Decom North Sea News 006 by Mearns & Gill

Issue 6

October 2011

Initial results of the skills research

Courtesy of Gulfstream Services

See the inside story

Forthcoming Events

Member News

Latest Market Projections

Spotlight on New Members

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See page 4

See page 8

See page 14

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Director’s Foreword

ecom North Sea had a very successful week at Offshore Europe in early September in Aberdeen. Before now, decommissioning has not featured on the conference agenda at Europe’s largest energy exhibition and conference, so the offshore decommissioning topical lunch that we organised on Wednesday 7th September was a first step in ensuring that the subject now becomes a firm part of future programmes. This was highlighted with a sell-out attendance of over 250 delegates to hear a combined update from Shell and Wood Group PSN on the Brent Delta decommissioning project. The Shell Brent decommissioning services contract is now one year into its progress.

The exceptionally high interest in our annual conference (organised in partnership with Oil & Gas UK) has also proven that decommissioning is increasingly of interest to many people. This is not really surprising, with the latest market intelligence showing decommissioning expenditure in the UK Continental Shelf forecast to increase to £30-£35 billion between now and 2040. There are huge opportunities and challenges ahead for the industry, many of which will be discussed and debated at the conference. Our conference agenda is set by the industry for the industry and looks set to be a very interesting and stimulating couple of days. We start off with feedback from the outcomes of the 2010 conference and a look at progress of the industry over the last year. This will be followed by a session looking at how the sector works in practice, considering contracting strategies, multi client well campaigns and forthcoming market opportunities. Day 2 will cover some of the environmental challenges in the morning, and then a workshop in the afternoon led by the Industry Technology Facilitator (ITF) which will consider future technology requirements. I look forward very much to catching up with many of our members over these two days.

Brian Nixon | Chief Executive | Decom North Sea

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2 Decom North Sea News October 2011

Forthcoming DNS Events and Exhibitions Decom North Sea Trade Mission to Holland and Belgium, 10th – 14th October The aim of this mission is to explore offshore decommissioning opportunities in the Dutch Continental Shelf, promote Decom North Sea members capabilities to the Dutch market and explore opportunities for collaboration. We will be working with our partner organisations – IRO in Holland and The Carbon Energy Club in Belgium to organise this mission. For more information and to register your interest in participating in this mission contact: shillyear@decomnorthsea.com

Decommissioning Supply Chain Developments Update, Aberdeen:1st November, Edinburgh: 3rd November & London: 10th November Decom North Sea will be hosting this seminar with Maclay Murray Spens LLP and will explore the legal, technical and commercial issues related to decommissioning. This seminar is part of a series of oil and gas focused events being hosted by MMS. For further information or to register for this event, please visit http://www.mms.co.uk/MMSKnowledge/EventSeries/ mms-seminars.aspx

Decom North Sea Members Meeting, Marcliffe Hotel, Aberdeen, 9th November Marathon Oil will share their decommissioning plans for the Brae fields. They will discuss the timescales for these projects, how they plan to engage with the supply chain and any issues they are facing. This is also an excellent opportunity to network with other key players within the decommissioning industry. For more information and to register your interest for this event, contact: shillyear@decomnorthsea.com

Decom North Sea and Nuclear Industry Association Cross-sector workshop, Glasgow, 16th November This event will explore the synergies between the oil & gas and nuclear decommissioning industries and identify any opportunities for learning from the two sectors. For more information and to register your interest for this event, contact: shillyear@decomnorthsea.com

Decom North Sea Networking Event with Subsea UK, Aberdeen, 22nd November This event will focus on the decommissioning opportunities for the subsea industry and will provide an excellent opportunity for members of DNS and Subsea UK to network. More information to follow. To register your interest for this event, contact: shillyear@decomnorthsea.com

Supply Chain Management in Oil & Gas, Holiday Inn, Bloomsbury, London, 28th – 29th November SMi’s forthcoming Oil and Gas Supply Chain Management conference will address challenges, innovation, solutions and lessons learned, as influential players from the oil and gas landscape come together to understand how to generate value, create efficiency and improve productivity. Decom North Sea are presenting at the conference on ‘Decommissioning Supply Chain Development’. For more information and to book your place visit: www.smi-online.co.uk/events/overview.asp?is=5&ref=3756

Salvage and Decommissioning Seminar, London, 6th December This event is being organised in partnership with SUT and will focus on sharing ideas and experiences between the salvage and offshore decommissioning sectors. For more information and to register your interest for this event, contact: shillyear@decomnorthsea.com

Please visit www.decomnorthsea.com for details of future events. October 2011 Decom North Sea News 3

Contracting and Remuneration Models

uring the course of last summer Decom North Sea worked with a group of oil & gas MBA students at The Robert Gordon University to assist their research and analysis of contracting remuneration models for decommissioning projects.

This group identified a range of remuneration styles ranging from lump sum through to cost reimbursable, and their findings were presented at the October 2010 Conference before being discussed with delegates in workshops. This summer has recorded continuing academic interest in decommissioning, with a second group of students moving this work forward. The focus this term has been to consider more equitable models of risk and remuneration and an update of this will feature at this year’s annual conference in October. Decom North Sea’s efforts with contracting strategies is now benefitting from an expert industry support group which has been established with representation from operators, contractors, management consultants, lawyers and cost management specialists. Under their direction it is planned to focus future research and analysis on the various kinds of risk anticipated, which phases of decommissioning they are most likely to be found in, and who is best placed to mitigate them. ■

Latest Market Projections

ecom North Sea has commissioned Prof Alex Kemp at The University of Aberdeen to prepare a special decommissioning report with latest market projections and an analysis of the implications of individual decommissioning projects on major infrastructure hubs. This report will shortly be available on the Potential Number of Fields Decommissioning members only section of the DNS website. $70/bbl and 40p/therm Hurdle : Real some NPV @headlines 10% / Devex @ Prof 10% > 0.3 No.the of Fields However, in advance of full report we can share from Kemp’s 35 research. Potential decommissioning expenditure in the UK Continental Shelf is forecast 30 to increase to £30-£35 billion between now and 2040, although there will actually be 25 fewer assets to be decommissioned during this period as a result of the changes in 20 this year. It follows that the increased decommissioning the taxation regime earlier expenditure is due to cost15increases, and not more fields ceasing production.

