Association: Decom North Sea
Decom North Sea is driving efficiency Page 8
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AKD AF Decom Engineering Offshore
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Mammoet Decom B.V.
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Red7Marine Able UK Limited
Decom North Sea
Decom North Sea is driving efficiency Written by: Joel Levy Produced by: James Pepper 2
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Decom North Sea Driving efficiency
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ecom North Sea is providing expertise to meet the £40 billion challenge of decommissioning ageing oil and gas infrastructure whose lifespan has been extended 20 years beyond expectation. Technological advances and sector innovations see many facilities still operating after 40 years, but with the recognition that this cannot be maintained indefinitely, Decom North Sea is primed to support operators and supply chain companies in complex and costly decommissioning projects scheduled for the next 30 years. “The industry’s success in increasing the life of assets is to its credit,” said Chief Executive
Brian Nixon, CEO 4
Officer Brian Nixon, “but in 20082009 there was a recognition by the UK and Scottish government agencies through their dialogue with the operators that there was a significant amount of decommissioning ramping up that could not be pushed back any further.” Action was needed for the industry to support operators and deliver decommissioning as costeffectively as possible. After a yearlong consultation, Decom North Sea was the agencies’ principle recommendation. Enhancing knowledge Decom North Sea organises a range of events where its members share strategies and identify challenges, collectively broadening the knowledge base. Contractors, service specialists and consultants engage in positive dialogue, hear first-hand from operators and offer insight into how decommissioning planning and execution can be improved. Learning programmes around the North Sea to the Netherlands, Norway and Denmark identify market opportunities and foster joint venture and collaborative relationships with a view to enhancing capability internationally and taking an approach embracing
| www.businessrevieweurope.eu
the talents of European partners, and indeed introducing Decom North Sea’s own methods to these regions. Nixon said: “We are really a European organisation. We have Norwegian, Dutch, Danish and French members, and have always taken this holistic approach of thinking of the North Sea as a single market. “We believe the experience in Norway and the Netherlands is something we can learn from. “Similarly we think the development work and joint industry projects we have been leading over the last few years resulting in models, templates and guidelines can be transferred for effective and efficient use in other areas of the North Sea.” Further events include nationwide and international Lunch & Learns,
Murchison Field P I CTUR E CO URTES Y O F CNR I
educating operators new to the supply chain in strategies to help them plan and execute their early decommissioning projects effectively. Decom North Sea also distributes newsletters, and holds a useful capability matrix on its website, allowing major contractors and operators to source the necessary
We are really a European organisation. We have Norwegian, Dutch, Danish and French members, and have always taken this holistic approach of thinking of the North Sea as a single market” — Brian Nixon, Chief Executive Officer
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Decom North Sea Driving efficiency consultants, specialists and technology developers. The association additionally holds biannual conferences. October’s is run as a joint venture with Oil and Gas UK, while the May event serves as Decom North Sea’s standalone flagship. The 2014 May conference will focus on identifying the many business opportunities for multiple types of company to arise from the ongoing decommissioning. Nixon described “the cascade effect,” of the numerous openings filtering down from the awarding of the larger contracts to engineering contractors, encompassing the dismantling of processing facilities, supporting structures, subsea equipment and the plugging and abandoning of wells through to onshore disposal, among other priorities. From these major contracts arise many smaller subcontracts, including equipment provision, technology, consultancy support and myriad procurement and supply chain processes, and the conference intends to provide a platform to act upon them. Nixon said: “We aim to help the many scores of companies that have these business opportunities identify what it is, when it is likely to occur and who their customers are 6
Brent Delta isometric P I CTURE CO URTES Y O F S HELL
likely to be. Then a major focus is facilitating one-to-one introductions between suppliers and buyers.” Skills focus Decom North Sea recently held the second round of its successful training courses, led by three experts collectively boasting more than 100 years’ experience, which provides an invaluable overview of the entire decommissioning lifecycle for industry newcomers and an opportunity for constructive dialogue. Decom is monitoring market demand for these courses and will respond in terms of both frequency,
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location and content if there is call for a more in-depth analysis of any particular decommissioning process. While technological breakthroughs like laser-cutting and the under-construction superheavy-lifting vessel will be of benefit, Nixon believes developing existing technologies while enhancing skills is what will really drive efficiency. “It’s not all about technology, but innovative approaches to certain tasks and phases and enhancing the skills of the people who will use the equipment required,” he said. “We have mapped out the supply chain over the 10 phases of a decommissioning project and understand what is required in terms of facilities, technologies and services in each of those phases.” Decom North Sea’s range of projects, educational and knowledge-sharing opportunities are going a long way to increasing efficiency as the awarding of the decommissioning contracts begins, and will reduce cost not only to operators, but the taxpayers who shoulder between 50 and 75 percent of the £40 billion burden. With the association’s solid strategy, the sector looks set for substantial savings in 2014 and beyond.
