Decom news 14

Issue 14 | October 2013

DECOM NEWS In this issue • Decommissioning Supply Chain Map • Re use Workgroup • Removal of the Brent Platforms • Member News • The Value of Working Together • Events update

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DIRECTORS FOREWORD

As this edition of the newsletter will be published in time for the Annual General Meeting (AGM) I thought it would be useful to reflect on what we have achieved over the past year.

Brian Nixon Chief Executive Decom North Sea

We now have 228 members from across all sectors of the supply chain. Although the majority of new members join following one-to-one meetings with us it is also encouraging to see companies joining following recommendations from current members, following participation at some of our events and through learning about us via other marketing streams.

We have continued to increase our efforts over the past year to offer our members further ways to promote themselves via our regular lunch & learns, the new style newsletters and via the website on the supply chain matrix and case study pages. Interestingly our website hits have increased by 40% over the past 8 months compared to the whole of last year. We also held the first of our new flagship events, Decom Offshore, in March which had a particular focus on encouraging introductions and networking between our members as well as raising awareness of some of the key challenges the industry is currently facing.

Over the past year we have organised 6 learning journeys to allow members to learn about opportunities in other sectors of the North Sea and explore opportunities for collaboration. It is important to emphasise that we are a pan-North Sea association and welcome members from all countries around the North Sea and we do this by holding various events in key locations such as the planned decommissioning seminar in Amsterdam in October.

We continue to consult with our members on our strategic direction to ensure we are meeting their needs and expectations. Our board of directors refreshed our strategy at the end of 2012 and in March we tested this with a group of our members at a full day workshop. We have also recently sent out a list of potential projects/ initiatives which have been identified at past events and asked our members to prioritise these. We will announce which projects we plan to take forward over the next year at the Offshore Decommissioning Conference.

We hope that along with facilitating introductions and providing individual advice along with the various initiatives described we are offering value to our members, but we always welcome thoughts and suggestions of other things we can offer or improve on.

Recruiting Jennifer Mann, our new Marketing and Events Manager last month means we will be able to increase the number of events and other promotional opportunities we can offer our members and one of Jennifer’s first tasks will be to assist with the development of a new communications strategy. She will also be looking to enhance our website and make it more interactive and user-friendly.

We look forward to catching up with as many of our members as possible at our annual conference.

Brian Nixon

In this issue pg 4 pg 7 pg 8 pg 10-21

Supply Chain Map Re Use Workgroup Removal of Brent Platforms Member News

Design & Production

pg 22 pg 24 pg 26 pg 27

Member Point of View Member Point of View Events Update Decom Members

PR & Copywriting

www.decomnorthsea.com 3

DECOM NORTH SEA

Decommissioning Supply Chain Map Decom North Sea has recently published a report which maps the decommissioning supply chain in the uKCS and identifies current strengths and weaknesses. The report was produced in partnership with Scottish Enterprise and the research was undertaken by Accenture.

The latest estimate of future spending on decommissioning in the uK Continental Shelf (uKCS) is approximately £35billion by 2040.

To date, fewer than 60 structures have been either decommissioned or are in the process of being decommissioned.

High oil and gas prices, improved recovery technologies and fiscal uncertainty has seen the deferral of decommissioning projects, making the uK Continental Shelf’s decommissioning sector somewhat embryonic.

However, installations will at some point reach the end of their economic lives and with tax relief deeds recently introduced in the uK sector, allowing greater clarity on tax relief for operators when making decommissioning decisions, a maturing of the uK sector is expected by the industry.

The research, outlined in the report, Decommissioning in the uKCS, suggests there is currently an average gap of 35% between actual and desired capability across the supply chain.

Areas showing a greater deviation between supplier capability and industry-desired capability were found to be well abandonment

(see next page), infrastructure removal and continuing liability—ongoing monitoring activities required to ensure a decommissioned field is safe and compliant to regulations.

Areas with the least deviation were cleaning and decommissioning (the removal of hydrocarbons and hazardous materials from infrastructure) and disconnection and disposal (cutting and separating elements of an asset in preparation for its removal and transfer to shore and options once onshore).

Others areas where capability is likely to be particularly stretched are highlighted as access to engineering staff, drilling rigs for well plugging and abandonment, and vessels, including heavy lift vessels.

“A major cause for concern is the demand on people resources,” says Brian Nixon, Chief Executive of DNS. “The North Sea supply chain is welcoming huge new development projects, such as Clair Ridge and Mariner, as well as major investments in offshore renewables, sustained levels of operational expenditure and opportunities in other countries, such as Norway, which are facing similar pressures.

“”

Against this backdrop, decommissioning must be regarded as an attractive opportunity if we are going to build the capability, capacity and efficiency required for this major program of activity.

Brian Nixon Chief Executive Decom North Sea “Against this backdrop, decommissioning must be regarded as an attractive opportunity if we are going to build the capability, capacity and efficiency required for this major program of activity.”

Nixon suggests better training and transferal of skills and capabilities from other sectors, such as nuclear decommissioning, the military and marine and salvage industries.

He also suggests collaboration across different skills pools, to create catalysts for innovation, and for suppliers to share techniques, processes and learnings.

Encouraging innovation and improving interface management would also help improve operators’ confidence in their decommissioning projects, he says.

Among its recommendations, the report suggests bundling different services and forming alliances between niche suppliers could help to share risks and reduce costs, through synergies in areas such as project management and logistics and HSSE management.

uKCS Decommissioning—the next five years It is estimated that the total cost of uKCS decommissioning in the next five years will be about £4.5billion, focusing on 40 platforms and their associated wells, pipelines and subsea structures, across 80 fields.

Latest estimates for the same period show that total decommissioning costs in the more mature Gulf of Mexico will amount to about £3billion—£1.5billion less than in the uKCS. Decommissioning spend across the uKCS will vary by region, with the Northern North Sea and Central North Sea having considerably

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higher costs per installation [platform] than the Southern North Sea. This is due to factors such as heavier structures, deeper water, being further from shore, and more hostile weather conditions. With operators often undertaking their first decommissioning project, different strategies and contracting approaches are likely to emerge, which will also affect costs from one decommissioning project to the next, according to the Decommissioning in the uKCS report.

Costs can also vary across different phases of decommissioning, with the well abandonment phase forecast to account for more than 40% of total costs, while the suspension cold phase (the bridge between an asset being hydrocarbon-free and disconnected and the commencement of removal activities) is forecast at less than 1%.

DECOM NORTH SEA

Decommissioning in the uKCS extract: focus on well abandonment There are around 11,500 uKCS exploration, appraisal, suspended and production wells all requiring abandonment (Oil & Gas uK DEAL).

Some wells, of up to 30 years old, have yet to be abandoned and there are often structural integrity issues and other complexities, which can cause timelines to stretch and costs to escalate.

This is reflected in the Oil & Gas uK figures which forecast well abandonment to be the most expensive phase in the decommissioning lifecycle over the next five years, amounting to 44% of total decommissioning spend.

The major risks for well abandonment are poor rig and well condition, poor well access and integrity and the availability of rigs and vessels including LWIVs (light well intervention vessel).

The strengths in the sector were found to include the presence of global players in the region, with knowledge and expertise and a culture of improvement among suppliers. Waste and scale treatment had the highest capability.

Weaknesses include resourcing issues, including a struggle to attract personnel to what is seen as an unglamorous sector, and an underestimation of the complexity of work needed. Rig upgrades work was the weakest supply activity.

With many wells having been suspended decades ago, their current condition is often poor, without the operators knowing. In fact, operators have stated recently that one in five wells requiring abandonment is a “train wreck’’, leading to an approximate doubling of the average forecast time to the average actual time required to abandon a well. The Society of Petroleum Engineers reported recently that about 34% of wells in the uKCS have structural integrity issues.

A lack of regular integrity checks, as well as old and lost documentation, add to the issue, increasing timeframes and costs during abandonment. There are also bottlenecks in available capacity of equipment, such as rigs, vessels and cranes.

This phase likely presents the greatest test of all the phases of decommissioning to the supply chain, given the size and complexity of the challenges that lie ahead.

