PROBLEM

The global O&G subsea facilities removal and seabed restoration market is forecast to experience a significant surge over the next 5 years, with the potential for exponential growth in the decades ahead. Some estimates predict the market could reach A$25B by 2030. The global subsea steel pipeline network is >150,000 km long. The proportion that will ultimately require removal is uncertain and contested. However, this has been getting much clearer since 2020, due to changes in community & regulator expectations. E&P's in Thailand, Australia & the UK are facing increasing pressure from regulators to remove all subsea steel pipelines, with others likely to follow.

New solutions are required to reduce environmental impacts and costs, but the Tier1 Subsea Contracting market is capital intensive, solidly entrenched & has a laser focus on ROC for current assets. The Tier1's don’t have an incentive to offer anything but the the same high day rate vessels that installed all of these pipelines via their 3 x industry standard approaches (S-Lay, R-Lay & J-Lay) that have been established for >30 years.

SOLUTION (X-LAY)

Restore Subsea Pty Ltd has acquired all of Blue Ocean Offshore (BOO) IP & Patents related to X-Lay. Our goal is to now complete further marketing, R&D and testing to pre-qualify our proprietary solutions. Our plan is to combine our IP with advanced pipeline strain management, plus further R&D and lab testing of various pipeline types and sizes.

Our goal is to enable much lower day rate vessels operated by a very wide variety of Tier 2 Subsea Contractors to remove all subsea pipelines at much higher productivity levels; in 160' to 400' joint lengths vs 40' lengths as per status quo S-Lay vessels. This will result in major cost savings to the E&P's and importantly to those Governments who provide significant contributions to these costs. In Thailand & Australia these contributions range from 40% to 50% and in the UK up to 75% of costs ! The successful commercialisation of X-Lay will therefore ultimately result in much better outcomes for our clients, partners, the citizens of Thailand, Australia & the UK and ultimately the subsea environment !

X-LAY (USE CASE 1 - Gulf of thailand)

BOO provided direction & input to a Contractor’s bid to an E&P in Thailand in 2020. The Contractor provided the E&P with a conforming bid using a DP2 S-Lay vessel, plus an alternate bid based on BOO's X-Lay solution - using a much lower day rate DP2 CSV.

The pipeline removal scope was as follows:

60 Subsea Carbon Steel Pipelines x 200km total length, up to 80m WD.
Pipe 8” to 24” OD.
Pipe Wall Thickness ½” to ¾”. Concrete Coating 1”.
Coatings varied. Concrete coated, FBE coated and PPL coated

The alternate bid could retrieve all the wet pipelines to shore in 160', rather than 40' joint lengths, resulting in major cost saving vs the base bid. However, it was disqualified in Q4 2020 by the E&P, due to not being pre-qualified.

X-LAY (USE CASE 2 - COMBINED STEEL PL + FLEX LAY REMOVAL)

BOO provided direction & input to a Contractor’s bid to an E&P in Australia in 2023. The Contractor provided the E&P with a conforming bid using a DP2 CSV, to cut up and retrieve the 9km of pipeline subsea. A separate bid was provided by others to remove the flexible flowlines and umbilicals. The Contractor also provided the E&P with an alternate bid, based on BOO's X-Lay approach. This was to retrieve both the circa 150km of flexible flowline and umbilicals, plus 9km of steel pipelines with the same DP2 CSV.

The subsea removal scope was as follows:

12" Subsea SS 316L internally lined Steel Pipelines x 9km total length, up to 160m WD.
Pipe 12” , c/w 2" piggyback.
Pipe Wall Thickness ½” to ¾”.
Coatings 3-layer FBE/PE.
53 km of Flexible Flowlines.
90 km of Umbilicals.
25 x Seabead structures, etc..

The alternate bid could retrieve all 9km of steel pipeline without exposing the inside of each pipe joint to the ocean environment, with significant cost savings from savings that would result from 2 x CSV mobilisations. However, it was disqualified in Q1 2024 by the E&P, due to not being pre-qualified.

X-LAY (USE CASE 3 - COMBINED WITH RAPID PIPE COnnectors)

BOO & Cladtek joined forces in June 2024, to present and market a collaborative offering that we described as "Recovering the Past & Facilitating the Future".

Cladtek has completed various Feasibility Studies over the years for a range of lay systems that enable the installation of "Rapid Pipe" - a mechanically connected pipe system. E&P's can have Rapid Pipe installed and removed from a wide range of Tier 2 Contractor CSV's and from Semi Sub Drilling Rigs. Rapid Pipe is much lower cost than the well established Tier 1 Contractor welded solutions in many applications, plus it can also be easily retrieved and re-used, providing much better environmental outcomes.

Rapid Pipe and it's associated installation systems have been undergoing extensive technology qualifications with clients such as Petrobras, ExxonMobil & Petronas. These are particularly extensive as these pipelines of the future will be transporting O&G, some in >2,000m WD at high temperatures and pressures, plus with highly corrosive fluids for >30 years.

One of these systems as shown is a semi J-Lay type one, that installs rapid pipe in 160' long joints on Tier2 Contractor CSV's. X-Lay can enable this same system to also be used for the reverse removal of very large diameter and/or deepwater welded pipelines in 160' long joints in the same campaign.

X-LAY (USE CASE 4 - XXXL deck length CSV)

In addition to Use Case 3, Cladtek's Rapid Pipe system can be used on the longest deck DP2 CSVs currently available on the planet. These have been recently developed for the installation of offshore wind farms, which given the recent USA election results maybe on shaky ground for future demand in 2030. Rapid Pipe can be installed & re-used in 400' joints using such vessels.

X-Lay enables the same system to also be used for the reverse removal of very large diameter and/or deep-water welded pipelines in 400' long joints. This was also presented at D&A AUS June 2024, as another options consistent with "Recovering the Past & Facilitating the Future".

X-LAY (USE CASE 5 - ANCHORED BARGE)

BOO & Cladtek again joined forces for SPE D&A APAC in KL Dec 2024, to present a similar theme of "Recovering the Past & Facilitating the Future". This time we focused more on aiming to appeal to an E&P and/or Contractor in SEA who may want to be a 1st mover in SEA for X-Lay, that could then also be applied in Australia offshore circa 2030.

We showed how the same X-Lay system for cutting and retrieving 160' long joints could 1st be deployed on a HUC Barge with 8 point mooring (as shown here), for the removal of the forecast 275km of pipelines in <15m WD , before being transferred onto a DP2 CSV, to remove the remaining 600km of pipelines. If a Cladtek Rapid Pipe approach is taken, then the same X-Lay system could also be used to install the connected Pipelines of the Future...through the 2030’s and beyond.