Type of Association: Decommissioning Founded: 2009 Location: Aberdeen, Scotland Key People/Titles: Brian Nixon, Chief Executive Officer No. of members/listings: Currently 230 Website:
www.decomnorthsea.com
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AKD Engineering Ltd
AKD invests as decommiss provides the platform for e
With a global presence and key partners in place, the UK-based oil and company is taking a proactive approach to offshore development Written by: Matthew Staff Produced by: James Pepper 8
sioning expansion
d gas
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AKD Engineering Ltd Invests as decommissioning provides the platform for expansion
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KD Engineering has built a comprehensive and reputable portfolio in the energy industry over the past 50-plus years and remains committed to progression as it looks to capitalise on the global rise in decommissioning operations. Based in Lowestoft adjacent to the North Sea in the UK, the company’s subsea offerings across oil & gas, machining and design has made it a prime candidate for partnerships with some of the world’s leading organisations over the years.
AKD Decom Inde-Juliet 10
Having completed many of the original projects on platforms in the area to begin with as well as producing many of each construct’s components, it is perfectly positioned to engineer solutions at the end of the life cycle as well. “In regards to the decommissioning sector, our strategy is to continue along the route we’re on for the southern North Sea projects and they’re the platforms we’re looking at primarily at the moment,” said Sales and Marketing Manager, Denise Farr. “This strategy will then naturally
progress into the north and central North Sea with a lot more focus on the deeper water platforms too. “There’s going to be a lot more heavy engineering and a lot more decommissioning over the next few years.” Prosperous partnerships AKD’s confidence in making an impact in these developing sectors stems from a record which speaks for itself in terms of partners and projects. This includes one of its flagship contracts in a joint venture with AF
AKD FFS Loadout
We know where the market is developing and we look at that in depth. In our case, we did some decommissioning with a Norwegian partner over a two-year period and it worked really well so it seems natural to move into that region full time” — Martin Jolley, Managing Director, AKD Engineering Ltd 11
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AKD Engineering Ltd
We are part of the Camelia Group which is a big PLC and one of their targets with any operating company under their umbrella is to see investment and capital into their equipment, people and procedures which go along with that” — Martin Jolley
Decom for Shell in the Indefatigable Field which, over a two-year period, consisted of collaborative concept and deconstruction, and concluded with the removal and safe waste disposal once back on dry land. “We were able to carry out the full operation from start to finish and realised this was a potential business stream for AKD,” explained Managing Director, Martin Jolley. “A lot of the Indefatigable Field which we’ve taken out, we actually put in originally and we still have that relationship with Shell today.” AKD was the first in the UK to decommission platforms on a fulltime basis with its own tailor-made department, utilising its extensive skill sets already in place from its traditional offshore background. As well as the likes of Shell and BP, this has in turn led to collaborations with global oil and gas heavyweights including Technip on a Nigerian project, BP and Perenco to name but a few. Jolley continued: “It’s been part of the growth strategy of the business to form these partnerships and expand, and our next push will be into Norway over the coming years. “We know where the market is developing and we look at that in depth. In our case, we did some decommissioning with a Norwegian partner over a two-year period and it 13
AKD Engineering Ltd
Operations and head office located in Lowestoft, United Kingdom worked really well so it seems natural idea of what that true cost will be,” to move into this region full time.” Jolley explained. This facet stems directly from an Reducing risks ‘all under one roof’ element within Offshore projects can often be the business and the subsequent drawn out over a number of years ability to form solutions and project across the entire process, and this is management teams quickly and again where AKD comes into its own, effectively. with the ability to carry out in-depth Incorporating not only studies long before any engineering management and engineers but or deconstruction takes place. also a specific design component “We do the study, we send to the organisation, this advantage technicians offshore, we do laser ensures that the company can surveys, and then form 3D models remain as innovative and adaptable of the platform to produce a Cost as possible. Time Resource (CTR) model to give “It gives the client a feeling of the owner of that field or platform an comfort with the risk factor not so 14
Subsea Protection Structures (FMC)
AKD Shell Bridge high,” Farr added. “It also makes AKD very strong on a commercial level too, with everything managed in-house. “We’re not having to subcontract a lot of the work out and the client can therefore place a purchase order knowing their project will be entirely managed for them here at AKD.” The entrepreneurial flair and subsequent innovation has recently led to a health and safetyaddressing walk-to-work bridge being patented and set to enter the market next year; an idea attributed to the young and fresh impetus coming from within the workforce.
