Extracting oil and gas on the UK Continental Shelf directly accounts for around 3.5% of the UK’s greenhouse gas emissions. In March, this figure prompted ministers to consider banning further oil exploration licences in the North Sea.
The proposed ban represented a move away from fossil fuels. It would have mirrored the approach adopted by Denmark, which cancelled its next North Sea oil and gas licensing round in December 2020. One option under consideration involved ending permits by 2040 and introducing an immediate temporary pause in licensing.
However, natural gas still heats around 85% of UK homes. An early end to exploration would therefore deal a serious blow to the oil and gas sector, which is concentrated mainly in Scotland and the North East. Approximately 39% of the UK’s 270,000 oil and gas jobs are located in Scotland.
Transitioning away from fossil fuels will take time. Rather than introducing a complete ban on further exploration, the UK Government announced a North Sea Transition Deal with the oil and gas industry. The agreement aims to support highly skilled workers and strengthen the supply chain during the transition to a low-carbon future.
Under the transition deal, government, trade unions and the oil and gas industry will work together. Their goal is to develop the skills, infrastructure and technologies needed to decarbonise North Sea production. Key technologies include offshore wind, hydrogen production and decommissioning.
These measures could reduce pollution by up to 60 million tonnes by 2030. They could also support up to 40,000 jobs across the supply chain.
Ramping up projects
A combination of the transition deal, lower oil prices and ambitions to make the UK a renewable energy leader is already accelerating decommissioning activity in the North Sea.
Despite the disruption caused by COVID-19, UK offshore operators have experienced a busy year. The pandemic forced companies to reduce exploration budgets, while oil prices fell sharply. As a result, many operators are now investing more in decommissioning projects.
Research from Rystad Energy suggests that the UK could receive nearly 80% of the £14 billion expected to be spent on removal projects in Northwest Europe over the next five years. Major assets driving the UK decommissioning market include the Ninian central platform and the Thistle and Brent oil and gas fields northeast of the Shetland Islands.
Securing decommissioning sites
A key commitment within the North Sea Transition Deal is to ensure that local UK businesses deliver 50% of offshore decommissioning projects by 2030.
However, decommissioning remains expensive. Average costs can exceed £4,300 per tonne. Over the next five years, plugging and abandonment (P&A) activities are expected to account for around 45% of total costs. Platform removals will represent almost 20% of overall expenditure.
Project managers must oversee the decommissioning process and manage the associated equipment and resources. They must also maintain safety across the site. Large and highly visible navigation buoys designed for deepwater use play a vital role. These buoys mark hazardous areas around platforms and establish temporary safety zones. However, a single buoy can cost more than £50,000, significantly increasing project costs.
As decommissioning activity increases in the North Sea, demand for navigation buoys will continue to grow. Because these aids to navigation are only required temporarily, renting rather than purchasing them can offer significant cost savings. This approach is particularly attractive for smaller local businesses operating with tighter budgets.
Some platforms may remain in place after decommissioning. However, the navigation aids installed on these structures often rely on generators and may no longer be suitable. Modern LED navigation lights operate independently using solar power. As a result, they continue to function even when generator power is unavailable. Satellite monitoring can also be integrated into these systems, ensuring operators can verify performance at all times.s.
As the UK’s leading supplier of aids to navigation, Hydrosphere provides high-quality and affordable buoys, lights, chains and sinkers for rental. Navigational marker buoys and data buoy platforms are available to rent in a variety of sizes.
To discuss the marine aids to navigation requirements for your decommissioning project, get in touch today.
