UKCS Decommissioning Supply Chain · 2018-04-19 · This created a snapshot in time and provided a...

UKCS DECOMMISSIONING SUPPLY CHAINCAPACITY REPORT

March 2018

Produced by 1

EXECUTIVE SUMMARY 4

1 Introduction 8

2 Study fi ndings

2.1 Overall UKCS demand 9

2.2 Platform wells P&A 11

2.3 Subsea wells P&A 14

2.4 Subsea infrastructure removal 18

2.5 Topside removal 24

2.6 Substructure removal 26

2.7 Onshore remediation, dismantling and recycling 29

3 Conclusions 32

4 Recommendations for future studies 33

Appendix – Project methodology and approach 34

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ABBREVIATIONS CAR Controlled Activities Regulations (License)

CNS Central North Sea

CoP Cessation of Production

CSV Construction Support Vessels

DSV Dive Support Vessels

EIS East Irish Sea

HLV Heavy Lift Vessel

IS Irish Sea

LWIV Light Well Intervention Vessel

MDU Modular Drilling Units

MSV Multipurpose Support Vessel

NNS Northern North Sea

OGA Oil & Gas Authority

P&A Plugging & Abandonment

PBDR Platform Based Drilling Rigs

PPC Pollution Prevention and Control (Licence)

PWG Project Work Group

ROVSV ROV Support Vessel

RSA Radioactive Substance Authorisation

SE Scottish Enterprise

SNS Southern North Sea

SSCV Semi-submersible Crane Vessel

Te Metric Tonne

UKCS United Kingdom Continental Shelf

WML Waste Management License

WoS West of Shetland

2 Decommissioning Supply Chain Capacity Report

ACKNOWLEDGEMENTS

We would like to acknowledge the Project Work Group (PWG) for their guidance and valuable contributions:

• Robert McCaig – Babcock International Group

• Heather Woods – Decom North Sea

• Angela McKenzie – Decom North Sea

• Bill Cattanach – Oil & Gas Authority

• Sylvia Buchan – Oil & Gas Authority

• Karen Craig – Scottish Enterprise

• Davi Quintiere – Slalom

• Willem van Es – Wood

We would also like to thank the industry subject matter experts who contributed to the analysis and the participating companies for taking the time to respond to the survey, providing valuable data to assist with conducting an analysis of supply vs demand for 2017. Finally, we would like to thank Decom North Sea, Scottish Enterprise and the Oil & Gas Authority, for commissioning this report.

DISCLAIMER

This report has been commissioned by, and is intended for, Decom North Sea, Scottish Enterprise and the Oil & Gas Authority, and has been produced by Accenture (UK) Limited (referred to in this report as “Accenture” or “we”).

This report has been prepared for information purposes and the information contained in it is based upon data from third party sources, including participants of the Capacity Survey that were identifi ed as focal points by their organisations, memberships or directly by the Project Work Group, or otherwise from the participant’s company website. Accenture has relied upon the information provided by participants completing the Capacity Survey in the creation of this report. Where Accenture had reason to believe such information was inaccurate or incomplete, it has taken steps to verify the accuracy of the results of the Capacity Survey, where possible. No responsibility is accepted by Accenture for any inaccuracy or error in the information contained in this Report or any action taken or not taken in reliance on this Report.

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The decommissioning of oil and gas infrastructure on the United Kingdom Continental Shelf (UKCS) is an area of activity that is widely expected to increase due to the maturity of the basin.

This report, prepared by Accenture and commissioned by Decom North Sea, Scottish Enterprise and the Oil & Gas Authority, sets out the findings to a study conducted to provide a high-level baseline assessment of the current decommissioning capacity to service UKCS decommissioning demand.

The following six activity areas were identified for analysis:

1. Platform wells plugging and abandonment

2. Subsea wells plugging and abandonment

3. Subsea infrastructure removal

4. Topside removal

5. Substructure removal

6. Onshore remediation, dismantling and recycling.

Demand data was provided by the Oil & Gas Authority (OGA). The data numbered 165 projects and their associated or potential year of Cessation of Production (CoP) which ranged from 2011-2023. The number of platform and/or subsea wells per project and associated infrastructure tonnage for removal was also given.

Capacity to meet demand, referred to as supply data, was established by collating information from a survey questionnaire issued in summer 2017 to relevant companies in the supply chain that could provide key assets or equipment to carry out these six key activities.

The demand and supply data were analysed to assess the extent to which the supply chain would be able to meet the need for forthcoming decommissioning projects. This created a snapshot in time and provided a baseline of current supply capacity in relation to current anticipated demand.

The overall conclusion from this research is that current supply chain capacity appears sufficient, and at times, surplus, to meet estimated demand for decommissioning activities on the UKCS.

The industry is, however, subject to evolving macroeconomic and market conditions and has been (and will continue to be) disrupted by forces that go far beyond supply and demand. These external forces may have a significant impact on UKCS decommissioning capacity:

• Oil price fluctuations

• Regulatory framework

• Increasing competition for the UK supply chain

• New decommissioning-centric technologies and processes

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EXECUTIVE SUMMARY


Key observations for the specific activity areas were:

Platform Wells P&A

• 804 platform wells will require P&A based on current potential CoP dates to 2023.

• Overall there appears to be sufficient capacity in 2017/18 to meet this potential demand.

• If activity proceeds as estimated the CNS may experience capacity constraints in 2018.

• The NNS region is likely to be reliant on MDUs for P&A activity due to water constraints associated with jack ups.

• Platform-Based Drilling Rigs (PBDRs) may be reactivated to carry out platform well P&A and would help to mitigate capacity constraints.

Subsea Wells P&A

• 462 subsea wells will require P&A based on current potential CoP dates to 2023.

• Current supply clearly outstrips potential demand, and the backlog of pre-2017 activities could easily be accommodated in the forthcoming years.

• Non-responses to the survey mean additional capacity is likely to exist.

Subsea Infrastructure Removal

• 98 projects have subsea infrastructure removal requirements based on current potential CoP dates to 2023.

• 88 projects relate to removal of subsea infrastructure up to 400Te, accounting for a cumulative total of 6,395Te and requiring an estimated 1,320 project days to complete.

• 10 projects relate to removal activities above 400Te, accounting for a cumulative total of 9,190Te and requiring an estimated 210 days to complete.

• Current capacity far outstrips demand for subsea infrastructure removal, and the backlog of pre-2017 activities is not expected to have a significant impact.

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• 115 projects were identified with topside removal requirements based on CoP up to 2023.

• The cumulative removal total was 491,335Te requiring an estimated 579 days for removal.

• Demand for topside removals was estimated to peak between 2019 and 2020.