We’re not having to subcontract a lot of the work out and the client can therefore place a purchase order knowing their project will be entirely managed for them here at AKD” — Denise Farr, Marketing and Sales Director, AKD Engineering Ltd 15
AKD Engineering Ltd Invests as decommissioning provides the platform for expansion Around 10 percent of the business comprises of apprentices with local affiliations to schools and colleges ensuring the next generation of engineers look towards AKD as an employer of choice and that the eco-system of skills continues to develop within the business. Proactive investment As well as investments into its people, the company has historically remained equally dedicated to the improvement of its machinery and facilities. This has led to a recent £2 million injection into new five-axis machines in its workshops, but
Artist’s impression of Bridge
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its key development over the past year saw the acquisition of a new dockside facility in Lowestoft to complement its decommissioning ambitions. “There are some projects bubbling offshore with companies such as ConocoPhillips and Perenco but they may not come off for a few years so we’re already preparing our strategy by securing this land now,” Farr explained. The acquisition has entailed further investments into the buildings and staff featuring on the site and is indicative of the overall AKD philosophy, which will inevitably translate to its decommissioning aspirations on a
Leman Bridge (AMEC)
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global scale over the next three to four years. “In the future, I expect to see further investment in the group,” Jolley concluded. “We are part of the Camelia Group which is a worldwide PLC and one of their targets with any operating company under their umbrella is to see investment and capital into equipment, people and procedures which go along with that. “We are very people-orientated and proactive, and this belief in longevity and not stripping your assets will work hand-in-hand with the new blood we bring in to keep coming up with fabulous ideas and keep fresh eyes on the industry.”
Industry: Energy Founded: 1955 Headquarters: Lowestoft, UK Key People/Titles: Martin Jolley, Managing Director; Denise Farr, Sales & Marketing Manager Products: Oil and gas, machining, decommissioning, design, engineering, manufacture Revenue: £14 million Employees: 150 Website:
www.akd-engineering.co.uk
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Mammoet Decom B.V.
Mammoet makes the difference with decommissioning division With an established onshore reputation to work from, the Dutch organisation’s push into the decommissioning sector is set to enhance its already notable global presence Written by: Matthew Staff Produced by: James Pepper
https://www.facebook.com/Mammoet.WorldWide https://twitter.com/MammoetHolding
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Mammoet Decom B.V. Makes the difference with decommissioning division
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Mammoet Decom is aligning itself to bring new efficiencies and adaptability to the relatively new decommissioning industry through its experience from multiple industries and ability to find fast and unique solutions. As the most recent addition to the brand which comprises onshore civil, energy and petrochemical operations as well as marine, salvage and offshore installation, Mammoet Decom has spent the past few years angling itself towards a fresh approach to decommissioning, capitalising on its tailor-made solutions and internal flexibility. “We have all the engineering
departments for all the different markets and businesses centralised in one office, in each of our locations all over the world, so it’s quite easy to form project teams with different disciplines in it,” said General Manager, Jelle Lanting. “Not only is it good for sales and clients but for the engineers themselves to be close to each other. It helps to solve problems, keeps the job interesting and facilitates innovation.” Meeting market demands Longstanding expertise, state-ofthe-art equipment, and techniques already present in the company through its salvage and onshore divisions has enabled Mammoet to
The company brings new efficiencies and adaptability to the decommissioning industry
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We have all the engineering departments for all the different markets and businesses centralised in one office, in each of our locations all over the world, so it’s quite easy to form project teams with different disciplines in it — Jelle Lanting, GM
Winching diving cage onsite prepare for the market demands and challenges that come from modernday offshore operations. Ageing and deterioration of installations, for instance, requires the flexibility and foresight to help cope with the uncertain characteristics of a platform, and is where Mammoet believes it will thrive in the future with its myriad solutions and strong focus on efficiencies by working closely with clients to find optimal solutions. “We noticed that the market demands alternative solutions for their decommissioning activities,” Lanting said. “Decommissioning is often performed as a reverse installation currently, but while a new platform has very few uncertainties, 21
THE BIGGEST THING WE MOVE IS TIME
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Mammoet Decom B.V.
