Wednesday 12 October 2016

Subsea technology outfit Optime Subsea Services has agreed to merge with fellow Norwegian engineering player Telemark Technologies as the pair join forces to promote a new cost-efficient well intervention and completion solution.

The innovative rig-less technology, dubbed multiCompletionSystem (mCS), comprises modular building blocks and is intended to handle all phases of a subsea well’s lifetime from installation to plugging and abandonment (P&A).

Optime estimates the system can deliver an 80% cost saving on subsea tree installations and more than 60% on P&A operations.

“The modules can save $1 million to $2 million per vertical subsea tree installation and $7 to $12 million for plugging and abandonment of each well,” chief executive Jan-Fredrik Carlsen said.

The two companies now intend to fast-track construction of the system to make it available to the global market next year following the merger, backed by Norwegian investor Holta Invest, with the newly minted entity to retain the name Optime Subsea Services under Carlsen’s continued leadership.

The new company will also be the biggest shareholder in fabrication player Berget.

“Today's market is characterised by a reduction in new field developments and installations, but a greater focus on intervention and increased recovery from producing fields. The module we are currently building offers exactly this: increased production from existing wells,” Carlsen said.

“Additionally, we are meeting international operators' increased demand for decommissioning and abandonment of wells. The latter is a significant liability and cost, but our rig-less system reduces these by at least 60%.”