Repsol Sinopec Resources UK Limited has awarded a decommissioning contract to Archer for a plug and abandonment campaign on the Fulmar and Hallet fields offshore UK.
Archer will hire Repsol’s UK arm for the decommissioning of 30 wells in the Fulmar Field and two wells in the Halley Field.
The contract is a fully integrated P&A project, covering the complete work scope, including a modular P&A rig, well services and well engineering.
The Fulmar scope includes the removal of the existing drilling facility and the installation of one of Archer’s P&A rigs. This new contract will begin immediately, and the offshore P&A operations are set to begin in the second half of 2024 or early 2025.
“The estimated value of this integrated contract stands at roughly $165m spread over the next four to five years. We have noted an uptake in interest and tender proposals for such holistic P&A models, and we believe that this contract and similar project awards will drive growth in both turnover and profitability,” Dag Skindlo, CEO of Archer, said.