{"id":2352,"date":"2017-12-01T10:00:01","date_gmt":"2017-12-01T10:00:01","guid":{"rendered":"https:\/\/blogs.gov.scot\/scotlands-economy\/?p=2352"},"modified":"2018-02-20T15:18:41","modified_gmt":"2018-02-20T15:18:41","slug":"scotland-can-benefit-from-lucrative-decommissioning-market-paul-wheelhouse","status":"publish","type":"post","link":"https:\/\/blogs.gov.scot\/scotlands-economy\/2017\/12\/01\/scotland-can-benefit-from-lucrative-decommissioning-market-paul-wheelhouse\/","title":{"rendered":"Scotland can benefit from lucrative decommissioning market &#8211; Paul Wheelhouse"},"content":{"rendered":"<p><a href=\"https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1.jpg\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-2353 lazyload\" data-src=\"https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1-300x282.jpg\" alt=\"\" width=\"300\" height=\"282\" data-srcset=\"https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1-300x282.jpg 300w, https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1-768x722.jpg 768w, https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1-1024x963.jpg 1024w, https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1-545x512.jpg 545w, https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1-447x420.jpg 447w, https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1.jpg 2048w\" data-sizes=\"(max-width: 300px) 100vw, 300px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/282;\" \/><\/a><\/p>\n<p><b><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">Paul Wheelhouse, Scottish Government Minister for Business, Innovation and Energy <\/span><\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cThe North Sea\u2019s oil and gas reserves remain significant \u2013 even after decades of production and prosperity.<\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cThere are <strong>up to 20 billion barrels of reserves still to be recovered<\/strong> and production is likely to continue for <strong>at least another 20 years.\u00a0<\/strong> <\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cWhile maximising economic recovery from the North Sea is central to the Scottish Government\u2019s energy policy, with associated investment in innovation, sustainability and health and safety, decommissioning is a growing economic opportunity for the Scottish supply chain. Over the next decade, our oil and gas sector must capitalise on a decommissioning market that is forecast to reach \u00a317 billion.<\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cOil and Gas UK\u2019s recent Decommissioning Insight report shows that the UK has the largest decommissioning market in the North Sea, with the \u2018well plugging and abandonment\u2019 phase of the process providing the largest category of expenditure in Scottish waters and the North Sea Basin. The industry body predicts that about \u00a38.3 billion will be spent over the period up to 2025. This demonstrates the real opportunity for the Scottish supply chain. <\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cMany companies are already aware of the opportunities and actively engaged in decommissioning projects, and developing and enhancing their competitive capabilities. <strong>The recent arrival of the Buchan Alpha platform for decommissioning at Dales Voe in Shetland is a great example, but not the only one<\/strong>.\u00a0 <\/span><\/span><\/p>\n<p><span style=\"color: #1f497d; font-family: 'Arial','sans-serif';\">\u201c<\/span><span style=\"color: black; font-family: 'Arial','sans-serif'; font-size: 11pt;\">Scotland is building skills and expertise, with Scottish based firms securing more than half of the total value of contracts awarded so far from decommissioning activity from a range of activities such as well plugging and abandonment through to onshore dismantling and disposal.<\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cThere\u2019s no doubt that Scotland\u2019s supply chain is doing well, but there is a huge amount of skills and experience in the sector which could yet be utilised for decommissioning purposes. In order to encourage that potential, the <strong>Scottish Government launched our \u00a35 million Decommissioning Challenge Fund<\/strong>. This initial funding was designed to pump prime new decommissioning infrastructure and supply chain investment and further develop Scotland as a major centre for decommissioning in the North Sea.\u00a0\u00a0 <\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cThe DCF has attracted infrastructure, feasibility, and innovation projects, across two calls in the year, with 37 separate and varied projects expressing interest in the Fund and subjected to a rigorous process of appraisal. The successful applicants to the first round of the DCF were announced on this week, to coincide with the hugely successful Offshore Decommissioning Conference 2017, run jointly by Decom North Sea and Oil &amp; Gas UK.