TruAxis JV Windup and Asset Distribution – Group Re-Structuring 04/05/2015

Axis Energy Projects’ announce the successful winding up of our joint venture company following the split of assets between ourselves and our JV partner.  The joint venture company successfully completed the turnkey supply of an EWT fluid transfer system to Noble Energy, offshore Equatorial Guinea in 2013/14.

Axis Energy Projects was contracted by Halliburton in January 2013 to perform a preliminary evaluation of an EWT export system on the Diega Field, offshore Equatorial Guinea which quickly moved into FEED.  In June 2013 we were asked by Noble Energy to supply a turnkey EWT fluid transfer system with our JV partner.  (See Case Studies: Noble Energy, Diega Field, Extended Well Test, Turnkey Provision of EWT Export System).

Given the complexity of the negotiations, including the purchase of equipment used on the Bentley Field EWT from Xcite Energy, it was decided the joint venture would be formed to serve as the vehicle for the project and the act as contract holder.  The equipment purchased included 14 reels of 300m long EC riser grade Manuli Hose and ancillary equipment, as well as full HEV assembly with associated buoyancy and rigging.  

The time pressures of the project required that the equipment was pressure tested, prepared and shipped to Equatorial Guinea immediately following contract award and this was achieved in 10 days.  Detailed engineering, development of installation and operational procedures, and risk assessments took place whilst the equipment was in transit to Equatorial Guinea and clearing customs. 

The export system was installed under the direct supervision of Axis Energy Projects Offshore Manager and took roughly 30 hours. The system was originally designed to be deployed for c. 15 days but in the end spent around three months in the field. Following the operational phase, the export system was successfully demobbed to Luba and was returned to Aberdeen in the June 2014.

Axis Energy Projects now has the in house capability to provide turnkey EWT fluid transfer systems from FEED and detailed engineering through to installation, operation and recovery, with a track record going back to the design of the Schiehallion and Fionaven EWT export systems in the early 1990s.

Following completion of the JV wind up, focus turns to restructuring the company to reflect our increased scope of supply and achieving the next phase of our business plan, beginning with the appointment of some respected industry figures to bolster the Board of Directors.  Our plan is to have the right structure in place to ensure we are fully aligned to our customer’s goals and to support our increased our scope of supply.

Managing Director, John Baross, said: “We are pleased to have completed the JV wind up deal, leaving us free to utilise our equipment on our own projects.  The equipment includes 1800m of high specification riser grade long length Manuli hose which is available for hire or sale.  We now have the in house capability to provide low cost turnkey mooring and fluid transfer solutions applicable to early or tail end production, marginal fields, and EWTs fluid transfer export systems.

 “The current economic climate makes it all the more important to focus on aligning our services to the needs of our clients, and to delivering our lean solutions mooring and fluid transfer on time and budget.  

“Our approach of providing cost effective solutions to the problems posed in the offshore industries was developed in the nineties at a time of similar economic challenges. Our planned appointments are people who at that time were either members of our  clients team or who worked with us as suppliers, and as a result, we will have an additional wealth of experience to add to our own and our long track record of success in helping companies achieve their mooring and fluid transfer goals in a low oil price environment.”

To further prepare for our increasing scope of supply, Axis Energy Projects has recently gained certification to the ISO 14001 Environmental Management System and OHSAS 18001 Occupational Health and Safety Management System standards.