Courtesy Aker Solutions
Report on industry consultation
North Sea Decommissioning
Supply Chain Steering Group
Courtesy Peterson SBS
April 2009
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
A message from the First Minister
It is vital that we do everything we possibly can to help our offshore
contractors and supply companies work together, and support them to
become thoroughly prepared and equipped to claim their share of the new
North Sea decommissioning opportunities.
I commend the establishment of Decom North Sea and its vision to create a
true North Sea alliance of like-minded European supply-chain companies.
Alex Salmond
First Minister of Scotland
Page 2 of 19
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North Sea Decommissioning Supply Chain Steering Group
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Foreword
The prospect of imminent North Sea decommissioning often simultaneously
provokes two differing reactions:– enthusiasm at the prospect for Scottish
businesses to add yet another globally marketable discipline to their offshore
portfolio, but also uncertainty – or more accurately, a number of
uncertainties - over timing, seasonality, areas of technical inexperience, the
influence of oil price fluctuations, contracting strategies and many other
factors.
After some years of reporting on decommissioning market opportunities, in
early 2008 Scottish Enterprise decided to confront these underpinning
issues by setting up a unique industry-wide consultation exercise to explore
and capture the aspirations and inhibitions of the North Sea
decommissioning supply chain.
This Steering Group brought together some of the most knowledgeable and
influential people in the industry, and they gave generously of their time and
expertise – in particular to highlight where early actions could be productive,
and where long-term issues called for further study. For their invaluable
input into this challenging process – and in particular the spirit of openness
and cooperation in which it was offered - I convey our grateful appreciation.
Although this stage of the exercise is now complete, and summarised in
these pages, we have, I believe, along the way established, even in a short
space of time, a genuine community across the UK, Dutch, Danish and
Norwegian decommissioning sectors which bodes well for future
collaboration.
Brian Nixon
Director
Scottish Enterprise Energy Team
Page 3 of 19
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North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Contents
1.
Background ............................................................................. 5
2.
Executive summary................................................................. 6
3.
Market overview ...................................................................... 8
4.
The Steering Group............................................................... 12
5.
The consultation process ..................................................... 14
6.
Consultation outcomes......................................................... 17
Appendix 1 - Consultation participants
Appendix 2 – Consultation questionnaire
Appendix 3 – Market breakdown study
Appendix 4 – Decommissioning supply chain capability matrix
Appendix 5 – Outputs from innovation workshops
Appendix 6 – Decom North Sea outline business plan
Project development and management
Fiona Ann Ogilvie,
Scottish Enterprise Energy Team
Project partners:
Highlands and Islands Enterprise
The Department of Energy and Climate Change
Report production:
John Malcolm, JDM Marketing Ltd
Page 4 of 19
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North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
1.
Background
The North Sea’s mature offshore oil and gas industry is approaching a new
phase in its operations during which it will be necessary to decommission
some of its installations, many of which have been producing oil and gas for
over 30 years.
Over the next two decades, the process of
decommissioning the ageing offshore oil and gas
producing infrastructure will begin in earnest. However,
the actual timing of this process is currently uncertain,
thanks to fluctuating oil prices, increasing global energy
demand, a shortage of human resources and an
acknowledged,
and
understandable,
lack
of
decommissioning expertise, seasonality of activity and
other factors.
The North Sea facilities which will eventually be
decommissioned will include small and large steel
platforms, subsea wells and floating equipment.
The changing face of
the North Sea:
NW Hutton then
(below) and now
(Images courtesy BP)
This will be a complex process which will take place in a hostile offshore
environment and it will challenge the industry on many fronts –
technological, economic, environmental and health and safety.
Around 470 installations, 10,000 kilometres of pipelines, 15 onshore
terminals and around 5,000 wells constitute part of the infrastructure that will
eventually need to be decommissioned.
Current total costs for
decommissioning the UK Continental Shelf (UKCS) are estimated at £20-25
billion.
In June 2007, a Decommissioning Supply Chain Steering Group was
established consisting of government agencies, key industry players,
operating companies and industry associations.
In 2008, this Steering Group embarked on a wide-ranging industry
consultation to help develop an understanding of the key focus areas of
weakness and bottlenecks which currently inhibit UK supply chain capability
development, and to ascertain how, where and when government
intervention should be targeted to overcome such barriers.
The work of the Steering Group concluded in March 2009. It has been a
valuable exercise which will help us plan for the future.
“For the North Sea decommissioning supply chain, doing nothing is
simply not an option. We need to mobilise now if we are going to
respond effectively and profitably to the new opportunities coming
our way.”
Murdo MacIver
Peterson SBS Ltd
Page 5 of 19
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North Sea Decommissioning Supply Chain Steering Group
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2.
Executive summary
In March 2008, Scottish Enterprise led the establishment of a Steering
Group set up to assess the capability and market-readiness of the supply
chain for the North Sea offshore decommissioning market.
Participants
The Steering Group comprised wide-ranging representatives from oil and
gas operating companies, independent operating companies, offshore and
subsea contractors, service providers, decommissioning consultants, other
energy industry organisations, the nuclear industry, government
departments and economic development agencies.
The Steering Group was set up to study some of the challenges, bottlenecks
and issues inhibiting supply chain development, as well as looking at ways in
which these could be overcome and estimating what levels and types of
market support would be required.
Key issues
Key issues were identified calling for early support action, including
recognising the importance of efficiently diffusing decommissioning knowhow across the UK supply chain to counter early market advantages gained
by dominant foreign contractors.
Other issues identified as requiring action were; developing segmentation
studies to match capability profiles of contractors and service providers with
required decommissioning competencies; producing ongoing market
opportunity reports and foresighting studies; and organising structured ideas
generation sessions to explore new and innovative ways to reduce the costs
of decommissioning.
New forum
One recurring theme, however, was the requirement for an industry forum to
unify the disparate clusters of bodies and initiatives in the North Sea
decommissioning market, and bring clarity and commonality to an emerging
and currently disjointed sector of the offshore oil and gas industry.
Courtesy Subsea 7
Courtesy Aker Solutions
Page 6 of 19
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North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Courtesy Peterson SBS
This widely-perceived need for a new, independent, industry-led
decommissioning forum aimed to maximise the new business opportunities
of this market, and develop productive cost-efficient decommissioning
strategies to benefit the overall industry.
To confirm the demand for such an industry association, in December 2008
the Decommissioning Supply Chain Steering Group delegated a small
working group to make further consultation with the industry on the concept
of a decommissioning supply chain forum, and to examine the operational
feasibility of such an organisation.
From the responses received to date (March 2009), there has been almost
unanimous support both for the concept of a dedicated North Sea
decommissioning forum and for opportunities to network with other
companies on potentially collaborative decommissioning projects.
The working group proposed that a new industry forum should be set up as
a not-for-profit company limited by guarantee, funded jointly by industry (on
a subscription basis) and by government for its first two years of operation.
This proposal was unanimously endorsed at the final Steering Group
meeting in Bergen on 9 February 2009.
Decom North Sea
The proposed name of the new industry organisation is Decom North Sea,
having as its principal aims:

to develop and establish a competitive North Sea decommissioning
supply-chain

to respond to economic, technological and strategic challenges facing
the North Sea decommissioning supply chain

to initiate and deliver strategic action plans, market research and
coordinated activities in support of the whole North Sea
decommissioning industry
The scope of the operational activities of Decom North Sea will be clearly
defined at all stages to complement and enhance the work of other
decommissioning organisations and work groups. The “North Sea” element
in its title is deliberately included to emphasise the organisation’s focus
beyond UK markets to include the Norwegian, Danish and Dutch
decommissioning sectors.
Page 7 of 19
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North Sea Decommissioning Supply Chain Steering Group
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3.
Market overview
“Decommissioning is a relatively new business in the North Sea,
and operators and contractors need to work together in
partnership to ensure lessons are effectively transferred and
risks are minimised. Now is the time to build this relationship
and face the challenges together.”
Gunther Newcombe
BP North Sea Decommissioning Manager
Projected
values
Projections of the overall cost of decommissioning in the UKCS vary from
around £10 billion to £25 billion, with the main variables being:

The inclusion or exclusion of wells and pipelines

The level of removal and final status for pipelines

Cost estimation methods
The North Sea comprises the UK Continental Shelf (UKCS), the Norwegian
Continental Shelf (NCS) and the Dutch Continental Shelf (DCS), and in total
hosts almost 600 offshore platforms of which 54% are more than 15 years
old.
The average age of the decommissioned
platforms in the North Sea to date is 17 years,
confirming that decommissioning will become
an increasingly significant issue in the region
over the next decade.
The UKCS growth 2008-12 will be driven by the
execution of four major projects over this period
– Frigg, Miller, Indefatigable, and North West
Hutton.
During the same period, further major
decommissioning expenditure is expected to be
made on floating platforms and subsea wells,
with the decommissioning of BP’s Don subsea
wells being a project of note.
Courtesy Design Alpha
Page 8 of 19
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A recent report commissioned by Oil & Gas UK has confirmed the additional
market potential of well abandonment, estimating that 3,725 platform wells
and 910 subsea wells in the UKCS will need to be abandoned, the majority
in the next 15 years, at an estimated cost of around £15 billion.
Well
abandonment
Existing technology will permit the rigless abandonment of two thirds of
these wells, a method which is typically more cost effective than using a rig.
However, the rigless abandonment of the remaining one third of wells will
require the advancement of techniques such as well control and string
tubular recovery.
In the North Sea there are almost 600 platforms, of four main types:

45
377 small steel platforms (combined jacket and topside weight under
4,000 tonnes) – representing 68% of the installed base of North Sea
platforms
24

106 large steel platforms (combined jacket and
topside weight over 4,000 tonnes) – including around
70 with a total weight of over 20,000 tonnes

24 large concrete gravity base structures with
substructures between 150,00 and 350,000 tonnes
(including three Norwegian structures over 600,000
tonnes)

45 floating platforms
106
Concrete Platforms
Large Steel Platforms
Small Steel Platforms
Floating Platforms
377
Courtesy BP
Courtesy Peterson SBS
Page 9 of 19
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Market
segmentation
Ongoing market segmentation studies being carried out by Scottish
Enterprise have identified at least 200 UK contractors and service
companies with current core capabilities which are compatible with generic
decommissioning activities. A detailed study matching these competencies
against market segmentation requirements is now underway.
Another important supporting study commissioned by Scottish Enterprise is
“The decommissioning breakdown structure” produced in November 2008 by
Norwegian decommissioning consultants Design Alpha AS (see appendix 3).
Courtesy Aker Solutions
This in-depth study defines the core components of the various tiers of the
decommissioning process, before presenting detailed analyses of the
technology, competence and resources required for each individual segment
of the market.
As the UK decommissioning supply chain takes stock of its disposal base
capability, it is instructive to examine the relationship between tonnage of
decommissioned installations and actual base capacity, drawing on the
Norwegian model.
Onshore
disposal yards
In the late-1990s, a number of studies were conducted to estimate to what
extent new Norwegian disposal yard facilities were required to service
anticipated decommissioning demand. The reports concluded that, contrary
to initial expectations, there was in fact little need for a chain of small, local
yards, and history to date has confirmed that judgment.
Over the twelve years since 1995, 250,000 tonnes of installations have been
brought onshore in Norway for decommissioning. The bulk of this onshore
disposal has been handled by market leader Aker Solutions at its Stord yard,
which alone has an annual capacity of
between 50,000 and 60,000 tonnes.
The immediate next phase (from
2009) of North Sea decommissioning
comprises three installations –
Ekofisk, Inde and NW Hutton – with
an anticipated total tonnage of
160,000 tonnes for onshore disposal
over eight years.
Courtesy Peterson SBS
Page 10 of 19
Even allowing for the intermittent
nature of disposal, there are already
four existing yards (in Shetland - at
Teeside - and two in Norway) with a
combined capacity of between
120,000 and 150,000 tonnes per year.
April 2009
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
As Kare Kristing, former Decommissioning
Director UK with Aker Solutions notes, –
“Apart from the exception of natural
deepwater disposal yards – for which
there may turn out to be significant
specialist demand – existing North Sea
disposal yard capacities would appear at
this stage to be adequate to handle the
next phase of decommissioning.”
Courtesy Aker Solutions
By their nature, onshore disposal yards
are highly visible symbols of effective
involvement in the decommissioning
supply chain, and it is entirely
understandable that regional economic
development authorities should want to
ensure a “piece of the action”.
But the Norwegian experience warns of the possibility of developing yard
over-capacity without the effective strategic assessment of actual demand.
Courtesy Subsea 7
“The decommissioning phase of North Sea oil and gas is likely to
differ quite significantly from anything that has gone before –
new commercial drivers, fresh technological challenges and a
highly responsive supply chain will be required if we are to
prevent the costs of this operation rising to unacceptable levels.
The cost of this work will be shared by government and
therefore we have a duty to assist in the creation of a
competitive market.”
Bill Cattanach
Head of Pilot Secretariat
Department for Business Enterprise and Regulatory Reform
Page 11 of 19
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North Sea Decommissioning Supply Chain Steering Group
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4.
The Steering Group
“An industry-led supply chain body which effectively coordinates
the alignment of its services with the operational strategies of
the other decommissioning organisations will play a vital role in
establishing the international capability – and long-term
competitiveness - of the North Sea decommissioning sector.”
Norman McLennan
Supply Chain Manager, Oil & Gas UK
In March 2008, Scottish Enterprise led the establishment of a Steering
Group set up to assess the capability and market-readiness of the supply
chain for the North Sea offshore decommissioning market.
The Steering Group comprised wide-ranging representatives from oil and
gas operating companies, independent operating companies, offshore and
subsea contractors, service providers, decommissioning consultants, other
energy industry organisations, the nuclear industry, government
departments and economic development agencies (see participant lists in
Appendix 1 ).
In recent years, the Scottish Enterprise Energy Team has commissioned
and published three North Sea Decommissioning market reports (in 2002,
2005 and 2008). The Steering Group was set up to study some of the
challenges, bottlenecks and issues inhibiting supply chain development
which were identified in these, and other decommissioning studies, as well
as looking at ways in which these could be overcome and estimating what
levels and types of market support would be required.
Consultation
brief
To achieve this goal, the Decommissioning Supply Chain Steering Group
was tasked with consulting potential, intending and active participants in this
market to identify the main challenges they faced and the barriers which
would have to be overcome to enable successful market entry.
With the coordinated support of Scottish Enterprise, the UK government’s
Department of Energy and Climate Change (DECC) and Highlands and
Islands Enterprise (HIE), the Steering Group proposed running four one-day
Courtesy Peterson SBS
Page 12 of 19
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North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
regional consultation and workshop events (see section 5) in locations with
recognised decommissioning supply chain interests – Aberdeen, Stavanger,
Lerwick and Bergen.
The Steering Group made a strong recommendation to view the North Sea
decommissioning market from a single-market, rather than a strictly UKfocused perspective, following successful early examples of integrated
Norwegian/UK decommissioning activities, and the potential of this
approach.
Scope of study
Among the major areas for discussion and study were the following:

The big issues influencing the pace and direction of North Sea
decommissioning

What the supply chain can do to tackle those issues

Segmentation of key areas of the decommissioning market to align
with current and potential supply chain capabilities (See Appendix 4)

Developing a shared view on the construct of the decommissioning
value chain

The need for an industry-led forum to unify the fragmented supply
chain and increase business opportunities for its members
Courtesy Saipem
The facilitators and discussion leaders during the consultation phase were:

Brian Nixon, Scottish Enterprise Energy Team

Fiona Ogilvie, Scottish Enterprise Energy Team

Alastair Gray, Genesis Consulting

Richard Cockburn, Shepherd and Wedderburn

Ross Caven, Russell Macleod Ltd

Kare Kristing, Design Alpha AS
Page 13 of 19
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5.
The consultation process
“A North Sea Decommissioning Forum is something that is
definitely required. Due to the limitations imposed by the
general dearth of experience in this field, it is imperative that
the decommissioning experience gained over the coming years
is transferred down the supply chain.”
George Cooper
Bibby Offshore
The work of the Decommissioning Supply Chain Steering Group was
essentially an intensive industry consultation programme carried out
between June 2008 and February 2009.
This consultation process
consistently identified a number of recurring key issues of concern to
participants, and potential participants, in the North Sea decommissioning
supply chain.
Each workshop was chaired by an independent facilitator, and wide-ranging
issues were covered regarding the challenges, opportunities and possible
structure of the future North Sea decommissioning supply chain.
Long-term
issues
A number of these issues were discussed and noted for future study, viz:

the “certainty of uncertainty” – when will mainstream North Sea
decommissioning actually happen?