• Current removal capacity is almost double decommissioning demand and the pre-2017 backlog of activity is not expected to have a significant impact.

• Future capacity will be subject to the level of development and decommissioning projects on the UKCS and globally, as well as activities in other sectors such as offshore wind farm construction.

Substructure Removal

• 109 projects were identified with substructure removal requirements based on CoP up to 2023.

• Total substructure tonnage for removal was 294,740Te, requiring an estimated 1,015 vessel days.

• Demand for substructure removals is likely to peak between 2018 and 2021.

• Current capacity exceeds demand for removal of substructures weighing less than 4,000Te.

• Current capacity for substructures over 4,000Te appears sufficient to meet current demand.

• Non-responses to the survey mean vessel availability may in fact be significantly higher.

Onshore Decommissioning

• A total of 801,660Te of infrastructure was estimated for removal from the UKCS, requiring a total of 15,241 days of onshore work

• Demand for onshore activities is likely to peak in 2021–2022 and heavily concentrated on assets recovered from the CNS and SNS.

• 63% of quaysides and 61% of yards have laydown areas which would not be able to accommodate large platforms.

• Supply and demand for onshore activities were separate aspects due to different data criteria that could not be overlaid.


Conclusions

Overall, the research revealed that with current market conditions there appears to be sufficient supply chain capacity to meet the short/medium term demand expected for decommissioning activities on the UKCS. However, this could quickly change should there be a significant upturn in investment across the basin and subject to the extent of utilisation of the UK supply chain by other industries.

It can therefore be concluded that the sector currently has a window of opportunity, where unit rates for equipment and services are likely to be lower than historical norms, providing prospects for relatively low-cost decommissioning should mechanisms be found to bring currently deferred work to the market. Given the cyclical nature of the oil and gas sector, it is highly likely that these conditions will not last. Thus, a focus on ensuring that project approval and commencement decisions are made swiftly can be expected to maximise the opportunities to take advantage of such market conditions in future. This will need to include regulatory submission and approval, conceptual and detailed engineering, procurement and contracting, and timely access to capital.

Please see Page 33 for a full list of recommendations for improvement to future studies.

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1 | INTRODUCTION

The UK oil and gas industry is undergoing a transition, as it strives to adapt to lower oil prices and improve the competitiveness of the United Kingdom Continental Shelf (UKCS), amidst increasing basin maturity. This is critical for securing future developments, maximising economic recovery from existing fi elds and for decommissioning the infrastructure once production has ceased.

With decommissioning activity widely expected to increase over the next ten years the aim is to ensure the supply chain has the necessary capacity to meet decommissioning demand safely and cost effi ciently.

This report, prepared by Accenture and commissioned by Decom North Sea, Scottish Enterprise and the Oil & Gas Authority, sets out the fi ndings to a study conducted to provide a high-level assessment of the current decommissioning capacity to service UKCS decommissioning demand. It aims to generate greater understanding of supply and demand factors to create visibility and alignment of planning and investment decisions.

The Oil & Gas Authority has set a target for the industry of reducing decommissioning costs to £39 billion (a 35% reduction on current estimates).1 Delivering these effi ciencies will undeniably present challenges, but importantly, opportunities too.

The UK, compared to other oil and gas producing nations, is most advanced in its thinking and leadership around decommissioning. From the regulatory approach, the

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experience gained, and learning disseminated; these attributes provide the impetus to become a world-leader in decommissioning. Achieving that will require an effi cient and eff ective UK supply chain which is prepared for and fl exible to meet decommissioning demand growth in the UKCS and internationally.

The study utilised data, provided by the OGA, on projects that had already ceased production or had potential cessation of production (CoP) dates to 2023 – “demand data”. A survey questionnaire was issued to relevant companies in the supply chain to determine market availability of critical assets or equipment – “supply data” - to carry out the following six activities:

1. Platform wells plugging and abandonment

2. Subsea wells plugging and abandonment

3. Subsea infrastructure removal

4. Topside removal

5. Substructure removal

6. Onshore remediation, dismantling and recycling.

The availability of people, services and secondary equipment supplementing these activities was generally considered to have no current critical constraints, therefore did not form part of the study.

The demand and supply data were analysed to assess the extent to which supply capacity would be able to meet the need for forthcoming decommissioning projects (see Appendix for detailed approach). This created a snapshot in time and provided a baseline of current supply capacity in relation to current estimated demand.

1 (source: OGA, Decom North Sea, Accenture)

Figure 1 - Decommissioning Market Levers

1Oil & Gas Authority, UKCS Decommissioning 2017 Cost Estimate Report


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2.1 OVERALL UKCS DEMAND

Initial analysis of the data provided by the OGA enabled a broad picture of estimated decommissioning requirements to be drawn. From a total of 165 projects, with estimated cessation of production dates up to 2023, a breakdown based on UKCS location and activity was discerned. A visual representation of the data is shown in Figure 2.

Figure 2 – Aggregate UKCS decommissioning demand (based on CoP to 2023)

It is important to note that the demand data shown is indicative, due to largely being based on potential cessation of production (CoP) dates which are subject to market conditions and susceptible to change.

2 | STUDY FINDINGS

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Decommissioning Activity Number Demand Days*

Platform Wells P&A 804 29,400

Subsea Wells P&A 462 17,700

Subsea Infrastructure Removal <400Te

88 1,320

Subsea Infrastructure Removal >400Te

10 210

Topside Removal 115 579

Substructures Removal 109 1,015

Onshore Dismantling (tonnes) 801,660 15,241

The overall demand data was then analysed per decommissioning activity against supply data from the survey questionnaire.

Importantly, only a few projects have firm timescales, and many are still in their early planning stages. The projects also include several with uncompleted activities associated with facilities that ceased production prior to 2017. These have been deferred, creating a backlog that will need to be rescheduled in coming years, and which appear in the demand analysis as activities expected in years 2013-2016.

To enable analysis of demand and supply data, the number of days potentially required to carry out each activity was calculated, as shown in Figure 3.

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Figure 3 – Aggregate UKCS decommissioning demand days (based on CoP to 2023)

* A detailed explanation of the methodology and assumptions employed is provided in the Appendix.


2.2 Platform wells P&A

To assess demand for platform wells P&A, the potential ‘demand days’ for each year was estimated based on potential CoP dates through to 2023. To do so, assumptions were made that P&A activities would be carried out in the same year as CoP and that the duration of P&A for each platform well would be 32 days, and for installations with more than 10 wells, 1 in every 10 would require an additional 100 days.

The results are shown in Figure 4. The analysis provides a view of likely commencement, volume and duration of P&A activities in each region.

For the 804 platform wells identified, P&A is estimated to require a total of 29,400 days.

