Page 31: of Marine Technology Magazine (April 2016)

Prospects for a buoyant rig decommissiong has inspired innovative new ship designs. Vessels such as the Pioneering Spirit, a Single Lift Vessel (SLV), effectively alter market dynamics.

(Photo Allseas) who have seen their budgets slashed repeatedly over the last ? eld itself, bringing down the costs of hiring vessels which 18 months, resulting in a tightening of their available operat- are one of the main drivers of spend. In addition, the harsh ing expenditures. weather conditions typical in the North Sea mean that decom- missioning work for a ? eld could see long delays when con-

The Impact of Single Lift Vessels ditions are unfavourable – bringing the cost up signi? cantly.

In DW’s North Sea Decommissioning Market Forecast With SLVs the actual lifting work can be completed quickly, 2016-2040, which covers Denmark, Germany, Norway and reducing this issue substantially. the UK, decommissioning expenditure has been split into two It should be noted however, that S2 will only become a real- different scenarios. In Scenario 1 (S1) DW assumes that all ity if early jobs by the Pioneering Spirit are completed suc- decommissioning will be completed using currently available cessfully, the day rate is competitive, and operators, who have methods, with most removals utilizing the reverse installation often been unwilling to try new techniques, fully embrace the method. In Scenario 2 (S2) DW includes the potential impact SLV concept. If there is the demand from operators, DW an- that Single Lift Vessels (SLVs), such as the Pioneering Spirit ticipates that the SLV ? eet size will begin to grow as addi- could have on the market. tional vessel companies compete.

The difference to overall spend is clear. In S1 DW antici- pates a total decommissioning cost for the four countries of Well P&A and Removal to Represent over $82 billion 2016-2040, but this decreases to $70B in S2. This 50% of Expenditure is due to the fact that much less time will be required at the The North Sea has had a large number of well installations, www.marinetechnologynews.com

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