Opportunity North East and Scottish Enterprise Decommissioning Opportunity

Seabed debris clearance

Introduction

Opportunity North East (ONE) and Scottish Enterprise (SE) have jointly developed a programme to assist the oil and gas supply chain maximise emerging opportunities in offshore decommissioning. The programme has identified several decommissioning project opportunitieswitha range of oil and gas operators. Supply chain companies across Scotland are invited to propose innovative and creative solutions in response to these project challenges to improve efficiency andreduce cost and safety risk in an environmentally responsible manner.

Following the principles of the UK Government’s Maximising Economic Recovery Strategy (MER UK)[1], there is a need to significantly reduce decommissioning costs through increased efficiency and through industry transformation. Estimates of scope, complexity and cost vary, with over 250 fixed installations, over 250 subsea production systems, over 3,000 pipelines and approximately 3,650 wells requiring decommissioning[2].

A strong UK offshore decommissioning sector is pivotal to delivering MER UK and offers growth potential for small and medium sized enterprises (SMEs)[3]. Anchoring high-value supply chain businesses long-term is a regional and national priority.

Overall, decommissioning presents significant opportunities for innovation, cost reduction and development of skills and capability with a major opportunity for North East and Scottish supply chain companies to position themselves to bid for and secure decommissioning work in the UK and internationally. The Scottish Enterprise Oil Gas Decommissioning Action Plan[4]describes the potential of the market.

The Opportunity - Seabed debris clearance

ONE and SE are seeking propositions from companies with business and technical solutions applicable to seabed debris clearance on behalf of operator sponsors, ConocoPhillips and Shell. The aim is to identify more efficient ways to remove debris with a focus on reducing cost and safety risk in an environmentally responsible manner.

Submitted propositions will be received and reviewed in confidence against key criteria by a panel with successful applicants going on to pitch their solutions to the operator sponsors. Support will be provided to selected organisations throughout the process, includingone-to-one support to build the business case, develop the operator pitch and provide targeted business support.

The programme seeks to give successful applicants a range of benefits includingaccess to and feedback from end-user operators, improved understanding of operator needs, improved business cases and business development support. Operator sponsors will gain access to targeted solutions focused on their operational challenges and potentially pursue further dialogue with selected applicants.

Scope

To decommission an offshore facility, licensees have an obligation to remove subsea debris[5], typically this would be the removal of significant objects e.g. scaffold poles, steel walkway and handrail sections, etc. within a radius of 500 metres from a platform and within pipeline corridors. This has typically been guided by site survey and engagement with sea users to define the debris clearance scope. The seabed state is independently verified by fishing over-trawl trials before issuing a clearance certificate.

For this project, debris will be defined as “significant seabed deposits left by the activities of oil and gas production; individual debris items typically sized for recovery by ROV or diver”. Note that this project excludes removal of subsea production infrastructure (including mattresses and grout bags) and the removal of hazardous waste material.

This scope relates to UK continental shelf production facilities with the assumption that most of these facilities will require some debris clearance. Opportunities exist for innovative debris clearance proposals, with requirements varying to reflect the local conditions, covering a range of users of the sea, water depths,etc.

What we are looking for

On behalf of the operator sponsors, the object of the programme is to seek innovative propositions, on an individual or collaborative basis, using economies of scale, applied technicalor commercial approachesto more efficiently address the seabed debris scope and reduce overall cost. These may include:

  • Align or combine the over trawl and / or the survey process;
  • Combine platform and marine based removal solutions;
  • Look to other marine industries for transferable solutions;
  • Models that have an element of flexible timing and a different post hydrocarbon risk profile;
  • Multi-facility collaborative projects with an element of timing flexibility; or
  • Innovative and improved methods to find and recover seabed debris.

Some propositions may highlight an intent to find partner(s) to provide a complete solution. This dialogue will be encouraged and, if required, facilitated by ONE to create those alliances.

