26 minute read

Cerulean Winds set out ambitions for North Sea Renewables Grid

Green infrastructure developer Cerulean Winds recently unveiled plans to develop the North Sea Renewable Grid (NSRG), a £20 billion integrated green power and transmission system, powered by floating wind, that oil and gas platforms will plug into for clean power.

Partnering with Frontier Power and uniting a dedicated consortium of world leading industrial partners, the development will be one of the country’s largest-scale infrastructure projects designed to deliver on the energy sector emissions reduction targets.

Founders, Dan Jackson and Mark Dixon have substantial expertise in the development and delivery of major offshore and deepwater energy projects and have founded and developed businesses in the global energy arena over 20-plus years.

The NSRG will see Cerulean develop three 333 square kilometre sites of hundreds of floating wind turbines, producing multiple gigawatts (GW) of electricity, after being offered the lion’s share of seabed leases in the recent Crown Estate Scotland INTOG leasing round.

Dan Jackson sheds further light on the development and its implications for the sector, economy and supply chain.

What is the North Sea Renewables Grid?

The North Sea Renewables Grid is a largescale offshore renewable power grid that will have the ability to provide clean power from floating wind to oil and gas platforms anywhere in the UK Continental Shelf.

It will link hundreds of offshore turbines with high-voltage cables to transmit green energy to oil and gas production facilities in the North Sea.

We plan to develop the grid in phases, with phase one focused on providing a clean power source for the North Sea’s oil and gas industry. Later phases will help to further commercially scale up renewable power for homes and businesses across the UK and beyond.

The scale and location of our three floating wind sites in the Central North Sea enables a basin-wide transmission approach, which will allow oil and gas operators a flexible option for removing millions of tonnes of production emissions by trading gas and diesel generation for a flexible, cost effective and cleaner alternative.

Each windfarm site is located within 100km of the others and will be connected together to form the offshore ring main around the Central North Sea. A High Voltage Alternating Current (HVAC) transmission will provide availability and redundancy for maximising generation uptime. The scale allows for offtake to other parts of the North Sea through a new High Voltage Direct Current (HDVC) network.

Why is basin-wide decarbonisation important?

The sector has signed up to the North Sea Transition Deal (NSTD) targets, but the challenge now is decarbonising production at scale whilst continuing to prioritise UK energy security.

The targets set by the NSTD demand urgent action. Operators have made it clear they are ready to act now to achieve these goals but cannot do so without a dependable and costeffective solution in place.

We recognise that to achieve meaningful reductions at the pace required, a basin-wide solution is necessary. By taking this integrated approach, we are offering organisations a reliable and flexible power source which they can plug into once they have completed any necessary brownfield works and are ready to make the switch to renewable power.

What is the benefit to oil and gas operators?

Currently, there are limited options for operators to reduce their production emissions and scale is required to hit the 50% reduction by 2030 target set out in the NSTD. Our goal is to provide them with a risk-free solution that will allow them to switch to renewable power as soon as they are ready through standardised Power Purchase Agreements.

Having hundreds of turbines in place over three locations provides the baseline required to build out the grid with a level of consistency that is demanded by the oil and gas industry, this provides redundancy in supply. The basin-wide scale allows us to be reactive, while maintaining lower pricing and supply robustness. For the oil and gas companies, the diversity of offtake through the HDVC network provides robustness to the scheme and further lowers their offtake costs through simple economies of scale. The intent is to minimise the ‘infill’ power from the grid when the wind is not blowing, and the scale of the wind farms provides this.

What delivery partners does Cerulean have on board?

Our delivery consortium brings together a suite of tier-one industrial partners to develop, supply and install the NSRG. This includes NOV, Siemens Gamesa, Siemens Energy, DEME and Worley. Each partner brings a unique skill set to the project that will enable us to fast-track phase one of building out the grid. Never before in the UK has such a consortium been put in place at the early development stage, however this is necessary to provide the confidence the scheme can be delivered on schedule and to budget.

