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BP Extends LWI Contract with Island Offshore

Island Offshore, a leading name in global Light Well Intervention (“LWI”) activities, has been awarded a major contract extension with BP Exploration Operating Company Ltd.

The two-year contract extension, covering 2014 and 2015, has been awarded to Island Offshore and the North Sea RLWI Alliance, which operates three monohull vessels specially designed for well intervention tasks. Island Offshore’s Island Constructor – a 120m long, 8,200 ton, state-of-the-art Ulstein built X-Bow vessel – will perform the scope of work for the client.

Commenting on the award, Robert Friedberg, Managing Director of Island Offshore Subsea, says: “We are delighted to continue our successful operations for BP. This is an important extension of a contract that has now been in place for 5 years.”

“It demonstrates the strength of the relationship we have built with BP and the excellent standard of service that Island Offshore, and its partners in the North Sea RLWI Alliance, have delivered.”

He continues: “We have acquired some unique experience working with the BP team in the harsh environments West of the Shetland, and we look forward to building on that in the future.”

The value of the new contract is approximately NOK 0.5 billion (USD 86.5 million) and includes options for NOK 0.75 billion (USD 129.8 million).

The North Sea Alliance was formed in 2004 to provide integrated wireline services to the growing subsea intervention market. The Alliance performs between 60-70 well interventions each year, providing services such as scale milling, gauging and logging operations, plug setting and re-perforating requirements. Island Offshore and the North Sea RLWI Alliance are currently the world leading riser-less wireline intervention,(“RLWI”), provider. To date the partners have performed close to 250 well interventions.

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Norway: FMC to Provide LWI Services to Statoil

FMC Technologies, Inc., a global provider of technology solutions for the energy industry, has signed two five-year contracts with Island Offshore Management AS to supply Light Well Intervention (LWI) services for use by Statoil in the North Sea, contingent on approval from Statoil’s partners. Each contract contains options for two, two-year extensions.

FMC’s LWI services enable cost effective intervention and maintenance operations to be performed on existing subsea wells, resulting in higher recovery rates and accelerated production volumes in mature subsea oil fields. The contracts will commence when the existing LWI contracts between the companies expire in 2015. The well intervention activities will be conducted from two Island Offshore vessels, the Island Frontier and the Island Wellserver.

“Reducing the cost of operations and increasing oil recovery are two key benefits of the LWI system,” said Tore Halvorsen, FMC’s Senior Vice President of Subsea Technologies. “Demand for these services will continue to grow as the number of subsea wells increase, and we are pleased to continue to support Statoil with our LWI services.”

Norrway’s oil giant Statoil yesterday awarded contracts for new light well intervention (LWI) vessels. These “category A” units will contribute to increased recovery from Statoil’s approximately 500 operated subsea wells on the Norwegian continental shelf (NCS). Statoil has awarded contracts to Island Offshore Management and Eide Marine Services for the charter of a total of three LWI vessels.

“These contracts prove that Light Well Intervention will also in the future be a common part of oil and gas recovery on the Norwegian Continental Shelf. Island Offshore is proud to announce another milestone as a validation of our efforts and investments in this market segment,” commented Robert Friedberg of Island Offshore.

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Statoil Charters Light Well Intervention Vessels to Increase Recovery

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Statoil has awarded contracts for new light well intervention (LWI) vessels. These “category A” units will contribute to increased recovery from Statoil’s approximately 500 operated subsea wells on the Norwegian continental shelf (NCS).

Statoil has on behalf of relevant licensees awarded a contract to Island Offshore Management and Eide Marine Services for the charter of a total of three LWI vessels.

These purpose-built vessels are used for performing light well interventions, well operations and well maintenance without a riser-based system. Statoil can reduce well intervention costs by about 60% by utilizing a LWI vessel instead of a conventional rig.

“Performing these types of conventional jobs on subsea wells with low volumes of oil in place is expensive. The LWI vessels ensure both cost-efficient and safe operations,” says Statoil’s head of drilling and well Øystein Arvid Håland.

“Having more and new vessels of this category also helps increase recovery from fields on stream by opening new zones in the well, and stopping water production downhole.”

The contracts are worth a total of NOK 9.4 billion (USD 1.57 billion).

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Island Offshore vessels Island Frontier and Island Wellserver, which already have contracts with Statoil, have been awarded new five-year contracts. Eide Well Intervention, a new supplier in this segment for Statoil, has been awarded an eight-year contract for their new build, which employs a completely new technology.

The contracts with both companies come into effect in the spring of 2015, and include two options to extend for another two years.

A growing number of discoveries are developed via subsea wells, and it is important both to have equipment capable of maintaining these and to avoid using conventional drilling rigs for this type of work.

The rig market on the NCS is characterized by an aging rig fleet, and it is necessary to ensure sufficient and adequate rig capacity at sustainable rates. To address this, Statoil has put light LWI vessels – category A units – into service on a large scale.

