Dutch group One-Dyas has been rapped on the knuckles for not properly assessing rust risks on a Southern North Sea platform.
It follows an “uncontrolled hydrocarbon gas release” – blamed on “weld root corrosion” – from the company’s Sean installation on February 17.
In the wake of the leak, the Health and Safety Executive (HSE) has deemed One-Dyas’ review of the operational dangers arising from the corrosion to be wanting.
According to the offshore watchdog, the operator did not document a “suitable and sufficient assessment of all possible risks” arising from the weld root corrosion on Sean.
One-Dyas has just over a week left to comply with the improvement notice, issued by the HSE in April.
The UK Government agency said: “You have failed to fulfil your obligations in that you have not performed and documented a suitable and sufficient assessment of all possible risks associated with the ongoing operation of process plant that has been affected / is likely to have been affected by the mechanism of preferential weld root corrosion identified by you as the cause of the uncontrolled hydrocarbon gas release reported to have occurred on the Sean PD Compressor deck on 17 February 2023.”
The company has been approached for comment.
Sean complex
One-Dyas acquired a 50% operated interest in the Sean complex from Shell (LON: SHEL) in 2015, as well as a 100% operated interest in the adjoining exploration block.
SSE E&P UK holds the remaining 50% stake in the cluster, located about 45 miles off East Anglia.
In picking up the ageing Southern North Sea field, which started up over 30 years ago, One-Dyas aimed to extend the life of Sean by “reducing operational costs and increasing recovery”.
Sean comprises three platforms, one on Sean North (RD, or Sean Romeo) and two bridge linked platforms on Sean South (PD and PP, together Sean Papa), which export to the Bacton terminal.
A decommissioning plan for the three North Sea platforms was lodged with the UK regulator in 2021.
A sales process in motion
Headquartered in Amsterdam, One-Dyas has interests in fields the length and breadth of the UK North Sea.
Among the assets on the group’s books are EnQuest’s (LON: ENQ) Catcher, TotalEnergies’ (PARIS: TTE) Elgin Franklin, Shell’s Arran and Equinor’s (OSLO: EQNR) Mariner.
It also has a 5% stake in the Pensacola field, spudded earlier this year and hailed as the largest find in the Southern North Sea in a decade.
The company’s stakes could be poised to change hands though, after One-Dyas launched a sale process for its North Sea and Gabon assets in 2021.
Production in the two regions almost 30,000 barrels of oil equivalent a day, according to documents seen by Bloomberg.
Reports emerged last year that Waldorf Production had begun exclusive talks to buy the Dutch oil and gas company’s UK interests.
It was thought the deal could exceed $1 billion, but things appear to have gone cold since rumours first appeared.