Well-Safe Solutions has secured a significant new £66 million investment to fund the next phase of its journey as a tier one well decommissioning company.

MW&L Capital Partners has led the new round of investment, bringing together a consortium of private investors to acquire a major stake in the business.

Expenditure on decommissioning in the UK Continental Shelf is forecast to be £15.3 billion in the next decade*. Well decommissioning accounts for approximately 49% of total spend, equating to £7.5 billion spend over the next decade. Around 5,000 wells, of which 1,000 are subsea, require to be decommissioned in the North Sea.

Well-Safe chief executive, Phil Milton, said: “This significant investment marks the beginning of our next phase of planned growth. The initial private funding from our original shareholders has enabled us to build strong foundations. We have amassed the largest concentration of well decommissioning expertise in the North Sea, secured major plug and abandonment (P&A) contracts, and are generating significant revenues from our engineering business. In addition, we have acquired our first asset, the Well-Safe Guardian which is currently being upgraded and converted into a bespoke P&A asset for the industry.”

“With the backing of MW&L and existing shareholders, we’ll be bringing the Well-Safe Guardian into operation in the first half of 2020 and looking to acquire further assets as planned to accelerate the delivery of our campaign-based approach to the plug and abandonment of wells in the North Sea and Continental Europe.”

Mr Milton explained that this was a long term investment in Well-Safe which is delivering a long term solution to one of the industry’s biggest challenges.

MW&L is a private investment vehicle providing flexible, long term capital to growth businesses. Julian Metherell, a Founding Partner of MW&L commented: “Decommissioning is one of the greatest industrial challenges we face and a sector with massive global potential.”

“Well-Safe, with its wealth of well decommissioning experience, dedicated marine P&A assets and associated equipment, is the first-of-its-kind tier one company with a complete P&A capability, and is ideally placed to capitalise on this opportunity.”

Well-Safe was launched in 2017 to provide a ground-breaking approach to safe and cost-efficient decommissioning and now employs 70 staff and around 20 contractors. As a specialist well decommissioning company it allows operators to meet the challenges and regulatory requirements around decommissioning, while significantly reducing costs.

Well-Safe Solutions was established by industry stalwarts, Alasdair Locke, Mark Patterson, and Paul Warwick. Funding from Scottish Enterprise, including investment from the Scottish Investment Bank and a regional selective assistance grant, bolstered the initial private funding provided by the major shareholders.

Alasdair Locke and Paul Warwick remain as Chairman and non-executive director respectively. Julian Metherell of MW&L joins the board which also comprises Well-Safe’s senior management and Scottish Enterprise. Founding executive director, Mark Patterson, will be stepping down following the deal.

Mr Patterson said: “I am proud to have been involved in establishing a business that has the potential to revolutionise how we tackle well decommissioning safely, responsibly and cost-effectively. When embarking on this venture, I wanted to get the business onto the best footing, launching the brand and creating the right environment to attract the most experienced people in the industry to form a centre of excellence in P&A. With these accomplished and the first tranche of major external investment in place, the time is now right for me to step down and leave the business in safe and expert hands.”

Being part of our Plug and Abandonment Club will give you access to our unique vehicle to de-risk your profile of well inventory, with fixed rate guarantees, flexible delivery options, and future budget certainty. The P&A Club will provide an open and trusted knowledge sharing platform which helps to deliver continuous improvement to delivery performance driving, future proof solutions within a safe, collaborative environment.

We own and operate the Well-Safe Guardian, currently being configured to be the first dedicated well-decommissioning semi-submersible in the world. Owning this asset enables Well-Safe to provide cost certainty for the largest component cost in well decommissioning: the cost of the rig. Employing the same repeatable processes, with a constant crew of specialists and long-term relationships with our subcontractors, builds trust within the team, and provides our clients with a much higher degree of economic confidence.

By arranging multiple work scopes into continuous campaigns, we continually absorb and utilise lessons learned in the planning and execution of our well decommissioning projects, thereby maximizing efficiency.

Well-Safe Solutions are adding value to clients’ well decommissioning scope by providing highly skilled abandonment engineers using bespoke processes to design & deliver safe & compliant projects.