However, with strengths in the well servicing

market, current capabilities could be transferred and tailored to suit abandonment needs. More knowledge sharing, better integrated planning and a focus on resourcing will probably be key to the success of the abandonment supply market.

Recommendations include: • A need for earlier planning and execution, which will reduce complexity and risk and improve performance and cost containment • Integrated planning—operators to suppliers and suppliers to suppliers—allowing for greater visibility, improved sequencing and better opportunities for collaboration.

• A push to broadcast the challenge and complexity of the task ahead, which would stimulate operators to think more about their plans and investment, the government to consider support and regulatory revision and suppliers to further expand capability • A coordinated drive for increased training and recruitment in the abandonment area, with a focus on transferring skills from similar sectors • Integration with other phases during decommissioning, to allow suppliers and operators to better plan and sequence activities as well as creating synergies.

Integrated Decommissioning Expertise Petrofac – your decommissioning partner We aim to support our customers across the entire life cycle of their oil and gas assets, so we’ve made decommissioning a cornerstone of our strategy.

We’ve built a dedicated project management and engineering team in Aberdeen with experience of major projects including Brent Delta and North West Hutton – supported by complementary disciplines from across the Petrofac Group.

From concept to execution, both on and offshore – we will support you at every stage of your asset’s decommissioning.

To find out more about our integrated capabilities contact us at decommissioning@petrofac.com Project Management

Operations

Heavy Lift

Engineering

Well Engineering

Life Extension

Front End Studies and Conceptual Design

Subsea Engineering

Innovative Contract Models

Training

www.decomnorthsea.com 5

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Feasibility and concept studies FEED and detailed design activities Cost estimating and planning Engineering down and cleaning Removal and recycling or disposal of materials and equipment Management of hazardous material

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Training Course

Decommissioning: From Planning to Execution Decom North Sea in partnership with Decomareus Ltd have launched a new training course focused on Offshore Decommissioning. The overall objective is to inform participants of the background, scope and cover some of the key issues associated within the decommissioning sector over a two day period: • Overview • Cost • Legislation & Approvals • Safety Aspects

• Stakeholder Engagements • Preparation & Operating Interface • Wells P&A Overview • Cleaning & Hook Down

• Subsea & Pipelines • Removal & Lift • Onshore Dismantling • Ongoing Liability

Case study examples and lessons learned from previous projects will be used throughout.

This course is aimed at both Members and Non-Members of Decom North Sea who want to learn more about offshore decommissioning.

To book or for more information about our Training Course’s please visit our website www.decomnorthsea.com/events.cfm or contact Jennifer Mann on Jmann@decomnorthsea.com

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DECOM NORTH SEA

Re-Use Workgroup The waste hierarchy is a classification of options in order of their environmental impact. In simplified form this is often referred to as to as Reduce- Re-use- Recycle.

Within the oil and gas decommissioning sector waste minimisation plans often focus on recycling opportunities but the opportunities for re-use are not always explored fully.

Recognising the opportunities around re-use, Decom North Sea formed a re-use Workgroup in the latter part of 2012.

The role of the workgroup is quite simply to promote and stimulate the re-use of equipment from the North Sea oil and gas industry. The workgroup has focussed activity on identifying the barriers to re-use and promoting benefit.

Apart from the obvious benefits related to the environment and sustainability there are real financial benefits that can be realised across the industry. In addition there are reputational benefits for the industry and in some cases technical benefits from reduced lead times for critical equipment.

To support and encourage re-use within the decommissioning sector the Workgroup is taking forward a number of linked project activities.

• Preparing Guidelines for Re-Use Current DECC guidance asks companies engaged in oil and gas decommissioning to consider options for re-use but contains no explicit directive regarding re-use. The industry would not wish to see defined targets for re-use being imposed by government but an adjunct to current DECC guidance could encourage more companies to progress towards re-use. It is envisaged that as an initial stage the supplementary guidance would address some of the key concerns regarding re-use and provide a practical guide that would be sector specific to the oil and gas decommissioning sector.

• Case studies As a supplement to the guidelines the workgroup is preparing a number of case studies to encourage and promote good practice in terms of re-use. Case studies will highlight achievements within the sector and showcase capabilities of member companies for marketing purposes.

• Valve Re-Use Joint Industry Project This Pilot programme (sponsored by industry and DECC) is designed to investigate the practical approach to re-use of equipment during the decommissioning process.

The initial view of the workgroup was that valves would be suitable equipment for this pilot study. The planned approach was to take inventory of valves from a number of operating companies and make that equipment available to a company or companies who would refurbish and re-certify the equipment prior to making it available for re-use either within the oil and gas sector or within another industry. The re-use of equipment is common practice in other provinces particularly in the Gulf of Mexico.

The original approach has been delayed for a variety of reasons, but has identified a number of practical difficulties in the original approach and the project is currently being re-shaped to address these difficulties. The availability of original certification for equipment is a major issue in enabling a clear route to re-use.

Re-Use Event A re-use event for Decom North Sea member companies is planned for early next year. The event will allow participants to hear from companies who have had benefitted from a

planned approach to re-use within the oil and gas industry and within other sectors. The event will also allow companies to give views on the planned re-use guidelines.

Partnership with other organisations The workgroup has had discussion with Zero Waste Scotland. This is a programme managed

by Waste & Resources Action Programme (WRAP) on behalf of the Scottish Government which helps individuals, businesses and communities to reduce waste recycle more and use resources sustainably. Zero Waste has agreed partnerships with other industry sectors and has indicated a willingness to work with and support the work of Decom North Sea particularly on re-use. ZWS has indicated that a willingness to provide advisory and financial support to the activities of the re-use workgroup including the guidelines, case studies and re-use event mentioned above.

Current membership of the Re-Use Workgroup is as follows: • Andrew Sneddon - URS • Callum Falconer - Marathon Oil • Ray Grant - John Lawrie Group • Bas Pauwels - Stork Technical Services • Elizabeth Wilson - Tinne Consultants Ltd • Jim Rae - D-Comms (Scotland)Ltd For more information about the activities of the Re-use workgroup or to get more involved contact Jim Davis: jdavis@decomnorthsea.com

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Issue 13

DECO M NE WS In this

| Aug ust 201 3

MEM

BER NEW S

issue

• Stan dard Program Decom me Tem mission • DNS ing plat Forw ard Stra e • Foc us tegy • Mem on Finance bers New • Dec om Offs s • Upd hore ate Manage on NOR ment M waste

Printed copies of Decom News are distributed to all Decom North Sea members Copies distributed at major UK and International exhibitions and conferences Electronic copies sent to a growing database of over 1000 key industry contacts with an interest in decommissioning Available to over 32,500 online visitors each year at www.decomnorthsea.com

For more information on rates and availability email: advertising@decomnorthsea.com

www .deco

mnor

thsea

.com

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FEATURE ARTICLE

Contract for the Removal of the Brent Platforms On 1st August 2013, Allseas was awarded the contract for the removal of the Brent platforms by Shell. This was a great step for “Pieter Schelte”, the single-lift platform installation / decommissioning vessel which is presently being built in South Korea.

The contract is for the three platforms Brent A, B and D, and includes an option for Brent D. The inclusion of Brent D is dependent on the satisfactory conclusion of the front-end engineering study by Allseas this year.

The project includes the removal of four large topsides and one jacket. Three of the topsides have to be removed from gravitybased structures.

The platform topsides range in weight from 16,000 to 30,000 tonnes.

The Brent field is located on the uK Continental Shelf in 140 m water depth.

The removal of the four platforms is in a time span ranging from 2015 to 2021, where primarily the cessation of production and the plugging of wells determines the schedule.

As the engagement of “Pieter Schelte” in single-lifting is relatively short, there is

Positioning together of the starboard hull and the portside hull at Daewoo shipyard in Okpo, South Korea, July 2013.

8 Decom News: Issue 14

significant flexibility in this schedule.

Removal of large topsides by “reverse module installation” would take a heavy-lift crane vessel an entire summer season, which would make accurate scheduling more necessary. Single-lifting, however, typically requires only roughly a month including all preparations, mobilisation, demobilisation and transfer of the topsides to shore.

