DECOMMISSIONINGSECTION TITLE
LEFT: Aggreko generators used in an offshore project
Russell Brown presents the case for off-balance sheet power solutions where established turbines can no longer deliver
A
s with any rapidly developing market sector, oil & gas
decommissioning inevitably comes with major potential and major
risk. Here, we discuss the current pressure on operators to adopt the most efficient end-of-asset life solutions to minimise expenditure, and how inefficient turbines should be replaced with more efficient rental solutions.
CURRENT PICTURE With the average lifetime of an offshore oil and gas field in the region of 25 to 40 years, many global ageing structures are in need of decommissioning. Te majority of costs are associated with the jacket, topside and subsea structure removal phases and well plug and abandon (P&A) – all of which vary depending on project and cost. Decommissioning projects are highly complex, lengthy and expensive; the process involves many different stages and can take more than a decade to complete. With such environmental, economic
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EFFICIENCY GAINS IN DECOMMISSIONING
and social pressures, the offshore decommissioning market is only set to drastically increase. Decommissioning will occur on 214 fields off the UK, 106 off the Netherlands, 23 off Norway, and six off Denmark. For all four regions, there will be complete or partial removal of more than 200 platforms, plugging and abandonment of nearly 2,500 wells, and decommissioning of nearly 7,800km of pipeline. During the next five years decommissioning expenditures are set to average £1.7-2 billion/year off the UK and £400-800 million/year off Norway and to total £650-800 million off the Netherlands. Despite the industry progress and active decommissioning record, can offshore oil & gas operators guarantee that their decommissioning strategy is absolutely bulletproof? During this period there is an emphasis for operators to adopt the most efficient end of asset life solutions in order to minimise the decommissioning expenditure, while
maximising performance. As such, operators are faced with the challenge of running aged equipment, which many not be running at optimum efficiency, as well as needing to replace equipment that they know will ultimately outlive the life expectancy of the rig.
ASSESSING EXISTING SOLUTIONS Decommissioning has been talked about for more than 10 years but been slow to adopt due to the myriad of processes and authorities restricting operators to get approved. It can be likened to the analogy of building a house – no-one thinks about how they will knock a house down in the design stages. And, while the government is committed to help fund these projects, it understandably wants costs to reduce,
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