Continuous and diligent examination of risks & opportunities versus project requirements & economics, all within a safe & compliant working environment, means that Well-Safe are experts at balancing complexities for project success.

Well-Safe Solutions has today announced the award of two multi-million-pound contracts to continue the refurbishment of the Well-Safe Guardian, the decommissioning company’s first asset, into a bespoke plug and abandonment unit.

Global Energy Group and Rigfit7seas have been appointed to deliver the ambitious upgrade of the semi-submersible drilling rig. Global Energy Group will provide quayside services and the paintwork scope while Rigfit7seas will provide accommodation upgrade services.

Well-Safe Solutions is progressing in a timely manner with the refurbishment work on the asset which it acquired earlier this summer. As part of the upgrade, the company will be installing a dive system and the capability to deploy a SIL (Subsea Intervention Lubricator).

Phil Milton, Chief Executive Officer of Well-Safe Solutions, said: “The award of these contracts, within the timeframes we committed to, will ensure that this bespoke plug and abandonment asset will be available to the industry in 2020.”

Global Energy Group, who have been supporting Well-Safe with marine operations and quayside services since April, have secured the contract to support the upgrades and life extension works at the Port of Nigg.

Stuart Paterson, Managing Director for Global Energy Group, Access & Coatings commented: “We are thrilled to have been awarded this contract to bring the flagship semi-submersible up to standard. Creating opportunity for additional employment, we expect to have in the region of 80 personnel engaged in various work scopes until the end of the year.

“Working in partnership with Well-Safe Solutions, Global Energy Group will provide fully-encapsulated scaffold access, blast and paint services along with the provision of rope access personnel, mobile cranes, plant and labour, workboats and onsite facilities for the duration of the rig’s yard stay at our Nigg Energy Park facility.”

Brian Knowles, Group Managing Director, Rigfit7seas said: “We are delighted that Well-Safe Solutions has chosen Rigfit7Seas to carry out this sizeable scope on their flagship project. As the leading contractor in the market for accommodation upgrade services, this award will see Rigfit7Seas execute another project destined for operation in the North Sea. The project award further enhances our already extensive offering in the international marketplace and, at peak, will secure around 50 jobs across our engineering and construction teams for approximately 100 days, starting immediately.”

Launched in August 2017 with the vision to become a Tier 1 wells decommissioning company,  Aberdeen-based Well-Safe Solutions boasts over 500 wells’ worth of experience among its staff and is firmly on track to deliver a complete P&A solution to its clients.

Mr Milton added: “We believe we are now a key part of helping the industry achieve its 35% decommissioning cost reduction target. Joint well plug and abandonment campaigns, using our club approach will not only be more cost-efficient, but also help build UK supply chain expertise in decommissioning.”

Research has indicated there are over 33,000 wells worldwide to be decommissioned over the next twenty years.  The company’s long-term goal is to export their model and advance from the UK into this global marketplace.

It’s Well-Safe Solutions’ Two Year Anniversary!

“With continued support and collaboration from the industry, it has been brilliant to watch the company grow over the last year. Not only in size, but in strength with over 500 wells worth of experience, from our dedicated and hardworking team. Acquiring the Well-Safe Guardian, the first asset from our P&A Club offering and landing our first major contract have been huge highlights this year and with the move to our new office just around the corner, we can’t wait to continue our journey with some exciting opportunities coming up!” Phil Milton, Chief Executive Officer.

Well-Safe Solutions today announced it will be moving headquarters following a landmark contract win and acquisition of its first asset. 

The decommissioning company, set up in 2017, has invested several million in its new headquarters at the C4 Gateway Business Park, Cove, Aberdeen, having outgrown its facility at Hill of Rubislaw. 

Established to provide a unique Tier 1 well abandonment service, Well-Safe Solutions is on-track to deliver its ambitious plans, having acquired a semi-submersible drilling rig – the Well-Safe Guardian and been awarded a contract to decommission up to twenty-one wells on the Schooner and Ketch fields in the UKCS, operated by DNO North Sea (ROGB) Limited. 

Graeme Murray, Legal & Commercial Director at Well-Safe Solutions, commented “This has been an exciting journey and we are now ready to take the next step towards growing the business.

