Projects

Study demonstrates how technology will contribute to the OGA cost reduction target of at least 35%

The study was to assess current decommissioning practices to identify opportunities to optimise delivery of the decommissioning scope. Within the various functional elements that comprise the life cycle of decommissioning. The key strategic question considered in this report is where and how might this innovation be most effective when deployed as new technology. That is, where OGTC should focus in order to generate the maximum value.

It concluded that the 35% cost reduction target as set by the OGA is achievable and that the savings would be in 2 areas:

Methods innovation - £11.15BN opportunity
Technology Innovation - £9.55BN opportunity (£6.74BN in wells)

Industry Value

The purpose of this study was to consider the decommissioning lifecycle and assess against the various stages of the life-cycle, where there are opportunities to reduce cost. In addition an assessment of the magnitude of potential savings were made.

Technology Organisation

AECOM

For more than 80 years, clients have turned to our environmental, engineering, construction, operations and consulting services for their global activity and capital projects. Our expertise, geographic footprint and fit-for-purpose approaches improve performance and reduce risk across the spectrum of upstream, midstream, downstream and petrochemical projects.

http://www.aecom.com

ProjectAECOM - Decommissioning - Cost Optimisation (supply of services)

Challenge

Decommissioning

Vision

Maximise Recovery

Entry TRL

1

Field Trial

No

Technology

Decommissioning - Cost Optimisation

Type

Adapt

Achieved TRL

1

Technology Organisation

AECOM

For more than 80 years, clients have turned to our environmental, engineering, construction, operations and consulting services for their global activity and capital projects. Our expertise, geographic footprint and fit-for-purpose approaches improve performance and reduce risk across the spectrum of upstream, midstream, downstream and petrochemical projects.

http://www.aecom.com

Key Results

In the course of investigating innovation value, AECOM developed Innovation Pathways, and described a new and original methodology for assessing potential value of innovations using a Value Framework set against the Work Breakdown Structure (WBS) for decommissioning.
The grouping of the technologies and program management approaches that can produce cost savings and shorten decommissioning schedules into Innovation Pathways, which then align with the OGA’s Cost Enablers is new and original work.

Lessons Learned

AECOM recommend that OGTC position themselves as critical to the delivery of OGA’s enablers, so that OGA can both reinforce OGTCs role in their description of enablers and also promote the OGTC’s work alongside their own mission when appropriate. OGTC may choose to use AECOM’s innovation pathways or some alternative for this.
AECOM recognise that the opportunity within the WBS can be further analysed by UKCS region, which is particularly useful for campaigning where proximity matters, as is the similarity of well type, operation and facility.
AECOM recommend that all candidate innovations are mapped for potential against the WBS groups and by basin.
AECOM recommend a strong focus on promulgation as a key determinant of OGTC’s project acceptance criteria.

Next Steps

OGTC position themselves as critical to the delivery of OGA’s enablers, so that OGA can both reinforce OGTCs role in their description of enablers and also promote the OGTC’s work alongside their own mission when appropriate. OGTC may choose to use innovation pathways or some alternative for this.