Importantly, 93% of this demand relates to the CNS and SNS regions, with little activity required in the IS (including EIS) and NNS and none in the WoS. The concentration revealed as many as 77% of platform wells related to just 30% of projects. In the CNS, there are 13 multi-well projects covering a total of 385 wells. Indeed, one CNS project covers as many as 142 wells. In the SNS there are 9 multi-well projects covering 192 wells and in the NNS a single multi-well project covers a total of 42 wells. These multi-well projects provide opportunity to reduce costs by leveraging continuous improvement and forging collaborative projects and innovative commercial arrangements.

The data shows a clear peak of overall platform P&A demand in 2018. It should be noted that several abandonments, relating to data for 2015–2017, will need to be rescheduled with the potential impact of pushing P&A activity into later years which may have the effect of creating further peaks in demand.

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Platform Well P&A (Demand): Potential No of Days by Region

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Figure 4 – UKCS platform wells P&A potential demand days by region (2015–2023)

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On the supply side, a total of 53 jack-ups and 5 Modular Drilling Units (MDU) were identified as presently able to operate in the UKCS. These figures were derived from the survey, which achieved a response rate of over 60% (see Appendix for details). The potential availability of these assets for each UKCS region is set out in Figure 5.

Figure 5 – Number of available drilling rigs/units by type and region

A key issue identified concerned availability of jack-ups, which was assessed based on the water depth each asset could operate in. This led to the conclusion that jack-ups are generally not suitable for NNS operations, meaning this region would be dependent on MDUs. However, rig availability would be dependent on a broader set of factors including geographical area, operational constraints, services provided by the asset, platform configuration and project specifics.

To assess the supply chain’s current capacity to meet likely future demand, the survey results were used to calculate the maximum number of potential available days for each asset type over 2017/18. This resulted in 6,761 days for Jack-up rigs and 931 days for MDUs. It should be noted that this represents maximum capacity and does not account for work conducted simultaneously in multiple regions, or for potential increases in demand elsewhere such as exploration and production drilling.

This snapshot of current availability was compared against potential demand. The results for the whole of the UKCS are shown in Figure 6.

Figure 6 – UKCS platform wells P&A demand vs supply (2015–2023)Platform Well P&A Supply: Potential Supply vs Demand (Total)

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The analysis however did not account for P&A that could be undertaken using existing platform-based drilling rigs (PBDR). There are examples of PBDR being refurbished to carry out P&A, however, maintenance and refurbishment can be costly and possibly prohibitive. It is recommended that future studies incorporate this parameter.

Summary

For platform wells P&A activity across the whole of the UKCS, there appears to be more than enough current capacity to meet likely future demand. However, areas of concern were identified in two regions: the CNS and NNS.

Figure 6 shows that, in general, available supply throughout 2017/18 outstrips likely demand in every year except 2018. However, the backlog of activities from pre-2017 is likely to alter demand in subsequent years.

At a regional level, the picture is much the same. In regions like the IS (including EIS) and the SNS, there appears to be sufficient capacity to meet current potential platform wells P&A demand, including in 2018. The only immediate area of concern is the CNS, where demand appears to outstrip available supply in 2018 (see Figure 7). The CNS may experience capacity constraints in 2018 given this likely demand for platform wells P&A.

Figure 7 – CNS platform wells P&A demand vs supply (2015–2023)Platform Well P&A Supply: Potential Supply vs Demand (CNS)

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Key observations and recommendations

• 804 platform wells will require P&A based on current potential CoP dates to 2023

• Overall there appears to be sufficient capacity in 2017/18 to meet this potential demand

• If activity proceeds as estimated the CNS may experience capacity constraints in 2018

• The NNS region is likely to be reliant on MDUs for P&A activity due to water depth constraints associated with jack ups

• Platform-Based Drilling Rigs (PBDRs) may be reactivated to carry out platform well P&A and would help to mitigate capacity constraints. This parameter did not form part of the analysis and is recommended for inclusion in future studies.

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2.3 Subsea wells P&A

To assess demand for subsea wells P&A, the potential ‘demand days’ for each year was estimated based on potential CoP dates through to 2023. The assumptions made were that P&A activities would be carried out four years after CoP, except for the SNS where it was assumed activity would take place after two years.

The duration of P&A for each subsea well was estimated as 32 days, and for fields with more than 10 wells, 1 in every 10 would require an additional 100 days. The results are shown in Figure 8. The analysis provides a view of likely commencement, volume and duration of P&A activities in each region. It should be noted that a small number of subsea abandonments relating to 2011–2017 will need to be rescheduled which will marginally alter subsequent demand.

Figure 8 – UKCS subsea wells P&A potential demand days by region (2015–2027)

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Subsea Well P&A (Demand): Potential Total No of Days by Region

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For the 462 subsea wells identified, P&A was estimated to require a total of 17,700 days.

Figure 8 shows subsea well P&A activity increasing over the coming years, potentially peaking around 2024. Demand is concentrated in the CNS and NNS regions, representing 81%. The remaining activity is equally split between the SNS and WoS and none expected in the IS (including the EIS). Nearly half (43%) of subsea wells relate to just 9% of projects. In the CNS there are 6 multi-well projects covering 114 wells. The NNS has 3 projects covering 37 wells and the WoS region has a single project covering 46 wells. These multi-well projects provide opportunity to reduce costs by entering into collaborative ventures, innovative commercial arrangements, and leveraging continuous improvement.

On the supply side, a total of 118 vessels/rigs were identified with current capacity to undertake subsea wells P&A in the UKCS. This figure was derived from the survey, to which nearly two thirds responded (54 from a total of 86 companies contacted). The potential availability of these assets in each region is set out in Figure 9. It should be noted that availability was assessed based on the water depth each could operate in but this is likely to be dependent on a broader set of factors including geographical area, operational constraints, services provided by the asset, platform configuration and project specifics.

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Figure 9 – Number of available vessels/rigs by type and region

Based on this availability, and to assess current capacity to meet likely future demand, the results were used to calculate the maximum number of potential available days over 2017/18, for each asset type by region. This resulted in total availability of 1,038 days for LWIVs, 7,609 days for Jack-up rigs, 5,697 days for Semi-Subs and 1,303 days for Supply Vessels with Modular Spreads. A snapshot of this availability compared against potential demand for the whole of the UKCS is shown in Figure 10.

This shows that current supply appears to clearly outstrip projected annual demand. This does however represent maximum capacity and does not account for work conducted simultaneously in multiple regions, or for potential increases in demand elsewhere such as exploration and production drilling or other marine sectors.

