On 18th August 2016, TSC Group Holdings Limited (“TSC”) has entered into an agreement with Offshore CC FZE (“OCC FZE”) to form a Joint Venture, OIM Pte. Ltd. (“OIM”). The agreement was signed in Houston, Texas by Mr. Morgan Zhang, one of the founders of TSC and Mr. Oddgeir Indrestrand, the founder of OCC FZE. OIM is incorporated in Singapore, with operations in Singapore as well as in Norway and the United Kingdom. OIM name is derived from the name of Offshore Innovation Management company previously established by Mr. Indrestrand who originated the concept of a single jack-up solution capable of operating in the harsh North Sea environment with capability to combine Plug and Abandonment (“P&A”) and (“Decommissioning”) operations on offshore oil wells and decommissioning platform removal and installation.
P&A is the process where an obsolete oil well in an unproductive and or unprofitable oil reservoir is permanently sealed and environmental concerns over the oilfield is safeguarded. Decommissioning is the process where an offshore installation is removed in accordance with regulatory requirements to reinstate the sea environment where the offshore installations was in operations to an acceptable environmental condition. As many of the wells and offshore platforms in the North Sea and other areas worldwide has entered late stages of their life span, the needs for P&A and Decommissioning services will increase significantly over the next 20-30 years. The estimate of the scope, complexity and cost of P&A and Decommissioning projects that need to be undertaken on the different North Sea Continental Shelf will vary. However, hundreds of fixed installations, subsea production systems, over 3,000 pipelines and approximately 5,000 wells, will all eventually reach their end-of-life. It is estimated by the Oil & Gas Authority of the United Kingdom, the cost estimates for P&A and Decommissioning in the UK sector alone will be approximately US$ 63 billion up to 2050. The cost for the P&A and Decommissioning projects on the Norwegian Continental Shelf for the same period are estimated to be a further US$ 30 billion.
TSC has tremendous experience in providing fit-for-purpose Jack-up integrated solutions capable for benign and harsh environment such as the high specification 400ft jack-up rig R-550D which is in final stages of commissioning and client acceptance at CSSC Huangpu Wenchong Shipyard. “The formation of this JV is a step change transformation from TSC’s existing offshore drilling equipment and services to an integrated solutions provider for the full offshore oilfield lifespan. TSC has resourceful capabilities and good track record to provide offshore and jack-up market with high-end key equipment, including deck crane, jacking system, rack, control & drive, well control system, mud pump and so forth. We could have high standards of quality and delivery management to provide best products and services to our customers in the North Sea and globally” commented by Mr. Binghua Jiang, Chairman of TSC Group. TSC bears capabilities in both cutting-edge technologies in oil and gas field and noteworthy project experiences which enable TSC and its partner open up new relevant market high efficiently and to be well positioned to get early access to the vast and fast growing market in P&A and Decommissioning market. “We believe that the Integrated P&A and Decommissioning Jack-up Solution will be a frontrunner and game-changer to address uncertainties and factors influencing expenditure, such as the duration of P&A and Decommissioning faced by Oil Companies and Operators” added Mr. Jiang.
The new JV Company is an important milestone for TSC and OCC FZE’s strategic partnership. “OIM will assume the business objectives I envisioned for many years to provide a much needed cost effective and practical solution for a rapidly growing demand for P&A and Decommissioning operations，I am very excited to team up with TSC, as they are one of the best providers of jack-up solutions in the market”, said Mr. Oddgeir Indrestrand. Through OIM’s focus 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 more profitable segment of the oil and gas industry. Moreover, OIM will contribute itself to P&A and Decommissioning field and determine to expand its business to cover the whole life span of an offshore oilfield development from now on. Mr. Oddgeir added, the P&A and Decommissioning market has huge demand, especially for an integrated costs effective, harsh environment jack-up solution in addressing oil companies and operators consideration for on-time, budget, environment and safety factors. Our goal is to become the industry P&A, Decommissioning, Production and Accommodation choice using an integrated jack-up solution.
Mr. Morgan Zhang will serve as the Chairman of OIM. Oddgeir Indrestrand will serve as the CEO of OIM. There will be four offices established in Aberdeen, Houston, Oslo, Singapore, to cover the market in North Sea, Gulf of Mexico, and South East Asia.