Oil and gas decommissioning
The Decommissioning Action Plan launched by Scottish Enterprise and Highlands and Islands Enterprise in 2016 sets out how we are making the most of decommissioning opportunities at home and abroad.
In February 2018, in partnership with Highlands and Islands Enterprise and Scottish Enterprise, we commissioned Westwood Energy Group to produce the Offshore Floating Asset Decommissioning Market Study which explores decommissioning opportunities in the oil and gas sector.
We are also providing funding and assistance to enhance the capability of the Scottish supply chain, with the aim of making Scotland a world leader in decommissioning.
Decommissioning Challenge Fund
The Decommissioning Challenge Fund (DCF) was announced by the First Minister on 8 February 2017 as a means of supporting:
- infrastructure upgrades and innovation in retrieval and transportation methods at ports and harbours
- supply chain projects to strengthen Scottish decommissioning capabilities and capacities
- projects to develop high quality and comprehensive investment-grade business proposals for decommissioning
- engineering scoping work at key sites to build business cases
- feasibility studies to help to attract private investment
The DCF aligns with and supports cost reduction efforts related to retrieval and disposal activities, with the aim of improving the Scottish onshore decommissioning market.
It supports the Decommissioning Action Plan and complements past successes of the Scottish supply chain in securing contracts for certain aspects of high-value decommissioning work.
Projects supported by the DCF
The DCF ran for two successful calls in 2017 and another in 2018. Grant offers totalling £4.8 million were made to 12 projects and partnerships.
Some examples of projects supported by the DCF include:
- Hunterston Marine Yard – funding was provided for feasibility studies, the first stage of plans to redevelop the marine quay, and infrastructure to support waste management from decommissioning activity.
- Heavy-lift crane, OilMac Dundee – funding was provided to purchase a 1,200-tonne fixed-location heavy-lift crane to deliver cheaper heavy lift rates to decommissioning projects
- Upgrades at Kishorn Port – funding was provided to assist with the site requirements of a permanent pumping system for the dry dock, concrete repairs for extra protection, roadway surfacing for easy access, and fendering for flood tunnels to prevent damage to flood covers
- Going full circle, Dales Marine – funding was provided to create an efficient decommissioning business based at Imperial Dry Dock in Leith, Edinburgh.
DCF Programme Board and Partners
We chair the DCF Programme Board, which is responsible for ensuring the DCF supports projects with the best opportunity of securing onshore decommissioning contracts and which have a high likelihood of succeeding.
The Programme Board’s key roles are to:
- evaluate and endorse applications, make awards, and steer the production of a DCF award Board Report
- establish the approach to monitor who project awards are spent, budget oversight and governance of the fund
- contribute to discussions regarding the financial approach to any extension to the DCF beyond the initial year 1 funding
The Programme Board is supported by the DCF Partners, drawn from Scottish Enterprise and Highlands and Islands Enterprise, who are responsible for the day-to-day running and administration of the Fund. This includes making small awards, reporting outcomes, and preparing materials for Programme Board meetings, including recommendations.
For more information on the Decommissioning Challenge Fund, email DCF@gov.scot.