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Decommissioning fund awards for Scotland

Six projects across Scotland are to be offered a share of £1.5mn in the second round of the Scottish government’s Decommissioning Challenge Fund awards. Grant offers have been made to six projects in Edinburgh, Glasgow, Kishorn, Shetland and Orkney.

The fund supports infrastructure improvements and innovation to deliver decommissioning of North Sea oil and gas infrastructure. Projects in this round (see Table) include innovation in well plugging and abandonment, dry dock upgrades, quayside strengthening investigation and two specialist decommissioning equipment projects in Shetland.

Paul Wheelhouse, Minister for Business, Innovation and Energy, commented: ‘Decommissioning offers a variety of opportunities for Scottish based firms, right across the supply chain. Our Decommissioning Challenge Fund is a clear signal to the market to think seriously about decommissioning – a market that is forecast to be worth up to £17bn over the period to 2025 – and to plan and invest accordingly.’

Scotland’s new Energy Strategy, launched in December 2017, recognises that decommissioning offers significant economic opportunities, and commits to enhance the capabilities and capacity in Scotland. Alongside the Decommissioning Action Plan – launched by Scottish Enterprise and Highlands and Islands Enterprise in 2016 – the Decommissioning Challenge Fund aims to help Scotland’s oil and gas sector make the most of decommissioning opportunities at home and abroad. 

Project name

Lead organisation

Project

Upgrade and improvements of dry dock gates and infrastructure facilities

Kishorn Port

Permanent pumping system for the dry dock, concrete repairs for extra protection, roadway surfacing for easy access and fendering for flood tunnels to prevent damage to flood covers.

Increased capacity of equipment for temporary/reusable steelwork

Lerwick Engineering & Fabrication

The purchasing of a CNC plasma profiler, and a high capacity bandsaw and material handling system.

Tubular cutting tool

Downhole Energy

The project has a design for a new type of cutting tool, increasing the speed of cutting.

Shetlands Specialist Decommissioning Service Provider

EMN Plant

The project is focused on initial plant and machinery requirements, as well as upskilling staff.

Lyness oil and gas decommissioning base

Orkney Isles Council (OIC)

The project represents the invasive investigation, geotechnical analysis, and bench testing of the subsoils within the development site.

Going Full Circle

Dales Marine Services

The gates and quayside of the Leith site are around 100 years old. Investment is for new gates and operating systems and strengthening of surrounding berths.

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