Report calls for investment to step up UK onshore decommissioning

UK yards could cut the cost of onshore decommissioning of offshore facilities by creating new facilities that combine dry-docks, extensive land and the ability to realize the full value of scrap metal.

Offshore staff

ST ANDREWS, UK – UK yards could cut the cost of onshore decommissioning of offshore facilities by creating new facilities that combine dry-docks, extensive land and the ability to realize the full value of scrap metal.

This is the main finding of research by Peel Ports, performed in cooperation with more than 30 executives in oil and gas production, the supply chain and related sectors over the past 12 months.

Results have been published in a white paper, launched earlier this week at the Offshore Decommissioning Conference in St Andrews.

The paper also calls for a commitment by offshore operators and the UK government to the development of such facilities, to allow supply chain and infrastructure providers to make associated investments with confidence.

All must be involved to allow commercial and public partners in the decommissioning process to create strategic centers facilitating a more efficient production-line approach, the authors argue.

This in turn would facilitate to co-location of the wide range of special capabilities required throughout decommissioning.

Gary Hodgson, Strategic Projects Director at Peel Ports, said: “The work that we have carried out shows there is a model for success, by combining the benefits of dry-docking, plentiful space, and efficient use of scrap metal markets. If we get that right then it has the potential to transform the prospects foronshore decommissioning, reducing costs for the industry and the taxpayer, at the same time as benefiting our economy, the environment and worker safety.

“But we need to see a radical new ambition and commitment to create the facilities required to achieve all of these goals. That’s why we’re calling on the government, the energy sector, and industry stakeholders to get round the table with infrastructure investors such as ourselves so we can deliver a new deal for decommissioning together.”

Onshore activities related to decommissioning range from dismantling and demolition of structures, to cleaning and handling of hazardous waste, re-use, recycling and disposal of all wastes, and temporary storage of economically-viable by-products.

AlthoughScottish ports and onshore facilities can handle these task, there is competition from other ports and yards in Europe that can provide deepwater access.

12/04/2017

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