The contracting process – its openness, transparency and fairness

DECC rules and regulations

The influence of oil and gas price fluctuations

Support for enhanced UKCS oil recovery

The cost of abandoning wells
Courtesy Saipem
Page 14 of 19
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It was also noted that the seasonality of decommissioning activities needed
to be addressed. Offshore decommissioning, it was stressed, is a fairweather business and is unlikely to provide guaranteed year-round activity
for contractors or service providers: it therefore generally calls for integration
into other, less weather-dependent, activities.
Other issues called for, and received, early support action, most notably the
following:
New industry
forum

The requirement for segmentation studies to match capability profiles
of contractors and service providers with required decommissioning
competencies (See Appendix 4)

Ongoing market opportunity reports and foresighting studies

The opportunity to organise structured ideas generation sessions to
explore new and innovative ways to reduce the costs of
decommissioning (See Appendix 5)
One recurring theme, however, was the requirement for an industry forum to
unify the disparate clusters of bodies and initiatives in the North Sea
decommissioning market, and bring clarity and commonality to an emerging
and currently disjointed sector of the offshore oil and gas industry.
This widely-perceived need for a new, independent, industry-led
decommissioning forum aimed to maximise the new business opportunities
of this market and develop cost-efficient decommissioning strategies to
benefit the overall industry.
To confirm the demand for such an industry association, in December 2008,
the Decommissioning Supply Chain Steering Group delegated a small
working group to make further consultation with the industry on the concept
of a decommissioning supply chain forum, and to examine the operational
feasibility of such an organisation.
This working group supplemented the consultation workshops with an
emailed questionnaire (see Appendix 2) issued to a wider audience of
potential participants in the new organisation.
Courtesy Aker Solutions
Page 15 of 19
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North Sea Decommissioning Supply Chain Steering Group
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From the responses received to date (March 2009), there has been almost
unanimous support both for the concept of a dedicated North Sea
decommissioning forum and for opportunities to network with other
companies on potentially collaborative decommissioning projects.
The majority of questionnaire responses also confirm the importance of
other recurring issues:

perceptions that information about North Sea decommissioning
projects is inaccessible

a general lack of awareness of the supply-chain capability

a widespread lack of understanding of the many issues which
influence and drive the North Sea decommissioning market

contracting strategies

grouping of assets/projects
Courtesy BP
“North Sea decommissioning offers significant new business
potential to proactive contractors and service companies in the
Highlands and Islands. HIE plans to work closely with the
supply chain to ensure our local decommissioning capabilities
are market-ready and responsive, including supporting the new
decommissioning supply chain forum.”
Katrina Wiseman
Highlands and Islands Enterprise
Page 16 of 19
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6.
Consultation outcomes
“The nuclear industry decommissioning model shows us that,
with strong collaborative focus, decommissioning projects can
effectively be re-packaged – by nature, location, risk profile or
other criteria – to optimise economic and technical benefits.”
Simon Coles
PFR Decommissioning Manager, Dounreay
The working group proposed that a new industry forum should be set up as
a not-for-profit company limited by guarantee, funded jointly by industry (on
a subscription basis) and by government for its first two years of operation.
Decom North Sea
The proposed name for the organisation is North Sea Decommissioning
Forum Ltd, trading as “Decom North Sea”, having as its principal aims:

to develop and promote North Sea decommissioning supply-chain
capability

to respond to economic, technological and strategic challenges facing
the North Sea decommissioning supply chain

to initiate and deliver strategic action plans, market research and
coordinated activities in support of the whole North Sea
decommissioning industry
The scope of the operational activities of Decom North Sea will be clearly
defined at all stages to complement and enhance the work of other
decommissioning organisations and work groups. The “North Sea” element
in its title is deliberately included to emphasise the organisation’s focus
beyond UK markets to include the Norwegian, Danish and Dutch
decommissioning sectors.
Courtesy BP
Page 17 of 19
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Bringing together the supply chain in this way in a cohesive format will
increase the pace of innovation, increase competition in the supply chain
and work towards the goal of driving down the costs of North Sea
decommissioning, as well as enhancing the international competitiveness of
the UK decommissioning sector in the global market.
Decom North Sea will provide an effective forum for collaboration,
diversification, innovation and coordinated global marketing of the North
Sea’s decommissioning capability in an industry which currently consists of
disjointed groups and initiatives.
Early objectives
Early objectives will include:

Promotion of North Sea decommissioning supply-chain capability at
local, national and international levels

Unified representation of members’ interests at all levels of
government and industry

Production and promotion of a strong group identity to support
members’ marketing

Set up working groups to respond to technological and strategic
challenges

Provide an effective first point of contact for enquiries about operating
in the North Sea decommissioning market

Work in conjunction with government agencies and industry
associations to define effective strategies for the development of the
North Sea decommissioning supply chain

Deliver cost-efficient and coordinated support to enable the supply
chain to achieve its strategic objectives

Develop and deliver an effective events programme including market
intelligence seminars, business mentoring workshops, promotional
events and networking opportunities

Develop a strategic plan for a sustainable, internationally-competitive
North Sea decommissioning supply chain
Courtesy Aker Solutions
Page 18 of 19
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Based on the example of the Nuclear Decommissioning Authority, further
long-term objectives of Decom North Sea may extend to:
Other outcomes

Improved focus on decommissioning
implementation process

Coordination of decommissioning strategies

Incentivisation of the supply chain to invest in decommissioning
technologies, equipment, facilities and personnel

Packaging of decommissioning work (eg by type, location or risk
profile) to optimise economic and technological benefits
requirements
and
the
Other early outcomes of the consultation process are the following support
activities initiated during 2008/9 by Scottish Enterprise:

Setting up a hyperlinked capability matrix matching individual
company capability with defined decommissioning competencies (see
Appendix 4)

Setting up two well-attended, structured ideas
generation sessions held in Aberdeen on a
multi-industry basis to explore new and
innovative ways to reduce the costs of
decommissioning (See Appendix 5)

Looking at producing “Tipping Point” analysis
based on DECC and operating company input
to establish when “it will really happen”

Investigating producing an economic impact
study to evaluate the benefits of the UK supply
chain winning an enhanced share of the North
Sea decommissioning market

