Aberdeen-based Well-Safe Solutions — a major new entrant to North Sea decommissioning — has been set up to provide “a ground-breaking approach to the safe and cost-efficient decommissioning of sub-sea wells”.
The start-up company, which aims to attract £200 million in investment and create 400 new jobs, will offer a specialist well abandonment service that allows operators to meet the challenges and regulatory requirements of decommissioning, while at the same time significantly reducing their costs.
Well-Safe has secured funding from Scottish Enterprise, including investment from the Scottish Investment Bank and a regional selective assistance grant, in addition to the initial funding from major share-holders, which will enable the company to invest in assets and create jobs.
Bringing together a wealth of sub-sea oil and gas expertise plus experience with dedicated marine assets and equipment, Well-Safe will have a complete P&A (plug and abandonment) capability from front-end engineering and design to project execution.
Mark Patterson, executive director (pictured), said: “The liability for late-life non-producing assets remains with the operator.
It can be reduced via well P&A operations, but the timing of the decision to make these wells safe is heavily influenced by cost and the need for a new approach, working hand-in-hand with major operators.
“The market dynamics in oil and gas have changed significantly. Before the collapse in oil price, operators were focused on maximising production, costs were very high and assets were scarce, and with no real regulatory imperative, decommissioning was pushed back.
Cost and safety are still paramount, but operators are now having to face up to the well abandonment challenge. They need to prioritise decommissioning activity, and with an increasing stock of ‘shut-in’ wells, more incentives; low asset utilisation and therefore lower rates, the economics for P&A have become more compelling.”
Well-Safe is looking to acquire high-quality assets to carry out well abandonment work, including a semi-submersible rig, a jack-up rig and a light-weight intervention vessel.
Mr Patterson said: “As owners of these assets, we can guarantee that they will not be diverted to other drilling operations but will be used exclusively for P&A activity. With this certainty over availability, we can secure long-term commitments from operators and have full control over the scheduling of long-term well P&A campaigns.”