In the remainder of this decade, the greatest number of fields to be decommissioned 10 will be in the Southern North Sea, whereas the greatest expenditures will be made in 5 the Northern North Sea. ■ 0

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 Potential Number of Fields Decommissioning Potential Number of Fields Decommissioning $70/bbl and 40p/therm $70/bbl and 40p/thermWoS SNS NNS MF Irish Sea Cns Hurdle : Real NPV @ 10% / Devex @ 10% > 0.3 Hurdle : Real NPV @ 10% / Devex @ 10% > 0.3 No. of Fields 35

30 25 20 15 10 5 0

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042

Graph courtesy: Prof Alex Kemp, The University of Aberdeen WoS

SNS

NNS

Irish Sea

Cns

TETRA Offshore Services Leading the Way to

PROVEN WELL ABANDONMENT & DECOMMISSIONING SOLUTIONS

sales@tetratec.com www.tetratec.com 4 Decom North Sea News October 2011

Restoring the Environment – One Field at a Time

October 2011 Decom North Sea News 5

Skills requirements for the Offshore Decommissioning Industry

ecommissioning an offshore asset is a major project, somewhat akin to a large hook-up. However since large hook-ups have not been common in recent years, the skills involved could have been dissipated. Whilst not fundamentally different from a new-build project, neither is it a straight forward reversal of construction. There is as much engineering involved in decommissioning as in installation and commissioning, but it is generally accepted that to adopt a construction-based approach for decommissioning could lead to increased costs. Some industry professionals believe a salvage approach could offer benefits for decommissioning. Decom North Sea’s industry consultation into the skills requirements for offshore decommissioning confirms that the pre-mobilisation phase is critical and calls for planners with experience of large projects. Similarly important are effective logistics and planning for the movement of personnel, smart procurement and a strong knowledge of supply chain capabilities. It is acknowledged by all observers that there needs to be a clear focus on the ever changing physical environment of the asset as it is decommissioned. Thus a key aspect is not technical, but behavioural, involving situation awareness. The decommissioning workplace is part of an environment which can change regularly. It can have multiple work fronts and simultaneous operations, each of which is manageable individually but together they can present a complicated scenario. Since as-built drawings do not always reflect the actual site conditions a full site survey will almost always be required, and our consultees were agreed that these should be carried out as early as possible. Although the results of our consultation with the industry will not be finalised until October, some of the early observations emerging include:

• Large construction and hook-up skills are believed to be advantageous, but must be able to be adapted to a decommissioning environment. Clarity, objectivity, and excellent enquiry and communication skills are seen as really important. • Knowledge of the labour pool availability and capabilities is also important. • Understanding of the (limited) waste disposal routes available is vital. • Procurement skills with excellent supply chain capability understanding are needed. • Special awareness, safety and emergency response skills are seen as being crucial. • Expert supervision geared towards dynamic environments is considered essential. • Need to encourage flexible approaches at the planning and engineering stages. Once completed the full report into skills requirements for the offshore decommissioning industry will be shared with the Engineering Construction Industry Training Board (ECITB) and OPITO, the Oil & Gas Academy, to assist them in considering what may be needed in the design of decommissioning technician training modules and accreditation standards etc. The full report will also be available on the members only section of www.decomnorthsea.com ■

6 Decom North Sea News October 2011

Decom North Sea Golf Day 2011

he inaugural Decom North Sea golf day was held on a dry but blustery day in August at the Newburgh on Ythan golf club. 9 teams of 3 and 1 team of 4 participated in the Stableford competition which was sponsored by SPEX Services. The winning team with 103 points was SPEX Services B team with Eddie Grant (SPEX Services), Craig Forsyth (DF Communications) and Craig Douglas (Dee Don Plumbing). Second place was the CAPE team with 96 points and third was RBS with 93 points. The individual winner was Craig Douglas from Dee Don Plumbing with 37 points which delighted Barney Mackie from People = Positive who had placed his bet on Craig in the player auction. The longest drive on the 18th hole was won by Tom Leeson from Halliburton and the nearest the pin prizes were won by Frank Moore, Halliburton (2nd), Ben Jamieson, Cape (5th) and Craig Douglas (16th). The wooden spoon was won by Brian Nixon who is still convinced it was a fix! Prizes for the day were kindly donated by Romar International, SPEX Services, Falck Nutec, Proserv Offshore, RBS and Baker Hughes. £160 was raised in the player auction for the chosen charity of the day, Aberdeen & District Fibromyalgia Support Group. ■ The winning team SPEX B Team

Decom North Sea Trade Mission to Holland and Belgium

ollowing the success of the small trade mission to Norway in February this year, Decom North Sea are taking a group of 8 – 10 Decom North Sea members, including Veolia Environmental Services, BMT Cordah, SPEX Services, CUT, Wood Group PSN and AF Decom, on a trade mission to Holland and Belgium, w/c 10th October. The aim of this mission is to explore offshore decommissioning opportunities in the Dutch Continental Shelf, promote Decom North Sea members capabilities to the Dutch market and explore opportunities for collaboration. Meetings have been arranged with Heerema Marine Contractors, SMIT, Allseas, Svitzer and Scaldis so far. Small seminars and speed networking sessions are also being organised in both Amsterdam and Antwerp in partnership with our Dutch partner IRO in Holland and our partner The Carbon Energy Club in Belgium where invitations to these events will be extended to their members. Another trade mission is also being organised to Norway in February 2012 to tie in with the 12th Annual NPF North Sea Decommissioning Conference in Bergen. Any DNS members interested in participating in this trade mission to Norway should contact Sarah Hillyear – shillyear@decomnorthsea.com. It is also advised to book your place and accommodation at the NPF North Sea Decommissioning Conference as soon as possible as space is limited. ■

