Changing Tides

The tides are changing for the North Sea's oil and gas industry, according to a leading expert.

A major conference on decommissioning will get underway in St Andrews today.

Richard Heard, managing director of Aberdeen based Strategic Decom, explained that decommissioning is not the end of an era for oil and gas production but a major part of the late-life phase of an asset.

Mr Heard said: 

"Decommissioning is an exciting chapter in the history of the North Sea and demands the same ingenuity as the first years of oil and gas called for fifty years ago.

"Some of the greatest engineering challenges of our generation are fixed to the seabed, waiting to be tackled by the brightest minds. Blazing the decommissioning trail could set the UK apart as a pioneer and establish itself as an international leader in the field."

The cost of decommissioning oil and gas facilities in the North Seas has been estimated at £35 billion or more over the next twenty years, according to Oil and Gas UK, and the introduction of the 'Decommissioning Relief Deed' legislation in 2013 by the UK Government confirmed that the tax payer will account for between 50 and 70% of decommissioning costs.

Mr Heard said: 

"Our industry has a responsibility to demonstrate that the necessary plans are being made for decommissioning in the most cost effective manner. This was underpinned by the Wood Review earlier this year, which set out five actions focussed on decommissioning, including increasing collaboration and reducing decommissioning costs.

"As an industry we should understand the magnitude of this job and be excited by it.  We have been in a buoyant mood ever since oil and gas was discovered on the UK Continental Shelf, let’s continue that for generations to come.  We have a job to do – decommissioning not only 500 structures but also 10,000 miles of associated pipeline.

"Decommissioning is a specialism and combines engineering and design with science and safety with politics.  In a decade's time it will demand proven experience.  Those who have worked on the rigs for 10 to 15 years know them inside out and are arguably the best qualified to take them apart.  These people can become pioneers."

The three-day Offshore Decommissioning Conference event is due to start today, with hundreds of delegates expected to attend from the UK, Norway, The Netherlands and the USA.