oil & gas decommissioning onshore infrastructure … · offshore decommissioning activity in...
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OIL & GAS DECOMMISSIONING
ONSHORE INFRASTRUCTURE AND SUPPLY CHAIN
William Brook-Hart
Technical Director - Ports and Marine
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1.Introduction to Ramboll and the decommissioning opportunity
2.The decommissioning process, the role of the onshore supply chain
3.Onshore infrastructure and services required for decommissioning
4.Further onshore supply chain
5.Conclusions
CONTENTS
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1.0 RAMBOLL
• Engineering & Environmental Consultancy focused on sustainability
• 300 offices in 35 countries
• 13,000 employees
• Oil & Gas
• Ports, Marine & Energy Infrastructure
• Port infrastructure design
• Port master planning
• Environment and Health
• Comparative Assessment
• Environmental Impact Assessments
• Waste management
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1.1 THE OPPORTUNITY
Offshore decommissioning activity in the UKCS is predicted to increase significantly. There are various forecasts with figures estimating the value of decommissioning activity of over >£46Bn in the coming decades. However from our previous research the onshore spend of a decommissioning project is approximately 2–4% of the total project budget.
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2.0 THE DECOMMISSIONING PROCESS…SIMPLIFIED
ACTIVE ASSET
CESSATION OF
PRODUCTION
(CoP)
PREPARATION FOR
DECOMMISSIONING
OFFSHORE
DECOMMISSIONING
TRANSPORTATION OF
MATERIALS ONSHORE
DECOMMISSIONING OF
MATERIALS ONSHORE
RECYCLING / DISPOSAL
OF MATERIALS
RE-USE OF MATERIALS
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2.1 EARLY ENGAGEMENT
• Onshore supply chain should aim for early project engagement
• ‘Standard’ E&P contracting approaches may not be used
• Opportunity around new contracting approaches
• Transition to practice
• Supply chain integration generates:
• Predictability
• Health & Safety
• Lessons learnt and long term improvements
• Cost savings
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2.2 THE ONSHORE SUPPLY CHAIN - OUTLINED
• The onshore supply chain is focused on processing the materials onshore in a safe and efficient manner using an environmentally responsible process.
1. Physical infrastructure: ports/harbours
2. Project management teams including logistics
3. Decommissioning teams and specialist environmental contractors
4. Waste processing facilities for recycling, disposal or re-use
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2.3 MATERIAL PROCESSING
• Target specific material weights and dimensions
• Piece small
• Piece large
• Heavy/single lift
• Re-float and tow
• Evaluate existing onshore infrastructure and target specific decommissioning projects
• Hybrid decommissioning approaches are also being used and partnerships should be considered
• Ports can use publically available information or information from their contacts to establish how a project may be decommissioned.
Anna Henly Photography - http://www.annahenly.co.uk/oil-and-gas-photography/ Hydraoc -http://hydraoc.com/services/decommission/
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3.0 ONSHORE SUPPLY CHAIN
• Location/Accessibility
• Transit costs
• Physical infrastructure
• Quay/dock capacity
• Physical containment for contamination prevention
• Cranes and plant equipment
• Operational teams
• Appropriate skills for decommissioning onshore
• Material recycling and disposal facilities
• Transporting the waste to a dedicated facility inland or in a different country
Infrastructure
Site Services
Location and Accessibility
Operational
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3.1 LOCATION AND ACCESSIBILITY
• Location
• Shortest distance between offshore asset and onshore facility does not always dictate where onshore activities take place.
• Accessibility
• From water:
• Approach channel depth
• Quay depth/length/capacity
• From land:
• Road/rail links for transportation of waste
• Proximity to waste processing facilities
OSPAR Quality Status Report 2010 http://qsr2010.ospar.org/en/ch07_01.html
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3.2 PORT/HARBOUR INFRASTRUCTURE
• ‘Hard’ and ‘Soft’ parameters which ports should consider:
• Hard parameters – considered difficult/expensive to change
• Approach channel depth
• Overall laydown area
• Soft parameters – critical (can be sourced)
• Recycling facilities, waste certification
• Available skilled workforce
• Port craneage and mechanical handling equipment (SPMT’s)
Ramboll - www.ramboll.co.uk
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3.3 OPERATIONAL AND SITE SERVICES
• Project management
• Health, Safety and Environment
• Logistics
• Layout for optimal material receipt and processing
• Material inventory
• Partner with onshore decommissioning specialists
• Knowledge and experience of materials and connections with recycling facilities
1.AF Gruppen - http://www.afgruppen.com/Offshore-Services/Reference-projects/Ekofisk-I-Cessation-Project/ 2. Shetland Decommissioning - http://www.shetlanddecommissioning.com/subsea-decommissioning 3. ICE - https://www.ice.org.uk/news/knowledge/march-2016/construction-recycling-its-all-about-supply
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3.4 ENVIRONMENTAL REGULATORY COMPLIANCE
• Materials management in accordance with the waste hierarchy
• Understanding of waste type (e.g. special/hazardous, non-hazardous)
• Duty of Care – operators and licence holders need clarity and assurance down the chain
• Registrations/licences for waste carriers (offshore to onshore and onward transport)
• Transboundary waste shipments
• Waste management licences for storage and treatment
• End of waste scenario: certainty of reuse and suitability for that use
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4.0 FURTHER ONSHORE SUPPLY CHAIN
• Collaboration with onshore recycling facilities, equipment refurbishment contractors and waste disposal facilities
• Develop a clear process for handling the material inventory
• Re-use and/or refurbish parts – potential to feed into the Oil & Gas UK ETF Inventory Rationalisation project
• Documentation and auditing of the material routes
Shetland Decommissioning: http://www.shetlanddecommissioning.com/frigg-cessation-project-piece-small RSA: North Sea Oil and Gas Rig Decommissioning & Re-use Opportunity Report Texas Industrials: http://www.texas-industrialsurplus.com/
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5.0 CONCLUSIONS
1. There is a long term opportunity for the onshore supply chain from decommissioning
2. However ports/harbours and the onshore supply chain should develop a balanced and
flexible approach which could include;
• Decommissioning, O&G support, renewables, cruise, leisure, ro-ro etc.
3. Establish a core project management team when targeting decommissioning projects
4. Develop relationships and engage early in bids and client requirements
5. If investment is considered:
• Identify which port parameters are “easier” (from a cost/technical perspective) to
overcome in terms of improving a port’s capability
• Identify the port parameters that could require significant investment
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THANK YOU