Typical features of the vessel Pieter Schelte can remove topsides in one piece up to 48,000 tonnes and jackets in one piece up to 25,000 tonnes.

The commissioning of the vessel is planned for the end of 2014 and operation in the North Sea for early 2015.

The vessel was named after Pieter Schelte Heerema (1908 - 1981), who pioneered the

installation of large platforms in the Northern North Sea in the 1970s.

A single-lift vessel for large lifts can drastically reduce the amount of offshore work associated with platform installation or decommissioning by moving most of this work to shore. Removing topsides in a single lift will significantly reduce the man-hours spent on offshore cleaning, partitioning, installing lifting points and rigging platform modules.

This reduces health and safety risks.

Avoiding offshore cleaning and purging of process facilities will reduce environmental risk.

In contrast, separating modules offshore would require a large amount of piping to be cut, which carries a risk of oil and chemical residue leakage; such risks are removed with single-lift removal.

FEATURE ARTICLE

Final inspection of the diesel generator sets at MAN Diesel in Duisburg, Germany, November 2011

When removing large jackets, conventionally they need to be cut up into small sections suitable for crane lifts, requiring lengthy and complex subsea cutting operations. Pieter Schelte will be able to remove jackets in a single lift, thereby limiting subsea work and associated risks.

The ability to sail under her own power at a high transit speed 914 knots under optimal conditions) makes the vessel suitable for worldwide use.

Her dynamic positioning system (DP3) enables her to work accurately in any water depth.

Her light ice class will extend the periods in which she can operate in polar regions.

Pieter Schelte’s large ship size gives her a very good wave response behaviour, superior to semi-submersible crane vessels in operational wave conditions of rough environments such as the Northern North Sea. More importantly, the presence of a motion elimination system makes it possible to install or remove platform topsides in significant wave heights of up to approximately 3.5 m depending on the wave incidence angle.

Large offshore lifts do not occur sufficiently frequently for the vessel to remain occupied a large part of the year. For this reason, the vessel has been equipped also with a heavy pipelay capability.

Vessel dimensions and capability range Pieter Schelte will be 382 m long and 124 m wide. At the bow of the vessel is a slot, 122 m long and 59 m wide, where topsides are lifted using eight sets of horizontal lifting beams.

For the installation or removal of jackets, two tilting lift beams are located at the vessel’s stern. These tilting lift beams are also used for regular crane lifts, such as for the installation or removal of modules and bridges.

Factory acceptance tests of the Y-drive cylinders for the topsides lifting system at Bosch Rexroth in Boxtel, the Netherlands, September 2012

The primary area of focus for Pieter Schelte is the removal (in accordance with OSPAR ’98 regulations) and installation of large steel jacket-based platforms in hostile areas such as the North Sea, but also in more benign areas of the world. In particular, Pieter Schelte will target the topsides and jackets that cannot currently be lifted in a single section by crane barges. The primary aim will be for topsides heavier than 10,000 t and jackets higher than 70 m, although smaller platforms can be accommodated equally well.

Allseas’ cargo barge For the transfer of jackets and topsides to or from Pieter Schelte, a 57 m wide, 200 m long cargo barge is being built. This barge, with its relatively shallow draught, will enable the loading or offloading of structures to or from the dismantling or fabrication yard in case the water depth at the quayside is insufficient for Pieter Schelte.

The transfer of structures between Pieter Schelte and the barge will take place in sheltered water close to the yard.

Motion compensation system Analysis has shown that in hostile environments such as the North Sea, a motion compensation system is essential on a single-lift vessel to eliminate impact forces on large topsides, due to the enormous weights involved. In the absence of such a system, local damage can occur even when the wave height is small and vessel motions are very limited. Due to the large motion compensation capacity (both vertical and horizontal) of Pieter Schelte’s topsides lift units, the dynamic forces introduced in the topsides during engaging and pre-tensioning are very low, even when working in less favourable sea states.

Development schedule In June 2010, the contract for building Pieter Schelte was awarded to the Korean shipyard Daewoo.

Equipment for the ship and her lifting systems is being manufactured in many countries.

Delivery of the completed topsides lift and pipelay vessel is expected in the second half of 2014, ready for offshore operations at the end of 2014. The jacket lift system will follow one year later. www.allseas.com

Jacket removal Jackets are lifted over the stern of Pieter Schelte, for which the vessel is repositioned.

After cuts have been made in the foundation piles of the jacket at seabed level, or above the pile clusters as required by the client, the tilting lift beams raise the jacket at the main legs. The jacket is rotated onto the vessel deck by the tilting lift beams, after which it is skidded further inboard.

“”

Pieter Schelte can remove topsides in one piece up to 48,000 tonnes and jackets in one piece up to 25,000 tonnes. The commissioning of the vessel is planned for the end of 2014 and operation in the North Sea for early 2015.

www.decomnorthsea.com 9

MEMBER NEWS MEMBERS NEWS

AKD Engineering Announces New Patent Patent filing paves the way for the transfer of personnel and materials from a marine vessel to offshore wind turbines and other structures.

AKD Engineering in its commitment to continue to deliver market-driven technology solutions announced today that it has successfully filed a patent application with the united Kingdom Patent Office covering a method of transferring personnel and materials to offshore structures primarily wind turbines in adverse weather.

This transfer system has been designed entirely in house by AKD utilising their own dynamic in house design personnel and will be manufactured at AKD’s manufacturing facility in Lowestoft.

The patent describes a Transfer system comprising of a gangway system configured to carry personnel and/or materials between the marine vessel and the structure, combining a support assembly configured to support the gangway assembly and permit vertical movement with respect to the marine vessel.

The transfer system also has a gripping assembly to couple the platform or pile to the transfer system.

This application filing represents on-going efforts by AKD to increase its offering to the energy sector and help to establish relationships between participating companies in the supply of personnel and materials to the offshore wind farm industry.

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“”

This filing represents the first step in a more reliable method of transferring personnel and materials to wind farms, potentially saving lives and reducing injuries in this challenging environment.

Denise Farr Sales Manager AKD Denise Farr Sales Manager for AKD said: “This filing represents the first step in a more reliable method of transferring personnel and materials to wind farms, potentially saving lives and reducing injuries in this challenging environment”. www.akd-engineering.co.uk

New Waste Treatment Facility Augean North Sea Services (ANSS) have recently acquired a third fully permitted waste treatment facility in Aberdeen.

Taking over the facility at Black Dog to the North of the city, as well as its 10,000bbls of liquid storage, enables ANSS to take the management and treatment of bulk liquid wastes from the Offshore Industry to the next level.

The Black Dog site’s primary role will be to receive de-watered drilling slops for further treatment once it has been processed through our unique quayside facility at Pocra quay. ANSS have developed a treatment technology that will enable us to separate out the emulsified oils in the slops and waste muds for recovery, while rendering the residual solids non-hazardous for disposal. This takes away the requirement to consolidate with other wastes for landfill – the process normally followed for most of these wastes at the moment.

As the site is PPC-permitted to receive a wide range of wastes, it will also be used as a reception facility for washings generated from our offshore and onshore Industrial Cleaning activities, and for reception of bulk waste containers from offshore for cleaning.

With this acquisition, ANSS are also looking ahead to the washings and bulk liquid wastes associated with the decommissioning and decontamination of offshore installations and equipment.

We are about to begin investing in the refurbishment of the site and are relocating our Industrial Services team there in order to provide a faster response time to our customers in Peterhead. www.augeanplc.com/ANSS

MEMBERS NEWS

Recruitment Specialists in Oil & Gas and Renewables At Cooper Lomaz we understand the current market place and the importance highly skilled candidates have to a business, especially in today’s candidate driven market.

The people in any organisation are the biggest asset so we conduct market research continually to ensure we are in touch with our sector, and have the tools to attract and work with the best calibre candidates the market has to offer.

Being Specialists in Oil, Gas and Renewables, allows us to supply analysis and current market statistics to our network of key contacts and decision makers within the industry.

