6 minute read

Decom Engineering makes the cut in Congo decommissioning project success

from OGV Energy - Issue 67 - April 2023 - Innovation & Technology

from OGV Energy - Issue 67 - April 2023 - Innovation & Technology, page 34

CORPORATE PARTNER

end of the jumper, with the chop saw deployed by ROV with hot stab capability, and using a Tungsten Carbon Tip blade with an average cutting time of 1 hour 15 minutes.

The Congo project follows other successful workscopes on behalf of major oil and gas operators and contractors including workscopes in the North Sea, Mauritania, Norway, and Gulf of Thailand.

“Our latest project in deep water offshore DCR is another tick in the box for the versatility, safety and efficiency of our cutting technologies, adding to an extensive track record of completed workscopes in the major hydrocarbon producing regions.

Decom Engineering’s (Decom) specialist cutting technology has been successfully deployed on a decommissioning project offshore West Africa.

Decom deployed its C1-24 chop saw in water depths of up to 1,050 metres as part of an operation to recover a jumper connector on behalf of Total Energies in the Gulf of Guinea, offshore the Democratic Republic of Congo.

The workscope included the cutting of the insulated 6” Duplex flowline at each

Established in the United Kingdom in 2011 and with bases in Aberdeen and Belfast, Decom is an R&D specialist focusing on the design and fabrication of cutting solutions and innovative decommissioning equipment, with a growing reputation for providing complex deep water project solutions.

Decom Engineering managing director, Sean Conway, said: “Our C1 range of chop saws are firmly established in the decommissioning sector where the nature of the work and complexity of the projects require smart solutions and fresh thinking.

“Decommissioning redundant piping infrastructure or repurposing assets to be converted for low or zero carbon energy storage is a massive global market, and we are committed to investing in research and development to ensure our clients have the most sustainable means at their disposal to address their needs.”

The C-1 chop saw range is certified for use in water depths of up to 2,000 metres, has multiple buoyancy options, hot stab integration, blade reverse capability and bespoke customisation capabilities.

Decom are expanding its C1 chop saw range with development of new model which will be capable of cutting piping infrastructure of up to 46” in diameter.

James Fisher disposes of nuclear decommissioning services firm

asset disposals made over the last three months are important steps in streamlining the group's operations and strengthening the balance sheet.

"JFN has some valuable and unique capabilities and requires the right investment to exploit the market opportunities in front of it.

"In Rcapital we are pleased to have found the right owner for the next chapter in this business's development. We wish the business and its employees every future success."

Josie Richardson, investment director at Rcapital, added: "JFN plays a crucial role in the UK's nuclear decommissioning industry and, hence, the delivery of the government's strategic energy plan.

A supplier of engineering, manufacturing and technical services to the UK's nuclear decommissioning industry has been sold by marine services provider James Fisher and Sons.

Myneration – a wholly-owned investment vehicle of Rcapital Partners – is behind the acquisition of the entire issued share capital of James Fisher Nuclear Holdings Limited (JFN) and related properties.

The sale forms part of the James Fisher board's ongoing commitment to "rationalise and focus the group's portfolio".

Management and staff will remain with the business as it transitions into new ownership and Rcapital will provide JFN with a £3m secured revolving credit facility to fund the growth of the business.

Chief executive Jean Vernet said: "The sale of JFN is a further step in the implementation of our strategy to rationalise and focus the portfolio and, taken together, the business and

"Its management team, market-leading technical services and unique UK-based experience in specialist fields put it in a strong position.

"We are pleased to have the opportunity to support the business as it enters a new phase of growth and development."

Rcapital was advised by Cortus Advisory Group (Financial), Pinsent Masons (Legal) and PHD Property Advisory (Property). James Fisher & Sons Plc was advised by Teneo Financial Advisory (Chris Nichols, Craig Lukins, Dom Young).

Field Development Update

Offshore O&G-related engineering, procurement and construction (EPC) contract award value year-to-date is estimated at approximately US$7 billion (excluding letters of intent), of which contracting activities in the last 30 days have been driven by the Azule Energy-operated Agogo development offshore Angola. In addition to the finalisation of a charter agreement with Yinson for a floating production system (FPS), Azule Energy awarded Baker Hughes a contract for the supply of 23 subsea trees, whilst TechnipFMC received a contract for the engineering, procurement and supply of jumpers, flowlines, risers and all associated ancillary equipment for the field. Furthermore, Aker Solutions was contracted to supply dynamic and static subsea umbilicals, and Subsea 7 confirmed it was awarded a transport and installation (T&I) contract for approximately 98km of flexible pipes, 30km of umbilicals and associated subsea structures.

