Add Energy Bags Well Support Contract from BP

BP PLC has awarded Add Energy Group AS a 10-year contract for well support services including emergency control.

"Under the Master Services Agreement, Add Energy will provide well control engineering modeling services", the Stavanger, Norway-based company said in a press release this week.

It did not disclose the value of the contract, which will be executed through Add Energy's teams in Norway and the USA.

"Our organizations have a long – term business relationship and we look forward to collaborating again over the next decade to constantly enhance preventive well control measures", Morten Haug Emilsen, Add Energy manager for well control, said in a statement.

“With a track record of approximately 85 live well incidents evaluated and mitigated, and having delivered more than 1,800 blowout contingency studies, we consider ourselves to be one of world’s leading companies within the field of well control", Emilsen added.

Add Energy is currently working on a method to standardize blowout analysis.

On July 20 it said it has won funding to come up with "a method to standardize blowout event consequence analysis to support consistent risk measurement of unwanted well control events". The $354,160 grant from the USA government-backed  Ocean Energy Safety Institute is part of an award to improve safety standards in the oil and gas industry.

"Standardization of such methodology will allow the industry to better prepare for, prevent and respond to well control events", Ray Tommy Oskarsen, Add Energy senior vice-president for well control and blowout support, said in a statement.

Add Energy announced earlier it is combining services with energy consultancy and software firm AGR, a fellow company under the ABL Group ASA.

"Multi-disciplinary energy and software specialists AGR and Add Energy are combining their expert services in drilling, wells, and reservoirs, and energy transition technologies, CCUS [carbon capture, utilization and storage], and geothermal, under the AGR brand", Add Energy said in a media release July 4.

That results in a partnership with over 70 years of combined industry experience, nine offices across the globe and more than 400 experts, it said.

"The increased global footprint will enable AGR to better serve its existing clients while also pursuing new opportunities in emerging markets", the announcement said.

"This move follows the recent acquisition of AGR and Add Energy by global energy, marine and engineering consultants ABL Group ASA. Both strategic acquisitions have bolstered the group’s comprehensive suite of services to drive optimization and efficiencies across oil & gas operations and the wider value chain", the announcement noted.

ABL announced the acquisition of Add Energy July 11, 2022, saying the move "broadens ABL Group’s service offering within renewables, enhances services in the opex phase and gains entry into digital optimization, carbon storage and energy efficiency services that are crucial to the energy transition".

“ABL Group has traditionally been more exposed to the capex-driven field development part of offshore energy industries. We are through this acquisition gaining additional exposure to the opex-driven side of offshore oil and gas and the power industries, including decarbonization and life extension work", ABL chief executive Reuben Segal said in a statement. "This reflects our commitment to transitioning all areas of energy and oceans to net-zero.”

The announcement did not disclose the value of the transaction, a 100 percent shares purchase that was completed July 2022, according to ABL's quarterly report published November 3, 2022.

AGR meanwhile was acquired by ABL this year for $25.1 million in cash at current rates.

"The acquisition bolsters ABL Group’s offering within well and reservoir consultancy, enhances the group’s position supporting operators’ digitalization and decarbonization plans, and expands its opex-driven offshore energy exposure", ABL said in a press release April 18, 2023.

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