GE Oil & Gas and SapuraKencana Well Services have signed a Memorandum of Understanding (MoU) announcing an Asia-Pacific wide agreement to deliver light well intervention services.
According to the pair, the deal was made in order to unlock previously uneconomic subsea intervention activity.
In the press release, the companies explained that the strategic alliance would enable oil and gas operators to bring wells into production, deliver life-of field intervention services, as well as to suspend and abandon these wells later in their life without the need for costly mobile drilling units.
“The generally prohibitive cost of performing interventions on subsea wells has meant that the volume of hydrocarbons extracted from offshore fields with subsea wells is typically far lower than offshore fields with platform wells,’’ said Nick Dunn, Global Leader, Subsea Services & Offshore at GE Oil & Gas.
Dunn added: “By combining regionally-based assets with local infrastructure and support, this strategic alliance will bring a cost-effective Light Well Intervention solution to the market and create immediate value for the Asia Pacific operator community. This alliance is an excellent example of the changing market trend where trusting relationships result in added value and cost savings for operators across the globe.”
The companies also said that the MoU signified the formalisation of this business relationship, which was already in operation with an initial focus on the Australian waters province.
“Both parties are committed to a long-term relationship where we collaborate with operators in region to fully understand their challenges and provide appropriate enabling intervention solutions,” said Vivek Arora, Senior Vice President of Engineering & Construction of SapuraKencana Petroleum.