We have a development.
From marinelink.com we hear....
"The UK oil and gas industry will be looking for a firm step towards resolving the fiscal uncertainty surrounding North Sea decommissioning when
Chancellor George Osborne delivers his 2012 Budget on March 21....
...Over the next decade, the UK Continental Shelf (UKCS) can expect to see a number of fields and installations cease production and commence
decommissioning, potentially leading to the loss of critical infrastructure.
Long term, over the next 30 years, almost 500 platforms, 8,000 wells, 4 million tons of steel and several hundred subsea wells, manifolds and
pipelines will need to be decommissioned in the North Sea area*.
With UK costs projected to be between $40bn and $50bn........"
From oilvoice.com we hear....
"Larger oil companies such as BP Plc over the years have been scaling back their operations as profit margins narrow. These companies then sell their
fields to smaller firms to whom they are more valuable and who could then tap the remaining reserves.
However, this transition has been held back because oil and gas companies are liable for the cost of decommissioning, plugging old wells and removing
production platforms and pipelines once the oil and gas reserves have been pumped out."
Read more: www.oilvoice.com...
From brookson.co.uk we hear with refreshing directness....
"Treasury sources also claimed that the Budget will see the government deliver certainty over who will foot the £30 billion bill for dismantling old
platforms in the North Sea........"
"Limited company contractors with specialist skills in the oil and gas sector could be among those set to benefit this week as chancellor George
Osborne announces his Budget.
According to reports, he is set to encourage growth in the North Sea market by ensuring current tax relief of between 50 and 75 per cent on rig
decommissioning costs is set in stone for years to come.
Ministers believe that it will help create investment to the sum of £20 billion in the future and is likely to boost work opportunities in the
Mike Tholen, of industry body Oil & Gas UK, said: "The additional recovery of the UK’s oil and gas would drive growth by securing highly skilled
jobs, supporting energy security and driving additional capital investment, in our view, to the tune of tens of billions of pounds."
It comes after Scotland's first minister Alex Salmond reiterated the potential of the North Sea's oil resources, saying there could be as many as £1
trillion worth of supplies located there."
Regarding the continued use of the disaster waiting to happen known as the Ninian Central Platform, oilonline.com tells us....
"Iona Energy is moving ahead with its plan to re-develop the Staffa field (28/16) after renaming it KELLS. Those with long memories will recall the
original Lasmo development which saw the pipeline waxed up twice before finally being abandoned.
It turns out that the crude has issues not just with wax, but with hydrates and asphaltenes as well. Strangely enough, the original pipeline
apparently had no insulation at all, according to someone familiar with the new phase of the project.
The redevelopment will have two producers, phased 18 months apart, with a 13km 6in-in-10in PIP system linking the field to CNR's Ninian Central
platform to prevent any reoccurence of the blockage issues.
Field economics are based on recovering 1.2mtoe which translates into about 7,600b/d and a small amount of gas which will likely be used for fuel on
This proposed scheme was the only economic scenario with all others either too expensive for the small reserves with alternative hosts either further
away or in need of substantial additional modifications."
The Ninian Central was built quickly using the methods and materials available at the time. Those methods and materials have evolved, lessons were
learnt as a result of the less than optimal end result. There is a great deal of pride associated with the construction of the Ninian Central. That
pride cannot be allowed to blind us to the reality. The reality is no one knows how to decommission it. There's a lot of money involved and the
intention is to turn a blind eye to the dangers and run it till it breaks.
These websites give an idea of the current state of the decommissioning industry.
edit on 20-3-2012 by Kester because: addition