Offshore Decommissioning Conference Fairmont Hotel, St Andrews 8 th October 2014 Delivering the Future Together Delivering The Future Together: Nigel Jenkins CEO Decom North Sea Nigel Jenkins, Chief Executive
Delivering DNS, Members, Stakeholders : Streamlined Decom Template ECE EIA ITF Outputs Market Intelligence Streamlined Decommissioning programme Lessons Learnt (With DECC and O&GUK) Standard Contracts Multiparty Well P&A Cost Reduction Mattresses
Project Ideas Listening to Members Workshops Open Space Consultations Prioritised Projects Facilitated Sessions Member Surveys Face to Face Meetings
Delivering: help us deliver the projects industry needs
The Future Summary of Activity
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So What Does That Mean For Specific Operators? Summary of Activity Operators current expectations are being outlined, however scopes are sometimes not firm and still subject to change/approval.
Activity in the Norwegian Sector Conoco Phillips: Removal of 10 platforms in the Ekofisk field complete Last topside removed 2014, onshore disposal into 2015 Next removal campaign: pre-planning started P&A of 23 wells starting in Q4 2014 3-4 Topsides to remove, preparing for tender process 4-5 Substructures to remove, preparing for tender process Onshore Disposal preparing tender process ExxonMobil Jotun B under consideration for removal
Activity in the Norwegian sector Statoil Gullfaks SPM loading buoys dismantling and disposal ongoing TOGI manifold disposed at Stord H7 platform from German sector removed and disposed (for Gassco) B11 platform from German sector removal underway (for Gassco) Ekofisk 2/4S jacket offloaded at Stord for dismantling and disposal (for Gassco) Huldra under consideration for removal BP Ekofisk 2/4G (Valhall RP) equipment removal and topsides being prepared for removal. Bridge removed in 2014. HOD and Old Valhall (QP, PCP, DP) forecast removal 2017-2020 Talisman: Decommissioning of YME Gamma MOPUStor forecast 2015-2016 Gyda engineering down & preparation for removal 2018//2019
Activity in Central & Northern North Sea Schiehallion/Loyal regulatory approval obtained in June 2013 offshore removal & onshore disposal is underway of subsea pipelines and production flowlines etc. Don expected start date of 2015/16 subsea flowlines, injection equipment, control umbilicals and manifolds etc. Miller removal of ~28,000 tonnes topsides scheduled for 2016 removal of ~18,000 tonnes six leg jacket scheduled for 2017 overall completion by end 2018
Activity in Central & Northern North Sea Brae Field Decommissioning Programme Three fixed steel jacket platforms (Brae Alpha, Brae Bravo & East Brae) 85 platform drilled wells to P&A 87kT topsides to remove; 33kT sub-structures to remove Three subsea tiebacks (Central Brae, West Brae & Braemar) 19 subsea drilled wells to P&A 1000 T manifolds, templates and structures to remove 75 km flowlines, 38 km umbilical's, 195 km of pipelines, 57 km submarine cables Decommissioning Activities Project team established; Compliance activities on-going Studies in support of Decommissioning Programme Drill cuttings piles survey and sampling Brae Alpha drilling rig reactivated completion Q1 2014 Pilot well plug and abandonment to commence (3 4 wells) completion Q1 2015 Brae Bravo / East Brae rig recertification study to commence Q1 2015
Activity in Central & Northern North Sea BRENT Field: 4 Platforms (Alpha, Bravo, Charlie, Delta), 3GBS, 1 Steel Jacket. PreDecom Programme Study being finalised, robust stakeholder engagement ongoing. Finalising DECC Submissions P&A complete on Delta, ongoing on Bravo, 57 of 142 complete. Engineering Down Delta prior to single lift Onshore working closely with Able, Quay Upgrading ongoing Contracts with: Allseas (lift), Able (onshore disposal), WGPSN (decom services), Baker Hughes (Conductor Cutting/Removal, Archer (drilling services).
Activity in Central & Northern North Sea Quad 9 UK Sector, Leadon: Decommissioning Programme complete and submitted to DECC, Public Consultation now complete Programme and Environmental Statement submitted Preparation/engineering for well P&A ongoing (18 wells), Subsea Structures (3x300Te) and bundles remain in place Awaiting DECC response to programme. Removal of controls equipment, concrete mattresses, infield jumpers and tree spools has commenced. No topsides; FPSO was relocated in 2006. Onshore recycling/disposal contract in place and items recovered to date recycled Maersk Oil have a DSV on-hire for 365 days in 2014, which has allowed decommissioning works to commence at Leadon. Decommissioning of both drill sites on Leadon field under consideration
Activity in Southern North Sea Planning for decommissioning projects: Markham ST-1 (6 wells 1,250Te topsides / 1,000Te jacket) Stamford (Sub-sea Tree) Rose Audrey 7X Bains Forecast timetable: 2014-2017 Potential for A-field: Ensign 4-legged Steel jacket NUI4 wells slots, 2 production wells 1 SS tie-back Alison, Ann, Annabel 5 production wells Export to TGT via LOGGS & WD Audrey A (WD) Steel Jacket NUI 8 Production wells Export to TGT via LOGGS Audrey B (XW) Steel jacket NUI 4 production wells no longer exporting
Activity in Southern North Sea Viking & LOGGS Satellites DECC Submissions for 3 7 programmes in 2015/17 plus corresp. studies/eia/stakeholder-engagements Well P&A 4 wells abandoned out of 34-well initial tranche to be later followed by a further 104 wells >20 pipelines being flushed/decommissioned in 2015/2016 expectation of limited need for pipeline retrieval/recovery Removal of 6 16 platforms commencing Q3/Q4 2015 Tender process ongoing Lift preparation commencing Q2 2015 Onshore recycling/disposal of 6 16 structures Tender process commencing.
Summary of Forecast Activity Circa 40 programmes in progress Circa 60 further programmes under discussion
The Future: Framed by the Wood Review and the Scottish Government TVA Report
The Wood Review New Regulator Action A25: A new single decommissioning forum responsible for delivering significant decommissioning cost reduction, promoting innovation & great cooperation, jointly led by the new regulator and industry Be more ambitious in what it seeks to achieve Set a radical target to reduce cost Work with the supply chain A26: Technology A27: No premature decommissioning A28: Late Life Business Models A29: Game changing decommissioning concepts
Scottish Independent Commission: Maximising TVA Report Government and the new Regulator should play a central role in developing a strategic approach to decommissioning with the aim of minimising decommissioning costs to the operators and the taxpayer and achieving the maximum economic extension of field life. A clear strategy is required to mobilise investment by the supply chain to ensure that technology, capability and capacity is in place, and that the TVA from decommissioning expenditure is optimised. To minimise the cost to both operators and the taxpayer, consideration should be given to encouraging a pipeline or cluster of decommissioning projects creating economies of scale, sharing knowledge and techniques.
Together? Collaboration delivering real business benefit Moving from talking to working to deliver tangible benefits DNS Projects DECC Initiatives PLUG O&GUK Work Groups Already Delivering to the Wood Review/TVA Agenda But: Initiative Overload?
Together!
The Future of Together Fewer, Focussed Initiatives 80:20 Coordination, Collaboration, Streamlining Best Person for the Job Focus on Delivering meaningful outputs
Delivering the Future Together Panel Session