An Oil and Gas Authority director has said the move to create an ultra deep water facility in Scotland is essential to compete with Norway for decommissioning work.
Stuart Payne, director of HR and supply chain, said developing the Dales Voe port in Shetland for ultra deep vessels would help capitalise on the North Sea decom opportunity.
He said: “In recent years, we’ve seen a number of sizeable platform removal and disposal contracts awarded overseas to places like Norway, where there’s also a first-class supply chain.
“The UK needs to be able to demonstrate it can compete against not just the Norwegian suppliers, but suppliers from all over the world.
“There is a real race underway to build up capability and take the market share.”
Dundeecom is already working to establish a partnership with Norwegian operator AF Gruppen in the hope of establishing a decom base in Dundee.
The government agency’s latest estimate put the projected cost of decommissioning the North Sea’s facilities at £58 billion.
Mr Payne said he expected Dundee to play a “key part” in future decom work.
“We know there may have been disappointment around a recent Scottish Government announcement identifying Dales Voe in Shetland as their preferred location for a possible ultra-deep water port,” he added.
“But we should recognise that an ultra-deep water port is only one specific type, and having one doesn’t mean we have solved the decommissioning challenge – far from it.
“Given the scale and diversity of the UK’s decommissioning challenge and the numbers of platforms, wells and infrastructure we’re talking about, it’s clear that what the UK needs to prevent this work going overseas is a selection of different ports with varying capabilities and a skilled, capable supply chain.
“I fully expect Dundee to be a key part of that future.”
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