The Oil and Gas Authority (OGA) today identified the six elements that will turn the UK into a decommissioning powerhouse.
The regulator set them out in its decommissioning delivery programme, which explains how and when the priorities set out in its strategy document – published in July − will be delivered.
The elements are: cost certainty and reduction; delivery capability models; regulatory guidance; decommissioning programme consultation; well pulling and abandonment (P&A) optimisation programme; and industry engagement.
The programme primarily focuses on actions which can be put into motion between now and the end of the second quarter of 2017.
A cost estimate for decommissioning should be agreed upon this year, with a list of cost saving opportunities to be pursued at the start of 2017.
The last estimate provided by an independent adviser was £47billion through to 2050, but the OGA does not think it is reliable. Whatever the estimate comes to, the OGA wants to cut it by about 35%.
Drawing on input from the oil and gas industry, and other sectors, the OGA also wants to compile a report on the UK supply chain’s capabilities by the end of 2016, before recommending pilot projects next year.
As for regulatory guidance, the OGA’s goal is to make sure policies are clear, and to help companies understand its role, and that of the UK energy department. To that end, it will publish a “planning road map” later this year.
A consultation process will be circulated to tell companies which steps they need to fulfil before submitting decommissioning plans to the energy department.
The fifth element, which is the well P&A abandonment programme, will highlight the cost savings which could be achieved if companies work together.
On industry engagement, the OGA recognises the importance of allowing the industry as a whole to contribute to the strategy. It also intends to clarify which obligations have been placed on companies through recent legislation.
The delivery programme said an engagement plan will be drawn up by the end of 2016.
Next month, the OGA will host a one-day conference aimed at tackling maximising economic recovery (MER UK) in the North Sea.
The event, dubbed MER UK in Practice, will lay the groundwork on what the OGA expects the industry to do and what it is committed to deliver.
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