Decc News

Subsea 7 will provide decommissioning services for the second phase of Centrica’s Rose and Stamford gas field decommissioning programs, located in the southern North Sea. The project is the latest call-off contract under a partnership frame agreement signed in 2005. Subsea 7 has partnership frame agreements with several independent operators, to provide services on a long-term preferred supplier basis. This collaborative approach is helping to drive down costs and promote early engagement on a wide range of projects. Having completed phase one in 2015, phase two will focus on the safe removal and recovery of a greater number of subsea pipeline components, and the responsible management of waste disposal.

Cairn is pleased to announce that it has entered into a farm out agreement for the sale of a 10% interest in the Catcher development and adjacent acreage in the UK North Sea. With effect from 1 January 2014 Dyas UK Limited (Dyas) shall acquire 10% in each of the following UK Continental Shelf licences P1430, P2040, P2070, P2077 and P2086 by funding Cairn’s exploration and development costs in respect of the licences up to a cap of $182million (m). Following this transaction Cairn will retain a 20% interest in the Catcher licence and a reduced interest in each of the remaining licences as detailed below. As a result of this transaction…

Britain imported more oil products than it exported last year for the first time in 30 years, an official report shows, and analysts say the country is likely to stay dependent on overseas oil as its refineries close. Britain exported 26.2 million tonnes of products such as diesel, kerosene and jet fuel from its refineries last year, but imported 28.2 million tonnes, due to the closure of two major oil processing plants. "The U.K. was a net importer of petroleum products in 2013 for the first time since 1984, the year of the miners' strike," the UK's Department of Energy and Climate Change (DECC) said in its annual report. Coryton oil…

In its annual Activity Survey for 2014, trade association Oil & Gas UK says only 15 exploration wells were drilled in 2013, according to figures from the Department of Energy & Climate Change (DECC), continuing a steep downward trend. Exploration over the past three years has been at its lowest in the history of the UK Continental Shelf (UKCS) and in 2013 replaced just 80 million barrels. Oil & Gas UK chief executive, Malcolm Webb, reflects widespread concern on exploration: “Even if currently planned wells proceed…

U.K. energy regulator Ofgem on Wednesday launched a £400 million tender for linking offshore wind farms in the North Sea to Britain's national power grid. Ofgem is calling for firms to construct high-voltage transmission links to connect the Westermost Rough wind farm owned by WMR Limited, part of DONG Energy, and the Humber Gateway wind farm owned by E.ON., to the grid, Ofgem said in a statement. The two sites have a combined capacity of 425 megawatts, while the successful bidders will receive a guaranteed revenue stream for 20 years, Ofgem said. Offshore wind farm developers are required by the regulator to open their transmission assets for tender to encourage competition and lower prices.

By John Kemp. The opinions expressed here are those of the author, a columnist for Reuters. Britain's North Sea exploration and production business is set to be transformed, with cooperation replacing competition and proactive, intrusive regulation replacing a light touch. On Monday, ministers promised to back fully the recommendations contained in Ian Wood's review on maximising oil and gas recovery from the UK Continental Shelf (www.woodreview.co.uk). A powerful new regulator will be spun out of Britain's Department of Energy and Climate Change (DECC), staffed by industry experts with salaries to match, to end the squabbling among offshore operators and promote a strategy based on shared infrastructure and regional development plans.

Registration for the largest-ever Oceanology International (ExCeL London, March 11-13, 2014) is now open at oceanologyinternational.com. With 520 exhibitors from 35 countries taking up over 8,000 m2 net of space, the biennial global forum is where industry, academia and government come together to share knowledge and connect with their peers in the marine technology and ocean science community, thus improving their strategies for measuring, exploiting, protecting and operating in the world’s oceans. “It is not only the exhibition that is record-breaking, we have an impressive series of eight conferences and three highly topical panel discussions planned by the industry for the industry,” explained Event Director, James Coleman of Reed Exhibitions.

