TSC Group Holdings (TSC) has signed an agreement with Offshore CC FZE to form a joint venture (JV).
The JV company, called OIM Pte (OIM) has been incorporated in Singapore, and will have operations in Singapore, Norway, and the UK.
OIM's aim is to provide a cost-effective and practical solution in response to a rapidly growing demand for plug and abandonment (P&A) operations on offshore oil wells, and decommissioning platform removal.
As OIM’s focus will be on P&A and decommissioning services, TSC will be able to leverage its expertise in drilling engineering, offshore rig equipment manufacturing, and jack-up rig solution capabilities, in a profitable segment of the oil and gas industry.
Many of the wells and offshore platforms in the North Sea, and other areas worldwide, have entered late stages of their life span, and therefore the requirements for P&A and decommissioning services will increase significantly over the next two to three decades.
According to the Oil & Gas Authority of the United Kingdom, the cost estimates for P&A and decommissioning until 2050 in the UK alone will be approximately $63bn.
The costs for the P&A and decommissioning projects on the Norwegian continental shelf for the same period are projected to be around $30bn.
In the JV company, a 70% stake is held by TSC, and 30% by OCC FZE.
The JV will primarily market, operate and maintain the fit-for-purpose rigs designed for operations in the North Sea for several major oil companies.