decommissioning joint industry projects workshop
TRANSCRIPT
Decommissioning Joint Industry Projects Workshop
27th March, Aberdeen Exhibition & Conference Centre
introduction
6 potential new initiatives identified through either:-
member survey
ideas or recommendations come from our members – not from DNS executive
member consultation
conference sessions
individual meetings
open days
ambition for today’s workshop
1introduce each idea or recommendation to our membership and briefly discuss the perceived benefits
2establish the level of industry interest and possible support for each initiative
3capture names of people interested in participating in a future dedicated workshop for each topic
4capture any initial thoughts or suggestions on the scope or approach to each initiative – who else should be involved?
5prioritise which initiatives are seen as being of most value / benefit (using on-line voting system)
approach to the workshop
6 sessions of 20 minutes each
introduced by an industry official (in most cases)
first 3 sessions facilitated by Dorothy Burke, Decom North Sea
30 minute coffee and networking break
second 3 sessions facilitated by Davi Quintiere, Accenture
voting across all initiatives to obtain some prioritisation
snack lunch and networking
1) Lessons Learned and Knowledge Exchange
the concept :-
many operators and contactors are preparing for their first decommissioningprogramme, and expressing a willingness to work together :-
opportunities to learn from previous projects and share experience
adopt models, templates and guidelines already proven
develop a system for knowledge capture and transfer
promote awareness and use of knowledge transfer possibilities
Lessons Learned & Knowledge Exchange
potential benefits :-
avoid duplication
reduce risks
drive efficiency
reduce costs (to private and public sectors)
promote DNS members North Sea industry expertise to global markets
become recognised as centre of excellence for deeper water decommissioning
2) Streamlined EIA Template
• Following on from the successful Streamlined Template for Decommissioning Programmes initiative, DNS met with DECC’s Environmental Team.
• We discussed the potential for a collaborative project to create a template for DECC, Operators and Environmental contractors to use when writing/assessing an EIA.
• DECC were very supportive and cited the following anticipated benefits:
Reduced time to create the Environmental Impact Assessment document
The appropriate level of detail would be easily understood
Unnecessary information would be avoided
Fewer rewrites would be required
Assessment and ratification by DECC would be much faster
Decommissioning Planning Roadmap?
What is a decommissioning planning roadmap and why might we want or need one?
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Decommissioning Planning Roadmap?
What is a decommissioning planning roadmap and why might we want or need one?
There is a transition period from facilities operations to decommissioning that happens over a period of time
Each asset is unique but the same topics needs to be considered
There is no documented toolbox for doing this
Decommissioning is different!
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Decommissioning Planning Roadmap?
What is a decommissioning planning roadmap and why might we want or need one?
There is a transition period from facilities operations to decommissioning that happens over a period of time
Each asset is unique but the same topics needs to be considered
There is no documented toolbox for doing this
Decommissioning is different!
As a learned member of DECC once said
Different isn’t always better, but
Better is always different
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Traditional Project Phases
The Boss calls…. “Better start thinking about decommissioning”
Where are you?
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Traditional Project Phases
The Boss calls…. “Better start thinking about decommissioning”
Where are you?
Perhaps you are in ‘Appraise’
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Traditional Project Phases
The Boss calls…. “Better start thinking about decommissioning”
Where are you?
Perhaps you are in ‘Appraise’
Perhaps you left it a bit late and went straight to ‘Select’
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Traditional Project Phases
The Boss calls…. “Better start thinking about decommissioning”
Where are you?
Perhaps you are in ‘Appraise’
Perhaps you left it a bit late and went straight to ‘Select’
The time will come to go through a stage gate…. Are you ready?
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Traditional Project Phases
The traditional stage gate process ‘requires’ a specified level of maturity for all aspects of the project, e.g.:
Scope
Schedule
Cost
Quality
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Traditional Project Phases
The traditional stage gate process ‘requires’ a specified level of maturity for all aspects of the project, e.g.:
Scope
Schedule
Cost
Quality
Are you ready for Well P&A? Yes, ready to go
Are you ready for Facilities Removal? No, still working on that one
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Managing Decommissioning Projects – The Process
We, and several of our peers, have found that Decommissioning is different from the capital investment project processes
Yet we attempt to fit this square peg into the round hole of traditional “tried and trusted” procedures and process
Result:
Exclusions
Exceptions
‘Apparent’ non-conformance
Perhaps “fit-for-purpose” means not blindly adhering to existing standards and procedures
There may be a better mouse trap out there
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Managing Decommissioning Projects – The Process
We now believe that decommissioning projects need to be managed differently from traditional capital investment projects
The traditional stage gate approach for projects of Appraise, Select, Define and Execute does not adequately address the unique features of decommissioning
We are now of the view that the decommissioning, or retiring, of an asset is a new phase in the asset life cycle, rather than a new project
This distinction, while seemingly small, has enabled us to look at things quite differently and we believe it will help us better plan, communicate, prepare for and manage the effort
It is an overlapping, staged phase
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The Retire Phase - Overview
Recognises the transition from:
Operate, to
Late Life Asset Management, to
Decommissioning
Illustrates that not all elements mature at the same time or pace
Some are complete prior to CoP
Some occur years after CoP
Accommodates multiple, targeted assessments of readiness
Enhances decision making quality
Increases awareness of decommissioning as a part of asset life cycle
In design, construct and operate, as well as in retire
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RetireRetire
The Retire Phase - Toolbox
There is no standard toolbox today, however there is much consistency in:
The topics people feel need to be addressed
The timing at which these should be considered
What are key enablers for decommissioning to be successful
We believe they can be aggregated within a tool box that will assist in any decommissioning project, of any size, and any complexity
Same process, but perhaps quicker, perhaps easier
This toolbox is designed to help people get started down the road of a successful decommissioning project by ensuring
They start soon enough
They consider the correct things first
They fully understand the scope of the project and the impact of decision making
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Key components of the toolbox
1. A high level schedule from 10 years prior to CoP to 10 years post CoP
Not all projects will require this full period, but many complex ones will
2. A Strategy Matrix for the Retire Phase
Covering scope, control, contracting and technology
3. A Decision Road Map
Indicating key decisions that need to be made, when in relation to each other, by whom
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High Level Schedule (Zoom View)
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Looks at:
Pre CoP decisions that are primarily (but not exclusively) ‘Strategic’
Post CoP decisions that are primarily (but not exclusively) ‘Tactical’
Result is a timeline that best supports the Retire phase goals
Retire Phase Strategy Matrix (Zoom View)
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Looks at:
Project execution options
Scope
Control
Contracting
Technical
Project drivers
Result is a strategy that best supports the Retire phase goals
Decision Roadmap (Zoom View)
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Graphical representation is supported by a Decision Log for each decision:-
Description of decision
Timing
Decision making requirements
Alternatives
Outcomes
Decision maker
Assurance
Dependencies
Risks
Recommendations
Actions / Status
Conclusion
Planning for decommissioning is critical for success
It is difficult to start this too early, but
It is tempting to start it too late
Every project is unique, but
Every project faces the same challenges
A roadmap and toolbox to help us plan for decommissioning would help us
Map out the journey before we start
Know where we are going
Have enough supplies to get us through
Identify the tools we need to maintain and, if necessary, repair things
Arrive safely without incident
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Where have we been? Where are we going?
