Abstract
Major business opportunities
The time for many North Sea offshore oil and gas platforms to be
decommissioned is fast approaching; more than 470 platforms will have to be
wholly or partially removed from North Sea waters over the next 30 years - a
vast series of projects which could put enormous amounts of pressure on the
supply chain. However, if the industry is well prepared there will be major
opportunities and rewards for participation in the sector. The North Sea
Offshore Decommissioning Report by Douglas-Westwood and Deloitte Petroleum
Services Group, provides the essential information for those decision-makers
in oil companies and contracting & supply industries, government departments
and financial institutions on the expenditure required to carry out the
imminent task.
Likely expenditure
This second edition of The North Sea Offshore Decommissioning Report is
expanded to cover the entire North Sea area, with a concise account of the
most pressing issues related to decommissioning in the region's waters. Likely
expenditure is considered through two scenarios which account for changing
offshore lift technologies and the associated variable onshore costs. The
first scenario presents a 'business as usual' situation whereby existing heavy
lift vessels are used to carry out decommissioning projects. The second
scenario assumes a step change in offshore lifting technology and the
development of Super Heavy Lift Vessels (SLVs) that are capable of lifting
upwards of 15,000 tonnes. The bottom-up Douglas-Westwood cost forecast
generated from these scenarios covers all decommissioning aspects from the
plugging and abandonment of subsea wells to onshore deconstruction and
recycling. Attention is also paid to specialist equipment requirements and the
locations to which decommissioned infrastructure can be sent for disposal,
re-use and/or recycling.
Future prospects
The North Sea Offshore Decommissioning Report provides an overview of future
prospects. It reviews current North Sea offshore platforms as well as the
existing regulatory regime - including a focus on decommissioning obligations,
procedures and trends. In addition, the report focuses on current and proposed
key technologies and is reinforced by case studies.
The supply chain
This innovative report examines the decommissioning services supply chain
focusing on key issues including current and potential supply chain gaps. In
both scenarios the demand on the supply chain differs, however early
preparation for the upcoming opportunity is shown to be essential given
figures presented within the report.
Market forecasts
Market forecasts are provided using Deloitte's PetroscopeR economic modeling
system. PetroscopeR is a comprehensive upstream fiscal modeling tool for the
analysis of global oil and gas assets. Models have been created for field
numbers and facilities, economic limit (production limit) as well as
incremental and cumulative ABANDEX (abandonment expenditure). The outputs from
this process have then been extensively further developed by Douglas-Westwood
to account for numerous possibilities and supplementary figures can be made
available upon request.
An acclaimed series
The North Sea Offshore Decommissioning Report is the latest in an acclaimed
series of energy business studies by Douglas-Westwood used by organisations in
over 70 countries. These include the oil majors, investment banks, offshore
contractors, agencies and departments of governments. This study is produced
in association with Deloitte.
Table of Contents
Document Contents
Executive Summary & Conclusions - market scenarios and key outputs
Regulatory Requirements - legislation, guidelines and planning for
decommissioning within the regulatory process
The Decommissioning Process - well abandonment & shutdown, decommissioning
of process and utility systems. Topside, steel jacket and concrete base
removal. Offshore disposal, pipeline abandonment and site clearance &
verification
Methodology - well plugging, abandonment & infrastructure renewal. Cost
estimates for well decommissioning, platform removal. HTV & PSV costs,
offshore decommissioning and recycling and total cost of decommissioning
activity throughout the North Sea region
United Kingdom - breakdown of costs for UKCS
Norway - breakdown of costs for Norway
Denmark - breakdown of costs for Denmark
Netherlands - breakdown of costs for the Netherlands
Ireland - breakdown of costs for Ireland
Total Market Forecast - forecast figures for North Sea region
Appendix - International, European & Domestic law, environmental
conventions, health, safety and environmental legislation. A summary of main
decommissioning activities requiring approval
The North Sea Offshore Decommissioning Report published by Douglas-Westwood in November 30, 2011. This report price starts from US $ 10480.