Each of our partners has experience delivering large-scale projects for the offshore oil and gas industry in the North Sea. Their understanding of the region and supply chain are invaluable in allowing us to deliver such an ambitious project at pace.

Why did Cerulean partner with Frontier Power?

Frontier Power was an easy first choice to partner with for this project. Their founders are both ex-National Grid senior executives and they have an impressive track record of delivering large transactions in the power sector, with over £1.5billion of offshore transmission assets under management. They have already delivered an interconnector between the UK and Germany and are developing a UK to Netherlands HVDC link.

The wealth of knowledge and experience they have accumulated assures us that they have the capabilities and prowess to facilitate power transmission on a mammoth scale.

Identifying and achieving regulatory and statutory changes, along with an in-depth insight into the UK grid access process from the team’s time working with the National Grid, provides us with great insight into how to seamlessly rollout grid access for clients across the North Sea. The strength of an integrated offshore transmission and floating wind development team is the key to success.

What timeline is Cerulean working to?

Our target is to have electrons flowing to meet the NSTD milestones for 2027 and 2030, which is crucial for both the UK and Scottish governments to demonstrate they are delivering on their climate change ambitions Further, we are aiming to build out before ScotWind developments start. This will allow the supply chain to respond, creating crucial partnering opportunities for the ports and getting the market ready to deliver floating wind at scale.

Early oil and gas electrification supports the country’s energy security, net zero action and delivers huge benefits to the supply chain and economy. We have fast-tracked phase one of the NSRG to prioritise this, to give the oil and gas operators access to green energy as quickly as we can, with flexibility and reliability. Work with end users has begun in earnest so that we can aim for the first power availability in 2027. Further phases will focus on exporting green power to the grids in UK and Europe.

What is the opportunity for Scotland and its supply chain?

It’s all about scale. The vast amounts of infrastructure required will provide a pipeline of work over many years and provide the opportunity for ports and yards to invest now in expansions ahead of ScotWind, getting the market ready to deliver.

Scotland is one of the most investable countries in the world for large-scale infrastructure in green energy because of its supply chain, which has built up an enviable legacy of expertise from responding to oil and gas projects over half a century.

By creating over 10,000 jobs, this type of ambitious renewable project will help scale Scotland’s green economy. It will make a material impact on the country’s emissions, removing millions of tonnes of CO2 a year to support a just transition. In total, the three windfarms alone will contribute over £12 billion GVA to the UK’s economy.

What’s next?

We will continue our engagement with the supply chain on the packages of work including the tri-floater and with the oil and gas operators on the impact we can make to their emissions reduction ambitions. We want to partner and help make this a smooth transition. We appreciate that the timescales are challenging for the operators and will bring our experience and flexibility to streamline this as much as possible.

Further down the line the direct export route to Europe is a huge opportunity for Scotland to be a globally leading exporter of clean energy, which will provide further economic value. Wind is a reliable source of energy in Scotland, particularly in the deeper offshore waters, so this is a real chance to set the North Sea up for providing the next half a century and beyond of secure energy production.

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Renewables giant Orsted wins first Danish carbon capture tender

Denmark-based player secures 20-year deal for Kalundborg

Hub that already has agreement with Microsoft

Global renewables giant Orsted has been awarded a 20-year contract from the Danish Energy Agency to establish a carbon capture and storage project, the Orsted Kalundborg Hub, to process CO2 from its wood chip-fired Asnaes Power Station in western Zealand and a straw-fed boiler at the Avedore Power Station near Copenhagen.

Denmark-based Orsted expects to capture about 430,000 tpa of CO2 at the hub — 380,000 tonnes from the Asnaes power station and 150,000 tonnes from Avedore — which will be liquefied and sent by ships to the Northern Lights offshore CO2 storage facility in the Norwegian North Sea, expected to be completed next year.

The company said the Kalundborg hub could potentially provide shipping for CO2 produced by third-party emitters.

The project has support from Microsoft, which signed agreements in 2021 with Orsted and Aker Carbon Capture that will see the US technology company purchase 2.76 million tonnes of biogenic carbon removal over 10 years.