Trade Mission to Norway in February

Supply Chain Engagement

ne of the key roles of Decom North Sea is to promote the capabilities and expertise of the offshore decommissioning supply chain to the operators and main contractors. One of the ways that this is done is through the supply chain matrix which can be found on www.decomnorthsea.com. This easy to use search engine allows visitors to the site to search for companies with decommissioning capability by a short series of options: firstly to select which phase of decommissioning then to choose the kind of facility or equipment that is to be decommissioned, and then to the specific services required. This then displays a list of companies with these capabilities. If the company listed is a member of Decom North Sea it will have a further hyperlink to three pages of information detailing the company’s expertise and experience in the offshore decommissioning industry. This is an excellent opportunity for the supply chain to promote themselves to the operators and major contractors who we know are using the supply chain matrix to search for companies when

sending out invitations to tender. Members of Decom North Sea are reminded to complete their online profile if they have not already done so as they are missing out on this promotional opportunity. Another opportunity for the supply chain companies to raise their profile is through a new series of events introduced by Decom North Sea called ‘Lunch & Learns’. These events will be run bi-monthly and will either be a group of complimentary supply chain companies promoting their offshore decommissioning capabilities and expertise or they may be focused on a particular topic of interest, i.e. there are lunch & learn sessions lined up in the near future on the legal aspects of decommissioning, decommissioning regulation and finance opportunities. The first of these events took place on Wednesday 14th September and included a presentation from Dr Cormac Booth from SMRU Ltd, the commercial arm of the Sea Mammal Research Unit at the University of St Andrews. Dr Booth spoke about SMRU Ltd’s experience in advising industrial developers on potential impacts of their activities during decommissioning, and the most effective

solutions to these impacts. He also shared with the delegates the progress of the development of SMRU Ltd’s cutting edge passive monitoring technology - PAMBuoy™. The second speaker at the lunch was Roger Esson, Decommissioning Director for RBG Ltd. Roger spoke about RBG’s experience over the past 12 years in UKCS decommissioning projects, including NW Hutton, Maureen and MCPO1. He also spoke about RBG’s acquisition by STORK in May this year and the extensive offering the STORK group can provide for the offshore decommissioning industry. Roger concluded his presentation by discussing the benefits of being a DNS member: “Being a Decom North Sea member has been very beneficial for me and my company. The events are an opportunity for those with an interest in decommissioning to get together, partner up on projects and collectively add value to the supply chain.” Any members of Decom North Sea who would like to participate in a future lunch & learn event should contact Sarah Hillyear on 01224 452170. ■

Delegates at the first ‘Lunch & Learn’ event

October 2011 Decom North Sea News 7

Member News FeSSol

eSSol, a new and innovative solution for the removal and handling of pyrophoric iron deposits which form when steel corrodes in wet, “sour” environments. FeSSol is the result of an extensive Research & Development project carried out at our state of the art laboratory in Aberdeen, following several enquiries.

The main concern about these deposits is that they will react rapidly on exposure to air with release of enough heat to ignite any hydrocarbons present. Washing these with an acid will instantly release large amounts of hydrogen sulphide gas, which is very toxic. FeSSol is designed to give safe and effective cleaning of kit such as heat exchangers as well as in large refineries, etc., and works by simultaneously solubilising the iron and irreversibly trapping the sulphide gas. Unlike older ‘sulphide scavengers’, however, the resultant solution stays liquid and water soluble.

Aubin Completes Successful GLS Field Trials

ubin, a leading independent supplier of specialist chemicals to the energy industry, has successfully completed offshore sea trials for the recently launched Gel Lift System (GLS). GLS, a potentially game-changing new product that could save millions of pounds when installing offshore renewables infrastructure, was tested off the coast of Orkney. The technology uses a low-density gel which is non hazardous and environmentally responsible to provide incompressible buoyancy subsea and can be used to install all types of offshore structures including wind, wave and tidal. Aubin Managing Director Paddy Collins said: “The testing went exceptionally well, the lift was assisted and monitored by divers from Leask Marine who reported the rate of descent and ascent was exceptionally well controlled.” “By accurately controlling the volume of GLS in the lift bag we were able to control the amount of lift generated. This allowed us to make the weight neutrally buoyant so it would float mid water and to reduce the perceived weight to the point that a diver could lift 1050kg using only two fingers.” ■

GLS can be used for lifts from any size, from 20kg to 2000 tonnes to a water depth of 150 metres.

Apex Speciality Solutions are well known as a global supplier of high quality products used in all upstream cleaning scenarios no matter how problematic the job may be. We are pleased to be introducing one of our most innovative products - FeSSol – which, as per our company philosophy, is formulated to ensure the lowest possible impact on the environment. We are currently obtaining a CEFAS template for this product. For further information please contact us: www.apex-chemicals.co.uk Nicola Hodgson, Offshore Business Manager Email: nicola.hodgson@apex-chemicals.co.uk ■

The Marine Turbine assembly, kept afloat by the gel in the tanks, is towed to the installation site.

