Developing game changing technologies

MEMBER NEWS

Issue 24 | May 2016

DECOM NEWS In this issue • Contributing Ideas for Future DNS Projects • Launch of Late Life Planning Portal • Leadon Decommissioning Programme Approved • Rigs to Railways • Closing in on the Circular Economy • Member News

MEMBER NEWS

MEMBER NEWS

Nomination for national export award Oldmeldrum-based Flowline Specialists has been selected as a finalist in this year’s Scottish Export Awards.

The north-east energy industry manufacturer and service provider has been nominated in the small exporter of the year category. Organised

by Business Quarter in conjunction with Scottish Enterprise, the awards celebrate the export achievement of businesses right across Scotland.

Established in 2001, Flowline Specialists designs, engineers and manufactures a range of equipment that safely handles flexible pipes, umbilicals and cables for the global oil and gas, subsea and renewable industries.

The firm has worked steadily over the past five years to grow and diversify its business, with the contribution made by exports increasing significantly. Turnover for the year to end 31 March 2011 was £1.37million, and this grew to £6.3million by the year ending 31 March 2015. During the same period, the contribution made by exports had risen from 15% to 50%.

To aid this export growth Flowline Specialists established a number of operational bases overseas. Alongside its Oldmeldrum headquarters and a manufacturing facility in Fyvie, the firm has overseas bases in Norway, Holland, Singapore and Dubai. These overseas bases allow the firm to better serve its international markets. www.flowlinespecialists.com

Developing game changing technologies “” Over the past five years we have demonstrated our commitment to diversifying our business and growing operations internationally. As a result, the export market has become an increasingly important element of our business model. Going forward, it will remain a crucial part of our strategy, with the company being structured accordingly.

Being nominated for this national award acknowledges the successful export strategy that we have developed and the international business model we have adopted.

The entire team at Flowline Specialists has played a part in getting the business to this stage. Their hard work, dedication and focus on delivering a high standard of service to customers has been crucial to this.

Jim Smith CEO Flowline Specialists

Lerwick reinforcing ready-made role Lerwick Harbour is leading the way again in creating the next generation of deep-water decommissioning facilities for the offshore oil and gas industry in Scotland, with an £11.95 million project due for completion at Dales Voe Base in the autumn.

With the existing 12.5 metre quay being extended by 75-metres to 130 metres, it will have a load-bearing capacity of 60 tonnes per square metre, unique in Scotland. The versatile quay, capable of taking an offshore structure in a single lift, will also support subsea development projects.

Around 40,000 square metres of adjacent laydown will be completed this year, bringing the port’s total dedicated laydown areas to 130,000 square metres.

Captain Calum Grains, Lerwick Port Authority Harbour Master and Deputy Chief Executive, said: “Lerwick, with its considerable experience and range of facilities, is ready-made for decommissioning – a status which will be enhanced by the Dales Voe project, making it uniquely-placed to handle decommissioning in Scotland.”

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Lerwick is an established and active decommissioning centre making the most of its natural advantages – positioned at 60 degrees north, proximity to fields east and west, sheltered, deep water to 50 metres and 24-hour access – combined with tried-and-tested facilities and services, including Greenhead Base, and a track-record in decommissioning and wider support for the offshore industry.

The port’s extensive resources have the capacity to accommodate the biggest heavy-lift vessels and flexibility to handle both large heavy lift and piece small decommissioning operations, including the only licensed quayside decommissioning pad in Scotland www.lerwick-harbour.co.uk/decommissioning

GA Drilling is a high-tech company developing and commercialising a ground breaking, plasma-based drilling and milling technology, PLASMABIT. PLASMABIT is a technology utilising high temperature (up to 6000C) plasma with applications across a number of industries. It delivers massive time and cost savings compared to all existing drilling technologies and opens vast new possibilities in oil & gas, geothermal energy, and mining.

As Decom North Sea members understand, offshore decommissioning is a developing £multibillion market with legislation driven demand even in the current O&G market downturn. Whilst field life extension is a strategic goal, it is an inescapable reality that oil and gas wells will continue to be plugged & abandoned for many years, not just in the UKCS but elsewhere around the globe.

Our initial focus is the well P&A market and PLASMABIT will bring significant cost and time savings. Applications are focused on section milling and slot recovery and subscale field prototypes and all components of the core

technology PLASMABIT have been successfully demonstrated. This work has been undertaken at our state of the art Technology Centre with 2,580 sq. meters of laboratory space, with EUR 11.2 million of equipment and advanced testing facilities. The Initial full product for oil & gas well abandonment is expected to be brought to market in 2018.

But just what is PLASMABIT and how does it work?

Plasma is an ionized 3 000 – 6 000 °C hot gas and we create a very focussed and controlled electric arc to produce a continuous plasma discharge.

This heat is contained within the PLASMABIT tool and allows contactless drilling and milling in high pressure, high temperature downhole conditions.

The plasma we create can disintegrate any material; rock, steel, cement, using a fast and controllable impact - electric arc rotating 800 times per second. This also gives us the ability to generate shock waves for drilling and reservoir stimulation.

We have successfully integrated proven technologies with our new inventions which are protected by 12 patents.

PLASMABIT will bring the following significant benefits to the well P& market: • Rigless operation - coiled tubing based solution, potential to deploy from vessels (LWIV) • Through tubing approach – milling performed without pulling production tubing saving time • Speed of milling - higher rate of milling, significant time savings, faster tripping times • Cuttings size – small particles instead of swarf, easy cleaning, protects BOP • Lifespan of “cutters” - contactless approach, improved reliability, no wear and tear of the tool • Safety - Fully automated milling process reduces safety risk and enhances safety of the staff In 2013 GA Drilling initiated the cooperation with industry and formed the PLASMABIT Joint Industry Project (JIP) with well-known Oil & Gas companies to quickly address the O&G urgent cost & efficiency challenges in Well Intervention (steel milling, re-entry, casing exits) and Hard Rock Drilling. A key partner and shareholder is SchoellerBleckmann Oilfield (SBO) the global market leader for high-precision components for the

oil service industry. SBO will support the service development and delivery along with specialist service companies.

We are grateful for the expert participation of these companies in our development work and we continue to move forward with pace and precision, proud of our successes to date: • 7 years in the R&D for drilling, well construction and intervention; since 2011 certified with ISO 9001: 2008 • Our intellectual property consists of 2 Granted Patents, 3 US Patent Applications, 3 EU Patent Applications, 9 PCT Patent Applications and 2 Industry Designs • 10+ doctoral level employees, 40+ master level engineers • Repeatedly ranked among the best European innovative companies and continuously supported by the European Union Framework Programs • Cooperation with world leading universities and institutes • The PLASMABIT Joint Industry Project set up in 2013 with major oil & gas operators and oilfield service companies • The first ever plasma milling underwater • The first ever plasma milling in high pressure and high temperature (HP/HT) environment.

• Creating an advisory board of leading O&G professionals.

• Opening an Aberdeen Office complementing our Bratislavan headquarters and R&D facilities.

Our future is centred on our mission is to combine unique knowledge, expertise and leadership skills to create a ground-breaking plasma technology to ensure all our customers derive real business benefit from our sustainable technology. Independent assessments indicate a well P& cost reduction of circa 40% is achievable with our technology.

We remain focussed on supporting the urgent industry cost and efficiency challenge in MER UK and Decommissioning and we look forward to farther engagement with Decom North Sea Members and industry stakeholders at the forthcoming conference and beyond.. www.gadrilling.com

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