Capturing and making available “best practice”
decommissioning studies
Courtesy Aker Solutions
“As someone who has first-hand experience of the benefits of
integrated Norwegian/UK decommissioning, I am convinced of
the advantages of a “single-market” approach in this particular
sector. If we can access the best methods, and the best
practices, for decommissioning regardless of North Sea
boundaries, we can develop truly world-leading costefficiencies.”
Kare Kristing
Design Alpha AS
Page 19 of 19
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Appendix 1 - consultation participants
Decommissioning Supply Chain Steering Group – First workshop
Gordon Highlander’s Museum – Aberdeen – Tuesday 30th June 2008
Name/position
Brian Nixon
Fiona Ogilvie
David Wilson
Bill Cattanach
Head of Pilot Secretariat
Kåre Kristing
Director - Decommissioning UK
Erik Hjelde
MCP-01 Cessation Director
Norman McLennan
Supply Chain Manager
David Hoare
Decommissioning Manager
Alex West
Regional Director (Decommissioning)
Chris Gray
Decommissioning Director
Bob Hemmings
Katrina Wiseman
Strategic Projects Mgr.
Colin Manderson
Chairman
Murdo MacIver
Managing Director
Rodger Harvey-Jamieson
Director
Uisdean Vaas
Head of Oil & Gas
Greg McKenna
Director – Supply Chain
Grethe Kjeilen-Eilertsen
Senior Research Scientist – Marine
Robert Haugen
Executive vice president,
Simon Coles
Restoration Director (nuclear)
Company
Scottish Enterprise
BERR
Aker Solutions
Total Exploration & Production UK Plc
Oil & Gas UK
BP Exploration Operating Company Ltd
Wood Group Engineering
ConocoPhillips UK Ltd
Shell UK Exploration & Production
Shetland Enterprise
Peterhead Decommissioning Limited
Shetland Decommissioning Consortium
The Applecross Trust
Maclay Murray & Spens
Venture Production Plc
IRIS
AF Gruppen
Dounreay Site Restoration Ltd
April 2009
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Decommissioning Supply-Chain Steering Group – 2nd Workshop
Sola Strand Hotel – Stavanger – 28th August 2008
Name/position
Brian Nixon
Fiona Ogilvie
Alastair Gray
Kåre Kristing
Director - Decommissioning UK
Bill Cattanach
Head of Pilot Secretariat
Ian Prince
Director
Chris Gray
Decommissioning Manger
Katrina Wiseman
Strategic Projects Manager
Colin Manderson
Chairman
Murdo MacIver
Managing Director
David Leckie
Partner
Grethe Kjeilen-Eilertsen
Senior Research Scientist
Øystein Jacobsen
Decommisioning/Abandonment
Leader
Bengt Hildisch
Director
Simon Coles
Work Area Restoration Manager
Neil Poxon
Managing Director
Richard Cockburn
Partner
Torstein Hana
Business Development Adviser
Steinar Nesse
Associate Director
Company/location
Scottish Enterprise
Scottish Enterprise
Genesis (facilitator)
Aker Solutions
BERR
Wood Group
ConocoPhillips UK Ltd
Highlands & Islands Enterprise
Lerwick
Peterhead Decommissioning Limited
Shetland Decommissioning
Consortium
Maclay Murray & Spens
International Research Institute of
Stavanger
(Mekjarvik)
StatoilHydro
AF Gruppen,
Oslo, Norway
Dounreay Site Restoration Ltd
IFT
Shepherd & Wedderburn
Scottish Development International
(Norway)
Det Norske Veritas
Stavanger
April 2009
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Report on industry consultation
Decommissioning Supply Chain Steering Group – 3rd Workshop
Shetland Museum & Archive – Lerwick –Tuesday 2nd December 2008
Name/position
Company/location
Brian Nixon
Fiona Ogilvie
Neil Fraser
Katrina Wiseman
Colin Grant
Ross Caven
Facilitator
Kåre Kristing
Decommissioning Consultant
Murdo MacIver
Director
Erik Hjelde
MCP-01 Cessation Manager
David Westwood
Senior Vice President
Director Business Development Europe
Gunther Newcombe
North Sea Decommissioning Mgr
David Hoare
Pre-projects Manager, Decommissioning
Chris Gray
Decommissioning Manger
Alex West
Regional Director (decommissioning)
Bengt Hildisch
Director – President of Business Unit
Jan Olav Algarheim
Business Development Manager
Richard Cockburn
Partner
Simon Coles
Work Area Restoration Manager
Pamela Coulthard
Partner
Bill Yuile
Business manager
Colin Manderson
Chairman
Archie MacLellan
Administrator – Applecross Trust,
Stewart Ford
Project Manager KLB Decom. Project
Audrey Banner
Scottish Enterprise
Scottish Enterprise
Scottish Enterprise
Highlands & Islands Enterprise
Highlands & Islands Enterprise
Russell MacLeod Ltd
Judith Aldersey-Williams
Partner - Aberdeen
Leo Varkevisser
Manager of Projects
Gordon Picken
Director
Bob Hemmings
Decommissioning Manager
CMS Cameron McKenna LLP
Design Alpha AS
Peterson SBS
Total E&P UK Plc
URS Corporation Limited
BP Exploration Operating Company Ltd
BP Exploration Operating Company Ltd
ConocoPhillips UK Ltd
Wood Group
AF Decom
AF Gruppen Offshore
Shepherd & Wedderburn
Dounreay Site Restoration Ltd
Maclay Murray & Spens
Production Services Network
Peterhead Decommissioning Limited
The Applecross Trust
Venture Production Plc
DECC
Allseas
BMT Cordah
Shell UK Exploration & Production
April 2009
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Decommissioning Supply Chain Steering Group - Final Workshop
Solstrand Hotel Os Nr. Bergen, Monday 9th February 2009
Name/position
Company/location
Brian Nixon
Fiona Ogilvie
Neil Fraser
Katrina Wiseman
Scottish Enterprise
Scottish Enterprise
Scottish Enterprise
Highlands & Islands Enterprise
Ross Caven
Facilitator
Russell MacLeod Ltd
Øystein Jacobsen
Decommisioning/Abandonment Leader
StatoilHydro
Erik Hjelde
MCP-01 Cessation Manager
David Hoare
Pre-projects Manager, Decommissioning
Chris Gray
Decommissioning Manger
Bob Hemmings
Decommissioning Manager
Norman McLennan
Suppy Chain Manager
David Westwood
Senior Vice President
Director Business Development Europe
Murdo MacIver
Director
Kåre Kristing
Decommissioning Consultant
Bengt Hildisch
Director – President of Business Unit
Jan Olav Algarheim
Business Development Manager
Richard Cockburn
Partner
Simon Coles
Work Area Restoration Manager
Pamela Coulthard
Partner
Alex West
Regional Director (decommissioning)
Judith Aldersey-Williams
Partner - Aberdeen
Neil McMillan
Business Manager
Colin Manderson
Chairman
Leo Varkevisser
Manager of Projects
Total E&P UK Plc
BP Exploration Operating Company Ltd
ConocoPhillips UK Ltd
Shell UK Exploration & Production
Oil & Gas UK
URS Corporation Limited
Peterson SBS
Design Alpha AS
AF Decom
AF Gruppen Offshore
Shepherd & Wedderburn
Dounreay Site Restoration Ltd
Maclay Murray & Spens
Wood Group
CMS Cameron McKenna LLP
Production Services Network
Peterhead Decommissioning Limited
Allseas
April 2009
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Appendix 2 – consultation questionnaire
April 2009
A North Sea Decommissioning Supply Chain Forum?
Questionnaire
Background –
In March 2008, Scottish Enterprise led the establishment of an industry consultation Steering
Group for the purpose of identifying issues affecting the development of decommissioning supplychain competencies and capability building.
This consultation process revealed a desire
amongst the wider supply-chain for the creation of a new North Sea decommissioning supplychain industry Forum which would unify the disparate cluster of organisations and initiatives
focused on the North Sea decommissioning market. In addition, it could –
 provide a “collective voice” for the whole North Sea decommissioning supply chain;
 facilitate improved communication between supply chain and OpCos – improving
visibility of both opportunity and capability;
 provide effective co-ordination and communication of research, information, business
development and marketing functions at local, national and international levels;
 build strong regional and international awareness of the North Sea’s
decommissioning supply-chain capability;
 create a forum for commercial networking;
 be the first point of contact for enquires about North Sea decommissioning issues and
guide to sources of support.
Industry led and demand driven, the proposal to establish this new industry Forum has been
endorsed by Oil & Gas UK. Scottish Enterprise and the Department of Energy and Climate
Change also fully supports the initiative.
Please help shape this new initiative by completing the following short questionnaire –
Is the information currently provided about North Sea decommissioning project
easy to understand and access?
Yes
No
Would you benefit from networking with other companies interested in
collaborating on decommissioning projects?
Yes
No
Do you feel the wider supply-chain is well represented and its issues and opinions
clearly understood by the OpCo’s and 1st Tier contractors?
Yes
No
Do you think there is general awareness of the supply-chain’s capability
throughout the North Sea region
Yes
No
Would a dedicated North Sea Decommissioning Supply-Chain Forum be useful to
your organization?
Yes
No
Would you like to be kept informed of the progress of this initiative?
Yes
No
Do you have any other comments (please use separate sheet if required)
Your company name: _ _ _ _ _ _ _ _ _ _ _
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Appendix 3 - market breakdown study
The attached is a detailed report commissioned by Scottish Enterprise and
produced by Kare Kristing, decommissioning advisor with consultants
Design Alpha AS. Mr Kristing was formerly Director of Decommissioning,
UK, with Aker Solutions.
In this report, Design Alpha break down the decommissioning market into
discrete segments across three tiers of activity to identify the individual areas
of opportunity for the Scottish supply chain.
Decommissioning activities are individually analysed to illustrate the
technologies, tools, competences, facilities and equipment required for
successful market entry.
April 2009
α
design alpha as
decommissioning consultants
Decommissioning
break down structure
November 2008
Design Alpha as
P.O.Box 24, 5358 Fjell, Norway
T: +47 91716184
[email protected]
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Contents
1. Introduction
2. Decommissioning market potential
2.1 Cost pie of a “typical” offshore decommissioning project
3. Operators initial preparation
4. TIER ONE Break down
4.1 Platform Hot to Cold
4.2 Engineering
4.3 Offshore work
4.4 Removal and Marine Operation
4.5 Onshore Demolition
5. TIER TWO- break down
5.1 TIER TWO Platform hot to cold - break down
5.1.1 Platform closing down
5.1.2 Wells P&A work
5.1.3 Pipeline and sub sea decommissioning
5.1.4 Hook down – method independent activities
5.2 TIER TWO Engineering - break down
5.2.1 FEED / Design Competition
5.2.2 Project Management / Project Control
5.2.3 Detail Engineering and planning
5.3 TIER TWO Offshore activities - break down
5.3.1 Safety access
5.3.2 Offshore construction
5.3.3 Riser/conductor cutting and lifting
5.3.4 NDT inspection
5.3.5 Weighing
5.4 TIER TWO - Removal and marine operations break down
5.4.1 Offshore marine operations
5.4.2 Inshore marine operations – load in
5.5 TIER TWO - Onshore demolition break down
5.5.1 Onshore engineering
5.5.2 Onshore pre-demolition activities
5.5.3 Demolition work
5.5.4 Waste Management
6. Appendix
6.1 TIER TWO - break down matrix
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1
Introduction
This report was commissioned by Scottish Enterprise to break down the decommissioning market into smaller segments, to identify the qualifications and competence required for each segments. To review how the Scottish Supply Chain
(being Tier 1 – Tier 2 or Tier 3 ) might identify its scope of work within the large
and prosperous decommissioning market.
In the UK, there are approximately 470 offshore oil and gas installations. These
are mainly located in the Northern, Central and Southern North Sea, as well as in
the waters west of Shetland and in the Irish Sea. According to BERR the estimated decommissioning dates are seen in the table below:
Decommissioning is the process of physical removal and disposal of structures at
the end of their working life. The process starts with a plan formulated by the operator, approved by the government and then implemented. The overall timescale
for this is several years, as the program has to take into account many diverse
factors. Several companies and organisations are involved in the total decommissioning chain over these several years.
In this study, we shall deal with the decommissioning activities that will be initiated by the operator after the decommissioning plans have been approved by the
government. We shall divide the different activities into individual segments, and
discuss what sort of technology, competence, tool and equipment that is required
to execute each individual segment – on its own - or weather it has to be integrated into a larger work scope.
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2
Decommissioning market potential
As with timing estimates, projections of the overall cost of decommissioning for
the UKCS also vary widely, from around £10bn to £20bn. Oil & Gas UK’s own activity survey places the cost at just under £12 billion in real terms. The variables
responsible for this range of estimates include:
•
•
•
2.1
the inclusion/exclusion of wells and pipelines
the level of removal i.e. success in achieving derogations for installations
(and final status for pipelines)
cost estimation methods
Cost pie of a “typical” decommissioning project
Topside 15.000 tons
Jacket 10.000 tons
Inshore/onshore work
PM/Engineering
Procurement
Logistics
Offshore/ sub sea work
HLV
Flotel
EPRD contract
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3
Operators initial preparation prior to removal
The operator need to develop numerous documents and produce background documentation before any approval will be given from the authorities for commencing
the physical decommissioning work.
•
Local and international regulations
•
Impact on the marine environment and other users of that
environment
•
Re-use and re-cycling opportunities
•
Cost, safety and practical availability of technology
As a part of the cessation program – the operator need to develop numerous
documents and produce background documentation before any approval will be
given from the authorities for commencing the physical decommissioning work .
•
Descriptions of items to be decommissioned
•
Inventory of materials
•
Removal and disposal options
•
Wells documentation
•
Drill cuttings documentation
•
Environmental Impact Assessment
•
Party and stakeholders consultations
•
Cost and schedule
•
And many more…
Issues which
•
•
•
•
•
•
•
•
•
•
also need to be considered by the operator include:
Well killing, plugging, abandonment
Ageing and corroding to structures
Clean-up, preparation and removal of topside
Dealing with contaminants – LSA scale – special waste –
hazardous materials
Steel jacket removal options
Transport and infield flow lines
Marine vessel interactions
Adjacent field still producing
Clearance of all debris on the sea floor
And more…
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4
TIER ONE - break down
The timescale of the physical removal program of a decommissioning project
might vary from 1 year to 4-6 years or more – depending on complexity of the
field, and the numbers of structures to be removed. An efficient
decommissioning program is dependant on the specific characteristics of a
particular facility, but some generalisations can be made.
The various phases below, encompass the majority of the various activities – that
might involve a TIER ONE Contractor. Production cessation is the starting point of
the indicated chain of activities.
The operator might consider various contractual regimes – like a Lump Sum EPRD
contract (Engineering – Preparation – Removal – Demolition) or divide the
activity chain into separated contracts – to be awarded to suitable and capable
contractors.
This study will divide the main phases into a lower level of activities/segments –
and discuss the requirement of technology, competence – man power – tools and
equipment that is required to execute each and individual segment.
Production Cessation
Starting point - EPRD contract
Platform
hot to cold
Engineering
Decommissioning break down structure
Offshore
activities
Removal
& marine
operations
Onshore
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4.1
Platform hot to cold
After the final decision of field cessation, the platform production and operation
will be closed down – fully or partially. Hence, depending on the cessation plan,
the platform will continue into a status of minimum operation, having only necessary safety and support systems in force. Or the platform will be made safe for
an unmanned platform status.
The operating company is normally in charge of such operation, due to the fact
that several platform and field operations might be run in parallel. An extensive
engineering activity is performed - under supervision of the operating company
- to define any interfacing with other producing fields, and to detail the platform
“hot to cold” activities.
•
•
•
•
•
•
•
4.2
Wells to be closed and plugged (P&A)
Pipelines to be decommissioned
Platform production systems to be closed down
Utility -and Safety Systems to be closed or scaled down to support the
remaining platform activities
Maintenance activities to be planned and organized according to the
cessation program
Mapping of waste and preserving/cleaning/purging of platform equipment
Contractual preparation for Removal and Demolition of the structures
Engineering
The engineering phase might be initiated by awarding a decommissioning FEED
(Front End Engineering Design) or a Design Competition to the TIER ONE contractors.
The Operator is selecting the competitive FEED contractors through a PQ (Pre
Qualification) exercise. In the PQ documents, the Operator has normally prescribed its preferred contracting strategy. During the FEED / Design Competition
phase - the various Contractors will develop their preferred Removal Method.
Based on the result from the FEED/Design Competition, the Operator will define
its final contracting strategy, and thereafter award the contract (or contracts)
accordingly. The contracts might vary from - an integrated EPRD contract (Engineering – Preparation – Removal – Demolition) to a main Contractor, or divide the
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total scope among – to several contractors. This is the starting point of the major
engineering activity within the decommissioning chain - starting 12 – 18 months
prior to offshore construction.
Required resources: 60 – 100 graduate multi-discipline engineering workforce.
Including 70% with structural competence.
4.3
Offshore activities
The offshore construction phase is in its nature similar to executing a seasonal
Shut Down operation. You will have the same requirement for skilled workforce
and supervision – all pre-requisites to be in place – i.e. work packages – documentation - pre-fabrications – onshore support – tools and equipment – scaffolding – crane support – marine spread and further. The operating workforce is
numbered and composed according to the selected removal method – to safety
and emergency restrictions – to availability of bed spaces – to offshore duration and to the efficiency factors.
Depending on the selected topside or jacket removal method, there will be important interfaces with the individual removal operator.
Estimates schedule for offshore construction duration:
•
2 – 6 months for topside Heavy lifting preparation. Thereafter the heavy
lift operator – using their own lifting crew – takes over the lifting opera
tion. The modules/structures will be lifted onto the deck area onboard the
heavy lift vessel – for transportation directly to shore. Or the structure
might be placed on flat top barges, to be towed to shore.
•
6 – 8 months for Piece small preparation, including offshore cutting and
demolition by hydraulic shears into chargeable sizes - for onshore ship
ment in containers. (Offshore demolition capacity 600 – 800 tons
per week.)
•
4 – 6 months for platform refloat operation. Thereafter the physical
refloat will be operated from a dedicated Master control vessel and towed
to shore.
•
The jacket removal operation will be executed from dedicated marine
vessels, with only minor assistance from the topside construction crew.
Required offshore resources: 100 – 300 multi-skilled operators on each rotation.
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4.4
Removal and marine operations
As of today, the removal methods have been:
•
Use of Heavy lift vessels – for removal of topside modules, jackets, loading
buoys, flares, bridges and various sub sea installations.
•
Use of Construction vessels for removal of 2-6 inch field pipelines, umbili
cals, and various sub sea installations.
•
Use of Construction vessels for pre-removal operations, like ROV inspec
tion, saturated diving operations, sub sea cutting and dredging and other
sub sea activities.
•
Use of Construction vessels to support lift off operation of a gravity based
steel platform structure, by use of buoyancy volume from platform sub sea
storage tanks.
•
Use of Construction vessels to support jacket lift off operation by use of
BTA (Buoyancy Tank Assembly)
•
Use of Caterpillar type hydraulic shears, for cutting and demolition of top
side installations. The hydraulic shears will cut the topside structure into
chargeable sizes for container shipment.
The above mentioned removal methods require its individual detail engineering
and planning of marine spread. I.e. selection of various sized tugs, survey vessels, tanker vessel, logistic vessels, trawlers and flat top barges c/w grillage and
sea fastening.
The offshore marine operation engineering – will detail the individual vessel
operation and define interfacing procedures and bridging documents, where the
ultimate responsibility - for each and individual marine activity - is clearly identified and acknowledge by the various parties and vessels.
The inshore marine activities are depending on the harbour area and the quay
side facilities. During the engineering phase, the offshore removal method including the onshore offloading will be defined having the access to the demolition yard
in mind.
The cost of marine operations, amount of approximately 50% of the total decommissioning project cost.
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4.5
Onshore demolition
The onshore demolition site will have access to sea, offloading facilities and ample
area for handling and demolition of structures, including warehouse and office
facilities. The harbour area must be surrounded by sheltered waters, for various
