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A new oil group has been formed to try and set up an oil rig decommissioning base in the Western Isles.

 

The Arnish site outside Stornoway is flagged up as a suitable location.

 

The new Outer Hebrides Energy Group has identified a “lucrative niche opportunity” for the islands in the storage, reconditioning, resale and local re-use of oil rig components.

 

It is confident that elements of decommissioning work can be attracted to the islands.

Many of the 470 oil and gas platforms in the UK North Sea are approaching the end of their operational lives.  

 

Over the next 20 years a growing number will be removed and decommissioned onshore, providing a new source of jobs.

 

The UK industry could be worth an estimated £35 billion by 2040.  

 

But only 1% - or £350 million - of that total decommissioning spend will occur on land as the rest of the work occurs at sea.

 

The comhairle, Highlands and Isles Enterprise (HIE) and other agencies are keen to see some of that work take place in the Western Isles.

The drawback is the number of yards already carrying out similar work as well as rival locations able to compete with the Western Isles.

 

The energy group also believes there are “considerable opportunities” for specialist companies to set up base in the Western Isles and undertake preparation work on offshore rigs at sea as they are wound down and prepared for removal and transportation.

 

A beefed-up decommissioning strategy seeks to work with Stornoway Port Authority’s proposals for a new deep water port by Arnish.

 

The council’s sustainable development chairman, Donald Crichton, said: “The potential of decommissioning work is an exciting prospect which could offer real and significant employment and economic opportunities.

 

“It is important that we put the work in now to maximise those opportunities for the Islands in future.

 

“It is also important that we work with our partners to ensure the islands are best placed to take advantage of the opportunities that decommissioning will provide.”

 

Although depth of access into Arnish may be a constraint, shallow draft semi-submersibles can be taken into Glumaig Harbour, a notable example being BP’s Drillmaster, converted at Arnish during the 1980s.

 

Disassembled topsides - the upper part of an oil platform - or modules could be shipped in by barge to be recycled on land.

 

 

 

 

Growing oil rig decommissioning industry offers

“considerable opportunities” for Western Isles

21 June 2017