We like to think outside of the box to be more safe, quick and economic, building solutions around each job in the most sensible way — Jelle Lanting, GM
Diver working on decomissioning part of an offshore platform a platform that has been in the sea for more than 30 years has possibly aged, deteriorated and been modified. Then its characteristics are more like wreck removal than installation. “With our salvage background and background in other industries, we know how to cope with the extra elements within decommissioning compared with installation, such as dealing with technical unknowns or uncertainties.” This isn’t to say that techniques from industries such as installation and salvage can’t be applied to decommissioning though and that’s
what Mammoet feels it can bring to the industry through its background in neighbouring sectors. “We want to use the experience that we have from the other industries, in decommissioning, to make the process safer, more efficient or economic. Inevitably, there may be better tools for the job. In some cases a heavy lift vessel is still the best solution, but for many projects, Mammoet is able to locate prime opportunities within the market in order to offer clients a cheaper, faster and more comprehensive option. 23
Mammoet Decom B.V. Makes the difference with decommissioning division
The removal of the underwater structures are dealt with remotely from a safe distance, ensuring staff and vistors safety onsite Configuring equipment Assessing which projects are most suitable to the company’s existing skill-set is complemented by the diversity of modular equipment already at hand and the innovative ways in which Mammoet configures said equipment for each project when designing a method. The focus can be spread across effectiveness, economy or efficiency through the configuration and application to determine the equipment’s behaviour and suitability. Again, this expertise stems from the comprehensive experience 24
that the company has in multiple industries in reducing the effects of challenges in technical problem solving, management processes and mechanisms that inevitably play a similar role in the decommissioning sector. “A good example of our approach was through the decommissioning of a 160-metre-high buoy in Norway, toppling it to get it horizontal,” Lanting explained. “Our onshore departments normally focus on the civil industry and would never have looked at this job, while our marine engineering department would not consider the techniques we used
If we can inform the market that there are alternative ways of removing their installation that would be a big benefit. We honestly believe decommissioning can be done safer and cheaper in specific cases — Jelle Lanting, GM
The successful recovery of a decomission offshore platform now. It’s a combination of those two departments that made the difference and got us the solution. “We like to think outside of the box to bring safer, quick and economic, building solutions around each job in the most sensible way.” “Over the years we’ve developed ourselves reputably on the approach that we don’t often build the same thing twice and there’s an incremental innovation each time,” Lanting concluded. “It’s not just the size and capacity of our operations which have improved but the techniques we use each time too. “The good thing about modular 25
Mammoet Decom B.V. Makes the difference with decommissioning division
Mammoet is known for its fast and unique solutions to projects
Professional trained staff is crucial to Mammoet’s success
equipment is that it’s easier to adapt and change one small aspect of the overall model to work towards the best solution and best end result.”
that there are alternative ways of removing their installation that would be a big benefit. We honestly believe decommissioning can be done safer and cheaper in specific cases,” Lanting continued. “What I feel we can achieve in decommissioning is to develop the market in a sense that every platform is removed by the most suitable method. “If that means the method is low tech, simple and economic then that’s the method to go with and if the platform has more challenges then your removal methods will be more challenging as well.” Offering a tailor-made service
Industry ambition In four-to-five years’ time, Mammoet hopes to have not only developed its own company in decommissioning, but the industry as well, with an aim to widen the possibilities of how projects can be carried out to further emphasise the difference across the separate offshore divisions and the company’s ability to cater for each individually. “If we can inform the market 26
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Industry: Decommissioning Founded: 1806 Continuous investment allows Mammoet to be flexible and cost effective when dealing with project requirements to suit the requirements perfect for each platform and for each client is the way that Lanting sees the industry progressing and he subsequently hopes that Mammoet will play an active part in this development. The General Manager concluded: “Decommissioning is not just decommissioning, but is a set of combined skills and with every job you only need a few of those skills, you never need them all. “It’s actually how we put together those skills that makes the project and I believe that’s what we want to achieve in decommissioning in the future.”
Headquarters: Schiedam, The Netherlands Key People/Titles: Jelle Lanting, General Manager Products: Decommissioning contracting and subcontracting solutions Revenue: Not disclosed Employees: 5000+ Website:
www.mammoet.com
Visit us online:
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AF Decom Offshore
Environmental focus gives AF Decom the green light for offshore innovation The offshore division of one of Scandinavia’s largest built environment businesses is leveraging its green strategy and experience to lead its unique market offering into Norway and the UK Written by: Matthew Staff Produced by: James Pepper
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AF Decom Offshore Environmental focus
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F Decom Offshore is staking its claim to be one of the leading main contractors in the offshore disposal market, largely courtesy of an environmental pedigree that surpasses competitors on a global level. As part of the AF Gruppen which comprises more than 2,700 employees and has been the top performing company on the Norwegian Stock Exchange for the past seven years, the offshore division is the third largest of six and was introduced in 2004 as a response to a general swell of business in the removal, decommissioning and recycling of marine installations.
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Following on from nearly three decades of success on land through construction, civil engineering and building works, AF Decom Offshore now has its sites firmly set on replicating that prominence both in its native Norway, and in the UK, capitalising on opportunities in the North Sea. UK Project Director Nick Tompkins said: “Our mission statement is ‘clearing up the past and building for the future’, and as a group and through our offshore decommissioning division, we aim to be an industrial entity that creates value by forming the future through contracting energy and environmental services.”
