Friday 17 July 1998

Offshore Industry Response To Government Shift On Decommissioning

The UK offshore oil and gas industry, represented by the UK Offshore Operators Association (UKOOA), is disappointed by the Governments announcement today that it is changing its position with regard to the decommissioning of offshore oil and gas installations in advance of the OSPAR Ministerial meeting next week.

James May, Director-General of UKOOA, said: I am concerned that the Governments position may not provide sufficient flexibility in the OSPAR Decision to ensure that the best solutions can be found. The industrys position continues to favour case by case assessments for the largest structures, taking account of all relevant factors. Such an approach would enable the best solutions to be developed, balancing environmental impacts on land, sea and air, safety, cost and technical feasibility.

The Environment Ministers meeting at the OSPAR Ministerial meeting in Portugal next week will make the final decision.

Note to Editors

* The industry does not believe in the indiscriminate disposal of any waste at sea.

* There are 475 platforms in the North Sea.

* In UK waters, there are: 60 large steel structures

140 small steel structures

11 concrete gravity based structures

* Large steel structures are defined by 1989 IMO Guidelines and are structures in waters deeper than 75 metres and jackets weighing more than 4,000 tonnes.

* The industry will totally remove at least 70% of all structures in the North Sea.

* Of the large structures, which are the focus for the current debate, the industry believes that these should be evaluated on an individual basis to ensure the best overall solution is found. No two structures are the same and therefore there is no one solution.

* The best solution should balance all factors including environmental impacts (sea, land and air), cost, health & safety to workers and technical feasibility.

* The estimated cost for total removal of all structures in the North Sea is $20b.

* The estimated cost for removing a large steel structure in the North Sea is $100-200m.

* The Governments proposal is to secure a derogation to the OSPAR Decision to be agreed in Sintra, Portugal which will allow the leaving in place, in certain circumstances, of heavy steel foundations or bottles.

* Bottles are heavy structures at the base of platform legs (or jacket), usually filled with concrete. They act as a sheath to hold the piles driven into the sea bed.

* They can be up to 25 metres tall and can weigh as much as 30% of the total jacket weight.

For more information, please call 020 7802 2400.