Report highlights platform removal
1 Jul 2015
A report looking at the cost-efficient decommissioning and removal of offshore oil and gas platforms has been published by ABB.
ABB conducted the study on behalf of Decom North Sea (DNS), the representative body for the decommissioning industry, and Zero Waste Scotland (ZWS), who focuses on methods for cost-efficient decommissioning practice.
Initially launched in March, the Removal and Disposal Landscaping Study considers three principal recognised platform removal methods - highlighting their advantages and disadvantages.
With decommissioning cost forecast rising, currently in the region of £45 billion, it is essential we find innovative solutions to reduce the cost
DNS chief executive Nigel Jenkins
The first method, known as piece small, involves the removal of an oil and gas platform in small section, typically less than 20 tonnes.
The second method described in the study comprises the removal of a platform in sections or modules of up to 5,000 tonnes and is known a ‘piece large’.
The third method, dubbed single lift, involves the removal of the platform topsides in a single unit, with the jacket also being removed in a similar manner.
As well as examining the advantages and disadvantages of each method, the report also examines the effect the removal method has on the opportunities for re-use and resale.
“With decommissioning cost forecast rising, currently in the region of £45 billion, it is essential we find innovative solutions to reduce the cost burden for both the operators and the UK tax payer,” said DNS chief executive Nigel Jenkins.
“This important research starts the journey towards increased efficiency, circular economy principles and presents opportunities for the UK supply chain.”
According to the report, platform operators are highly interested in the financial viability of piece small and piece large decommissioning, as well as understanding the health and safety implications of extended offshore decommissioning work and technology solutions for alternative removal methods.
What’s more, the report also highlights the need for a further industry study to establish when alternative methodologies may be the most cost-effective options, while also calling for the need to “share learning from the onshore demolition market and downstream oil and gas sector on what is required to maximise re-sale of decommissioned and redundant plant and equipment”.
According to Steve Andrews, who is head of ABB’s decommissioning team: “Decommissioning is one of the biggest challenges facing the UK offshore industry and if costs are going to be controlled, then alternative approaches must be fully explored to determine their applicability.”
Analysis
Decommissioning looks set to become an increasingly frequent activity in the North Sea, especially given the difficulty of extracting oil from deeper fields, the number of ageing platforms and the amount of new projects on the horizon.
Indeed, figures taken from Oil & Gas UK’s Activity Survey 2015 reveal that only 14 wells were drilled out of the expected 25 last year and between just eight and 13 wells are expected to be drilled this year.
Coupled with the fact the remaining oil is being sold far short of where oil and gas firms would like, and the picture looks pretty bleak.
Though the ABB study aims to establish the most cost-effective and financially viable options for decommissioning, you cannot help but think it’s just momentarily prolonging the inevitable.
