time to think different time to act different
TRANSCRIPT
Time to Think DifferentTime to Act Different
Greater Dunlin Area decommissioning and beyond
Greater Dunlin AreaA Brief History
• 195km NE of Lerwick, Shetland
• 4 fields
• Concrete Gravity Based platform in 150m water
• CGBS weight ~ 320,000 tonnes
• Topsides weight ~ 20,000 tonnes
• 45 platform and 16 subsea wells
• First oil 1978
1978 – What was going on?!
Dunlin Area – Life of Field ProductionA Long and Productive Operating Life Producing 522 mmboe over 37 Years
Fairfield & MCX take ownership
The Dunlin Alpha Platform
2100 x
Dunlin AlphaConcrete Base Footprint
Dunlin Area – Field Layout
Osprey
DunlinMerlin
Dunlin Decommissioning Project
Decommissioning Programme
• 4 decommissioning programmes approved & closed out with 1 pending (derogation case)
Plug & Abandonment
• Subsea wells – 16 fully plugged and abandoned
• Platform wells – 45 wells Phase 2 completed and 28 wells phase 3 completed to date
Subsea
• Recovered 13.6km of flexible WI pipelines, 3.5km of rigid pipelines, 6.9km umbilcals and cables
• Recovered 4 manifolds, 3 riser protection structures, 2 dummy wellhead and guide bases
• Recovered 4 bundle towheads and 1 intermediate towhead
• Disconnected 5 subsea spools on pipelines and removed to shore for recycling
• Recovered 580 concrete mattresses & 13,000 grout bags for recycling onshore
Topsides
• Preparations ongoing for removal of 20,000t topsides on reverse installation basis
Wells DecommissioningCase Study
Programme comprises the P&A of 45 platform wells and 16 subsea
wells.
• Age and complexity of wells, Fairfield faced a number of issues:
o Condition of completions on some platform wells
o Legacy subsea equipment was designed for diver intervention
o Programme crossing multiple winter seasons
• Fairfield took a collaborative “one team” approach and actively encouraged
everyone to produce innovative ideas and challenge conventional thinking
• Application of new technology where it gave real advantage e.g. reduced
milling operations through the use of cut and pull decreased well
abandonment time and development of ROV tooling eliminated need for diver
intervention
• Real time application of lessons learned from one well to the next enabled
continuous improvement
• Subsea work completed with an average cost per well below the OGA P10
and with exemplary HSE performance (no LTI’s)
Dunlin A - Platform Wells
• 45 platform wells and 3
Caissons in 48 Slots
• Includes >100 wellbores
Osprey - Subsea Wells
• 8 production wells
• 4 water injection wells
• 7km NNW of Dunlin
Merlin - Subsea Wells
• 3 production wells
• 1 water injection well
• 7km NW of Dunlin
Subsea Interface
• 3 different wellhead and
Xmas tree combinations
between16 wells
A crucial part of a multi-year decommissioning programme has involved the pulling of the installation’s 48 well conductors.(2018 – 2021)
• Due to age and condition many of the conductors had been supported over the years by temporary braces, clamps and sleeves (appurtenances)
• Removal of the conductors was more complicated as there was insufficient clearance for various appurtenances to pass through the modular support frame
• A collaborative and innovative solution was required from across our supply chain partners
• 7 possible options developed but decided on a hybrid solution which enabled Fairfield to be operational in just 9 months
• Adoption of new technology enabled platform well P&A and conductor removal scopes to run in parallel
• Removal of the clamps and braces was done whilst working on an underdeck
platform which can only be done during moderate weather conditions
Conductor RemovalCase Study
Some Context
£15.1bn decom
expenditure in UKCS alone over next 10
years
Well decom. accounts for
49% of
expenditure
658,000tTopsides to be
removed
Is decom an attractive market?
Treat as a liability or a core business?
How does the Energy Transition fit in?
Estimated Global Decommissioning Spend Over Next Decade
Source: Wood MacKenzie Lens, December 2020 Source: OGUK Decommissioning Insight 2020
Cost Reduction or Value Creation?
£39bn 2022 Target
£27bn £15bn £6bn £4bn
~£9-18bn ~£2-5bn ~£2-3bn ~£1-2bn
Well P&A 46%
Removals 26%
Subsea Infra.10%
Post CoPRunning
Cost7%
Reduce by Reduce by Reduce by Reduce by
(35-65%) (15-30%) (30-50%) (20-40%)
17% 21% 29% 12%Achieved to date
£59.7bn 2016 baseline
Source: OGA Decommissioning Estimate 2020
35%
Build
Own
Operate
E&P Company
DecommissionDecommissionDecom Operator
LiabilityBusiness
The Right Assets in the Right Hands
• Operators currently weigh up 3 key factors when assessing COP decisions and may have a natural E&P production bias
• In an Energy Transition world, environmental factors should also be considered
Inherent production bias and drive to meet MER
Indirect costs often overlooked
Based on historic estimates and conventional models
Add emission intensity as a 4th
decision driver
The Decom Trilemma
0
10
20
1997 2001 2005 2009 2013
CO2 Emission per barrel(kg CO2/barrel)
Example – Draugen Source: Rystad Energy
Solving the COP
Conundrum
Revisit COP decision making process
Rising to the ChallengeTime to Think and Act Different
We create value by managing, integrating and executing ultra-late life operations and decommissioning.
