Optime Subsea Signs Framework Agreement With Wintershall Dea
Three-year plus options deal could generate around $50 million in revenues for subsea contractor.
Optime Subsea signed a long-term framework agreement with Wintershall Dea covering the rental of the technology company’s remote-controlled subsea well completion and intervention systems.
Under the scope of the agreement, Wintershall Dea will rent three Remotely Operated Controls System (ROCS) including its universal landing string system (panpipe), and two wireless electric subsea control and intervention systems (eSCILS) from Optime Subsea. The latter will also provide technical service personnel to support Wintershall Dea’s operations.
The framework agreement is set for a firm period of 3 years plus two additional 2-year options. If both option periods are exercised, Optime Subsea estimates that the contract could generate total revenues of around $48.5 million.
Wintershall Dea will utilize the ROCS and eSCILS equipment at its operated fields on the Norwegian continental shelf.
In 2022, Optime Subsea made an upfront three-figure NOK million investment to build 10 similar ROCS systems. A North Sea operator ordered the first two systems, a West African operator the third, and now Wintershall Dea has secured the next three.
“The decision to make such a large upfront investment was based on our market position and interest received from operators globally, plus an attempt to manage supply chain constraints,” said Jan-Fredrik Carlsen, chief executive of Optime. “Looking back, it was obviously an ambitious but smart decision. We expect to close contracts for the remaining four systems during the next 6 months.”
The ROCS is a fully battery-powered and umbilical-less system for well-completion operations. It eliminates the need for the umbilical that normally runs from the topside to seabed to control the tubing hanger during completions. ROCS is mobilized in a single basket, prepared and made up onshore, allowing it to be ready to run immediately from an offshore rig.
The eSCILS is a battery-powered and umbilical-less subsea access device for well interventions and workover operations. eSCILS is lowered down to the seabed next to the well and can be connected to any type of subsea tree. The device can be run via a laptop or other computer, according to Optime. No additional rig equipment is required. It can be transported to and from the rig on a ship and be mobilized and demobilized in one day.
Optime Subsea will manufacture all equipment at the company’s headquarters in Notodden, Norway.