Three leading companies have joined forces to investigate reducing the cost of decommissioning projects in the UK North Sea
Three of the leading players in the oil and gas industry’s decommissioning sector have launched a new late-life operations and decommissioning company to address the cost of dismantling ageing offshore oil and gas assets, primarily in the UK Continental Shelf.
Aberdeen-based Fairfield Decom aims to create a new business model for decommissioning projects designed to reduce complexity and cost, the number of contractual arrangements and deliver operational efficiency. The new company is subject to the approval of the Norwegian Competition Authority.
In a 2018 study, the UK’s Oil and Gas Authority (OGA) estimated that decommissioning offshore structures in the UK North Sea would cost about US$70Bn, a 7% decrease from earlier estimates. The goal of the oil and gas industry and the OGA is to reduce decommissioning costs by 35% to US$49Bn through better planning and project execution. There are about 5,000 wells, 250 fixed installations and 3,000 pipelines that need to be dismantled in the UK North Sea.
Fairfield Decom brings together the combined expertise and assets of the three partners: Decom Energy, Heerema Marine Contractors and AF Offshore Decom. Fairfield Decom will manage, integrate and then execute end-to-end late life and decommissioning activities.
Heerema has over 50 years of experience in transporting, installing and removing offshore energy facilities, including fixed and floating structures in shallow, deep and ultra-deep waters.
AF Offshore Decom, a subsidiary of the Norwegian contracting and industrial group AF Gruppen, is a specialised contractor that has been developing and executing solutions for removing and recycling offshore installations for the past 15 years.
Decom Energy is the first fully outsourced end-to-end, late-life and decommissioning operator in the North Sea with its subsidiary, Fairfield Energy, decommissioning the Greater Dunlin Area.