Figure 10 – UKCS subsea wells P&A demand vs supply (2015-2027)

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The results for the CNS, NNS, WoS and SNS regions are set out in Figures 11 to 14. Demand in the CNS and NNS begins to grow from 2019 onwards although this appears to be variable. This may be smoothed significantly as project schedules are developed. Current availability does appear to be sufficient, but there may be limited capacity to undertake rig-less activity (with LWIVs and Supply Vessels with Modular Spreads) if well complexities permit this approach. Demand in the WoS and SNS regions (Figures 13 and 14) are expected to be limited.


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LWIV 7 7 7 7 7

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Figure 12 – NNS subsea wells P&A demand vs supply (2015-2027)Subsea Well P&A: Potential Supply Vs Demand (NNS)

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Figure 11 – CNS subsea wells P&A demand vs supply (2015-2027)

Figure 13 – WoS subsea wells P&A demand vs supply (2015-2027)

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Figure 14 – SNS subsea wells P&A demand vs supply (2015-2024)Subsea Well P&A:Potential Supply Vs Demand (SNS)

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Figure 14

For subsea wells P&A, there appears to be sufficient capacity at present to meet current projected decommissioning demand. It also appears that the backlog of activities dating from before 2017 could easily be accommodated in the forthcoming years.

The survey was subject to non-responses, therefore additional capacity is likely to exist. Moreover, evolving macroeconomic and market conditions are likely to alter, and potentially reduce capacity for subsea wells P&A. Rigs or vessels may secure work associated with exploration and production activity or overseas. Equally older assets may be taken out of service and ‘stacked’ and new capacity may enter the market. There is therefore currently an economic window of opportunity, but significant capacity could be moved from the basin or scrapped if not utilized which would place upward pressure on availability and costs.


• 462 subsea wells will require P&A based on current potential CoP dates to 2023

• Despite this demand, subsea wells P&A current supply clearly exceeds potential demand, and the backlog of pre-2017 activities could easily be accommodated in the forthcoming years.

• Non-responses mean additional capacity is likely to exist. This factor should be considered, and appropriate treatment incorporated in future studies.

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2.4 Subsea infrastructure removal

A total of 98 projects were identified with subsea infrastructure removal requirements. To assess demand for subsea infrastructure removal, the potential ‘demand days’ for each year was estimated based on potential CoP dates through to 2023. The assumptions made were that removal activity would take place four years after CoP, except for in the SNS where this was assumed to be two years after CoP. The duration of subsea removal activities was estimated based on the tonnage to be removed. Figure 15 shows the number of removal days to be utilised associated with subsea infrastructure, ranging from 15 days for projects with less than 500 tonnes of recovered material to a maximum of 40 days for more than 2,001 tonnes.

Figure 15 – Subsea infrastructure removal days by weight (Te)

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In parallel, the analysis of supply capacity has defined vessel suitability based on a 400Te vessel capability, as this best reflects the boundary point between vessel types with differing capabilities for these activities.

The results are shown in Figures 16 and 17. This gives a picture of the likely commencement, volume and duration of subsea infrastructure removal activities in each region (note that the data only accounts for actual removal operations, not preparatory work).

Both graphs show demand for subsea infrastructure removal peaking between 2019 and 2024.

Figure 16 represents 88 projects with associated subsea infrastructure removal up to 400Te. Cumulatively this accounts for 6,395Te, requiring an estimated 1,320 project days to complete. Initial demand is concentrated in the SNS region, with a shift to a focus on the CNS region from 2021 onwards. The NNS and particularly the WoS area make minor contributions to the demand.

A crucial point to note is that 61% of these removal projects are below 100Te. Consequently, actual demand days may be significantly more than forecast due to the potential for inefficiencies associated with small individual projects and a greater number of mobilisation/demobilisation activities. These projects would ideally be candidates for multi-operator/multi-project decommissioning campaigns to deliver more cost-effective activities.

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Subsea Tonnage 0 - 500 501 - 1,000 1,001 - 2,000 >2,001

Removal Days 15 20 30 40


Figure 16 – UKCS subsea infrastructure removal potential demand days by region (up to 400Te)

Subsea Infrastructure Removal (Demand): Potential Days for project up to 400Te, by Region

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Figure 16

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Figure 17 represents 10 projects with associated subsea infrastructure removal over 400Te, accounting for cumulative removal of 9,190Te with an estimated 210 days to complete.

Figure 17– UKCS subsea infrastructure removal potential demand days by region (above 400Te)Subsea Infrastructure Removal (Demand): Potential Days for projects above 400Te, by Region

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Figure 17

On the supply side, data was received from approximately 60% of companies surveyed (49 out of 78 contacted). A total of 36 vessels were identified as available for activities on subsea infrastructure up to 400Te and eight Heavy Lift Vessels (HLV) for infrastructure above 400Te.

The assessment was made according to the water depth each vessel could operate in. However, it is important to note that other variables can impact this availability (operational constraints, geographical area, services provided by the vessel, project specifics) which have not been considered in this analysis. The availability breakdown for each region and activity is shown in Figures 18 and 19.

19

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2To assess current capacity to meet future demand, the survey results were used to calculate the maximum number of potential available days for each vessel type per region (“available vessel days” – see Appendix for calculation). This snapshot of current availability was compared against potential demand.

While demand over the coming years was estimated at 1,320 days for projects up to 400Te) and 210 days for projects above 400Te, available supply for 2017/18 was estimated to be 1,571 days for CSVs; 796 days for DSVs; 1,058 days for MSVs; 1,043 days for ROVSVs and 716 days for HLVs.

The snapshot of current availability compared against potential demand for the CNS, NNS, SNS and WoS regions are set out in Figures 20 to 26.

In general, there appears to be far more capacity than is required to meet current demand for subsea infrastructure removal (both for infrastructure up to 400Te and for infrastructure above 400Te). Moreover, any backlog of pre-2017 activities is not expected to have a significant impact. However, it should be noted that this represents maximum capacity and does not account for work conducted simultaneously in multiple regions, or for potential increases in demand elsewhere globally.

TypesTotal Available

VesselsRemoval of

Pipelines

Removal of Subsea Structures

(manifolds, WHPS, concrete bases)

Removal of Pipeline Stabilisation aids

(mattresses)

CNS 31 19 24 18

NNS 30 19 23 18

SNS 36 20 28 21

WoS 30 19 23 18

TypesTotal Available

VesselsRemoval of

Pipelines

Removal of Subsea Structures

(manifolds, WHPS, concrete bases)

Removal of Pipeline Stabilisation aids

(mattresses)

CNS 6 6 6 4

NNS 5 5 5 3

SNS 8 8 8 5

WoS 6 6 6 4

Figure 18 – Number of available vessels by subsea infrastructure type and region (up to 400Te)

Figure 19 – Number of available HLV by subsea infrastructure type and region (above 400Te)


Figure 20 – CNS subsea infrastructure demand vs supply (up to 400Te)

Subsea Infrastructure Removal (Supply): Potential Supply Vs Demand (CNS) up to 400 Te

1,571

745689

1,043

CSV DSV MSV ROVSV


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Figure 20

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Figure 21– CNS subsea infrastructure demand vs supply (above 400Te)

Subsea Infrastructure Removal (Supply): Potential HLV Supply Vs Demand (CNS) above 400 Te

504

HLV


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Potential CNS Demand above 400Te

Figure 21

In the CNS region, demand appears to peak in the period 2021 – 2024 with a mix of both small (<400Te) and larger projects. Suitable vessel supply capacity appears to be good for all categories of vessel.

