Baker Hughes and Odfjell Drilling to help BP transform platform drilling and completions activity
The alliance aims to boost production across the Clair oilfield, starting with Clair Ridge. (Credit: Keri Jackson from Pixabay)
BP has entered into an agreement with Baker Hughes and Odfjell Drilling to form an alliance with an objective to boost production of the Clair oilfield in the UK North Sea.
As per the tripartite agreement, the parties will collaborate on transforming platform drilling and completions activity at the BP-operated field.
The five-year risk-reward sharing agreement signed by the parties has an option to be extended for an additional four years.
Initially the aim of the Clair alliance is to increase the average annual production on Clair Ridge by 15%. Clair Ridge is the £4.5bn second phase development of the Clair field, which has been in production since November 2018.
To achieve their target, the alliance plans to form a single collaborative team for drilling the best quality wells safely and also more efficiently. The team will harness the skills and expertise of each of the three companies in the process.
The alliance will also leverage Integrated Operations Level (IO3), a technologically-advanced model for shaping both onshore support and offshore work.
In the IO3 model, a single well services provider works as part of an integrated operating team and use enabling technologies for moving tasks from offshore to onshore.
BP North Sea senior vice president Emeka Emembolu said: “Maximising the Clair field’s 7bn barrel potential safely and efficiently is crucial to ensuring a sustainable future for our existing and future Clair developments.
“We believe the collaborative approach of the Clair alliance – where all parties work towards and are rewarded by achieving this common goal – is fundamental to achieving this and will be crucial in our mission to become the best oil and gas business we can in the North Sea.”
The alliance will have a new governance structure with a project management team onshore. Personnel from the three companies will handle the daily drilling and completion activities offshore.
Overseeing the Clair alliance will be a steering group that will feature representatives from all three parties.
Baker Hughes oilfield services Europe vice president Marianne Davenport said: “We are excited to embark on this journey with BP and Odfjell to transform the way we deliver wells.
“Using progressive remote operations models and digital solutions, this alliance is an important milestone on the shared journey towards safer, more profitable and lower carbon intensity operations.”
The Clair oilfield, which is located 75km west of the Shetland Islands, started production in 2005. Although it was discovered in 1997, its development took a long time due to challenging reservoir characteristics and limitations in technology at that time.