“We are delighted to have found an ideal building that will give our employees a great working environment.  It also will give us very quick access to our Dundee marine base, and with the new Aberdeen Western Peripheral Route (AWPR), it will be much easier for all our employees to travel to and from the site.”   

The facility has the capability to house more than 200 people over two floors, with Well-Safe Solutions initially taking over the top floor with the option to expand downstairs giving sufficient capacity to accommodate continued growth over the next five years.   

Mr Murray added: “This significant investment demonstrates the company’s desire to become a global leader in the well decommissioning space. “ 

The company is gearing up for further contract awards and is in the final process of selecting a number of assets that it will purchase to enhance its complete well plug and abandonment package offering. 

Well-Safe Solutions has announced the award of a major contract to decommission up to twenty-one wells on the Schooner and Ketch fields in the UKCS, operated by DNO North Sea (ROGB) Limited, a wholly-owned subsidiary of DNO ASA.

The Schooner and Ketch fields, located in the UK Southern North Sea, ceased production in August 2018, with 20 platform wells and a single subsea well. The project will start immediately with a plan to commence offshore operations at the end of 2019. The campaign is expected to last approximately two years.

Phil Milton, chief executive at Well-Safe Solutions said: “This is a fantastic achievement for Well-Safe, allowing us to build a continuous programme of work through campaign-based approach and realising the associated benefits.”

Well-Safe will be responsible for the delivery of key aspects of the project including engineering,  contractor management and logistics with DNO retaining well operatorship.

The contract award follows the recent announcement of Well-Safe’s acquisition of its first semi-submersible asset, the Well-Safe Guardian.

Featured Picture: Bogi Vang, Deputy Country Manager UK & Senior Financial Adviser at DNO North Sea and Phil Milton, Chief Executive Officer at Well-Safe Solutions

Well-Safe Solutions today announced that it has agreed to acquire the Ocean Guardian semi-submersible drilling unit; sparking another jobs boost for the company.

The asset, currently owned by Diamond Offshore, has been a stalwart in the North Sea, drilling hundreds of wells since entering service in 1985.

Upon delivery, Well-Safe Solutions will start work immediately on an upgrade of the semi-submersible, which will be renamed the Well-Safe Guardian, converting the asset into a bespoke plug and abandonment (P&A) unit.

Well-Safe Solutions will invest in the region of $100 million dollars on upgrades to deliver a truly bespoke P&A unit. This will include installing a dive system and the capability to deploy a subsea intervention lubricator, the design of which has been supported by the Oil and Gas Technology Centre (OGTC).

Well-Safe Solutions confirmed that the acquisition would bring a further ninety jobs to the North Sea over the course of the next year, adding to the company’s current forty employees.

This is the first time a privately owned, Scottish business will own and operate this type of unit. The company is already progressing conversations to add a second semi-submersible to their business. This will be followed by a jack-up rig, monohull vessel and land-based P&A units.

Mark Patterson, Executive Director, who heads up the asset purchase programme, said: “This is a major milestone in Well-Safe’s journey and one that is in-line with our strategy.  It’s great to have the Ocean Guardian, which has a great reputation on which we will build, as our first asset.”

Launched in August 2017 with the vision to become a Tier 1 wells decommissioning company, the Aberdeen-based company is progressing swiftly to realising its ambition, boasting over 450 wells’ worth of experience amongst their team.

Andy Samuel, CEO of OGA, commented: “The OGA very much welcomes new investments and innovative business models such as this, as a key part of achieving industry’s 35% decommissioning cost reduction target. Joint well plug and abandon campaigns, using the club approach should not only prove to be more cost-efficient, but also help build UK supply chain expertise in decommissioning which is then globally exportable.”

Phil Milton, Chief Executive Officer of Well-Safe Solutions said: “We have stayed totally focused and committed to our original strategy and are delighted to have reached this agreement with Diamond Offshore for the acquisition of our first asset, which will allow us to deliver the complete P&A solution.”

“We have had a number of in-depth conversations with potential clients and believe the purchase of this asset will allow us to advance these towards firm commitments to our P&A Club”

Research has indicated there are over 33,000 wells worldwide to be decommissioned over the next twenty years.  Well-Safe’s long-term goal is to export their model and advance from the UK into this global marketplace.

