North Sea Reporter

Published by KL ENERGY PUBLISHING LTD.

North Sea Reporter is an established and respected weekly publication which provides in-depth news and analysis of the NW European offshore oil and gas industry. 

Rig Market

Okea has signed a four-year frame agreement with COSL Drilling Europe to use the contractor’s drilling units for all its operations on the Norwegian Shelf. The company says the deal means that COSL will be its exclusive provider of semi-submersible drilling rigs for the four-year contract, adding that four one-year extension options mean the agreement could ultimately last up to eight years. The company said there would be flexibility under the deal in terms “of which of COSL’s identical and energy-efficient rigs are to be used”. Okea expects the first well commitment to use the new agreement will follow a final investment decision on its proposed tieback of Hasselmus, in Norwegian Sea block 6407/9, to the Draugen field, in the same block. Okea in its first quarter results report earlier this month said the Hasselmus project was in the FEED, with a final investment decision planned during the current quarter, leading on to first production in 2023.

Rig Market

A number of development landmarks are being targeted for the Total-led Tyra redevelopment project, in blocks 5504/11 and 5504/12, in Denmark, later this year, with some platform installation work in the field location among the items on the agenda. According to Tyra partner Noreco, the accommodation module for the redevelopment was scheduled to sail away from the Rosetti Marine yard in Italy in the second half of this year, with offshore installation to follow. In addition, the Tyra East wellhead and riser platforms are expected to depart Sembcorp Marine’s fabrication facilities in Singapore, also in the second half of the year, to be followed by offshore installation and hook-up. Sembcorp is then scheduled to complete work on the Tyra West wellhead and riser platforms next year, while McDermott completes the project’s process module at its yard in Batam, Indonesia. Offshore installation and hook-up of those facilities should follow later in 2022. 

Decommissioning

The Oil and Gas Authority (OGA) has published an updated decommissioning strategy that urges co-operation between operators as they plan work in the sector, especially when it comes to well decommissioning. The regulator warns that fragmented ownership and oil and gas price volatility have led to instability in the UK decommissioning market and argues that without action to improve commercial practices the sector faces the prospect of higher costs. The OGA, which has a target of decommissioning cost estimates being reduced 35% by 2022 from a 2017 base estimate of £59.7 billion ($84 billion), says that to address these issues there needs to be a more collaborative approach between operators and the service sector. It argues in favour of decommissioning campaigns, suggesting that “if operators were able to align and co-ordinate multiple projects, the supply chain would be given greater certainty about upcoming work”.

 

Weekly coverage includes:

  • Rig Market - contracts, dayrates and utilisation
  • Drilling – a round-up of North Sea activity  
  • Construction and engineering
  • Field development and production
  • Contract awards
  • Company news
  • Data tables of industry activity
  • Mediterranean & W. Africa briefing
  • News briefs