Globotics Industries wants to reactivate your suspended wells, for free

Almost 400,000 wells had been drilled in Alberta to the end of 2012, of which about 150,000 were abandoned and, of these, approximately 50,000 have yet to be certified as reclaimed, according to Petroleum Technology Alliance Canada (PTAC).

Prior to abandonment, wells may be suspended, which could have financial implications for operating companies through the Licensee Liability Rating (LLR). In an environment of low oil and gas prices, more wells are being suspended, increasing the financial strain on many producers.

Innovative technology solutions are needed to alleviate the situation, says PTAC, and a Swiss company believes it has one. Globotics Industries wants to bring its low pressure pumping system (LPPS) to Canada.

The company says the system is particularly attractive in today’s crude oil bust, because while it will bring new revenue to the operator, it comes at no additional cost.

The system is designed to recover significant quantities of fluid from wells that would otherwise be unusable, both by boosting the flow with a thrust action and by reducing the wellhead pressure, thus improving the normal productivity of the well.

Massimo Bianchini, Globotics chief executive officer, says that where it is found to be applicable, the company will pay all the upfront cost to establish the LPPS system, and operate it with only a daily fee and royalty paid by the operator.

“We propose our LPPS system in a full-service formula. That means that all investment cost is paid by us—the oil company has no capital expenditure [capex], just operating expenditure [opex]. And then I would say that still, opex expenditure is not really expenditure because… that will start only when actual recovery at the GOSP [gas-oil separation plant] will start,” he says.

Once producing, the operator pays a daily fee that includes hire costs and operating expenses, and a royalty on recovered oil and gas, which allows Globotics to recover its investment over time.

“So I could say really that, for the oil company, there is no operating expenditure, because the oil company will give a small part of its income to us only when the system will be operating.”

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