PDL Win Shell Framework Agreement

ECOM North Sea member company, PDL Solutions (Europe) Limited, have been awarded a framework agreement with Shell UK Ltd to provide advanced Computational Fluid Dynamics (CFD) and Finite Element Analysis (FEA) support to the Shell UK engineering team on the Brent Decommissioning Project. PDL are a leading provider of advanced engineering design and analysis consultancy services to clients operating in predominantly the nuclear, defence and the oil and gas sectors. Based in Hexham, some 20 miles to the west of Newcastle upon Tyne, PDL engineers have, over the past 11 years, supported some of the most technically demanding projects at some of the most notable national and international entities. 8 Decom North Sea News October 2011

PDL managing director, Paul Charlton, says: “we are delighted with the Shell contract award and we look forward to providing complementary high-end engineering support to Shell and their supply chain on the Brent Decommissioning project. There will be some significant engineering challenges ahead as the Brent field moves towards the Cessation of Production (COP) date and beyond on the Brent Decommissioning project, but I’m confident that by applying sound engineering judgement and our state of the art analysis toolsets, we can help Shell meet the regulatory requirements in a safe and cost effective manner.” The initial contract term is 18 months, with an option to extend the term by mutual consent thereafter. ■

JOIN DECOM TODAY! “...Membership of DECOM North Sea has provided PDL Solutions (Europe) Ltd with an invaluable insight into the business opportunities within the emerging North Sea decommissioning market. The DECOM North Sea team have gone out of their way to (a) understand our business model in the first instance, (b) match our engineering capabilities to the needs of the operators and prime contractors and (c) facilitate personal introductions to the key decision makers. Our recent contract award win with Shell on the Brent Decommissioning project could not have been achieved without the direct involvement of the DECOM North Sea team at the front end in making the initial introduction. If offshore decommissioning in the North Sea is a strategic market for your business, membership of DECOM North Sea is a must..” Paul Charlton, Managing Director, PDL Solutions (Europe) Limited. ■

Strength in Diversity

Oilfield Decommissioning With sustainability in mind, John Lawrie has been progressively developing its expertise in the deconstruction, processing, recycling and disposal of a range of redundant subsea materials including: • flexible risers and flowlines

• subsea structures

Head Office

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Greenbank Road , East Tullos Aberdeen AB12 3BQ

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T +44 (0)1224 871844 F +44(0)1224 898053 E info@johnlawrie.com

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Coming Soon: New onshore NORM decontamination and disposal facility

Agreements Bolster Global Expansion for ROMAR International

berdeenshire-based oilfield service company ROMAR International has announced it has entered into agreements with two major companies in Norway and South America as part of its global growth strategy. Through the Norwegian initiative with Stavanger-based PETROPRODUCTS - a subsidiary of Parent company PETROLINK AS - the companies will collaborate to offer an increased service to the offshore drilling and asset decommissioning sectors of the oil and gas market. The South American collaboration between ROMAR and INTERGAS SERVICIOS PETROLEROS based in Bolivia, will involve the companies working together to offer the local drilling industry a range of magnetic separation products to major operators in the region. ROMAR provides magnetic separation products and services to operators and drilling contractors, which are designed to remove metal contaminants from all forms of drilling fluids.

The products deliver increased safety performance for operators by removing large quantities of swarf from fluid systems, without the need for mechanical intervention, whilst also eliminating operators’ exposure to swarf and hazardous chemicals. ROMAR’s patented range of magnetic systems are the only products of their kind currently available to the offshore oil and gas drilling market. George Yule ROMAR Chairman said: “We are really enthusiastic about both of these initiatives as it addresses the opportunities within overseas markets which we consider as significant building blocks in the planned future growth of ROMAR. We are really pleased to be working alongside indigenous companies with such impressive credentials as PETROPRODUCTS and INTERGAS. ROMAR has experienced around 30% year-on-year growth against our 2010 performance - we look forward to expanding our international footprint even further in future.” ■

Photo: ROMAR International Chairman George Yule. October 2011 Decom North Sea News 9

Proserv Expands its Subsea Tooling Portfolio

h e challenging nature of decommissioning oil and gas structures requires a variety of cutting solutions, which are constantly evolving. To remain leaders in this field Proserv are actively improving their capabilities and tooling range through both R &D and investment in new equipment. Our new tooling developments are highly driven by our experience in both the North Sea and internationally over the past 20 years.

Proserv can offer cutting solutions for topside and subsea projects through a variety of methods. • Water abrasive cutting systems • Diamond wire cutting systems • Mechanical cutting saws • Hydraulic shears

Proserv’s diamond wire systems are also very effective on a variety of metals and obscure structures, thus saving time on tooling development, project planning and costs. Project History One of the most challenging projects carried out with the topside diamond wire system recently was the segregation of reinforced concrete legs from the jacket structures TP1 & TCP2 on the Frigg field: with the project team working from inside the leg structure. This involved a series of holes being drilled through the concrete column’s circumference at the designated cut location to allow the diamond wire to be passed through from the inside to the

outside and then back internally again for the wire to then be joined up creating a continuos loop. The cutting system was secured to the inner wall using steel bolts. The complete process was carried out in 12 seperate cut sequences on each separate leg and proved a very safe and cost effective method for the client. • Number of concrete shafts to be cut: 5 (3 on TCP2 and 2 on TP1 platform) • Outer diameter of the shafts: 11,6 and 13,6 m • Wall thickness: 1,1 to 1,4 meters • Obstructions in the concrete; reinforcement, crushing tubes and 35 mm bolts connecting the MSF to the shafts. ■

Diamond wire One cutting solution which has generated a lot of interest recently is the diamond wire system for specialist cutting projects topside. With our range of topside electrical powered systems, Proserv Offshore have carried out diamond wire cutting projects in the North Sea, mainland UK and Norway. The benefit of these systems is that they are practical as they can be easily manouvered / wheeled around the platform or worksite without the need for lifting into site locations.

New Decommissioning Facility in Norway

he two companies - Lutelandet Offshore AS in Fjaler municipality on the Norwegian west coast - and Scanmet AS at Stord on the south west coast of Norway - have signed a letter of intent with the aim to commence cooperation by establishing the activites of the two companies at Lutelandet. The two companies aim to establish a dedicated decommissioning company - that will have the ability to execute onshore demolition of any size of structures including accommodating any kind of vessel - having no sailing or depth limitations - at a new developed site at Lutelandet in western Norway. Scanmet AS is the most experienced demolition operator in the North Sea. The company has been operating since 1996. So far they have recycled more than 150,000 tons of steel at Stord, Norway. Scanmet now wants to relocate these operations to Lutelandet. Scanmet has been awarded the contract for the dismantling of a loading buoy from the Draugen Field by Norske Shell. The dismantling of the Draugen buoy is scheduled to take place during 2012-2013. Scanmet’s entry into Lutelandet provides valuable expertise to the decommissioning operations. They have, among other things, long market experience, a fully developed management for the operations and a highly skilled labour force with long experience within the industry. In addition, they have specialised tools and equipment needed to conduct such activities at Lutelandet. The site at Lutelandet is specially designed for decommissioning operations, in compliance with the latest regulations. And above all, at Lutelandet there is vast space at their disposal. 10 Decom North Sea News October 2011