Solutions proposing innovative methods but with restrictions on load capacity for typical debris found should consider highlighting, in outline, options to complete the total scope with other equipment or partners, for example.

Proposition review

Submitted propositions will be evaluated by a selection panel against the criteria contained within the questions detailed in the seabed debris clearance application form. Selected successfulpropositions will receive support to help align the proposition with the operator sponsors’ challenges before the operator pitch session.

Who can apply

Applicants from all industries, across Scotland are welcome. Entrants do not require to be currently engaged in the decommissioning sector, nor the oil and gas industry.

Further information can be found in the proposition submission formon page 4.

How to apply

Interested companies can apply via the proposition submission form on page 4.The deadline for applications is 17:00 BST, 9 May 2018. A confirmation email will confirm submission receipt.

Any questions or requests for clarifications should be sent to by 17:00 BST, 1 May 2018. A response to questions will be emailed to the recipient within three working days.

All information provided will be treated in confidence and used exclusively for assessing the proposal.

Key dates

  • 16 April 2018 – Application process for seabed debris clearance opportunity open
  • 1 May 2018, 17:00 BST - Deadline for any clarifications related to the proposition request
  • 4 May 2018 - Answers to clarifications issued by ONE
  • 9May 2018, 17:00 BST - Deadline for submissions of proposition
  • w/c 14 May 2018 - Selected organisations for the operator pitch will be announced. Selected organisations will be supported with their pitch preparation if required.
  • 13 June 2018 - Operator Pitch
  • w/c 25 June- Operator feedback issued to companies

More information

Please contact if youhave any questions.

Opportunity North East and Scottish Enterprise

Decommissioning Business Proposition Submission

Seabed debris clearance

GENERAL DETAILS
Application Title / Click or tap here to enter text. /
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Company / Click or tap here to enter text. /
Address / Click or tap here to enter text. /
Postcode / Click or tap here to enter text. /
Telephone / Click or tap here to enter text. /
Email / Click or tap here to enter text. /
Date / Click or tap here to enter text. /

Note: Please try to address all sections.

The Proposed Proposition
Value Proposition and impact
Provide a description of the value proposition and the impact it will bring to the challenge in the UKCS and globally. Address the specific challenge providing an overview of the technical solution, service, commercial offering etc. (up to 500 words)
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Maturity
Have you applied this type of proposition elsewhere or similar applications; address what are the key differences. (up to 250 words)
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Commercialisation
If the solution requires development to commercialise into the market place, highlight the costs and delivery period. Note: Proposition mustbe based on existing technology. (up to 250 words).
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Gaps
Identify gaps that may be in the proposition and where assistance may be required i.e. in the solution itself or in the application of that solution. Highlight the need for match-making with other companies to provide a complete offering and therefore track record of working collaboratively. (up to 250 words).
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Eligibility
Advise the location where the proposition will be managed and delivered from. If not from Scotland, advise if the intention is to develop a location in Scotland, outlining the intended size, location and services.
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COMPANY
Company General Market Offering
Describe the company general offering and its background. (up to 250 words).
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Company Strengths
What are the key strengths of the company. (up to 250 words).
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Company size and business trends
What is the size of the company (in terms of annual turnover and employee number) and trend over the last 7 years and is it part of a larger organisation, please specify. (up to 250 words).
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Business Support
Are you receiving business support or funding from other public authorities such as Scottish Enterprise and if so please provide details and point of contact.
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Please submit completed applications to The deadline for applications is 17:00 BST, 9 May 2018. An email will confirm submission receipt.

1

[1] Maximising Economic Recovery Strategy for the UK

[2] Oil & Gas Authority Decommissioning Strategy

[3] An SME is defined as an enterprise with less than 250 staff and turnover in the region of £10-50 million

[4]Scottish Enterprise Oil Gas Decommissioning Action Plan

[5] Department for Business, Energy & Industrial Strategy Guidance Notes – Decommissioning of offshore oil and gas installations and pipelines