We are delighted to announce that our Wells Solution Centre and member company Spirit Energy have been jointly shortlisted for the 2018 MER UK Award. The MER UK award recognises those companies whose cooperative approach and positive behaviours have helped to maximise the economic recovery of oil and gas from the UKCS.
Together with Spirit Energy, the Oil & Gas Technology Centre have set up a ‘thermite collaboration group’ to assist with the acceleration of technology adoption, specifically focused on a new approach to decommissioning.
The technology uses thermite and a controlled chemical reaction in the well rather than the traditional cement plug. The thermite reaction has been used for centuries in welding railway tracks together, and now if used widely offshore it could significantly cut the cost of plugging and abandoning wells – one of the most expensive phases of decommissioning for both operators and HM Treasury, as decommissioning operations in the UK are subject to tax relief.
Oil & Gas UK estimates suggest nearly £17billion will be spent on decommissioning on the UK Continental Shelf between now and 2025 – with the well plugging and abandonment phase typically accounting for nearly half the cost of decommissioning projects. The implementation of this technology has the potential to cut hundreds of millions from the decommissioning bill for both the taxpayer and the oil and gas industry. Without the ‘thermite collaboration group’ this technology would not be developing at such an accelerated pace, including on and offshore field trials.
The winner will have demonstrated strong leadership in pioneering successful new ways of working that can be shared and adopted across the industry. The Award winner will be announced at the Oil & Gas UK Awards on 1 November.
- Spirit Energy and OGTC
- Buzzard Phase II Integrated Project Team
- HGSL, Dana Petroleum and Premier Oil
- CNR International