Sustained low oil prices are accelerating decommissioning plans in the UKCS. (Image credit: MR1805)

Maersk to decommission Janice field

Denmark’s Maersk Oil is to apply to the UK Oil and Gas Authority to shut down its Janice field in the second half of 2016.

Janice, in the central North Sea, began operating in 1999 with recoverable reserves of 7 million barrels. It is now producing only 7,000 barrels a day.

“Ongoing challenges in the market and Maersk Oil’s cost transformation process” have meant that the field is no longer economical, the company said in a statement.

The main infrastructure is a semisubmersible platform above Janice, to which the Affleck and the James oil fields are tied back.

Maersk staff were informed of the decision to seek regulatory approval for decommissioning at a meeting in Aberdeen.

“All options will be explored through consultation to minimise impact on positions, but it is possible that 200 onshore and offshore roles may be affected,” a spokesman for Maersk Oil said.

Nuclear specialist enters decom market

Stoller Newport News Nuclear (SN3), a subsidiary of US shipbuilding giant Huntington Ingalls Industries, is to bring its experience in decommissioning nuclear plants to the UK offshore oil and gas market.

SN3 will work with sister company UniversalPegasus International, a consultant that specialises in providing engineering, regulatory and cost advice to the offshore, subsea, and P&A sectors.

Gavin Stevenson, UPI’s UK Managing Director, said "given the current low oil price environment there is a growing demand for the services we provide which has also resulted in UPI conducting decommissioning services for projects we originally conducted detailed design for."

Companies must "bring a fresh approach to decommissioning to reduce costs," Stevenson said.

The new partnership will bring N3’s extensive nuclear decommissioning expertise to the UK offshore market, in particular experience of nuclear supply chain collaboration and project planning .

Norwegian contractor hired for Indonesian P&A campaign

Norshore's Atlantic multipurpose drilling vessel has been hired for a Plugging and Abandonment (P&A) campaign in Indonesia, Norwegian drilling contractor Norshore announced September 1.

The operator, which has not been named, will use it to seal three wells. The vessel, which is now in Singapore being fitted with a blow-out preventer and riser, will start work on the project mid-October.

“It is very encouraging to see that Norshore’s ability to provide cost efficient solutions to our clients, and especially to the oil majors, again has proven to be successful, even in today's difficult market conditions," Petter Tomren, Norshore's CEO, said.

Xodus wins subsea role at Ettrick, Blackbird

Xodus Group is to provide FEED services to China-owned Nexen Petroleum for the decommissioning of the Ettrick and Blackbird fields in the central North Sea.

The Scottish contractor will advise Nexen on the best way to remove flowlines, umbilicals and risers. The work involves developing the decommissioning methodology for the field in line with industry best practice.

“Offshore infrastructure is complex but a logical approach to decommissioning which makes the most of operational data, lessons learned and latest technologies can reduce costs at every stage of the process," Andrew Wylie, Scotland Subsea Operations Manager for Xodus, said.

Nexen, which is based in Calgary, Canada, is a subsidiary of Chinese National Offshore Oil Corporation.