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Bringing Things Together St. Andrews Offshore Decommissioning Conference 2016 November 2016 Jim Christie Head of Decommissioning Image courtesy of CNRI

Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

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Page 1: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Bringing Things Together St. Andrews

Offshore Decommissioning Conference 2016

November 2016

Jim Christie – Head of Decommissioning

Image courtesy of CNRI

Page 2: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

What am I?

• I have been around for centuries

• I come in different shapes and sizes

• I help people connect

• I save time

• I bring things together

2 Decommissioning – Bringing things together

Page 3: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Three centuries of bringing things together

Image Courtesy of Transport Scotland

3 Decommissioning – Bringing things together

Page 4: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

The OGA is like a bridge

• We have a wide span of responsibility

• We have a foot in both sides of a discussion

• We bring people together

• We help improve the journey

• We get you there quicker

• We are not always toll free!

4 Decommissioning – Bringing things together

Page 5: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Good things come in threes

• Hear no evil

• Speak no evil

• See no evil

5 Decommissioning – Bringing things together

Page 6: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Good things come in threes

• Snap, Crackle and Pop

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Page 7: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Good things come in threes

• The Hanson Brothers

7 Decommissioning – Bringing things together

Page 8: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

The Tripartite

Government

• Long standing

• Robust

• Globally recognised

UKCS Industry

• Been around decades

• Story of success

• Changing The OGA

• New kid on the block

• Almost joined up

• Showing promise?

8 Decommissioning – Bringing things together

Page 9: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

The OGA approach

• Collaborative focus

• Problem solving

• Regulatory powers

9 Decommissioning – Bringing things together

Page 10: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Decommissioning Strategy

Cost Reduction

Delivery Capability

Regulatory Guidance

10 Decommissioning Status and Overview

Page 11: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Achieved in 2016 • OGA Team is in place

• MER UK Decommissioning Board

• Issued Strategy

• Issued Delivery Programme

• Working the strategic themes

• Decommissioning Expectations have been published

• Operator engagements have commenced

• Still to deliver this year

• Basis of Cost Estimate tool

• UKCS Cost Estimate Range

11 Decommissioning – Bringing things together

Page 12: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

MER UK Behaviours are being seen • Industry operators and service providers are tangibly beginning to collaborate

• Reversal of cost out turn increases are being seen on current projects

• The benefits of joint working are being demonstrated

• We are coming together, but there is still some way to go!

12 Decommissioning – Bringing things together

Page 13: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Plan for 2017

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Cost Reduction

Delivery Capability

Regulatory Guidance

Page 14: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Plan for 2017

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Cost Reduction

Delivery Capability

Regulatory Guidance

What do we need to do?

• What scope is needed to be compliant?

• What do we not need to do?

• What can we do differently?

Page 15: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Plan for 2017

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Cost Reduction

Delivery Capability How do we

best do it?

• How have others done this?

• How do we organise ourselves?

• How do we contract?

Page 16: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Plan for 2017

16 Decommissioning – Bringing things together

How much can we reduce the

cost?

How do we best do it?

Projects

What do we need to do?

Page 17: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

Projects

• Decommissioning board members will identify focus areas

• We currently have three

• Focus area teams will identify projects within each area

• One for each theme has been identified for 2016

• Other potentials identified for 2017

• Projects will be formally managed with an execution plan, resources,

schedules and deliverables

• Monthly updates to the board who will provide an assurance role

• New projects will be identified as time progresses and priorities change

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Page 18: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

We have the power to listen

• Several common themes arise at meetings and conferences

• These could potentially become 2017 projects

• They include:

• Residual and long term liability management

• Optimising subsea scope to achieve compliance, safety, HSE and cost

• Dismantling capability in the UK

• Creating the UK decommissioning factory

• Effective cost benchmarking

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Page 19: Bringing Things Together - Offshore Decommissioning …€¦ · •Issued Strategy •Issued Delivery Programme •Working the strategic themes • Decommissioning Expectations have

In summation

• 2016 has been a year of forming and storming

• Changes are beginning to be seen in the industry from all sectors

• 2017 is going to be a year of performing and delivering

• A year of bringing things together

• Thanks for listening and enjoy the conference

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