Figure 22 – NNS subsea infrastructure demand vs supply (up to 400Te)

Subsea Infrastructure Removal (Supply): Potential Supply Vs Demand (NNS) up to 400 Te

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Potential NNS Demand up to 400Te1,571

745643

1,043

CSV DSV MSV ROVSV

Potential Supply (2017 -2018)

Figure 22

21

Subsea Infrastructure Removal (Supply): Potential HLV Supply Vs Demand (SNS) above 400 Te

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Figure 25

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Subsea Infrastructure Removal (Supply): Potential HLV Supply Vs Demand (NNS) above 400 Te

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411

HLV


Figure 23

Subsea Infrastructure Removal (Supply): Potential Supply Vs Demand (SNS) up to 400 Te

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Potential SNS Demand up to 400Te1,571

796

1,058 1,043

CSV DSV MSV ROVSV


Figure 24

Figure 23 – NNS subsea infrastructure demand vs supply (above 400Te)

In the NNS region, demand appears to be limited with activity spread unevenly across the period from 2019-2027 with large projects not expected to occur before 2025. Suitable vessel supply capacity appears to be good for all categories of vessel.

Figures 24 – SNS subsea infrastructure demand vs supply (up to 400Te)

Figures 25 – SNS subsea infrastructure demand vs supply (above 400Te)


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In the SNS region, demand appears to be grow rapidly from 2017 until declining significantly after 2020. The majority of projects are small (<400Te) and suitable vessel supply capacity appears to be good for all categories of vessel.

Figure 26 – WoS subsea infrastructure demand vs supply (up to 400Te)Subsea Infrastructure Removal (Supply): Potential Supply Vs Demand (WoS) up to 400 Te

0

200

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Potential WoS Demand up to 400Te1,571

745643

1,043

CSV DSV MSV ROVSV

Potential Supply (2017 -2018)

Figure 26

WoS activity is limited to a single small (<400Te) project in 2024 and suitable vessel supply capacity appears to be good for all categories of vessel.

Summary

Current capacity was found to exceed current decommissioning demand for subsea infrastructure removal both up to and above 400Te. The backlog of pre-2017 activities is not expected to have a significant impact.

Furthermore, a large surplus in capacity is likely to affect contractor ability to maintain investment, representing a risk to the supply chain’s ability to meet future decommissioning demand. Evolving macroeconomic and market conditions are also likely to alter capacity. A favourable shift may see assets deployed in non-decommissioning projects or overseas.

Alternatively, assets may even be sold. There is therefore a current window of opportunity with over-capacity and an opportunity for activities to be executed cost-effectively.


• 98 projects have subsea infrastructure removal requirements based on current potential CoP dates to 2023.

• 88 projects relate to removal of subsea infrastructure up to 400Te, accounting for a cumulative total of 6,395Te and requiring an estimated 1,320 project days to complete.

• 10 projects relate to removal activities above 400Te, accounting for a cumulative total of 9,190Te and requiring an estimated 210 days to complete.

• Current capacity far outstrips demand for subsea infrastructure removal, and the backlog of pre-2017 activities is not expected to have a significant impact.

23

2.5 Topside removal

To assess demand for topside infrastructure removal, the potential ‘demand days’ for each year was estimated based on potential CoP dates through to 2023. The assumptions made were that topside removal activity would take place two years after CoP, except for in the SNS where this was assumed to be one year after CoP. The duration of topside removal activities for each region was estimated based on vessel days per tonnage range, shown in Figure 27.

Figure 27 – Topside removal vessel days (per tonnage range) by region

SUPP

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AN

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NA

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2

In total, 115 projects were identified with topsides removal requirements between 2013 and 2025, comprising a total tonnage of 491,335Te and requiring an estimated 579 vessel days for removal (note this considers actual removal operations, not preparatory work).

Figure 28 demonstrates most of these projects are concentrated in the CNS and SNS regions, which account for 94% of all projects. There are no topsides to be removed in the WoS region. The graph shows that demand for topside removals is likely to peak between 2019 and 2020. Projects associated with activity dates prior to 2017 are caused by a current backload of unexecuted work relating to facilities with CoP dates prior to 2017.

Figure 28 – UKCS topside removal potential demand days by region (2013–2025)Topside Removal (Demand):Potential Topside Demand Days, by Region

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Figure 28

On the supply side, validated survey data was received from 57% of companies contacted with vessels potentially suitable to undertake topsides removal. Fourteen Heavy Lift Vessels (HLVs) were identified as currently available to perform decommissioning work.

To assess current capacity to meet future demand, the survey results were used to calculate the maximum number of potential available days for each HLV per region (“available vessel days” – see Appendix for calculation). The results are shown in Figure 29 together with the number of available HLVs per region.

Topside Tonnage

0 – 1,600 1,601 -4,000 4,001 - 8,000 8,001 - 16,000 >16,000

CNS, NNS 1.25 3.75 6.25 12.5 27.5

IS (including EIS), SNS

1.25 3.75 5 - -


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This snapshot of current availability was compared against potential demand, shown in Figure 30.

Figure 30 – UKCS topsides removal demand vs supply (2013-2027)Topside Removal:Potential Total Max Supply Vs Demand

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1,200

2013

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Potential Total Demand1,142

HLV


Figure 30

Based on the total 579 estimated demand days, the total available capacity was almost double, revealing significant available excess supply. Any backlog from pre-2017 activities is not expected to have a significant impact. Analysis at the regional level revealed similar results.

Summary

For topside removal activities on the UKCS utilising HLV, analysis reveals there is presently excess capacity to meet decommissioning demand. HLVs are however highly mobile, therefore future capacity will be determined by the level of development and decommissioning projects both on the UKCS and globally, as well as activities in offshore renewables projects.

Key observations

• 115 projects were identified with topside removal requirements based on CoP up to 2023.

• The cumulative removal total was 491,335Te requiring an estimated 579 days for removal (not including time for preparatory work).

• Current removal capacity is almost double decommissioning demand and the pre-2017 backlog of activity is not expected to have a significant impact.