Commercial value

Orsted said the agreement “demonstrates the commercial value associated with carbon capture and removal.

“Given the nascent state of bioenergy-based CCS, Danish state subsidies and Microsoft’s contract were both necessary to make this project viable.”

Construction of the carbon capture units at Asnaes and Avedore is expected to begin in June this year.

CO2 from the Avedore power station will initially be carried by truck to the Asnaes facility “until a shared pipeline infrastructure across Zealand has been established”, Orsted said.

The company said the straw for the Avedore station is an agricultural by-product and the approximately 380,000 tonnes of wood chips burned to generate heat, electricity and process steam at Asnaes “come from sustainably managed production forests and consists of residues from trimming or crooked trees”, primarily in the Baltics.

“Capture and storage of biogenic CO2 is an important tool to mitigate climate change, and we look forward to initiating the work,” said Ole Thomsen, senior vice president and head of Orsted’s bioenergy business, adding that the company plans to have the CCS systems up and running “at the beginning of 2026”.

Italian offshore engineering and construction player Saipem has landed two new contracts worth a total of around $850m.

The first contract involves the second phase of the Sakarya gas field development project in the Turkish Black Sea waters. The work scope covers engineering, procurement, construction and installation of a 175 km long pipeline at 2,200 m water depth. The offshore work will start in the summer of 2024 and will be executed by Saipem’s flagship vessel Castorone. Saipem recently completed the first phase of the project, it secured from Turkish Petroleum OTC in 2021.

The Milan-headquartered firm also revealed a contract with EnQuest for the decommissioning of the existing Thistle A platform, in the UK sector of the North Sea. The deal includes engineering, preparation, removal and disposal of the jacket and topsides, with possible extension to further subsea facilities. One of the largest semisub heavy lift vessels Saipem 7000 has been earmarked for the project.

Petrofac surges on $1.5bn contract award

Petrofac surged on Thursday after it said that its joint venture with China Huanqiu Contracting & Engineering Corporation (HQC) has been awarded an engineering, procurement and construction (EPC) contract valued at around $1.5bn by STEP Polymers SPA.

The oilfield services company said this is a "significant" downstream project, which will form part of the Arzew Industrial Zone, located west of Algiers, supporting Algeria’s energy strategy.

Covering the design and build of two major integrated processing units, the contract includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year.

Chief executive Tareq Kawash said: "We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects."

At 0825 BST, the shares were up 9.4% at 72.45p.

Subsea7 awarded project offshore US Gulf of Mexico

Subsea7 today announced an award by LLOG Exploration Offshore, LLC as project manager for the Salamanca development project, which includes the Leon and Castile fields, in the US Gulf of Mexico. The award is defined as sizeable1.

The contract scope includes the installation of three infield subsea pipeline systems, as well as the design and fabrication of subsea structures. Subsea development will consist of two pipeline systems for the Leon field, located in Keathley Canyon 686, and one pipeline system for the Castile field, located in Keathley Canyon 736. The infield pipelines will produce and flow from wellsite PLETs to the Salamanca FPS in water depths ranging from 1,800 to 2,000 metres.

Additionally, the scope includes the installation of oil and gas export pipelines which depart from the Salamanca FPS and tie into existing pipeline transport systems approximately 48 kilometres away.

Project management and engineering will commence immediately at Subsea7’s office in Houston, Texas, with offshore activity expected to begin in 2024.

Allseas and Heerema bag Tennet platforms installation deal

Craig Broussard, Vice President for Subsea7 US said: “We are excited about the opportunity to work closely and openly with LLOG on this fastpaced, greenfield development. Our strengths as a collaborative partner and the versatility of our fleet will be instrumental in ensuring predictable, safe, and timely project delivery.”

Offshore construction specialists Allseas and Heerema Marine Contractors (HMC) have secured multi-year framework agreements with transmission grid operator TenneT to transport and install at least 14 supersized offshore wind converter stations in the Dutch and German parts of the North Sea.

