Proserv wins £4m contract to redevelop North Sea oil field

Proserv wins £4m contract to redevelop North Sea oil field

Aberdeenshire-headquartered Proserv will build new and upgrade existing subsea production equipment for Repsol’s Yme field, which lies around 60miles from the Norwegian coast.

Yme has recoverable oil reserves at an estimated 65m barrels over 10 years of production, with first oil planned for 2020. The field was discovered in 1987 and was in production between 1996 and 2001 but was abandoned due to low costs and high oil prices.

Proserv will refurbish the existing subsea equipment, which includes control modules. This will extend it beyond its original design life.

Henrik Johnson, region president for Scandinavia at Proserv, said: “This is a significant award win for the team that clearly demonstrates the strength of our relationship with Repsol and our ability to deliver robust technology solutions and services on time and to the very highest standards.

“We are starting to see strong uptake for our Augmented Control Technologies (ACT) approach which helps clients optimise their subsea production in a more cost-effective way. Working in close co-operation with our clients enables us to use the most appropriate technology together with our dedicated engineering and service teams to optimise the performance of a producing asset over its entire life.

“We don’t see such an award as a one-off discrete project, but rather the start of a life-of-field relationship where our role is to provide the best technical and service support whilst maximising our clients’ returns over the entire asset life.”

The contract win comes after Proserv announced a restructuring deal, which saw global investments giants Oaktree Capital Management and KKR take a controlling stake, with around £36m of fresh capital being injected into the company.

Tore Erntsen, vice president for subsea controls at Proserv, said: “In these austere times, it is fundamental to change the way we act and respond to a challenge. Just as there’s never been a greater need for collaboration, we must think smarter about technology and how we can use what already exists in different ways together.

“The revitalisation of the Yme field, with Repsol bringing forward a revised plan for development and operation, is a prime example of how Proserv’s approach can add value by improving existing equipment reliability and maximising field life.”