Analysis of decommissioning projects in the North Sea to formulate effective strategies
Decommissioning in the North Sea is maturing as the industry experiences a transition towards greater levels of project activity over the next few years. The UK Department of Energy and Climate Change (DECC) has recently announced that they are experiencing the highest level of decommissioning programmes going forward, with plans for over 25 programmes expected over the next 2 years. With a number of major and independent operators approaching significant decommissioning projects in the North Sea for the first time, the industry is facing an era of new opportunities and challenges.
The current low oil price environment means it has never been more important to manage financial liabilities, such as decommissioning. As the number of projects underway increases, companies must establish effective organisational structures and strategic approaches to meet the diverse challenges ahead, while controlling costs. DECC figures currently estimate 14% year on year upward revisions of decommissioning estimates, with average budget overruns at 60%. If these figures are to be improved, new strategic approaches are required.
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Key reasons to purchase this report:
- Project Case Studies: Insight from the experts on some of the key projects in the North Sea to date, from BG Group, Maersk, Marathon, Premier & Shell.
- Plan Costing: Successful cost reduction and budget management initiatives operators can employ which will aid in the financial planning of decommissioning projects.
- Achieve Effective Delivery: The most effective methods for decommissioning structures and installations to date.
- Understand Key Risks: Insight into the technical, regulatory and other risks major decommissioning projects in the North Sea have faced.
- Profile the Projects Environment: How decommissioning projects are progressing and likely future activity rates in the North Sea.
Key questions answered:
- What strategic approaches have operators in the North Sea taken towards decommissioning projects & how successful have these been?
- How can a portfolio of decommissioning projects be successfully managed to achieve the optimum equilibrium between scheduling and costing?
- What specific industry lessons learned from past projects can be used to improve the performance of future work?
- What are the overarching practices, standards, and regulatory requirements that drive the performance of North Sea removals and decommissioning?
- What are the best practices when budgeting and cost planning for a project?
- How can operators control their costs on decommissioning projects?
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