Offshore Decommissioning ConferenceFairmont Hotel, St Andrews8th October 2014

Delivering The Future Together:

Nigel Jenkins, Chief Executive

Delivering the Future

Together

Nigel Jenkins

CEO Decom North Sea

Delivering

DNS, Members, Stakeholders :

Streamlined Decom Template

ECE

EIA

ITF Outputs

Market Intelligence

Streamlined Decommissioning programme

Lessons Learnt (With DECC and O&GUK)

Standard Contracts

Multiparty Well P&A Cost Reduction

Mattresses

Listening to

Members

Open Space

Consultations

Member

Surveys

Facilitated

Sessions

Workshops

Face to Face

Meetings

Project Ideas

Prioritised Projects

Delivering:

help us deliver the projects industry needs

The Future

Summary of Activity

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So What Does That Mean For Specific Operators?

Summary of ActivityOperators current expectations are being outlined, however scopes

are sometimes not firm and still subject to change/approval.

Conoco Phillips:

Removal of 10 platforms in the Ekofisk field complete

Last topside removed 2014, onshore disposal into 2015

Next removal campaign: pre-planning started

P&A of 23 wells starting in Q4 2014

3-4 Topsides to remove, preparing for tender process

4-5 Substructures to remove, preparing for tender process

Onshore Disposal preparing tender process

ExxonMobil

Jotun B under consideration for removal

Activity in the Norwegian Sector

Statoil

Gullfaks SPM loading buoys dismantling and disposal ongoing

TOGI manifold disposed at Stord

H7 platform from German sector removed and disposed (for Gassco)

B11 platform from German sector removal underway (for Gassco)

Ekofisk 2/4S jacket offloaded at Stord for dismantling and disposal (for Gassco)

Huldra – under consideration for removal

BP

Ekofisk 2/4G (Valhall RP) equipment removal and topsides being prepared for removal.

Bridge removed in 2014.

HOD and Old Valhall (QP, PCP, DP) forecast removal 2017-2020

Talisman:

Decommissioning of YME Gamma MOPUStor forecast 2015-2016

Gyda – engineering down & preparation for removal 2018//2019

Activity in the Norwegian sector

Schiehallion/Loyal

regulatory approval obtained in June 2013

offshore removal & onshore disposal is underway of subsea

pipelines and production flowlines etc.

Don

expected start date of 2015/16 – subsea flowlines, injection

equipment, control umbilicals and manifolds etc.

Miller

removal of ~28,000 tonnes topsides scheduled for 2016

removal of ~18,000 tonnes six leg jacket scheduled for 2017

overall completion by end 2018

Activity in Central & Northern

North Sea

Three fixed steel jacket platforms (Brae Alpha, Brae Bravo & East Brae)

85 platform drilled wells to P&A

87kT topsides to remove; 33kT sub-structures to remove

Three subsea tiebacks (Central Brae, West Brae & Braemar)

19 subsea drilled wells to P&A

1000 T manifolds, templates and structures to remove

75 km flowlines, 38 km umbilical's, 195 km of pipelines, 57 km submarine cables

Decommissioning Activities

Project team established; Compliance activities on-going

Studies in support of Decommissioning Programme

Drill cuttings piles survey and sampling

Brae Alpha drilling rig reactivated – completion Q1 2014

Pilot well plug and abandonment to commence (3 – 4 wells) – completion Q1 2015

Brae Bravo / East Brae rig recertification study to commence Q1 2015

Activity in Central & Northern North Sea

Brae Field Decommissioning Programme

BRENT Field:

4 Platforms (Alpha, Bravo, Charlie, Delta), 3GBS, 1 Steel Jacket.

PreDecom Programme Study being finalised, robust stakeholder engagement

ongoing.

Finalising DECC Submissions

P&A complete on Delta, ongoing on Bravo, 57 of 142 complete.