Developer RWE Innogy is pulling the plug on the 240-turbine Atlantic Array project, report BBC News citing a  Department of Energy and Climate Change (DECC) source. The 222m (721ft) tall turbines, planned to be situated in an area 200 sq km, (77 sq miles) about 16.5km (10 miles) from the north Devon coast, 22.5km (14 miles) from south Wales coast and 13.5km (8 miles) from Lundy Island nature reserve, would be capable of producing enough electricity for up to 900,000 homes. DECC commented to the BBC that the scrapping of the scheme was a matter for the developer…

The U.K. Department of Energy and Climate Change (DECC) issued a news release stating that the interim report on the economic and energy security opportunities still available from the U.K.’s offshore oil and gas resources has been completed. Among other things, the report recommends a new arm’s length regulatory body to oversee and develop a program to maximize the economic recovery of oil and gas for the U.K. Sir Ian Wood has published his interim report revealing the economic and energy security opportunities still available from the U.K.’s offshore oil and gas resources.

The equivalent of 41 billion barrels of oil have already been produced from the UK Continental Shelf, but production is declining. Improving the way the UK's offshore oil and gas industry is regulated could boost the economy by £200bn over the next 20 years, according to a new government-commmissioned report by retired oil tycoon Sir Ian Wood, reports BBC Scotland. The current regulator, which is situated within the Department of Energy and Climate Change (DECC), is now significantly…

Tideland Signal has launched a comprehensive integrated package of warning systems specifically designed to mark meteorological masts in offshore windfarms. The complete package includes both aids to navigation (AtoN) to warn shipping in the vicinity and also aircraft obstruction lights (AOL), all compliant with the relevant IALA (International Association of Lighthouse Authorities) and the UK's DECC standards (Department of Energy & Climate Change). As the leading OEM in its field…

A standard program template for U.K. offshore decommissioning projects has been credited with heralding a step-change for the industry after being formally endorsed by the U.K. regulators and successfully trialed by three international operators for different types of asset. Decommissioning industry body Decom North Sea (DNS) developed the template in partnership with the Department of Energy and Climate Change (DECC). The new template will help streamline and standardize the format for decommissioning programs throughout the UKCS whilst still fully satisfying regulatory requirements.

Government and business publish a long-term strategy that will strengthen the UK’s position in the offshore wind industry. The multi-million pound investment has the potential to unlock £7 billion in the economy by 2020. The UK currently has more offshore wind power than the rest of the world combined. The offshore wind industrial strategy aims to grow UK supply chain manufacturing so that more of the work and jobs can be done here. Investments by the government will include £20 million from the Regional Growth Fund to improve the UK wind industry’s supply chain…

Offshore Installation Services Ltd (OIS), an Acteon company, launched a new service designed to help operators fulfill their suspended well decommissioning plans. Wellintel is a well data collection and review service that gathers and prepares the information operators require before they start a decommissioning program. OIS engineers with extensive well abandonment knowledge and detailed understanding of the entire decommissioning process will deliver the service. Operators having…

Global stakeholders in the unconventional arena will meet to identify and overcome the barriers to all types of unconventional gas developments at the third Unconventional Gas Aberdeen conference and exhibition March 25-26, 2014. Dan Byles, MP and leader of the All-Party Parliamentary Group for Unconventional Oil and Gas (APPG UG), will address hundreds of delegates at the two day event at Aberdeen Exhibition and Conference Center. He is joined by other distinguished speakers including Duarte Figueira, head of the new Office of Unconventional Gas and Oil at DECC and Ken Cronin, CEO of U.K.

GDF SUEZ E&P UK Ltd awards a £1.4 million joint study to Xodus Group and Atkins for Concept Select work for the Austen (formerly Jacqui) field in the Central North Sea, with a further option to proceed into the Concept Definition phase. The studies will identify development and export options for the field. Aberdeen-based Xodus and Atkins will start work immediately with completion scheduled for Q1 2014. The contract follows the successful drilling of an appraisal well by GDF SUEZ E&P UK in 2012 and was bid against competition from other UK and European contractors. It is the start of several workscopes currently being planned by GDF SUEZ E&P UK to support its Central North Sea development portfolio.