Under the framework deal, which covers at least twenty-eight slots for fourteen jackets and the same number of topsides, Heerema has been awarded about 60% of the available slots, while Allseas has secured approximately 40% of the slots.

The Dutch-based HMC will deploy its semisubmersible crane vessel Sleipnir as well as an owned floatover barge, and the Swissheadquartered Allseas will use its single-lift installation vessel Pioneering Spirit for the installation of the jackets and topsides. Boskalis will act as a subcontractor to Allseas, building one or two new transport vessels.

In April this year, Belgium, Denmark, Germany, the Netherlands, France, Ireland, Luxembourg, Norway and the UK committed to jointly install at least 120 GW of offshore wind power capacity by 2030. TenneT will account for about one-third of this volume.

A leading provider of industrial inspection, maintenance and repair services is set to further its commitment to the energy transition thanks to the launch of a new division which will further enhance its position in the renewables market.

IM&R leader TRAC Energy has a long history of successfully supporting offshore energy operations and has just unveiled the addition of a renewablesfocused talent acquisition arm. Recruitment

New senior financial appointment to drive continued expansion at North Star

North Star, the UK’s leading offshore infrastructure support vessel operator, has appointed experienced financier, Lesley Dunn, to the newly created role of head of financial planning and analysis to lead the drive for continued growth.

Lesley, a chartered accountant, brings a wealth of knowledge and expertise including more than 25 years’ working in the corporate finance sector. Having established her career with Simmons & Company, now Piper Sandler, an investment bank and advisers to the energy industry, Lesley has participated in over 20 transactions with a combined value in excess of (US) $2bn.

She joins North Star after running her own financial consultancy business for seven years, and most recently acting as a senior specialist for engineering and consultancy business Vysus Group.

In her new role as head of financial planning and analysis, Lesley will be based in the group’s head office in Aberdeen and will work closely with the feature new senior hires and appointments within organisation, please contact specialist John Lamond has been brought on board to head up the new service in a role that will be pivotal in sourcing candidates for TRAC’s renewables projects and providing external clients with a professional recruitment solution.

John’s career spans almost two decades and he brings to the team a wealth of recruitment and business development experience across the engineering, construction, industrial and offshore sectors and this will be crucial to driving future growth.

John is joined by recruitment consultant Rebecca Wilson and the pair will build the team to keep pace with activity in Scotland and beyond.

The appointments continue a hiring strategy that has seen recent expansion of service delivery (project management, engineering, analytics and technology) and senior management teams. Further appointments are planned to support new technical products and services and TRAC Energy is currently participating in the Fit4Offshore Renewables scheme.

Commenting on the launch, TRAC Energy Head of Renewables Joel Telling said: “We have a long-standing commitment to creating an expert team with a shared vision to deliver best-in-class renewables solutions. Expansion of that team company’s chief financial officer and chief strategy officer. She will be charged with the management of lender and shareholder information requirements, including detailed financial modelling, currency and interest rate hedging and cash management, in addition to supporting long term business planning for newbuild capex approvals and mergers and acquisitions (M&A).

Lesley said: “I’m thrilled to be joining the team at North Star at a time when it is experiencing considerable growth across the renewable energy sector and looking to expand its hybridelectric offshore wind vessel fleet and services across Europe.

“Following a £140million worth of investment last year, including £50million from Scottish National Investment Bank, North Star is in a financially robust position to further progress its new build programme and seize new market opportunities.

“I’m looking forward to supporting the group as it continues to grow, expanding its reach across the sector, and helping North Star bring its first-class capabilities and innovative solutions to new and returning customers, backed by strong commercial acumen.”

In his new role, Andy Cuniah will work towards the EIC's goal of helping its member companies to export, diversify, and grow in a time of global Net Zero and transition conversation.

"I am excited at the opportunities ahead for the EIC," commented Mr Cuniah. "The EIC has always had a bold ambition, and I look forward to working with our member companies to deliver on our three pillars of Export, Diversify, and Grow. This is more important than ever in a time with a global Net Zero and transition conversation.” to offer professional talent acquisition alongside project IM&R services is a natural extension and will make a compelling value proposition for our current and prospective clients.

