Shifting sliding sleeves in an upside-down completion using Well Key 325

An Indonesian well was designed with an upside down completion that was causing problems when the operator needed to shift two sliding sleeve doors (SSD’s) in the lower completion. Because of the upside down nature of the SSD’s and a nipple profile in the upper completion, the Well Stroker with its ability to stroke down and the Well Key with its slick design provided the ideal Mechanical Solution. The Well Key is designed to run in hole (RIH) with the keys collapsed, only extending them when positioned via e-line depth control in the vicinity of the SSD’s.

During the operation, the toolstring passed through the restriction with no complications and the Well Key profile was positioned with pinpoint accuracy above the sliding sleeve profile. Once in place and with the Well Stroker anchored above, the keys were activated in the sliding sleeve profile and the Well Stroker powered up to stroke down and shift open the sleeve. Once the first sleeve was opened the well was unloaded. The tools were re-run and the second sleeve opened a few days later.

This was the first sliding sleeve manipulation using the Well Key 325 in Indonesia and the operator was pleased with the outcome. It took only ten hours from rig up to rig down to open the first sleeve and the second operation was completed in just eight hours.

This operation is testament to the agility of Welltec’s Mechanical Solutions. Even with the upside-down completion, using the Well Stroker – Well Key combination enabled the well to be put on production as scheduled.

To learn more about Welltec’s Mechanical Solutions please download the brochure or contact Account Manager Kiki Darwahjudi in Indonesia.


Welltec Awarded Top Presentation in Mexico

Welltec was honoured to receive the award for best presentation at the ‘1st Forum of Technology Experience Exchange’ in Mexico. Welltec’s General Manager in Mexico, Jose Carillo, gave a thought-provoking presentation on how e-line solutions can increase production and improve efficiency in well interventions.

The newly established forum was organized by the Technology Resources Management Sub-Direction (Pemex Exploration and Production). In addition to PEMEX, the national oil company, and the Mexican Petroleum Institute, the event featured presentations from all the major service companies including Schlumberger, Halliburton, Baker and Weatherford. Out of a total of 46 presentations the organizing committee selected Welltec’s contribution as one of the top three.

Welltec in Mexico has already established an impressive track record, accomplishing 69 mobilizations and 110 runs in hole over several years. Welltec has performed 24 conveyance operations in deviated or horizontal wells with the Well Tractor, 26 clean-outs of subsurface safety valve (SSSVs) with the Well Cleaner, and a series of Well Miller operations to remove accumulated debris. All operations were executed successfully with Welltec’s unparalleled service quality and enabled the operators to quickly restore production.


Welltec Secures Direct Award in West Africa from Shell Gabon

Welltec is pleased to announce the award of a direct, two year contract from Shell Gabon for the supply of conveyance, well intervention and clean-out services.

“Shell Gabon is focused on realizing incremental production from existing assets in Gabon. The value proposition offered by Welltec’s services will enable Shell Gabon to realize their objectives of deploying light intervention technologies to address the challenges found in our more mature assets. In line with the new vision of Shell Gabon, this contract will allow us to have direct access to the suite of innovative technologies and methods available from Welltec” stated Keith Minton, the Head of Petroleum Engineering.

Welltec technologies and services increase flexibility and reduce the mobilization time for key operations compared to conventional intervention methods utilizing coiled tubing or jointed pipe. Other benefits include a reduction in the number of lifting operations, personnel and footprint, all contributing to improved risk management; particularly in environmentally sensitive environments.

‘Gbenga Onadeko, Welltec Senior Vice President, Africa explains that “as the pioneer and market leader of robotic conveyance and intervention technologies, we are extremely pleased by this award from a major client such as Shell Gabon. The continued adoption of our unique, inherently safer, e-line deployed intervention technologies further confirms the advantages of Welltec’s value proposition which is rapidly expanding in the region. Welltec is committed to assisting Shell Gabon increase incremental oil production from their existing and future assets”.

Welltec is the largest provider of tractor technology for conveyance solutions as well as the foremost provider of milling, clean-out and mechanical solutions globally. These technologies have been successfully developed and applied by Welltec for two decades.