Our mission statement is ‘clearing up the past and building for the future’, and as a group and through our offshore decommissioning division, we aim to be an industrial entity that creates value by forming the future through contracting energy and environmental services” —N ick Tompkins, Project Director UK, AF Decom Offshore Paal Egil Roenn Invested in the environment It is the company’s acknowledgement of future requirements and trends which has helped form its continentleading and market-differentiating environmental strategy. AF Decom’s Norwegian facility in Vats is Europe’s most environmentally friendly and safe site for the disposal and recycling of offshore installations, minimising environmental emissions and accounting for material according to
strict quality requirements. The company has also invested heavily into the monitoring side of its green processes, while affiliations with The Norwegian Institute for Water Research and the Norwegian University of Science and Technology ensures that emissions are monitored and verified independently. “There’s no-one else in Europe, at least, that has the same type of environmental protection systems that we have in Vats,” Tompkins 31
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AF Decom Offshore Supplier Profile
Fearnley Offshore Supply Employees: 20 Established: 1869 Industry: Chartering, Sale & Purchase, Advisory & Consultancy and Newbuilding contracting - Project Development
said. “When anything goes into Vats and is broken up, the facility protects the environment, and our overall standards far exceed what is statutorily required of us in both Norway and the UK.” Further epitomising the efforts that go into this strategy is AF Decom’s promise to recycle between 96 and 98 percent of everything brought onshore for disposal; the lower figure only being deemed acceptable when dealing with hazardous materials.
Services: Tugs, Anchor Handling Tug Supply Vessels, Platform Supply Vessels, Construction Vessels, Fibre Optic & Power Cable Installation:Support Vessels, Barges, Diving Support Vessels, Research Vessels, Field Support Vessel (FSV), ROV Support Vessels, Seismic Vessels. Key principles are: Reliability, Efficiency and Quality Management: Vice President, Tom Fairclough Director - Chartering, Johnny Smaavik Director – Subsea & Projects, Petter Dyring Website: www. fearnleyoffshoresupply.com
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Removal of cruiser Murmansk 33
Seabed Intervention Expert Deep C provides specialized seabed intervention services which add value to
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DeepOcean successfully provided the engineering, planning and execution of the subsea operations in the H7 project for AF Decom Offshore.
Deep Ocean
The H7 subsea decommissioning solution confirm our competitive edge in advanced, cost effective and safe subsea operations also in shallow waters. We trust our clients notice the difference.
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AF Decom Offshore Supplier Profile
DeepC Solutions Industry: Seabed Intervention Services Services: Through in-depth knowledge on technology,operational knowhow and high focus on HSEQ, DeepC delivers solutions which are adaptable to the most challenging projects. Management: Managing Director, Odd Gustav Kvalvåg Technical Director – Jan Erik Larsen Website: www.deepcgroup.no Visit us online:
Supplier Profile
Deep Ocean DeepOcean successfully provided the engineering, planning and execution of the subsea operations in the H7 project for AF Decom Offshore. The subsea operations, supported by our new constructor type Work ROV included; - site surveys, seabed excavation, debris removal and cleaning, cutting, drilling, and preparation for subsea lifting operations. Website: www.deepoceangroup.com
Amund Toftum Ahead of the innovation curve Despite being a large organisation, the AF Gruppen prides itself on being able to operate like a small company; a philosophy which has translated to the offshore division with a strong entrepreneurial spirit often resulting in the introduction of innovative and unique solutions and processes. Tompkins explained: “What we like to do is get ahead of the innovation curve in terms of processes and procedures as well as equipment. For example, we were the first company to introduce the piece small method to the offshore environment by utilising land-based excavators in the offshore theatre. “We looked at the industry and at the way that AF has been doing
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MARCH | 2014 |
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AF Decom Offshore Environmental focus
Construction planning Knowledge@detecon:
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things onshore for decades and thought there’s no reason why we can’t apply the same technologies to the offshore environment.” AF Decom Offshore was also the first company to implement the use of wind farm installation jack-up vessels for the removal of offshore platforms as a pivotal aspect of what the company believes is its biggest differentiator; its ability to integrate the entire process. “We use the piece small method, we use the reverse installation method, single piece removal or a flexible combination of all of those to meet the customers’ needs in the best way,” Tompkins continued.
