Oil and gas companies team up to create UKCS decommissioning company

Umar Ali 16 May 2019 (Last Updated September 22nd, 2020 08:02)

Three offshore contractors have launched a company aimed at providing decommissioning solutions for offshore oil and gas assets in the UK Continental Shelf (UKCS).

Oil and gas companies team up to create UKCS decommissioning company
Fairfield Decom is a company aimed at delivering decommissioning solutions in the UKCS. Credit: Berardo62.

Three offshore contractors have launched a company aimed at providing decommissioning solutions for offshore oil and gas assets in the UK Continental Shelf (UKCS).

The new Aberdeen-based company, Fairfield Decom, combines Decom Energy’s experience as a decommissioning operator in the North Sea with Heerema and AF Offshore Decom’s expertise as decommissioning contractors.

Fairfield Decom managing director Graeme Fergusson said: “We have built a strong business relationship with Heerema and AF Offshore Decom as contracting partners in the Dunlin topsides removal and as alliance partners for integrated decommissioning business opportunities.

“The three companies have unrivalled experience in decommissioning and there is great alignment in terms of our responsible approach to business and our core values.

“Our operator background means that we understand what the E&P community wants – an integrated solution that is technically robust, commercially creative and that will deliver a safe, cost-effective and environmentally-sound solution.”

Fairfield Decom offers what it calls “next generation decommissioning”, providing a decommissioning business model aimed at delivering cost-effectiveness and operational efficiency in line with the 35% cost reduction target set by the Oil and Gas Authority (OGA).

The new business model is designed to reduce the complexity of the decommissioning process, providing clients with the expertise and assets of the three partner companies with the intention of creating a more sustainable and innovative offshore decommissioning industry.

Fairfield Decom plans to support its business through local talent and supply chains in Scotland and intends to establish a thriving decommissioning hub in Scotland. According to the company, the development of this hub could provide access to a global decommissioning market worth more than $80bn over the next ten years.

Heerema CEO Koos-Jan van Brouwershaven said: “Heerema is proud to be part of this unique new venture. Three leaders in the global decommissioning market have joined forces, providing a smarter, cost-effective and more sustainable approach to decommissioning and recycling offshore structures.

“As an experienced offshore contractor, Heerema is continuously seeking opportunities to further strengthen our position in the international offshore market through innovation, pro-activity and reliability. Fairfield Decom is a great example of how we are achieving those ambitions.”

Bengt Hildisch, AF Offshore Decom managing director said: “AF Offshore Decom is very pleased to collaborate with partners who are aligned with our goals. The establishment of Fairfield Decom represents an important step change in the decommissioning business model.

“It responds to the call from the UK Regulator, the Oil and Gas Authority, to create new business delivery models to reduce complexity to support the next generation of decommissioning.”