International contract wins set Decom Engineering up for successful year

Decom Engineering (Decom) have kicked off 2023 with a number of project wins and workscopes valued in excess of seven figures sterling.

Decom Engineering has secured new projects in Africa, Norway, Thailand and Singapore, while strengthening ties to an existing client in Malaysia.

Scotland and Northern Ireland-based Decom will mobilise multiple chop saws and supporting personnel in Q1 to support on decommissioning campaigns in the Gulf of Thailand.

And offshore the Democratic Republic of Congo, Decom will provide a C1-24 chop saw with hot stab functionality to assist the recovery of a production jumper in water depths of up to 1,000 metres. The workscope, on behalf of a major oil and gas operator, was a result of Decom proving its chop saw could succeed where other cutting technologies had failed and it is the first time Decom has been engaged directly by this operator.

In Norway, Decom will provide support through a tier 1 contractor to a major operator during the summer campaign.

Rovco Completes Decommissioning Contract with Well-Safe Solutions

Using its innovative SubSLAM X2 technology, Rovco also performed jacket inspection operations, providing the client with highly detailed 3D models of the platform footings to precisely identify any scouring across the structure. Powered by Rovco’s sister company Vaarst, SubSLAM X2 produces 3D reconstructions of underwater assets in real-time, from which users can take measurements with sub-millimetric accuracy. Mounted on an ROV, travelling dynamically at general visual inspection speed, SubSLAM’s ability to zoom in, rotate and fly means that it can provide full coverage of a structure from all angles, as well as the seabed and surrounding environment.

Simon Miller, Chief Revenue Officer at Rovco, said: “Being awarded a second contract with Well-Safe Solutions underlines their confidence in Rovco’s proven track-record.

Rovco has successfully completed a contract awarded by Well-Safe Solutions to support its well plug and abandonment decommissioning operations in the Southern North Sea.

This is the second contract that the leading provider of subsea and hydrographic survey projects has secured with Well-Safe Solutions, having previously performed survey work on an abandoned subsea wellhead in UK waters in 2021.

During the project, which mobilised in July, Rovco provided WellSafe Solutions with field survey operations, to ensure the safe and efficient decommissioning of a platform which ceased production in 2015. Earlier this year, Well-Safe Solutions signed an agreement with Ithaca Energy to plug and abandon six wells on the platform. Work being carried out by Well-Safe Solutions will continue into 2023.

Operated by Rovco’s highly experienced team, the project utilised the VOS Star, on charter from Vroon, equipped as standard with Seaeye Leopard work-class ROVs, fitted with multi-beam echo sounders, the highest quality 4K stereo cameras, manipulators, recovery basket and photogrammetry technology to carry out specialist hydrographic surveys and underwater asset inspections.

As part of the project, Rovco supported the client with debris survey and clearance solutions in water depths of 20 to 30 metres, as well as habitat characterisation surveys to mitigate risk and eliminate uncertainty about seabed conditions prior to the client deploying a jack-up vessel at the site.

“Accurate data sets from subsea surveys and inspections is key to the safety and efficiency of their operations and they know they can rely on our people and our technology to provide the highest quality data in real-time.

“We’re pleased to be able to play a continuing role in decommissioning and the energy transition in the North Sea, supporting Well-Safe Solutions in its quest to safely and cost-efficiently plug and abandon wells in the Southern North Sea.”

Founded in 2016, Rovco is a global provider of subsea robotic and hydrographic survey solutions to the offshore wind and oil field decommissioning sectors. The company focuses on the use of perception, data and autonomy technology to modernise and help further the growth of marine generated renewable energy. For more information, visit: www.rovco.com.

Field Development Update

Offshore O&G-related engineering, procurement and construction (EPC) contract award value in the last 30 days was estimated at US$1.8 billion, bringing the year-to-date total to US$3.1 billion (excluding letters of intent). During the period under review, 18 subsea tree units were awarded, with contracting activity concentrated offshore Norway stemming from plans for development and operations (PDOs) submitted at the end of 2022. Notable awards recorded offshore Norway is an award to TechnipFMC for the supply of subsea production systems for Equinor’s Irpa and Verdande projects. Subsea 7 and DeepOcean were also awarded the engineering, transportation and installation (ETI) contract for a MEG pipeline, production riser, umbilical, subsea structures and tie-ins for the Irpa field, and a 7.5km pipe-in-pipe production pipeline, umbilical, flexibles, subsea structures and tie-ins for the Verdande field. Aker BP awarded TechnipFMC the EPCI contract for subsea production systems, controls, pipelines, and umbilicals for its Utsira High project, which includes the Symra, Solveig Phase II and Troldhaugen fields.

