EXPLORING DECOMMISSIONING CHALLENGES AND OPPORTUNITIES TO MARK DECOM WEEK 2024

How does the North Sea region compare to other regions globally in terms of decommissioning activity and expertise?

The global Oil & Gas infrastructure decommissioning market value is $400 billion, with an annual value of around $6.5 billion in 2022 and this is expected to reach $9.9 billion in 2028. The key markets today are UK, Australia and Gulf of Mexico, with emerging decommissioning markets including South Asia, Brazil and West Africa.

The UK North Sea sector spent £1.6 billion on decommissioning in 2022, with around 60% of the UKCS (UK Continental Shelf) topsides and subsea decommissioning set to occur between 2026 and 2032.

Decommissioning accounted for 12% of the total oil and gas expenditure in the UKCS in 2022, but this could increase to 25% by 2032. 

What are some of the key challenges and considerations involved in decommissioning projects in the North Sea region?

Decommissioning is often seen as the ‘unsexy’ phase – the ‘dirty’ job at the end of the asset’s life. 

 

The reality is that decommissioning is a critical element of the energy transition, plays a key part in the reduction of carbon emissions and often presents a great deal of challenges, and opportunities, that differ from new CAPEX projects. Some of the challenges include;

• Safety of the workers and the structural Integrity of the asset. Ageing infrastructure can pose structural challenges during decommissioning due to its lack of structural integrity.
•  The cost and complexity of projects (which can lead to project deferments) 
• Regulatory compliance, including global regulatory differences from region to region.
•  Waste management is a key focus as the decommissioning process generates large volumes of waste, including hazardous materials, which must be properly handled, transported, and disposed of in compliance with environmental regulations. We support clients through this process with a rigorous support service to identify, test samples and create an Inventory of Hazardous Materials.
•  Bureau Veritas is also supporting clients to rethink their approach to decommissioning through adopting the 10 R’s approach to a Circular Economy mindset; What items could actually be reused, repurposed, refurbished, regifted etc. The circular economy is becoming an increasingly important topic and we have to consider this approach in decommissioning. Circularity is an opportunity to unlock decommissioning value by rethinking the norm.
• Not forgetting skills and staffing shortages, of course. Decommissioning is a niche sector within the energy industry and offers exciting opportunities and careers. We need to attract more people into the energy sector to be equipped for the future, because as long as there are energy assets, there will be decommissioning. 

Could you elaborate on the specific skills and experiences that make the North Sea a centre of excellence for decommissioning operations?
 

The key for this is the established oil and gas skills pool already supporting the industry, the decommissioning projects already executed in the North Sea, plus the complexity and scale of the assets being removed. The North Sea is a power house of experience in Oil & Gas and now decommissioning.

What technological innovations or advancements have been particularly impactful in enhancing decommissioning processes?

Well plugging and abandonment (P&A) accounts for around 50% of the decommissioning forecast spend and related innovative technology is an international continuous improvement process.
 
Facilities topsides removal will benefit from emerging technical products such as laser cutting and drones and digital twins have broad application opportunities across decommissioning projects. Subsea equipment and pipeline removal also continues to see supply chain contractors develop innovative solutions in response to specific project challenges.

With all technological advancements and process developments, we need to share best practice across the industry – a pan-industry approach to decommissioning challenges will support scalability and potential cost efficiencies on process and tech that has multiple application opportunities. 

Looking ahead, how do you see the future of decommissioning evolving in the North Sea region, considering factors such as technology, regulations, and market dynamics?

There are a number of important things we have to consider, including: 

• We must continually review the regulations and consideration given to the ecological habitats that offshore assets create. It’s important to learn lessons from other areas globally and potentially align regulations to enable benefits.
• The circular economy is becoming an increasingly important topic and we have to consider this approach in decommissioning.
• Carbon emissions measurement and management is important for decommissioning projects. More work is needed on defining the start and end of a project from regulators and from industry, especially in relation to Scope 3 emissions.  
• Resources are going to continue to be a challenge and the North Sea is not only competing with other North Sea energy projects, but against a global supply chain of projects. 
•  We also need to attract a future workforce, from diverse backgrounds to do all of the above in the coming decades. End of life activities are rarely glamorous, the reality is that we are managing the preparation, retrieval and dismantlement of contaminated or fatigued structures that were largely designed without removal in mind. Safety and environmental learnings from oil & gas are as applicable in nuclear decommissioning as they will be in renewable decommissioning. 
• Addressing the challenges of decommissioning requires a multidisciplinary approach, involving experts from fields such as engineering, environmental science, waste management and project management, to ensure the safe, efficient, and cost-effective decommissioning of facilities. Doing this also while being mindful of environmental impact and respecting, wherever possible, the circular economy is no mean feat.