The two companies will also establish an engineering- and marketing organization for the offshore demolition market. This organization may also be developed into an engineering company, serving other future operations that are planned at Lutelandet. The collaboration aims to concentrate the activities in a company jointly owned by both parties. They also agree to open up for cooperation with other international and local market players in the recently established companies if this can strengthen the concept. In the coming years, a number of large fields and installations in the northern parts of the North Sea are scheduled to be decommissioned, both in the Norwegian and British sectors. For such projects - Lutelandet has a perfect location. Contact persons: Lutelandet Offshore AS: Tor Gjertsen Mobile: +47 934 46 606 Scanmet AS: Gerhard Eide Snr. Mobile: +47 900 21 353 ■

MSIS Strenghtens Decommissioning Capabilities

ndustrial cleaning and environmental waste management specialist, the MSIS Group, has strengthened its decommissioning capabilities by expanding its range of specialist equipment.

The company is introducing a new, larger version of its NORM (Naturally Occurring Radioactive Material) Decontamination Unit – which was launched earlier this year – to its portfolio of innovative technologies.

Double the size of MSIS’ original 20 X 8 ft unit, the latest 40 X 8 ft model, which will be utilised for onshore operations, will enable the company to significantly increase the range of NORM decontamination projects it can undertake. The larger operating space within the unit – which can be used to decontaminate redundant asset components – allows MSIS to, for example, treat longer sections of pipes and flowlines. MSIS is already in dialogue with a major decommissioning operator to design and produce a bespoke unit for the firm’s unique requirements. Graham Holloway, MSIS’ Offshore & International Business Manager, commented: “Since introducing our original NORM Decontamination Unit - which can be operated both on and offshore - we have recognised a significant demand for the equipment, with interest and orders for the unit coming in from as far afield as the United Arab Emirates, as well as from UK-based operators. “The introduction of the new model heralds another exciting period for MSIS, as we look to further capitalise on the opportunities available for our specialist services within the decommissioning sector.”

MSIS’ 20 x 8ft NORM (Naturally Occurring Radioactive Material) Decontamination Unit. The company has now introduced a new, larger version of the equipment to its portfolio of innovative technologies.

For additional information on the MSIS Group please call 01330 830 230 or visit the company’s website www.msisgroup.com ■

Business Manager Announced for New Multi Million Pound Treatment Plant

uvia SITA NORM has appointed a manager for its new Stoneyhill NORM Treatment Facility, near Peterhead. Ewan Hill has been appointed to the position of Business Manager for Nuvia SITA NORM. He is now tasked, not only with managing the new facility, but also overseeing safe operations, ensuring environmental compliance and developing the business as a whole. Ewan is a Chartered Waste Manager, has a Masters Degree in Environmental Studies and over 10 years’ experience in the waste management industry, having worked previously in contaminated soil remediation and as a waste minimisation manager with Glasgow City Council. Ewan also has experience of the oil and gas industry through a position with Denholm Industrial Services. Nuvia SITA NORM is a specialist joint venture company that brings together the nuclear industry experience of Nuvia Limited, one of the UK’s leading radiation protection and radioactive waste experts, with the recycling and waste management capabilities of SITA UK. The company’s new NORM treatment facility at Stoneyhill near Peterhead will clean and recycle equipment from North Sea oil and gas operations affected by naturally occurring radioactive

materials. It will present the industry with the means to comply with new environmental regulations governing the treatment and disposal of NORM waste. NORM is the acronym for Naturally Occurring Radioactive Material and is a term used to describe low levels of radioactivity that exist naturally in the geological environment. It is found in a variety of bulk commodities, process wastes and commercial items, such as sands, china clays and soils, granite, coal and groundwater. It is also a by-product of the oil and gas industry and develops as a mineral scale on the inside of pipes and valves.

number of water jetting and descaling operatives at the site and invites applications in writing to Ewan Hill, Business Manager, Nuvia SITA NORM Treatment Facility, Stoneyhill Resource Recovery Park, Longhaven, Peterhead, AB42 0PR. ■

NORM affected equipment delivered to Stoneyhill will be cleaned inside a custom built containment with ultra high powered water jets to safely remove mineral scale. Once de-scaled, metals and pipework will either be reused or recycled and the treated waste consigned to landfill under authorisation at SITA UK’s adjoining Stoneyhill site. Commenting on his appointment, Ewan said, “With all major works on the construction of the facility now complete, commissioning is well underway and I’m looking forward to firmly establishing the business as an essential part of the supply chain for the region’s oil and gas operators.” The company has also appointed a supervisor for the facility and is now seeking to appoint a

Nuvia SITA NORM’s newly appointed Business Manager, Ewan Hill, outside the NORM descaling plant at Stoneyhill. October 2011 Decom North Sea News 11

CNRI Turns to BMT for Decommissioning Support

MT Cordah, a leading marine environmental consultancy and a subsidiary of BMT Group Ltd, has been awarded a major contract by Canadian Natural Resources International (CNRI). This project will see BMT provide vital support and guidance for the environmental aspects during two of CNRI’s decommissioning projects, both of which are currently in the planning and consenting phase. CNRI’s Murchison and Ninian Northern fields located in the northern North Sea have both been in operation since the early 1980’s. To ensure compliance with the requirements of key legislation and regulations set out by the UK Department of Energy and Climate Change (DECC), CNRI turned to BMT to draw upon its expertise and knowledge of decommissioning projects which includes Shelley, North West Hutton and Maureen Alpha and dates back to 1995. As part of its support, BMT will develop the necessary documentation to inform project decisions, assess and manage environmental issues and ultimately support CNRI’s decommissioning programmes submission to DECC for approval. This includes: register of environmental permits, licences and consents; decommissioning waste management strategy; assessment of energy use and gaseous emissions; drill cuttings pile management assessment; comparative assessment of pipeline and jacket decommissioning options; EIA (Environmental Impact Assessment) scoping report and subsequent Environmental Statement. David Sell, Managing Director of BMT Cordah, comments: “The North Sea 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, indicating that decommissioning will become an increasingly significant issue in the region over the next decade. With strong experience in offshore operations, impact assessment and consenting procedures, our team of decommissioning experts are ideally placed to inform and manage the project for organisations such as CNRI.” ■ Murchison field, courtesy of CNRI

