20. Decommissioning The Next Phase

Wednesday, May 22, 2024
3:45 PM - 5:00 PM
Meeting Rooms 1 & 2, Level 2



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Overview

How a project is managed at the end of its life is as important as the rest of its lifecycle. This session considers case studies and examines potential for synergy with energy transition projects.

Presentations

Australia’s 2024 Decommissioning landscape
Francis Norman & Shaun Sadler* (Centre of Decommissioning Australia)
Decommissioning and restoration: early planning is critical to an efficient and risk-minimised process
Quinton Crew, Robbert deWeijer & Kylie Seccombe (dss+), (Presented by Janko Reinders* (dss+)
Planning for Complex Decommissioning Projects in Australia – Gippsland Basin Case Study
Richard Perry* (ExxonMobil)
Maximising opportunities from integration of decommissioning and offshore wind activities
Andrew Taylor* (Xodus Group)


Speakers

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Dr Shaun Sadler
General Manager
Centre of Decommissioning Australia

Australia’s 2024 Decommissioning landscape

3:47 PM - 4:01 PM

Abstract

Australia’s decommissioning workload has continued to grow at a pace in the past year, several scopes are now awarded and significant progress being achieved on a number of studies. However, there is still a lot to do for Australia to deliver its decommissioning outcomes efficiently, safely and to best achievable standards. This paper will provide an update on decommissioning developments across Australia as well as highlighting some key activities helping grow a sustainable local industry.
Coming off a low historic volume of activity of the previous decade, Australia’s decommissioning industry has had to rapidly scale and skill-up to address the significant volume of activity anticipated for the remainder of the decade. This increase has impacted across the entire value chain, with everyone struggling to find experienced staff, access technologies and secure the all important vessels to execute the work.
Government is moving to support local companies grow into the industry. Regulators are working to balance societal expectations and industry plans. The service sector is mobilising into Australia, and everyone is looking for access to facilities to land equipment, understand recycling and disposal chains. Meanwhile the workforce, keen to understand where to position themselves for the energy transition, are looking for opportunities.
CODA has continued to work strategically to build the local industry. In the past 12 months developing a new online lookahead, completed several port studies, are beginning to map industry skills needs and looked deeper into materials disposal and recycling.

Biography

Dr Shaun Sadler is currently General Manager at Centre of Decommissioning Australia (CODA). Shaun has over 30 years’ experience in the oil and gas industry, working for start-ups, mid-caps and global multinational E&P organisations worldwide. From a background in geoscience, technical management and opportunity leadership, he has pursued more diverse leadership pathways, including emissions management and innovation strategy. Shaun has a BSc in Applied Geology from the University of Plymouth (UK) and PhD in sedimentology and basin analysis from the National University of Ireland.

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Mr Janko Reinders
Senior Consultant
dss+

Decommissioning and restoration: early planning is critical to an efficient and risk-minimised process

4:02 PM - 4:16 PM

Abstract

Over the next 7 years, according to Wood Mackenzie it is estimated that as many as 380 fields Oil & Gas facilities will be decommissioned across Asia Pacific.
Decommissioning is the last lifecycle phase of an oil and gas facility. It is often seen as an expensive cost of doing business and for many operators, involves a process they don’t fully understand.
For this reason, many operators defer the planning of decommissioning until the last minute. However just as the associated development project began many years prior to the commencement of construction, the decommissioning project should also begin well before any of the structure is removed – with the double objective of minimising risk whist planning and implementing an efficient process.
For decommissioning to be efficient – from an operational, sustainable, regulatory compliance and financial perspective, it must not be limited to an isolated project group. Rather, it must leverage corporate knowledge, processes and tools, facility operations, lessons learned from other decommissioning projects and the original facility development, to support the identification and management of the decommissioning risk profile.
Many opportunities may be missed if decommissioning risks and opportunities are not addressed in a timely enough manner.
In this presentation, dss+ will provide Oil & Gas companies with pragmatic guidance on how to plan for a decommissioning process that is managed well from an operational, risk, and financial point of view – preventing cost blowouts and safety incidents.

Biography

Janko is a part-time senior consultant for the Oil, Gas & Energy Sector in the Australasia region. He has 23 years of global industry experience with Shell International as well as smaller energy operators. Janko has fulfilled senior individual contributor roles as a production technologist as well as engineering management positions, for deep-water and land assets, both green- and brownfields. Risk management and asset P&A are very close to his heart.