Small pilot group established (facilitated by Decom North Sea)
BP
Marathon
Shell
TAQA
Three workshops held to date
Consensus reached both on the merit and format of the roadmap
Further workshops proposed to consider the detail
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Aker Solutions
Amec
Wood Group PSN
Early Contractor Engagement
Current Procurement Model
Tender
Define Need
Award
Evaluate
Delivers
• Commodity Pricing
But does not encourage
• Technical Development
• Engagement in Solution Development
• Continuous Improvement
• Alignment with Operator Goal
Early Contractor Engagement
Define
Need
Execute
A B C
Contractors
Select
Inform
A B C
Contractors
Define
Need
Select
Develop
Capability
Execute
Inform
Could we deliver better results by
doing it differently?
Early Contractor Engagement
Project Scope
Develop and Describe one or more Models to deliver:
• Contractor Contribution to Solutions
• Enhanced Technology Development
• Incentivisation
• Alignment with Overall Cost Reduction
Addressing
• Pro’s and Con’s of each Model
• Procurement Governance
• Unrestricted Access to all Technologies
• Potential Evolution of Relationships and Capabilities
Multi-party approach to Wells P&A
Introduction
Buzzword – collaboration
But collaborate on what?
Supply chain needs a tangible workload
What could that be?
We have existing model for multi-operator suspended E&A well removal
Could we try to create something for live subsea wells?
Multi-party approach to Wells P&A
Background
Appears to be an increased focus from DECC
Perception simpler wells have been removed
Requirement to tackle more complex wells going forward
Recognition between operators and 3rd parties that a tangible workload needs to be identified
Multi-party approach to Wells P&A
Objective of Initiative
Investigate whether multi-party well P&A campaigns can offer a win-win
What could win-win look like?
Operator – Address DECC expectation, reputation mgmt, efficient removal of a problem
3rd party – creation of sustainable market, leading to investment, for capability, R&D, tooling etc
The more we do, the better we become, increase innovation, drive down cost, increase revenue for 3rd parties
Multi-party approach to Wells P&A
Outline of Initiative
Short term – build value proposition
IS THERE INTEREST?
Medium term – develop a pilot
NEED OPERATOR COMMITMENT
Long term – Feedback on pilot
BASIS FOR A LONG TERM WORK?
Overview
The problem we are trying to solve:
People do not seem motivated to join the decommissioning industry
Decommissioning is lacking in innovation and cost effectiveness
To design and implement meaningful improvements, the industry needs to attract and retain good people
The demographics of the current decommissioning workforce is biased towards the very experienced
– Nearing retirement
– More established in their ways
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Contributing Perceptions
Decommissioning is not seen as adding value
However, a dollar saved is the same as a dollar earned
Decommissioning is seen as a necessary evil
Decommissioning is a natural part of an asset’s life cycle
Decommissioning, if planned properly, can influence every preceding phase of the asset life cycle, including design
Decommissioning is seen as simply scrapping steel
Decommissioning is immature, with limitless opportunities for innovation
Decommissioning has huge technical and commercial challenges
Decommissioning is seen as dirty
Decommissioning is about improving the environment
Decommissioning is about doing the right thing
46Marathon Oil Decommissioning Services LLC
The Realities
It is about collaboration more than competition
With peers, contractors and regulators
It is about innovation more than standard application
New technologies
New applications of existing technologies
It is about increased and accelerated individual responsibility
Small multi-disciplinary teams
A challenging mind is more important than an experienced mind
It is about extending the life of the North Sea, not terminating it
The lower the decommissioning cost, the longer the producing life
It is about establishing a career, not just doing a job
47Marathon Oil Decommissioning Services LLC
What do we need to do
We need to increase awareness; more so than provide training
We need a formal marketing plan
We need to generate excitement and enthusiasm
Communicate the positives
Create tangible and visible improvements
Stop focusing on the negative
We need to cast the web wider than oil and gas development engineers
Different industries
Different professions
Different age groups
We need to communicate beyond our industry
We have a history of being suspicious and secretive
We need to be more open and share our successes48Marathon Oil Decommissioning Services LLC