inshore marine activities. The quayside must be constructed to support skidding
or trailing operations - from flat top barges.
The ideal site do have deep water quay – having possibility to receive Heavy Lift
Vessels for direct offloading to the quayside – area to facilitate any future decommissioning removal method – like topside transported by a Single Lift Vessel or
sub sea foundation for grounding of jackets being removed by buoyancy tanks.
The open land area must have facilities for environmental protection from liquid
spillage, area for scrap handling, waste segregation and storage, lifting/crane support and safe driveways for transport and logistic operations.
The area must be securely fenced in and protected from unwanted traffic and personnel movement.
The Demolition site Operator - must comply with any licenses from local and
governmental authorities, to execute onshore demolition work at the dedicated
area, licenses for any sort of waste treatment, storage, handling and transporting,
including scrap handling.
5
TIER TWO - break down
5.1
TIER TWO Platform hot to cold - break down
Platform
hot to cold
Engineering
Offshore
activities
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Removal
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operations
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5.1.1
Platform closing down
Activities might include
•
Closing down of production systems
•
Closing down utility systems and safety systems only for
maintaining and securing the planned and final operations and duties
•
Preservation – cleaning – purging of instruments, equipment, tools,skids,
vessels and piping systems
•
Waste mapping
•
Preparation for commencement of removal activities or preparing the top
side for a Normally Unmanned phase
The close down and cleaning operation do not require any special decommissioning expertise or technology. An experienced offshore maintenance contractor
having in house engineering, supervision, foremen and operators, is qualified to
execute the offshore task.
Having in depth knowledge about the platform systems and the “as built” documentation. The oil and gas production systems will be closed down in sequence –
system by system – or area by area.
Any vessels, tanks, pumps and pipe works shall be vented and pressure released
before internal flushing and cleaning. Electrical equipment and batteries to be
neutralized and released for any electrical energy. All areas to be inspected and
mapped for hazardous materials and special waste.
Equipment like generators, turbines, cranes, pumps, motors, special skids and usable equipment to be preserved for possible future reuse.
Due to some special cleaning operations and removal of hazardous waste, there
might be some assistance from high pressure cleaning equipment and operators including authorized operators for handling of special waste – like Asbestos.
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Deliverables
•
•
•
•
•
•
•
•
Equipment for system cleaning incl. removal of special waste, fluids and solids.
Scaffolding
Safety/emergency system planning
System decommissioning engineering
Waste management – mapping and removal
High pressure equipment and operation crew
Operators – riggers – fitters - mechanics – electricians - foremen –
supervisors – field engineers – safety officers
Rope access personnel (Abseilors)
5.1.2 Wells P&A work
The facility operator is required to obtain governmental consent to abandon any
well. This entails the submission of a well abandonment program for govermental
approval. The program will detail the procedures and equipment to be used in the
shut-in, isolation and abandonment.
The process of P&A may include a time lag between cessation of production and
completion of removal operations. In such cases the process plant may be decommissioned (made cold) but the installation maintained intact pending its subsequent removal.
Well plugging and abandonment work is normally executed by specialized servicecompanies, having task specific tools /equipment and in-house operators. The
sub sea well intervention is supported by fixed platforms or floating vessels. The
selected Contractor has to deal with wellheads and casing in various structural
conditions. Due to the P&A specialized operations and risk involved, the numbers
of P&A contractors are few and also highly specialized.
(This study will not cover any P&A work)
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5.1.3 Pipeline and sub sea decommissioning
In the UK continental shelf there are 11.000(+) km of sub sea pipelines. Ranging
from <6 inch to 40> inch. Some pipelines are buried – some are covered by mattresses etc. – some pipelines are lying uncovered on the seafloor.
Standard procedures for decommissioning of any pipeline do include cleaning and
purging of all internals for hydrocarbons. This removes all the volatile liquids that
might be hazardous to the marine environment.
This is a market for specialized contractors. I.e. contractors having in depth
knowledge of pipeline cleaning - removal/disposal of wax and contamination
– like mercury and LSA scale – using various pigging and flushing techniques.
Contractors will have access to tools and equipment for dredging and cutting of
guideposts, piles and anchoring arrangements – including spooling of umbilicals/
pilelines and lifting of the various sub sea installations to the surface for further
onshore demolition.
Sub sea decommissioning call for contractors having access to sub sea support
vessels, ROV operations – including divers – and special knowledge of pipeline
cleaning - both large transport pipelines – including removal and spooling of infield pipelines and umbilicals.
Deliverables
•
•
•
•
•
•
•
•
•
•
Construction vessels and marine crew – lifting/cranage
Sub sea cutting tools – engineering and operators
Dredging equipment – engineering and operators
Pipeline pigging and cleaning tools incl. fluids for cleaning and preservation.
Marine operation engineering
ROV operations – equipment and crew
Engineering for pipeline decommissioning
Disposal of contaminated waste – corrosion products – and fluids – waste
route
Structural and metallurgical engineering
Geotechincal exeprience
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5.1.4 Hook down – method independent activities
At the tail end of Platform Close Down activities, the Operator might initiate a
Method Independent Hook Down activity. The task include engineering, planning and removal of closed down equipment, pipelines, cables and cable supports
between modules and structures, without interfering with any possible steel supports or structural integrity for later heavy lifting.
Such activity could be an extention of the close down activities using tha same
operating crew. Or the SOW could be given to the selected removal contractor as
a pre start-up activity.
Deliverables
•
•
Multi discipline engineering work force
Operators – riggers – fitters - mechanics – electricians - foremen – supervisors – field engineers
Example of NW Hutton modules separated after hook down
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5.2
TIER TWO - Engineering break down
Platform
hot to cold
Engineering
Offshore
activities
Removalmarine
operations
Onshore
demolition
5.2.1 FEED / design competition
During a decommissioning FEED / Design Competition phase - the Removal
Method will be developed. The Operating company is selecting the FEED contractor through a PQ (Pre Qualification) exercise. In the invitation documents to the
PQ, the Operator has normally prescribed its preferred contracting strategy.
The selected FEED-contractor will seek to develop the most competitive, efficient,
safe - and cost effective removal method by selecting the best tools for the job.
A FEED-contractor having ownership in Heavy Lift Vessels, will ultimately select a
method where its HLV is the cornerstone.
A FEED-contractor having ownership in Single Lift Vessel, will ultimately select a
method where the single lifter is the tool.
A FEED-contractor having ownership in any other removal tool, will select a method that strongly support such tools.
A FEED-contractor without any link or ownership to any removal tool, will develop
its method - based upon its own experience, knowledge and competence – and
they will introduce the most cost effective and method without being biased to
any vessel or specialized tool.
As a part of the FEED study, the contractors will be given access to the structure
for inspection, and to company provided documents and structural models. The
structural models will be further developed by the contractors to safeguard the
structural integrity throughout the selected methods.
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Deliverables
•
•
•
•
•
•
•
•
Experienced Project management
Multi dicipline engineering task force
Removal tool – like heavy lift vessel – single lift vessel – other removal tools.
Access to required marine spread
Access to sub sea competance
Access to onshore facilities
Established relationship with assisting specialized sub-contractors
FEED documentation and Execution Statement
Example of a structural model
(Maureen Alpha)
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5.2.2 Project Management / Project Control
The overall project team – and its organization form - is very much similar to an
offshore installation project. Having its project management, staff and support
functions, including the direct operating functions – clearly identified as line management and subsequent reporting lines.
The project organization is reflecting the contractual regime, defined by the operator. The contract regime might be an all inclusive EPRD (Engineering – Preparation – Removal – Demolition) contract where the Main Contractor is responsible
for project execution and coordinating of the selected sub-contractors. Hence,
The main Contractor is accepting any interfacing risk between phases and subcontractors. As such the Main Contractor owns the schedule and the selected
Method(s).
The project management for an EPRD contract do require extensive project management experience. Not only from execution of large offshore projects, but also
extensive experience from decommissioning projects. Understanding the “cause
and effect” within the decommissioning value chain. Taking the right decisions at
the early stages, will heavily effect the final result – both technically and commercially.
The overall premises for efficiency, safety and cost, are very much defined in
the FEED/Design Competition and in the Detail Engineering. A TIER 1 contractor
will include key people from the selected sub-contractors (TIER 2 and 3) into the
overall project team.
Segmented contracts call for its own experienced project management team.
Special attentions should be made to Safety -and environmental issues, Change
Management – Risk Management – Sub-contract management and Interfacing
Management.
Deliverables
•
•
•
•
•
Experienced project management crew
Project control systems
HSE management
Sub-contracting management
Establish support and logistic functions
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5.2.3 Detail Engineering and planning
This is the major engineering activity within the decommissioning chain - starting
12 – 18 months prior to offshore construction. Information and documentation
from the operator is the key to success. A survey of all available documentation
relating to the offshore facility, design, modifications and maintenance records
is the starting point. All such company provided documents and models will be
studied in detail. All methodologies, project procedures and guidelines will be
developed – all safety and preparatory work will be defined - pre-fabrication and
construction drawings will be developed – work packages and detail planning will
be developed and defined. All interfacing documents will be defined. Any sub-contracting assistance will be defined and awarded.
This engineering is defining the removal method – the marine activities – efficiency of the offshore crew – and will ultimately govern the technical – safety – commercial and reputation success of the decommissioning program.
Each and individual engineer will have to develop its own decommissioning experience path. Therefore, experiences from earlier decommissioning projects are
most important to the individual engineer. An engineering workforce of 50 – 100
persons is required during detail engineering of a decommissioning project that
consist of 1 – 5 platforms.
Deliverables
•
•
•
•
Multi dicipline engineering task force - 70% structural engineers
Marine engineering
Waste control and Demolition engineering
Individual engineering by the Sub-contractors
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5.3
TIER TWO - Offshore activities break down
Platform
hot to cold
Engineering
Offshore
activities
Removalmarine
operations
Onshore
demolition
5.3.1 Safety access
Before any offshore mobilization, the work place must be made safe. A crew of
structural engineers, safety officers and absailers(rope access personnel) is sent
to the workplace to inspect all walkways, stairways, lay down areas and any safety – and emergency exits. Anything that requires strengthening, will be rectified
or replaced. Safe areas will be defined, and areas for possible dropping objects
will be clearly marked.
Deliverables
•
•
•
Structural engineers – safety officers – rope access personnel – welders and
mechanics
Scaffolding
Steel strengthening support deliveries
5.3.2 Offshore Construction
During the offshore construction phase – the operating workforce is numbered
and composed according to – the selected method – safety and emergency restrictions – availability of bed spaces – facility access and man power efficiency.
The offshore construction phase is very much identical to planning for a seasonal
Shut Down operation.
Detailed planned – defined tasks – all prerequisites in place – streamlined and
skilled operating crew ready for operation – defined duration.
The offshore crew will be introduced to various induction courses prior to offshore
mobilization. Special attention is made to the safety and mental aspects entering
a “dead” platform. No noise from operation – focus on structural wear and tear –
focus on dropping objects – restricted areas – removal of pipe supports is different from installation – the platform physically disappears between each working
period – and other topics.
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Scottish Enterprise
The composition of an offshore decommissioning work force is somewhat similar
to an offshore maintenance/construction type work crew, having offshore skilled
operators including supervision, onshore support and required logistic support.
During construction, the platform facilities must remain operational with respect
to essential services, like
•
Electrical power
•
Support systems for various tools and equipment.
•
Fire and Safety equipment
•
Life support Systems
•
Living Quarters (Flotel)
If non of these support systems are available, temporary support systems must
be supplied as an integrated part of the construction mobilisation.
The onshore support is primarily project management – personnel for crew
change including logistics operations – like helicopters/supply vessels/pre-fabrication/ supply of tools and equipments.
Deliverables
•
•
•
•
•
•
Construction tools and equipment
Pre-fabricated items
Follow-on engineering support and documentation
Operators – riggers – fitters – mechanics – welders – crane operators –
electricians – foremen – supervisors – field engineers – safety officers
Scaffolding – equipment and operators
Logistics operators
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5.3.3 Riser/conductor cutting and lifting
Such contract is often awarded to a specialized cutting company capable of cutting and lifting conductors and risers in one operation. The contractor will normally execute its own structural engineering for the cutting and lifting operations, and
hence supply its own tools and equipment - accompanied by its own crew.
Deliverables
•
•
•
Engineering
Specialized crew for cutting and lifting operations
Tools and equipment
5.3.4 NDT inspection
A non destructive testing of the facility is required to identify
•
•
•
•
Evidence of corrosion or mechanical damages
Status of lift attachment points
Identify any discrepancies between the as-found condition of the structure
and the as-built information
Estimate the degree of corrosion loss in the material thickness of critical
elements
A crew of authorized non-destructive testing personnel is required, having r
adiographic equipment and isotopes for inspection of crack in welding seams and
other structural materials.
Test results are normally defined and documented by onshore laboratories.
Deliverables
•
•
•
Field engineers and operators
Testing equipment
Onshore laboratory and metallurgical engineering
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5.3.5 Weighing
A weight audit will be conducted to identify the actual platform weight. Starting
from the as-built to include items added during its lifetime, and liquid stored and
their distribution within the facility. Prior to any heavy lift off – detail weighing operation might be executed to identify COG (Centre of Gravity). There are various
computerized weighing equipment on the market.
Deliverables
•
•
5.4
Operators
Weighing equipment and controls
TIER TWO - Removal and marine operations break down
Platform
hot to cold
Engineering
Offshore
activities
Removal
& marine
operations
Onshore
demolition
5.4.1 Offshore marine operations
The offshore marine activities, follows as a direct consequence of the defined
methods for removal of topside and jackets. The construction crew onboard the
platform will interface with:
•
Heavy Lifting operators, that will operate its own equipment including its
own dedicated crew onboard the heavy lift vessel.
•
Piece small operator using its hydraulic shears. The shearing machines will
be given adequate area for maneuvering. The machines will be lifted on
board the facility, and set in operation in designated areas.
•
Buoyancy float off marine operators, that will require special equipment
and marine spread.
•
Single lift operators - (Future operations?)
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Scottish Enterprise
The marine activities require detailed marine engineering planning – interfacing
procedures and bridging documents, where the ultimate responsibility - for each
and individual marine activity - is clearly identified and acknowledge by the various parties and vessels.
The offshore marine activities do also include:
•
Tow and transport of the steel structures – topside and jackets.
•
Lifting and transport of piece small items in containers.
•
Sea floor inspection of towing route.
•
Grillage / sea fastening on flat top barges - engineering and construction.
•
Sub sea cutting – dredging and ROV inspection.
•
Trawling by the fishing industry for accepting a clean sea floor.
The offshore marine spread might include,
•
Heavy Lift Vessel,
•
Fat top barges
•
Tugs
•
Safety/stand by vessels
•
Supply vessels
•
Operation Master vessel
•
Construction vessel
•
Tanker
•
Survey vessel
•
Trawler vessel.
•
Flotel/accommodation vessel.
Deliverables
•
•
•
•
•
•
•
•
•
Availability of vessels, flotel and transport barges – c/w dedicated crew
Availability of Hydraulic shears and operators
Marine engineering
Marine project management
Structural engineering
Grillage and sea fastening pre-fabrication
Welders and fitters
Survey documentation
Operation documentation
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Scottish Enterprise
HLV- Saipem 7000 lifting Frigg jacket
Construction vessel Norman Cutter executing
subsea cutting at Frigg
Maureen Alpha towed to shore after refloat
Grillage on flat top barge
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Scottish Enterprise
5.4.2 Inshore marine operations – load in
The inshore marine operations are executed in sheltered waters, and governed by
the selected offshore decommissioning method - the transportation method - and
the onshore receiving facilities. The water depth along the quay side, is very often
the limiting factor for the offloading method.
The structures will be lifted, skidded or trailed over the quayside, and placed on
a safe onshore foundation. Any grillage and sea fastening on barges will be removed or modified for the next transportation.
If a Float Off and Tow method is selected, the facility will be safely moored in a
sheltered position for further processing. The facility will be cut and lifted while
in floating position. Shear leg lifting vessels might be used to lift off the facility in
liftable sizes and transported to quayside.
Deliverables
•
•
•
•
•
•
•
•
•
Pre laid mooring equipment
Mooring engineering
Trailing / skidding engineering
Trailing / skidding equipments and tools
Crainage vessels and equipment
Flat top construction barges c/w power supply and utilities
Burning and cutting tools
Welders and fitters
Support vessels
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Scottish Enterprise
Inshore marine operations - shearleg lift
Heavy lift directly onto quayside
5.5
Skidding operation from flat top barge
TIER TWO - onshore demolition break down
Platform
hot to cold
Engineering
Offshore
activities
Decommissioning break down structure
Removal
& marine
operations
Onshore
demolition
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Scottish Enterprise
5.5.1 Onshore engineering
Before any structure is placed onto the quayside – or delivered to the demolition
site - comprehensive engineering activity will be executed.
•
•
•
•
The quay foundation and the grounding area must have the adequate
supporting power to accept the tonnage of the received structures.
Depending on the offloading method, i.e. offloading by crane, skidding or
trailing or handling of scrap in containers - the set down area have to be
planned and engineered in detail.
The structure footing supports must be distributed and “made to measure”
for safe and stable positioning. The structure supports might be sandbags,
concrete supports - or steel grillage.
Distribution of structures on the demolition area, require mapping of
safety routes, access from personnel and equipment, logistic consideration
w.r.t handling of materials, carnage support, scrap segregation facilities,