\u00a0 <\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cThe DCF will fund seven projects based in Dundee, Methil, Montrose, Ardersier, Stornoway, and Hunterston with a combined funding of \u00a31.1 million. The projects were varied and included those seeking to develop \u2018piece small\u2019 and \u2018piece medium\u2019 decommissioning, a dry dock solution for floating infrastructure, and the installation of the UK\u2019s largest permanent quayside crane in Dundee.\u00a0 <\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cA second call to the DCF closed in October and a number of innovative projects across the Scottish mainland, Orkney and Shetland have been approved by the Programme Board to undergo detailed due diligence, it is estimated that more projects will receive grant offers by the end of the year.<\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cThe Scottish Government is seeking to further increase the ability of the supply chain to secure onshore decommissioning contracts, with the Programme for Government committing a further \u00a37.5 million towards establishing an \u2018ultra-deep water port\u2019 in Scotland.<\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cOur revised and refreshed Oil and Gas Industry Leadership Group which met in Aberdeen last Friday will also have a stronger scope in terms of monitoring and supporting this sector. This group will be a vehicle that delivers action in areas such as an enhanced focus on support for the supply chain, for workforce engagement and on new areas of opportunity.\u00a0\u00a0\u00a0<\/span><\/span><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u00a0<\/span><\/span><\/p>\n<p><span style=\"font-family: 'Arial','sans-serif'; font-size: 11pt;\"><span style=\"color: #000000;\">\u201cWe, the Scottish Government, remain committed to working with this innovative and dynamic sector in the decades to come to provide the stability, support and incentives required for this industry to continue to be successful and to contribute to Scotland\u2019s energy needs throughout, and beyond, the low carbon transition.\u201d<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paul Wheelhouse, Scottish Government Minister for Business, Innovation and Energy \u201cThe North Sea\u2019s oil and gas reserves remain significant \u2013 even after decades of production and prosperity. \u201cThere are up to 20 billion barrels of reserves still to be recovered and production is likely to continue for at least another 20 years.\u00a0 \u201cWhile maximising economic&#8230;<\/p>\n","protected":false},"author":438,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[104,3,4,5,214],"tags":[314,33,315],"class_list":["post-2352","post","type-post","status-publish","format-standard","hentry","category-business","category-economy","category-employment-2","category-energy-2","category-innovation","tag-decommissioning","tag-energy","tag-paul-wheelhouse"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Scotland can benefit from lucrative decommissioning market - Paul Wheelhouse - Scotland&#039;s Economy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.gov.scot\/scotlands-economy\/2017\/12\/01\/scotland-can-benefit-from-lucrative-decommissioning-market-paul-wheelhouse\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Scotland can benefit from lucrative decommissioning market - Paul Wheelhouse - Scotland&#039;s Economy\" \/>\n<meta property=\"og:description\" content=\"Paul Wheelhouse, Scottish Government Minister for Business, Innovation and Energy \u201cThe North Sea\u2019s oil and gas reserves remain significant \u2013 even after decades of production and prosperity. \u201cThere are up to 20 billion barrels of reserves still to be recovered and production is likely to continue for at least another 20 years.\u00a0 \u201cWhile maximising economic...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.gov.scot\/scotlands-economy\/2017\/12\/01\/scotland-can-benefit-from-lucrative-decommissioning-market-paul-wheelhouse\/\" \/>\n<meta property=\"og:site_name\" content=\"Scotland&#039;s Economy\" \/>\n<meta property=\"article:published_time\" content=\"2017-12-01T10:00:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-02-20T15:18:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blogs.gov.scot\/scotlands-economy\/wp-content\/uploads\/sites\/11\/2017\/11\/PW-portrait-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2048\" \/>\n\t<meta property=\"og:image:height\" content=\"1925\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Alan Bannon\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Alan Bannon\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/blogs.gov.scot\/scotlands-economy\/2017\/12\/01\/scotland-can-benefit-from-lucrative-decommissioning-market-paul-wheelhouse\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/blogs.gov.scot\/scotlands-economy\/2017\/12\/01\/scotland-can-benefit-from-lucrative-decommissioning-market-paul-wheelhouse\/\"},\"author\":{\"name\":\"Alan Bannon\",\"@id\":\"https:\/\/blogs.gov.scot\/scotlands-economy\/#\/schema\/person\/22498aefc92001832755d86ff2c086b7\"},\"headline\":\"Scotland can benefit from lucrative decommissioning market &#8211; 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