The Decommissioning Challenge – and the Solution?
Mark McAllister, Director of the Decommissioning Company, will be discussing challenges and potential barriers to success for independent companies making the most of mature assets, at the upcoming SPE Annual London Conference and Exhibition, to be held at the Savoy Place on 27th and 28th June.
Drawing on his experience with Acorn Oil and Gas, and later Fairfield Energy, both of which were set up with the express purpose of exploiting such assets, Mark suggests that while many of the challenges facing explorationists in frontier fields are not present, the challenge of decommissioning can be an overwhelming one. However there are lights at the end of what can seem like a very long tunnel. For example, the UK Government’s recent announcement on decommissioning tax relief has the potential to ease the burden of decommissioning security.
But it may well be technology that provides intrepid Independents with the brightest light of all. Mark’s presentation will focus on the development of Single Lift Technology, which in one fell swoop promises to change the way in which decommissioning is achieved. The cost saving in terms of time is obvious – the ability to achieve in one lift what used to take a dozen or more has a significant impact on the time – and therefore the cost – of the physical work. However there are other less obvious but no less significant advantages. Much of the work can be done onshore, which has implications not only for reducing cost but in terms of HSE is far more attractive to operators – and of course dramatically reduces insurance and over-run costs.
Mark suggests that SLT will be available as a fixed price service – an offering that will no doubt be of great interest to operators of all sizes, but particularly those who are brave enough to face the challenges of decommissioning head-on.
Mark McAllister is Director of the Decommissioning Company, which assists operators in all aspects of planning and executing the decommissioning of oil and gas facilities.