We carried out a survey of our clients (more than 500), we posed a series of skills related questions to which over 78% responded by saying they have struggled to attract key engineering skills into their business. The main reasons for this were as follows: • High (Tax Free) day rates and packages offered in UAE/Malaysia/Africa • Competition between Aberdeen and Gt Yarmouth

• Lack of investment in University/College courses (relevant to the sector) • Ageing workforce, Senior engineers are heading for retirement • High value opportunities in Australia & South East Asia Our clients stated that there is a definite, tangible skill shortage in the oil & gas industry and this is even truer within the decommissioning market. By communicating the research to our customers & colleagues we sparked debate, some disagreed and said requirements are too niche. This is debatable, as the average age for a highly skilled and experienced employee in the oil & gas industry is now over 55 years old. When we combine this with a decrease in headcount leading to higher levels of stress, and greater workloads, these factors begin to have a detrimental effect, i.e. increased sickness, staff turnover. Scottish Power

Tom Fisher Consultant Oil & Gas Cooper Lomaz stated that 80% of their engineers will retire in the next 20 years, whilst Dr. Choate of Choate Technology Services Ltd explained there is a huge senior technical gap.

Cooper Lomaz provides all of these services on a personal, one to one basis, we understand and listen to the problems you face. We provide effective ‘future proof’ solutions to our clients.

Cooper Lomaz is one of the top providers of decommissioning experts in the UK. www.cooperlomaz.co.uk

DecomPSL Industry Training Courses Established in 2009, Decommissioning Project Services Ltd (DecomPSL) is an Aberdeenshire based oilfield decommissioning company with more than 60 years of oilfield wells and marine operational experience.

Dave Coull - Managing Director said, “We recognized the market need for an experienced and operationally focused wells decommissioning consultancy, took the plunge and haven’t been disappointed by the market response”. Since then we have grown our customer base to include multinational oilfield service companies, international marine contactors and local companies looking to enter the burgeoning decommissioning market.

DecomPSL focuses on the detail of operational execution with the view to identifying gaps, errors, omissions, assumptions and/or alternative methodologies/technologies

that offer our customers significant risk reduction when decommissioning wells. We offer these services in relation to Platform, Subsea or Land wells, whether to be decommissioned under Oil & Gas UK Guidelines for the Suspension and Abandonment of Wells or any international or operator equivalent (e.g.

NORSOK D-010).

In response to market needs, DecomPSL now provides bespoke training services to the industry. Our newly appointed Director of Training, Brian Munro, and his team of qualified instructors have extensive experience of operational management and field

operations primarily gained across a wide range of disciplines with particular expertise in: well decommissioning, wellhead systems, well services, completions, and workplace competency in line with customers’ employee development. www.decompsl.com

www.decomnorthsea.com 11

MEMBERS NEWS

Heavy-Lifting Innovation in the North Sea Shell will use a first-of-a-kind vessel to lift the complete topsides off its North Sea Brent platforms as part of a mammoth decommissioning project.

Groundbreaking - the “Pieter Schelte”

With 99.5% of its recoverable reserves produced, the Brent North Sea field is being decommissioned after more than 35 years in operation. First in line to be dismantled is the Brent Delta platform, where production ended in late 2011. Brent Alpha, Bravo and Charlie will follow.

Removing the topside of a platform is a huge challenge. The topside is the superstructure that contains most of the platform plant facilities – from power generation

to facilities for drilling – and accommodation for everyone aboard. using conventional approaches, topsides as large as those on Brent Delta would have to be dismantled one large chunk at a time.

But Shell has decided to do it differently on Brent. It’s just embarked on a game-changing course, awarding a contract that will see a ground-breaking vessel built, able to remove the entire topside from the three concrete gravity based structures and one steel jacket, in a single lift – up to 48,000 tonnes.

Named the Pieter Schelte and owned by Switzerland-based company Allseas, the singlelift vessel will be 382 metes long and 117 metres wide, and the first vessel ever built to have the ability to remove topsides in one lift. The vessel will remove and transport the Brent topsides, and load them in to shore. Shell will be the first operator to use the vessel if both Shell and Allseas are ready in mid-2015.

The Pieter Schelte is now under construction at Daewoo’s Korean shipyard, with delivery

Austin Hand, Brent Decommissioning Project Director, left, signs the contract with Edward Herrema from Allseas

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“”

Not only is Shell an innovative energy company in itself but also willing to support innovation in the marketplace, and this is a great example.

Austin Hand Brent Decommissioning Project Director Shell

expected in the second half of 2014, ready for offshore operations at the end of the year.

Shell’s contract with Allseas also includes the removal of Brent Alpha’s steel jacket, a structure that supports the topside. A separate lift system will be delivered later, able to handle loads of up 25,000 tonnes.

Austin Hand, Brent Decommissioning Project Director says, “Not only is Shell an innovative energy company in itself but also willing to support innovation in the marketplace, and this is a great example. www.shell.co.uk

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www.decomnorthsea.com 13

MEMBER NEWS MEMBERS NEWS

Enviroco Appoints New Business Development Manager for Oil and Gas Enviroco, the UK’s leading oil and gas waste management company has appointed Katie Downie as Business Development Manager.

Based in Aberdeen she will have responsibility for the UK oil and gas sector.

Katie joins Enviroco, part of international oilfield services company, the ASCO Group, with a wealth of experience gained from the financial services and oil and gas sectors. Over the past seven years she has worked for MI Swaco and NOV Brandt, developing a strong knowledge of drilling wastes and solids control equipment along the way.

Enviroco holds a number of contracts with major UK operators for waste management and industrial cleaning services and Katie will initially visit each of Enviroco’s main locations to gain

a greater understanding of the business and its operations. She will also meet current and potential customers on Enviroco stands at the main oil and gas exhibitions, including Offshore Europe and the Pilot Share Fair.

The appointment comes during a restructuring of Enviroco’s oil and gas commercial team, as part of a strategy to continue the company’s strong growth in the UK oil and gas industry. From a standing start in 1999, Enviroco’s turnover has grown to over £43m in 2012 and employs over 200 people across 8 locations in Scotland and England. www.enviroco.co.uk

Katie Downie Business Development Manager Enviroco

Jee Ltd Continues Steady Growth with Two Office Expansions Jee Ltd, the UK’s largest independent multi-discipline subsea engineering and training company, is continuing an on-going strategy of controlled growth by moving two of its UK office locations to larger premises to meet client demand.

The company is doubling the size of its Aberdeen base, moving to a larger office in the city’s subsea centre of Westhill in September.

Jee has also recently expanded the size of its London premises to accommodate growing staff numbers. Its new space in the Waterloo area of the city has room for 50% more employees.

Both office moves come in direct response to client demand as Jee is strengthening its capabilities, which span the whole life-of-field, to cater for larger projects. Jee is currently

14 Decom News: Issue 14

focussing on further developing expertise in flow assurance, increased materials capabilities and structural design.

The opening of these two new offices is a testament to how far Jee has come, and falls in a landmark year for the company, which is celebrating its 25th anniversary.

Jee Ltd Technical Director Mike Hawkins said: “We are thrilled with the steady growth Jee has been able to achieve in recent years. While maintaining the quality of service our clients have come to expect, we are constantly building

Mike Hawkins Technical Director Jee Ltd

on our reputation and continue to be a provider of choice for subsea projects.”

From beginning as a one-person consultancy to a current team of 90 working on global subsea projects from its three locations around the UK, the company has seen steady evolution in both its capabilities and employee numbers. Jee offers expertise in integrated services that cover the entire spectrum of subsea engineering. www.jee.co.uk

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MEMBER NEWS

ERM Brings Distinct International Perspective to Aberdeen

Lucion Marine Expand to Cover Global Requirements

ERM, the world’s leading sustainability consultancy, has recently expanded its UK presence with a new Aberdeen office to provide additional support to its North Sea oil and gas clients in areas such as risk, safety, environment and sustainability.

Industry Leaders of Maritime hazard management Lucion Marine are pleased to announce the opening of their new office in Singapore.

As a global professional services firm employing more than 5,000 people, ERM aims to offer clients in the oil and gas sector the best of both worlds – local service and global expertise. Many of the world’s leading oil and gas companies are familiar with the ERM brand and the level of service that goes with it. ERM projects in all parts of the world combine technical rigour with a deep understanding of the sector and its business priorities.

