The North Sea, both in the southern and central UK sector and the Norwegian portion, has experienced noticeable production declines since its peak in 2000. In Norway especially, efforts are being applied to turn this around. The country is applying strong tax incentives – deductibles of up to 78% – up front, and there is a national resolve to increase the region's declining production that has resulted in reopening many smaller marginal fields.

With oil prices above $100/bbl, there is considerable incentive to maximize recovery from producing fields. Many of Norway's North Sea fields are candidates for enhanced oil recovery operations.

Maersk Drilling is among the companies that have set their sights on getting the most out of the mature North Sea assets.

"We have a horizon of more than 25 to 30 years of work in Norway," said Michael Harboe-Jorgensen, director of strategy and communication for Maersk Drilling. "The Norwegian North Sea is indeed more mature compared to other regions like Southeast Asia, but the reserve potential remains huge, and we find the prospect of the region attractive."

On a macro level there will be a greater demand for jackups in the shallow regions of the North Sea. "Today the supply is limited," Jorgensen said. "With the huge numbers of wells to be drilled, there is a need for high-efficiency drilling."

In absolute terms it is a small market, but it will take new rigs to fill this gap.

Part of Maersk Drilling's strategy includes designing high-spec jackups to meet the demand in the North Sea.

Advanced design

"From our perspective, I think we have a lot of work in Norway for many, many years to come," said Frederik Smidth, chief technology officer, Maersk Drilling.

Maersk first entered the Norwegian market in 1989. Since 2003, the company's CJ70 jackups have been deployed in the Norwegian North Sea and have maintained a track record for efficient operations. The CJ70 was one of the largest, most advanced jackups in the industry at the time, designed to operate in 150 m (492 ft) water depth offshore Norway. Maersk also included the capacity for parallel operations, increased cantilever size, and bigger overall deck size to its design. "At that time, we predicted that the CJ70 could complete a well 20% to 25% faster, and our prediction was right," Smidth said.

The combination of parallel operations and the increased size of these rigs have given Maersk an advantage in the North Sea, he added.

The XLE design is a new generation of Maersk’s CJ70 built in 2003 and will feature a number of advanced changes designed from a decade of experience with this rig. (Images courtesy of Maersk Drilling)

Improved safety, reach

Now, Maersk Drilling is taking the CJ70 to the next level with the XL Enhanced (XLE), specifically designed for the harsh environment in the North Sea. The company has two jackups on order.

"The XL Enhanced design is a new generation of what we built in 2003," Smidth explained. "It's a 2011 model of the same rig with a number of advanced changes designed from a decade of experience with this rig."

The XLE is one of the first jackups ordered with multimachine control for parallel operations. It is designed with an improved foxhole for building casing and bottomhole assembly (BHA). In addition, the XLE features an advanced XY cantilever +/- 18 m (60 ft) where standard jackups have access to +/- 5 m (15 ft) or 6 m (20 ft). With a more than 34-m (110-ft) reach, the XLE can drill multiple wells from a single location. Fewer moves equals more efficient operations.

Many of the XLE's processes are remotely operated, Smidth said, which improves safety for personnel. The idea was not necessarily to drastically increase tripping speeds and drilling performance but to provide enough automation to give the XLE a consistent, steady performance.

"In new platforms, we can go in and drill 20 to 25 wells without moving the rig," Smidth said. With more access, the XLE is capable of capitalizing on the experience gained from well to well. "When you want to punch five, 10, or 20 holes more or less in the same place, then you can really make efficiency gains in the total operation," Smidth said.

From a safety standpoint, lifting operations are a major concern for any offshore project. The XLE features a drastically reduced number of crane lifts on the rig for improved safety.

"Operationally, the XLE is much better, much more robust," Smidth said. "Crew competence is extremely important, and the rig's performance varies with the experience of the crew," Smidth said.

By designing the XLE with an eye to remotely operated processes, Maersk hopes to provide a more consistent performance.

By designing the XLE with an eye to remotely operated processes, the company hopes to provide a more consistent performance. The XLE is one of the first jackups ordered with multimachine control for parallel operations

Looking ahead

For offshore operators, the Norwegian market has one of the highest barriers of entry among all sectors across the world. Given the contractor's experience bringing its rigs to this market, Maersk believes it has leverage. The company's XLEs are expected to be fully operational in Norway by mid-2014.

"Norway is clearly the target market," Jorgensen said, adding that other emerging markets are "still very small."

The easiest move for the XLE would be the Central UK. According to Jorgensen there may be some opportunities out on the horizon with Eastern Canada and South America and some places in Australia as well.

For now, however, the lion's share of the demand for high-spec jackups is in the Norwegian North Sea. "All indications that we have received over the last few years clearly indicate there is a demand for more rigs, and there is a demand for highly advanced and high-efficiency rigs to drive this forward," Jorgensen said.

Since 2003, the company’s CJ70s have been deployed in the Norwegian North Sea and have maintained a solid track record for efficient operations.

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