The growing importance of clearer decommissioning costs for the UK offshore industry

Posted by Andy Norman on 23-Aug-2016 10:00:16

A requirement to understand decommissioning costs is becoming more important as operators in maturing basins begin to make decisions on their oldest of assets. While definitive costs are still to be put on paper by operators, the supply chain, and trade associations alike, feel that cost uncertainty may be preventing some decommissioning projects from happening.

Oil & Gas UK’s most recent Decommissioning Insight Survey gave the oil and gas industry the best intelligence and insight into decommissioning costs yet. Between 2015 and 2024, Oil & Gas UK anticipate over £16.9 billion will be spent on decommissioning on the UK Continental Shelf (UKCS) alone – with 45% of the cost going towards the plugging and abandonment of wells. More insight into the costs outlined in the Decommissioning Insight Survey can be seen on our infographic.

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Topics: decommissioning

Why subsea technology is vital to the future of the UKCS

Posted by Andy Norman on 09-Aug-2016 10:04:03

There was little surprise when Subsea UK revealed in June 2016 that 90% of respondents to their survey had recorded a decrease in sales over the previous 18 months. As Subsea UK’s Chief Executive Neil Gordon explained, “The decrease in the oil price and subsequent industry-wide downturn has seen a massive reduction in CAPEX and OPEX budgets worldwide… putting the UK sector’s enviable world-leading position under threat.”

Despite the drop in sales and confidence in the industry, the UK subsea sector is maintaining its high levels of investment in technology with almost 80% of respondents still investing in new technology to secure long-term future growth. With an appetite to invest their way out of the industry’s dip, we take a look at the state of the subsea technology industry and how the future of the UKCS industry depends on it too.

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Topics: offshore asset life extension

Norwegian waters leads offshore field discoveries in 2016

Posted by Andy Norman on 26-Jul-2016 10:00:00

With oil prices increasing almost week-on-week in Q2 of 2016 globally, and new reservoir discovery stories littering the industry press, it’s fair to say the offshore industry is in a far more buoyant mood than they were six months ago.

With the surge in oil rig count the industry has responded by increasing offshore field exploration activity. One region, in particular, has made significant strides to tap into new reserves, and that region is Norway.

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Topics: offshore asset life extension

UKCS decommissioning and field life extension priorities revealed

Posted by Andy Norman on 19-Jul-2016 10:00:00

The Oil & Gas Authority (OGA) began to take the first steps towards influencing and regulating the UK oil and gas industry with the recent publication of their Decommissioning Strategy. With the core aim of maximising economic recovery from the UK Continental Shelf (UKCS), the 18-page report underlines what the UK industry can do to successfully complete decommissioning projects, as well as use the time to innovate, upskill and reduce costs throughout.

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Topics: offshore asset life extension

Implementing best practices to ensure well integrity in the Middle East

Posted by Andy Norman on 06-Jul-2016 10:34:46

The deteriorating condition of over-worked and ageing assets in the Middle East is a reality. Figures at the start of 2016 suggest that in the next decade, 800 fixed platforms in the Middle East will surpass their asset life – 75% of these assets are already 25 years old or over.

As well as ageing factors, the region, particularly the Gulf Cooperation Council (GCC) states, are also beginning to suffer the effects of technical and geological factors. Fields built pre-1970s, for example, are unlikely to include stainless steel due to the material not being commonplace during initial creation. This, of course, has led to severe corrosion problems, meaning mitigation strategies have had to be implemented to maintain integrity – something we’ve previously covered on the Claxton Engineering Insights Blog.

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Topics: offshore asset life extension, ALE, Middle East

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