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UK & Netherlands Oil & Gas Hackathon

Venue: Norwich City Football Club
Date: 09/10/2018

*BOOKING NOW CLOSED* Please click here for the map of the event venue. PLEASE NOTE: The event will take place in the Norfolk lounge.

Collaboration and lowering decommissioning costs in the Southern North Sea basin

                                            

** Please note: This event is free to attend. To register your interest, please complete the booking form below**

As the Southern North Sea matures decommissioning is now a reality for many operators and is certainly on the radar for others.

Estimated decommissioning costs for the UK side of SNS published by the OGA are in the region of £7bn with the Netherlands forecasts also significant. For operators decommissioning is an expense, with no profits therefore working collaboratively with other operators and key stakeholders will be essential to help reduce these burdensome costs. Know-how, innovative solutions and technologies will be vital, and these reciprocal events are a major Southern North Sea effort to bring Operators and Supply Chain companies together to collectively come up with the best solutions to lowering decommissioning costs.

The UK Hackathon will feature presentations from UK & Dutch operators including Shell, Spirit Energy and Oranje Nassau who will each share their current challenges in decommissioning followed by interactive sessions to discuss potential solutions. A number of the key challenges will be shared prior to the event and undoubtedly many more will emerge during the interactive sessions. These discussions will be captured and shared with attendees, and will be an invaluable source of information to the supply chain providing guidance and direction as to what areas of innovation their potential clients are looking for. It will also be a unique opportunity to make new operator contacts across the wider UK/ Netherlands basin.

There is an acceptance many cost saving solutions lie with the contractor community and these events have in the past proved effective in bringing together service companies with potential clients to highlight their innovative and problem-solving approach.

This is an invitation only event with limited spaces so please respond completing and returning the form (which can be found on the event page by clicking the links shown below).  As mentioned above there will be interactive sessions and it will be important that attendees will have the relevant expertise to discuss their solutions/ideas articulately with the operator project specialists. Please complete the form with how many participants you wish to send, their name and area of expertise/job title and what they can bring to the event which will be free to attend.

The Netherlands event is by Nexstep invite only.

AGENDA:

0800 – 0830 Registration and Refreshment

0830 – 0840 Welcome and Scene Setting

0840 – 0955 Challenges Overview from Shell/Nam, Perenco, Neptune, Spirit Energy and Oranje Nassau Energy

0955-1015  Networking Refreshment Break

1015 – 1145 Hackathon Sessions 1 & 2

1145 – 1230 Lunch and Networking

1230 – 1400 Hackathon Sessions 3&4

1400-1430 Feedback and Wrap Up

1430-1445 Next actions and Summary

1445 – 1645 Optional One to Ones Sessions with Operators

Challenges provided (so far, this will be updated as we receive them):

Challenge 1: Removal of facilities – traditional oil and gas approach

Challenge: How to place smart (technical) splits in the abandonment scope, so that Operators can let go while remaining to be the responsible owner and Contractors can safely take over the job

Background:

  • During decommissioning the plant could be transformed from an oil & gas factory to a Sugar factory and then to a new energy hub or complete removal
  • Traditional approach is a very stringent HSE ruleset, based on high risks in oil & gas industry from a process safety perspective (not applicable from a  personal safety or marine perspective)
  • Based on risk, oil and gas firms can select a more hands-on or hands-off approach. Expertise of the E&P companies is managing oil & gas related risks – demolition offers a different expertise area
  • How can abandonment be split in different phases where in every phase the appropriate risk management and expertise are maximized

Challenge 2: Differentiation of contractor landscape

Challenge: What new alliances can be formed and who should be in the lead for what?

Background:

  • The same companies who are involved in construction and maintenance are players in the abandonment world
  • This impacts the opportunity to go different about it and often leads to reverse construction
  • The opportunities are to see waste as value, maximize the re-use content and to use available time to the advantage
  • Expertise outside of the traditional oil & gas industry is rarely included (e.g. water well industry, abandonment outside the oil & gas)
  • What can service providers offer and which role can they play in a more differentiated landscape of contractors with external expertise?

Challenge 3: The Watermelon model

Challenge: Which commercial models are best suited to cater for surprises in execution in P&A while maintaining a win-win situation? What is the best risk distribution between operator & contractors?

