Repsol Sinopec Resources UK Ltd has chosen Archer to execute a decommissioning contract valued at £121.7 million. The contract encompasses the plug and abandonment (P&A) of 30 wells within the Fulmar Field and two wells in the Halley Field.

Archer's contract is a comprehensive, fully integrated P&A project that covers the entire work scope, including the deployment of a modular P&A rig, provision of well services, and well engineering.

The scope of work for the Fulmar Field involves the removal of the existing drilling facility and the installation of one of Archer's P&A rigs. In addition, Archer will deploy their broad P&A well services offering to reduce time and cost to plug each well. The scope of work will be delivered using cutting-edge technology, multiskilled crews, and industry-leading digital solutions in close collaboration with partners. This new contract will commence immediately, and integrated offshore P&A operations are expected to commence in the second half of 2024 or early 2025.

Dag Skindlo, CEO of Archer, expressed his enthusiasm for the contract, highlighting the company's strategic focus on developing a fully integrated operational model for P&A projects. Skindlo stated, "Archer has worked strategically over several years to develop this fully integrated model, and we are excited that Repsol Sinopec has chosen Archer as its partner."

The estimated value of this integrated contract stands at approximately £121.7 million spread over the next four to five years. Archer has noted an increased interest in holistic P&A models and believes that this contract, along with similar project awards, will drive growth in both turnover and profitability. The permanent plugging and abandonment of oil and gas wells is an essential activity as the world decarbonizes on the road to net-zero. Archer's goal is to industrialize the P&A process and spearhead innovation to reduce operators' P&A costs globally.

Adam Sheikh, Repsol Sinopec’s VP of Decommissioning and Energy Transition, stated, “We aim to deliver one of the North Sea’s most ambitious decommissioning programs in the years ahead – including the full decommissioning of our Fulmar Alpha Asset. This contract award represents a significant milestone in our decommissioning journey, and my thanks go to the teams for the vast amount of work to get us to this stage. As a company, we intend to deliver decommissioning work as cost-effectively as possible while minimizing environmental impact. We look forward to working closely with our partner Archer to safely deliver this decommissioning scope of works on our Fulmar Alpha facility.”