• Future capacity will be subject to level of development and decommissioning projects on UKCS and globally, as well as activities in other sectors such as offshore wind farm construction.

Figure 29 – Number of available Heavy Lift Vessels by region


operate in CNS

Qty that can operate in IS

(including EIS)

Qty that can operate in NNS

Qty that can operate in SNS

HLV 14 11 14 8 14

Number of Days Available

by Region- 1,081 1,142 699 1,142

25

2.6 Substructure removal

To assess demand for substructure removal, the potential ‘demand days’ for each year was estimated based on potential project CoP dates up to 2023. The assumptions made were that substructure removal activity would take place three years after CoP, except in the SNS where this was assumed to be one year after CoP. The duration of substructure removal activities for each region was then estimated based on vessels days per tonnage range shown in Figure 31.

Figure 31 – Substructure removal vessel days (per tonnage range) by region

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2

In total, 109 projects were identified with substructure removal requirements between 2014 and 2026, comprising a total tonnage of 294,740Te and requiring an estimated 1,015 vessel days for removal.

Figure 32 demonstrates most of these projects are concentrated in the CNS and SNS regions, which account for 94% of substructures to be removed. The graph shows that demand for substructure removal is likely to peak between 2018 and 2021.

The analysis revealed that 74% of substructures for removal weigh less than or equal to 1,600Te and 50% are below 1,000Te, particularly those in the SNS. Of those remaining, 15 weigh more than 8,000Te and 4 are heavier than 16,000Te.

Figure 32 – UKCS substructure removal potential demand days by region (2014–2026)Substructure Removal (Demand):Potential Planned Substructure Removal Days, by Region

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Figure 32

On the supply side, substructures are generally removed by Heavy Lift Vessel (HLV) with support from other vessels/barges. The survey data identified 15 HLVs with current availability for substructure removal. This was based on a response rate of 57% (51 of 90 companies contacted). These figures will therefore not represent total available capacity.

The regions in which HLVs could operate was assessed in accordance with water depth. The breakdown of available HLVs based on these criteria is shown in Figure 33. It was recognised that other potential operational constraints would exist such as substructure configuration, but additional factors were not considered for this study.

Substructure Tonnage 0 – 1,600 1,601 -4,000 4,001 - 8,000 8,001 - 16,000 >16,000

CNS 7 7 7 27 40

NNS - - 7 27 40

IS (including EIS) 7 7 7 27 -

SNS 7 7 7 - -


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STo assess current capacity to meet future demand, the survey results were used to calculate the maximum number of potential available days for HLVs in each region. The analysis was segmented into three groups: substructures up to 1,600Te, substructures between 1,600Te and 4,000Te, and substructures above 4,000Te. This snapshot of current availability was compared against potential demand. The results are shown in Figures 34 to 36.

The graphs show there is currently far more capacity overall than is required to meet decommissioning demand for substructures less than 1,600Te and up to 4,000Te. Moreover, there is no significant backlog of pre-2017 activities which might affect this capacity. However, there is potential for a bottleneck of availability to handle the larger structures, given that some of the limited number of suitable HLVs may be employed in other sectors.

Figure 34 – UKCS substructure removal demand vs supply (up to 1,600Te)Substructure Removal (Supply): Potential Available HLV Days by Region (1,600 Te)

2 946

9 15 6 3 3 80

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Potential Demand (up to 1,600Te)

CNS SNS

601

Maximum Supply


Figure 34

In Figure 34 projects are predominantly in the SNS region with activity forecast to peak in 2018 and continue until 2024. Potential supply appears to be more than sufficient for the projected workload.

Figure 35 – UKCS substructure removal demand vs supply (1,600Te - 4,000Te)

Substructure Removal (Supply): Potential Available HLV Days, by Region (1,600 – 4,000 Te)

9 18 4 10 1 9 10

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Maximum Supply


Figure 35

Figure 33 – Number of available Heavy Lift Vessels (Te)

Types Total Count Up to 1,600 1,601 - 4,000 4,000 - 8,000 >16,000

HLV 15 7 6 1 1

27

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Figure 36 – UKCS substructure removal demand vs supply (over 4,000Te)Substructure Removal (Supply): Potential Available HLV Days, by Region (> 4,000 Te)

93

Maximum Supply


17

7439

19 30 22 3013

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sPotential Demand (over 4,000Te)

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Figure 36

In Figure 36, projects are predominantly in the CNS region with activity forecast to peak in 2020 and continue until 2026. Potential supply appears to be sufficient for the projected workload if demand can be smoothed over several years. Sufficient capacity will also be sensitive to potential utilisation in other sectors, regions and projects with smaller lifts.

Summary

Overall, there appears to be adequate capacity for substructure removal activities on the UKCS at present. However, several relevant companies did not respond to the supply survey, suggesting vessel availability may in fact be significantly higher.

Key observations

• 109 projects were identified with substructure removal requirements based on CoP up to 2023.

• Total substructure tonnage for removal was 294,740Te, requiring an estimated 1,015 vessel days.

• Demand for substructure removals is likely to peak between 2018 and 2021

• Current capacity exceeds demand for removal of substructures weighing less than 4,000Te

• Current capacity for substructures over 4,000Te appears sufficient to meet current demand


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2.7 Onshore remediation, dismantling and recycling

The onshore element of decommissioning did not compare supply and demand data. This was due to the data for each having different criteria that could not be overlaid. The two elements are therefore presented separately.

Demand

To assess demand for onshore decommissioning activities, the potential ‘demand days’ for each year was estimated based on potential CoP dates up to 2023. The assumptions made were that onshore activity would take place four years after CoP, except for in the SNS where this was assumed to be one year after CoP. The duration of onshore decommissioning was also estimated based on the type of infrastructure and tonnage using the scale shown in Figure 37.

Figure 37 – Onshore decommissioning duration by infrastructure type and weight

Onshore Remediation, Dismantling and Recycling (Demand): Potential Onshore Demand by Region (Days)

Figure 38

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The results are shown in Figure 38. In total, 801,660Te of UKCS infrastructure is estimated to require a total of 15,241 days of onshore decommissioning. As much as two-thirds (534,000Te) is concentrated in assets to be recovered from the CNS. The graph shows activity is likely to peak in 2021 and 2022.

Figure 38 – UKCS onshore decommissioning potential demand days by region (2015-2027)

Activity Te Ranges Days

Subsea Infrastructures 2,000 14

Substructures 1,000 - 1,500 28

Topsides 2,000 - 3,000 28

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Ports and onshore yards were surveyed to determine the number of facilities, with relevant permits/certifi cations, able to process off shore infrastructure. From the 85 companies contacted, 40 responded.

