The North Sea is one of the world’s busiest locations for oil and gas. The region once produced 6 million barrels per day. Today that number is down to 1.5 million. An array of aging platforms, declining investments in the field, and an increasingly urgent need to remove structures that may leak oil into the world’s seas are pumping growth into another sector in offshore: decommissioning.
Offshore platforms are complex structures. Taking even one of them down costs a substantial amount, and will involve a long chain of contractors and an even longer trail of paperwork. The UK alone is expected to spend £17 billion by 2029 in decommissioning offshore projects. The country also accounts for about 10 percent of global spend on decommissioning.
Clearly, the business of taking down installations is on the uptick. Along with it, we can expect to see new job opportunities in the region for qualified professionals. But as a fairly nascent field–many oil platforms being decommissioned today were installed in the ‘70s or ‘80s–the specifics of the work may be hazy to some, especially new entrants to the offshore industry. Below, we pull back the curtain on a multi-billion pound business of decommissioning, and where interested candidates can fit into the puzzle.
Planning for the End
Decommissioning a platform is as gargantuan a project as putting it together. Planning usually begins as early as three years before work begins. The need for such advanced preparation is due to the complex logistics and paperwork surrounding decommissioning.
In the UK, operators have to apply for permits. Companies have to submit a programme that includes detailed breakdown of crucial elements such as costs, milestones, and contingency measures against financial roadblocks such as insolvency. Operators also have to work in close coordination with the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) and the Oil and Gas Authority (OGA), which are the governing bodies that regulate decommissioning in the UK.
Derrick barges have limited availability, which necessitates contracting them well ahead of a project.
The Science of Taking Platforms Apart
Closing boreholes is the most extensive and delicate part of the process. Cement plugs and barriers are placed at different points of a well. Operators have to ensure the integrity of each section to ensure no residual hydrocarbons leak into the environment. All structures at least 15 feet below the mudline must be removed. Once a wellbore is plugged, it’s considered abandoned and no longer in production.
Then, the disassembly of the platform begins. “It starts out with a crew of welders and they take down as much of the top side as they can. Then we get involved with our diamond wire saws, cutting steel members and piping, to get the top sides off–which is everything you see above water,” shares Chris Mattingly, a project manager at Bluegrass, an offshore demolitions company.
The process can take years to complete. Abu Dhabi-based utility company Taqa is expected to remove 11,600 tonnes of topside installations between 2022 to 2028 for the decommissioning of Eider in the North Sea.
Sometimes, uprooting tonnes of equipment off the seabed is not feasible nor practical. Instead of removal, operators can leave them as they are, or cover them in rocks. However, this choice requires even more documentation as operators will need to justify leaving structures in situ. Plus, the choice is subject to international scrutiny, given the often hazardous nature of components left behind.
Some parts of refineries still work perfectly well at the end of a well’s life cycle. Companies can sell parts off to be used in other offshore platforms. Some countries like the USA and Malaysia convert some installations into marine habitats, a practice that is made illegal by current decommissioning laws in the UK.
Opportunities in Decommissioning
With 1,630 wells and over 6,000 kilometres of pipelines slated for retirement in the next decade, the UK is set to become a hotbed of activity for decommissioning. Recognising the opportunity to become pioneers, The Department for Business, Energy and Industrial Strategy (BEIS) is actively promoting ways to establish the UK as a world-leader in the sector.
It’s going to be a colourful job market. Often, several contractors are brought in to handle different elements of an offshore decommissioning project. The variety is at par with hiring for installing a rig. Below are just some roles operators will need to fill for decommissioning projects:
- Project Managers
- Surveyors
- Legislation/Compliance Specialists
- Decommissioning Engineers
- Environmental Consultants
- AUV/ROV Pilots
Much of the openings will benefit the local jobs market. Will Rowley, a chief executive at Decom North Sea, says the UK already has the capacity to work on their decommissioning projects on their own, even with competition from other countries.
Professionals can take steps such as further education to increase their chances of getting hired. In 2016, the University of Aberdeen introduced the world’s first MSc in Decommissioning. You can also take a short course on the elements of planning for decommissioning from Robert Gordon University.
With thousands of wells scheduled for decommissioning, the UK finds itself in a unique position to grow its expertise and lead the world in technology, efficiency, and safety. Those looking to enter the industry will find themselves in an exciting landscape.
If you’re looking to recruit offshore employees for decommissioning (or any other offshore role) then UTM can help. You can find out about the positions we can fill and what makes us different by clicking the link, or email us at info@utmconsultants.com.
