Well-Safe Buys Semisub Ocean Guardian

Tuesday, April 9, 2019

Well-Safe Solutions announced Tuesday that it has agreed to acquire the Ocean Guardian semisubmersible drilling unit from Diamond Offshore.

Upon delivery, Well-Safe will immediately start work to upgrade the rig, to be renamed Well-Safe Guardian, converting the asset into a bespoke plug and abandonment (P&A) unit. Well-Safe said it will invest in the region of $100 million for an upgrade program that will include installing a dive system and the capability to deploy a SIL (subsea intervention lubricator), which is nearing completion of the design and engineering phase, supported by the Oil and Gas Technology Centre (OGTC).

Well-Safe is already progressing conversations to add a second semi-submersible to their business, it said. This will be followed by a jack-up, mono-hull vessel and land-based P&A units.

Mark Patterson, Executive Director, who heads up the asset purchase program, said, “This is a major milestone in Well-Safe’s journey and one that is in-line with our strategy. It’s great to have The Ocean Guardian, which has a great reputation on which we will build, as our first asset.”

Launched in August 2017 with the vision to become a ‘Tier One’ wells decommissioning company, the Aberdeen-based company is progressing swiftly to realizing its ambition, boasting over 450 wells worth of experience among their team.

Andy Samuel, CEO of the UK Oil and Gas Authority (OGA), commented, “The OGA very much welcomes new investments and innovative business models such as this, as a key part of achieving industry’s 35% decommissioning cost reduction target. Joint well plug and abandon campaigns, using the club approach should not only prove to be more cost efficient, but also help build UK supply chain expertise in decommissioning which is then globally exportable.”

Phil Milton, Chief Executive Officer of Well-Safe Solutions said, “We have stayed totally focused and committed to our original strategy and are delighted to have reached this agreement with Diamond Offshore for the acquisition of our first asset, which will allow us to deliver the complete P&A solution.”

“We have had a number of in-depth conversations with potential clients and believe the purchase of this asset will allow us to advance these towards firm commitments to our P&A Club.”

Well-Safe confirmed that the acquisition would bring a further ninety jobs to the North Sea over the course of the next year, adding to the company’s current 40 employees.

According to Well-Safe, there are over 33,000 wells worldwide to be decommissioned over the next 20 years. The company’s long-term goal is to export its model and advance from the UK into this global marketplace.

Categories: Decommissioning Rigs Completions Drilling

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