Engineering Down Delta prior to single lift

Onshore working closely with Able, Quay Upgrading ongoing

Contracts with:

Allseas (lift), Able (onshore disposal),

WGPSN (decom services), Baker Hughes (Conductor Cutting/Removal, Archer

(drilling services).

Activity in Central & Northern

North Sea

Activity in Central & Northern North Sea

Quad 9 UK Sector, Leadon:

Decommissioning Programme complete and submitted to DECC, Public

Consultation now complete

Programme and Environmental Statement submitted

Preparation/engineering for well P&A ongoing (18 wells),

Subsea Structures (3x300Te) and bundles remain in place

Awaiting DECC response to programme.

Removal of controls equipment, concrete mattresses, infield jumpers and tree

spools has commenced.

No topsides;

FPSO was relocated in 2006.

Onshore recycling/disposal contract in place and items recovered to date

recycled

Maersk Oil have a DSV on-hire for 365 days in 2014, which has allowed

decommissioning works to commence at Leadon. Decommissioning of both drill

sites on Leadon field under consideration

Activity in Southern North Sea

Planning for decommissioning projects:

Markham ST-1 (6 wells 1,250Te topsides / 1,000Te jacket)

Stamford (Sub-sea Tree)

Rose

Audrey 7X

Bains

Forecast timetable: 2014-2017

Potential for A-field:

Ensign

4-legged Steel jacket NUI4 wells slots, 2

production wells 1 SS tie-back

Alison, Ann, Annabel

5 production wells

Export to TGT via LOGGS & WD

Audrey A (WD)

Steel Jacket NUI

8 Production wells

Export to TGT via LOGGS

Audrey B (XW)

Steel jacket NUI

4 production wells – no longer exporting

Activity in Southern North Sea

Viking & LOGGS Satellites

• DECC Submissions for 3 – 7 programmes in 2015/17

• plus corresp. studies/EIA/stakeholder-engagements

• Well P&A

• 4 wells abandoned out of 34-well initial tranche

• to be later followed by a further 104 wells

• >20 pipelines being flushed/decommissioned in 2015/2016

• expectation of limited need for pipeline retrieval/recovery

• Removal of 6 –16 platforms commencing Q3/Q4 2015

• Tender process ongoing

• Lift preparation commencing Q2 2015

• Onshore recycling/disposal of 6–16 structures

• Tender process commencing.

Summary of Forecast Activity

Circa 40 programmes in progress

Circa 60 further programmes under discussion

The Future:Framed by the Wood Review and the Scottish

Government TVA Report

New Regulator Action A25:

A new single decommissioning forum responsible for delivering significant

decommissioning cost reduction, promoting innovation & great cooperation,

jointly led by the new regulator and industry

Be more ambitious in what it seeks to achieve

Set a radical target to reduce cost

Work with the supply chain

A26: Technology

A27: No premature decommissioning

A28: Late Life Business Models

A29: Game changing decommissioning concepts

The Wood Review

Government and the new Regulator should play a central role in developing a

strategic approach to decommissioning with the aim of minimising decommissioning

costs to the operators and the taxpayer and achieving the maximum economic

extension of field life.

A clear strategy is required to mobilise investment by the supply chain to ensure that

technology, capability and capacity is in place, and that the TVA from

decommissioning expenditure is optimised.

To minimise the cost to both operators and the taxpayer, consideration should be

given to encouraging a pipeline or cluster of decommissioning projects – creating

economies of scale, sharing knowledge and techniques.

Scottish Independent Commission:Maximising TVA Report

Together?Collaboration delivering real business benefit

Moving from talking to working to deliver tangible benefits

DNS Projects

DECC Initiatives

PLUG

O&GUK Work Groups

Already Delivering to the Wood Review/TVA Agenda

But: Initiative Overload?

Together!

The Future of TogetherFewer, Focussed Initiatives 80:20

Coordination, Collaboration, Streamlining

“Best Person for the Job”

Focus on Delivering meaningful outputs

Panel Session…

Delivering the Future Together