“We have great ambitions and a long-term perspective on the NCS. Using purpose-built rigs and vessels in our operations is an important part of Statoil’s rig strategy. The high number of subsea wells in the future will require maintenance, and we are securing capacity in order to meet this need,” says Statoil’s chief procurement officer Jon Arnt Jacobsen.

“Island Offshore has delivered solid services and we expect the same going forward. At the same time we are pleased to have increased the number of suppliers in this market, and through the Eide Well Intervention newbuild we are also employing the latest available technology. Together these three vessels will provide us with an efficient service fleet for light well intervention services.”

Statoil has been pursuing riserless well intervention in subsea wells since 2000, and the technology has steadily improved.

The category A units will perform services for Statoil and the partners on the Åsgard, Norne, Gullfaks, Oseberg, Heidrun, Snøhvit, Tyrihans, Tordis/Vigdis, Snorre, Statfjord and Sleipner fields.

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LWI Vessels: Important Tool for Increasing Recovery

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Statoil is cutting the costs of increased recovery from fields in operation by hiring in light well intervention vessels. As of December Statoil has three light well intervention vessels in operation.

Statoil awarded Island Offshore a framework agreement earlier this year for light well intervention (LWI) services from their Island Constructor vessel.  The new vessel is set for operation in December, and is Statoil’s third light well intervention vessel in operation on the Norwegian continental shelf (NCS).

Light well intervention vessels – known as cat A – are an important tool to increase recovery from the fields on which Statoil operates.

Compared with conventional drilling units, these LWI vessels reduce the cost of well interventions substantially. Reduced well intervention costs also helps increase the number of interventions.

“Performing conventional jobs of this kind for subsea developments in areas with low volumes of oil in place has been expensive,” says Statoil drilling and well technology operations manager Øyvin Jensen.

“To address this, Statoil has put LWI vessels into service on a large scale. This is of high value to us, both in terms of efficiency and cost reduction.”

Light well intervention vessels are an important tool in Statoil’s toolbox to increase field recovery. A growing number of discoveries are developed via subsea installations. At the same time, production from mature fields is declining.

Wells need workover in order to maintain their output. These have historically been expensive operations on subsea developments.

Utilising light well intervention vessels contributes to a more cost-effective maintenance of subsea wells, improves drilling efficiency, and provides the potential to offset rig capacity.

Statoil has pursued riserless wirelining in subsea wells since 2000, and the technology has steadily improved.

Statoil issued a new tender for light well intervention vessels this autumn. The invitation to tender was issued in October, and the bids are due in December this year.

“We already have three light well intervention vessels in our portfolio. The new tender process will cover our needs for light intervention services when the existing vessels come off contract,” says Statoil vice president for drilling and well procurement Terje Rognan.

“We are tendering for a minimum of two such vessels and are open for long-term commitments. With 487 subsea wells on the NCS, it is evident that this is an important market segment for Statoil going forward and subsequently of high interest for the supplier industry and shipowners.”

Facts

  • Light well intervention vessels are connected to a well with the aid of a toolbox lowered to the seabed
  • The vessels can carry out logging and wireline operations, but not drill
  • During LWI, downhole equipment is remotely operated via a wireline from the surface and – unlike rigs – without a riser.
  • Currently three LWI vessels – Island Wellserver, Island Frontier and Island Constructor – have been contracted by Statoil on the NCS.

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Well Enhancer en route to Africa for region’s first LWI project

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The Well Enhancer is making her African debut this winter to complete the region’s first ever Light Well Intervention (LWI) campaign offshore Equatorial Guinea.

The campaign will include another first for the Well Enhancer as she will be undertaking her deepest project to date at approximately 1,540 ft (470 m) water depth. The Well Enhancer’s current specification allows her to work in water depths of up to 1,970 ft (600 m).

The Well Enhancer’s arrival represents the emergence of the LWI market for a region which is experiencing rapid development.

The Well Enhancer’s strong track record and Well Ops UK’s reputation as a market leader in providing subsea well intervention services in the North Sea was key in obtaining the award for the African project. This is because Well Ops North Sea clients also own significant interests offshore West Africa and key personnel already understand the methodology and technology behind riserless well intervention operations.

The campaign will include remedial workscopes on six wells by way of a subsea tree replacement, production enhancement, well maintenance and well integrity work.

The Well Enhancer, launched in 2008, provides oil and gas production companies the opportunity to undertake a multitude of workscopes across a number of wells in various locations with the ability to transit between wells and gain access to a well via a Subsea Intervention Lubricator (SIL) well control package to intervene.

This method is both a much quicker and less expensive option to the conventional approach of using a drilling rig. Using LWI vessels also frees up drilling rigs to undertake the operator’s drilling, completion and well work-over projects.

The Well Enhancer, as with sister vessel Seawell, can also provide the operator with up to an 18-man saturation diving system rated for 984 ft (300 m). This offers clients increased options and flexibility when undertaking well work and can support light construction and inspection, repair and maintenance projects within the field, thus maximizing the capabilities of the assets.

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