ERM routinely advises its clients on many aspects of decommissioning, in the oil and gas, mining, power and industrial sectors, and has been supporting clients with offshore decommissioning in the UK for over ten years.

“ERM’s extensive experience providing support to offshore operators provides a perspective on the risks associated with decommissioning which differentiates us from other providers” says Paul Jackson, Principal Consultant and UK Decommissioning Lead for ERM. “It’s about considering technical issues in a broader business context. We also bring significant learning from other industrial sectors where closure planning and decommissioning are a major consideration.”

ERM’s offshore decommissioning capability includes: • Regulatory and permitting support • Strategic planning and financial provisions assessment • Environmental Impact Assessment and Monitoring • Risk and Safety support • Waste management • Lifecycle Assessment • Environment and Health & Safety performance assurance • Sustainability and climate change assessment. www.erm.com

16 Decom News: Issue 14

Lucion Marine have been regarded as a recognised provider of hazardous material management globally from their UK offices since they opened in 2003 and the opening of the new Singapore office will enable the company to further take advantage of the growing opportunities in the region.

With the London office opening in 2008 Lucion Marine have been working in the maritime and offshore markets across the world, offering hazardous material identification, including surveying and sample analysis, giving their clients expertise in the safe management and removal of these often harmful substances.

Marine Director Phillip Rozier said: “The new office is situated in the heart of the shipping district of the city and is considered to be an ideal location to increase our presence in the South Asian market where shipbuilding, along with recycling, has seen an exponential growth in demand for our services.”

The impending launch of the new E.U Ship Recycling Regulations, (to be approved in October 2013), has a direct impact on the North Sea Offshore Decommissioning program. By requiring all platforms to hold an Inventory of Hazardous Materials (IHM’s) prior to dismantling, Lucion have been able to offer their existing clients, and the growing market for new clients, trusted hazard management solutions, including the production of IHM’s. This essential investigation offers increased knowledge to the operator, and with this knowledge, follows safer risk, program and financial forecasting. www.lucionmarine.com

MEMBERS NEWS

Simon Storage Announces New UK Waste Handling Facility Simon Storage is pleased to announce that it has agreed the necessary terms of a Part A PPC permit with the Environment Agency for the handling of hazardous and non-hazardous bulk liquid wastes at its comprehensive Immingham terminal complex on the south bank of the River Humber.

The Environment Agency takes great care when permitting such activities, and this is the first time in 80 years that companies will be able to use Immingham Storage for storing both hazardous and non-hazardous bulk liquid wastes for off-site disposal or recovery. Simon Storage has a long history of handling bulk liquid wastes under permit at its East Coast terminals located at Seal Sands, Teesside as well as at Velva Liquids, Tyneside. In 2012 Simon Storage was successful in applying for the necessary Radioactive Substance Regulations (RSR) permits to handle NORM products, Naturally Occurring Radioactive Material typically originating from the North Sea. The permission regime for storing hazardous bulk liquid wastes is stringent and as an EPR Part A process wastes must be stored in tanks with impermeable bunding and managed under strict stock management systems and reporting regimes. Outfall consents are also

subject to regular monitoring and reporting to ensure compliance within consented limits.

Another prerequisite is competent staff training, both to meet permitting requirements and also to uphold Simon’s commitment to personal and process safety. Simon now has WAMITAB (formerly the Waste Management Industry Training & Advisory Board) qualified staff located at each of Simon’s East Coast terminals, and where NORM products are located staff also hold an approved Radiation Protection Supervisor’s (RPS) qualification.

In addition to permission for the receipt, storage and redelivery of hazardous and nonhazardous bulk liquid wastes, Simon Storage has also been permitted to carry out water separation activities and the recovery of the separated hazardous and non-hazardous waste.

In 2010 Simon Storage invested in new water treatment facilities, and will now be permitted to use this plant for the disposal of the separated

waste water. The above activities cover a wide range of permitted EWC codes.

Simon Storage has longstanding experience of handling hazardous products, including both fuels and chemicals as well as gases.

Commenting on the new Part A PPC waste handling permit for Immingham Storage, Paul Oseland, Commercial Director, says: “This is exciting news for both Simon Storage and the UK waste and recycled oil industries. We have seen an increase in demand for suitable storage and new disposal routes for hazardous wastes in line with increasing environmental awareness.

I am delighted that we are now able to make these facilities available to a wide and growing European and domestic market. Immingham Storage has a wide range of suitable tankage and available capacity within our water treatment plant enables us to offer some competitive and innovative market solutions.” www.simonstorage.com

www.decomnorthsea.com 17

MEMBERS NEWS

Stuart Wordsworth Boosts Well Abandonment Capability at SPD Stuart Wordsworth has been appointed as Well Abandonment and Integrity Director at well engineering services specialists SPD, further strengthening the Petrofac Group’s integrated decommissioning offering.

Stuart brings a wealth of experience, having worked for more than 18 years in the industry, specialising in well abandonment for the last six years. Most recently he ran a well engineering and project management consultancy, advising a range of global customers, including on well plugging and abandonment projects in the Irish Sea and Southern North Sea. Stuart is a non-executive director of Decom North Sea and chaired wells workshops at the Decom North Sea Conference in both 2010 and 2011.

Stuart said: “SPD has huge potential and I am very much looking forward to helping to develop its well abandonment capability. We have a highly-regarded operational capability and a strong track record in running rigs and performing well operations. There are significant opportunities

Stuart Wordsworth Well Abandonment and Integrity Director SPD

out there for us to translate this proven operations management record into the decommissioning marketplace and with the backing of the wider Petrofac Group this is an exciting time to be part of SPD.” Ian Whitehead, Decommissioning Director, Petrofac Offshore Projects & Operations said: “I’m delighted that Stuart has joined the SPD team.

Our decommissioning group is already working very closely with SPD, as demonstrated by our recent collaborative work on the asset retirement obligation study for Sasol in Mozambique. The additional plugging and abandonment experience Stuart brings to the group reflects Petrofac’s commitment to provide our customers with a complete integrated decommissioning service as part of our total asset lifecycle support.” www.spdltd.com

Custom Cutting Solutions for the North Sea Earlier this summer, one of the industry’s largest operators found themselves facing a significant hurdle during a decommissioning project.

Cement plugs inside 20 jacket legs made it impossible to insert an abrasive cutter topside and sever the piles. Wanting to avoid the significant time required to excavate around each leg, the operator called EOT Cutting Services.

In less than two weeks from first contact to arrival in the field, EOT created a brand new, bespoke slot cutting solution that allowed the operator to open the jacket legs below the cement plugs and insert the abrasive cutter.

Built from assets EOT had in house, the new tool required minimal training, allowing service technicians to mobilize to the field quickly, and saving the cost of divers and support vessels.

The solution was such a success a second tool was quickly commissioned, allowing for all

18 Decom News: Issue 14

20 of the 609 mm jacket legs to be severed in a 40-day period.

“We hope our customers will come to us with any problem they face,” said Galen Clark, General Manager, EOT Cutting Services. “With the ability to create customized solutions quickly, our capabilities are truly limitless.”

EOT Cutting Services has completed more than 15,000 successful cuts to date. To see a demonstration of EOT’s cold cutting services or to discuss a specialized solution for your project, please visit www.tetratec.com

EOT Cutting Services’ custom slot cutting tool onsite and the resulting piece removed from the jacket leg.

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www.decomnorthsea.com 19

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20 Decom News: Issue 14

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MEMBERS NEWS

Wood Group PSN Appoints Nigel Lees as Projects Director Nigel Lees, previously Chief Operations Officer for BIS Salamis, has joined Wood Group PSN’s (WGPSN’s) UK leadership team as projects director, effective immediately.

An expert in his field, Nigel has more than 20 years of oil and gas experience under his belt. His varied career has seen him work in multi-discipline service, design, manufacture and maintenance environments in oil and gas, nuclear, defence and construction sectors. He kicked off his career as an engineer with Ferguson Seacabs in 1989 and since then has worked in a range of senior positions with Rigblast, Oceaneering and BIS Salamis. In 2003 Nigel was responsible for the formation and leadership of the SORT4 joint venture providing inspection, integrity and fabric maintenance services to Sigma3 across Shell’s Central and Northern North Sea assets. A respected member of the oil and gas community, Nigel is also a NonExecutive Director for Oil and Gas UK and Decom North Sea. In his new role, Nigel will drive WGPSN’s decommissioning strategy and continue to lead the way in decommissioning in the North Sea.