“As well as finding and recruiting trained and experienced staff for projects we’re involved in ourselves, our services will be in demand across the wider industry as renewables projects, and the need for good people who can hit the ground running, continue to gather pace.”

Head of Talent Acquisition (Renewables) John Lamond added: “This is an exciting time to join the TRAC Energy renewables team and I look forward to using my years of experience to help unlock the potential of this new division. TRAC Energy already has a range of highly transferrable products, services, experience, knowledge and skills which fit well within the renewables sector, so it makes sense to take all of that into the sphere of talent acquisition.

“In terms of our own team growth, I am also passionate about training and developing the next generation of recruiters and to working closely with training providers to gain the best candidates available for TRAC Renewables’ projects and the external market. Our business will open up vital skill transfer opportunities for those seeking to begin new chapters in their energy sector careers.”

Bechtel Limited's supply chain manager, Andy Cuniah, has been appointed as the new chairman of the Energy Industries Council, the world leading trade association for the energy industry. His appointment coincides with the EIC having been awarded last week the prestigious King's Award for Enterprise: International Trade.

“With offices in Rio, Houston, Kuala Lumpur, Dubai and London busier than ever, with the roll out of more countries and areas in EICSupplyMap database of supply chain companies, the organisation is continuing to grow and represent the members at all levels and regions,” he continued. “I would like to extend my thanks to Hugh Saville, my predecessor, who has guided the EIC through COVID, lockdowns and the most recent global disruptions.”

EIC CEO Stuart Broadley commented on the appointment, "We're thrilled to welcome Andy Cuniah as the new Chairman of the EIC. His experience in the energy industry, combined with

Fraser Dobbie, chief strategy officer of North Star, welcomed Lesley to the team.

“As we look to the future and begin to plan and invest in new fleet constructions, Lesley brings with her an exceptional track record for delivering results during critical growth periods including expansion, acquisition, investment and internationalisation. “Lesley’s key skills in creating financial models to support decision making will be invaluable to the team as we plan our future in the energy industry.” his passion for our mission of promoting the UK's energy industry abroad, make him the ideal leader for our organisation."

Mr Broadley also expressed his gratitude for the service of outgoing Chairman Hugh Saville, stating, "We would like to extend our thanks to Hugh Saville for his exceptional leadership during his tenure as Chairman. Over the years, his support has been invaluable in helping the EIC advance the energy industry's supply chain interests and support members. His unwavering dedication has helped navigate disruptions and uncertainties, allowing EIC to continue its crucial work."

The EIC represents over 900 supply chain companies, globally, across the energy industry, and provides a range of services to its members, including market intelligence, export support, and networking opportunities. The EIC is continuing to expand its global presence to serve its members. Last week, the organisation announced that it had expanded its operations in Saudi Arabia with the appointment of the first Saudi-based membership manager.

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John Begley, Managing Director

John is a Managing Director for Norman Broadbent Group and leads our Industrial Practice. He has over 20 years’ experience across executive search, research & insight, and leadership advisory (leadership development, psychometric evaluation, and leadership assessment).

During his career, John has worked with business leadership teams across the US, EMEA and more recently the Asia Pacific region, primarily in the Industrials space.

John works closely with companies of all sizes and ownership structures including pre-revenue start-ups, private equity-backed, privately, and publicly owned, AIM listed, and International PLCs. Besides his strong background in executive search, John has pioneered the use of leadership advisory services around succession planning, and the on-boarding of senior and high potential future leaders.

John is qualified in a variety of psychometric evaluation techniques and assessment methodologies.

He is a Non-Executive Director at Chariot, where he was instrumental in the board’s decision to change strategy from being an oil and gas explorer into a company pursuing transitional gas, power and green hydrogen projects across Africa.

Lynda Armstrong, Chair of the ECITB Board, said: “Andrew joins us at a time when there are critical challenges facing our industry. Paramount is the need to ensure employers have the skilled people needed in the face of a tight labour market. As an industry, we must do more to attract, develop and qualify new entrants while continuing to train our existing workforce.