cutting area, shipment on road and by vessels.
Special attention has to be given to environmental protection. Equipment carrying potential liquid and fluid substances to be placed in its designated area – noisy
and smelling operation to be executed in protected areas. Any structure related to
oil processing to be located within the special drained area to have any possible
oil spillage under full control.
Deliverables
•
•
•
•
Civil engineering
Structural engineering
Demolition engineering
Site mapping
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5.5.2 Onshore pre-demolition activities
When received on site, all structures will be thoroughly inspected and made safe
before any further demolition work. There shall be no potential harm to people
from falling objects or un-safe walkways or stairways.
The structures will be mapped and stripped for any sort of hazardous waste, LSA
scale and other non-hazardous industrial waste. Any waste will be identified, segregated and removed for further processing and handling.
When all hazardous waste and other non-hazardous waste are removed from the
structure, a certificate “Ready for demolition” will be handed over to the Demolition contractor for further physical demolition work.
Deliverables
•
•
An experienced demolition crew
Storage containers for segregated waste
5.5.3 Demolition work
The physical demolition work is to cut and reduce the structure into manageable
sizes for shipment/transport for final destruction or reuse. The structure will be
demolished by use of mechanical/hydraulic cutting equipment, gas burning, or cut
by diamond wire or high pressure water.
The final scrapping material will be segregated and sorted by type and grade, before loaded onboard vessels or trucks for final reuse destination.
Equipment identified for possible resale are removed, refurbished and re-documented.
An onshore demolition contractor might have the capacity to scrap 30.000 50.000 tons per year.
Deliverables
•
•
•
•
•
Engineering
Demolition operators
Hydraulic shears
Cutting tools – diamond wire equipment – high pressure water jets –
gas cutting tools
Licensed to handle scrap materials
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Scottish Enterprise
Demolition - hydraulic shears in action
5.5.4 Waste management
The Waste Management contractor has to comply with all relevant rules and regulation from local and national authorities for waste handling, storage and transporting – including complying with any Health and Safety Act for handling, storage
and shipment of LSA scale.
The Waste management is to identify, collect, process and transport the waste
until final destruction at the specialist destruction centre. The total waste management chain shall be closely monitored and documented. A final documentation
“Environmental Account Report” will be forwarded to the operator, giving detailed
information of any waste – handling – reuse or destruction.
Deliverables
•
•
Licensed personnel to handle relevant special waste
Comply with all relevant local and national approvals and licenses for waste
handling, storage and transportation
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6
Appendix
6.1
TIER TWO - break down matrix
Activity
Resources
• Multi
dicipline
engineering
Closing down • Offshore
maintenance
multi skilled
crew
Tools/
Equipment
As for normal
offshore maintenance operation
• Construction
vessels
• Pigging and
cleaning
• Sub sea cutting
• Dredging
• ROV
• Waste and liquid
handling
• Onshore
disposal facility
Pipeline and
sub sea
decommissioning
• Specialist
engineering
• Operating
crew
Hook down
– method
independent
activities
• Multi discipline engineerAs for normal
ing
offshore mainte• Operating
nance operation
crew
Decommissioning break down structure
Minimum
Experience
Risks/
uncertainties
Offshore maintenance operations
• Hot work
• Parallel offshore
activities
• Exposure to hazardous waste
• Pipeline decomm.
• Sub sea installation
• Sub sea cutting
• Pipeline
condition
• Hazardous waste
exposure
• Access to pig
launcher/
receivers
• Structural integrity of sub sea
installations
• Lifting operations
Offshore maintenance operations
• Safety mind set
• Hazardous waste
exposure
• Structural integrity
• Innovative solutions
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Page 31
Scottish Enterprise
Activity
FEED/Design
Competition
Project
Management
Resources
Tools/Equipment
• Multi
discipline
engineering
• Project management
• Assistance
from subcontractors
Engineering
house/facilites
Experienced
management
team from
large offshore
projects
• Project control
system
• HSE&Q management
• Sub-contracting
management
• Onshore support and logistic
functions
Decommissioning break down structure
Minimum
Experience
• Decommissioning
value chain
• Project management
• Decommissioning execution and method development
• Marine operations
• Sub sea cutting and removal
• Onshore demolition operations
Decommissioning project
management
Risks/uncertainties
• HSE & Q
• Cost and planning
• Efficiency
• Interfacing
• Structural
integrity
• Logistics
• Documentation
• HSE &Q
• Schedule - progress efficiency
• Cost control
• Change management
• Interfacing
• Coordination
• Reporting
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Scottish Enterprise
Activity
Resources
Tools/Equipment
Detail
Engineering
• Multi
discipline
engineering
• Planning
• HSE&Q
• Cost –
contract
Engineering
• Logistic
house/facilities
• Subcontracting assistance
• Marine engineerin
• Onshore demolition
Safety
access
• Structural
engineers
• Safety officers
• Climbers
• Construction
personnel
• Prefabrications
• Scaffolding
• Construction
tools
Decommissioning break down structure
Minimum
Experience
• Decommissioning
projects
• Project
management
• Decommissioning execution and method development
• Offshore construction
• Marine operations
• Sub sea cutting and removal
• Onshore demolition operations
• Waste management
Offshore
construction
Risks/uncertainties
• HSE & Q
• Cost and
planning
• Efficiency
• Interfacing
• Structural
integrity
• Logistics
• Documentation
• Vessel
availability
• Resources manning
• Access to structure
• Documentation
• Safety
• Structural
integrity
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Scottish Enterprise
Activity
Offshore
construction
Riser/
Conductor
cutting and
lifting
Resources
•
Field
engineers
•
Offshore construction crew
•
Supervision
•
Logistics
•
Onshore support
• Engineering
• Operating
crew
Tools/Equipment
Minimum
Experience
• Construction
tools
• Cranes
• Accommodation
• Utility
systems
• Power supply
• Life support
Offshore
systems
construction
• Safety
systems
• Prefabrications
• Documentation
• Safety induction
courses
• Procedures
• Cutting equipment
• Lifting
equipment
Similar
operations
NDT
• Ultrasonic – radiographic testing
• Isotopes
Operating crew
• Laboratory testing
• Documentation
Similar
operations
Weighing
• Weighing cells
• Weighing conOperating crew
trol
• Documentation
Similar
operations
Decommissioning break down structure
Risks/uncertainties
• Work planning
• Access
• Exposure to
hazardous waste/
liquid/fumes
• Mind set and cultures
• Interfacing
• Change mangm.
• Resources
• Parallel activities
• Access
• Lifting and handling
• Structural
integrity
• Interfacing
• Access
• Safety
• Reporting
• Access
• Interfacing
• Reporting
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Scottish Enterprise
Activity
Removal
method
Offshore
marine
operations
Resources
• Detailed
method
engineering
• Operating
crew
• Construction
crew
• Pre-fabrications
• Removal
method management
• Marine
operation
engineering
• Marine crew
• Construction
crew
• Marine
project
management
Tools/Equipment
Minimum
Experience
Risks/uncertainties
• Heavy lifting
vessel.
• Lifting spread
• Marine spread
• Hydraulic shears
• Containers
Similar
• Topside cranes
operations
• Power supply
• Buoyancy Tank
Assembly
• Documentation
• Procedures
• Accommodation
• Access
• Interfacing
• Schedule
• Availability
• Lifting
operations
• Weather
conditions
• Structural integrity
• Lay down area
• Efficiency
•
•
•
•
•
•
• Interfacing
• Parallel
activities
• Vessel
availability
• Transportation
• Tow
• Weather
condition
• Sub bottom
survey
Marine spread
Flat top barges
Sea fastening
Grillage
Accommodation
Procedures
Decommissioning break down structure
Marine
operations
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Scottish Enterprise
Activity
Resources
Inshore
marine
operations –
load in
• Marine operations engineering
• Mooring engineering
• Structural
engineering
• Construction
crew
• Trailing
operators
• Skidding
operators
• Ballasting
crew
• Onshore
cranes
• Goverrnmental and
local approvals
Onshore
engineering
• Civil engineering
• Structural
engineering
• Demolition
engineering
• Demolition
crew
Onshore pre- • Authorised
demolition
special waste
handling
personnel
Tools/Equipment
• Inshore lifting
barges
• Marine spread
• Construction
barges
• Cutting tools
• Trailing transportation
• Skidding / pulling
• Procedures
•
•
•
•
Demolition area
Quay facilities
Pollution control
Documentation
Minimum
Experience
• Marine
operations
• Steel cutting
• Sub sea cutting
• Mooring
• Trailing
operations
• Skidding
operations
• Ballasting
operations
• Environmental
control
• Structural
integrity
• Weather
condition
• Access
• Working in
hights
Similar
activities
• Soil and ground
conditions
• Structural
stability
• Construction
tools
• Containers for
waste segregation
• Waste mapping Similar
documentation
activities
• Cleaning
documentation
• Special waste
removal habitat
Decommissioning break down structure
Risks/uncertainties
• In trapped and
hidden hazardous
materials
• Exposure to
hazardous fumes –
liquids – LSA scale
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Page 36
Scottish Enterprise
Activity
Demolition
work
Resources
• Engineering
• Hydraulic
shear operators
• Construction
crew
• Authorisations
• Fully licensed
operator
Waste
management • Authorised
personnel
Tools/Equipment
Minimum
Experience
• Hydraulic shears
• Steel cutting
facilities
• Steel segregaHydraulic shear
tion and handling operation
• Concrete
Scrap handling
handling
• Work packages
• Protected area
• Storage and
segregation facilities
• Transportation
equipment
• Documentation
Decommissioning break down structure
Risks/uncertainties
• Access
• Structural
integrity
• Uncontrolled
energy release
• Noice
Handling and
authorisation of Non compliances
special waste
α
design alpha
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Appendix 4 – decommissioning supply chain
capability matrix
Scottish Enterprise Energy Team has produced the attached hyperlinked
matrix which maps the capabilities of 198 current, aspiring and potential
North Sea decommissioning contractors and service providers against 18
pre-defined individual decommissioning activities.
April 2009
AEROSPACE AND MARINE INTERNATIONAL (U
Aquanos
Aquaterra Ltd
•
•
•
Aquatic Engineering
Aquamarine Power
Applus RDT
•
•
•
•
•
•
Apache North Sea
AMEC Group Ltd
•
•
Andrews Hydrographics
Altra Energy Ld
•
•
•
•
•
•
•
•
•
Andrew Palmer and Associates
Aker Kvaerner
AJT Engineering Ltd
Aiken Group
AGR Well Management
Advantica
Acergy UK Ltd
Abmas Engineering
Able UK
Aberdeen Radiation Protection Services
Aberdeen Hydraulics Ltd
Abalt Solutions
Appendix 4 – decommissioning supply chain capability matrix
Activity
•
Project Management
•
•
•
•
Safety access
•
Offshore construction
Riser / Conductor cutting
and lifting
•
•
•
•
•
•
•
•
•
•
•
Onshore predemolition
Avendris
Avanteq
Aupec
•
•
Atlas Engineering
Ashtead Technology Ltd
Arup Energy
Asset Development + Improvement Ltd
•
Waste management
Atkins Ltd
Demolition work
Babcock Integrated Technology
•
•
AXIS Well Technology
Inshore marine
operations - load in
Aveva
Offshore marine operations
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Bluestream Group
•
BJ Services UK Ltd
•
BIS Industrial Services Ltd
Weighting
Onshore engineering
•
•
•
•
NDT
Removal Method
•
Bibby Offshore
Detailed Engineering
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Bredero Shaw
•
•
FEED / Design
Competition
•
Brandt National Oilwell Varco
•
Hook Down - Method
Independent Activities
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Braemar Seascope Offshore
•
•
Braemar Howells Ltd
•
•
•
BP Petroleum
•
•
•
Baker Hughes
Pipeline and Subsea
Decommissioning
BMT Cordah
•
Shut Down
Activity
•
•
Shut Down
Pipeline and Subsea
Decommissioning
•
•
•
•
•
Hook Down - Method
Independent Activities
FEED / Design
Competition
Project Management
Detailed Engineering
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Safety access
Offshore construction
•
Riser / Conductor cutting
and lifting
NDT
•
•
•
•
Weighting
Removal Method
Offshore marine operations
Inshore marine
operations - load in
Onshore engineering
Onshore predemolition
Demolition work
Waste management
Appendix 4
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Page 1 of 5
•
Cutting Underwater Technology
Core Oil and Gas Ltd
Construction Specialists Limited
Consafe Engineering
Conoco Philips UK Ltd
CO2Deepstore
Clerk Maxwell Ltd
Claxton Engineering
Chevron
Cetco Europe Ltd
Capelrig Ltd
Cape Industrial Services
Capcis Ltd
Canyon Offshore
Can (Offshore) Ltd
Cameron Ltd
Caledyne
C&M Group Ltd
Butterley Limited
Bureau Veritas Ltd
Brumac Engineering Services
Briggs Marine Services
Appendix 4 – decommissioning supply chain capability matrix
Project Management
Detailed Engineering
•
•
•
•
•
•
•
•
•
•
Safety access
Offshore construction
•
•
•
Riser / Conductor cutting
and lifting
•
•
•
•
•
NDT
•
Weighting
•
•
•
Energy In Focus
Energy and Power Consultants
ECE Oil and Gas Ltd
Dounreay Site Restoration Ltd
•
Doosan Babcock Energy
•
DOF Subsea Ltd
DeepSea Engineering
Waste management
•
•
•
DNV
Demolition work
•
•
Diajet BHR Group Ltd
Onshore predemolition
•
•
•
Onshore engineering
•
•
Derrick Services Ltd
Inshore marine
operations - load in
•
Denholm Oilfield Services
Offshore marine operations
•
•
•
Delta International
Removal Method
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Exxon Mobil
•
FEED / Design
Competition
•
Expro North Sea Ltd
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
ESR Technology Ltd
•
•
•
ERT (Scotland) Ltd
•
Hook Down - Method
Independent Activities
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Erith Contractors Ltd
•
Eric Faulds Associates Ltd
•
Epconsult Ltd
•
•
Environmental Resources Management Ltd
•
•
•
Enviroco
Pipeline and Subsea
Decommissioning
Enship Ltd
Activity
Shut Down
Activity
•
•
Shut Down
Pipeline and Subsea
Decommissioning
•
•
•
Hook Down - Method
Independent Activities
FEED / Design
Competition
•
•
Project Management
Detailed Engineering
•
Safety access
Offshore construction
•
•
Riser / Conductor cutting
and lifting
NDT
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Weighting
•
•
•
Removal Method
Offshore marine operations
Inshore marine
operations - load in
•
•
•
•
•
•
Onshore engineering
Onshore predemolition
Demolition work
Waste management
Appendix 4
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Page 2 of 5
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Houlder Ltd
Hertel (UK) Ltd
Heerema Marine Contractors
Harland and Wolff
Hampco
Hallin Marine
Halliburton UK
Halcrow Ltd
Gulf Offshore N.S Ltd
Grimley Smith Associates
Global Marine Systems Ltd
Global Energy Group
Genesis Oil and Gas Consultants
Gardline Marine Sciences
Fugro Survey Ltd
Fugro Welll Services
Fugro Rovotech Ltd
Fugro GEOS Ltd
Foster Wheeler Energy Ltd
Forest Environmental
Firstdrill Ltd
Farstad Shipping Ltd
Appendix 4 – decommissioning supply chain capability matrix
Activity
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
FEED / Design
Competition
•
•
•
•
Project Management
•
Detailed Engineering
Safety access
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Offshore construction
•
•
Riser / Conductor cutting
and lifting
•
NDT
•
•
Removal Method
•
Offshore marine operations
Inshore marine
operations - load in
•
•
•
•
•
•
•
Onshore engineering
•
•
•
•
•
•
Onshore predemolition
•
•
Lloyds Beal Ltd
Lerwick Port Authority
Kolfor Plant Ltd
KDC Contractors Ltd
KCA Deutag Drilling Ltd
KD Marine Ltd
JW Automarine
JP Kenny Caledonia
JGC Engineering Ltd
James Fisher Offshore
JR Bryan (Victoria) Ltd
J Murphy and Sons Ltd
ISS Facilities Mgmt
•
Intec Engineering
•
IMES
Iicorr
ICS Triplex
Waste management
ILF Consulting Engineers
Demolition work
Lloyds Register EMEA
•
Weighting
•
•
•
•
•
•
•
•
•
•
Marathon
•
Hook Down - Method
Independent Activities
•
•
•
•
•
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•
•
•
•
•
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•
•
•
•
•
•
Mabbett & Associates
Pipeline and Subsea
Decommissioning
Long O Donnell Associates Ltd
Shut Down
Activity
•
•
Shut Down
Pipeline and Subsea
Decommissioning
•
•
Hook Down - Method
Independent Activities
FEED / Design
Competition
Project Management
Detailed Engineering
Safety access
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
NDT
•
Inshore marine
operations - load in
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Weighting
•
Removal Method
Offshore marine operations
•
•
•
•
•
Offshore construction
Riser / Conductor cutting
and lifting
•
•
•
•
Onshore predemolition
•
•
Demolition work
Appendix 4
•
•
•
•
•
Onshore engineering
Waste management
•
•
•
•
•
•
•
•
•
•
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Page 3 of 5
•
•
Oteac
Optimas (Aberdeen) Ltd
Oilfield Testing Services
•
Oil States MCS Ltd
Offshore Design Engineering Ltd
•
Offshore Ship Brokers Ltd
Offshore Crane Engineering Ltd
Oceaneering
Obsidian Engineering Consultants
Nuvia Ltd
NRG Well Examination Ltd
NCA Ltd
Noble Denton Group
•
National Oilwell Varco
MSL Engineering
•
Murex Welding Products Ltd
Mott MacDonald
Midcontinent (Aberdeen) Ltd
Merpro
MC2 Technical Recruitment
Masterton Demolition
Marine Technical Limits
Appendix 4 – decommissioning supply chain capability matrix
Activity
Shut Down
Pipeline and Subsea
Decommissioning
•
•
Hook Down - Method
Independent Activities
FEED / Design
Competition
•
•
•
Project Management
•
•
•
•
•
•
•
Safety access
•
•
Offshore construction
Riser / Conductor cutting
and lifting
•
•
•
•
•
•
•
•
•
•
•
•
RGB Ltd
Saipem UK Lts - Sonsub
•
•
•
•
•
PSN Ltd
Petrofac Facilities Mgmt
•
Poseidon International Ltd
Petrofac
•
PII Ltd
Peterson SBS
Peterhead Decommissioning
Group
Performance Improvements
PDE Management
•
Prospect Flow Solutions
•
Waste management
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Squibb Demolition Ltd
•
Demolition work
•
•
Sparrows Offshore Services
Onshore predemolition
•
•
•
SMS Ltd
Onshore engineering
•
•
•
•
•
•
Smith International
•
•
•
Smit Marine Projects
•
•
•
•
Shell E• ploration UK
•
•
•
•
•
•
•
•
Servetech Inspection
•
SEPA
•
Scomi Oiltools Ltd
Inshore marine
operations - load in
•
•
•
•
•
•
Removal Method
Offshore marine operations
•
•
NDT
Weighting
•
•
•
•
Qserv Ltd
Detailed Engineering
•
•
•
Activity
Shut Down
Pipeline and Subsea
Decommissioning
Hook Down - Method
Independent Activities
FEED / Design
Competition
Project Management
•
•
Detailed Engineering
Safety access
Offshore construction
Riser / Conductor cutting
and lifting
NDT
Weighting
Removal Method
Offshore marine operations
Inshore marine
operations - load in
Onshore engineering
Onshore predemolition
Demolition work
Waste management
Appendix 4
•
•
•
•
•
•
•
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Page 4 of 5
Well Ops (UK) Ltd
Wellstream International
Wood Group Engineering
Worley Parsons
Zenocean
•
Weatherford
URS Corp
•
Wartsila UK Ltd
Trident Offshore
•
W S Atkins Group
Trac International Ltd
•
Veoli Environmental Services
Total E & P UK
Torkingon Engineers Ltd
The ATR Group
Technip UK Ltd
Talisman
Sureclean Ltd
Subsea Engineering Services
Subsea 7 Ltd
Stork Protech UK Ltd
SSA
Appendix 4 – decommissioning supply chain capability matrix
•
•
•
•
•
Activity
Shut Down
Pipeline and Subsea
Decommissioning
Hook Down - Method
Independent Activities
•
•
•
FEED / Design
Competition
•
Project Management
Detailed Engineering
Safety access
Offshore construction
Riser / Conductor cutting
and lifting
•
•
•
•
•
•
•
•
•
•
•
•
•
NDT
Weighting
Removal Method
Offshore marine operations
Inshore marine
operations - load in
•
•
•
•
•
Onshore engineering
Onshore predemolition
•
Demolition work
Waste management
Appendix 4
•
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Page 5 of 5
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North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Appendix 5 – outputs from innovation workshops
In February and March 2009, Scottish Enterprise and Oil & Gas UK organised
two highly productive innovation workshops in Aberdeen attended by 39 senior
representatives of the North Sea decommissioning sector and other industries
(eg nuclear).
Through facilitators UXL Ltd, participants were led through structured ideas
sessions to identify radical ways of reducing the costs, and enhancing the
efficiency, of North Sea decommissioning.
The outputs and participants from these sessions are summarised in the
following pages.
April 2009
Half-Price Decommissioning
Thursday 5th February 2009
The Gordon Highlanders Museum
St. Luke’s Viewfield Road Aberdeen AB15 1XH 01224 311 200
Times: 09.00 to 13.30 (including lunch)
Facilitators: Jim Dearie & Michael Kearns – UXL Limited (www.uxl-ltd.com)
[email protected] & [email protected]
Representatives from other industry sectors
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Jim French
President – Savannah River Remediation
[email protected]
Rear Admiral Ric Cheadle
Development Director for Defence & Nuclear Markets
[email protected]
Richard Cockburn
Partner
[email protected]
Simon Coles
Work Area Restoration Manager
[email protected]
Ian Phillips
Director – CO2 Infrastructure
[email protected]
Donald Michie
International Business Development Director
[email protected]
Bill Cattanach
Head of PILOT Secretariat
[email protected]
Paul Dymond
Operations Director
[email protected]
Ashutosh Sinha (Ash)
Assistant Director & Manager of Projects
[email protected]
Ben Sharples
Project Director
[email protected]
Ian Lindsay
Director – Commercial Projects
[email protected]
Nigel Peters
Managing Director
[email protected]
Sander Korte
General Manager Marine & Subsea
[email protected]
Angela Mathis
Chief Executive
[email protected]
David Symon
Managing Director – Denholm MacNamee
[email protected]
Organisation
URS Corporation
http://www.urscorp.com/

