Aberdeen’s Elemental Energies and Archer have formed a joint venture to pick up plugging and abandonment work in the North Sea as decommissioning spending is set to double.
The well engineering, subsurface and project management firm, Elemental Energies, shared that the move sets in stone a long-term partnership with the drilling and well services company.
An Elemental Energies spokesperson told Energy Voice: “The JV is set to expand our decom project activities as we bring on further joint venture work in the North Sea and globally.
“The JV will have the ability to support operators from the earliest project stages, leveraging the strengths of both companies to deliver the most suitable methods and technologies for each project.”
The well engineering firm currently employs 200 people in the sector, however, “this is expected to increase in due course,” the spokesperson added.
The duo is currently pursuing plugging and abandonment (P&A) contracts in the North Sea.
Dag Skindlo, chief executive of Archer, said: “We acknowledge that some customers are looking to approach P&A differently, and the critical importance of offering a flexible solution to P&A services.
“This joint venture will help deliver highly efficient planning and design, with the ability to integrate best in class barrier philosophy with deep knowledge of most effective methods to plug and abandon various well types.
“Ultimately, this will help drive down costs of permanent P&A for our clients around the world.”
The North Sea Transition Authority estimates £21 billion of UK offshore decommissioning spending in the next decade.
Elemental Energies and Archer look to take advantage of this as their tactic sets out to boost innovation and cost reduction.
Mike Adams, chief executive of Elemental Energies, commented: “There is a close strategic and cultural alignment between our companies, built around a successful track record of working together on joint projects.
“For P&A to work, it needs long-term and highly efficient solutions. This JV will bring that longevity to clients, through a mutual commitment between two long-term partners, and a joint venture team that is entirely dedicated to driving efficiency in P&A.
“Our partnership is a natural evolution of our relationship with Archer, and we are already actively supporting operators on P&A projects in the North Sea.”
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