Page 16 - EurOil Week 17 2021

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Wintershall Dea’s underlying business left the location in April. The base has already handled over 5,000
performance remains exceptionally robust Northern Offshore and EnQuest tonnes of decommissioned equipment and
and demonstrates strength in the crisis submitted combined decommissioning waste including, flexible risers, umbilical reels,
“Thanks to low production costs, programmes for the Northern Producer Xmas trees, manifolds, wellhead protection
higher production volumes and an overall FPF float-off and disconnection of risers structures and mid-water arches from tier one
increase in prices on the commodities and pipelines in December 2020. global operators with interests in the North
market, Wintershall Dea also recorded a The combined decommissioning Sea.
sharp improvement in its financial result in programmes included the departure of Overseeing project-based activity at
the first quarter, increasing EBITDAX by the FPF, the removal of the associated the ISO accredited company will be Karen
47 per cent year-on-year and its free cash riser systems from the Don South West, Russell, NorSea UK country manager; Walter
flow to $482.8 million. and West Don fields, and clearance of the Robertson, managing director of Robertson-
“Wintershall Dea again reduced its 500-metre safety zone. IES; and Craig Smith, the owner of CR Smith
production and development capex for These fields are located some 527 Services.
this quarter by 28 per cent compared to kilometres north-north-east of Aberdeen Commenting on the move, Karen
previous year’s quarter”, the company in water depths between 165 metres and Russell said: “As the UK oil and gas industry
stated. 178 metres. enters its fifth decade, it’s important that
The company’s adjusted net income EnQuest has a majority share interest we simultaneously embrace traditional and
returned to the black with $206.4 million. in the Don fields with co-venturer Ithaca emerging markets to bolster sustainability.
Last year’s first quarter had an adjusted Energy and has been the operator of the This new venture will use the expertise we
net loss of $106.2 million. Wintershall Dea fields since 2009. All four fields were tied have gathered in the past to secure our future
also reduced its net debt by almost a third back to the Northern Producer. with a vertically integrated, fundamentally
– from $6.9 billion in the first quarter of At the time, the Northern Offshore local, supply chain at the heart of operations”.
2020 to $4.95 billion in this quarter. said that when the FPF departs the field, Walter Robertson added: “The business
Mario Mehren, Wintershall Dea the company will pursue and possibly will focus on supporting operators and marine
chairman and CEO, said: “We entered 2021 secure alternative arrangements for its contractors with a unique service which will
with a great deal of operating momentum, redeployment. manage the complete onshore scope of work
allowing us to deliver record production of During the weekend, EnQuest said via from receipt of potentially contaminated
659 mboe/d in the first quarter. social media that the Northern Producer subsea structures through cleaning and size
“This strong operational performance FPF was undergoing final preparations reduction before being transported to their
combined with a more robust external ahead of departure from the field. final repurposing/re-use location.
environment has resulted in a step-change Cessation of production to handover was “Transporting large structures which have
in our financial performance, allowing us achieved in 43 days, ten days ahead of been submerged for decades is a technical
to recommence our common dividend”. schedule. exercise demanding focus, commitment, and
Worth noting, the company On April 26, Kishorn Port welcomed the compliance with specialist waste management
recommenced the payment of their FPF to the port for a period of anchorage. legislation.
common dividend with $603.6 million The FPF will remain within the port until “As the decommissioning sector continues
distributed to shareholders in the first arrangements are made for the platform’s to grow in the decades to come, NorSea
quarter and a further $120.7 million due to redeployment or its decommissioning. Decom will be a dedicated specialist and
be distributed in the second. relationship-based contractor which will
provide the operator or principal contractor
Scotland gets first with a single, integrated onshore solution
Northern Producer FPF dedicated subsea for redundant subsea infrastructure and
designated wastes”.
arrives at port from Don decommissioning hub 30 years of experience in the radiological
Craig Smith added: “Having almost
fields NorSea UK, in collaboration with Robertson- waste sector, we understand the importance
customers place on securing compliant
Northern Offshore’s Northern Producer IES and CR Smith Services, has unveiled and cost-effective solutions. Acting as
floating production facility (FPF) has NorSea Decom – a dedicated entity whose management contractor for all onshore
arrived at the Kishorn Port in Scotland sole work scope will be the safe and compliant activities, we will optimise costs, simplify
following removal from EnQuest’s Don management of decommissioned subsea the process, and professionally deliver safe
fields in the North Sea. infrastructure and waste logistics. and compliant working practices to ensure
EnQuest started cessation of production The move will further utilise NorSea’s we protect our customers reputation”.plan in
activities on the Northern Producer FPF at expansive Peterhead base where more than £2 2022, updating it every three years.
the Don fields back in March. The facility million has already been invested.

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