A goal to provide more cost-efficient solutions to the oil and gas industry has brought subsea technology firm Optime Subsea Services and Telemark Technologies, a Norwegian engineering company, together. The companies, which announced their merger on Oct. 11 with Norwegian investment company Holta Invest as a “significant shareholder,” teamed up to push out a modular well completions system for the offshore oil and gas industry. The efforts and upfront investment of Optime Subsea Services, as the merged company is now known, come despite not having a firm customer in place and as the oil and gas industry rebounds from a profit-crushing downturn. Companies, including those that are focused on subsea developments, continue to seek cost-savings and efficiencies to make projects economical. Hopes are that new technology will deliver both. “Although we are bullish on our well stimulation services and the opportunity towards operators, we wouldn’t do this unless feedback from oil companies weren’t extremely positive though,” Optime Subsea Services COO Thor Arne Lovland told Hart Energy in an emailed statement. “So this is a way of making the system available to oil companies as soon as possible, removing any perceived risk of delivery.” Called the multiCompletionSystem, the subsea installation solution aims to cut costs for subsea tree installation as well as plug and abandonment operations. The system contains several modules which the company believes can save between US$1 million and $2 million per vertical subsea tree installation and between $7 million and $12 million for plugging and abandonment of each well. Two of the modules include the: “We agree and believe that the current model of proprietary equipment with challenging interfaces is not the model benefiting all parties—which should be the driver: how to benefit both customers and partners,” Lovland added. “With our life of field system, we believe in having one modular system which through multiple modules sourced from off the shelf and field proven technology, would favor the operator.” The system is suitable for both shallow-water and deepwater subsea wells as well as any type of vertical or horizontal subsea tree given the standard adapter and connection interface, Lovland said. “The benefit of the system is that it enables one modular system through the life of field, from installation through intervention and all the way through to abandonment,” he added. “The essence is that you can run it from a light vessel instead of an expensive drilling rig, without the risk of brining hydrocarbons to deck for completions and interventions, which limits the classification requirements of the vessel and also the cost. The system is a driver for reducing cost, which we believe is necessary at any location for any subsea operator.” The system is being assembled at Optime Subsea Services’ Notodden workshop in Norway. It is expected to be complete by year-end 2017. Asked whether the company has been approached by an operator to supply the first facility, Lovland said the company is in ongoing dialogue with a number of operators. “We see the oil and gas market being desperate for a more cost effective plug and abandonment system, and operators thankfully recognize that we have come up with a highly interesting solution where the traditional solutions are not the right tools designed for the right operation,” he said. “Current solutions are equipment not intended for a plug and abandonment operation.” The merger paved the way for additional capital needed to build the first module focused on well stimulation. Financial details of the merger, which was completed Oct. 11, were not disclosed. However, the company said co-founders of Optime Subsea Services will retain an ownership share of about 50% of the merged company. Holta Invest will have an ownership share of about 40% with the rest retained by legacy Telemark Technologies investors. Velda Addison can be reached at vaddison@hartenergy.com.
Subsea technology company Optime Subsea Services and Norwegian engineering company Telemark Technologies are merging , with Norwegian investment company Holta Invest being a significant shareholder . Optime Subsea Services , as the merged companies are now known , will create a cost - effective modular wells completions system for the offshore oil and gas industry . The multiCompletionSystem is designed to cut costs for subsea tree installation by between $ 1 m and $ 2 m , as well as plug and play operations by $ 1 m . It is expected to be completed by the end of 2018 .