Ultra-deep water port: feasibility study

Report compiled by Ernst & Young following their feasibility study looking at the most cost effective locations for an ultra-deep water port in the UK.


Footnotes

1. There is no single definition of what constitutes an UDW port. For the purposes of this study, it is considered to be a port which will allow ultra-heavy lift vessels to transfer modules direct from the vessel deck to the quay. In order to do this, a port needs to have 24m of water depth at the quayside and 14m depth on approach. There is also a requirement to have sufficient load bearing capacity and laydown areas at the port.

2. Assuming 40% as the appropriate tax rate used for the purposes of this analysis.

3. OSPAR - Inventory of Offshore Installations

4. OGA: UKCS Decommissioning 2017 Cost Estimate Report

5. This is the decommissioning cost estimate included in the OGA's 2017 cost estimate report. As the industry progresses there will be updated cost estimated. At the time of concluding this report EY is aware of revised OGA cost estimates which reduce the overall estimated decommissioning costs due to efficiencies in well plugging and abandonment.

6. Floating structures can be towed to shore for decommissioning

7. Source: https://www.gov.uk/guidance/oil-and-gas-decommissioning-of-offshore-installations-and-pipelines,
https://www.ogauthority.co.uk/data-centre/data-downloads-and-publications/infrastructure/

8. Information provided in confidence

9. OSPAR 98/3, Paragraph 2

10. http://www.bbc.co.uk/news/uk-scotland-scotland-business-38720211,
http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-42624580
,
http://www.abpmer.co.uk/buzz/decommissioning-of-oil-and-gas-structures-call-for-review/

11. http://www.bbc.co.uk/news/uk-scotland-scotland-business-38720211,
http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-42624580
,
https://www.bbc.co.uk/news/uk-scotland-scotland-business-39528090

12. Carbon Trust (2015), Floating Offshore Wind: Market and Technology Review
https://www.carbontrust.com/resources/reports/technology/floating-offshore-wind-market-technology-review/

13. Carbon Trust (2015), Floating Offshore Wind: Market and Technology Review
https://www.carbontrust.com/resources/reports/technology/floating-offshore-wind-market-technology-review/

14. http://www.hie.co.uk/growth-sectors/energy/n-rip.html

15. Carbon Trust (2017), Floating Wind Joint Industry Project: Policy & Regulation Appraisal

16. Sourced from information provided by OGA

17. Prices from: https://www.letsrecycle.com/

18. The prices used are EY assumptions based on the range prices viewed. For the avoidance of doubt, they do not represent an average of prices over the reviewed period.

19. EY has performed a high level review which maps the distances between platform locations per their coordinates detailed on the OSPAR website to ports. This has not used a sophisticated vessel mapping system and therefore actual distances between locations may vary from those used in our analysis.

20. The total deck load capacity of the Thialf is 12,000 tonnes. 8,000 tonnes per trip is used as a high level assumption that UHLVs will attempt to load their decks to maximum capacity, but be restricted by deck space.

21. The Saipem website details the Saipem 7000 vessel has a transit speed of 9.5 knots. New OOS International vessels expected in the market in 2019 advertise transit speeds of 11 knots. We have been unable to verify if these vessels can achieve these transit speeds when loaded with modules.

22. An assumption we are aware was applied in a previous commercial assessment of developing a UK based UDW port.

23. This is a general assumption made at this stage as in reality, sub-debt/equity may still be required to attract debt lenders.

24. Based on information contained within OSPAR list of offshore inventory, filtered to remove platforms which have already been removed to shore.

25. OGA: UKCS Decommissioning 2017 Cost Estimate Report

26. http://decomnorthsea.com/news/the-miller-decommissioning-project

27. https://www.reuters.com/article/us-oil-gas-decommissioning/switzerlands-allseas-plans-worlds-largest-construction-vessel-idUSKBN1FR26O

28. https://www.offshoreenergytoday.com/shandong-places-order-for-three-decommissioning-vessels/

29. https://worldmaritimenews.com/archives/133800/twin-marine-heavylift-teams-up-with-shandong-shipping/

30. https://hmc.heerema.com/fleet/sleipnir/

31. https://www.offshore-mag.com/articles/print/volume-77/issue-4/engineering-construction-installation/sleipnir-raising-the-bar-for-offshore-platform-lifts.html

32. https://hmc.heerema.com/news-media/news/heerema-awarded-first-contracts-for-its-new-crane-vessel-sleipnir/

33. https://www.maritime-executive.com/article/design-of-worlds-largest-crane-vessel-underway#gs.mmbG57E

34. https://www.theguardian.com/environment/2018/feb/06/uk-built-half-of-europes-offshore-wind-power-in-2017

35. Carbon Trust (2018), Floating Wind Joint Industry Project - Phase 1 Summary Report

36. Carbon Trust (2018), Floating Wind Joint Industry Project - Phase 1 Summary Report

37. Carbon Trust (2018), Floating Wind Joint Industry Project - Phase 1 Summary Report

38. Marine Scotland (2014), Deep Water Floating Wind Technologies - Draft Regional Locational Guidance
http://www.gov.scot/Topics/marine/marineenergy/Planning/DRLG

39. https://www.equinor.com/en/what-we-do/hywind-where-the-wind-takes-us.html

40. https://www.4coffshore.com/windfarms/windfarms.aspx?windfarmId=UK2H

41. Carbon Trust (2015), Floating Offshore Wind: Market and Technology Review
https://www.carbontrust.com/resources/reports/technology/floating-offshore-wind-market-technology-review/

42. https://www.equinor.com/en/what-we-do/hywind-where-the-wind-takes-us.html

43. https://www.equinor.com/en/what-we-do/hywind-where-the-wind-takes-us.html

44. https://www.equinor.com/en/news/hywindscotland.html

45. Carbon Trust (2018), Floating Wind Joint Industry Project - Phase 1 Summary Report

46. http://www.hie.co.uk/growth-sectors/energy/n-rip.html

47. Carbon Trust (2017), Floating Wind Joint Industry Project: Policy & Regulation Appraisal

Contact

Email: Claire Stanley

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