What do you think most affects the decommissioning cost of platforms in the North Sea? Water depth? Function, as in oil or gas? How about location? According to a new study, it’s none of the above…
The main factor affecting affecting the cost of decommissioning platforms in the North Sea is simply how much material there is to take away, a new study by a joint industry forum has found.
It also found that North Sea facilities are typically waiting 10 to 15 years to be removed, and that project management and detailed engineering combine to account for around 22% of the overall price tag.
Based on research into recently removed steel platforms, the report sheds rare light into operators’ liabilities, claims the Performance Forum, which did the study.
The main takeaways as they are listed in the DecomWorld Article by Rod Sweet.
- Cost is strongly related to the total weight of facilities removed.
- Project management costs are approximately 8% of the total decommissioning cost.
- To save money operators should focus on disconnection and removal because, combined, they account for around two-thirds of total cost.
- The time span from cessation of production to end of removal is now running at between 10 and 15 years.
- There is no correlation between the cost of decommissioning and the time it takes, due to long periods of inactivity.
A very interesting study indeed. The North Sea has proven to be one of the hottest markets for Offshore Oil and Gas and it is a breeding ground for best industry practices. It is great to see studies like this arrive on the scene and they should benefit operators and contractors alike in making the best strategic decisions when performing their subsea decommissioning duties in other areas of the world.
Mactech Offshore offers a variety of subsea cutting tools for use when an offshore platform is damaged or at the end of its useful life. Platform decommissioning requires coordination of the best personnel and equipment in the world and Mactech Offshore always has the solution. With almost two thirds of these decommissioning costs coming from the removal costs, it certainly makes sense to find a contractor with the great equipment, experience and service.
Read More From the Source: DecomWorld.com