycle in 14 countries worldwide.
A key focus of this new occurrence will be placed on developing the organisation’s capabilities across survey, foundations, moorings, decommissioning, and consulting engineering services in support of the offshore renewable offshore oil and gas sectors.
“Acteon’s products and services are key to the energy transition in constructing, maintaining and supporting offshore energy infrastructure,” remarked Rob Willings, Partner at Buckthorn. “We are very pleased to acquire Acteon and its market-leading capability in managing offshore renewable, and offshore oil and gas infrastructure. Our ownership will bring stability to the business, and investment and expertise to grow and develop the company.”
Alongside the investment, the senior ranks of Acteon have been bolstered by the appointment of Brice Bouffard Chief Executive Officer. Brice brings a wealth of business experience highly relevant to Acteon and its key segments.
Helix Energy Solutions has announced the extension of its decommissioning contract with Trident Energy do Brasil Ltda.
The contract extension is for an additional 12 months and in direct continuation of the current contract. The extension is expected to begin in the fourth quarter of 2024 at rates in line with the improved well intervention market. The original contract commenced late 2022 offshore Brazil in the Campos Basin and utilises the Siem Helix 1 riser-based well intervention vessel and a 10K Intervention Riser System. Helix is providing fully integrated plug and abandonment well services through its Subsea Services Alliance partner SLB as well as project management and engineering services.
Helix and Siem Offshore have signed six-year charter extensions for both the Siem Helix vessels, with the Siem Helix 1 term extending through December 2030 and the Siem Helix 2 term extending through December 2031. The Siem Helix vessels are purpose-built advanced well intervention vessels capable of performing a wide range of subsea services including production enhancement, well decommissioning, subsea installation, offshore crane and Remotely Operated Vehicle (ROV) operations, offshore construction and emergency response.
The Helix Producer I (HPI) contract has also been extended by one year, to 1 June 2025. Since 2016, the HPI, a ship-shaped dynamically positioned (DP2) floating production unit, has been located at Green Canyon Block 237 producing oil and gas through the existing Phoenix Field subsea infrastructure. The vessel is designed to produce hydrocarbons and export to shore via pipeline or tanker.
Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, stated, “We are pleased to announce that Helix has successfully executed these contract extensions, reflective of improving market conditions and increased demand for Helix’s assets and services.”
Leading institutional investor in the global energy and infrastructure sectors, EIG, has entered into definitive agreements with Novonor S.A. and the Brazilian Development Bank (BNDES) in order to acquire Ocyan Participações S.A.
Ocyan is a Brazilian-based solutions provider to the offshore oil and gas industry that boasts a 23-year track record of delivering for the sector, including in the operation of subsea and decommissioning projects. It is the only operating in the floating production storage and offloading (FPSO) industry and currently operates four offshore units through a joint venture with Altera Infrastructure.
R. Blair Thomas, EIG’s Chairman and Chief Executive Officer, remarked, “I have known and respected Ocyan for decades. The company’s resilience and the strength of its business have helped it overcome significant economic headwinds while maintaining a healthy balance sheet, positioning Ocyan for long-term growth. Brazil is home to over 25% of the global FPSO fleets, and we believe the future market dynamics for oil and gas infrastructure in Brazil are very favourable, underscoring our dual commitment to supporting growth and development in this important region while creating value for our investors. We are also excited to support Ocyan’s ventures in the renewables space to help drive the energy transition forward.”
EIG is looking to finalise the takeover to the tune of US$390mn, continuing its history of investment into the South American country – it has invested more than US$2bn there since 1998. As the latest example of this, the acquisition of Ocyan reflects the company’s comprehensive Brazilian strategy focusing on infrastructure supporting deepwater crude oil production, responsible decommissioning activities and renewables / low-carbon projects.
Roberto Prisco Paraiso Ramos, Ocyan’s Chief Executive Officer, remarked, “Ocyan has built and operated more than US$4bn of drilling rigs, pipelaying support vessels and FPSOs, alone or in joint ventures, always enjoying the very strong support of its shareholders and Novonor. This acquisition does not impact current contracts and operations with our clients and suppliers. This is another important chapter in our history and one that will undoubtedly create new opportunities for Ocyan.”
Shell has awarded a sizeable contract to Subsea7, a subsea engineering, construction and services company serving the offshore energy industry, for the decommissioning of subsea infrastructure offshore Brazil.
The infrastructure in question is that associated with the FPSO Fluminense in the Bijupirá and Salema fields of the Campos Basin, at 700 m water depth.
Yann Cottart, Subsea7 Brazil Vice-President, remarked, “Twenty years ago, Subsea7 installed the flexibles and umbilicals for Shell’s Bijupirá and Salema fields and, two decades later, we’re proud to be one of Shell’s chosen contractors to take part in the completion of this field’s life cycle.”
The scope of work for Subsea7 includes the disconnection, recovery and disposal of 10 flexible risers, three umbilicals and nine mooring lines.
The works in question are expected to get underway in December 2023.