Outside Norway, key awards include an EPC contract to Corinth Pipeworks for 155km of rigid lines for Chevron’s Tamar gas field expansion project offshore Israel, with the offshore installation campaign to be carried out by Allseas. Offshore India, Invenire Energy reportedly chartered the Petrojarl Varg floating production, storage and offloading (FPSO) unit, now renamed Svetah Venetia, to be deployed on the PY-3 field. Offshore Malaysia, Malaysia Marine and Heavy Engineering (MMHE) was awarded an EPCI contract for up to five wellhead platforms and associated pipelines valued at US$320 million for Carigali PTTEP Operating Company (CPOC) block B-17 phase six development.

Key projects anticipated to be sanctioned in 1Q 2022, which will drive EPC contract award value, include Eni’s Baleine Phase II development (Ivory Coast), Azule Energy’s Agogo (Angola), ExxonMobil’s Uaru (Guyana), QatarEnergy’s North Field South (Qatar) and ADNOC’s Umm Shaif Gas Cap project.

Offshore Rig Update

The global committed jackup count totalled 394 units in January, four rigs lower than the previous month. The marketed available and cold-stacked jackup counts now stand at 44 and 54, respectively. Marketed, committed utilisation and total fleet utilisation dipped by 1%, to 90% and 80% during the month. A total of 11 new contracts were awarded, and five options were exercised during the month, amounting to 9,660 days. Four, three-year Indian contracts were awarded during the period, including for Aban IV and Trident II, that will commence in 2Q 2023.

The global committed semisubmersible (semi) count dropped by one to 66 during January. There are 14 available and 15 cold-stacked rigs remaining in the fleet. Marketed, committed utilisation and total fleet utilisation dropped to 82% and 69%, respectively. There were five new fixtures and two options exercised during the month with a total duration of 3,000 days. TotalEnergies has exercised its US$32 million option on Transocean semi Development Driller III for another well, now keeping it engaged through to mid-August offshore Suriname. A final 90-day option will also likely be exercised.

Finally, drillship demand grew by one unit to 78 this month, leaving only four marketed units available in the market, while 15 rigs are cold stacked. Marketed, committed utilisation and total fleet utilisation were flat at 95% and 80%, respectively. There were seven new contracts fixed during January, totalling 1,965 drilling days. Three Noble drillships were awarded work in the US Gulf of Mexico, including the Noble Faye Kozack on a one-well contract with Kosmos Energy at a dayrate of $450,000. Commencement will begin in direct continuation of its current campaign.

Offshore Wind Update

Since the last update, the 54MW Akita Noshiro - Akita Port wind farm, located offshore Japan, came online with the final turbine becoming operational. The wind farm features 13 Vestas V117-4.2MW wind turbines and is the second phase of the combined 140MW Akita Noshiro offshore wind project. The first 84MW phase came online in December 2022.

In Germany, first power was produced at the 257MW Arcadis Ost 1 wind farm. The wind farm will feature a total of 27 V174-9.5MW turbines that are being supplied by Vestas and it is scheduled to come online by the end of 2023.

Dominating headlines was news in Denmark that the processing of offshore wind projects under the 20GW open door scheme has been suspended by the Danish Energy Agency (DEA). In consultation with the government's State Aid Secretariat, the Ministry of Climate, Energ, and Supply has determined that the issuing of licences for offshore wind farm projects and other renewable energy projects under the open-door policy may be in violation of EU legislation. The relevant parties involved in the process have been informed about the suspension by the DEA.

Finally in Portugal, a total of eight draft offshore wind lease areas have been identified by the Ministry of Economy and Maritime Affairs, the Ministry of Infrastructure, and the Ministry of Environment and Climate Action. The identification of the areas is the first step in Portugal’s goal of awarding 10GW of offshore wind projects that are targeted to come online by 2030. The offshore wind areas will host both fixed bottom and floating wind projects.

STATS & ANALYTICS

PROVIDED BY www.westwoodenergy.com

Westwood Global Energy Group are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.