Shell

feature decommissioning

end of the line: Brent field, with the

obsolete alpha in the foreground

What do you do with an

obsolete oil rig?
Innovative approaches for reusing obsolete offshore oil platforms could
create new revenue streams and environmental benefits
Charles Dexter and Jasmine Ghorashi
ENVIRONMENTAL SCIENTISTS, GHD

CCORDING to Douglas-Westwoods new North Sea

decommissioning that use the assets as economically as

Decommissioning Market Forecast, it is expected that

possible. Here are some of the options.

between 2016 and 2040 around US$70bn82bn will be

spent on rig decommissioning by countries with assets in the

North Sea. As the country with the most offshore infrastruc-

Decommissioning in port

ture, the UK will bear approximately 60% of this expenditure.

This method involves transporting the rig to an onshore dock

Most decommissioned platforms are dismantled while in

and dismantling it there, reducing the health, safety and

place at sea and then, using reverse installation methodologies,

environmental hazards of cutting the platform into small

transported back in pieces with the raw materials being

pieces in the middle of the North Sea, as well as the cost of

recycled onshore. However, the falling price of oil and gas and

transporting the pieces back in multiple batches for further

corresponding cuts in expenditure are driving investi-

processing. Several pioneering classes of heavy-lifting ship

gations into alternative and cost-effective approaches to

have been developed that are capable of transporting rigs to

SEPTEMBER 2016 | The Chemical Engineer | page 38

feature decommissioning

specialised decommissioning ports. This option allows for

rigs into a valuable revenue stream for operators, through sale

process lines and other equipment on the rig to be more easily

or lease of these assets. Examples can now be found across the

removed in one piece for future sale or reuse.

world, for instance the Seaventures Dive Rig, a decommissioned

accommodation rig transported from a Singapore port to the
coast of Borneo in Malaysia for reuse as an exotic diving hotel.

Rig to reef

There is also the Ocean Star Offshore Drilling Rig Museum, a

Instead of removing the rig, it can be converted into an artificial

retired drilling rig converted to a museum and education centre

reef that will support marine life. Not only does this avoid

on Galveston Island, US.

expensive rig removal costs, it also increases the biodiversity

The novelty value of offshore structures is evident in the

of the area and potentially benefits fisheries. Many rig-to-reef

example of Sealand, a disused defence tower that has been

projects have already been undertaken in the Gulf of Mexico and

converted into an unrecognised and allegedly sovereign

in the Asia-Pacific region, and are gaining popularity in the US.

micro-nation located off the coast of the UK.

This option is not currently viable in the North Sea, as

a result of legislation imposed by the Oslo-Paris Commission (OSPAR) in its Decision 98/3 (1998). Compliance requires

Aquaculture

entire removal upon decommissioning of all rigs located in the

Old oil rigs could be used as self-contained hubs for deep sea

OSPAR maritime area (which includes the North Sea), unless the

fish farming at a reduced cost.

structure conforms to specific exemption requirements; in this

A number of pilot projects have been undertaken to assess

case permission may be given to leave part or all of the structure in

the feasibility of this form of aquaculture, but these are still

place. Exemptions have been granted in the past, but companies

predominantly in their infancy and their cost effectiveness is

must invest significant time, effort and cost in producing an

largely unknown.

application, followed by a lengthy approval process.

Carbon capture and storage

Alternative energy

There have been proposals to repurpose rigs to enable carbon

Can the platform support offshore wind, tide or wave energy

capture and storage (CCS), lowering the cost of rig decommis-

generation? A number of investigations have been undertaken

sioning and making the prospect of creating a CCS network

exploring the viability of reusing oil and gas structures for

more economic.

new alternative energy projects. Although attractive, this idea

CCS has been used on a small scale in the North Sea already.

remains in its initial stages, with no projects yet being under-

In the Sleipner field, excess carbon dioxide is removed from

taken and the cost effectiveness of this approach unproven.

natural gas production streams to meet the concentration

required for sale to the grid. Rather than release the excess gas
to the atmosphere, rigs at Sleipner compress and reinject it into

Tourism

a deep porous rock reservoir. The process currently prevents

Some decommissioned oil rigs have already been converted into

approximately 1m t/y of CO2 from entering the atmosphere.

hotels, dive centres and museums, attracting tourists thanks to

However, the recent decision by the UK government to scrap

their novel location and the increased biodiversity of artificial

a 1bn CCS commercialisation programme may slow develop-

reefs. This option has the potential to convert decommissioned

ment of the technology in the UK, with companies now expected

to decrease investment in CCS projects until firm government

US Bureau of Ocean Energy Management

backing is in place.

Conclusions
On a global scale, rig-to-reef conversion is currently the
most common alternative rig decommissioning method, but
due to legislative restrictions this is not yet a viable option
within North Sea waters. While the remaining methods can
potentially provide operators with financial and environmental
benefits, they are still predominantly in the pilot or investigation stages and their economic viability is largely unknown.
Nevertheless, as the oil and gas sector adapts to ongoing

marine corps: A diver inspects coral growing

on an oil platform leg, Gulf of Mexico

economic challenges, it is likely that the diversification of rig

decommissioning methods will play a key role in maintaining
a cost effective industry into the future.

SEPTEMBER 2016 | The Chemical Engineer | page 39