Well-Safe Solutions, a new entrant to the decommissioning market has made its first company acquisition just a week after the North Sea firm launched.
Aberdeen-based Intervention Project Management (IPM) was bought for an undisclosed amount, with its founder and managing director Phil Milton hired as Well-Safe’s new chief executive.
The company, founded as a self-funded entity in 2007, provides engineering, project management and consultancy services in well intervention, plugging and abandonment (P&A) work and production optimisation, with a focus on the North Sea, West Africa and Australia.
“The acquisition of IPM gives us an excellent foundation on which to build our P&A focused business. More importantly, with the appointment of Phil Milton to head up our wealth of P&A expertise and experience, we are firmly on-track to establishing our authority and credibility in the market,” said Mark Patterson, co-founder of Well-Safe Solutions.
IPM offered a fully integrated P&A service with differentiated contract models and the use of new enhanced techniques and technology. Its portfolio of clients included CNR International, TAQA Brattani, Repsol-Sinopec ConocoPhillips, Chevron, Halliburton and Schlumberger.
It has carried out of well services, workovers and well abandonment operations in the North Sea and beyond for Shell, BP, and BG. This includes work on the Murchison P&A project and the Hutton TLP abandonment project.
Milton said: “The shift towards prioritising decommissioning activity, along with the number of shut-in wells, more incentives and current lower costs, makes P&A activity much more attractive. It’s the right time for Well-Safe to enter the market with a very compelling proposition that will deliver the complete package of collaboration, efficiency, safety and savings.”
Well-Safe Solutions said it plans to acquire high quality assets to carry out well abandonment work, including a semi-submersible rig, jack-up rig and light-weight intervention vessel. These will then be used and mobilised exclusively for P&A activity, providing certainty over availability and therefore long-term commitments for customers with full control over scheduling of well P&A campaigns.
Corporate finance advisers to the energy sector, Simmons & Co, is acting for Well-Safe. Managing director of Simmons & Co, Mike Beveridge, said; “There’s a huge well stock in the North Sea that needs this know-how and experience to decommission wells safely and efficiently. I would expect Well-Safe to take this model to other well decommissioning programmes worldwide – further strengthening the UK’s position as a proving ground for new ideas and business practices which can be adopted elsewhere around the globe.”