“We offer the partial or complete removal and then onshore disposal of offshore oil and gas installations, whether they’re subsea, topsides or jackets, and we can do so through a variety of means. “We think that’s our USP because we don’t believe there is any other competitor, certainly in northern Europe, who offers the fully integrated service package. “If you look at individual elements then there are a number of providers of each, but we’re the only organisation that integrates all offerings into a fully integrated service.” This package also incorporates
the provision of standalone engineering and feasibility studies, project management and hazardous material and waste mapping, while continuous investments in equipment, such as two large new cutting machines introduced at Vats last year, ensures that the company is constantly pushing the innovation boundary. Future aspirations The combination of market-leading innovations and the ability to keep ahead of industry trends has culminated in the company being rewarded by some of the most high profile players in the oil and gas 37
AF Decom Offshore Environmental focus
What we like to do is get ahead of the innovation curve in terms of processes and procedures as well as equipment” — Nick Tompkins
The Clip scissors may be a prehistoric method, but it’s always effective industry. Working alongside tier one operators such as Statoil, Gasco and ConocoPhillips, as well as for some of the market’s largest contractors including HMC, has produced a track record that not only reaps financial benefits but also generates invaluable repeat contract work. “One of the major contracts we’ve just commenced operations on is an extension from Statoil for their B11 platform which was 38
a direct result of performing the H7 contract last year,” Tompkins explained. “Similarly, we carried out the Ekofisk 2/4T0 Tank project for ConocoPhillips which involved about 30,000 tonnes of steel being removed using our piece small method, and we’ve spent the past five years working on their EPRD project where we’ve removed nine platforms to date and hope to be awarded further extensions.” To be receiving such high profile contracts stands as testament to
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Industry: Energy Founded: AF Gruppen (1985), AF Decom Offshore (2004) Headquarters: Oslo, Norway Key People/Titles: Nick Tompkins, Project Director, UK Products: Offshore decommissioning the brand reputation that comes from being a division of the AF Gruppen, and Tompkins now hopes that recent successes will continue to breed new opportunities in its focus regions in the years to come. He concluded: “While our future aspirations may include greater geographic expansion, we are focusing on our North Sea operations and aim to replicate our market leading success in Scandinavia and grow the business further in the UK.�
Revenue: Not disclosed Employees: 2,700 Website:
www.afgruppen.com/Offshore-Services www.afgruppen.com/Offshore-Services/ Removal-And-Demolition-Of-OffshoreInstallations/ www.afgruppen.com/Offshore-Services/ Environmental-Base-Vats/
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Red7Marine Limited
Red7Marine is projecting well after cash boost Driven by opportunity in a changing market, this marine specialist is involved in important projects across the country and is looking to continue its ongoing innovation and acquisition of assets Written by: Thomas Johnson Produced by: James Pepper 40
A
UK-based provider of offshore oil and gas plant and equipment, diving services and marine project work, Red7Marine is set to expand having recently secured over £30 million of new development funding from Perwyn, a private equity firm and Red7Marine’s new banking partners. The investment will be spent on acquiring new assets to support the ambitious expansion plans in Red7Marine’s Offshore, Coastal and Inland operations.
This includes the recent arrival of a US $12 million second offshore supply vessel, Red7 Tonjer, increasing the company’s capability for project work and further reducing the need to charter vessels. Nick Offord, Managing Director of the East of England-based company, said: “It increases our company profile and credibility in the market. “It also gives us control. People don’t like firms bidding for work without the backup of being able to 41
Red7Marine Limited Projecting well after cash boost put in their own vessels. “If we say we will commit to something we will commit to it and owning key assets reduces our reliance on brokers for finding us vessels and jack-ups.” Power projects Red7Marine, which has offices and depots in Great Yarmouth, Ipswich, Aberdeen, Exeter, Colchester and Wrabness, is involved in construction projects across the entire UK, Europe and as far afield as the Falklands. Projects include some of the biggest in the world and it is looking
to further its presence in the now lucrative wind farm market. One of its specialties is in jack-up barges and it is currently working for BAM Nuttall Ltd on the Liverpool 2 Project to double container capacity at the Port of Liverpool. Also, for the past 18 months Red7Marine has had a jack-up barge at the River Forth in Scotland, where Europe’s biggest current construction project is underway to build a new bridge across the river. Additionally, the company is currently helping develop an exciting tidal energy project in Swansea, Wales. If successful, the Swansea
Nick Offord, Managing Director 42
Barrage will be the first in the UK to harness the power of tidal energy. Offord, who formed the company by merging his firm, Haven Ports Limited with Mike Jones’s Anglian Marine Services in 2008, said the £756 million tidal lagoon could provide power for 120,000 homes for 120 years. He said: “It is creating quite a lot of excitement. This resource can be harnessed in a way that makes economic, environmental and social sense.” The company worked with international engineering and construction group Costain on
the feasibility side, with a view to creating a budget construction plan. Offord’s firm carried out site investigation for the project with one of its 250-tonne jack-up barges back in mid-summer 2013. It drilled boreholes so that a design could be carried out by WS Atkins Plc for a budget construction plan worked out by Costain. Rapid rise and steady growth The company’s current turnover is roughly £45-50 million and it employs 120 workers, not including temporary contract staff on various projects.
