We’re proud to share that our CEO, Mike Adams, has co-authored the first in a new series of articles on global decommissioning, written in collaboration with Martha Vasquez.
The piece explores lessons from three offshore basins - the US Gulf of Mexico, the North Sea, and Australia - highlighting the importance of simplification, innovation, and collaboration in delivering effective decommissioning projects.
Read the full article below:
As oil and gas companies increasingly tackle decommissioning of their facilities and wells, three offshore basins - the US Gulf of Mexico, the North Sea and Australia - offer diverse and complementary lessons.
While each region faces distinct regulatory environments and maturity levels, one truth holds across all: simplification, innovation and collaboration appear to be the keys to successful decom.
This article outlines regional lessons and identifies the common ingredients for competitive decommissioning.
- Pragmatic, cost-effective approaches to decom. Versabar developed a solution to safely and efficiently clear hurricane-toppled platforms. Much of the plug and abandonment (P&A) work is rigless, which can be 30% to 75% more cost-efficient than rig-based operations, depending on scope. Operators have converted components from over 600 offshore facilities to artificial reefs.
- Flexible, scalable and collaborative approaches. Two operators collaborated closely with the supply chain to deliver large boomerang portfolios fast, without building in-house capability. Promethean and Elemental Energies collaborated on BSEE’s orphan wells.
- Distinctive experience with large volumes of relatively small scale decom assets. Companies have permanently plugged and abandoned more than 25,000 wells and removed or reefed more than 5,000 offshore facilities.
- Mature supply chain ready and willing to collaborate. DeepOcean coordinated a 50-well vessel-based P&A campaign in the Netherlands; and Elemental Energies and Archer go to market together for planning and execution of P&A.
- World leading engineering and technology solutions. UK-based BiSN, Norway-based Wellstrøm - and Norway-based Axter are each providers of pioneering solutions that enable more efficient P&A operations.
- Distinctive sector support from public and private sector groups. The NSTA, a UK decom regulator, recently published the highest quality decom performance dashboard in the world. Industry trade associations OEUK and Decom Mission actively coordinate the transfer of know-how and facilitate collaboration. The Net Zero Technology Centre, a UK technology hub, leads the Well Decommissioning Collaboration Initiative.
- Diligent execution and structured collaboration. An operator plugged and abandoned 150 wells within three years, in response to the deadline imposed by NOPSEMA, an Australian regulator. CODA, the Centre of Decommissioning Australia, drives structured collaboration, knowledge transfer and thought leadership.
- Operator and supply chain partnership to deliver a world’s first. An operator partners with a demolition company to complete the decom and remediation in two Islands, among the most environmentally sensitive and biodiverse regions in the world.
- Fit for purpose solutions, delivered by the supply chain, with operators’ support. Pop-up yards had to fill a gap to dismantle and demolish structures, in the absence of a dedicated decommissioning yard (such as Vats in Norway).
The Gulf of Mexico brings pragmatism, the North Sea brings structure, and Australia brings a fertile ground for new approaches. No single basin has all the answers. But looking at actions above, we see:
- Simplification is a common ingredient: rigless operations in GoM and clear performance dashboards in the UK reinforce the impact of getting the basics right.
- So is innovation: pop-up yards in Australia and bismuth plugs in lieu of cement demonstrate “it can be done differently”.
- Finally, collaboration: delivering the boomerang projects fast and efficiently in the USA, going to market together in the UK, and restoring those islands in Australia – these are only possible when operators and supply chain truly work in partnership.
Each stakeholder group certainly needs to play its part. But the one area where impact to-date falls far short of its potential is multi-operator collaboration.
- When does it make sense and what value could it bring?
- What are flagship examples to-date and what was the role of each party?
- Where do future opportunities lie and who is best placed to drive them?
But this is the focus of our next article. Stay tuned. In the meantime, we’d love to hear lessons from your own experience.
Co-authors: Mike Adams, Martha Vasquez; Peer reviewer: Francis Norman.
Inititally published on LinkedIn here: (3) Three Offshore Basins, Three Decom Models: What We’re Learning | LinkedIn
