TSMarine Adds 5 Wells to North Sea Abandonment Program

TSMarine Ltd.

TSMarine (Contracting) Ltd has secured a series of new contracts to add five new wells to its North Sea multi-client well abandonment program.

In April this year TSMarine was awarded contracts by Tullow Oil and Centrica to decommission three Category 2 suspended subsea wells as part of a multi-client well abandonment program. The new contracts, awarded by Genesis, Perenco and DNO International ASA, bring the total value of the abandonment program to over £4 million.

With the program set to commence in Q3 2009, these three additional contracts bring the total number of wells for abandonment to eight, comprising five category 2 and three category 1 wells in the Southern and Central North Sea.

The campaign is designed to spread the mobilization and transit costs associated with decommissioning activity and will see the Aberdeen-based subsea service company mobilize a multi-purpose offshore support vessel to plug and abandon the eight suspended subsea wells over a 25 day period.

Offering a range of rigless well intervention, decommissioning and construction support solutions to the global subsea oil and gas industry, the Aberdeen-based subsea services contractor will lead the project to perforate and cement the wells, then sever and recover the wellheads. TSMarine will also be responsible for the recovery and disposal of residual oil-based muds.

As the lead contractor for the programme, TSMarine will project manage the campaign, develop the work scope, including but not limited to, developing the required tooling, selecting and managing sub-contractors, planning and executing the offshore operations. In addition, the project team will carry out well reviews, Hazard Identification and Risk Assessment (HIRA) and emergency response planning.

This program follows the success of a similar multi-client well abandonment program carried out by TSMarine in 2008 for BP, Perenco and Tullow Oil.

TSMarine's regional director for Europe and Africa, Tim Martin said, "These new contracts from Genesis, Perenco and DNO International ASA underline the value of a multi-client approach to decommissioning activity. We developed this approach to deliver cost benefits to companies. To plug and abandon eight wells in one mobilization, means we really can deliver true benefits.

"The trend for multi-client well abandonment projects is increasing, primarily because operators are sharing fixed costs with each other and realising the cost savings that can be achieved from a single mobilization.

"We are forecasting continued growth in this niche market in the coming years and we are well positioned to support operators effectively manage decommissioning operations. This project emphasizes our ability to offer operators cost effective, bespoke well abandonment and decommissioning programs that deliver value.”

In less than four years, TSMarine has established itself as a leading player in the niche subsea rigless intervention and decommissioning market on a global basis. Reporting a turnover of £73.8 million in 2008, the company has approximately 200 employees worldwide, with offices in Aberdeen, Bergen, Norway, Perth Australia, Singapore and Nigeria.