This is what we call…
Next Generation Decommissioning
Our Heritage
A uniquely powerful
combination of three
leaders in offshore
decommissioning
Fairfield Decom is the first and only Decom Operator in the North Sea.
With a unique, core focus on next generation decommissioning, we use
our combined capabilities to manage, integrate and execute the entire
scope of ultra-late life operations, creating value, enabling MER and
allowing operators to focus on E&P activities.
Our Corporate Culture
We are proud of our diverse heritage. Embracing and harnessing
the power of our differences we have aligned our vision, mission and
values to become a thought-leader on energy transition and to create
the perfect platform for collaboration.
Everything we do is
underpinned by a
shared vision and
set of values
Our vision is to be the innovative and
sustainable solution for the offshore
decommissioning industry.
Our mission is to manage and execute
the entire scope of late-life operations
and decommissioning – creating
efficiencies, managing risk, and enabling
Operators to concentrate their resources
on core E&P business activities.
We have developed a set of values that
ensures Fairfield Decom’s activities are
undertaken to the highest ethical
standards, with integrity, transparency
and honesty at the heart of the business.
VISION MISSION VALUES
INTEGRITY EXCELLENCE RESPONSIBILITY TEAMWORK COURAGE
Our sustainability framework is built upon the underlying
principles of the UN sustainability goals and the three pillars of
economy, society, and the environment otherwise referred to a
Profit, People, Planet
Our Sustainability Framework
Sustainability is an
integral part of our
everyday operations
We are a trusted, fair and
respectful employer, partner and
customer who wants to build a
sustainable business that will
positively impact our industry
and economy, leaving a positive
legacy for future generations.
Trusted, Fair
& Respectful
Mindful of the arena in which we
operate and the part we have to
play in the energy transition, we
constantly look for the most
efficient use and re-use of our
resources. We actively look to
reduce the energy intensity,
emissions and waste across our
business.
Climate & Energy
Transition
Health and safety is at the
forefront of very thing we
do. We strive to ensure healthy
lives, a safe work environment
and promote well-being for all.
Good Health
& Well-being
We harness the power of our
differences. We are open-
minded and strive to achieve the
right balance balance within our
business structure by embracing
our different cultures,
nationalities, ethnicities and
genders.
Equality &
Diversity
Excellence in Everything We Do
Decommissioning Programme (DP)
Preparation
Surveys & Studiesto support DP/ Scope/Method
Project MgmtCore Team
DP Management
Stakeholder Engagement
DP Reporting & Closeout
IM/IT & Support Services
JOA Mgmt
Regulator Liaison
Late Life Operations
Transition Management
Core Crew Deployment
Production Optimisation
Integrity Re-assessment
Decom Strategy
Power Systems
HSE Excellence
Workforce Engagement
Supply Chain Management
Commercial Operations
Decommissioning Project Management
Logistics, Aviation & Marine
Operations Team
Deck Crew
Licenses & Consents
Power Generation
Platform Services
Temporary Utilities
Integrity Mgmt, Inspection & Maintenance
Operations Specialist Services
Rig Upgrades
Well Inspection & Intervention Equip.
Surveys & Studies to support Well Programmes
Well Engineering & Project Mgmt.
Well Decommissioning
Drilling Units & Vessels
Operations Support
Specialist Services incl. wireline & coil tubing
Conductor Recovery
Cleaning & Recycling
Operations – Drain, Flush, Purge & Vent
Engineering Down –Physical Isolation
Engineering Down –Cleaning
Pipeline Cleaning & Pigging
Waste Mgmt.
Module, Process & Utilities Separation
Engineering Up – Temp. Utilities
Dropped Object Strategy
Waste Mgmt.
Structural Separation for Removal
Removal Preparation
Removal
Vessels
Sea-Fastenings & Transportation
Off-load and Load in
Waste Mgmt.
Preparation for Removal
Lifting & Removal
Vessels
Sea-Fastenings & Transportation
Off-load and Load in
Waste Mgmt.
Transfer Interface
Decontamination
Cleaning/Handling Hazardous Waste
Deconstruction
Reuse, Recycle & Disposal
Waste Mgmt. Accounting
Reporting
Studies to Support Subsea Programmes
Subsea Surveys
Subsea Project Mgmt.