Expro, a provider of energy services, has expanded its portfolio of cost-effective, technology-enabled services and solutions within the subsea well access sector by completing the acquisition of PRT Offshore.
Based in Houston, US, PRT Offshore is the only company to provide a complete Hook-to-Hanger solution which enables comprehensive well completions, interventions and decommissioning services from surface to subsea.
In completing the acquisition, Expro expands its portfolio within the subsea well access sector in the North and Latin America. On the other hand, it will help accelerate the growth of PRT Offshore’s surface equipment offering in Europe, sub-Saharan Africa and Asia Pacific.
Michael Jardon, Expro Chief Executive Officer, remarked, “This is an exciting day for both PRT Offshore and Expro as we strengthen and expand our subsea well access technology offering while continuing to deliver value to our customers across the life of their wells.
“Our subsea well access portfolio has a well-established global footprint, especially in the ESSA and APAC regions. We believe this will offer significant growth opportunities for PRT Offshore in these attractive markets. Simultaneously, Expro plans to leverage PRT Offshore’s strong position in deepwater offshore well completion and intervention across the NLA region to provide integrated solutions to our customers.”
PRT Offshore President, Patrick Place, added, “We are looking forward to embarking on this next phase of our journey with Expro. This agreement is an exciting development for PRT Offshore as we integrate our technology, solutions, and expertise with Expro’s market-leading subsea well access portfolio.
“We are excited to continue our best-in-class responsiveness and service quality, as well as leverage the resources of a more robust platform. Our employees, vital and valued, are at the forefront of this transaction, and we are committed to fostering their growth and success in this new chapter. Building on the foundation we have created, this acquisition will open new opportunities for growth, innovation, and success for our company, customers, and employees.”
Expro has announced it has entered into a definitive agreement to acquire the offshore services provider, PRT Offshore, in a bid to expand its portfolio of cost-effective technology services and solutions.
Upon closing of the transaction, which is expected in Q4 2023, Expro will enhance subsea services within the North and Latin America (NLA) region, and accelerate the growth of PRT Offshore’s surface equipment offering in Europe and sub-Saharan Africa (ESSA) and Asia Pacific (APAC) regions.
Based in Houston, Texas, PRT Offshore is the only company to provide a complete Hook-to-Hanger solution, enabling comprehensive well intervention and decommissioning services from the surface to subsea. The unique system allows customers to access the wellbore safely and efficiently while reducing on-board personnel.
Michael Jardon, Expro Chief Executive Officer, said, “Expro is committed to investing in innovation and technology to differentiate our services and solutions offering. This strategic acquisition is exciting for both Expro and PRT Offshore as we strengthen and expand our subsea well access technology offering and continue to deliver value to our customers across the life of their wells.
“Our subsea well access portfolio has a strong and established international presence, particularly across ESSA and APAC. We believe this will provide significant opportunities to expand PRT Offshore’s presence in these attractive regions. Similarly, Expro will leverage PRT Offshore’s strong position in deepwater offshore well completion and intervention throughout the NLA region to deliver integrated customer solutions.”
Brazil has posed itself as one of the key drivers in the Latin American market that is driving the region's growth in the international oil and gas game. A net oil importer until 2014, Brazil has become the top producer in Latin America in 2016, and since then has enjoyed uncontested leadership in the region. While this represents a great opportunity for the region’s oil and gas sector, from the operators to service providers supporting them, there is a looming decommissioning wave on the horizon.
The global oil market has been witness to many ups and downs since the advent of the Covid-19 pandemic. Far from stability, it has weathered a persistent conflict in eastern Europe; re-emergence of Covid-19 in China; major, consecutive price cuts by OPEC+ nations, and a global uptake on renewable activity. The IEA, however, has indicated that oil demand would remain steady until it reaches a peak in the mid-2030’s at 103mn bpd before beginning to plateau. It predicted that despite the global energy mix changing to accommodate the surgence of renewable practices coming to the forefront, fossil fuels will still hold a 60% share within the energy game until at least mid-century.
The Ministry of Mines and Energy (MME) in Brazil has big plans on drawing investment to the country's petroleum sector. It will be focusing on the various ways to drive exploration in frontier areas and call for investments in mature, as well as marginal, economic fields. Owing to these ambitious goals, there is a dual opportunity for both greenfield development and production enhancement through well intervention.
Besides the active role of Petrobras on advancing the country’s oil and gas industry, new players are also emerging as the state-owned Brazilian Petroleum Company has been passing on its mature assets to several entities from BW Energy to Trident over the last few years. Petrobras itself has plans to decommission 26 of its floating platforms, with the P-32 asset scheduled to begin the process this year.
On the other hand, high marketed utilisation rates of offshore rigs, especially in Latin America following the eastern European conflict, led to a supply chain gridlock. While many operators are considering collaboration between companies in order to use the same vessel for their respective assets, logistically, that process could also present challenges.
