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Media Releases
2007

30 April
2007

Technology key to decommissioning schemes

The firm urges oil and gas companies to explore the important role new technology will play in decommissioning projects during the next decade

Leading UK law firm Shepherd and Wedderburn is urging oil and gas companies attending OTC this week to set aside time to explore the important role new technology will play in decommissioning projects during the next decade.

As the energy industry gathers in Houston, many UKCS operators will be preparing for decommissioning programmes, and with wide acceptance that from 2009 onwards more than £1 billion per year will be spent on such schemes, it is vital that these schemes are run as effectively and efficiently as possible.

Scottish expertise is leading the way in developing cutting-edge technologies which not only address the issue of dismantling huge structures, but also take into account the environmental responsibilities which have been the focus of ever-increasing legislation.

Leon Moller, an Aberdeen based lawyer with Shepherd and Wedderburn who specialises in decommissioning said:  "We have seen significant interest in this and expect this to be one of the fastest growing areas over the next few years. The removal of installations involves careful planning and the use of innovative technology to reduce the cost of the process.

"The complexity of the decommissioning market requires that companies, operators and contractors develop an understanding of all aspects of the decommissioning process and we are able to provide support and guidance in this area."

Over the next decade, the DTI anticipates that more than 80 structures in the North Sea will be decommissioned, with costs for individual projects such as Brent reaching the £3 billion mark. Technology that can help reduce those costs is therefore in high demand.

Eddie Grant, Managing Director of Norsk Cutting and Abandonment Limited, which has its UK headquarters in Aberdeen, commented: "We have seen a marked growth in demand for our services during the last three to four years and we expect this to rise dramatically during the next decade.  It's vital companies have an innovative and technology-driven approach to decommissioning. Only through this, and good preparation, will they prevent costs from spiraling."

Current decommissioning in the UKCS includes:

  • Amoco/BP, North West Hutton: removal of large steel topsides and jacket to top of footings to shore
  • Total, MCP 01: removal of topsides to shore with concrete substructure remaining in place
  • Shell, Indefatigable field including installations - Juliet, Kio, Lima, Mike and November: topsides jackets and two hose bundles removed to shore and five pipelines decommissioned in-situ


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