John Begley, Managing

Director

Andrew Hockey will join the Engineering Construction Industry Training Board (ECITB) on 1 June as CEO.

The ECITB’s former Director of Operations, Andy Brown, has been Interim CEO since Chris Claydon’s departure earlier this year. Andy will retain Accounting Officer responsibilities of the industryled skills body until 5 July when Andrew will officially take over the helm.

Andrew comes with four decades of experience, latterly having held numerous directorships and CEO roles across the energy sector.

Andrew has worked in the UK and internationally with European majors Petrofina and ENI and with US and UK independents Triton, Monument and Lasmo. Until the end of 2021 Andrew was a Non-Executive Director at UK oil and gas exploration and production company, Fairfield Energy, which he co-founded in 2005 and helped to transition to a decommissioning company in 2016.

Most recently Andrew was CEO at IOG plc, a low carbon footprint gas developer and operator in the UK Southern North Sea.

5

Calum MacPherson, has been named chief executive

of the Inverness and Cromarty Firth Green Freeport

The Inverness-born, Calum MacPherson, has been named chief executive of the Inverness and Cromarty Firth Green Freeport in what he describes as a “fantastic opportunity.”

The Aberdeen University law graduate worked in a tax practice in the granite city where he focused primarily on clients in the oil and gas sector but most recently, he has held various positions at the construction firm, Robertson Group.

The latest role Mr McPherson has held at Robertson Group was that of director of capital projects, taking up the job in November 2022. He has worked with this firm for almost 12 years.

“Having led major energy-sector organisations, Andrew understands the industry and the challenges in terms of skills shortages and training needs. I cannot think of a better individual to work with us and steer us to achieve the next phase of our mission and vision.

“I would like to thank Andy for taking on the reins as Interim CEO while the Board recruited the permanent replacement for Chris.”

Andrew Hockey said: “I am delighted to be taking on this role at this time. The engineering construction industry faces some major challenges – not least in securing the skills needed for the country to meet its Net Zero aspirations.

“There are huge infrastructure projects on the horizon including multiple carbon capture, hydrogen and fixed offshore wind projects in the design or planning stage, and floating offshore wind projects under discussion. The workforce as it stands right now would be unable to meet this demand.

“Whilst my immediate focus will be to deliver the ECITB Strategy 2023-2025 that was developed in partnership with industry, training providers and the UK, Scottish and Welsh governments – I will also be looking to the future.

Mr McPherson said: “This is a fantastic opportunity to lead an organisation that will play a central role in creating exciting careers for people across the Highlands and further afield, attracting large-scale international investment and playing a central role in delivering net-zero; and putting Inverness and the Cromarty Firth firmly on the renewables map globally.free article.

ICFGF Chair, Jim Smith, added: “As you would expect, the recruitment for a Chief Executive for ICFGF was an extensive selection process.

“We needed someone with the skillset and background to be able to hit the ground running.

“We are delighted to have attracted an individual of the calibre and experience that Calum brings.

“His knowledge will be a significant advantage allowing the Inverness and Cromarty Firth Green Freeport to deliver on the ambitions o

Essar Oil (UK) Limited, the leading downstream energy company, has announced the appointment of Tony Fountain, managing partner at Essar Energy Transition, as an non-executive board director. Coming at a key time for Essar as it delivers on its investment plans of transitioning to be amongst the first low carbon refineries globally, Tony’s appointment will support the delivery of Essar Energy Transition (EET) ambition to lead the UK energy transition. EET will be investing US$3.6 billion in developing a range of low carbon energy transition projects over the next five years, of which US$2.4 billion will be invested at the Essar site in Ellesmere Port, between Liverpool and Manchester.

Tony brings extensive manufacturing, marketing, specialist trading and transformation experience. Having begun his career at BP, Tony’s roles have included CEO of Refining and Marketing at Reliance Industries Limited as well as a period as CEO of the UK Nuclear Decommissioning Authority – with oversight for nuclear decommissioning. Tony then went on to apply this extensive operational, regulatory, and health and safety experience in a range of board positions, also applying his governance experience to companies operating in complex environments over three continents. This includes roles as Chair of Sellafield UK and of Nayara Energy Limited and as a non-Executive Director at ATCO Group.