Interim Report Q3-2013

Key highlights
Over the last twelve months Welltec’s revenues have increased by 19% and its EBITDA by 7%. Growth in the third quarter was reduced although activity levels continued to grow strongly, with revenues impacted by changing sales mix both geographically and in service solution. EBITDA was impacted by the lower gross margin, but supported by continuing improvements in utilization. Accordingly, Welltec® adjusts its forecast for 2013.
For the last twelve months to September, revenues grew 19% and EBITDA increased by 7%, with the EBITDA margin at 43%.
In the third quarter, revenues increased by 2% year on year to USD 78 million with varied regional contributions:
In Europe, Middle East, Africa and Russia CIS (EMEAR) revenues increased by 11% to USD 39 million
Revenues in the Americas fell by 4% to USD 30 million
Asia Pacific revenues declined by 12% to USD 9 million
Welltec® posted an EBITDA of USD 33 million in the third quarter, equating to an EBITDA margin of 42%, as compared to USD 37 million (49%) in the third quarter of 2012.
Operating profit (EBIT) was USD 14 million, as compared to USD 22 million in the third quarter of 2012.
In view of the performance in the first nine months and the outlook in the remainder of the year, Welltec® adjusts its guidance. Following the change of functional and reporting currency, management expects revenue to be around USD 330 million (12% growth) with EBITDA of USD 140 million, equating to an EBITDA margin around 43%. Welltec® previously expected revenue to be DKK 1.9-2.1 billion and the EBITDA margin at or around recent historical levels.
Jørgen Hallundbæk, CEO: “For the past year we have been in the process of implementing a more decentralized organizational structure to strengthen our regional capabilities and more effectively capitalize on the opportunities we see with our increased client base. While this transformation seems logical with all the time zones and different countries we work in, it has not been without challenges. Regional differences, lack of sufficient critical mass to support the transition in some areas, as well as organizational alignment challenges, have all prolonged the adaptation process, and this has impeded performance in some areas and with it our guidance. Therefore a continued effort is needed with an even more differentiated approach to secure the transition. I remain confident that in the longer term a stronger regional presence and our superior technological offering will pave the way for our continued growth.”

Investor conference call
Welltec® will discuss its results during an investor conference call today at 5 pm CET. An accompanying slide presentation is available on the “Investors” section of www.welltec.com under the subheading “Download Center”. The conference call can be accessed by dialing in a few minutes before the 5 pm CET start and informing the operator that you are dialing in for Welltec’s investor conference call, conference ID 93425248.

Conference access numbers
Denmark: +45 32 72 80 18
UK: +44 8445 718 957
US: +1 866 682 8490

The call will also be webcast simultaneously on a listen-only basis. Please log in via the “Investor” section of the website in due time to test your browser. A replay of the webcast will then be available following the transmission.

Company Profile
Welltec® is a leading provider of robotic intervention services and completion solutions to the oil and gas industry. Our pioneering technology enables operators to optimize their use of oil and gas resources throughout the life-cycle of their wells. We address the factors that maximize value creation, continuously innovating to reduce well construction time, speed up access to the hydrocarbons and reduce the capital expenditure burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the- art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, the premium attached to technology which aids in reversing these trends is continuing to gain momentum. Our value proposition is compelling; our technology enables clients to unlock more production from their assets and to address reservoir complexities and uncertainties with a greater number of options.

Important Notices
Any statement in this announcement that is not a historical fact is a “forward-looking statement”. Such statements may include opinions and expectations regarding Welltec® and its future business, management’s confidence and strategies as well as details of management’s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside Welltec’s control, and which could cause Welltec’s actual results to be materially different from these forward-looking statements. While Welltec® believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of Welltec’s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. Welltec® expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For further information, please contact:
Jesper Helmuth Larsen, Chief Financial Officer,
mobile: +45 23 29 26 00

Morten Græsbøll Ottesen, Investor Relations Director,
mobile: +45 22 33 73 08


Royal visit creates stronger tie between Pemex and Welltec

Last week a Danish delegation incl. Jørgen Hallundbæk and HRH Crown Prince Frederik of Denmark participated in a workshop at the Pemex office in Mexico. The meeting was part of an export promotion initiative taken by the Danish Ministry of Foreign Affairs and the Trade Council to further Danish – Mexican trade relations and promote Danish know-how within health and welfare, agriculture and food products, as well as energy and clean tech.

During the meeting, CEO of Pemex, Lozoya Austin, said that the visit will strengthen the collaboration between Pemex and Danish O&G companies and His Royal Highness stressed the importance of such summits to generate stronger ties between Pemex and Danish companies and said that this was one of the most important aspects of the visit to Mexico.

From a Welltec perspective this meeting and the following workshop was a good opportunity to further strengthen the partnership with Pemex and show how technologies like ours can improve recovery rates and the economics involved in well maintenance through ie. efficient scale clean-outs with lower risks than conventional methods.

To learn more about the technologies applied in Mexico, please view the Clean-out Solutions brochure or contact our General Manager in Mexico Jose Guadalupe Carrillo Osorio.


Well Cutter cases applauded at ADIPEC

This week the O&G community gathered in Abu Dhabi for the annual ADIPEC show. Welltec presented a paper based on a number of highly interesting local cases in which the novel Well Cutter was used to cut 4-1/2” production tubing in compression in several high deviation wells prior to a tubing change-out campaign. The Well Cutter was selected in order to reduce rig time during the workover operations due its non-explosive design, ability to cut pipe under compressions and the smooth beveled surface it produces, which precludes the need for a polishing trip. The paper discusses the operational sequence and lessons learned from the operations and includes a discussion of the design features of this novel tool.

During the show visitors to our booth had the opportunity to examine an expanded, all-metal WAB™ which was on display. The WAB comprises an integral part of our Flex-Well® completion concept, providing an all-metal barrier for zonal isolation or cement assurance

To learn more about the solutions described above, please see the Mechanical Solutions brochure or the Completion Solutions brochure or contact Rob MacFarlane or Paul Matthews respectively.


