Aberdeen-headquartered well decommissioning specialist Well-Safe Solutions has secured a contract extension with Italian oil major Eni (IT: ENI).
As part of the agreement, the Well-Safe Protector rig will deploy to the Dutch sector of the North Sea to decommission selected subsea and platform wells.
Well-Safe said Eni recently exercised another 90 day option for the jack-up rig under a newly agreed contract amendment for an undisclosed value.
The Protector will execute the work in direct continuation with the previously declared option, which began in November last year.
After completing the latest extension, the Protector will move directly onto a contract with Spirit Energy focused on the York field in the UK North Sea.
The multi-operator commitments will see the Protector rig under contract until at least August 2025, with additional longer-term options also agreed as part of the Eni deal.
The amendment gives Eni increased flexibility, with the option for an additional 120 days work commencing immediately after the Spirit Energy contract.
Well-Safe said if Eni exercises these options, it could keep the Protector outside the UK continental shelf until the fourth quarter of 2026.
Well-Safe Protector
The Protector has been operational in the North Sea continuously since August 2023.
In that time, the rig has decommissioned 25 wells across Dutch and UK waters for operators Eni, Ithaca Energy (LON: ITH) and Neptune Energy.
Well-Safe Solutions chief executive Phil Milton said well decommissioning continues to make up a considerable portion of overall North Sea decommissioning activity.
Milton pointed to recent Offshore Energies UK (OEUK) forecasts which showed an expected 50% increase in well decommissioning across 2024.
“Operators around the world are looking for specialist well decommissioning providers with a market-leading track record of delivering safe, efficient well decommissioning operations,” Milton added.
“Since the Well-Safe Protector first mobilised in August 2023, it has delivered top-quartile operational uptime – ensuring the learnings from continual well decommissioning activity are reinvested into future work scopes.
“Effective well decommissioning cannot exist without cooperation, and we are looking forward to deepening the partnership we currently enjoy with Eni as we build the foundations of a long-term well decommissioning campaign at this key moment in the North Sea’s development towards a low-carbon future.”
The Spirit Energy contract announcement coincided with a separate deal with an unnamed global operator for the Well-Safe Defender semi-submersible.
Together, the two contracts provided a $25 million (£20m) boost for Well-Safe and 170 days of firm work.
It comes as Well-Safe continues efforts to expand internationally to Australia and Malaysia to capitalise on expected growth opportunities in the Asia-Pacific region.
Well-Safe is also seeking to double its rig count by 2030 and expand its operations into the offshore carbon capture and storage (CCS) sector.
Recommended for you
Aberdeen’s KCA Deutag secures $513m in global drilling contracts