Norway's HydraWell and UK-based READ have agreed to merge to create a well integrity specialist focused on late-life oilfield activities, including permanent plugging and abandonment of hydrocarbon wells.
According to a statement issued Monday, the two companies said the combined firm, which also includes READ subsidiaries READ Cased Hole and ANSA, would be strategically located with offices and bases in Stavanger, Aberdeen, and Houston together with a presence in Alaska, Australia, Brazil, Malaysia, and Qatar.
Mark Sørheim, HydraWell CEO, will be the CEO of the combined company which will have 75 employees. Total revenue for the combined company is expected to reach approximately NOK 200 million (around $20,4 million) for 2022.
"Globally, late life oil and gas wells have an increased requirement for well integrity monitoring, and there is a growing demand for permanent plugging and abandonment these ageing assets," HydraWell said.
HydraWell, READ, and ANSA operate within well integrity with READ and ANSA measuring and analyzing well integrity issues and HydraWell uses its proprietary PWC, Perf-Wash-Cement technology to remediate those issues identified.
"The combination of the companies will allow customers to benefit from seamless well integrity planning and diagnostics to barrier installation using digital tools, repeatable and reliable service delivery and effective new technologies that reduce risk and cost to operations," the companies said.
“This is an exciting juncture in our corporate journeys, and we are delighted to join forces with a like-minded specialist business whose services are complementary. This allows us to create a unique offering within the well integrity market to deliver further value to our customers through deeper knowledge and improved workflows which will introduce increased operating efficiencies across their well operations,” said Sørheim.
Managing Director of READ Cased Hole, Bruce Melvin added: “READ Cased Hole continues to go from strength to strength, and the merger adds to this by positioning our new entity as leading integrated well integrity measurement, analysis and remediation specialists. This will not only enhance READ’s presence in the abandonments market but also expedite ANSA’s digital platform attracting new client relationships. We look forward to what the future holds and building on the success of both companies.”