Welltec’s force-with-finesse technology enables significant time saving on straddle packer installation

When a deepwater well, offshore West Africa, was experiencing high GOR the operator initially chose to cycle the well production on and off to allow the reservoir to re-saturate with oil while shut-in, and then re-open the oil flow to the FPSO until the GOR became unacceptably high for the facilities. However, this temporary solution had caused a significant decrease in production.

Diagnostic surveys showed gas entry from the top of the open hole gravel pack completion. The operator, working with multiple service companies, engineered a solution, which required installing retrievable straddle isolation assemblies.

Installation and assembly of this straddle necessitated accurate depth control and “force-with-finesse”. Welltec’s combination of Well Tractor® and Well Stroker® offered the best solution, as it could exert the required force at the specific depth.

The first run was a drift run, then the lower packer was run with the Well Tractor® and set. The next run was the first joint of the assembly and the Well Tractor® was run to ensure the toolstring was seated into position and to compress the Well Stroker® piston. The Well Stroker® stroked down to ensure the RS2 latch had been fully seated and then sheared the GS running tool pin to release the toolstring from the assembly. The subsequent runs involved conveying and stroking the various joints and packers into position, resulting in a complete; sixteen successful runs.

The operation took only 15 days, which was 30 says less than originally anticipated by the operator. As a result of the intervention, gas production was reduced and oil production increased multifold.

To learn more about the technology applied please view the Mechanical Solutions brochure or read the full case story: Installation of straddle packer saves 30 days.


Surface read-out enables progress confirmation during GLV change-outs

A gas lift valve (GLV) in an oil producer needed change out and simulations showed that a Well Tractor was needed to reach target depth. The GLV was installed in a side-pocket mandrel, at 3,795.77 m MD RKB with a deviation of 76.9°. The well had been shut down for maintenance and when started back up the max gas lift was reduced from 7,500 to 2,000 m3/h. It appeared that the GLV was plugged and as there was a risk of slugging at low gas rates, the well was shut-in pending a solution. This complex intervention was further complicated by limited rig-up height on the platform.

A System Integration Test (SIT) was carried out prior to the operation to ensure compatibility between the Well Tractor®, Well Stroker® and the third party kickover tool (KOT), as this was the first run in a live well using this combination.

First a drift run confirmed that the toolstring would be able to reach target depth. When the GLV had successfully been pulled, the new GLV was then installed using the same toolstring with a running tool added. The surface read-out allowed the team to make direct real-time observations of the downhole parameters during the operation and provided confirmation that the GLV was set. Later the GLV was positively inflow tested by production.

The operator was especially pleased with the live data from the surface read-out and internally recommends using the Well Tractor® on all similar operations, independent of deviation, just to get indications of the pulling and setting sequences.

A month after the well was returned to production it produced 12,000 bpd, making it the third best producer in the field.


Welltec to establish a facility in Esbjerg, Denmark

Welltec has today entered into an agreement to establish a purpose-built manufacturing facility in Denmark’s energy capital Esbjerg. The facility is expected to be operational at the end of 2014 with a staff of 25-35 employees.

The new facility will increase Welltec’s manufacturing capacity within the completions solution segment and ensure high quality and uniform production as volumes grow. In addition, the facility will be used as an offshore supply base and a hub for Welltec’s operations in the Danish, German and Dutch parts of the North Sea as well as land-based operations in Central Europe.

“We are continuously expanding our business with the major operators in the oil and gas industry to create a stronger and more resilient company. It is important for us to be represented in Esbjerg, allowing us to further develop our relations to clients and partners in the North Sea directly out of Denmark’s energy capital. At the same time, the facility in Esbjerg will be central to the development, manufacturing and delivery of Welltec’s revolutionizing technologies for the oil and gas industry,” said Jørgen Hallundbæk, CEO of Welltec.

The facility comprises approximately 65,000 square feet of manufacturing area and 13,500 square feet of office area at a prime location in Esbjerg with close proximity to the harbor and highway.


Novel Completion Solution attracts attention at OTC Brasil

At the OTC Brasil, which took place the last week of October in Rio de Janeiro, the Welltec stand featured the Welltec Annular Barrier, or WAB™. This novel Completion Solution attracted a lot of attention for its unique capabilities providing cement assurance, zonal isolation and cementless completions in a wide range of environments. The WAB™ has been engineered to enable maximum reservoir drainage and flexibility of operations through-out the life of the well as part of the Flex-Well® concept and is the first step in future proofing the well.

During the conference Welltec presented two papers. The first, Regaining Wellbore Access and Enhancing Safety Devices Operation by Removing Obstructions Using E-line Conveyed Technology, describes in detail a number of scale clean-out interventions in Mexico that has allowed the operator to save significantly on rig and deferred production. The second paper, Improved Recovery Rate in Brownfield Subsea Wells Using Riserless Light Well Intervention, discusses the advantages of using the RLWI method to improve recovery rates from existing wells enabling operators to realize potential of up to 50% recovery.

To learn more about the WAB™ please download the Completion Solutions Brochure or contact Pedro Maciel, Well Completion Solutions Manager, Latin America.

For information on scale removal and other clean-out methods, please download the Clean-out Solutions brochure.

For information about Welltec’s RLWI capabilities, please contact Eddie Karlsen.