BP PLC has awarded Add Energy Group AS a 10-year contract for well support services, including emergency control.
“Under the master services agreement, Add Energy will provide well control engineering modeling services,” the Stavanger, Norway-based company said in a press release this week.
It did not disclose the value of the contract, which will be executed through Add Energy’s teams in Norway and the US.
“Our organizations have a long-term business relationship and we look forward to working together again over the next decade to constantly improve preventive well control measures,” said Morten Haug Emilsen, manager of Add Energy for Well Control , in a statement.
“With a track record of approximately 85 live well incidents assessed and mitigated, and having delivered more than 1,800 blowout contingency studies, we are considered one of the world’s leading companies in the field of well control,” he added Emilsen.
Add Energy is currently working on a method to standardize explosion analysis.
On July 20, it said it won funding to develop “a method to standardize blowout event consequence analysis to support consistent risk measurement of unintended well control events.” The $354,160 grant from the US government-backed Ocean Energy Safety Institute is part of an award to improve safety standards in the oil and gas industry.
“Standardizing this methodology will allow the industry to better prepare for, prevent and respond to well control events,” Ray Tommy Oskarsen, Add Energy’s senior vice president for well control and the blast support.
Add Energy previously announced that it is combining services with energy consultancy and software firm AGR, a partner company of the ABL ASA Group.
” Multidisciplinary energy and software specialists AGR and Add Energy combine their expert services in drilling, wells and reservoirs and energy transition technologies, CCUS [carbon capture, utilization and storage]and geothermal, under the AGR brand,” Add Energy said in a July 4 press release.
This translates into a partnership with more than 70 years of combined industry experience, nine offices worldwide and more than 400 experts, he said.
“The increased global footprint will enable AGR to better serve its existing clients while pursuing new opportunities in emerging markets,” the announcement said.
“This move follows the recent acquisition of AGR and Add Energy by global energy, marine and engineering consultants ABL Group ASA. Both strategic acquisitions have strengthened the group’s full suite of services to drive optimization and efficiency in oil and gas operations and the broader value chain.” the announcement noted.
ABL announced the acquisition of Add Energy on July 11, 2022, saying the move “expands the ABL Group’s service offering within renewables, improves services in the operation phase and gains the entry into digital optimization, carbon storage and energy efficiency services that are crucial to the energy transition.”.
“The ABL Group has traditionally been more exposed to the capex-driven field development side of the offshore energy industries. Through this acquisition we are gaining additional exposure to the opex-driven side of offshore oil and gas and energy industries, including decarbonization and life extension work,” ABL CEO Reuben Segal said in a statement. “This reflects our commitment to the transition of all energy areas and oceans to net zero.”
The announcement did not disclose the value of the transaction, a 100 percent share purchase that was completed in July 2022, according to ABL’s quarterly report released on November 3, 2022.
Meanwhile, AGR was acquired by ABL this year for $25.1 million in cash at current rates.
“The acquisition strengthens ABL Group’s offering within well and reservoir consulting, enhances the group’s position by supporting operators’ digitization and decarbonisation plans and broadens its exposure to offshore energy driven by opex,” ABL said in a press release on April 18, 2023.
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