An Aberdeen company is involved in the development of a new rig that could lower well plugging and abandonment (P&A) costs by up to 30%.
The DP2 Apollo jack-up rig is currently under construction in Croatia and is slated for completion later this year.
Raphael Denis of EverSea, an offshore marine engineering firm which is part of Belgium’s Deme Group, said Apollo would be used in the oil and gas and wind industries.
Speaking at the Southern North Sea Conference and Exhibition in Norwich, Mr Denis said Axis Well Technology was advising on the equipment and modifications Apollo would need for carrying out well P&A projects.
Axis chief executive Jim Anderson said: “We are supporting the customer on the technical feasibility for the vessel for subsea decommissioning work.
“The client wants a vessel that can do various tasks including well P&A.
“This is a small mobile piece of kit that can get in and do well P&A more cost effectively.
“We’ve got the skills for decommissioning and well intervention and they’re tapping into our knowledge of what can and can’t be done.”
Nearly 400 wells are forecast for P&A in the southern North Sea and Irish Sea over the next decade, which presents opportunities for supply chain companies.
But decommissioning will not provide any added value for operators, so reducing well P&A costs will be a key focus for the sector in the years ahead.
Oil and Gas UK’s 2016 Decommissioning Insight report forecasts £17.6billion of spending on the sector between 2016 and 2025.
Well P&A is estimated to require the most significant spend, accounting for 47% of the total.
Mr Denis said there was a gap in the market for Apollo to fill.
He said rigless technology was not yet proven on the most expensive and complex of wells subsea, while light vessels had limited capabilities in shallower depths.
Mr Denis said the Apollo rig would be self-propelled and capable of moving more quickly between wells than traditional jack-ups.
He said the rig would be capable of reducing the cost of well P&A by 20% to 30%.
The vessel will be able to operate at depths of 55metres year round and has 2,000sq metres of deck space for storing equipment. It will also be able to accommodate 92 people.
It will also have an 800 tonne crane for installing wind turbines.
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