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STR invests £1m in new global technology and innovation centre of excellence

Subsea Technology and Rentals (STR), a leading global provider of specialist survey and inspection rental equipment, products and data enabling services to the offshore energy market, is celebrating the launch of its global technology and innovation centre of excellence after investing £1 million into the facility to drive its innovative solutions and support its growth plans.

The 30,000 sqft facility in Great Yarmouth, Norfolk, will be the home to the businesses’ standalone technology and innovation team responsible for STR’s research and development of its technical solutions and products.

The purpose built facility features state-of-the-art engineering and product development suites, mechanical and electronic assembly and testing areas supported by the recruitment of 19 new employees in Great Yarmouth.

The firm has experienced rapid growth during 2022 following the earlier announcement of investment from Baird Capital to support the STR’s growth with further plans to expand and strengthen its capabilities.

STR Chief Operating Officer, Scott Johnstone, said: “The launch of the new technology and innovation centre of excellence is a fantastic addition to the STR group offering. Through combining state-of-the-art facilities with our experienced team and in-house technologies we will be better positioned to support our customers.

“We have a team with extensive knowledge in their field and as a company we have a proven and impressive track record of providing leading edge solutions and in-house products across the offshore energy market for more than 20 years.”

Logan Industries successfully completes space saving coiled tubing reeler project for OneSubsea

Texas based machine designer, manufacturer, field service and repair company Logan Industries International Corporation has successfully delivered a unique, space saving coiled tubing (CT) reeler suite for OneSubsea, designed to maximise profitability.

More than simply storage reelers, Logan’s CT reelers are coiled tubing winches, where the reelers provide full torque control for the tubing without the need for a standard injector head. This reduces space required compared to standard tubing reeler / injection head combination and allows for a larger fluid storage footprint on deck. When the equipment required to handle CT has a small footprint, more deck space can be dedicated to hauling fluid, which increases profitability for the operator.

Whereas Logan has built several sets of these machines in the past with fixed drums, this is the first unit Logan has delivered with a removable drum, which means the unit footprint can remain static on the vessel while the drums can be taken to a shore base for unspooling and respooling. They are transported in a purpose-built DNV lift rated drum basket, fully secured and protected. The swap out drum also makes the machine faster to build, reducing typical assembly time for the drum and drive train from two weeks to two days.

At 15,000 psi working pressure, 10,000 feet of 2 inch CT was provided on the drum, with live swivel and isolation valves on the unit. The suite of equipment provided for this work includes a spare drum, adapter to allow it to fit into most tubing service spoolers at the tubing manufacturer’s facilities, transport basket and lifting set along with the reeler, HPU, control stand and interconnect lines. Logan also provided a purpose-built overboarding platform with a translating / clamshell to accommodate OneSubsea’s unique end connection philosophy.

Dean Carey, Technical Director, Logan, said: “We placed a work deck, dimple connector, test tool, controls, and safeguards on this overboarding platform to give the crew plenty of access to the volume of space under the overboarding point. The overboarding platform also provided a reeler deck loading spreader effect on the vessel’s deck.

“We believe this is truly the next evolution in coiled tubing deployment offshore and provides significantly more convenience for our customers. This is one of the most comprehensive reeler equipment suites Logan has had the pleasure to provide, and we expect it to remain in service for quite some time.”

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UKCS decommissioning cost estimate drops 25% to £44.5bn

The cost of decommissioning oil and gas infrastructure has been cut by 25% in the past five years, according to the latest estimates by the North Sea Transition Authority (NSTA).

NSTA’s Decommissioning Cost Estimate Report 2022 highlights industry’s ability to generate huge savings and carry out projects in a more cost-effective manner.

The forecast fell £1.5 billion (2%) to £44.5 billion last year – contributing to a total cut of £15 billion (25%) since 2017, when the NSTA introduced a baseline estimate of £59.7 billion and set a target of reducing costs by 35% to £39 billion by end-2022.

Decommissioning of offshore oil and gas installations is required by law but has long been an expensive and lengthy process. However, the introduction of the target coupled with industry’s ability to learn from experience, share lessons and execute projects more efficiently has been hugely effective.

The highly ambitious 35% target was always intended to be challenging and the significant savings already delivered greatly benefit companies, which can invest more in production and emissions reduction projects, and taxpayers by reducing the cost of decommissioning tax reliefs to the Exchequer.

Industry made swift progress in the first two years of the target, cutting the estimate by 17%, and while that has slowed, partly due to the logistical and economic pressures of the Covid-19 pandemic, progress has continued.

Importantly, the scale of reductions to the estimate is reflected in the final costs of completed projects, which are on average 20-25% lower than initially predicted, over the five years.

In 2021, decommissioning expenditure totalled £1.2 billion, lower than the forecast £1.4 billion, due to improved project execution and Covid-related deferrals of activity. This was a sizeable investment in the face of unprecedented logistical and economic pressures, and points to industry’s determination to carry out planned work and meet its decommissioning obligations.

Decommissioning spend is expected to ramp up to a peak of more than £2.5 billion per year over the next two decades, offering a longterm opportunity for the supply chain to develop cost-efficient services and win more work overseas.

Improving performance on costs is likely to be challenging in the short term due to market inflation and competition for resources from other energy sectors. Therefore, the report calls on industry to redouble its efforts, ensuring that it plans effectively, collaborates on innovative commercial models, deploys new technologies and, where possible, reuses and repurposes infrastructure – all of which are priority areas in the NSTA Decommissioning Strategy. Repurposing infrastructure for energy transition projects, including carbon storage, can also make a significant contribution to the UK’s drive to net zero.

The NSTA said it is committed to supporting the sector and is encouraged that well decommissioning campaigns, which deliver better value and fewer emissions, have gained traction in the UKCS, as shown by recent, longer-term contract awards.

In addition, the NSTA is harnessing data and digital solutions, such as the NSTA’s Energy Pathfinder portal, Decommissioning Data Visibility pilot project and Suspended Wells application, to provide suppliers with a much clearer picture of upcoming work, giving them confidence to invest in skills and technologies.

Furthermore, as the 2017 target helped to sharpen industry’s focus on costs, the NSTA is providing fresh impetus by engaging with the sector to launch a new baseline estimate and cost efficiency target, effective from the start of 2023.

“Delivering potential savings of £15 billion during a short period marked by extremely turbulent economic conditions should give the sector confidence as it looks to the future,” said Pauline Innes, NSTA Head of Decommissioning.

“The decommissioning market is worth tens of billions of pounds in the UK alone. Our industry is demonstrating that it can complete projects safely, efficiently and economically in the North Sea, and that places it in a strong position to compete for what is a big international prize.

“The sector must not lose focus and allow inflation to drive up prices. Now is the time to build on the progress already made. The NSTA is determined to help the sector pick up momentum, including through the introduction of new estimates and targets.”

Delivering potential savings of £15 billion during a short period “ marked by extremely turbulent economic conditions should give “ the sector confidence as it looks to the future