Well-Safe Solutions is today delighted to announce the appointment of a key position within the Executive Team.

Matt Jenkins is to become Chief Operating Officer of Aberdeen-based Well-Safe Solutions with immediate effect, having been promoted from his previous role as Director of Well Abandonment.

Joining Well-Safe Solutions in late 2017 with 15 years of experience at ConocoPhillips, Matt led UK P&A Engineering and Strategy where he was responsible for the decommissioning of over 50 wells since 2014.

Matt said of his promotion: “I’m very proud to have been asked to step up into this incredibly important role within the organisation and I am excited at the opportunities this will bring me on a personal and professional level.

“The last year has been tremendously exciting with incredible support from industry We have gathered a fabulous team that is destined for great success.”

Chairman Alasdair Locke commented: “We are delighted to offer this promotion to Matt. He has demonstrated great leadership and understanding of our business and commercial offering and seeing such talent being rewarded with such a key position fits very well within the tremendous business ethos Well-Safe Solutions strive to achieve.”

Well-Safe Solutions’ CEO, Phil Milton, also commented of Matt’s appointment: “I am delighted to have Matt as the COO here at Well-Safe. He has more than demonstrated in the last year his ability to lead the operational aspects of Well-Safe and having him as a shareholder clearly demonstrates his commitment to the business.”

The company now has more than 35 personnel working for a string of clients and aims to employ more than 400 people within the next three years.

Well-Safe offers a fully-integrated ‘Tier 1’ well abandonment service, providing the complete P&A project delivery from strategy definition and development through to the execution of operations utilising the firm’s own bespoke marine and land-based assets.

Well-Safe has launched five P&A clubs that have sparked considerable interest in the business and is in final negotiations on acquiring key assets.

The team pledges to retain and share lessons learned and operate in collaboration with clients to achieve significant cost reductions. The capital released can then be utilised by operators to invest further in the North Sea basin and help execute Maximise Economic Recovery (MER), a key plank of the Oil & Gas Authority’s strategy.

Well abandonment specialists Well-Safe Solutions, in collaboration with Scottish Enterprise and ScotGrad, will bring on three new graduate positions in its Finance, Well Engineering and QHSE teams.

The Aberdeen-based company has amassed the largest concentration of decommissioning expertise in the oil and gas industry. Boasting in excess of 400 wells worth of experience among its workforce, Well-Safe believe it is the perfect time to introduce graduates into the rapidly growing business.

Phil Milton, Chief Executive Officer of Well-Safe Solutions said: “The importance of young people within the industry, especially at this time, is key. Well-Safe’s core values are based on collaboration, knowledge and lessons learned. As we’re a growing organisation, we look for people with unique skills and experience. It is an ideal time to bring in young talent to work alongside knowledgeable individuals and create a collaborative and sharing environment”

“Allowing individuals to develop a set of valuable skills as a foundation for their future is important to us and as a start-up organisation as we grow, they are able to grow alongside us. It is the perfect time to experience the business at this early stage.”

Well-Safe worked alongside Scottish Enterprise to develop this project and used the ScotGrad initiative to connect with a wide range of talent to fulfill the requirements necessary for these placements.

Carri Cusick, Well-Safe’s Account Manager at Scottish Enterprise said: “It’s fantastic to see Well-Safe welcome graduates into its workforce. ScotGrad introduces fresh graduate talent to Scotland’s businesses and offers graduates the chance to work on significant company projects, whilst providing them with much-needed work experience. These placements can often lead to permanent positions with some of Scotland’s most exciting companies.”

The addition of the three graduate positions follows the promising first year Well-Safe has had in business with the development of their five P&A clubs, aiming to reduce the cost of well plug and abandonment operations, following significant interest in this innovative approach by operators in the North Sea.

“Hard to believe it’s been a year in business already, we have achieved much more than we originally planned and had excellent support and collaboration with the industry. A lot of hard work, but equally lots of fun too. We’ve built a fantastic team and I am very impressed with their dedication. Now with 35 people and over 400 wells of expertise under our belt, this positions us well for our second year in business. We very much look forward to continuing the growth of the company, where we are working hard on some very exciting opportunities, which we will be delighted to share with you in due course!” says Mark Patterson, Executive Director.