Petrofac secures sizeable decommissioning contract in the Gulf of Mexico
Petrofac, a leading provider of services to the global energy industry, and Promethean Decommissioning Company (PDC), a pure-play Decommissioning Operator, have formed an Alliance to decommission the South Pass 60, South Pass 6 and East Breaks 165 fields, offshore Gulf of Mexico.
The legacy offshore fields and assets include nine platforms, 200 wells and 32 pipeline segments. The scope includes the safe, efficient, and assured decommissioning of the fields.
PDC takes on the role of Decommissioning Operator and is responsible for fulfilling the field Decommissioning Orders received from the U.S. Department of the Interior’s Bureau of Safety and Environmental Enforcement in February 2022.
Petrofac has been appointed by PDC as the Decommissioning Services Provider in a contract valued at around US$200m in line with the BSEE estimated decommissioning cost.
With over two decades of large-scale project execution experience and in-house well engineering capability, Petrofac will use its proven decommissioning programme management systems, tools, and processes to deliver the programme. Its integrated local team, working closely with its wider global decommissioning organisation and supply chain partners, have plugged and abandoned more than 600 wells and decommissioned over 100 facilities.
PDC is an Operator, focused solely on field decommissioning, and led by an industry experienced specialists with strong safety, regulatory, management and governance track records, and a mission to deliver cost-efficient and environmentally optimised decommissioning.
The Alliance has selected Danos, a leading Gulf of Mexico offshore services provider, for over 75 years to support field operations and the decommissioning programme. With nearly 2,500 employees, Danos has a proven history of operational excellence and safe operations. Their longstanding relationships in the Gulf of Mexico and comprehensive range of services positions them to provide the expertise needed for the programme.
The project will be led from Houston, with the integrated Alliance team using the latest digital software, including Petrofac’s proprietary project management tool Turus™, to deliver the decommissioning project with comprehensive dashboards, transparency and assurance.
Nick Shorten, Chief Operating Officer for Petrofac’s Asset Solutions business, said:
“This significant contract recognises our industry-leading decommissioning programme management experience and our unique in-house capability to manage all well and asset decommissioning phases. It’s been more than four decades since Petrofac first began in Texas and in that time we have expanded our offshore capabilities across the globe. This expertise will be applied to the project, complemented by our already strong onshore presence in Texas.
“We look forward to working with PDC as part of our Alliance to deliver a new approach to large-scale decommissioning programmes in the Gulf of Mexico.”
Aditya Singh, Founder and CEO, Promethean Energy Corporation said:
“Promethean is an oil and gas operator with an integrated approach to the development, production, and decommissioning of mature resources. We are pleased to offer our new outsourced ‘Decommissioning Operator’ service to the industry and to commence activity on this major decommissioning project. We are fully aligned with all our stakeholders to improve environmental performance through the safe and efficient decommissioning of end-of-life assets. We accomplish this with a dedicated, fit-for-purpose entity, PDC, via an integrated operating service model and focused programme management. I am particularly pleased that the PDC and Petrofac Alliance has been selected, leveraging the complementary strengths of both companies.”