New collaboration models for decommissioning

AMEC Foster Wheeler is developing new collaboration models for decommissioning of late-life assets in the UKCS and further afield, reports Brian Davis. With the cost of decommissioning late-life assets expected to exceed £50mn in the UKCS over the next 35 years, AMEC FW sees itself playing a strategic role in decommissioning projects. The company is currently involved in an array of complex decommissioning, including Brent C in partnership with Allseas, scheduled to use the new Pioneering Spirit; and Leman BTBH, a small satellite platform in the southern North Sea; as well as scoping numerous decommissioning projects globally.

Craig Shanaghey, Director of Operations and Asset Support for Late-life and Decommissioning for AMEC FW, maintains there are consistent challenges around the need for better collaboration between service companies and operators. He recognises the importance of Sir Ian Wood’s call for better collaboration in order to maximise economic recovery from mature fields in the UKCS. ‘Typically there has been a lot of siloed decision making. This needs to change to maximise the economic value that can be derived from assets. The sharp drop in oil price means many operators are considering earlier cessation of production from mature assets in discussions with the new Oil and Gas Authority. There’s a real need for operators, supply chain service providers and regulators to start working closer together on better solutions to prolong the life of facilities in the UKCS.’

He continues: ‘We are making significant strides in respect of better collaboration not only with the regulators but also with other members of the supply chain, to bring a more aligned methodology from late-life to decommissioning, with a more cost-effective approach, maximising value in late-life and minimising cost in decommissioning.’

Working with strategic partnerships, Shanaghey claims: ‘We’ve been able to demonstrate in excess of 30% cost savings on decommissioning. But this is just the tip of the iceberg when you get down to the efficiencies that can be achieved working with regulators, for improved scope definition, and working more collaboratively with operators at the asset, portfolio and regional level.’

Shanaghey says that AMEC FW’s late-life model is focused on taking a more risk-to-value based approach to maintenance of assets in late-life, using new products like ‘More for less’ which is aimed at the engineering and execution of small-scale modifications to in-field infrastructure. ‘With a more scalable approach to service, we reckon up to 60% cost savings can be achieved compared to traditional models.’

Basically there are four strands to the new model. First, removing waste – stopping activities that are not value adding (whether that is maintenance or modification, execution, vendor mobilisation or logistics). The second step is to do activities as efficiently as possible. Thirdly, the aim is to organise operations in a much more asset-focused way, which can reduce the operational expenditure associated with the late-life resource and the platform. Finally, AMEC FW is focused on using the expertise of subsidiaries Scopus Engineering, PI and Ingen, with a track record in analysing late-life operations and providing efficiencies in terms of reliability and availability with models to evaluate reservoir facilities-based optimisation.

The key objective is to obtain a leaner and more cost effective approach to late-life assets and decommissioning. ‘These four elements in combination provide an effective partner, performance management and contractual model for maximising field life for ageing assets and economic recovery,’ says Shanaghey.