Baker Hughes, W&T Offshore enter Gulf of Mexico pact
Baker Hughes, a GE company, and oil company W&T Offshore have entered into a strategic partnership related to W&T’s joint exploration and development program, which includes 14 drilling projects, most of which are operated by W&T in the Gulf of Mexico.
The partnership is part of W&T’s joint exploration and development agreements with a group of investors to drill up to 14 specified projects in the Gulf of Mexico over the next three plus years announced back in mid-March.
The agreement between BHGE and W&T was announced on Monday at 50th Offshore Technology Conference (OTC) in Houston, Texas.
The project utilizes a commercial model that consolidates BHGE engineering, products and services expertise in order to reduce total project costs and time to first production, BHGE explained on Monday.
The field development agreement will leverage BHGE’s portfolio to improve execution efficiency, reduce risk, and incentivize performance through shared objectives.
BHGE said it will provide drilling and evaluation, completions and well intervention, and pressure pumping services. It will also supply wellhead systems, subsea production systems which includes subsea trees, controls and associated subsea connection systems. Surface wellheads and production equipment, as well as the associated installation tooling and services will also be provided from the OFE product company.
“This partnership with BHGE is the type of collaborative arrangement that is enabling renewed activity in the Gulf of Mexico,” said Tracy Krohn, chairman and CEO of W&T.
“By partnering closely with BHGE we are locking in service reliability and ensuring access to the broadest selection of equipment and services and advanced industry technology.”
Kevin Wetherington, President of BHGE North America, said: “W&T was looking for a partner to help drive down the total cost of development. BHGE’s unique and flexible offering helps to consolidate engineering, products and services through one provider while leveraging the full technology and services leadership to meet their objectives.”
“W&T has a long track record of success in the Gulf of Mexico and we expect this partnership to accelerate the continuation of that success.”
Technologies from BHGE’s fullstream portfolio—including the TerrAdapt adaptive drill bit, the first self-adjusting drill bit in the industry—will be used for the development of these wells. The TerrAdapt bit earned OTC’s Spotlight on New Technology award.
It is worth mentioning that Baker Hughes last week entered into a new services partnership contract with the UK independent Chrysaor.
The contract is expected to run approximately three years and it covers the drilling, completion and subsea tie-in of development wells on Chrysaor’s operated assets, with BHGE supplying well services and equipment from its fullstream portfolio.