A new North Sea decommissioning firm is aiming to create 400 new jobs and generate £200 million of investment.

Well-Safe Solutions will offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.

In addition, the company is looking to acquire high quality assets to carry out well abandonment work, including a semi-submersible rig, jack-up rig and light-weight intervention vessel.

Funding has been secured from Scottish Enterprise, including investment from the Scottish Investment Bank and a regional selective assistance grant, in addition to the initial private funding provided by the major shareholders.

Executive Director Mark Patterson said: "The liability for late life, non-producing assets remains with the operator. This liability can be reduced via well P&A operations, but the timing on the decision to make these wells safe is heavily influenced by cost and the need for a new approach, working hand-in-hand with major operators.

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"The market dynamics in oil and gas have changed significantly. Before the collapse in oil price, operators were focused on maximising production, costs were very high and assets scarce and, with no real regulatory imperative, decommissioning was pushed back.

"Cost and safety are still paramount but operators are now having to face up to the well abandonment challenge. They need to prioritise decommissioning activity and, with an increasing stock of "shut-in" wells, more incentives, low asset utilisation and therefore lower rates, the economics for P&A have become more compelling.

"As the focal point of contact for the operator, we will take care of the planning, logistics and execution through our experienced personnel and our dedicated rigs or vessels via one, single contract.

"By combining competitive asset day rates with long-term service and support contracts at a fixed day rate, we will be able to offer higher efficiency and utilisation at lower cost."

Kerry Sharp, Director of the Scottish Investment Bank from Scottish Enterprise, said: "To remain at the forefront of the global oil and gas sector, Scotland has to adopt new approaches and innovation and also be ready to make the most of the new opportunities when they appear.

"Well Safe is a good example of a company taking advantage of the current decommissioning market opportunity, by adopting new approaches, and it will support another area of growth within the oil and gas sector, with the potential to generate a material number of new jobs and benefit from new international opportunities."

(LM)