The report, which has been prepared for Decom North Sea and Scottish Enterprise, estimates that approximately £30bn will be invested in the UK Continental Shelf (UKSC) on decommissioning North Sea oil and gas projects by 2040.
The report highlights several key areas which include talent attraction, innovation and contracting/procurement strategies for industry to consider in order to capitalize on the significant opportunity.
Scottish Enterprise oil and gas international sector head David Rennie said: "Decommissioning is highlighted as a key opportunity for the supply chain in Scotland’s oil & gas strategy."
Decom North Sea chief executive Nigel Jenkins: "A principal role of Decom North Sea is to facilitate supply chain collaboration to reduce the cost of decommissioning."
Arup Scottish Energy Consulting lead Clare Lavelle said: "The decommissioning market will require upwards of £30bn of expenditure before 2040 in the UKCS.
"To take full advantage of this opportunity, the industry must build on its existing capacity and capability to service the complex and demanding nature of decommissioning work in the North Sea."
The report focuses on supply chain key areas where there may be significant resource constraints, which include rigs/rigless abandonment resources, removal vessels for topsides and substructure, ports/harbours/yards for recycling as well as skilled engineering and operational resources serving all aspects of the sector.
Additionally, the report highlights the need to focus on long-term experience within the industry as well as to include new supply chain entrants who provide innovative methods, reduce costs, and broaden the supply chain market.
Image: Decommissioning of oil and gas projects in UKCS could be worth £30bn by 2040. Photo: courtesy of num_skyman/Freedigitalphotos..
