Decommissioning Insight 2016 - Oil & Gas UK

DECOMMISSIONING INSIGHT REPORT 2016

Southern North Sea and Irish Sea • Operators forecast the removal of 83 topside modules on 67 platforms over the next decade, with a total weight of 90,260 tonnes. This is an increase on the 66 modules on 57 platforms in last year’s report (78,900 tonnes) due to the new projects.

• Just over 4,000 tonnes of topsides are forecast to be removed in 2017, rising to almost 15,000 tonnes in 2018.

• For three of the projects, although CoP dates have come forward, some decommissioning activity has been deferred as companies want to preserve cash-flow in the current climate.

• Topside removal activity on 85 per cent (57) of platforms has not yet been contracted out, with 18 of these installations set for removal by 2020.

• More operators are looking at decommissioning their assets in batch campaigns compared to last year’s forecast. Batching well P&A and topside and substructure removal activity across several assets allows the operator to optimise contracting strategy and the use of vessels, rigs and accommodation. This is now being considered by all operators in the region to carry out decommissioning in a more cost-effective manner.

• Campaigns are not typically cross-operator, however, some operators have carried out feasibility studies looking at the benefits and risks of cross-operator campaigns that could lead to further efficiency gains.

• The estimate for substructure removal in these regions mirrors that of topsides, with 63,745 tonnes of substructure on 67 platforms to be removed over the decade compared with 46,200 tonnes on 57 platforms in last year’s report.

• In 2017, 6,600 tonnes of substructure are forecast to be removed.

• Activity deferral on some projects and spreading of activity on others has caused the peak to shift since a year ago from 2017 to 11,680 tonnes in 2021.

• The inclusion of additional projects in the survey has increased forecast activity for both topside and substructure removal in the second half of the decade (2021 to 2025) compared to last year.

• Again, 85 per cent of the substructure removals (57) planned over the next decade are yet to be contracted out.

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