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March 26, 2018

Decom North Sea Sheds Light on Supply Chain Capability

Decom North Sea has published aDecom Directory in conjunction with Scottish Enterprise and the Oil & Gas Authority, which provides details of companies which have the capability to service the UK/UKCS decommissioning sector.

Supported by EEEGR, FPAL, EIC, FEDF and NOF, the directory captures the capabilities of almost 300 supply chain companies which can service the UK/UKCS across17 newly-defined supply chain activities within a decommissioning work break down structure (WBS); from planning stages through to site remediation and long-term monitoring. Created with the assistance of EEEGR, the structure has been developed to align with the industry-recognised Oil & Gas UK WBS.
Commenting on the launch of the directory, Tom Leeson, Decom North Sea interim Chief Executive said: “The Decom Directorywill have a fundamental impact upon understanding the current capability to service UK/UKCS decommissioning activity.
“As the sector continues to evolve,the directory allows both operators and the supply chain to plan for the future, identify potential consortiums and manage supply peaksby categorising supply chain companies by key activity, capability, case history and geography.
“The directory also provides an understanding of whether companies provide this service as part of their core business, integrated services or whether they sub-contract the work; it will assist in identifying alternative contracting and commercial arrangements, ensuring the supply chain is ready to optimise the opportunities that arise.”
David Rennie, Head of Oil & Gas at Scottish Enterprise, said, “This directory is part of our approach in supporting the Supply Chain as set out in our Decommissioning Action Plan published last year. 
“With decommissioning activity increasing over recent years, and an annual £1.5-2 billon of expenditure forecast over the next five years, hundreds of supply chain companies in Scotland have already been and will continue to be involved in decommissioning projects.  From complex large steel platforms to subsea wells and fields, a huge amount of planning and preparation goes into developing decommissioning programmes and executing the work.  
“A considerable body of knowledge is being amassed and with a large number of assets due to cease production over the next decade, this experience will be brought to bear and consolidated. The directory will provide an invaluable guide to our capability in Scotland and will undoubtedly be a useful resource for all with an interest in decommissioning.”
Bill Cattanach, Head of Supply Chain at the Oil and Gas Authority said: “Decommissioning is happening now and as the majority of work will be executed by the Supply Chain it is paramount we have the necessary capability and capacity to carry out the work in a cost-efficient manner. The Decom Directory is a timely and valuable resource which will highlight and promote the strong expertise which exists in the UK’s supply chain.
“From April, the OGA has mandated Supply Chain Action Plans (SCAPs) for all decommissioning projects to promote a culture of collaborative engagement between operators and the supply chain. The directory will provide useful information in support of this efficiency initiative benefiting both operators and service companies by providing a comprehensive listing of companies and technological solutions which will contribute to the MER UK vision of reducing the overall cost of decommissioning the UKCS.”
A complementary report, providing a baseline assessment of the supply chain’s capacity to fulfil the anticipated UK decommissioning demand is due to be published shortly.
Decom North SeaOil & Gas AuthorityOil and Gas Authority
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