The Cost Challenge for North Sea Decommissioning

he North Sea decommissioning industry may be in its infancy but with an estimated £30bn of work requiring execution over the next 30 years, it could soon rival oil exploration in terms of its size and overall impact on the UK economy. However, with decommissioning essentially still a total cost burden for operators, the need for projects to be managed and executed as cost-efficiently as possible remains paramount. Arguably the most important step towards reducing costs and risk on a decommissioning project is getting the right contracting framework in place that makes financial sense to both operators and contractors. Profits and overheads should be decoupled from the expended effort allowing the operator to maximize the efforts from the contractor. Different levels of outsourcing and alternatives to the ‘normal’ reimbursable contracting strategy should also be pursued as this can help to share the level of risk more evenly between both parties and better incentivise the supply chain to deliver. Given that oil and gas platforms were not designed to be decommissioned, quantitative and qualitative risk analysis of both cost estimates and project schedules should be run frequently throughout the duration of the project to provide both the contractor and operator with on-going assurance. Failure to fully appreciate inherent risk could see project costs increase by millions of pounds. Effective project controls also has a key role to play in ensuring costs don’t spiral as the lack of historic documentation on the size, age and condition of the asset also mean that project scope is subject to huge variation compared with initial estimates. Similarly, a more strategic approach to asset maintenance can help to reduce cost outlay - as the asset moves towards decommissioning, operators should prioritise maintenance critical work and eliminate all non-essential maintenance tasks. In summary, decommissioning is not simply a case of de-construction - it requires new contracting strategies, intelligent asset management solutions and a greater understanding of all of the associated risks. If the North Sea region can get this right the UK can position itself at the very forefront of an exciting global growth market. Mark A MacArthur, Decommissioning Service Leader, EC Harris Aberdeen. ■ October 2011 Decom North Sea News 13

Idle Iron

n September 15th 2010 the US Department of the Interior (BOEMRE) issued guidelines to US GoM offshore oil and gas lease holders and operators on the Decommissioning of Wells and Platforms.

This notice took effect in October 2010 and will remain in force until October 2013. The Notice to Lessees and Operators and Pipeline Right-of-way Holders (NTL) supersedes the earlier Structure Removal Operations guidelines, and is established to: ‘’ensure that idle infrastructure on active leases is decommissioned in a timely manner, and provide(s) clarification, description, and interpretation of many other issues regarding decommissioning that have arisen’. In short, this means the removal of nonoperational platforms, wells and pipelines within a fixed time-line. This is now referred to as Idle Iron. Previously - structures and wells were to be removed within 1 year after the lease terminates, and the lessee and/or operator had to permanently plug and abandon all wells, remove all structures, and clear and verify the site. From October 2010, the changes now call for a well or structure which stops production for 5 years or more, permanently or temporarily abandon all wells, remove the structure(s), clear the site and verify around each site. The aims of the Idle Iron policy are to lead to a significantly cleaner GoM, reduce hurricane exposure and destruction, reduce liability and insurance costs, increase work force utilization in the aftermath of the Macondo oil spill and the subsequent deepwater moratorium. It also aims to cut decommissioning costs by structured planning rather than enforcing

removals of infrastructure items post- storm damage. The Infield Idle Iron Decommissioning Package With such a huge infrastructure, the US GoM (and indeed other global regions) has an enormous list of possible structures and wells which will fall within the timeframes of the new legislation. It is the aim of the Infield Idle Iron Decommissioning Package to chart the locations and positions of every offshore fixed and floating production platform, subsea well and related pipelines within the operational fields, complete with full background text on each platform, well and pipeline - and to present the data in a user-friendly on-line GIS mapping and data package. The development of this GoM system follows the successful release of the Infield North Sea Decommissioning Package, which was already sold and supplied to Decom North Sea in Aberdeen. By using a text based data package, which is front ended with a mapping interface, it has been possible to time-line all the features shown in the mapping by year of proposed removal. Infield views this to be the first commercially available system to present this. Pricing Costs for set up and supply will be quoted on a client by client basis, subject to the exact set up and supply requirements. For further information, please contact: Steve Adams, International Sales Manager Infield Systems Ltd Suite 502, 1 Alie Street, London E18DE Tel: 0207 423 5010 Email: steve.adams@infield.com ■

Oceaneering NCA Successfully Completes Their First Joint Projects

ollowing the acquisition and amalgamation of Norse Cutting and Abandonment (NCA) by Oceaneering, the new Oceaneering/NCA UK decommissioning team successfully completed their first combined projects during July/August 2011.

