LONDON, UK: Orcadian Energy has entered proper into a binding Memorandum of Understanding (MoU) with SLB (formerly Schlumberger) to ship core services for the wells on the Company’s Pilot project.
SLB made a compelling commercial and technical proposal with a strong focus on decarbonisation. The events now plan to develop a complete Project Agreement for provision of the services.
Steve Brown, Orcadian’s CEO, commented: “We are delighted to be working with SLB to ship the Pilot wells. Pilot is currently deliberate to be developed with thirty-four wells; and delivering these wells for the least cost with the proper completion applied sciences to maximise sweep of the reservoir is critical to the success of the Pilot development.
“Pilot is a key UKCS development project which ought to pave the way for the industry to unlock as a lot as three billion barrels of viscous oil discoveries on the UKCS. By adopting main technologies, such as polymer flooding and floating wind power, we believe we can ship these developments with ultra-low emissions that will restore the UKCS to its rightful place because the main energy basin within the world as we ship a Secure Transition.
“The early involvement of key present chain companions such as SLB and Petrofac is important to make sure that we entry the very best applied sciences and capabilities that the industry has to present enabling us to efficiently ship the Pilot project.”
Rob Fox, SLB’s MD for UK & Europe, said: “SLB is dedicated to supporting Orcadian Energy in securing accessible and sustainable energy to meet rising energy demand within the UKCS via the Pilot project. We are excited to have the chance to work with Orcadian and believe our huge portfolio of energy transition applied sciences will assist in delivering a extremely innovative and decarbonised development project at Pilot.
“Aligned with SLB’s new focus on delivering energy options on the bottom possible emissions footprint, we believe this potential project is a tremendous instance of how any new North Sea field ought to be delivered. We look ahead to serving to Orcadian Energy unlock the worth of this superb project.”
Orcadian and Petrofac, Orcadian’s chosen well operator, approached the well services market in July this year to elicit proposals from well service contractors to support the Pilot field well construction programme. SLB made an particularly compelling commercial and technical proposal with a strong focus on decarbonisation. This will guarantee alignment of pursuits between Orcadian and SLB, and present a strong basis for the general project financing and development.
In oil and gas development, we believe nothing issues fairly as a lot because the well-reservoir interface and the well completion itself. Partnering with SLB, which is a global technology firm that drives energy innovation and has a variety of capabilities and technologies, ought to make sure the profitable supply of the Pilot project.
Petrofac has supported Orcadian since 2018, having assisted the Company within the idea choose process, and can be appointed as well operator by Orcadian.
Orcadian and SLB now plan to develop a complete Project Agreement to element the phrases and conditions for the provision of core services. The finalisation of the Project Agreement is topic to, amongst different items due diligence and drafting of authorized documents, so it’s possible that the Project Agreement may not be executed, however the Directors have each expectation that it will be.
In the close to term, the Company and SLB additionally intend to progress a project worth optimisation process, SLB will be engaged under a separate consulting arrangement. The intention of this course of is to ship a plan for the drilling and completion of the Pilot wells which will maximise financial restoration and minimise emissions from each the well construction course of and the operation of the downhole pumps on the wells. The Directors believe that having entry to the full vary of applied sciences which SLB has to present will assist immeasurably within the method of finalising the Field Development Plan.
The Company additionally intends to incorporate an incentive association for the contracting companions focussed on delivering the optimum variety of wells to maximise environment friendly sweep of the reservoir, on the least cost, and with the bottom emissions possible.