Proserv Offshore launches risk-free decommissioning service at OTC
07/05/09 14:42 Filed in: Client news
Proserv Offshore is launching a new risk-free decommissioning service, Proserv Energy, on its stand at OTC.
Initially targeted at the US market, Proserv Energy will take over offshore assets that are earmarked for decommissioning, assuming the risks and responsibilities involved in planning, project managing, budgeting and execution.
Proserv Offshore believes this new service will be particularly welcome in the current difficult financial environment. Small to medium-sized producers, in particular, are keen to free up operating capital by disposing of non-productive liabilities.
They are also concerned about recruiting the necessary manpower to project manage a decommissioning project and raising the finance to meet all the environmental, legal and insurance requirements.
“In the current financial climate producers need to focus their resources and their staff on taking their business forward,” explains David Dent, Managing Director of Proserv Offshore.
Ron Twachtman, who is heading up the Proserv Energy Division adds: “Once a producer has identified a lease to decommission, Proserv Energy will submit its total cost. The lease is then assigned to Proserv Energy, and we take on the asset with all the liabilities, including plugging the wells, abandonment of pipelines, removal of structures and any debris.
“The response has been very positive. Industry leaders we have spoken to see great benefit in smaller producers being able to transfer non-producing liabilities off their books and also avoiding the considerable costs and liabilities involved in a decommissioning project.”
The new Proserv Energy division will be based at Proserv Offshore’s base in Houston, Texas.
Proserv Offshore was established as a separate company earlier this year. It was previously Proserv Abandonment and Decommissioning – a business unit within the Proserv Group.
The business was grown through a series of acquisitions over the past two years and now has a geographical spread from Australia and Malaysia, through the Middle East and Europe, to the Gulf of Mexico. The company has an annual turnover of £40 million and a total of 200 people worldwide.
With a history stretching back 20 years, Proserv Offshore has experience of more than 600 decommissioning projects around the world.