The first project required the team to plan and execute a rig based conductor recovery on the Tullow Cameron well. Following several abortive mechanical cutting attempts, Oceaneering/NCA mobilized their innovative abrasive water jet cutting technology and successfully severed the conductor at 10 feet below the mudline at the first attempt. The second project required Oceaneering/NCA to undertake an unusual decommissioning technology transfer onto a highly sensitive marine archaeological project being carried out to the wreck of the RMS Lusitania. Again, using their innovative and environmentally friendly, abrasive water jet cutting technology, Oceaneering/NCA were required to cut profiles in the Lusitania’s hull to provide evidence to the marine archaeologists of the hulls structural integrity. This unusual scope of work was carried out during an extensive archaeological survey of the wreck that hoped to cast some light on the darker secrets of the RMS Lusitania story. The offshore operation was recorded by a film crew working on a Discovery Channel program of the Lusitania story. For further information contact: Paul Yeats, Eastern Hemisphere Manager of Oceaneering/ NCA pyeats@oceaneering.com ■

14 Decom North Sea News October 2011

Spotlight on New Members StrategicFit

trategicFit provides Decision Analysis, facilitation and credible expert challenge to enable upstream oil and gas companies efficiently to make good quality End of Field Life (EOFL) choices. For very mature assets, decision making is highly complex, requiring better integration across functions whilst simultaneously being supported by fewer resources. Effective decision making is critical for capturing opportunities in the rapidly narrowing window that they are available for. Our clients ask us to create overall EOFL strategies that address choices such as: should we divest? Should we renew? If neither, how do we balance remaining development activity with efficient decommissioning? Insight is needed into which production investments to make, which tie-backs to host, cessation of production (CoP) timing for the various installations, initiation of plug and abandonment (P&A) activities, and Flotel requirements. Operating the EOFL stage requires making a plan that is robust and adaptable to ongoing change. Some typical failure-modes we see in EOFL decision making include: • Treating EOFL as a collection of separate projects. Various critical perspectives (not just about decommissioning, but also P&A, EOFL production optimisation, area planning, finance) need to be thought through in a joined-up way. • Exclusive cost focus. In the absence of revenues there is tendency to focus solely on costs. This blinds organisations to opportunities to create value. • Wrong scope. Clarity on which decisions to make, when; recognising which should be firmed up and which should be kept flexible very much depends on remaining reserves, cost base, oil price, and many other factors to provide the correct overview and focus. Contact Selina Ashdown +44 7812 054 415 sashdown@strategicfit.co.uk www.strategicfit.co.uk for further discussion. ■

Gulfstream Services Launches Wireless Product to UK Market

ulfstream Services International (Gulfstream), provider of cutting edge equipment to the international oil and gas industry, launched a world-first fully-automated wireless cement head to the UK market at Offshore Europe. The company’s Torque Through Swivel & Ball/ Dart Pumping Head is a field proven wireless cement head system, which significantly increases safety for operators by removing the need for man-riding. Gulfstream Services International UK (Gulfstream UK) was set up in January 2010 in Aberdeen to serve the international oil and gas industry and growing demand from customers in UK, Norway, Middle East, Asia and Africa.

Gulfstream UK’s turnover has grown to £2million due to its three product lines: Remote Actuated Cement Heads, Decommissioning Hydraulic Shears and High Pressure Flow Iron. The Gulfstream hydraulic shear division has accomplished over 7,000 cuts worldwide including carrying out multiple jobs in the North Sea. It is expected that there will be further growth within the decommissioning area as activity in the market continues to ramp up. The High Pressure Flow Iron has been Gulfstream’s core business since the company began and it continues to be a major part of the business. Bryan Duplantis, Gulfstream UK regional manager, said:

“At Gulfstream we put safety, quality and environmental issues at the forefront of our daily activities. The Torque Through Swivel & Ball/Dart Pumping Head was manufactured with safety and reliability being the most important aspects of the design process. This is the only cement head of its kind to fully eliminate the need for workers to ever have to carry out the potentially hazardous task of man-riding.” ■

A Novel Test for Assessment of Environmental Toxicity and Process Efficiacy in the Oil Industry

ARA and LumiMARA are multispecies microbial bioassays which provide a rapid and cost effective analysis of the potential environmental impact of test samples. These bioassays investigate how the microorganisms in the test react in the presence of the sample to give a determination of the level of sample toxicity. RESPONSE QUANTIFIED

TEST DURATION

MARA Microbial growth

TEST

TEST MEASURE

Amount of growth inhibition in presence of test sample

18 hours

LumiMARA Natural luminescence

Reduction of light output in presence of test sample

15 - 30 mins

Microorganisms included in the MARA and LumiMARA bioassays have been carefully selected to cover a wide genetic diversity and to provide sensitivities to a wide range of chemicals, metals and pollutants. The only multispecies bioassays currently available where unique ‘fingerprints’ are obtained for each test sample, making MARA tests ideal tools for regular monitoring, allowing comparisons to be made between samples, locations, time points and response to chemical treatments.

Introducing Mott MacDonald North Sea Decommissioning

ott MacDonald is a global management, engineering and development consultancy with over 14,000 staff working in 140 countries across all sectors from transport, energy, buildings, water and the environment to health and education, industry and communications. We have key North Sea decommissioning office locations in Scotland (Including Scottish Islands), Norway, Northern England and East Anglia.

Mott MacDonald is able to demonstrate a proven track record of over 25 years in the nuclear sector. Our services include cost consultancy, project management, quantity surveying, value engineering and procurement strategy. Mott MacDonald fully appreciates the drivers and legislative requirements for North Sea Decommissioning are similar to those faced by the nuclear industry as well as the paramount need for safety first. We are confident that our unique set of nuclear skills will be easily transferable and beneficial to North Sea Decommissioning. Our oil, gas and petrochemicals division has over 40 years’ experience worldwide ensuring we take care of every aspect of a project including strategic planning, process facilities, terminals and storage, refineries, pipelines, onshore and offshore facilities and risk, environment and safety. Whilst our PCM division have been involved in North Sea oil exploration projects, modifications turnarounds, refinery designing production facilities, pipelines and storage and export terminals since the early 1960’s. We adopt a holistic approach to project development using our complete spectrum of skills covering all stages of the development cycle - incorporating all aspects of project and programme management, lean management, supply chain strategy, management consultancy plus construction economics. Our fundamental aim is to achieve the optimum balance between time, cost, quality and function. For further information on what we do please contact Sion Edwards, Project Director: 01244 346261 (sion. edwards@franklinandrews.com) or Craig Wade, Project Manager: 07702 635075 (craig.wade@ franklinandrews.com). ■

