29 July 2020
News in brief
A roundup of the main developments regarding water in the oil & gas industry for July 1-31.
Norwegian operator OKEA said it achieved successful results from a March test in which it used a remotely operated vehicle to inject a hydrogen sulfide (H2S) scavenger into a subsea line at its offshore Draugen field. By taking this approach, OKEA has seen H2S content fall from 170 ppm to 60 ppm and oil-in-water content decrease significantly. As such, hydrocyclone cleaning and flocculant consumption has been reduced, leading the operator to estimate annual savings of NOK 8 million-12 million [~$873,000-1.31 million].
Engineering services firm Alderley announced on LinkedIn that it has been granted a contract to provide induced gas flotation internals, hydrocyclone parts and water collection vessels to an unnamed operator for installation on an FPSO.
Norway's Stauper Offshore has patented the installation process for its compact flotation unit (CFU) internals in existing vessels without the need for recertification. The company said in a press release that by using its internals to retrofit equipment including CFUs, degassers and water knock-out vessels, operators can save up to 50% in costs compared to new equipment installations.
The New Mexico State Land Office has identified more than 70 oil and produced water spills on public lands through a satellite data monitoring pilot carried out with aerospace company Planet. The project has been focused on the Permian Basin but is under consideration for expansion.
Biochemicals manufacturer Solugen released its ScavSol IC 75 product to market. The new “green” chemical, which is a scale and corrosion inhibitor, is an alternative to commonly used tetrakis hydroxymethyl phosphonium sulfate.
WaterBridge Resources filed a countersuit against Centennial Resources over a $10 million deposit from a $225 million asset and long-term acreage dedication agreement that fell through in May. The countersuit claims that following the March/April oil price crash, instead of providing proof of Centennial’s solvency prior to the deal’s closing date, the operator “began maneuvering to shift the blame” in “a transparent effort to make off with WaterBridge's deposit.” Centennial contends that WaterBridge wanted to renegotiate the sales price because it did not have the $150 million in upfront cash stipulated in the agreement. The operator’s legal team told WiO it had no comment, and WaterBridge’s counsel did not respond.
NGL Water Solutions secured a new 15-year produced water gathering and disposal contract with an unnamed super-major operator in Loving County, New Mexico. The company said it would use existing infrastructure to service its client.
The US Department of Energy (DoE) announced that the National Alliance for Water Innovation (NAWI) will issue a request for proposals for “brine management solutions for high-salinity streams” in August 2020. The DoE press release states that 4-12 projects could be awarded and that chosen teams must meet a minimum 25% cost share.
Solaris Water Midstream and Concho Resources have expanded their joint venture to include all of the operator’s acreage in Lea County, New Mexico. The revised agreement saw Solaris take over nine more saltwater disposal wells (SWDs) and 80 miles of large-diameter pipeline that had belonged to Concho. The companies established the joint venture in July 2019. The news comes as Concho reported quarterly losses for Q2 related to the oil price downturn.
A joint venture between oilfield services provider Petrofac and Kazakh company Isker won a $135 million contract to provide water treatment facilities for the North Caspian Project offshore Kazakhstan. During the 30-month project, equipment such as feedwater tanks, oil skimmers, pumps, a clarifier system, treated water storage tanks and sludge treatment utilities will be installed.