Oilfield services company Petrofac has won a contract with Tullow Oil to provide well-decommissioning services in Mauritania, taking over from Danish company Maersk Decom, which said it would close down the company.
The contract, with a potential total value of more than $60 million, involves the project management, engineering, planning and plugging and abandonment (P&A) of seven subsea wells on Tullow Oil’s Banda and Tiof fields, Petrofac said.
"Petrofac assumes responsibility for the subsea well-decommissioning scope from Maersk Decom, who have been preparing the work since 2020," Petrofac said.
"By mutual agreement, the parties have novated the contract to Petrofac, who will take immediate responsibility for the project, with the offshore scope running from Q4 2022 throughout Q1 2023. Petrofac will provide all personnel, assets and equipment required for the project, including management of the Island Innovator drilling unit and offshore support vessels," Petrofac added.
To remind, Maersk Decom in December 2021 booked the Island Innovator drilling unit for the plugging and abandonment of wells in the Tullow Oil operated Banda and Tiof fields offshore Mauritania. Island Drilling said at the time that the work was set to kick off in the fourth quarter of 2022.
Now, the novation of the contract to Petrofac also marks the end of the line for Maersk Decom.
Maersk Decom said: "Maersk Decom has transferred its responsibility for the Banda Tiof project in Mauritania to Petrofac, effective from April 2022. With this Maersk Decom has no further commitments and the company will close down. Maersk Drilling and Maersk Supply Service will continue to pursue decommissioning work scopes within each of the companies’ sphere of operations. The Maersk Decom website and social media channels will close down effective 1st June."
Commenting on the contract with Tullow, Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business said: "Today’s award is further demonstration of the international demand that exists for the skills and quality of delivery we have established in the North Sea. Since 2016 Petrofac has delivered three successful decom campaigns for Tullow Oil. We look forward to emulating this success for them in Mauritania and across the African continent as we continue to grow our business here.”
The Banda and Tiof fields are two oil and gas accumulations offshore Mauritania in water depths from 200m to 1,200m. The licenses are located approximately 53km and 84km offshore Nouakchott, Mauritania.