Welltec sees increased demand for services as operators shift focus
ALLEROED, Denmark -- International oil and gas industry solutions provider, Welltec, has reported a marked increase in demand for its services in the North Sea as operators scale down drilling operations.
The company, which is headquartered in Denmark and has bases globally, says a reduction in investment in new wells in the North Sea has resulted in resources being redirected towards enhancing oil recovery from existing wells. Welltec says the low price of oil has resulted in a rise in requests for the company’s intervention services.
In real terms, this has equated to a 47% rise in intervention work over the four-year period from 2012 to 2015, with firms making use of the vast range of technology in the Welltec portfolio.
In particular, the oil price plunge in 2015, down 50% compared to 2012, has driven the increased demand for intervention services. This is a development that corresponds with operators’ trend of cutting capital expenditures, such as drilling activities, and shifting focus towards intervention—a trend recently documented by a leading oil and gas consultancy agency.
Deferred production
Welltec’s solutions are designed to increase oil recovery and activate deferred production while at the same time reducing lifting costs, allowing operators to get the best results in the current climate.
“This new development is a necessary reaction from the industry and shows that the current downturn has prompted operators to search for new strategies to maintain or increase production,” Christian Krüger, V.P. of intervention at Welltec, said. “In the light of the current low oil price, we are seeing operators focus on protecting and optimizing their existing assets and our solutions are designed to increase recovery while at the same time reduce lifting costs, allowing our customers to maintain positive cash flow.
Welltec has a range of intervention solutions available to clients, aimed at maximizing oil recovery from existing wells—extending the lifespan of fields and at a much lower cost than fresh drilling.
