Aker Oilfield Services has bagged a $250million minimum, long-term contract with Total to provide subsea intervention services using its purpose-built intervention vessel, Skandi Aker.
This agreement is said to mark a breakthrough for vessel-based intervention services in deep and ultra-deep waters and is in line with ambitions mapped out in the mid 1990s regarding the need for the industry to develop a credible, cost-effective means of servicing production wells in regions such as offshore West Africa.
The agreement will run for two years initially, with options for three further one-year periods. This suggests that the entire package will be worth at least $625million should all options be exercised.
The ship is expected to begin operations offshore Angola during Q1 next year.
Skandi Aker is described as the first well service vessel of its kind capable of performing riser-based subsea well intervention in deep and ultra-deep waters.
Traditionally subsea well intervention has been performed from drilling rigs. But hefty day rates compared with vessels have made such operations very expensive. Moreover, rig availability has been limited.
The increasing water depths also mean that it has been necessary to develop alternative technology and more cost-effective systems to access deepwater wells.
Karl Erik Kjelstad, president of Aker Oilfield Services said: “Skandi Aker is able to perform deepwater well intervention services that oil companies previously needed drilling rigs to conduct.
“More importantly, we do it quicker and more cost effectively, which will increase the frequency of intervention operations and enable our customers’ subsea wells to produce more oil and gas.”
Skandi Aker will perform subsea intervention activities related to well re-entry for testing operations and for interventions using wireline, coil tubing, and well stimulations, as well as the running/lifting of subsea trees with cable or workover riser, and suspension or plug and abandonment of wells.
Provision of the downhole well services, well test services, and ROV services will be provided through separate contracts, outside Aker Solutions’ scope of services for Total E&P Angola.