Prashant Ruia, Non-Executive Chairman of Essar, said: “We would like to welcome Tony to Essar’s Board. He brings over 40 years of operational, regulatory and executive experience that will enhance our business at this vital stage in our transition.

“We are committed to leading the energy transition and Tony’s appointment will play a crucial role in achieving this ambition.”

Tony Fountain, Non-Executive Director of Essar, said: “I am pleased to be invited to Essar’s Board. The Company is committed to be amongst the first low carbon refineries globally and to play a key role in the decarbonisation of the North West.

“The task at hand is a vital one, to secure the refinery’s performance today to enable it to act as a catalyst for the levelling-up investment the region needs and to deliver on Essar Energy Transition’s commitments.

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Well-Safe Solutions provides a ground-breaking approach to the safe and cost-efficient decommissioning of on and offshore wells. We offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.

Well-Safe Solutions debuts saturation dive spread capability on Well-Safe Guardian

Robin Kimber, Rig Manager of the Well-Safe Guardian, added: “The Well-Safe Guardian is the market-leading single-asset well decommissioning solution in the North Sea, with lightweight well intervention, saturation diving and full drilling rig capabilities.

“The dive spread system is designed to work in tandem with the Trendsetter Trident well intervention system previously announced by Well-Safe Solutions in 2022.

“The potential for simultaneous operations with both technologies onboard will unlock even higher levels of operational efficiency, further minimising our environmental footprint and reducing operational risk on behalf of our clients.

“We would like to thank all of our partners involved to date in the safe and successful design, fabrication and loadout of the saturation diving system.”

Well-Safe Solutions has unveiled a D300 saturation diving system aboard the Well-Safe Guardian, making the semisubmersible rig the only one of its type in the North Sea with this capability.

The custom-built dive spread, with capacity for up to 15 persons, enables safe access to legacy subsea wellhead and Christmas tree systems from the 1970s onwards which were originally designed for diver intervention.

Phil Milton, Chief Executive Officer at WellSafe Solutions, said: “With 48% of overall decommissioning expenditure in 2022 focused on well abandonment alone, Well-Safe Solutions has identified a clear market in mature basins such as the UK Continental Shelf for this technology.[1]

“The dive spread system installed on the Well-Safe Guardian is a cost-effective, flexible alternative to the industry standard, which typically sees a light well intervention vessel (LWIV) used to plug and lubricate the well before completing decommissioning operations with a standard semi-submersible mobile offshore drilling unit (MODU).

“Our ‘single asset solution’ offers an alternative to the conventional approach and does not require multiple vessel mobilisations and demobilisations. This results in lower operating costs, minimises the risk of weather-related disruption and boosts overall project efficiency.

“Recent engineering and comparative analysis studies have demonstrated the value this solution can bring to the wider decommissioning industry as it seeks to streamline processes and costs alike as part of the transition to net zero carbon emissions.

“Our data shows that the use of the WellSafe Guardian to plug and abandon (P&A) five wells over three fields in the North Sea generates a 15% total cost reduction and is 44 days quicker than using a LWIV and MODU pairing.”

“We are delighted to be able to bring this solution to market as part of our vision to become the industry’s well decommissioning partner of choice.”

The manufacture, transport and fitment of the dive spread was carried out at Burntisland, Rosyth and Methil ports on the east coast of Scotland.

Equipped with an environmentally-friendly electric bell-handling system and two hyperbaric lifeboats, the system is designed to enable diving operations to be carried out in support of well decommissioning.

Typical operations supported include cleaning, deconstruction, barrier testing, manual tree cap removal, reconfiguration of hydraulic controls and flowline removal.

Even greater efficiencies can also be realised as part of Well-Safe Solutions’ P&A Club; a campaign-based approach to well abandonment which batches and tackles wells in series without intervening returns to port.

