Decommissioning

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Decommissioning

ODE has extensive practical expertise in the decommissioning of oil & gas production, processing facilities and structures and has built up a detailed decommissioning cost database, incorporating the most up-to-date market data.  Our experience covers all aspects of decommissioning activities, ranging from 'due diligence' reviews of the provision made for the end-of-field-life costs; through detailed preparations before removal; complete de-manning and remote operation of platforms; and preparation for re-use or deconstruction and recycling of the waste streams.

For example, ODE previously completed a feasibility study for Shell, looking at the necessary stages for decommissioning the Brent Delta facility.  This included the identification of deconstruction options and the generation of high level schedule and cost estimates.  ODE is currently assisting BP in the development of their offshore global decommissioning cost model.  This was officially announced by BP at the 8th Annual North Sea Decommissioning Conference in November 2011 and confirms BP’s confidence in ODE's decommissioning expertise following previous studies for the UKCS, Gulf of Mexico, Egypt and Azerbaijan.

Throughout recent years ODE has performed a number of independent expert reviews of shared decommissioning liabilities between incumbent and heritage Operators.  Our proven techniques and understanding of the decommissioning process has allowed our Clients to realise a significant reduction in the apportionment of decommissioning liabilities.

Also, ODE continued its support of Fairfield Energy in their consultation with the UK Health and Safety Executive in relation to the derogation of the Dunlin Alpha facilities.  A study into the refloat options for the Dunlin Alpha Concrete Gravity Base was published to the public domain by Fairfield Energy as part of the consultation process and is available online here.

ODE's client list for decommissioning studies is extensive and covers international and independent Operators such as Shell, BP, ExxonMobil, Total, ConocoPhillips, Talisman, Perenco, E.ON Ruhrgas, RWE, Premier Oil, DONG, Fairfield Energy and Summit Petroleum.

Our depth of experience has been applied to onshore and offshore facilities and particularly relates to the following areas:

  • Independent evaluation of decommissioning liabilities
  • Legislative requirements
  • Permit and consents
  • Facility shutdown before decommissioning
  • Decontamination and preparation for decommissioning
  • Redeployment and re-use of facilities and equipment
  • Offshore marine operations
  • Deconstruction methods
  • Recycling of materials
  • Handling and disposal of hazard waste

With the complex legal framework and the high profile of decommissioning operations in the oil & gas sector, ODE can add value to clients' projects by the comprehensive planning of the process and the meticulous preparation of the necessary documentation, engineering and planning. The range of services available is extensive and comprises comprehensive technical and commercial expertise, including:

  • Feasibility, conceptual and front-end engineering studies
  • Project management
  • Planning and cost estimation
  • Formal identification of BPEO
  • Drafting of abandonment programmes
  • Writing decommissioning safety cases
  • Environmental accounting
  • Planning, engineering, and supervision of decommissioning marine operations
  • Workpack preparation
  • Construction / deconstruction supervision