Helix Energy Solutions

Helix tucks five-year decom gig under its belt in Gulf of Mexico

U.S.-headquartered offshore energy services provider Helix Energy Solutions has got its hands on a long-term joint decommissioning agreement with a compatriot oil and gas player, Talos Energy.

Helix Energy Solutions

The five-year deal will enable Helix to provide decommissioning services for offshore wells and infrastructure, primarily in the U.S. Gulf of Mexico. Based on the terms of the agreement, the decommissioning work is expected to begin in the second quarter of 2024. Talos has agreed to provide Helix with the first right of refusal regarding specific annual work scopes for its decommissioning requirements in the U.S. Gulf of Mexico.

The projected scope of work includes the U.S. firm’s abandonment of offshore wells, pipelines, and platforms, primarily on the shelf. Helix’s Louisiana-based shallow water abandonment group, Helix Alliance, intends to utilize derrick barges for structure removals, liftboats for plug and abandonment activities, and dive support vessels (DSVs) for pipeline abandonments, in addition to multiple offshore supply vessels (OSVs) and several other assets throughout the campaign.

Owen Kratz, Helix’s President and CEO, commented: “We are excited to have been awarded this significant framework agreement for well and structure removal and decommissioning. Helix and Talos have worked together on field production, well intervention and decommissioning in the deepwater arena for many years, and this framework expands the relationship onto the shelf, further demonstrating Helix’s position as the preeminent company for full-field decommissioning in the Gulf of Mexico.”

One of Hellix’s most recent assignments in the Gulf of Mexico region was secured in May 2023 by the firm’s Helix Alliance. This was a full-field decommissioning contract with the scope of work covering the plug and abandonment of 39 wells, 15 pipelines, and seven structures.

A few days ago, Helix won a contract for deepwater well intervention with Esso Exploration and Production Nigeria (ESSO) for a project located approximately 97 kilometers off the coast of Nigeria.

The new deal came shortly after the U.S. player’s decommissioning contract in Brazil was extended by Trident Energy. The rates for this extension are perceived to be in line with the improved fundamentals in the well intervention market.