Stingray Geophysical, a new spin-out from QinetiQ, has been established to develop a commercial fibre optic seismic monitoring system which can be deployed permanently on the seabed to provide high quality data on hydrocarbon reservoirs, it was announced today. Such systems are designed to help oil companies to significantly increase the amount of oil and gas extracted from reservoirs.
Stingray Geophysical has secured £6.6 million capital from a venture capital consortium led by Energy Ventures and including Hydro Technology Ventures and Chevron Technology Ventures. The company has been founded by a team which blends venture building experience with oil and gas industry know-how and world leading fibre optic expertise. QinetiQ holds a 19.9% share in Stingray Geophysical.
The company has licensed QinetiQ's OptaSeis fibre optic technology which will be commercialised to acquire time lapse (4D) seismic surveys using multicomponent (4C) sensor packages permanently deployed on the seabed to provide oil companies with high quality information about their offshore reservoirs.
4D-4C seismic is critical for oil companies to improve reservoir management, accelerate production and increase the total reserves that can be extracted from a reservoir. Typically, oil companies currently recover about 35% of reserves in place. Emerging technologies and techniques such as 4D-4C are expected to help push this to 50%, generating significant additional value and helping to maintain hydrocarbon supply around the world.
However, current 4D-4C systems, while providing highly valuable data, are expensive and can be unreliable, primarily because of the problems associated with installing electrical components in the sea. The OptaSeis technology will allow the development of a smaller, less expensive and more reliable permanent seabed system that requires no underwater electronics.
Welcoming the creation of Stingray Geophysical, Stephen Lake, director of QinetiQ's New Business Accelerator and Stingray Geophysical board member, said: "The establishment of Stingray Geophysical is an important step in the commercialisation of QinetiQ's fibre optic technology. We have been successfully working on fibre optic marine sensors for over 25 years for defence customers and can now bring the combined benefits of our expertise and our partners' extensive industry experience to oil and gas operators.
"The approach of spinning out suitable technologies has been a successful element of QinetiQ's overall commercialisation strategy and I am confident that Stingray Geophysical will continue this record."
QinetiQ has been working on the specific application of this fibre optic technology to seismic oil and gas requirements since 2002 through the Stingray Joint Industry Programme (JIP) sponsored by a group of the world's leading oil companies. The JIP was established in order to design and deploy a demonstration fibre optic seismic system. Going forward the JIP will remain an important initiative through which oil company end-user input will continue to be fed into Stingray Geophysical, which aims to deploy a commercial system offshore within two years.
Comments on the creation of Stingray Geophysical:
Einar Gammon, Investment Manager at Energy Ventures, said: "The oil industry has long understood the benefits that 4D-4C seismic can bring in terms of reducing risk, accelerating production and maximising reservoir recovery."
Arne Froiland, Investment Manager at Hydro Technology Ventures, said: "Cost and reliability issues have so far limited the realisation of 4D-4C benefits. The use of fibre optics will help tackle these issues and we are excited by the opportunity that is provided through Stingray Geophysical."
Martin Bett, CEO of Stingray Geophysical, added: "The OptaSeis system has been developed on the back of decades of leading-edge fibre optic sensing work by QinetiQ. The creation of Stingray Geophysical allows us to build on this in a very focussed way and also attract investment and industry talent to help us deliver real value to our customers. Working with our partners, Stingray Geophysical is well placed to enable the permanent reservoir monitoring market and establish itself as a key industry player."
About the Stingray Geophysical venture capital consortium:
Energy Ventures is an independent venture capital company providing capital to high growth oil and gas technology companies. Energy Ventures manages two funds and is based in Stavanger, Norway.
Chevron Technology Ventures identifies and invests in new technologies and business opportunities that can create value, clear competitive advantage and superior financial returns for Chevron.
Hydro Technology Ventures is a corporate venture capital company owned by Hydro investing in promising new energy technologies and oil and gas upstream technologies. |
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