Archer secures $165 million Repsol Sinopec contract for P&A decommissioning
Hamilton, Bermuda (August 15, 2023)
Repsol Sinopec Resources UK Limited has awarded a $165 million decommissioning contract to Archer to execute the plug and abandonment (P&A) of 30 wells in the Fulmar Field and two wells in the Halley Field.
The contract is a fully integrated P&A project, covering the complete work scope, including a modular P&A rig, well services and well engineering. With over 45 years platform drilling experience in the UKCS, combined with the comprehensive portfolio in well services product lines, Archer is uniquely positioned in the industry to drive down cost and risk for P&A projects.
The Fulmar scope includes removal of the existing drilling facility and installation of one of our P&A rigs. In addition, we will deploy our broad P&A well services offering to reduce time and cost to plug each well. The scope of work will be delivered using cutting-edge technology, multiskilled crews and industry leading digital solutions in close collaboration with our partners. This new contract will commence immediately, and we expect integrated offshore P&A operations to commence in the second half of 2024 or early 2025.
Dag Skindlo, CEO of Archer comments:
“We are delighted that Repsol Sinopec has elected Archer and our fully integrated operational model for this Plug & Abandon (P&A) project. The delivery model with integrated drilling and well services, supported by partners, is a step change in how operators permanently plug and abandon oil and gas wells. Archer has worked strategically over several years to develop this fully integrated model and we are excited that Repsol Sinopec has chosen Archer as its partner.
The estimated value of this integrated contract stands at roughly $165 million spread over the next four to five years. We have noted an uptake in interest and tender proposals for such holistic P&A models, and we believe that this contract and similar project awards will drive growth in both turnover and profitability. The permanent plugging and abandonment of oil and gas wells is an essential activity as the world decarbonize on the road to net-zero. Our goal is to industrialize the P&A process and spearhead innovation to cut operators’ P&A costs globally.”
Adam Sheikh, Repsol Sinopec’s VP of Decommissioning and Energy Transition said:
“We aim to deliver one of the North Sea’s most ambitious decommissioning programmes in the years ahead – including the full decommissioning of our Fulmar Alpha Asset. This contract award represents a significant milestone in our decommissioning journey and my thanks go to the teams for the vast amount of work to get us to this stage. As a company we intend to deliver decommissioning work as cost-effectively as possible whilst minimising environmental impact. We look forward to working closely with our partner Archer to safely deliver this decommissioning scope of works on our Fulmar Alpha facility”.
For additional information please contact:
Espen Joranger, Chief Financial Officer, Mobile: +47 982 06 812, Email: espen.joranger@archerwell.com
Joachim Houeland, Manager Treasury and Investor Relations, Mobile: +47 482 78 748, Email: joachim.houeland@archerwell.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)