Business Intelligence for the Offshore Oil & Gas Industry

Produced in conjunction with

NORTH SEA 2014

Offshore Asset Retirement:

Projects, Trends, Opportunities
& The Shift in North Sea
Decommissioning
The North Sea’s decommissioning & abandonment (D&A) market is
dramatically shifting.

For too long D&A has been viewed as an isolated activity, entirely
separate from production. But with a Post-Wood Review drive
to maximize resources and minimize cost, operators are starting
to align their strategy to transition from late life operations to
decommissioning.

In association with the Offshore Asset Retirement Conference –

North Sea’s premier meeting point to ensure cost-effective decision
making for aging structures and wells – DecomWorld took a look at
some of the key offshore decommissioning projects, industry trends
and challenges faced by operators in the North Sea. In mapping this
out, the opportunities for contractors and service providers in this
still infant market remain huge, and never more so than at this time
of seismic shift.

To find out how Shell, BP, CNR International, Hess Corporation, Maersk,
Kvaerner, Acteon and many more are tackling this shift, simply visit
www.decomworld.com/asset-retirement/

Expert Late Life Operations,

Decommissioning &
Abandonment Perspectives at
the Offshore Asset Retirement
Conference
(17-18 Nov, Aberdeen, UK)

Including Shell, BP, CNR International,

Hess Corporation, Maersk and many
more!

decomworld.com/asset-retirement
 Business Intelligence for the Offshore Oil & Gas Industry

DECOMMISSIONING PROJECTS MAP Produced in conjunction with

WATER DEPTHS

- West of Shetland NORTH SEA 2014

120-1300+m
- Northern North Sea NORTHERN
NORTH SEA
90-190m
- Central North Sea
50-150m Forecast
- Southern North Sea Expenditure
15-80m from
2013 to 2022: Murchison Leadon
Don Field Field
Field
44% = £4.6bn
Central & Northern North Sea :
Average forecast for
C
Well P&A expenditure
Glamis Field
£4.8 million Brent Goldeneye
per platform well
£10.1 million CENTRAL
per subsea development well NORTH SEA
Forecast
£8 million Expenditure
per subsea exploration from
and appraisal well 2013 to 2022:
32% = £3.3bn Renee/Rubie
Miller Field Fields

SOUTHERN
NORTH SEA
Average
forecast for Forecast
Well P&A expenditure Expenditure
(including Irish Sea) from
2013 to 2022: Big Dotty Dawn Field Hewett
£3.5 million Field Field
per platform well 24% = £2.5bn*
£6.6 million *Incl. Irish Sea
per subsea well
C C

Little Dotty Inde Field Indefatigable

Field

C C C

Leman Field Thames Field Welland

Field

SOURCE:
Oil Field Type Gas Field Type C Condensate C Oil Condensate C Gas Condensate www.decc.gov.uk
www.oilandgasuk.co.uk
 Business Intelligence for the Offshore Oil & Gas Industry

DECOMMISSIONING FIELD DEPTH Produced in conjunction with

NORTH SEA 2014

FIELD
DEPTH
- 20-30m
C

Inde Field

- 30-40m

Big Dotty Dawn Field Hewett Little Dotty

Field Field Field

C C C C

Thames Field Indefatigable Leman Field Welland

Field
- 100-110m

Miller Field
- 110-150m

Renee/Rubie Murchison Glamis Field

Fields Field
- 150-170m

Leadon Brent
Don Field Field
 Business Intelligence for the Offshore Oil & Gas Industry

SCALE OF OPPORTUNITY FOR Produced in conjunction with

DECOMMISSIONING & ABANDONMENT

co n c re te s u at in g pro d uc NORTH SEA 2014

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wi j ac th
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I n s t a lla t

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*

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<5,000 3,000 <200

Expert Late Life Operations,
Decommissioning &
Abandonment Perspectives at
the Offshore Asset Retirement
Conference
(17-18 Nov, Aberdeen, UK)

Including Shell, BP, CNR International,

Hess Corporation, Maersk and many
more!
* Potential OSPAR derogation cases
decomworld.com/asset-retirement SOURCE: www.decc.gov.uk
 Business Intelligence for the Offshore Oil & Gas Industry