Commenting on his new position, Mr Lees says: “I’m delighted to drive forward our expertise in decommissioning and build on the experience we already have within our decommissioning studies and DSC contract teams.”

From its headquarters in Aberdeen, WGPSN provides global brownfield support and life of field production services to clients by drawing on the expertise and experience of its global network of 28,000 employees. In the UK, WGPSN now employs more than 10,500 people working onshore and offshore. The company operates across four main locations – Aberdeen, Glasgow, Runcorn and Hull.

Nigel Lees will report directly to WGPSN’s UK managing director, David Stewart. www.woodgroup-psn.com

New Members We are pleased to welcome the following new members: Dundee Decommissioning Limited EY James Fisher Offshore Limited Neopolia Subsea Deployment Systems Ltd Svitzer Wick Harbour Authority 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

www.decomnorthsea.com 21

MEMBER POINT OF VIEW

The Real Value of Working Together Alan Cameron, Technical Director with specialist safety company Sabre Safety, takes a look at the real value of working as a team…

There’s nothing new about working together - oil companies have been creating collaborative partnerships with service companies for a long time. Collaboration may not be new, but the idea of decommissioning is high on the agenda and that is giving it extra impetus.

A growing need in Decom Many platforms in the North Sea, particularly in the Norwegian sector and the Dutch sector, are getting to a point where decommissioning has to take place.

Agreements with governments mean that oil companies have to restore the seabed to its original state in many cases, or at least have a plan in place that will meet the environmental conditions. The trouble with all this is that, as well as a representing a formidable safety challenge; it is also a major cost: so finding the safest and most cost-effective way of carrying out this work is going to be critical.

Oil companies are going to need really close collaboration with all their major suppliers if decommissioning is going to meet these joint objectives of safety and cost-effectiveness.

Working from first principles There are currently just under 40 decom programmes under consideration for the North Sea. The costs and the nature of the work are formidable, with many unknowns, although there are plenty of tried and tested techniques. As gas and safety experts, our work with exploration firms is an area where we can predict the equipment that we will require for any particular project. By contrast, in decom work we have to start from first principles, working our way back from what we need to do to protect people and designing a particular system that is highly specific to the job.

Each job is different and we have to collaborate closely with the operators and the service companies carrying out the work in order to come up with a plan that is going to be effective. We have to fine-tune continually the service that we are providing. It’s all about being flexible in how you work with your clients as well. It’s very important to us that there is a close communication with the client:

22 Decom News: Issue 14

we have to know that we are able to give them what is required at any particular time.

So we could be on one job and have to switch to another, responding quickly and coming up with a solution for another area of a platform for example.

Working together at a more fundamental level In the context of the Oil & Gas industry, working together is, however, about something much more fundamental than this. A lot of the work that we do as a specialist gas and safety company means that we are considered for confined space work. Confined space in leg work involves vertical access, so it is imperative to be able to extract people quickly in some of the most hazardous conditions. There has to be multiple backups for systems so that there is always a contingency in the event of any potential failure. We have to be sure that we have many control measures in place so that even in the unlikely event of something happening we are still able to manage it. quality systems have to work together, but the main thing is trust that we have a mutual trust and confidence.

“”

Building trust is all about maintaining constant dialogue. At Sabre, we have been working with people in decom for a number of years. We know them not only professionally, but personally. The relationship is very important; in fact you cannot put a price on it.

Alan Cameron, Technical Director Sabre Safey

Bringing understanding to work Building trust is all about maintaining constant dialogue. At Sabre, we have been working with people in decom for a number of years. We know them not only professionally, but personally. The relationship is very important; in fact you cannot put a price on it.

We are doing more than just providing men and equipment: we are providing support and we are bringing an understanding of the risks and the problems associated with the work because of our experience over time.

The composition of teams really matters. In this environment close working relationships are created and so sending someone else out on the job can have quite a detrimental effect on how a project runs. Suddenly the team are getting someone they don’t know who is looking after their air and that sows the seeds of doubt. Working together in tough conditions creates a camaraderie that makes the job easier. As a driller I absolutely know that. Teams are important, and it’s no coincidence that so many people in this industry have a forces background where everyone has to rely on everyone else.

Understanding people and teams Operations have to be structured around people – the right people for the team. That’s why we try and supply the same personnel on jobs so our people who work with the rope access technicians are part of their team. It means that they know each other personally and get to see each other as being part of the SAME team that’s working together 12 hours a day and being together 24 hours a day offshore.

The rise of a more open ‘culture’ One of the most positive trends in the Oil & Gas sector over the past 20 years or so has been the emergence of much more openness. The existence of Decom North Sea itself is part of that active sharing of experience. Attitudes have been transformed since the Piper Alpha. Against this background, ways of working together have changed too, with a greater emphasis on people collaborating at much earlier stages in

MEMBER POINT OF VIEW

projects rather than being brought in later as to provide ‘component’ services and equipment.

Suppliers or service providers have to make sure that they become engaged with any project they are involved in at the planning stage.

Being more than just a supplier Sabre Safety is currently doing some work with an oil company where they have not yet formulated a complete plan to remove platform legs and deal with a complicated cell structure.

Sabre has been involved at the early stages of the job to discuss the options and how the company are going to deal with H2S under each option. They have come to us as experts in our field and asked us for our opinion rather than waiting until they had already decided how they were going to do it - and then asking us to come up with a solution. It means we can advise them of just what is and is not possible.

A different model of collaboration It is a real model of collaboration and reflects the way in which oil companies are looking to suppliers to be ‘solution providers’

Sabre benzene ad AW.pdf

29/8/13

rather than an equipment supplier. It’s like the old marketing adage that you don’t buy a drill: you buy the holes in the wall. Put another way, it’s the difference between going to the DIY shop and buying something to put a shelf up or alternatively asking somebody in the DIY shop, “I want to put a shelf up. What do I need?”. It makes a big difference if you have plasterboard walls or lathe and plaster, for instance.

The truth is that the Oil and Gas industry is so complex now that you simply can’t know everything. So you have to go to particular people with expertise in a given area. And that comes back to trust again. You have to trust that they are making suggestions to you because it’s the best solution to their problem, and that they are not just trying to make money from you.

Again, it’s about getting to know them.

Collaboration can take place in so many different situations. At Sabre, we have been working with Factair to produce a Zone 1 compressor that is completely Zone 1 contained, with no trunking being fed into the Zone 1 area. Due to be launched later this year, it has brought together the mass

production expertise of Factair with the specialist gas expertise of Sabre. Elsewhere, we have worked beyond the Oil & Gas industry with the Scottish qualifications Authority (SqA) to produce the world’s first Customised Vocational qualification (CVq) for H2S safety supervisors that is accredited by an internationally recognised curriculum authority. All of these relationships have one common purpose: to create a safer working environment.

Looking ahead and as decom work expands, collaboration across the industry looks like it will influence construction work in a fundamental way. It will almost certainly be increasingly considered at the design stage of a platform. It may well also be the case in future that consortia of suppliers will come together to offer a complete and flexible package to oil companies for decom work – rather than oil companies initiating this in all cases. In everything though, safety considerations will rightly be the prime driver of innovation and the major benefit of working together. www.sabreh2s.com

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www.decomnorthsea.com 23

MEMBER POINT OF VIEW

Bond Dickinson Insight to Decommissioning and its Challenges While the aim of the uK oil and gas industry must be to prolong viable production for as long as possible, and industry is enjoying considerable success, major decommissioning of some of the uKCS’s biggest fields has begun.

The predictions are that within two years the £1 billion a year decommissioning business will be booming bringing enormous opportunities and new challenges - not least in the contracts which will have to be agreed.

In August, Shell awarded the contract for the removal, transportation and load in of the Brent field topsides and the steel pile jacket (SPJ) on Brent Alpha to Allseas. The other platforms use CGBSs (concrete gravity base structures) therefore an alternative solution will have to be found. The project will be the first for Allseas’ mammoth new heavy lift vessel the Pieter Schelte.

