Decommissioning of offshore oil and gas structures should be the last resort, an industry event was told recently. To make the most of the last reserves of near-end-of-life wells and platforms, operators must look for synergies with other energies, like offshore wind, to share facilities for the greatest cost efficiencies.
New technologies and different working practices to make the most expensive part of decommissioning, well plug and abandonment, cheaper, were outlined at the Late Life and Decommissioning Special Interest Group event at Norwich City Football Club run by the East of England Energy Group (EEEGR) and Decom North Sea.
Well deconstruction is estimated to be between 43 to 50 per cent of the total North Sea decommissioning costs of nearly £50bn. More than 1,200 wells need to be plugged and abandoned in the UK Continental Shelf. The Oil & Gas Authority (OGA) is demanding costs are driven down by 35 per cent.
Eric Marston , the OGA’s area manager for the SNS, said working with other energy sectors to access marginal gas pools that would otherwise be uneconomic was a key opportunity to access SNS resources that are tight and difficult to access, as well as exploring shared means of bringing power to shore.
“How can the East of England as an energy hub support and deliver the remaining potential of the SNS leveraging opportunities that exist between operators and the supply chain.
“There is the opportunity for synergies within different sectors in this geographical area – between offshore renewables and the oil and gas industry. There are synergies – and there are opportunities in capabilities and competencies in this room.”