Oil & Gas U.K. said it is pleased that a plenary vote in the European Parliament may see the introduction of a directive on offshore safety and environment. Robert Paterson, Oil & Gas U.K.’s health, safety and employment director, said: “Oil & Gas U.K. has worked hard to campaign for this directive in place of the European Commission’s original proposition of a Regulation and the very real danger to our workers’ safety that this would have brought. [Directives are addressed to member states rather than their citizens, and are therefore only legally binding upon the states themselves. Under the process known as "transposition" the directive sets the framework but the practical details of implementation are left for the member states to decide.

Statoil has awarded the contract for drilling services on the Mariner platform on the U.K. continental shelf to U.K.-based Odfjell Drilling. Odfjell Drilling will perform drilling services, maintenance of the drilling facility and drill pipe logistics for the Mariner field development, with options also on the Bressay field development. Casing, tubing running services and modifications to the drilling facility is also optional in the contract. The contract duration is four years from November 2016 plus 3x2 years options. The contract has an estimated value of GBP 160 million.

Increased UK drilling and deal activity leads the way back to health in North West Europe says new report. A broader range of tax allowances and a sustained high oil price boosted drilling activity on the UK Continental Shelf (UKCS) by one third in 2012, according to a new report by Deloitte, the business advisory firm. The report, compiled by Deloitte’s petroleum services group (PSG), which documents drilling and licensing activity across North West Europe for the whole of last year, shows 65 exploration and appraisal wells were drilled on the UKCS in 2012, marking a 33% increase on last year’s total of 49. This compares to lower drilling activity levels reported in Norway in 2012, down by 19% when compared to the previous year.

UK Energy Minister John Hayes is due to speak at a new one-day event for the oil & gas decommissioning sector established to help overcome the challenges facing companies dealing with infrastructure that has come to the end of the lifecycle. He joins a line-up including some of the oil & gas decommissioning sector’s most experienced figures who will present at Decom Offshore 2013, being held by Decom North Sea (DNS), the offshore oil & gas decommissioning forum. It is taking place in Aberdeen on March 27. The aim of the day, entitled ‘‘Decom Offshore – Confronting Challenges, Creating Opportunities’, is to introduce operators and major contractors to innovative technologies, techniques and solutions which can help overcome key issues faced in decommissioning projects.

- News comes amid EU attempts to change safety rules. The UK government unit responsible for monitoring offshore safety has become increasingly active in the wake of the Gulf of Mexico oil spill, according to international law firm Pinsent Masons. Energy specialists at the firm say that the number of inspections carried out by the Offshore Environmental Inspectorate (OEI), part of the Department of Energy and Climate Change, have increased by over 70% since 2007. Inspections are also on course to rise by around a third since the Gulf of Mexico spill.

Keynote speech by Richard Sadler, CEO Lloyd’s Register, at the annual Donaldson Lecture to the Lloyd’s Market Association. "I have always been fascinated by the assertion of Martin Stopford, the respected Clarkson analyst, that merchant shipping is the biggest poker game in the world. Since hearing it, I increasingly believe that working out the odds of ensuring consistent prosperity is so difficult that it is more like the game of roulette. In roulette, the odds are designed so that, over time immemorial, the punters will always lose 5.28 cents of every dollar they wager. Let’s hope shipping proves a better bet. As an island society, we are almost totally dependent upon maritime transport for food and energy supplies. Could there be two more critical commodities?

UK Government announce its decision on international aviation and shipping emissions. Government will defer a decision on whether to include international aviation and shipping emissions in carbon budgets until the setting of the fifth carbon budget in 2016, by which point there should be more clarity on how aviation emissions will be tackled at an EU and global level. Last month, the European Commission proposed that it would suspend international aspects of the aviation EU Emissions Trading Scheme in order that progress could be made by the International Civil Aviation Organization in developing a global agreement on the treatment of aviation emissions.