Another challenge in the well intervention industry lies in tackling the high costs involved in the process. This has resulted in the popularity of a slightly more fresh-faced method – riserless light well intervention (RLWI). Used instead of heavier vessels, this has the potential to significantly reduce cost of operations and minimise environmental impact – an increasingly pressing concern for operators.
ROVOP, a large independent remotely operated vehicle (ROV) solutions provider, has announced a US$25mn senior secured credit facility with Cordiant Capital (Cordiant), a specialist global infrastructure and real assets manager.
Backed by global private equity firm Bluewater, ROVOP is known for providing its customers with best-in-class equipment and services and is a long-term and trusted partner to blue-chip customers in all key offshore sectors.
Cordiant will support ROVOP with investment into its fleet infrastructure and employees. This will allow the business to continue capitalising on highly favourable offshore market dynamics by securing new contract wins across both new build construction, decommissioning, surveillance, and maintenance services.
Neil Potter, CEO ROVOP, said, “ROVOP is seeing record demand for its services, and Cordiant’s investment means we’re better placed than ever to take advantage of increasing international demand for subsea robotics in both renewable and traditional energy sectors. This investment solidly positions ROVOP for further growth as we continue to invest in our fleet and our people.”
Stephen Foss, Co-Head Energy Transition Infrastructure at Cordiant Capital commented, “ROVOP is a company with great momentum and we’re excited to be supporting them on the next stage of their growth journey. We firmly expect infrastructure service providers like ROVOP to continue thriving as the desire to develop autonomous, low-cost based means of power generation and expansion of digital communication as they continue to grow in importance.”
Ocyan, an oil and gas company with a sustainable attitude and knowledge to provide solutions for the industry, has announced that a Solstad Offshore's vessel has arrived in Brazil, ready to perform decommissioning activities.
The Normand Cutter, which is under Ocyan’s management, will perform decommissioning work on Petrobras subsea structures at Campos Basin and Sergipe-Alagoas. The vessel finally arrived earlier in January after the contract was awarded last year.
Normand Cutter is an offshore construction vessel (OCV) of 127.5 m long, equipped with a crane presenting lifting capacity for 300 tons, in addition to a flexible pipe lay system of up to 100 tons and pipe storage of up to 1250 tons. The ship has a crew capacity of 114 people, however Ocyan’s onboard team will be composed of 23 people.
The vessel arrived in Brazil after beginning its journey in Norway. On 12 December 2022, Normand Cutter departed from the country onto Scotland where collection and pipe lay systems were deployed. Now in Brazil, the vessel will perform the first campaign for the collection of equipment at Campos Basin, where it will remain for two weeks to then unload the structures at Vitória (ES). At the end of this first stage, still at Espírito Santo, it will perform the last stage of equipment deployment – rollers and reels for storage of flexible pipes – necessary for the sequence of the project.
André Luiz Magalhães, Executive Manager for Subsea Construction at Ocyan, commented, “This is the first decommissioning contract for offshore production fields in Brazil and we can say that we are at the forefront when it comes to the national production chain. The project will give us experience and a great expertise. This project marks the return of Ocyan to the subsea construction area. We expect a bright future with new opportunities in other companies, including international operators.
“After all this trajectory, in February, Normand Cutter will start to operate definitely at Campos Basin, collecting structures of FPSO Cidade do Rio de Janeiro and FPSO Cidade de Rio das Ostras, and in the second semester, it will initiate the work at Sergipe Alagoas Basin, in the area of the FPSO Piranema. All material will be treated and sent for recycling. Offshore services under the contract will last for approximately one and a half years,” explained the executive.
Rafael Guigon, Director for Subsea Construction Contracts at Ocyan, added, “For Ocyan, the presence of the Normand Cutter in its fleet is a strategic point and will provide a window of opportunity for new subsea construction contracts. From now on, we can search for other projects that require this kind of asset as a work tool for activities performed in this area. This vessel will allow the execution of simultaneous projects.”
Helix Energy Solutions Group has received a deepwater well decommissioning contract award by Shell Brasil Petroleo Ltd to perform P&A services on subsea wells located in the Bijupira and Salema fields in the Campos Basin.
Helix will provide the Q7000, a riser-based well intervention vessel; a 10K Intervention Riser System; and remotely operated vehicles to complete the project which is expected to take 12 months after starting in early in 2024.
The Q7000, equipped with an IMO-certified DP3 system and the Helix-designed IRS, can execute well intervention operations in water depths ranging from 85 m to 3,000 m. With its open deck plan and tri-axial configuration, the Q7000 is capable of a wide range of production enhancement operations including well clean-up and field development support. The vessel is equally optimised for well decommissioning, including suspension, tubing removal, tree recovery and sea floor clearance.
Scotty Sparks, Helix’s Executive Vice President and Chief Operating Officer, commented, “We are pleased that Helix has been awarded this major well decommissioning contract. This is another step forward in the execution of our strategic objectives which includes contributing to the energy transition by providing best-in-class and global leading decommissioning services. We look forward to continuing our relationship with Shell.”
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