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Valor Features in 2022 Thrive and Survive Report

Moving from a buy to build strategy to bring innovative technologies to market

How is Valor thriving?

Having spent its first few years in operation acquiring innovative technology businesses with the potential to serve the energy market, Valor is now on the path to building out these assets, serving both traditional oil and gas markets as well as renewables.

Its innovative downhole heater, named THOR, developed and operated by Group company Cavitas Energy, is proving a particular hit within the oil sector. Following recent trials conducted in California for a local operator, some promising numbers have been provided in terms of performance and cost-saving potential. As further trials are conducted and concepts proved, the business will soon enter the realm of major growth.

The challenge

As an investor-backed growth enterprise, Aberdeen-based Valor has been adding new technologies and services with a view to bringing them to market and, eventually, turning them into commercial entities.

Now, the time has come to accelerate the ‘build’ phase. Here, the company is focused on providing its newly acquired solutions to stakeholders across the energy spectrum, with key focus areas being oil and gas, energy transition and diversification into renewables such as offshore wind.

The solution

Applying its technologies and expertise to energy transition activities is a particular priority for Valor, recognising the traction being gained in this field due to decarbonisation targets being worked towards around the world, which have been solidified in the Paris Agreement and recent COP conferences.

In response, Valor created a new entity dedicated to supporting the offshore wind sector in the form of V-TES Renewables. A service business, the company houses several specialist electrical capabilities, from HV cable terminations to switchgear maintenance, and has embarked on an extensive training programme to bring its employees up to speed and comply with offshore wind regulations.

On the technology front, a game-changing development is emerging from Cavitas Energy. THOR, its thermal enhanced oil recovery tool, is at the most exciting stage of its journey to date and in the process of being rolled out across the oil industry. Not currently facing any performance-based competition, the technology promises to revolutionise thermal applications and reduce carbon emissions related to in-situ near wellbore heating. Indeed, tests have shown it can increase heavy oil production by up to 500% and boost pump efficiency and run life by more than half. Moreover, given over 40% of the global remaining oil is heavy, which is most effectively developed by thermal operations, THORs low carbon barrels could play a key role in keeping global temperature rises under the 2°C stipulated in the Paris Agreement.

In the United States, THOR is already being deployed by an oil major looking to boost production. Having started the trial in October 2021, the company has produced some encouraging results to date, which show a three times uptick in heavy oil production, improved pump efficiency, mitigation of wax and a reduction in oil viscosity thanks to the solution’s 100-fold superior heat per foot ratio versus competitors. Meanwhile, THOR is also operating with less energy requirements than other electric or topside steam alternatives. In terms of possible financial gains, return on investment can be made within one to two months of operation, with a revenue uplift potential of around US$1 million per well per annum.

Importantly, THOR’s downhole tooling requires no maintenance across its three-to-five-year run life and can be monitored remotely, whereas more traditional methods require technicians to be on site 24 hours a day. Cavitas can fully customise THOR to suit specific well operators’ requirements.

Following a successful trial, the company has already received its first order from a Sudanese firm, a sign that Valor is ready to start realising returns on its investments made over the past four years.

Indeed, with technological innovations such as THOR at its disposable, along with in-house expertise both within AISUS, V-TES renewables and the rest of the group, Valor is starting to gain some serious momentum as its build phase journey continues. Be it traditional oil and gas or energy transition segments of the market, the company is shaping up to be capable of providing solutions and services to a sizeable portion of the energy industry.

To read the full article and learn of the journey thus far, please click the link below:
EIC Survive and Thrive VI 2022 by Energy Industries Council – Issuu