Decommissioning: A Gold Mine or a Nuissance?

Decommissioning of offshore installations is both a cost burden to operators and a potential job and profit machine to contractors and service providers.

However, it has been a hot potato for offshore operators, who have been prolonging to deal with the issue for quite some time.

During the technical session on decommissioning held on the second day of Offshore Energy Exhibition and Conference in Amsterdam this Wednesday, the key message was that the decommissioning of outdated and non-producing oil and gas platforms cannot be delayed any more.

Speaking from an operator’s perspective, Peter Valkenier, Engineering and Construction Manager at Wintershall said that so far the best way to deal with decommissioning was to delay it as long as possible.

However, as explained by Valkenier, further delays might mean higher costs as there is a threat that regulations would become more stringent.

According to Aart Geurtsen, Project Coordinator at GDF Suez E&P, Nederland B.V., the main reason behind the continuous delays was the drive to fully exploit all the available opportunities a well or an oil field has to offer.

Before we start removing we must make sure we don’t miss any opportunities,Geurtsen said.

However, constant delays and not planning ahead have caused numerous headaches as the process itself is very complex and requires in-depth analyses before it can be implemented.

Simon Axon, Decommissioning Consultant, Centrica Energy E&P, explained the process itself, stressing the need for data collection and early planning, which can in the end save operators money.

“Soon is not soon enough,” Axon said, adding that the more information it can be collected, the better.

In conclusion, speakers agreed that decommissioning is here to stay and that it has to be done.

Paul Yeats from Oceaneering said that the key thing when it comes to decommissioning is driving efficiencies. For this to be done in a cost effective way, stakeholders need to cooperate and consider pooling their resources through joint decommissioning campaigns to save money.

“Decommissioning projects have to be done, there is no way around it,”  Eric van Ewijk, Asset Manager with EBN BV, who moderated the session said.

World Maritime News Staff