The project demonstrates the huge scale of the challenge facing the industry. The size of the task facing Shell on Brent is exceptional, but not unique. The three topsides and the SPJ together weigh in at an estimated 100,000 tonnes.

The cost of decommissioning the uKCS is huge, and worse, unpredictable. Faced with similar issues in the development phase of North Sea oil and gas the CRINE process identified the potential savings to be achieved from, amongst other things, standardising contracts. Thus what are now the LOGIC contracts were born. To what extent might similar gains be available in relation to the decommissioning phase?

To a great extent a decommissioning project requires the same activities as construction and installation of a new platform. In addition, there will be a series of decommissioning specific services that need to be performed. The big difference is the unknown.

The structures that are being decommissioned now were not designed to be removed and dismantled. Over the years they will have been modified and deteriorated.

What lies at the bottom of a storage cell sunk in the 1970s? It is possible to overstate these differences though. Offshore engineering has always involved unknowns, and these have become greater as developments have entered deeper, colder and stormier waters.

The nature of the risks themselves is the same

24 Decom News: Issue 14

for any project. This is true both of commercial risks: time and money and physical risks: injury and death; loss of or damage to property (whether the company’s, the contractor’s or a third party’s); and pollution is as much a risk for a decommissioning project as it is for a new development.

The way in which the LOGIC contracts allocate the physical risks can be applied to the decommissioning process. Liability for death and personal injury would be allocated on the same knock for knock basis under which each party takes the risk of death of or injury to their own personnel. Damage to company property would continue to be borne by the company.

The allocation of pollution risk also makes sense. under the LOGIC forms a contractor takes the risk of pollution emanating from its premises or equipment. This is also appropriate for decommissioning projects.

Individual LOGIC contracts are clearly relevant to different activities within the decommissioning process. After cessation of production (CoP), decommissioning, disconnection and suspension activities take place upon the intact platform. On the Brent project, Shell appointed Wood Group PSN to prepare the platforms for removal. A significant part of these services included understanding the existing condition of the topsides. The LOGIC On and Offshore Services contract is designed for this although it was originally intended for use on live platforms, the activities and risks are largely the same.

The activities involved in the Removal phase include more novel activities, and often involve technology innovation.

OSPAR decision (98-03) which governs what structures in the North Sea must be removed and which may remain in situ under derogations recognises current technological limitations. The derogation from that OSPAR decision available in relation to jackets in excess of 10,000 tonnes is driven by concerns that removing those could involve more pollution and risk than leaving them in place as well as

“”

The predictions are that within two years the £1 billion a year decommissioning business will be booming bringing enormous opportunities and new challenges - not least in the contracts which will have to be agreed.

Alex Hirom Partner, Construction Bond Dickinson

by limitations on heavy lift technology that prevents the jackets being moved intact and on cutting technology that prevents the jackets being broken into smaller pieces offshore.

Concrete gravity based structures are also subject to a derogation for similar reasons.

The OSPAR derogations are subject to periodic review, and although they have been static for some time, technology innovations that allow the removal of larger structures will eventually lead to the amendment of the derogations.

The Removal phase may involve the fabrication of new structures. For example the decommissioning process implemented

by Aker Solutions in relation to Total’s Frigg field involved engineering and fabricating floatation tanks which were attached to the

MEMBER POINT OF VIEW

jacket to give it buoyancy and allow it to be towed to shore. Alternatively structures may need to be designed and fabricated to hold topsides on heavy lift vessels. Fabrication for decommissioning is no different to fabrication for any other purpose offshore and the LOGIC Construction and Marine Construction forms of contract are designed for this.

The Disposal phase offers the greatest opportunity for flexibility in contracting terms.

The Disposal phase takes place onshore so offshore risks are no longer relevant. In other industries, onshore engineering activity is often procured on the basis of a fault based risk allocation (ie you pay if you are to blame) as opposed to the knock-for-knock risk allocation prevalent offshore. There are also a number of standard form contracts used in other onshore scenarios that could be used: for example the suite of contracts published

by FIDIC (the International Federation of Consulting Engineers) or the NEC3 suite the “New Engineering Contract”. These contracts have a lot to recommend them. The FIDIC

contracts provide a clear and robust allocation of risk and responsibility between the parties.

The NEC3 suite has been drafted to require the parties to behave in “a spirit of mutual trust and co-operation” by requiring mutual risk recognition and early warnings to enable the parties to manage those risks. In fact, the NEC3 contract attempts to implement onshore many of the collaborative working practices identified by the CRINE initiative in relation to the offshore engineering industry.

Although these contracts do have a lot to recommend them, what they do not have is the principal advantage of a standard form of contract – familiarity. The FIDIC contracts, whilst they may be better known internationally, apply a method of risk allocation that is very different to the knock-for-knock regime employed via the LOGIC contracts, the IMHH and contractual mutual hold harmless regimes.

If used without substantial amendment it poses a significant risk of leaving gaps in the liability and indemnity regime. The NEC3 contracts are intended as more than just contracts, they are

intended to adjust the behaviour of all parties in the contract chain. This aim is worthy, but the participants need to be prepared for the procurement culture-shock that it entails.

If the question is whether there are similar gains to be made in the decommissioning sector to the standardisation of contracts in the CRINE process, the answer must be to promote the use of the LOGIC contracts (or at least LOGIC based contracts) for all phases of decommissioning in the decommissioning process.

As the UKCS moves from development to decommissioning it is worth the industry investing some time in reviewing these contracts with decommissioning in mind and producing a decommissioning suite: particularly to cover removal and disposal. Whilst the terms themselves may only be an evolution of the existing contracts, the effort taken to build consensus and endorse their use in the decommissioning sector would be worthwhile www.bonddickinson.com

www.decomnorthsea.com 25

UPCOMING EVENTS

Events Update SAVE THE DATE: Decom Offshore 2014, AECC, Aberdeen, 27 May Following on from the success and great feedback on the Decom Offshore 2013 event, planning is now underway for 2014. The aim of this interactive event is to advise the supply chain of the challenges faced by Operators and Tier 1 Contractors when undertaking an offshore decommissioning project, and to inform the Operators and Tier 1 Contractors of innovative solutions and techniques which the supply chain can offer to address these challenges.

The event format will be a mixture of interactive plenary sessions, exhibition space and 1-2-1 opportunities as well as plenty of time for networking. More information to follow.

Decom North Sea Learning Journey to the Netherlands, w/c 14 October The aim of this learning journey 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 organisation IRO to organise this visit. For more information and to register your interest in participating in this learning journey contact shillyear@decomnorthsea.com

Oil & Gas UK, Pilot Share Fair, AECC, Aberdeen, 6 November Decom North Sea are exhibiting at this year’s Pilot Share Fair event and welcomes visits from potential or existing members to discuss opportunities in the offshore decommissioning market.

Southern North Sea Special Interest Group Meeting, Lowestoft, 7 November Decom North Sea and East of England Energy Group (EEEGr) have formed a Special Interest Group focussed on the decommissioning opportunities in the Southern North Sea. The next meeting of this group will be held on the 7th November. More information to follow.

Decom North Sea Learning Journey to Norway, w/c 10 February This visit will take place around the annual NPF Decommissioning Conference in Os near Bergen.

The aim of this learning journey is to explore offshore decommissioning opportunities in Norway, promote Decom North Sea members capabilities to the Norwegian market and explore opportunities for collaboration. For more information and to register your interest in participating in this learning journey contact shillyear@decomnorthsea.com Please visit www.decomnorthsea.com for details of future events and to book your place on any of the Decom North Sea events listed above.

Lunch & Learn This series of events allow the supply chain companies to have the opportunity to give 15 - 20 mins presentations on their capabilities in offshore decommissioning to an audience of operators, major contractors and potential partners. All Lunch & Learns will be held at the Palm Court Hotel between 12-2pm.

