DNS Outlines Strategy to Aid UK Companies in Decommissioning Work

DNS Outlines Strategy to Aid UK Companies in Decommissioning Work

Tuesday, March 29, 2011
Rigzone Staff
by  Karen Boman

Decom North Sea (DNS), an industry body established in 2010 to assist UK companies in obtaining work opportunities in future North Sea decommissioning activity, now has more than 120 members, and is stepping up effort to help companies pursue decommissioning work opportunities.

DNS Chief Executive Brian Nixon said, "With around £1billion of decommissioning expenditure forecast annually for the UK North Sea by 2015 and only 7% of projects completed to date, there is a clear need for us to support our supply chain to secure maximum business potential.

"Compelling support was recorded for Decom North Sea to look at increasing current activities, namely networking events which provide value to our members; regional and topical focus groups; industry communication and knowledge sharing; mapping the supply chain strengths and capabilities; further development of appropriate contracting models: and facilitating introductions across the industry."

In addition, a range of more strategic initiatives and opportunities have been identified and prioritized including the following:-

• provision of detailed and reliable market intelligence drawn from existing industry sources and filtered to be easily accessible by DNS members – (an industry led workgroup has now been established to lead this initiative)
• facilitate groups of members to share information, form alliances, address technologies etc.
• research decommissioning in other sectors including nuclear and salvage, to study how they deal with timing uncertainty, identify areas for transfer of experience, cross business opportunities etc. – (a first workshop on nuclear synergies has been held, with a separate group reviewing the salvage industry)
• be active with governments, regulators and operators on behalf of DNS membership
• understand capabilities and gaps relating to people, processes and technologies, and then put in place mechanisms to address the issues and opportunities – (a skills steering group is now in place)
• promote existing capability, new capacity, case studies etc.
• engage with the financial investment community to understand their drivers – promote awareness of members capabilities and needs, facilitate introductions
• look overseas to identify market opportunities and to promote member capabilities.

Nixon added, "These initiatives are listed in line with the priorities established recently by board members. The next step is for Decom North Sea to scope out and assess the level and type of resource that will be required to progress and deliver them."

In line with the priorities identified, DNS has organized a program of events, seminars and share fairs in collaboration with regional energy development organizations and government agencies, with activity covering the north-east, Highlands and Central Belt in Scotland, and the north-east and south-east in England where most of the potential supply chain for the decommissioning market is based.

DNS Board Chairman Murdo MacIver said, "One of the principle reasons for setting up Decom North Sea was to provide a mechanism for sharing non commercial information and to establish a platform that would allow companies from across the industry to obtain consistent and clear information. The recent strategy consultation, which involved all the new directors recently voted onto the board, has fully supported this and it is great to see some real drive and enthusiasm from the board in delivering these strategic objectives."