Specialist Services
Subsea Decommissioning
Vessels
Seafastening & Transportation
Waste Mgmt. Accounting
Reporting
Renegotiable Pipeline Agreements
Cuttings Pile Management
Site Debris Clearance –
500m Zones
Pipeline Debris Clearance –
200m Corridors
Over-trawl Surveys
Legacy Monitoring Programme
Navigation Aids & Maintenance
Post COP Running Costs
Well Decommissioning
Facilities/Pipelines Permanent
Isolation/CleaningTopsides Preparation
Topsides Removal
Substructure Removal Onshore RecyclingSubsea Facilities & Pipeline Removal
Site Remediation & Post-Decom Monitoring
Thinking in Traditional Silos?
Decommissioning Programme (DP)
Preparation
Surveys & Studiesto support DP/ Scope/Method
Project MgmtCore Team
DP Management
Stakeholder Engagement
DP Reporting & Closeout
IM/IT & Support Services
JOA Mgmt
Regulator Liaison
Late Life Operations
Transition Management
Core Crew Deployment
Production Optimisation
Integrity Re-assessment
Decom Strategy
Power Systems
HSE Excellence
Workforce Engagement
Supply Chain Management
Commercial Operations
Decommissioning Project Management
Logistics, Aviation & Marine
Operations Team
Deck Crew
Licenses & Consents
Power Generation
Platform Services
Temporary Utilities
Integrity Mgmt, Inspection & Maintenance
Operations Specialist Services
Rig Upgrades
Well Inspection & Intervention Equip.
Surveys & Studies to support Well Programmes
Well Engineering & Project Mgmt.
Well Decommissioning
Drilling Units & Vessels
Operations Support
Specialist Services incl. wireline & coil tubing
Conductor Recovery
Cleaning & Recycling
Operations – Drain, Flush, Purge & Vent
Engineering Down –Physical Isolation
Engineering Down –Cleaning
Pipeline Cleaning & Pigging
Waste Mgmt.
Module, Process & Utilities Separation
Engineering Up – Temp. Utilities
Dropped Object Strategy
Waste Mgmt.
Structural Separation for Removal
Removal Preparation
Removal
Vessels
Sea-Fastenings & Transportation
Off-load and Load in
Waste Mgmt.
Preparation for Removal
Lifting & Removal
Vessels
Sea-Fastenings & Transportation
Off-load and Load in
Waste Mgmt.
Transfer Interface
Decontamination
Cleaning/Handling Hazardous Waste
Deconstruction
Reuse, Recycle & Disposal
Waste Mgmt. Accounting
Reporting
Studies to Support Subsea Programmes
Subsea Surveys
Subsea Project Mgmt.
Specialist Services
Subsea Decommissioning
Vessels
Seafastening & Transportation
Waste Mgmt. Accounting
Reporting
Renegotiable Pipeline Agreements
Cuttings Pile Management
Site Debris Clearance –
500m Zones
Pipeline Debris Clearance –
200m Corridors
Over-trawl Surveys
Legacy Monitoring Programme
Navigation Aids & Maintenance
Post COP Running Costs
Well Decommissioning
Facilities/Pipelines Permanent
Isolation/CleaningTopsides Preparation
Topsides Removal
Substructure Removal Onshore RecyclingSubsea Facilities & Pipeline Removal
Site Remediation & Post-Decom Monitoring
Daring to Think Different
Bridging The Capabilities Gap
Contractor CapabilityUltra-Late Life and Decom Operator
Fairfield Decom occupies a unique position in the market as
“Decom Operator”
Developed in response to industry need for specialist decom
companies
Resolves traditional conflict between E&P and decom activities
The new entity has been welcomed and encouraged by the
OGA, OPRED & HSE
Removes requirement for Operators to build up in-house teams
Enables Operator in-house resources to focus on core
business activities
Decom Execution Capability
Independent E&P and
Late Life ProducersIOCs
Production Focused E&P Companies
Asset Ownership / Operator Capability
Fairfield Decom bridges the gap
– blending operator experience
with contractor expertise
Our Value Proposition
Looking To The Future
• North Sea is a mature basin with ageing assets
• Oil and gas industry must be mindful of the climate change agenda and industry perception
• Energy transition is a key industry focus
• OGUK Roadmap 2035 looks at reducing carbon emissions, but also developing people and skills, driving technology and innovation, and growing the economy and exports
• Decommissioning as an industry is inherently aligned with principles of energy transition and a net zero future
• Huge potential for transferring and developing people within an exciting industry that is set to grow exponentially over the next ten years in the UK alone
• Fairfield Decom is a disruptor and innovator that has created a first of kind Decom Operatorentity that is ideally positioned to benefit from first mover advantage and act as an exemplar in the North Sea and beyond
We’ve taken the time to Think Different, now it’s time for industry to Act Different