27 November This event will include presentations from D.E.C.O, Red 7 Marine and Wildwell Control.

Future Decom North Sea Lunch & Learns (2014) Save the Dates: 15 January, 19 March, 23 April, 11 June, 20 August, 17 September and 12 November 2014 Each of these lunch & learn events will have 3 complimentary Decom North Sea members presenting on their capabilities and experience in the offshore decommissioning industry. The purpose of these events is to promote the supply chain capabilities to the operators and major contractors as well as to allow the rest of the supply chain to seek opportunities for collaboration.

Get involved!

If you are interested in participating at one of these events, please contact Jennifer Mann on 01224 914044 or jmann@decomnorthsea.com

26 Decom News: Issue 14

decom members

Our Members 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 as at 2nd September 2013 • 60 North Recycling Ltd • Abandonment & Cutting Energy Services Ltd (ACES) • ABC Contract Services Ltd • Aberdeen Harbour Board • Aberdeenshire Council • Accenture • Acorn Coaching and Development Ltd • Acumen Energy Ltd • Advanced Underwater Surveys Ltd (adus) • AF Decom Offshore AS • AKD Engineering Ltd • Aker Solutions • Allseas Group S.A. • AMEC • Aquatic Engineering & Construction • ARCADIS (UK) Limited • Archer • Argon Isotank Ltd • Arnlea Systems Limited • ASCO UK Ltd • Aubin Ltd • Augean PLC • Axis Energy Projects Limited • Axis Well Technology • Babcock International Group • Baker Hughes • BAUER Water • Bilfinger Salamis UK Limited • BiSN Technologies Ltd • BMT Cordah Ltd • Bond Dickinson LLP • Bonn & Mees • Boskalis Offshore • BP • Burges Salmon LLP • Cape Industrial Services Limited • Cashman Equipment Corp. • Centrica Energy • Champion Technologies • Chevron North Sea Limited • Claxton • Cleveland Steel and Tubes Ltd • Clydeport Operations Ltd • CNR International (UK) Ltd • Cooper Lomaz Recruitment • Cortez Subsea Ltd • CSL • Currie & Brown • Cutting Underwater Technologies Ltd • Cyberhawk Innovations • D3 Consulting • Danbor Services • D-Comms (Scotland) Limited • DECO (Diving, Engineering & Consultancy Office ) • Decommissioning Project Services Ltd • Dundas & Wilson • Dundee Decommissioning Limited • Dunlop Oil & Marine Ltd (Contitech Beattie Ltd) • Dutton International Limited • E.M.W Consultancy Ltd • EC Harris • Enermech • Eni Hewett Limited • EnviroCentre Ltd • Enviroco Limited • Epeus Group Ltd. • ERM • Ethos Environmental Ltd • Expro North Sea Ltd • EY • Falck Nutec • Flowline Specialist Limited • Fraser Offshore Limited • Frazer - Nash Consultancy • Fugro Subsea Services Ltd • GCG Shotblasting Services Ltd • Genesis GmbH • GL Noble Denton • GP Decom Limited • GRC Recycling • Gulfstream Services International UK Ltd • H.J. Hansen Recycling Industry Ltd • Halliburton • Hardy AVARR Limited • Hawk Enviro Ltd • Heerema Marine Contractors • Hess Ltd • Hilti • IKM Testing (UK) Ltd • Ince & Co Services Ltd • Infield Systems Limited • Interwell UK • J. Bryan (Victoria) Ltd • James Fisher Marine Services • James Fisher Offshore Limited • JEE Ltd • John Lawrie (Aberdeen) Ltd • Jumpstart Limited • Kaefer International Offshore Ltd • KCA DEUTAG Drilling Ltd • KDC • Kishorn Port Limited • Kongsberg Maritime Ltd • Kotug Offshore BV • L2 Business Consulting Limited • Leafield Logistics and Technical Services Ltd • Ledingham Chalmers • Lerwick Port Authority • Lloyd’s Register EMEA • Lucion Marine • Macaulay Scientific Consulting • Macaw Engineering • Maclay Murray & Spens • Maersk Oil UK Ltd • Mammoet Salvage BV • Marathon Oil U.K. LLC. • Maxoil Solutions Ltd • McDermott International • McLeod Aitken • Met Office • Montrose Port Authority • Mourik Services B.V. • MSIS Group • Mwaves Ltd • Natas Highlands Ltd • Neopolia • Network International • Nexen Petroleum U.K Limited • Norisol • Nuvia Sita NORM Ltd • Ocean Kinetics Ltd • Oceaneering International • Offshore Design Engineering Ltd • Offshore Installation Services Ltd (OIS) • Oil States MCS Ltd • Oilmac.com • O’Kelly Brothers Demolition & Environmental Contractors • Optimus (Aberdeen) Ltd • PacTec EPS Ltd • Panda Rosa Metals • Pangeo Subsea Scotland Ltd • PDL Solutions (Europe) Ltd • Perenco UK Ltd • Peterhead Decommissioning Limited • Peterson (United Kingdom ) Limited • Petrofac • Port of Frederikshavn • Premier Oil Plc • Prima Uno Planning and Programming Ltd • Project Development International (Pdi) Ltd • Project, Time & Cost International Ltd • Proserv • Quickflange UK LTD • R.U.M Consultancy Ltd • RAM Tubulars Scotland Ltd • Red 7 Marine Offshore • Red Stone Drilling Ltd • Rigmar Services Limited • Robertson Metals Recycling Limited • Roemex Speciality Oilfield Chemicals • Romar International Ltd • Rotech Subsea • RPS HSED • RVA GROUP • RWE Dea UK • Sabre Safety Ltd • Safety Critical • Scanmet A.S • Schlumberger - SMITH Services • Scopus Engineering Ltd • Scotoil Services Limited • Scottish Enterprise • Seafox Contractors BV • Seajacks UK Ltd • Seaway Heavy Lifting • Senergy (GB) Ltd • SFF Services Limited • Shell UK Limited • Shepherd & Wedderburn • Shepherd O’Brien • Simmons & Company International• Simon Storage Ltd • Siskin Asset Management Ltd • Sky Futures • SLR Consulting • SMRU Ltd • SNC-LAVALIN UK Ltd • Spartan Solutions Ltd • SPEX Services Ltd • Squibb Group Ltd • Stanley Hydraulic Tools • Stena Recycling Stavanger AS • Stork Technical Services • Subsea Deployment Systems Ltd • Superior - Wild Well Energy Services Ltd • Svitzer • Swire Oilfield Services Ltd • Talisman Energy (UK) Limited • Tam International North Sea • TETRA Technologies Ltd • Thomas Muir ( Rosyth) Ltd • Tinne Consultants Limited • TRAC Oil&Gas • Tracerco Ltd • Tullow Oil Plc • TWMA • UKPS Offshore • Underwater Cutting Solutions • Universal Pegasus International (UK) Ltd • URS Corporation • Vanguard Villatek Ltd • Veolia Environmental Services • Viking SeaTech • Weatherford • West Oil Tools Well Services • Westlord Associates UK • Wick Harbour Authority • Wood Group • Worley Parsons • Partners Caithness Chamber of Commerce • Carbon Energy Club • Danish Marine and Offshore Group East of England Energy Group (EEEGR) • Energy North • Energy Coast • IRO • NOF Energy • Scottish Renewables

www.decomnorthsea.com 27

Choose the right solution for deepwater well abandonment

On a recent North Sea well, the Baker Hughes universal wellhead retrieval system cut and retrieved a subsea wellhead in only one hour.

Universal wellhead retrieving system efficiently removes wellheads without depth limitations.

The complex job of well plug and abandonment requires planning, project management, and a portfolio of specialized technology. Baker Hughes provides all three.

© 2013 Baker Hughes Incorporated. All Rights Reserved. 39213 08/2013

One example: our universal wellhead retrieving system, which removes conductors and subsea wellheads safely and efficiently. Run with our Hercules™ multistring cutter, the retrieving system can cut multiple casing strings in one trip, and recover wellheads from any manufacturer.

Contact Baker Hughes and let us plan and implement your next end-of-well solution.

Advancing Reservoir Performance

Results:

Completed the operation in a single trip Cut the 20-in. and 30-in. casing in only 40 minutes Recovered the 18-3/4-in. subsea wellhead without damage Left a clean stump at the correct depth below the mudline bakerhughes.com/wellabandonment