The test has been trialled in the recent DECC coordinated study investigating methodologies for a risk based approach to produced water management. Applications also include biocide studies, process optimisation and monitoring of discharges. The tests have been developed in Aberdeen by NCIMB Ltd, a respected supplier of microbiological, chemical and environmental services and products. For decommissioning we are able to test microbial corrosion, NORM, drill cuttings and fuel. NCIMB maintains the UK’s reference collection of Industrial, Marine and Food bacteria and is keen to investigate novel applications of its strains in the decommissioning sector. For further information, please email enquiries@NCIMB.com, or look at our website www.ncimb.com ■

INCREASING TOXICITY October 2011 Decom North Sea News 15

Member Listing Full membership of Decom North Sea is open to any commercial organisation involved with decommissioning. Associate membership is open to non-commercial organisations and individuals who wish to be kept informed of Decom North Sea activity and attend networking events and conferences. For further information, visit www.decomnorthsea.com Members of Decom North Sea – as at 16th September 2011 • 60 North Recycling Ltd • Abandonment & Cutting Energy Services Ltd (ACES) • Aberdeenshire Council • Accenture • Advanced Underwater Surveys Ltd (adus) • AF Decom Offshore AS • AGR Subsea Ltd • Air Products • AKD Engineering Ltd • Aker Qserv Ltd • Aker Solutions • AMEC • APEX Speciality Solutions Ltd • Applied Drilling Technology International • Aquatic Engineering & Construction • Arnlea Systems Limited • ASCO UK Ltd • Asset Development & Improvement Ltd (ADIL) • Atlas Interactive Limited • Aubin Ltd • Avanteq Ltd • Babcock Marine Rosyth • Baker Hughes • Balance Point Control B.V • BIS Salamis (M&I) Ltd • BMT Cordah Ltd • BP • Brimmond Group • Cape Industrial Services Ltd • Champion Technologies • Claxton • CNR International (UK) Ltd • Codaoctopus Products Ltd • Contitech Beattie Ltd • Cortez Subsea Ltd • CSL • Cutting Underwater Technologies Ltd • D3 Consulting • Derrick Services (UK) Ltd • DNV • Douglas Westwood • Dutton International Limited • E.M.W Consultancy Ltd • EAP ASSOCIATES LIMITED • EC Harris • Engineering Resource Solutions Group • Ethan Consultancy Ltd • Evolve Training • Expro North Sea Ltd • Falck Nutec • Genesis GmbH • Geoprober Drilling • GL Noble Denton

• GP Decom Limited • Grup Servicii Petroliere • Gulfstream Services International UK Ltd • Halliburton • Hawk Enviro Ltd • Heavy Decom International • Heerema Marine Contractors • Hertel (UK) Ltd • Hess Ltd • Hilti • Infield Systems Limited • Interact Activity Management • J. Bryan (Victoria) Ltd • JEE Ltd • John Lawrie (Aberdeen) Ltd • KDC • Keltbray Group Holdings Ltd • Kishorn Port Limited • Ledingham Chalmers • Lerwick Port Authority • Lloyd’s Register EMEA • M&E Global Resources • Maclay Murray & Spens • Maersk Oil UK Ltd • Mammoet Salvage BV • Marathon Oil U.K. LLC. • Marex Marine & Safety Services • McDermott Marine Construction Ltd • Mott MacDonald • MSIS Group • Mwaves Ltd • NCIMB Ltd • Norisol • Norse Cutting & Abandonment Ltd • North West Trading Co Ltd • Nuvia Sita NORM Ltd • Oceaneering International • Offshore Installation Services Ltd (OIS) • Oil States MCS Ltd • Oilmac.com • Optimus Projects • Pangeo Subsea Scotland Ltd • PDL Solutions (Europe) Ltd • Pegasus International (UK) Ltd • people = positive • Perenco UK Ltd • Peterhead Decommissioning Limited • Peterson SBS • Petrofac • Port Services Group • Premier Oil Plc • Project Development International (Pdi) Ltd • Project, Time & Cost International Ltd • Proserv UK Ltd • Quickflange UK LTD

• RAM Tubulars Scotland Ltd • RBG Ltd • Red Stone Drilling Ltd • Romar International Ltd • Rotech Subsea • Royal Bank of Scotland • RPS HSED • Sabre Safety Ltd • Scanmet A.S • Scanmudring • Scopus Engineering Ltd • Scotsafe Testing Ltd • Seajacks UK Ltd • Seal-Tite UK LLC • SFF Services Limited • Shell UK Limited • Shepherd & Wedderburn • Silverdot Ltd • Simmons & Company International • Siskin Asset Management Ltd • SMD Robotics Ltd • Smit Marine Projects B.V. • SMRU Ltd • Spartan Solutions Ltd • SPEX Services Ltd • Squibb Group Ltd • Strategic Fit • Subsea Asset Location Technologies Ltd (SALT) • Subsea Protection Systems Limited • Subspection Ltd • Superior - Wild Well Energy Services Ltd • Talisman Energy (UK) Limited • Technical Lifting Solutions • Tepa Oil & Gas BV • TETRA Technologies Ltd • Thinktank Maths Ltd • Titan Salvage c/o Titan Maritime (UK) Ltd • Tracerco Ltd • URS Corporation • Valuta Limited • Veolia Environmental Services • Westlord Associates LTD. • Wikborg Rein LLP • Wood Group PSN Partners • Caithness Chamber of Commerce • Carbon Energy Club • Danish Marine and Offshore Group • East of England Energy Group (EEEGR) • IRO • NOF Energy • NSIG • Scottish Renewables

Decom North Sea is jointly funded by Scottish Enterprise www.scottish-enterprise.com, Highlands & Islands Enterprise www.hie.co.uk and the Department for Energy & Climate Change (DECC) www.decc.gov.uk for the first two years of operation.

Contact Decom North Sea, 33 Albyn Place, Aberdeen AB10 1YL, Scotland UK Tel: +44 1224 452170 email: shillyear@decomnorthsea.com www.decomnorthsea.com