Background:

  • P&A of wells are like opening a water melon – although they look green on the outside, one only knows how red they are when opening them
  • With P&A of wells you need to expect the un-expected due to lack of data and well integrity issues
  • Traditional commercial models are difficult the incentivize contractors due to these risks. With day-rate models more scope is in principle good news for contractors and bad news for operators, alternatives do transfer risk to the contractors.
  • When transferring risk – what control can be given and how to prevent risk is impact prizing.
  • What commercial models are very well suited to cater for unknown scope, while maintaining a shared incentive to reduce overall cost

Challenge 4: Cost certainty and reduction

  • Require multiple campaigns using expensive, in demand assets such as DSVs, Jack up rigs & LWIV
  • Schedule constraints due to platform operations usually dictate when the vessels are due onsite
  • Vessel costs are high due to a captive market, available time slots.
  • Almost impossible to Lumpsum works due to the nature of the operations and the degree of change that is encountered, even with a young asset.
  • The cost to mobilise a DSV for a small flushing scope or a Jack up for an individual P&A is almost cost prohibitive.
  • Missed opportunity to conduct works in the downturn.
  • Inability to reliably estimate the volume and cost of the work to be undertaken – uncertainty range can be as high as 40%

Challenge 5:  Decommissioning delivery capability

  • Opportunities to tie in with larger field decommissioning scopes being undertaken by larger operators makes economic sense.
  • Lack of Lessons Learned. Execution efficiency and continuous improvement is reduced due to small work scopes.
  • No set UK or global Strategy as we are a new company with limited assets requiring decommissioning. Not enough work to create a portfolio plan.
  • Cost assessments are not based on analysis of actual technical data but initial project estimates using industry rules of thumb.
  • Decommissioning competes with other, more exciting activities such as exploration, development, and even late-life asset ­operation. MER.

Challenge 6: Scope, Guidance and Stakeholders

  • Due to the long drawn out nature of decommissioning a team is sometimes required for a long duration for what is a relatively simple scope.
  • Large amount of regulatory paperwork needing constructed by specialist 3rd party companies. Not particularly value adding.
  • Time taken to get partner approval and also methodology by in from Stakeholders such as the NFFO & Public.
  • Document approval times.
  • Cost for Decommissioning licences – Flat fee.
  • Spending with no return so Management and stakeholder approach can be restrictive.

Challenge 7: How can a small operator de-risk its abandonment?

  • ONE’s core business is oils and gas production and exploration, not abandonment
  • Can we, without compromising integrity, outsource abandonment completely
  • How can we control costs?
  • How can we control future liabilities?

Challenge 8: Can we make decommissioning a MER UK business case?

  • After an assets useful oil/gas producing life, is there a re-use option?
  • Can abandonment and production complement each other?
  • How can we incorporate the energy transition into abandonment?

Challenge 9: SNS platforms are small

Challenge: How can we reduce the critical path without increasing resources and increasing the safety risk?

  • Background:
  • Platforms are small, e.g. simple 4-leg steel platforms with max. POB typically 12
  • Size of platform limits what operations can be completed at the same time
  • POB limits how many people we can put on the platform at any time

Challenge 1: Making time work for us

Challenge: How can we make the most of the fact that we have some flexibility on when we complete dismantlement operations? i.e. we can wait until the time/cost is right for us

  • Background:
  • Depending on the integrity of the topsides/jackets, it can be left in lighthouse mode for a number of years until we are ready to remove it
  • Removal of topsides and jackets does not have to be done at the same time
  • We can ‘harvest’ the topsides and jackets at a time that’s right for us, i.e. coordinate with other fields, when unit costs are cheaper, etc.

Challenge 11: Share the pain, share the gain

Challenge: Suppliers want to get involved in Decom but are unwilling to take on any ownership of risks or optimize their prices if we take all the risk

  • Background:
  • With P&A of wells in particular there are a lot of unknowns due to lack of data and well integrity issues
  • Similarly with Dismantlement – things never go quite as planned either due to weather or ‘surprises’ from the original installation
  • We see a large variation in prices for work that is tendered, with many at the top end not willing to take on any risk

Challenge 12: Underwater cutting equipment for pipes and external cutting of large diameter pile 

Challenge 13: Underwater dredging including pile clean out equipment

Challenge 14: Seabed recovery of concrete protection mattresses

Challenge 15: A multi operator campaign approach to W2W operations

** Please note: This event is free to attend. To register your interest, please complete the booking form below**


Booking is not available at this time.