Atkins Ltd
http://www.atkinsglobal.com/

Shepherd & Wedderburn
http://www.shepwedd.co.uk/

Dounreay Site Restoration Ltd
http://www.dounreay.com/

CO2 Deepstore
http://www.co2deepstore.com/

ASCO Group
http://www.ascoworld.com/index.asp

Department of Energy & Climate Change
http://www.pilottaskforce.co.uk/

Oil & Gas UK
http://www.ukooa.co.uk/

Shipbuilders & Repairers Association
http://www.ssa.org.uk/

James Fisher Defense Limited
http://www.james-fisher.co.uk

Babcock Integrated Technology
http://www.babcock.co.uk/opco/marine

Secro Group Plc
http://www.serco.co.uk/

SMIT Marine Projects
http://www.smit.com

ThinkTank Maths Limited
www.Thinktankmaths.com

Denholm Oilfield Services
http://www.denholm-oilfield.com

Oil & Gas Decommissioning representatives
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Tom Taylor
Subsea & New Developments Manager
[email protected]
David Hoare
Pre-projects Manager, Decommissioning
[email protected]
Chris Gray
Decommissioning Manger
[email protected]
Murdo MacIver
Director
[email protected]
Kåre Kristing
Decommissioning Consultant
[email protected]
Bill Yuile
Business Manager
[email protected]
Graham Morrison
Specialist Structural Inspector
[email protected]
Jan Stinenbosch
Proposal Manager
[email protected]
Alex West
Director
[email protected]
Richard Austin
Director
[email protected]
David Ellison
Business Development / Key Account Manager
[email protected]
Lawrence Cobain
Sales Manager (Civils)
[email protected]
Wim de Boer
Business Acquisition Manager
North West Europe
[email protected]
Chris Mott
Marketing Manager
[email protected]
Catherine Morgan
Development Engineering Team Leader
[email protected]
Dave Cawson
Operations Manager
[email protected]
Bob Hemmings
Decommissioning Consultant
[email protected]
Organisation
Nexen Petroleum UK Ltd
http://www.nexeninc.com

BP Exploration Operating Company Ltd
http://www.bp.com

ConocoPhillips UK Ltd
http://www.conocophillips.co.uk

Peterson SBS
http://www.sbsl.com

Design Alpha AS

Production Services Network
http://www.psnworld.com

Health & Safety Executive
http://www.hse.gov.uk

Allseas Marine Services NV
http://www.allseas.comn

Wood Group
www.woodgroup.com

Global Maritime
http://www.globalmaritime.com

Saipem UK Limited, Sonsub Division
http://www.sonsub.com

Harland & Wolff
http://www.harland-wolff.com

Heerema Marine Contractors
http://www.heerema.com

Fugro Group
http://www.fugro.com

Talisman Energy (UK) Limited
http://www.talisman-energy.com

Subsea 7
http://www.subsea7.com

Shell UK Exploration & Production
http://www.shell.com/

Observer / support / facilitation
1.
2.
3.
4.
5.
Michael Kearns
[email protected]
Jim Dearie
[email protected]
Brian Nixon
[email protected]
Fiona Ogilvie
[email protected]
Ross Caven
[email protected]
UKL Limited
http://www.uxl-ltd.co.uk
UXL Limited
http://www.uxl-ltd.co.uk
Scottish Enterprise
http://www.scottish-enterprise.com
Scottish Enterprise
http://www.scottish-enterprise.com

Russell MacLeod Ltd




Innovative Decommissioning #2
Monday 30th March 2009
The Gordon Highlanders Museum
St. Luke’s Viewfield Road Aberdeen AB15 1XH 01224 311 200
Times: 12.00 to 16.00 (including lunch)
Name
Facilitators: Jim Dearie & Michael Kearns – UXL Limited (www.uxl-ltd.com)
[email protected] & [email protected]
Organisation
1.
Jim French
President – Savannah River Remediation
[email protected]
URS Corporation
http://www.urscorp.com/

2.
Simon Coles
Work Area Restoration Manager
[email protected]
Dounreay Site Restoration Ltd
http://www.dounreay.com/

3.
Ian Phillips
Director – CO2 Infrastructure
[email protected]
CO2 Deepstore
http://www.co2deepstore.com/

4.
Alex West
Director
[email protected]
Wood Group
www.woodgroup.com

5.
Angela Mathis
Chief Executive
[email protected]
ThinkTank Maths Limited
www.Thinktankmaths.com

6.
Bob Hemmings
Decommissioning Consultant
[email protected]
Shell UK Exploration & Production
http://www.shell.com/

7.
David Hoare
Pre-projects Manager, Decommissioning
[email protected]
BP Exploration Operating Company Ltd
http://www.bp.com

8.
Chris Gray
Decommissioning Manger
[email protected]
ConocoPhillips UK Ltd
http://www.conocophillips.co.uk

9.
Donald Michie
International Business Development Director
[email protected]
ASCO Group
http://www.ascoworld.com/index.asp
10.
Ian Lindsay
Director – Commercial Projects
[email protected]
Babcock Integrated Technology
http://www.babcock.co.uk/opco/marine

11.
Jan Stinenbosch
Proposal Manager
[email protected]
Allseas Marine Services NV
http://www.allseas.comn

12.
David Ellison
Business Development / Key Account Manager
[email protected]
Saipem UK Limited, Sonsub Division
http://www.sonsub.com


Name
Organsiation
13.
Bill Yuile
Business Manager
[email protected]
Production Services Network
http://www.psnworld.com

14.
Graham Morrison
Specialist Structural Inspector
[email protected]
Health & Safety Executive
http://www.hse.gov.uk

15.
Richard Austin
Director
[email protected]
Global Maritime
http://www.globalmaritime.com

16.
Catherine Morgan
Development Engineering Team Leader
[email protected]
Talisman Energy (UK) Limited
http://www.talisman-energy.com

17.
Uisdean Vass
Partner
[email protected]
Maclay Murray & Spens
http://www.mms.co.uk/

18.
Tom Taylor
Subsea & New Developments Manager
[email protected]
Nexen Petroleum UK Ltd
http://www.nexeninc.com

19.
Bill Cattanach
Head of PILOT Secretariat
[email protected]
20.
Murdo MacIver
Director
[email protected]
Peterson SBS
http://www.sbsl.com

21.
Andrew Sneddon
Aberdeen Manager
[email protected]
URS Corporation
http://www.urscorp.com/

22.
John Goodlad
Fisheries Industry Consultant
[email protected]
Havsea Ltd

23.
Samuel Halliday
[email protected]
ThinkTank Maths Limited
www.Thinktankmaths.com

24.
Bengt Hildisch
Director/President of Business Unit
[email protected]
AF Decom Offshore
www.afgruppen.no

25.
Jan Olav Algarheim
Business Development Manager
[email protected]
AF Decom Offshore
www.afgruppen.no

26.
Norman McLennan
Supply Chain Issues Manager
[email protected]
Oil & Gas UK
http://www.ukooa.co.uk/

Department of Energy & Climate Change
http://www.pilottaskforce.co.uk/

Support / facilitation
27.
Michael Kearns
[email protected]
UKL Limited
http://www.uxl-ltd.co.uk

