Wedoany.com Report on Feb 11th, UK-based Aquaterra Energy, headquartered in Norwich, has recently secured a multi-million-pound decommissioning contract in Spain, involving 11 oil and gas wells. This multi-year agreement requires the company to provide subsea wellhead access solutions for the intervention and abandonment of offshore oil and gas assets, located at the Repsol Casablanca oil platform, 27 miles off the coast of Tarragona in southern Catalonia.
Aquaterra CEO George Morrison stated, "Securing this multi-year contract is a significant milestone for Aquaterra Energy." He added, "Well intervention and abandonment are increasingly becoming a defining challenge for many mature offshore basins. We have invested in building our team, capabilities, and technology to ensure the success of these activities as our clients navigate the complexities of late-life field operations." As aging assets approach the end of their lifecycles, decommissioning has become a key target area for European suppliers, with plugging and abandonment activities in particular expected to become a lucrative market.
Analysts at Westwood predict that half of all decommissioning expenditure will come from plugging and abandonment activities. The company has previously stated that UK decommissioning spending will also increase due to project delays and rising costs. Last year, Westwood forecast an additional £4.25 billion in decommissioning expenditure due to project setbacks. According to the company's estimates, the value of plugging and abandonment activities has climbed to around £10 billion. In December last year, UK regulators identified 153 non-consented idle wells and named operators who had missed decommissioning deadlines. This followed expressions of frustration from the North Sea Transition Authority regarding the rate and pace of well decommissioning activities.
Ben Cannell, Aquaterra's Director of Innovation, stated that as the company seeks to expand its capabilities and presence in the decommissioning market, it views intervention and abandonment activities as a key focus. Cannell added, "This project is a powerful example of collaboration in action, combining our riser-based wellhead access solution with OEM AQC-CW connector technology to deliver a practical integrated system that supports safe, efficient, and reliable offshore operations during complex abandonment campaigns." This Spanish well decommissioning contract not only strengthens Aquaterra Energy's market position but also reflects the global trend of growing demand for offshore oil field decommissioning.
