Offshore decommissioning market
Description
On Monday 20 November 2017, the KIVI Kring Drechtsteden is organising a lecture given by Theo Vollaard, until recently analyst and head of projects
at AMO, Atlantic Marine and Offshore.
Theo has participated in the market as a contractor for decommissioning offshore installations and doing research.
His first research provides a market analysis of offshore installations in the North Sea. He describes the framework conditions and market potential for a dismantling facility and attempts to answer the question whether Dutch ports are an ideal hub for dismantling and processing offshore installations.
His second follow-up study describes the issue of liabilities of oil companies when disposing of a platform and related waste streams. The design of the process and contract structure with the expected costs of removing and dismantling offshore installations. The expected costs are based on a probability analysis that earmarks installations according to their degree of eligibility for disposal.
The current forecast expects an increase in projects in 2020, after which activity will decrease again after 2025. The current calculated market potential states that there are 392 offshore installations earmarked for removal and decommissioning, including 36 in the Netherlands, 66 in Norway and 290 in the UK. This is 30% of all installations in the North Sea. The cost of removal and decommissioning (about 40% of the entire budget as other well abandonment costs are not included) for this has been scaled at EUR7.71 billion. In the coming years, the 'burden' will increase further by EUR 4.07 billion for the 275 rigs that will then come to the end of their economic life. By weight, this means 3.5 million tonnes of steel or around 475 Eiffel Towers
Location
Organiser
Drechtsteden Circle
Name and contact details for information
Ron Dolstra