For the purposes of this survey, a port was defi ned in terms of having a “quayside” including berth, lay-down area and any adjacent working area. A yard was defi ned as a piece of uncultivated ground either adjacent to quayside or standalone out with port grounds.

It is understood that a potential bottleneck could arise if ports and yards lack dismantling contractors with the necessary permits / licenses to undertake the work onshore, such as Pollution Prevention and Control permits (PPCs), Radioactive Substances Authorisations (RSAs), Waste Management Licences (WMLs) and Controlled Activities Regulations Licenses (CARs).

Respondents were asked to indicate the status of their permits / licenses, results of which show that a range of sites across the UK are available to perform decommissioning work. Scotland has 33 sites with a total of 69 permits, East England has 3 sites with 7 permits, North East England has 13 sites with 31 permits, and Northern Ireland has 5 sites with 15 permits. Note: 19% of sites surveyed did not specify whether they have permits to operate.

The survey also revealed that most sites (63% of quaysides and 61% of yards) have laydown areas less than 25,000sqm. These sites may therefore be more suited to smaller structures and not large complete topsides, unless removed in modules / or piece small activity. The geographic distribution of sites with suffi cient available laydown area to accept large structures is shown in Figure 39.

Only 12 sites provided information on the bunded area available for contaminated materials - all located on the east coast. It was therefore not possible to determine west coast capacity which may be preferable for decommissioning assets removed from the IS (including the EIS).

Supply


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Laydown Area (Range)

440 – 630,000m2

NE England

134 – 450,000m2

Scotland

SE England

Northern Ireland

10,000m2

NW England

440 – 630,000m630,000m2440 – 630,000m2

SE England200 – 80,000m2

440 – 630,000m210,000m10,000m2440 10,000m440 10,000m10,000m–10,000m630,000m10,000m630,000m10,000m2630,000m2 210,000m2

17,085 – 283,000m2

Figure 39

Summary

The onshore element of decommissioning presented supply and demand for onshore activities separately due to diff erent data criteria that could not be overlaid.

The size of the quayside/yard, the extent of permits in place, the presence of nearby infrastructure, and the availability of skilled personnel onsite, can all have a major impact on a region’s decommissioning capacity.

Key observations

• A total of 801,660Te of infrastructure estimated to be removed from the UKCS, requiring a total of 15,241 days of onshore work.

• Demand for onshore activities is likely to peak in 2021–2022 and heavily concentrated on assets recovered from the CNS and SNS.

• 63% of quaysides and 61% of yards have laydown areas less than 25,000sqm thereby unable to accommodate large platforms.

Figure 39 –Regional location of sites with >25,000sqm available laydown area suffi cient for larger structures

31

3

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Overall, in 2017/18 there appears to be sufficient, and at times surplus, available capacity of key assets to meet potential UKCS decommissioning demand, but this could rapidly change.

The analysis is based on a snapshot of a market in a downturn and an industry undergoing meaningful change. There are many uncertainties surrounding UKCS decommissioning that make projects coming to fruition and therefore assessing future capacity at the industry level a challenge.

Potential capacity constraints were identified for platform wells P&A in the Central North Sea in 2018 and a potential reliance in the Northern North Sea on Modular Drilling Units. However, Platform-Based Drilling Rigs may be reactivated and would help to mitigate capacity constraints.

Excess capacity was found in relation to demand for subsea infrastructure removal both up to and above 400Te. A large surplus in capacity is likely to affect contractor ability to maintain investment and the integrity and operability of their assets. This could result in re-deployment overseas or ‘stacking’ or even sale for decommissioning. This presents a risk to meeting future decommissioning demand, particularly if activity and capacity requirements increase in exploration and production and other marine sectors.

Similarly, topside and substructure removal was found to have excess capacity in Heavy Lift Vessel (HLV) utilisation. These assets are also highly mobile, therefore future capacity will be determined by the level of new development and decommissioning projects both on the UKCS and globally, as well as activities in offshore renewables projects. The onshore element of decommissioning presented supply and demand for onshore activities separately due to different data criteria that could not be overlaid. The size of quaysides and yards, the permits in place, presence of nearby infrastructure, and availability of skilled personnel onsite, can all have a major impact on a region’s decommissioning capacity.

Oil and gas companies are operating in an environment today that bears little resemblance to that of just a few years ago. The industry is subject to evolving macroeconomic and market conditions and has been (and will continue to be) shaken and disrupted by forces that go far beyond supply and demand. These external forces may have a significant impact on UKCS decommissioning capacity:

• Oil price fluctuations – The industry is currently adapting to lower oil prices. Should the oil price rebound, and efficiency improvements continue, some late-life fields currently not considered economically viable may become so, pushing decommissioning activities further into the future. A high oil price could also prompt investment to develop new fields, which, in turn, could lead to the supply chain diverting its available capacity towards those projects.

• Regulatory framework – The recent introduction of transferable tax credits2 between buyers and sellers of North Sea assets has the potential to extend economic recovery in the North Sea. This could impact current estimated Cessation of Production dates within the demand profile.

• Increasing competition for the UK supply chain – Offshore wind developments are expected to increase over the next 5 years. This market draws on much of the fleet/equipment and workforce identified in this study. Together with potential increases in exploration and production activity, competition for what is essentially the same supply chain capacity could significantly alter the supply–demand dynamics analysed in this report.

• New decommissioning-centric technologies and processes – The technologies and processes leveraged today were not necessarily designed or built with decommissioning in mind. New potential will emerge, for example, the ability to shift from reverse installation to single lift removal (enabled by the Pioneering Spirit). This means that processes and – critically – underpinning technologies, are likely to develop further and become more decommissioning-centric. The duration and cost of decommissioning will thus be further optimised, with the potential to radically alter existing baselines/estimates for decommissioning projects.

This report offers a comparison of current capacity and expected demand. However, this will change over time as project schedules change and assets are added to or removed from the supply chain.

3 | CONCLUSIONS

2UK Government - An outline of the transferable tax history mechanism for UK oil producers that will apply to deals that complete on or after 1 November 2018. https: / /www.gov.uk /government /publications /an-outline-of-transferrable-tax-history


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To improve future studies, the following observations and recommendations have been made:

• It is recommended this study be completed on an annual basis to create transparency and capture emerging trends of supply in relation to demand to ensure sufficient capacity is available (or made available) for decommissioning activities.

• The survey represents a good proportion of companies with key assets currently available for decommissioning activity in the UKCS. The research was undertaken during May to September 2017, therefore impacted by the summer holiday period. Future surveys should be performed out with holiday periods and should seek to increase the number of companies participating to ensure solid representation and increasing accuracy of annual supply and demand trends.

• Many respondents exited the survey at the point at which detailed information regarding their assets/vessels was being sought. This may have been because data was not readily available. Future studies should seek to simplify response requirements and provide information in advance on data to be collected, to increase both quantity and quality of responses.