We are innovators; that is who we are, we are opportunity-driven innovators in the market” — Nick Offord, Managing Director
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Red7Marine Limited Maritime leaders in the offshore industr y
Vessel management
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Consultancy
Offshore renewables
www.adpsltd.com
Projecting well after cash boost
www.adpsltd.com
+44 (0) 1752 226797
ADPS Ltd, Mayflower House, Armada Way, Plymouth, Devon, PL1 1LD, UK
Red7Marine’s Haven Supporter “We want to show steady growth over the next few years, certainly in both the construction, wind farm and oil and gas markets,” said Offord. “Our new investment partner has an oil and gas background, so we are looking to do more in the oil and gas market with its assistance and the investment capital it has put into the company.” Red7Marine’s initial turnover in 2008 of £6.5 million accelerated rapidly thanks to increasing demand from the offshore renewables market and an early contract with Fortune 500 Company Fluor. It now has eight jack-up barges 44
in the market. When the two companies got together they bought their first as a joint venture. Offord said that the success of that jack-up barge has cemented the two companies together to form Red7Marine Group and the fleet of eight jack-up barges, several flat top barges, tugs and workboats enjoys good utilisation in the market. Red7Marine has just been named by The London Stock Exchange as one of the top ‘1,000 companies to inspire Britain’ (www.lseg.com/ resources/1000-companies-inspirebritain). Innovative opportunists In this respect the company is
STATISTICS
opportunity driven, said Offord, but is also an innovator. Taska marine is the joint venture company between Red7 and Challis & Sons Ltd., which is currently building its third boat at Ipswich, a four-ton bollard pull tug that combines maneuverability and power in the water with the added benefit of being road transportable. Another example of a development is an underwater excavation and jetting tool called SeaVex. This tool can be used for many different operations including the non-contact burial and deburial of cables and pipelines on the sea bed and carrying out dredging work around structures. It is a mass flow pump, designed in Red7’s Aberdeen office and manufactured in Great Yarmouth. Offord said: “We are innovators; that is who we are, we are opportunity-driven innovators in the market. “We build our own workboats and have introduced those to the market where we prefer to charter them but we have also had a number of purchase enquiries from as far afield as Uruguay and Russia. “So again that shows our level of innovation, the fact that we can build and operate our own tugs, there are not many companies in the UK that do that.”
Industry: Marine services Founded: 2008 Headquarters: Group head office is at Wrabness, Manningtree, Essex Key People/Titles: Nick Offord, Managing Director Products: Offshore oil and gas products and services, marine renewables, maritime inland subsea engineering and marine civil engineering services Revenue: £45-£50 million Employees: 120 Website:
www.red7marine.co.uk Visit us online:
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Able UK
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Able UK seals blue-chip offshore contracts to replicate onshore success The UK energy company has been a market leader in the demolition sector for nearly 50 years and is already following suit through its recently established marine operations Written by: Matthew Staff Produced by: James Pepper
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Able UK Seals blue-chip offshore contracts to replicate onshore success
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ble UK has affirmed itself as the leading industrial energy company in the country by leading domestic markets, not only onshore, but offshore through a recently attained contract from Shell which will comprise the construction of a new quay and the creation of 200 jobs. Progressing since the mid1960s as a provider of increasingly large demolition projects of power stations and oil refineries, the company has recently turned much of its attentions to optimising the same industry expertise and state-of-the-art Teeside facilities Large-scale demolition experts
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to successfully deal with the decommissioning of offshore oil rigs and platforms in the North Sea. “In regards to the demolition projects, we managed to get ahead and then stayed ahead through developing new techniques, and it’s not an idle boast to suggest there isn’t a UK company with the track record of Able’s in terms of successfully dealing with complex demolition challenges,” said Group Development Director, Neil Etherington. “In many respects, we had cracked the onshore demolition side so it was a natural progression for us to go into decommissioning
In many respects, we had cracked the onshore demolition side so it was a natural progression for us to go into decommissioning where, again, it is not an idle boast to say we are now a UK market leader in that field as well” —N eil Etherington, Group Development Director, Able UK where, again, it is not an idle boast to say we are now a UK market leader in that field as well.” Blue-chip contracts The success on both sides of the shoreline is characterised by the blue-chip companies that Able UK has worked with over the years,
a pattern which epitomises some of the most exciting projects the company has recently undertaken or is set to undertake in the coming months. “The type of clients we work with have demands which extend beyond commercial issues and into the critical issues of health, safety and the environment, and we cater for these demands,” Etherington said. Securing the 2008 BP North West Decommissioning Programme contract was, at the time, a massive feather in Able’s cap, being the largest project of its type in the North Sea, and has been followed up this year with the announcement that Shell has chosen the company to decommission rigs from their Brent Field. “The defining element of this project is that it will see, for the first time, the deployment of Allsea’s new vessel, the Pieter Schelte,” Etherington continued. “This means that rather than reverse engineering taking place in challenging offshore conditions, this vessel can lift single pieces of up to 48,000 tonnes and can be placed on a barge within the vessel to be taken, in a single unit, to the port for decommissioning and recycling.” To cater for the project, Able is developing a much stronger quay 49