SCALE OF OPPORTUNITY FOR Produced in conjunction with

DECOMMISSIONING & ABANDONMENT

NORTH SEA 2014

7%
ONLY

478
platforms may
OF INSTALLANTIONS
DECOMMISSIONED need to be
TO DATE removed before
2045

Norway holds
35% of the
15 to 25
installations will be decommissioned
estimated worldwide
decommissioning
expenditure, with only
annually in Europe during the next 15 years. 7% of the global
For the UKCS alone, this amounts to offshore infrastructure
the dismantlement and removal of the
approximate equivalent of 254 Eiffel Towers
- 31 of them weighing in fact a lot more
(i.e. more than 10,000 tonnes), eight Over
installations with large concrete substructures
(in the region of 20,000 tonnes), 280 subsea
800
wells are scheduled for
and 21 floating production systems and plugging and abandonment
last but not least, 3000 pipelines between 2013 and 2022.
and 5000 wells Nearly 480 of these wells
are in the central and
(SOURCE: Oilprice.com)
northern North Sea
of which nearly
60% are platform wells

Data from the Shell oil

company suggests that
£35bn?
WE

the P&A costs on Brent

Delta are £2.7 million
LLS

The cumulative
expenditure for per well, each taking
FORM

decommissioning the UK on average 30 days to

sector of the North Sea
complete.
alone may be above
£35 billion over the (SOURCE: Oilprice.com)
T
PL A

S UB

next 30 years
EA S

PIPE
LIN ES
 Business Intelligence for the Offshore Oil & Gas Industry

DECOMMISSIONING & ABANDONMENT TO Produced in conjunction with

ASSET RETIREMENT – WHY THE SHIFT?

With such a wealth of decommissioning and abandonment (D&A) projects up ahead
for the North Sea offshore market, it is critical that operators take a holistic approach
to end of life activities. In order to do this, a change in strategy is required which NORTH SEA 2014
bridges the gap between late life operations and D&A.
Here's why it matters to you:

• Post-Wood Review drive to maximise North Sea resources means there is a need to approach D&A in
the wider context as part of end of field life management
• Critical need to reduce escalating D&A costs as the North Sea industry approaches the £35bn
decommissioning and abandonment challenge
• The only way to achieve economies of scale, and with up to 478 platforms reported to need removing
before 2045, it's never been a more important time
• Allocating resources upfront to eradicate bottlenecks which are currently putting extraordinary
pressure on the decommissioning supply chain
• Encouraging integration & collaboration at every level with thorough up-front planning to identify
synergies and cost efficiencies

To ensure you reap the long term benefits associated with a robust asset retirement strategy, DecomWorld have developed
the Offshore Asset Retirement Conference, North Sea (17-18 Nov, Aberdeen) which is driving this critical shift in the
decommissioning & abandonment market, whilst aligning to the latest Wood Review developments.

With +1000 attendees gathering over the last ten years and drawing from our renowned Gulf of Mexico track-record, we’ve
bought together the globally recognized experts and technical leaders from Shell, BP, Hess Corporation, CNR International,
Maersk and many more to share in-depth case studies which will equip you with the tools and strategies required to
effectively engage your asset retirement campaign.

Attend this ground breaking meeting point with a track record of success and you will:

• Get exclusive insight into how the Wood Review will impact decommissioning regulation
and your end of life strategy
• Hear from leading global decommissioning managers to understand how you can streamline your
approach for cost effective asset retirement
• Understand how you can work with your design, operations and COP teams to seamlessly transition
to decommissioning
• Apply innovative rig-less well P&A technology to your abandonment projects in order to reduce cost
and time
• Address the major HSE issues in your decommissioning program to minimize risk to people and the
environment

Just some of the top companies that you will hear from at this year’s Offshore Asset Retirement Conference, North Sea:

Save an extra $100 on your ticket to OARC 2014 using the exclusive whitepaper discount ARDA100 when you register
online here before Friday 22nd August: https://secure.decomworld.com/asset-retirement/register.php

© 2014 FC Business Intelligence®

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