KUALA LUMPUR (April 14): SapuraKencana Petroleum Bhd is joining forces with GE Oil&Gas Inc to deliver cost effective light well intervention services, says the Asian Oil & Gas (AOG) publication.
The two companies have entered into an Asia-Pacific wide agreement for the services, unlocking previously uneconomic subsea intervention activity, according to a report yesterday in the digital edition of AOG.
AOG is a bi-monthly digital magazine that provides topical, authoritative coverage of the pan-Asian oil and gas industry. It covers news, events and technology that relates to oil and gas producers.
The report said the agreement signifies the formalization of an exclusive business relationship which is already in operation, with an initial focus on the Australian waters province.
“Both parties are committed to a long term relationship, where they would collaborate with operators in the region to fully understand their challenges and provide appropriate enabling intervention solutions,” SapuraKencana senior vice president of engineering and construction Vivek Arora was quoted as saying in the report.
AOG said the strategic alliance will enable oil and gas operators to bring wells into production, deliver life-of-field intervention services, as well as to suspend and abandon these wells later in their life, without the need for costly mobile drilling units.
“The generally prohibitive cost of performing interventions on subsea wells has meant that the volume of hydrocarbons extracted from offshore fields with subsea wells is typically far lower than offshore fields with platform wells,” the report cited GE global leader for subsea services and offshore, Nick Dunn, as saying.
“By combining regionally-based assets with local infrastructure and support, the strategic alliance will bring a cost effective light well intervention solution to the market and create immediate value for the Asia Pacific community.
“The alliance is an excellent example of the changing market trend, where trusting relationships result in added value and cost savings for operators across the globe,” said Dunn.
At 2.35 pm, SapuraKencana shares were down 2 sen (1.07%) to RM1.85, with 1.52 million shares traded.