Other notable contract awards recorded during the period under review include reports that OneSubsea will manufacture and supply 16 subsea trees and associated equipment for Petrobras’ Buzios-10 project in the Santos Basin, offshore Brazil. Initial delivery of the subsea components is scheduled for 1Q 2025, with the P-82 FPSO to be deployed at the field currently under construction at Sembcorp Marine’s yard.

On the other hand, a prevailing high inflation environment continues to impact field development timelines as BW Energy stated that a final investment decision (FID) on its Maromba field offshore Brazil is subject to further cost optimisation. Meanwhile, TotalEnergies has also reiterated its concerns over the cost of its Cameia-Golfinho project amid anticipation of a final investment decision (FID) in 2023.

Looking forward, Westwood forecasts a further US$70 billion of offshore O&G-related EPC spend for the remainder of 2023, driven by c.250 subsea trees, c.5,000km of subsea umbilicals, risers and flowlines (SURF), c.6,600km of pipelines, c.230 fixed platforms and 17 FPS units. Key projects anticipated to be sanctioned in 1H 2023 include Eni’s Baleine Phase II development (Ivory Coast), Petrobras’ Sergipe-Alagoas (Brazil), ExxonMobil’s Uaru (Guyana), Mellitah’s Structure A & E (Libya) and Qatar Energy’s North Field South expansion project.

Offshore Rig Update

The global committed jackup count totalled 398 units in February, one rig lower than the previous month. The marketed available and cold stacked jackup count now stands at 40 and 55, respectively. Marketed, committed utilisation dipped by 1% to 91%, while total utilisation sustained at 80%. During the month, a total of 10 new contracts were awarded and three contract options were exercised, amounting to 4,967 days (13.6 rig years). Among the more notable fixtures were new multi-year deals from Saudi Aramco to Valaris for the Valaris 108 and Valaris 76, with work commencing in 2023 and 2024, respectively.

The global committed semisubmersible (semi) count grew by one to 67 during February. There are 13 available and 15 cold stacked rigs remaining in the fleet. Marketed, committed utilisation and total fleet utilisation rose to 83% and 70%, respectively. Apache and Well-Safe Solutions agreed on a multi-year framework agreement to decommission wells in the North Sea for a period of three years firm plus two-year options for both the Well-Safe Guardian and Well-Safe Defender.

Finally, drillship demand grew by three units to 81 over the month, leaving only two marketed units available plus 14 rigs cold stacked. Marketed, committed utilisation and total fleet utilisation grew to 97% and 84%, respectively. There were four new contracts awarded and five options exercised in February, totalling 4,092 drilling days (11.2 rig years). Three Stena Drilling rigs were awarded work, including a two-year contract for the Stena IceMAX with BP in the US Gulf of Mexico.

Offshore Wind Update

Since the last update, Vestas has been selected as the preferred turbine supplier for the 600 MW Wando Geumil wind farm, located offshore South Korea. Under the agreement, Vestas will supply a total of 40 V236-15 MW turbines, and it will also provide 20 years of operation and maintenance service for the wind farm once it comes online.

Vestas has also been selected by RWE and Northland Power as the preferred turbine supplier for the 225 MW Godewind and 435 MW Nordsee 2 wind farms, located offshore Germany. The V236-15 MW turbine model will be delivered to the two wind farms, subject to a successful FID being taken on the projects.

Dominating headlines was news in the US, with the state of New Jersey opening its third offshore wind solicitation. Approval was granted for this third round by the New Jersey Board of Public Utilities (NJBPU), with applications being accepted between 6 March and 23 June 2023. New Jersey is aiming to awarded between 1.2 GW and 4 GW of offshore wind capacity in this latest solicitation.

Finally in Germany, an additional four offshore wind project site tenders were launched by Germany’s Federal Network Agency. The areas are the 420MW N-3.5, 480MW N-3.6, 630MW N-6.6 and 270MW N-6.7. Bids will be based on qualitative and quantitative criteria. Up to 60 points will be awarded for the bid value. The deadline for the submission of bids is 1 August 2023.

STATS & ANALYTICS

PROVIDED BY www.westwoodenergy.com www.travelctm.co.uk

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.