1. Delivering cost reduction through multi-client campaigns
Achievement
Decommissioning work across multiple operators is regarded as a recent phenomenon, however a multi-client campaign model has been used by Acteon for over 20 years in the North Sea. The model has been found effective in reducing decommissioning cost by an estimated
% per operator, when compared to the costs incurred by operators working independently on standalone scopes.
Acteon has successfully delivered multi-operator subsea well plug and abandonment campaigns, supported by proven well abandonment tooling and a commercial approach allowing sharing of fixed costs. More than 130 subsea E&A wells have been plugged and abandoned using this approach, and this model can be applied to subsea development wells and subsea infrastructures removal across multiple operators and multiple fields. The scope of work can be optimised and efficiencies delivered by considering the infrastructure to be removed across numerous fields as part of a campaign rather than as single operator projects.
Encouraging operators to work together can sometimes be challenging from a legal and commercial perspective. However, this has been proven to be possible, with considerable benefits including decommissioning cost reductions.
OGA Decom Team Comments
Multi-client campaign execution is demonstrated to be a major opportunity for the industry to achieve significant decommissioning cost savings through reduced mobilisation charges, improved planning/scheduling and optimised equipment selection. This is a good example of effectiveness of the principle and the magnitude of the resulting cost efficiencies.
Key facts
Operator’s costs are minimised by appointing a single project management and engineering contractor for one large, integrated scope.
Overall cost reductions per well of circa 30-40% depending on volume of wells in each campaign.
Sharing of fixed costs across multiple operators reduces their individual costs.
Combining other subsea infrastructure into well abandonment campaigns through effective planning has the potential to optimise vessel and equipment selection and further minimise overall subsea decommissioning cost.