• The assumptions this study was based on should be further validated and/or improved based on industry feedback.

• Limited data was available on abandonment methods and capacity for platform wells P&A. The use of platform rigs or modular units could not be quantified. Future studies should seek to incorporate this information.

• It was not possible to analyse supply and demand for onshore activity due to non-availability of matching data. Future studies should seek to collect data that can be better aligned for analysis.

4 | RECOMMENDATIONS FOR FUTURE STUDIES

33

APP

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IX

Project methodology and approach

The primary objective of this project was to understand the capacity of the decommissioning supply chain to fulfil UK/UKCS decommissioning demand in the forthcoming years. The analysis to support this central question was performed by breaking it into two parts: the market supply side (that is, potential capacity available in the supply chain/market today to serve UKCS decommissioning demand) and the market demand side (that is, demand for decommissioning services expected in the years to come). The rationale for this approach was that by understanding the current picture of available capacity in the supply chain and comparing it with the future demand for decommissioning services, insights into potential bottlenecks or oversupply could be gained.

Market supply data

To establish a view of supply, a survey of relevant supply chain companies was undertaken to determine capacity in key activities. The response rate to the survey is shown below.

Figure A1 - Number of Companies in UK Decommissioning Supply Chain Survey by Activity Area

Activity Area

Number of Companies

Contacted for the Survey Responded to the Survey

Platform Wells 86 54

Subsea Wells 86 54

Topsides 90 51

Substructure 90 51

Subsea Infrastructure 78 49

Yards 85 40

Ports 85 40


To finalise the scope of the survey and the questionnaire to be used, Accenture facilitated a survey workshop with the Project Work Group (comprising Decom North Sea, SE and the OGA) and 21 industry experts. The workshop participant list was finalised by the PWG with the aim of ensuring that subject matter experts from companies representing specialist areas within decommissioning were involved. Accenture thereafter proposed the target audience for the survey. The PWG reviewed the participant list and identified any additional companies. The survey was targeted at supply chain members owning major assets/vessels which today serve decommissioning projects. Supply chain members owning other services and activities, such as people services, secondary equipment and project management services which supplement the major assets/vessels were not targeted as part of the survey. This was because it was generally understood that these would be available (or made available) on demand and would not necessarily be cause for capacity concern.

The survey questionnaire was designed to gather a view of the current major assets/vessels in the market which can service UK/UKCS decommissioning demand. Additionally, the survey established from respondents the potential annual availability of these major assets/vessels (in days) over the course of a typical year. However, it was understood that there would be numerous factors (like maintenance, transit to field, time contracted with non-UKCS demand etc.) which would potentially limit this availability. To account for this, a duration factor was applied to all available capacity data gathered from the survey. This was calculated as shown below:

• Available vessel days collated via survey responses (A)

• Total vessel duration days annually (B) = 160 days

o 45 days vessel mobilisation/transit sailing annually, plus

o 15 days vessel maintenance days annually, plus

o 100 days serving non-UK decommissioning projects - greenfield /brownfield annually.

• Net available vessel days to be compared to potential decommissioning demand (C) A – B = C

Applying the above, provided the net “available vessel days”.

Activity Area

Number of Companies

Contacted for the Survey Responded to the Survey

Platform Wells 86 54

Subsea Wells 86 54

Topsides 90 51

Substructure 90 51

Subsea Infrastructure 78 49

Yards 85 40

Ports 85 40

35

APP

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IX

Market demand data

Demand data was provided by the Oil & Gas Authority (OGA). The data numbered 165 projects and their associated or potential year of Cessation of Production (CoP) which ranged from 2011-2023. The number of platform and/or subsea wells per project and associated tonnage for subsea, topside and jacket infrastructure was also given.

Assumptions were then made by the Project Work Group and industry experts on when key activities were likely to be executed. The table below shows the offset determined, which was based on year of actual or potential CoP plus number of years to P&A or removal.

Figure A2 - Table Showing Offset in Execution for Key Decommissioning Activities (CoP + X Years)

The ‘demand days’ for each of the six key activity areas were calculated as follows:

1. Platform Wells - P&A for each platform well would be 32 days, and for installations with more than 10 wells, 1 in every 10 would require an additional 100 days.

2. Subsea Wells - P&A for each subsea well was estimated as 32 days, and for fields with more than 10 wells, 1 in every 10 would require an additional 100 days.

3. Subsea Infrastructure – Figure A3 shows the number of removal days to be utilised associated with subsea infrastructure, ranging from 15 days for less than 500Te structures to a maximum of 40 days for more than 2,001Te.

Figure A3 - Subsea Infrastructure Removal Days by Weight (Te)

Subsea Tonnage 0 - 500 501 - 1,000 1,001 - 2,000 >2,001

Removal Days 15 20 30 40

RegionPlatform well P&A

Subsea well P&A

Topside Removal

Substructure Removal

Onshore Disposal

(Start)

Subsea Infrastructure

Removal

NNS 0 4 2 3 4 4

CNS 0 4 2 3 4 4

SNS 0 2 1 1 1 2

WoS 0 4 2 3 4 4

IS (including EIS)

0 4 2 3 4 4


Topside Tonnage

0 – 1,600 1,601 -4,000 4,001 - 8,000 8,001 - 16,000 >16,000

CNS, NNS 1.25 3.75 6.25 12.5 27.5

IS (including EIS), SNS

1.25 3.75 5 - -

4. Topside Removal - The duration of topside removal activities for each region was estimated based on durations as shown in Figure A4.

Figure A4 - Topside Removal Duration for each Region (Vessel Days per Tonnage Range)

5. Substructure Removal - The duration of substructure removal activities for each region was estimated based on durations as shown in Figure A5.

Figure A5 - Substructure Removal Duration for each Region (Vessel Days per Tonnage Range)

6. Onshore remediation, dismantling and recycling - The duration of onshore decommissioning was also estimated based on the type of infrastructure and tonnage using the scale shown in Figure A6.

Figure A6 - Onshore decommissioning duration by infrastructure type and weight

Activity Te Ranges Days

Subsea Infrastructures 2,000 14

Substructures 1,000 - 1,500 28

Topsides 2,000 - 3,000 28

Substructure Tonnage 0 – 1,600 1,601 -4,000 4,001 - 8,000 8,001 - 16,000 >16,000

CNS 7 7 7 27 40

NNS - - 7 27 40

IS (including EIS) 7 7 7 27 -

SNS 7 7 7 - -

37

For further information on this report please contact:

Decom North Sea21 Abercrombie Court, Prospect Road, Arnhall Business Park,Westhill, AB32 6FET: +44 1224 900139E: [email protected]


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