28.
Jim Dearie
[email protected]
UXL Limited
http://www.uxl-ltd.co.uk

29.
Fiona Ogilvie
[email protected]
Scottish Enterprise
http://www.scottish-enterprise.com

30.
Neil Fraser
[email protected]
Scottish Enterprise
http://www.scottish-enterprise.com

Decommissioning Feedback in Workshop #2 - 30 March 2009
1. Form a Company to take on Responsibility & Liability
a. Use facility to generate energy
b. Hydrogen storage
c. Renewable energy
2. Renewables Related - Large platforms
a. Re-use – collection hub & management centre for
wind/wave – send electricity on shore
b. Who – SE Industry Initiative – bring in large electricity
companies
c. Why is it different – Revenue streams/R&D angle – big heat
pump
d. How – Fixed fee for SME units/Large Co
3. Create Discrete Central Offshore Service Centres
a. Larger platforms
i. Shut down hotel
ii. Warehouse for spare
b. How – Industry study on distribution centres – independent not oil related
i. Learn from other industries
ii. Benefit from global price of resource
iii. Government / Industry funding
4. Collaboration for Innovation
a. Currently doesn’t exist – benchmark with MOD experience
b. Reward Collaborative Innovation – Part/Full Funding in key
technologies
i. IP – Define where ownership lies
ii. Remove risks to encourage innovation
iii. Showcase ideas to industry – implemented
iv. Platform for SMEs/Universities to participate
v. Annual Innovation conference – showcase
innovation/technology
5. Impartial Body
a. System doesn’t encourage collaboration
b. Next batch of decommissioning
c. Bring together stakeholders – managed by Government
i. HM Treasury/Government
ii. Bring Forward batch of projects
iii. Bring money to treasury
d. Compile Value Proposition
e. Set rules for how next 5 projects will be let
f. Set priorities of risk & reward
g. Best in class contractors
h. Take things back OSPA (?) change their procedures
i.
Need to set plan & responsibilities
Half-price_Decom_5thFeb v2.xls
Scottish Enterprise Half Price Decommissioning Event - 5th February 2009
How can we half the price of decommissioning ?
Michael Kearns Notes & Score
Melt & crush in situ
half the activity
Leave the pipelines
Bio consume the platform
Less labour intensive
Fish processing factory
Reef it in situ
Challenge the risk
Airship to lift out
Sell to scrap merchant
Pull over and leave
Treat as marine salvage
Ask someone to do 17 for 14 price
Co-operation of oil company - share vessel mob & de-mob costs between operators
Reduce marine spead use
Challenge the laws
Delay the better economic times
Revise jackets power? Offshores?
Develop method earlier
Accelerate rusting
Training centre
Brothel
Wind energy
Bank
Place for bankers
Target practice
Tourist attraction
Nuclear plant
Missile launch pad
Storage
Waste storage
Liquified waste
Lift all out in oner
Small bat
Refueling facility
Offshore bothy
Rehab centre
Bird sanctuary
Cheap dismantling
Leave & cover
Leave stuff on sea bed
Wave power
Render inert
Fish breeding facility
Fish farm
Offshore farm
Thermal power
Observatory
Nuclear waste storage
Optimise tendering process
Share mobile costs
Share vessels
Match specialists to tasks
Use out of work people to d othe work - employment
Ask NGO's what they will do with it
Engage NGO's in ideas
Join up operators
Bigger single projects
Plan the work
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Half-price_Decom_5thFeb v2.xls
Work the plan
Explosives
Set fire to it
Bomb it
Laser it
Cut up offshore
Use for target practice
Controlled fire to clean it
Atomise it
Blow up and drop in big hole
Sell tickets
Global coverage
Lottery to blow it up
Use right equipment to do job
Lighthouse
Speed dating location
Solar power
Film set
Blow it over
Prison
Community project
Guantanamo bay
Turn into plant nursery
Museum
Search ocean for cap
Fish farm factory presentation
Offshore studio
Billionaire to pay for this
Write a script on decom
Sell shares on the decom
Sell small pieces at moment
Fundraising
Price for most innovative idea
Manage risk - societal risk of doing less
Sell the idea to do less
Lobby for different mindset
Pilot study a fish farm
Ram it over
Buoyancy balls
Floating
Take to Mexico
Exit regulations - do what is right
Create PR company to spend money on something else
Wooley jumpers
Take more risk
Current wooliey thinking
Listening - engaging stakeholders - NGO's - Regulators
Independence: objective - 1/3rd partly looks at this
Break stubborness of oil companies
Break entrenched ideas
Cut anodes off & leave
Use different financial model - hedge currency
Make it invisible
Ask the French
More underwater activity
Diverless
All with divers
Straight from sea to shore
Take 1/2 off, leave the rest
Balance of energy used - carbon footprint
Whole life costing - invest in environmental
Performance objective - how clean is clean?
Plant to help clean up
Bio remediation
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Half-price_Decom_5thFeb v2.xls
Jump from one platform to other - bundling
Industry wide fund
Maybe with Government
Sell decom better
Build into curriculum in schools
Leave the footings
Carbon footprint
Flexible load carrier
Order of doing it
Priority list
What if one enterprise did it
How long will it last if left
Press the last drop of oil/gas out
Operator co-operation
Inudstry co-operation i.e. Oxy
Sustainable decom industry
Unmanned production
Beach - breaking up - acceptable - aircraft carrier, Teesside
Opportunities to learn from each other
ITF decom research - create a new entity for decom
Redesign new ones for easier decom
Float team elsewhere for re-use
Just fill the holes leaving all liners in place
North sea jacket dump as a reef for fish
Create a 'Nuclear Decommission Authority' for decommission
Savings account to grow money for future decommissioning
Engage with other stakeholders - Greenpeace, fishing, recycling
Mobilise public to produce ideas
Create decom company from industry
Store nuclear waste down the deep holes
Artificial reef
Find middle ground between 'do nothing' and 'do all'
IMCA type of regulatory body
Encapsulate substruckes (concrete)
Bride foundations
Storage cells
fill storage cells - leave as new rock formation
Job creation to dismantle
Engage the salvage industry more
Re-use jackets for building projects
Widen the engagement to discuss how folk want their taxes spent
Get Far East or emerging economies involved
Tie back producing fields to others so we can decommission without abandonment
Government buys a crane or 2
Get society more involved in process
Generate funding through entertainment
Use offshore techniques
Compete the process - look outwards
Cut pipelines into habitable sections
Stimulate the metal jackets to accept more sea life
Bury the pipelines
Improved relationship between operator/contractor to develop optimum method and schedule
How to preserve the jackets
Pipeline rides
Cannabis growing
Sequence of several functions ending in removal
Create a central dump
Use ex-auto industry skills
Sanctuary spa
Alternative ways of spending the money (schools etc) - present case
China now have the resources to help
Some sort of defence use?
Platforms as communications towers
Sun panels
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Fresh water generation - points in global warming climate
Use platforms/wells to produce thermal heat - for use onshore
Climbing training centre
Puspose built vessel - multi -purpose
Create an offshore marine centre
Re-use for CCS - carbon capture & store
Monastry
Link the work with areas in the country with high unemployment
Health spa
Research & rescue centre
Are there any health benefits of living on an oil rig?
Commit to sample - before & after end states
Launch education programs/guide schools on CO2 emissions and avoidance of
Track/poll long term releases - building ENVIRO trust
Exclusive restaurant
Dive training centre
Gift to 3rd world country
Develop into offshore centre
Reality tv show, Big Brother style
Keep them for post global warming above sea level dwelling
Burn them down
Honeymoon suites
Offshore racing buoys
Offshore lifeboat centre
Offshore greenhouses
Diving training centre
Sell as observatory - clear skies
Commando training centre
Sports diving
Reduce works to essentials
Mobile phone tower
Offshore sailing centre
Sporting centre of excellence
Transit stations
Wind energy
Win a heritage home away from home for holidays
sell to highest bidder
Leave in place and ensure environmental risks are avoided
Offer them free to businesses that will recycle them
Offshore hotel
Boarding school
Adventure playground
Award them civil licenses for marriages -hotel/conference facility
Could those close together be physically linked to support their vulnerability?
Helicopter pilot training school
Retirement apartments
If we have developed 200 ideas in 1/2 day why not do it again and get some more?
Use for storing something that can't be (safely) stored on land
NHS Dentists/hospitals offshore
Re-use them as wireless telephone masts in situ
Make a major statue e.g. Statue of Liberty/Angel of the North
Use the power of internet blogs to generate ideas from around the world
Sell small parts of rig on ebay as souveniers
Internet service - secure site
Lobby the judges to change legislation
Create an offshore school or college
Turn bits into useful products
Location for photo shoots
Detox & revive
Page 4 of 8
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Half-price_Decom_5thFeb v2.xls
Jim Dearie Notes & Score
Understand cost
Half the amount
Improve efficiency
Continuous market
Co-operation
Design to re-cycle
Share costs
Increase competition
Extend life
Re-use as hubs - renewable
Different processes
Prisons
Clean & leave
Reefing
Not for profit industry
Camoflage paint
Eliminate risers / uncertainties
Use new technology not yet discovered
Make into islands
Shared investment for large capital plant
Tax breaks
Other industries for common things
Seasonal
Remove client-contractor relations
Speak to Government regarding legislation
Government reward innovation incentive
Soften environmental legislation
Drain North sea
More yard capacity
Wait for sea level to rise
Let them rust
Dump in North Atlantic
Sink assets
Better maintain
Minimise timescale - go cold - break down
Mow the seabed - automated
Move work onshore
Corrosion enhancement
Rigs - reefs
Extend life - re-use
Remove/share risk
Wind power sites
Re-cycle
Wave/tidal renew
Re-sell jackets
Clean it up faster
Removal in one 'lump'
Not stand alone - need for portfolio thinking
Shared access to decom resource
More data / data analysis / understand the problem
Turn back time
Change public opinion - education
Share the problem with the tax payer
Toxic bank' for decom - Government body to manage liability
Generate a fund
Sink over fault lines
Blow it up'!
Send to space
Improve concrete structures
Don't compete w/development - resources - separate industry
Specific decom resources - vessels/resources/fund
Change industry centre for this - not ABN
Yellow
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Green
Pink
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Give it away for free
Secc/Ebay/Lottery
Fish farms
Seasonal - one season
Gather together
Fun 'Decom Fest'
Good weather
Take the valuable/good - 'burn' the rest
Drag on sea floor
Tourism - Diving/Fishing/Sailing - island
Pirate radio station
Chemical treatment - bioremediation
More public opinion - feel good/clean
Cost Reduction Group
Paint green
Accelerate ?
Make adaptable
Connect to wind mills
Use to farm seafood
Fish farming
Desalination plants
Admission fee
World War 3
Christmas/New Year get-away
Vessel parking space available
Memorial garden
Climate changer
Chasing rainbows
Circuit theory
Global risks
12 nights for only £273 per person
Neighbourhood - darkness
Seafood in the middle of the sea
Face to face with North sea
Great British get-aways for 2009
Water Wonder - water sports
Exhibitions
Tagging trouble
Evolution before & after
Comet cleaners
A room with a view
Luxury on a budget - holiday on a rig
Approaching genius
Sustainable developments
Evolution
Latest face of creation
New frontiers
Tidal bulge
Great barrier reef
Global risk
The magic of oil rigs
Living legacy
Latest tricks
Anti gravity
Environmental pay-off
Work knowledge
Knowledge is power
Success breeds success
Frog chorus - all sing together
Design for future
Control of assets - change
Portfolio
Convertables
Not for profit
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Freeze
Locally drain water
Solidify
Ditches
Crunch up
Flexible resource
Utility investments
Mid term use as gas fired power stations until CCS and clean coal and nuclear new build - energy shortage
"Corporate" salvage
Gas/carbon storage
Swap
Concrete steel termite
Common resources!! Training, learning - fast track experience
Access to finance
Eliminate false divides (perception vs fact)
Less CO2
Compress
Cleaning technologies
Bonuses
Discounts
Low tech - salvage - agricultural
Greater, wider, more positive communciation
Fell them
Emotionally driven
Smile
1
Make the process independent of suips & people?
Extend life
Containment
Redefine work
Adventure holidays - extreme sports
Sell/reuse parts or "remnants" in other apppointments & industries
Reverse public opinions and make the industry "heroes"
Engage innovations & new ideas
East/West link
Port project
Seeing on faith
Aquarium
Robots autonomous systems
Secure storage sites
Make concessions to win support
Searching for the snowflake solution
Thinking out of the box
Outer space technology
Romance, mystery & magic
Be different - don't follow the herd!
Divide industry focus
Blow 'em up!
Electrification plans - power hub for wind farms
Age defying
"Launch" into space
Sustainable developments
Fishing
Discovery trail on an oil rig / unexplored oil rigs
Simplify regulation
Power dressing
Wait for nothing
Reward innovation (carbon concessions, tax, refunds etc)
Big little problem
Museums
Duty free shopping
Leave in situe
Cosmetic Surgery
Boom year - exploding platforms?
Training centres for military etc
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Bridge supports
Chemically neutralise
Perfect match
Saving feels good
Steel town - offshore steel mill
Another toxic ship heads to Hartlepool
Totally wired world
Do short intense workouts
Location location - minimise transport dilema
New style rules
Let SAS practice demolition (explosives) on them
Reabsorbtion into the planet
Fred Dibnah
Escape/adventure sites
Jamie Oliver - change perceptions
The brand you can trust
Central fund - pay monthly
Put the spotlight on
Change rules on accounting provisions for liabilities
An American revolution
1
1
Page 8 of 8
Technical Process
Idea
Theme
"Launch" into space
Airship to lift out
All with divers
Another toxic ship heads to Hartlepool
Atomise it
Beach - breaking up - acceptable - aircraft carrier, Teesside
Better maintain
Bio remediation
Cheap dismantling
Commit to sample - before & after end states
Compress
Crunch up
Cut up offshore
Diverless
Drag on sea floor
Engage innovations & new ideas
Gift to 3rd world country
Give it away for free
Less labour intensive
Lift all out in oner
Minimise timescale - go cold - break down
More yard capacity
Move work onshore
Plant to help clean up
Purpose built vessel - multi -purpose
Removal in one 'lump'
Robots autonomous systems
Seasonal - one season
Sequence of several functions ending in removal
Straight from sea to shore
Take to Mexico
Use new technology not yet discovered
Use right equipment to do job
Blow up and drop in big hole
Bride foundations
Bury the pipelines
Camoflage paint
Chemically neutralise
Clean & leave
Clean it up faster
Cleaning technologies
Containment
Corrosion enhancement
Cut anodes off & leave
Cut pipelines into habitable sections
Encapsulate substructers (concrete)
fill storage cells - leave as new rock formation
Floating
Freeze
How to preserve the jackets
Leave & cover
Leave in place and ensure environmental risks are avoided
Leave in situe
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Complete Removal
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Let them rust
Locally drain water
Lottery to blow it up
Make it invisible
Paint green
Pull over and leave
Ram it over
Reabsorbtion into the planet
Sink assets
Solidify
Stimulate the metal jackets to accept more sea life
Storage cells
Tidal bulge
Wait for sea level to rise
Wave/tidal renew
Accelerate rusting
Bio consume the platform
Bomb it
Boom year - exploding platforms?
Chemical treatment - bioremediation
Concrete steel termite
Controlled fire to clean it
Create a central dump
Ditches
Dump in North Atlantic
Explosives
Fell them
Find middle ground between 'do nothing' and 'do all'
half the activity
Just fill the holes leaving all liners in place
Laser it
Leave stuff on sea bed
Leave the footings
Leave the pipelines
Let SAS practice demolition (explosives) on them
Low tech - salvage - agricultural
Melt & crush in situ
Mow the seabed - automated
Order of doing it
Reduce works to essentials
Render inert
Revise jackets power? Offshores?
Set fire to it
Sink over fault lines
Take 1/2 off, leave the rest
Take the valuable/good - 'burn' the rest
Treat as marine salvage
Turn bits into useful products
Design to re-cycle
Develop method earlier
Different processes
Improve efficiency
Make adaptable
Redefine work
Search ocean for cap
Understand cost
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Leave in Situ
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Partial Removal
Research
Research
Research
Research
Research
Research
Research
Research
Drain North sea
Improve concrete structures
Small bat
Turn back time
x?
x?
x?
x?
Collaboration
Idea
Theme
Central fund - pay monthly
Change industry centre for this - not ABN
Common resources!! Training, learning - fast track experience
Current wooliey thinking
Frog chorus - all sing together
Fun 'Decom Fest'
Generate a fund
Greater, wider, more positive communciation
Industry wide fund
ITF decom research - create a new entity for decom
Jamie Oliver - change perceptions
Make concessions to win support
Mobilise public to produce ideas
More public opinion - feel good/clean
Not for profit
Not for profit industry
Not stand alone - need for portfolio thinking
Price for most innovative idea
Put the spotlight on
Reverse public opinions and make the industry "heroes"
Sustainable decom industry
What if one enterprise did it
Write a script on decom
"Corporate" salvage
An American revolution
Break entrenched ideas
Break stubborness of oil companies
Challenge the risk
Change public opinion - education
Compete the process - look outwards
Control of assets - change
Co-operation
Co-operation of oil company - share vessel mob & de-mob costs between operators
Create decom company from industry
Create PR company to spend money on something else
Design for future
Divide industry focus
Don't compete w/development - resources - separate industry
Eliminate false divides (perception vs fact)
Engage the salvage industry more
Engage with other stakeholders - Greenpeace, fishing, recycling
Float team elsewhere for re-use
Gather together
If we have developed 200 ideas in 1/2 day why not do it again and get some more?
Improved relationship between operator/contractor to develop optimum method and schedule
Increase competition
Independence: objective - 1/3rd partly looks at this
Inudstry co-operation i.e. Oxy
Join up operators
Knowledge is power
Lobby for different mindset
Lobby the judges to change legislation
Match specialists to tasks
More data / data analysis / understand the problem
New style rules
Operator co-operation
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Both
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Opportunities to learn from each other
Plan the work
Priority list
Redesign new ones for easier decom
Remove client-contractor relations
Remove/share risk
Saving feels good
Searching for the snowflake solution
Share costs
Share mobile costs
Share the problem with the tax payer
Share vessels
Shared access to decom resource
Shared investment for large capital plant
Speak to Government regarding legislation
Specific decom resources - vessels/resources/fund
Swap
Take more risk
The brand you can trust
Tie back producing fields to others so we can decommission without abandonment
Work knowledge
Work the plan
Alternative ways of spending the money (schools etc) - present case
Ask NGO's what they will do with it
Build into curriculum in schools
Challenge the laws
Change rules on accounting provisions for liabilities
China now have the resources to help
Continuous market
Create a 'Nuclear Decommission Authority' for decommission
Eliminate risers / uncertainties
Engage NGO's in ideas
Exit regulations - do what is right
Get Far East or emerging economies involved
Get society more involved in process
Government buys a crane or 2
Government reward innovation incentive
Job creation to dismantle
Launch education programs/guide schools on CO2 emissions and avoidance of
Link the work with areas in the country with high unemployment
Listening - engaging stakeholders - NGO's - Regulators
Maybe with Government
Optimise tendering process
Other industries for common things
Reward innovation (carbon concessions, tax, refunds etc)
Savings account to grow money for future decommissioning
Sell decom better
Simplify regulation
Soften environmental legislation
Tax breaks
Toxic bank' for decom - Government body to manage liability
Use ex-auto industry skills
Use out of work people to d othe work - employment
Widen the engagement to discuss how folk want their taxes spent
Ask the French
Big little problem
Convertables
Could those close together be physically linked to support their vulnerability?
Perfect match
Success breeds success
Flexible resource
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Companies
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
Government
x?
x?
x?
x?
x?
x?
x?
Revenue + Other Uses
Ideas
Theme
Access to finance
Admission fee
Billionaire to pay for this
Cost Reduction Group
Fundraising
Generate funding through entertainment
Offer them free to businesses that will recycle them
Re-sell jackets
Secc/Ebay/Lottery
Sell shares on the decom
Sell small parts of rig on ebay as souveniers
Sell small pieces at moment
Sell tickets
sell to highest bidder
Sell to scrap merchant
Sell/reuse parts or "remnants" in other apppointments & industries
Use different financial model - hedge currency
Aquarium
Artificial reef
Bank
Bird sanctuary
Boarding school
Bridge supports
Buoyancy balls
Cannabis growing
Climbing training centre
Comet cleaners
Commando training centre
Community project
Cosmetic Surgery
Create an offshore marine centre
Create an offshore school or college
Detox & revive
Develop into offshore centre
Duty free shopping
East/West link
Exclusive restaurant
Exhibitions
Face to face with North sea
Film set
Fish breeding facility
Fish farm factory presentation
Fish processing factory
Fishing
Great barrier reef
Guantanamo bay
Helicopter pilot training school
Internet service - secure site
Latest face of creation
Lighthouse
Location for photo shoots
Make a major statue e.g. Statue of Liberty/Angel of the North
Make into islands
Memorial garden
Missile launch pad
Monastry
Museum
Museums
Neighbourhood - darkness
New frontiers
NHS Dentists/hospitals offshore
North sea jacket dump as a reef for fish
Offshore bothy
Offshore farm
Offshore greenhouses
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Financial model
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Offshore lifeboat centre
Offshore racing buoys
Offshore studio
Outer space technology
Pilot study a fish farm
Pipeline rides
Pirate radio station
Place for bankers
Port project
Prison
Prisons
Reality tv show, Big Brother style
Reefing
Refueling facility
Rehab centre
Research & rescue centre
Rigs - reefs
Seafood in the middle of the sea
Sell as observatory - clear skies
Some sort of defence use?
Speed dating location
Steel town - offshore steel mill
Storage
Sustainable developments
Target practice
The magic of oil rigs
Training centres for military etc
Transit stations
Turn into plant nursery
Use for target practice
Use the power of internet blogs to generate ideas from around the world
Use to farm seafood
Vessel parking space available
Win a heritage home away from home for holidays
More underwater activity
12 nights for only £273 per person
A room with a view
Adventure holidays - extreme sports
Adventure playground
Award them civil licenses for marriages -hotel/conference facility
Christmas/New Year get-away
Discovery trail on an oil rig / unexplored oil rigs
Diving training centre
Escape/adventure sites
Great British get-aways for 2009
Health spa
Honeymoon suites
Luxury on a budget - holiday on a rig
Offshore hotel
Offshore sailing centre
Retirement apartments
Sanctuary spa
Sporting centre of excellence
Sports diving
Tourism - Diving/Fishing/Sailing - island
Tourist attraction
Water Wonder - water sports
Re-use jackets for building projects
Ask someone to do 17 for 14 price
Bigger single projects
Jump from one platform to other - bundling
Gas/carbon storage
Re-use for CCS - carbon capture & store
Store nuclear waste down the deep holes
Use for storing something that can't be (safely) stored on land
Connect to wind mills
Electrification plans - power hub for wind farms
Fresh water generation - points in global warming climate
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Other
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recreation
Recycle
scale up
scale up
scale up
Storage
Storage
Storage
Storage
Utilities
Utilities
Utilities
Mid term use as gas fired power stations until CCS and clean coal and nuclear new build - energy shortage
Mobile phone tower
Nuclear plant
Platforms as communications towers
Re-use as hubs - renewable
Re-use them as wireless telephone masts in situ
Solar power
Use platforms/wells to produce thermal heat - for use onshore
Utility investments
Wind energy
Wind power sites
Be different - don't follow the herd!
Brothel
Chasing rainbows
Circuit theory
Delay the better economic times
Do short intense workouts
Extend life - re-use
Flexible load carrier
Good weather
Keep them for post global warming above sea level dwelling
Latest tricks
Living legacy
Location location - minimise transport dilema
Romance, mystery & magic
Thinking out of the box
Unmanned production
Use offshore techniques
Wooley jumpers
World War 3
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
Utilities
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
x?
Environment & Public
Idea
Theme
Are there any health benefits of living on an oil rig?
Balance of energy used - carbon footprint
Emotionally driven
Environmental pay-off
Global risks
How long will it last if left
Manage risk - societal risk of doing less
Performance objective - how clean is clean?
Press the last drop of oil/gas out
Sell the idea to do less
Track/poll long term releases - building ENVIRO trust
Whole life costing - invest in environmental
Age defying
Anti gravity
Climate changer
Global coverage
Less CO2
Reduce marine spread use
perception change
perception change
perception change
perception change
perception change
perception change
perception change
perception change
perception change
perception change
perception change
perception change
x?
x?
x?
x?
x?
x?
Scottish Enterprise - Innovative Decommissioning 30th March 2009
How do you change stakeholder behaviours to be more receptive to the
collaborative approach and facilitate cost effective and sustainable contractor
approaches?
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Transfer all assets to a single company
Establish contractor groupings
Eliminate risk
Eliminate greed
Common company/collective funding (consortia funding)
Pilot Government initiative
Government funding for common industry practices - benefit to risk reduction
especially in area of innovation
Demonstrate improved value proposition for all parties
Education - stakeholders - highlight benefits to environment (industry brand)
Accepting complete flexibility on schedule - not an event - a campaign
Contracting model needs improved
Predictability model - better time frames - R&D
Show benefits to stakeholders
Perform beyong their expectation
Reward collaborative innovation
Sharing of risk - contractors with customers
Better sharing of knowledge - open forums for info/solutions
Develop a code of practice
Rewarded as a discriminator by customer
Project ideas
Learning from other industry models
Opertor openess on schedules
Keep contractors going whilst unprecitability carries on - investment by Government?
De-risk innovation via a common fund - ok to try and fail or succeed
Third party toolbox available to all
JV customer groupings
Create co-operation models - operators and contractors
Central body to analyse failures for forward development
Culture of continuous improvement
Identify safe collaboratrive areas
Don't expect cost saving straight away - takes time/experience
Central fund for decommissioning innovation
Work collaboratively to make as cost effective as possible
Keep as simple as possible
Competition as catalyst for ideas
Individual project managers - how to get them to take more risks - rewards?
Impartial Government body to dictate how next batch of work undertaken
DECC's role too passive (50% of costs are after all from taxpayer) - what are they
investing in process?
Create a separate decomm unit in DECC
They need to fix C.O.P determination method
Address need for support to innovation
Address level of appropriate residual risk
Look at CO2 impact - stimulate innovation
Clarify responsibility within DECC
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Demonstrate positives for supporting collaborative interventions
Structure of DECC - causes conflicts of interest?
Voters/Taxpayers (returns to them)
Pro-active joint industry lobbying to Government
Make decomm look good to the public (jobs etc)
Lobby Ministers & local MP's - all levels, top to bottom
Take advantage of opportunity for jobs in a lean economic time
Create a value proposition for Government (and for DECC)
Jobs
Return money to treasury
Money re-invested in development
Cost savings
Supply chain anchored in UK (jobs)
Less money spent by treasury
Scale up to world's market
Grow SME base
UK PLC opportunity
Save CO2/energy/environment
Public credibility for Government
Contribution of supply chain to economy
Less energy Imported from abroad to do decomm if better processes
Learning from other industries e.g. salvage
Defining sustainability and opportunity for the industry
How to get round standard competitive bidding? (alternatives) - bidding vs
68 consortium
Scottish Enterprise - Innovative Decommissioning 30th March 2009
Assumptions
Stakeholders sceptical
Self focus
We can do it better always
Need for change
Credibility issue on when it's going to happen
Must be a cheaper way of doing it
Need alignment between drivers
Some form of facilitation
Risk protection leads to cost increase
Common understanding of risk
Stakeholder preception operators have funds to implement
Innovation is individually owned
What stifles Innovation?
Stealing ideas
Not been tried here before
Not invented here
Risk aversion
I win, you lose
Threat to practices/jobs
Uncertainty over timings
Failure of premature deployment
Corporate directives
Rewards for Collaborative Innovation
It’s missing
It's beneficial
There are "benchmark" examples (MoD, Dtech C, DDA) - joint industry projects
Mechanism
Tax relief
Access to facilities
Part funding of critical technologies (R&D)
Definition of ownership of IP
Removes risk (apportions risk)
Provides a platform to showcase success - public & industries
Removes influence of scale - SME's/Universities have same weight as majors
Regulation
"Impartial" body to chose projects and assess benefits/rewards
Additional Suggestion
Conference to exchange "papers"
Ties and supports into other "collaboration" benefits i.e. DECC - contractor risk etc
Scottish Enterprise - Innovative Decommissioning 30th March 2009
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How can we create central offshore service centres that are commercially viable?
Shut down hotels
Bangalore
Call centres
Create a workable regulatory structure
Cost savings
Public sector support for ongoing maintenance
Transport network
Id USP
Power generator
Military application
Emergency response
Exclusive/luxury retreat
Safe havens
Gas storage
Metrological
Renewables - offshore wind
Communication centre
Offshore fish farm
Operated by contractors
Maintenance centres
Warehouse/logistics/spares
Nuclear waste storage
Reservoir structures
Fully automated units
Training
Recording studio - electric guitars!
Wave
Wind
Solar
Storage for renewables
Substation - power from onshore
Renewables for hydrogen water
Fast track testing centre
Heavy water capture
EU high voltage network
Large scale heat pumps
Pineapple restaurant
Internet server farm
Scientific survey
Business recovery centre - data storage
Offshore designer label - tax free
Yacht race service centre
Make watches from oil rigs!
Prisons
Prisons & call centres combined
Battery farm (animal to be decided)
Peace & reconciliation centres
Team building
North Sea Decommissioning Supply Chain Steering Group
Report on industry consultation
Appendix 6 – Decom North Sea outline business
plan
The consultation process identified a number of key issues to be addressed, of
which the most predominant was the need for an independent, industry-led
decommissioning forum to maximise the new business opportunities of this
market and develop cost-efficient decommissioning strategies to benefit the
overall industry.
The attached pages comprise a preliminary summary proposal which explores
how such a body might be structured, what its main objectives would be and how
it could be funded. As such, it should be viewed only as an outline of intent development of a detailed and costed business plan will be an early deliverable
of the new forum’s Supervisory Board and Executive Team.
April 2009
North Sea Decommissioning Forum
Outline Business Plan
March 2009
Page 1 of 9
1.0
Introduction
1.1
Background
In March 2008, Scottish Enterprise led the establishment of a Steering Group set up to assess the
capability and market-readiness of the supply chain for the North Sea offshore decommissioning
market. In particular, the Decommissioning Supply Chain Steering Group was tasked with consulting
potential, intending and active participants in this market to identify the main challenges they faced and
the barriers which would have to be overcome to enable successful market entry.
Regular opportunity reviews produced by Scottish Enterprise since 2002 had already confirmed the
market potential of the decommissioning supply chain – both for North Sea and international
installations – while also noting widespread uncertainties over issues like timing, seasonality, cost,
contractual responsibilities, technical capability and other critical factors.
The Decommissioning Steering Group consisted primarily of UK and Norwegian companies and
organisations and it’s work was essentially an industry consultation programme carried out between
June 2008 and February 2009. 50% of meetings were held in the UK and the other 50% were held in
Norway.
This consultation process identified a number of key issues to be addressed, of which the most
predominant was the need for an independent, industry-led decommissioning forum to maximise the
new business opportunities of this market and develop cost-efficient decommissioning strategies to
benefit the overall industry. Membership would be open to all interested companies in the North Sea
Region.
This document is a preliminary summary proposal which explores how such a body might be
structured, what its main objectives would be and how it could be funded. As such, it should be viewed
only as an outline of intent - development of a detailed and costed business plan will be an early
deliverable of the new forum’s Supervisory Board and Executive Team.
Page 2 of 9
1.1
Outline proposal
In December 2008, the Decommissioning Supply Chain Steering Group delegated a small working
group to make further consultation with the industry on the concept of a decommissioning supply chain
forum, and to examine the operational feasibility of such an organisation.
In the light of this group’s recommendations, it was proposed that a new industry association be
created – set up as a not-for-profit company limited by guarantee, funded jointly by industry (on a
subscription basis) and by Scottish and UK government agencies for its first two years of operation.
The name of the new organisation is Decom North Sea, having as its principal aims:

