A start-up Scottish engineering company has secured a contract – potentially worth £millions – with Statoil following a successful trial of its downhole well-completions technology.
Sand-control engineering specialist, Darcy, has signed a framework agreement to supply its hydraulic-screen technology to the oil giant’s assets in the Norwegian North Sea.
The contract, which could have a seven year duration, could be worth millions to Darcy, representing a step-change in the company’s growth.
Based in Kintore, Aberdeenshire, Darcy launched in 2010 to develop innovative sand control systems. The company also works with operators to develop customised hydraulic screen solutions to meet project specific sand challenges including extreme HPHT environments.
The company takes its name from Darcy’s Law, the scientific theorem for understanding flow of liquids and semi-liquids in porous media.
With 70% of mature and deep water oil and gas wells requiring costly sand-control measures, Darcy believes there is a significant global market for the hydraulic screen technology enabling operators to complete sand plagued wells much more efficiently.
Steve Bruce, Darcy Chief Executive, said: “This framework agreement is a major growth milestone signals a new trajectory for us. Having invested considerably in the development of our hydraulic screens, it is fantastic to now have proven technology which we aim to roll out globally at a time when the industry is focused on driving efficiencies and reducing costs.”
“Our hydraulic system offers a more efficient alternative and enables operators to complete wells which would be difficult or impossible using traditional sand control methods..
Darcy designed and developed the technology in response to industry concerns about the high failure rate and costs of traditional gravel packing methods to control produced sand in well completions operations
The agreement comes on the back of a world-first successful installation of Darcy’s technology on Statoil’s Statfjord oil field in the Norwegian North Sea. This field faces challenges with continuous pressure depletion and reduced margins for pumping traditional open hole gravel packs.
Integrating with Statoil’s completion equipment suppliers, the activation of the hydraulic screen took less than one hour of rig time.