Able UK Seals blue-chip offshore contracts to replicate onshore success
Artist’s impression of the proposed quay site than it currently has, 120 metres long with 60 tonnes per square metre loading capacity. Etherington added: “The Pieter Schelte is a defining change and we are purpose building quays to suit its specific requirements, not just for this contract but generally moving forward it puts us in a strong position. “This single project alone, which will extend over a six year period, will also open up 100 new employment opportunities in the construction of the quay and another 100 jobs through the duration of the contract.” 50
Entrepreneurial spirit Remaining innovative and entrepreneurial has been a key feature of Able UK’s rise to the top, combining the optimum facilities with the ideal skill sets to present an irresistible option to industryleading companies, which have also included the likes of ConocoPhillips and Total. “The almost unique nature of our offer is that we combine that core demolition skill with having exactly the right facilities to undertake this sort of decommissioning work, and that requires a port that has specifically the right level of water
The Pieter Schelte is a defining change and we are purpose building quays to suit its specific requirements, not just for this contract but generally moving forward it puts us in a strong position” — Neil Etherington
and strong load-bearing quays such as we have at Seaton Port where we undertake most of our activities,” Etherington explained. “The quays have a 40 tonne square metre universally distributed load and we also take advantage of the significant opportunities afforded by the indigenous quayside supply chain.” This has contributed to a further string being added to the Able bow through engaging in extensive work at Seaton Port, supporting mobile oil rig operators in regards to maintenance and upgrades of jackup and semi-submersible rigs. 51
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Able UK Supplier Profile
Harpers Environmental Harpers has been servicing industry for over 60 years efficiently cleaning, removing and disposing hazardous and non-hazardous waste in a safe and compliant manner.Harpers is regarded as an industry leader with the capacity to react to clients’ requirements with innovative and patent pending value adding solutions. Harpers has a detailed understanding of clients’ needs and ensures cost effective solutions reduce down time during critical projects.Harpers has one of the largest fleets of premium DISAB vacuum vehicles complemented with numerous specialist high powered liquid ring pumping tankers. Operating nationally for many large industry clients in the oil and gas, chemical and heavy industry sectors, Harpers employs highly trained staff including confined space, BA and UHP Jetting teams. Harpers has gained the long term trust of many clients and takes pride in protecting reputations and respecting the environment. Call York 01347 810677 or Teesside 01642 563129
“We have had as many as 10 rigs in since 2009 and they’re here for up to four months, can vary from $3 million to $90 million each and require anywhere between 100 and 700 people,” said Etherington. “Our organisation is characterised by this kind of entrepreneurial spirit to carry out a wide range of projects. “We are privately owned and in control of our own destiny so have been able to take longer term strategic views. Once we’re committed to a strategy, then we are fully committed. We have a pride and passion in what we do and the ability to really put our money where our mouth is.” Rig decommissioning
Visit us online:
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Able UK Seals blue-chip offshore contracts to replicate onshore success Pioneering innovation Not one to rest on its laurels, Able UK is always looking for ways to improve and develop its offering further, and this has recently led to the acquisition of the Liebherr LHM600SHL crane, the largest mobile harbour crane in Europe. Purchased to meet the company’s specific requirements, the crane is able to lift 208 tonnes and will be used to aid activities in cargo handling and offshore oil and gas rig maintenance. “It’s about having the right kit on site and also about having the
right philosophy behind its use,” Etherington explained. “We have also pioneered the idea of the multi-user facility where our plant is there for the use of all, with every occupants’ capital going that bit further by being able to share expensive equipment.” The new crane will also have a significant bearing on components for the offshore wind sector, to which the company has made a nationally significant move into, signalling the future ambitions of Able UK. “The Secretary of State for
Able UK’s Liebherr LHM600SHL crane
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STATISTICS
Industry: Energy Founded: 1966 Headquarters: Billingham, UK Moving into marine operations transport has recently authorised the development consent order for the Able Marine Energy Park which is a 900-acre development, with 1,300 meters of deep-water quays, and it is a bespoke facility for the burgeoning offshore wind sector,” Etherington said. “It will be the largest in the UK and we’re building a super port which we’ll operate in a similar way to how we operate Seaton. “We know it works well, we know that’s what the offshore requires and the offshore wind sector is very excited about it.”
Key People/Titles: Neil Etherington, Group Development Director Products: Land developments, rig upgrades & maintenance, demolition, offshore decommissioning, waste management Revenue: Not disclosed Employees: Not disclosed Website:
www.ableuk.com Visit us online:
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Decom North Sea 33 Albyn Place Aberdeen AB10 1YL Tel +44 1224 452 173 iottenbreit@decomnorthsea.com www.decomnorthsea.com
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