Following further systems integration and testing, the Well-Safe Guardian will mobilise early summer 2023, returning to the Buchan field operated by Repsol Sinopec Resources UK to plug and abandon nine wells using the saturation dive system, the Trident well intervention system and the blow out preventer, realising the full potential of this single asset solution.

UK-based RockSalt Subsea will support Well-Safe Solutions with diving services and personnel during all saturated diving operations from the Well-Safe Guardian.

David Whitehouse, Chief Executive Officer of Offshore Energies UK, added: “The UK offshore energy industry has a long history of developing world-class solutions to the challenges it has faced and continues to face

“This latest development and adoption of technology on the Well-Safe Guardian from Well-Safe Solutions shows an absolute commitment to drive forward innovation to improve efficiency for the plug and abandonment of wells. These efficiency improvements will also have a positive impact on safety and environmental performance

‘Petroleum unitisation, pollution prevention’ — NUPRC unveils

7 regulations for oil, gas industry

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed seven key regulations to further ensure the implementation of the Petroleum Industry Act (PIA) 2021.

Speaking at an event in Abuja on Thursday, Gbenga Komolafe, chief executive officer (CEO), NUPRC, said the signing of the regulations was in fulfillment of the mandate of the commission.

Komolafe listed the new regulations as the Nigeria upstream petroleum measurement regulations, 2023; production curtailment and domestic crude oil supply obligation regulations, 2023; frontier basins exploration fund administration regulations, 2023; Nigeria upstream decommissioning and abandonment regulations 2023.

Others are the significant crude oil and gas discovery regulations, 2023; gas flaring, venting, and methane emission (prevention of waste and pollution) regulations, 2023; and the Nigeria upstream petroleum unitisation regulations, 2023.

He said five regulations had earlier been successfully gazetted into law between June and October 2022.

“Gazetting the 12 regulations demonstrates the commission’s commitment towards providing a business-enabling environment in the Nigerian upstream oil and gas industry space,” he said.

Komolafe added that the seven new regulations signed are part of the 13 draft regulations that were presented for discussion “during the first, second, and third phases of our consultations with stakeholders between 2022 and 2023”.

‘BENEFITS OF THE NEW REGULATIONS’

Specifically, Komolafe said the Nigeria upstream petroleum measurement regulations will close the metering gap in upstream petroleum operations, encourage accelerated hydrocarbon measurement metering devices roll-out in upstream petroleum operations; and encourage the development of independent and competitive meters used in the upstream.

“Production curtailment and domestic crude oil supply obligation regulations, 2023. This will provide general rules for production curtailment and utilisation of the produced petroleum in relation to export and domestic crude oil supply obligations, pursuant to sections 8(c) and 109 of the act,” he said.

“Frontier basins exploration fund administration regulations, 2023. This will also provide the general rules for the exercise of the commission’s responsibilities with respect to frontier basins in Nigeria, pursuant to section 9 of the act and the administration of the frontier exploration fund. The aim is to encourage and attract investment to the frontier basins in Nigeria.

“Nigeria upstream decommissioning and abandonment regulations 2023. It seeks to ensure that decommissioning and abandonment activities are conducted in accordance with good international petroleum industry practices. The regulations also set the framework for the establishment and administration of a decommissioning and abandonment fund.

“Significant crude oil and gas discovery regulations, 2023, would ensure optimum exploitation of petroleum covered by petroleum prospecting licenses, granted under the act, by the retention of areas of significant crude oil discovery and significant gas discovery by a licensee for specified time in accordance with section 78 of the act.”

Komolafe also said the gas flaring, venting, and methane emission (prevention of waste and pollution) regulations seek to “reduce the environmental and social impact associated with gas flaring and venting of natural gas and fugitive methane emissions into the atmosphere, preserve and protect the environment”.

He said the Nigeria upstream petroleum unitisation regulations establish the “rules, principles, and procedures for the implementation of unitisation of oil and gas from a petroleum reservoir that extends beyond the boundaries of a licence or lease area into an area to which another licence or lease relates”.

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