to develop and promote North Sea decommissioning supply-chain capability

to respond to economic, technological and strategic challenges facing the North Sea
decommissioning supply chain

to initiate and deliver strategic action plans, market research and coordinated activities in support of
the whole North Sea decommissioning industry
The scope of the operational activities of Decom North Sea will be clearly defined at all stages to
complement and enhance the work of other decommissioning organisations and work groups. The
“North Sea” element in its title is deliberately placed to emphasise the organisation’s inclusive focus –
i.e. to continue the founding Steering Group principals of full integration with other North Sea
decommissioning markets.
The concept of establishing this industry-led, demand-driven organisation is endorsed by Scottish
Enterprise (SE), the Department of Energy and Climate Change (DECC), Highlands and Islands
Enterprise (HIE) and Oil & Gas UK. SE, DECC and HIE have been approached to support the
establishment and initial operational phase with public sector funding.
Decom North Sea will work closely with relevant government agencies and, through Memoranda of
Understanding, complement the activities of other industry associations operating in the North Sea
decommissioning region to formulate effective, fully-coordinated strategies to accomplish our joint
objectives.
Page 3 of 9
1.2
The research and consultation processes
The industry consultation process involved the Steering Group participating in four full-day group
workshops held in Scotland and Norway between June 2008 and February 2009.
The consultation workshops were held in Aberdeen, Stavanger, Lerwick and Bergen with
representatives participating from national oil and gas operating companies, independent operating
companies, offshore and subsea contractors, service providers, decommissioning consultants,
government departments and economic development agencies.
Each workshop was chaired by an independent facilitator, and wide-ranging issues were covered
regarding the challenges, opportunities and possible structure of the future North Sea decommissioning
supply chain.
Following the final consultation in Bergen in February 2009, the outcomes of these processes will be
collated and summarised. A distinct and compelling requirement has already emerged from these
workshops for the creation of a new supply-chain organisation which can unify the disparate clusters of
bodies and initiatives in the North Sea decommissioning market, and bring clarity and commonality to
an emerging and currently disjointed sector of the offshore oil and gas industry.
To confirm the demand for such an industry association, the Steering Group supplemented its
consultation workshops with an emailed questionnaire issued to a wider audience of potential
participants in the new organisation.
From the responses received to date, there has been almost unanimous support both for the concept
of a dedicated North Sea decommissioning association and for opportunities to network with other
companies on potentially collaborative decommissioning projects.
The majority of questionnaire responses also confirm perceptions that information about North Sea
decommissioning projects is difficult to access, that there is a general lack of awareness of the supplychain’s capability, and that there exists a widespread lack of understanding of the many issues which
influence and drive this market.
Page 4 of 9
2.0
About Decom North Sea
Decom North Sea’s primary aim is to develop and establish a competitive UK decommissioning
supply chain.
The consultation process has confirmed a consensus view that the relatively immature UK
decommissioning market will be most efficiently developed through fostering technical, strategic and
commercial collaboration across the North Sea market.
As the main industry body and focal point for the North Sea decommissioning sector, Decom North
Sea‘s principal objective is to increase business opportunities for its members in both domestic and
international markets.
To do this, Decom North Sea aims to unify the fragmented supply chain and create a strong group
identity for the North Sea companies and organisations which have the competency and aspiration to
become involved in offshore decommissioning.
Bringing together the supply chain in this way in a cohesive format will increase the pace of innovation,
increase competition in the supply chain and work towards the goal of driving down the costs of North
Sea decommissioning, as well as enhancing the international competitiveness of the North Sea
decommissioning sector in the global market.
2.1
Decom North Sea – initial objectives
Decom North Sea will provide an effective forum for collaboration, diversification, innovation and
coordinated global marketing of the North Sea’s decommissioning capability in an industry which
currently consists of disjointed groups and initiatives. Early objectives will include:
Development and promotion

Promotion of North Sea decommissioning supply-chain capability at local, national and
international levels

Unified representation of members’ interests at all levels of government and industry

Production and promotion of a strong group identity to support members’ marketing
Response capability

Set up working groups to respond to technological and strategic challenges

Provide an effective first point of contact for enquiries about operating in the North Sea
decommissioning market
Page 5 of 9

Work in conjunction with government agencies and industry associations in the region to define
effective strategies for the development of the North Sea decommissioning supply chain
Industry support

Deliver cost-efficient and coordinated support to enable the supply chain to achieve its strategic
objectives

Develop and deliver an effective events programme including market intelligence seminars,
business mentoring workshops, promotional events and networking opportunities

Develop a strategic plan for a sustainable, internationally-competitive North Sea decommissioning
supply chain
2.2
Long-term objectives
Based on the example of the Nuclear Decommissioning Authority, further objectives may extend to:

Improved focus on decommissioning requirements and the implementation process;

Coordination of decommissioning strategies;

Incentivisation of the supply chain to invest in decommissioning technologies, equipment, facilities
and personnel;

Packaging of decommissioning work (eg by type, location or risk profile) to optimise economic and
technological benefits.
Page 6 of 9
2.3
Organisation and membership –
Management
a)
The Supervisory Board
A Supervisory Board of around 20 will be established, led by a chairman with a proven trackrecord of operational business success in offshore decommissioning. The Decom North Sea
Supervisory Board will have overall responsibility for operational matters, including directing the
preparation of business plans, establishing aims, strategy, participants, long-term organisational
structure, membership levels, research areas, and key performance indicators. The Supervisory
Board will also have responsibility for developing membership rules and regulations.
th
The first formal meeting of Decom North Sea will take place in Aberdeen on Thursday 16 April,
at which the following formal board nominations will be made –
Chairman
Murdo McIver – Peterson SBS
Supervisory Board Members
1.
Donald Michie – ASCO Group
2.
Simon Coles – Dounreay
3.
Jim French – URS Corporation
4.
Bill Yuile – PSN
5.
Richard Cockburn – Shepherd & Wedderburn
6.
Mark Stanley – Veolia Environmental Services Ltd
7.
Alex West – Wood Group
8.
Norman McLennan – Oil & Gas UK
9.
Kare Kristing – Design Alpha AS
Plus 11 others – still to be identified.
Plus public sector “observers”:
1. Bill Cattanach – Head of PILOT Secretariat, Department of Energy & Climate Change (DECC);
2. Katrina Wiseman – Head of Transformational Projects, Highlands & Islands Enterprise (HIE);
3. Fiona Ogilvie – Project Manager, Scottish Enterprise (SE).
Note: UK and Scottish Government departments are not normally able to accept Board
appointments. Instead, each of the participating government departments – DECC, SE and HIE
– will reserve the right for a staff member to attend all board and workgroup meetings in the
capacity of “observer”.
Page 7 of 9
b)
The operational management team
The Supervisory Board will have responsibility for appointing an operational management team of
initially two full-time employees:
1. Chief Executive Officer – reporting to the Supervisory Board –
Decom North Sea’s CEO will be a recognisable, high-profile industry figure with, ideally, at
least 10 years experience at a senior business executive level (Director or above). Energetic
and pro-active the CEO will demonstrate considerable market credibility and have in-depth
knowledge of the domestic and international decommissioning industry and the challenges
facing its UK supply chain. He or she will demonstrate an active and current senior contact
2. Operations Director – reporting to the Operations Director –
This could be the first appointment. The OD will demonstrate an ability to hit the ground
running and quickly develop and implement plans for the launch, business development,
marketing and membership attraction of Decom North Sea. Operational business experience
in the oil & gas industry is deemed to be essential as is international marketing, commercial
oversight and operational business administration/management.
Membership
Tiered levels of membership will be open to any individual or organisation who wishes to join.
Membership of Decom North Sea will be available in the following (nominal) categories:
Associate Members
£250 per annum
Educational Institutions
£525 per annum
< 5 employees
£525 per annum
5-11 employees
£750 per annum
12-20 employees
£1,000 per annum
21-35 employees
£1,575 per annum
36-50 employees
£2,000 per annum
50-99 employees
£2,750 per annum
> 100 employees
£5,000 per annum
Research undertaken during the consultation period indicates that there are potentially 200 UK
businesses and organisations with the capability and ambitions to be actively engaged in the North Sea
decommissioning market.
Page 8 of 9
3.0
Funding
The Decom North Sea finance strategy is based on securing funding from industry (membership
and business streams) and the public sector during the two-year start-up phase.
In the short-term (two years), Decom North Sea will require funding to cover operating costs and
to establish its sustainable position.
Start-up plus first- and second-year operating costs are estimated at approximately £550k over
the first 2 years of operation. This start-up funding will be sought on a shared-cost basis between
industry, and public-sector grant contributions. The industry support will be delivered on a
subscription basis but it is important to note that this industry revenue will only accrue through
time and as a result of consistent and aggressive marketing effort.
From Year 3 onwards, Decom North Sea will be expected to sustain itself through membership
fees, donations, sponsorship and chargeable services.
Summary financial projections appear at Appendix 1. The Supervisory Board will have
responsibility for developing a full operational budget and projections.
Page 9 of 9