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Mr Richard Perry
Decommissioning Project Manager
ExxonMobil

Planning for Complex Decommissioning Projects in Australia – Gippsland Basin Case Study

4:17 PM - 4:31 PM

Abstract

Over more than 50 years, safe and successful installation projects have enabled progressive development and expansion of the Gippsland Basin Joint Venture off the coast of Victoria, Australia. This has resulted in a highly integrated network of 19 offshore platforms which are now starting to progressively reach the end of their productive life and the detailed planning for the first phase of decommissioning projects has increased in intensity. Decommissioning of these assets is planned to take place in a number of campaigns. The Campaign 1 Decommissioning Project includes up to 13 platforms to be removed, which is likely be the largest single project of its kind in Australia. Experience of similar decommissioning projects in Australia is very limited, resulting in unprecedented challenges across many aspects of this project requiring creative, innovative and adaptable solutions to be developed to enable an efficient execution methodology. This paper will explore the strategies, challenges and successes involved with the early planning and development phase of the Gippsland Basin Joint Venture, Campaign 1 Decommissioning Project. Key insights from contracting, to execution planning and stakeholder engagement will be discussed, promoting sharing across the industry and efficiency for future Decommissioning Projects in Australia.

Biography

Richard started his career in Melbourne with ExxonMobil Australia before venturing overseas with the company, where he spent the next 18 years in a variety of positions leading offshore upstream oil and gas projects across the globe. From shallow water conventional installations in Malaysia, to deep water subsea developments in Nigeria, and more recently, concrete gravity structure construction and installation in the arctic waters off Newfoundland in Canada, Richard has extensive experience across all aspects of planning, contracting and execution of major projects. Richard returned to Melbourne in 2021 and became the Project Manager for the Gippsland Basin JV Campaign 1 Decommissioning Project in Bass Strait. This project involves the preparation, removal, transportation, and recycling of 12 offshore platforms that have reached cessation of production. Richard is actively engaged across the Decommissioning Industry in Australia through associations such as the Industry Advisory Committee for CODA, the Industry Reference Group supporting the Northern Endeavor decommissioning as well as being a member of the decommissioning sub-committee within AEP.

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Mr Andrew Taylor
Team Lead – Renewables & Advisory
Xodus Group

Maximising opportunities from integration of decommissioning and offshore wind activities

4:32 PM - 4:46 PM

Abstract

Australia's decommissioning outlook has previously been estimated at $63 billion of activity (USD 40.5 billion), while Australia's total technical potential for offshore wind could be estimated at approximately $11 trillion (assuming $5 billion of investment per gigawatt and 2,200 gigawatt of technical resource).
Both offshore wind and oil and gas industries require access to similar facilities, specifically ports, to support execution. Many ports are pursuing expansion plans independent of national opportunities across industries.
This paper proposes to discuss the opportunities available through improved supply chain planning, specifically in relation to ports, for decommissioning and offshore wind activities. These reflections arise from work that Xodus has completed in the United Kingdom for port facility providers and support delivered locally for decommissioning and offshore wind activities. In particular, it will discuss geographic advantages, shared vessel requirements, capability alignment across facilities, shared workforce planning and the opportunity for common service providers located at port.
Without improved coordination, there is a risk that constraints at port will defer both decommissioning and offshore wind activities, risking integrity challenges for oil and gas assets and an impact on Australia's energy transition objectives.

Biography

Andrew is the Renewables Lead for Xodus Group in Australia and has more than 18 years’ experience in policy, regulation, strategy and driving industry collaboration. Over the last three years, Andrew has supported multiple offshore wind clients, including as a secondee to Subsea7 as Project Director for the Sea Fern Floating Offshore Wind Development. Prior to Xodus, Andrew was the General Manager Decommissioning at NERA where he led transformation of industry’s approach to decommissioning, through establishment of the National Decommissioning Research Initiative and the Centre of Decommissioning Australia.

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Mr Ross Provan
Director Late Life & Decommissioning
Petrofac

Session Chair

Biography

Ross is Petrofac’s Global Director of Late Life and Decommissioning. Since joining in 2021, his impact has been illustrated through securing several large-scale decommissioning contracts from Australia to the Gulf of Mexico, and the UK. Working with the operator community, extended supply chain, regulators, and industry bodies, Ross is helping to shape the sector – which was recognised by his peers in 2022 with the Decom North Sea “Rising Star” award. A chartered mechanical engineering, with a master’s in design engineering from the University of Strathclyde, Ross has had a diverse, international career, working for international operators and contractors, developing his engineering, operations, drilling, subsea, subsurface, project assurance, and major capital project experience. He credits his MBA in Oil and Gas Management with providing him a deeper understanding of how the energy sector functions, underpinning economic drivers, and the importance of strategic thinking – elements that play a crucial role in his approach towards late life asset management and decommissioning.

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