News / Isles ‘ideally placed’ for decommissioning
ISLES MSP Tavish Scott has expressed his disappointment that Royal Dutch Shell has chosen Teesside, rather than Shetland, to decommission its Brent Delta oil platform.
Shell has announced it will begin consulting on its plan to remove the first of its iconic Brent platforms and hopes to carry out the first phase of the operation in 2016.
Lerwick Port Authority, in particular has focused strongly on developing its harbour into a base for decommissioning offshore installations. It has put in place infrastructure at Greenhead Base and Dales Voe to enable it to accommodate heavy-lift vessels and rigs.
Scott shares the LPA’s view that Shetland’s location leaves it ideally placed close to activities in the North Sea and Atlantic to meet oil and gas companies’ needs when it comes to decommissioning.
Last year investments worth a combined £20 million from the LPA and energy logistics firm Peterson were announced.
Following the news that the Brent Delta will be broken up at yards on Teesside in the north east England, Scott said: “It is unfortunate that Shell did not choose the closest land with the best facilities to begin the decommissioning of the enormous Brent oil field.
“Shetland is ideally placed, has deep water, a skilled labour force and extensive experience in decommissioning already. I heard many Shell bosses saying Shetland is ideally placed to carry out this work.
“So it is disappointing that we won’t see the benefits of this particular job. However Shetland is well placed to win new decommissioning work and I have no doubt that will happen as the oil industry makes such decisions in the coming years.”
Meanwhile Northern Isles MP Alistair Carmichael has welcomed a commitment from the new Aberdeen-based Oil and Gas Authority’s chief executive Andy Samuel to visit Shetland and Orkney “in the near future”.
“His role in setting the future direction of the industry will be crucial so getting him to the Northern Isles to see how the industry works here will be important,” Carmichael said.
“We are currently still seeing very healthy levels of activity, especially in Shetland, but looking to the future we should not be complacent and can take nothing for granted.”
The MP and Scottish Secretary of State also spoke of the need for a “collaborative approach” to solve the problems the oil and gas industry is facing.
Industry firms have been clamouring for tax breaks in the wake of oil prices plummeting from over $100 a barrel to around $50 a barrel since summer 2014.
After an oil and gas summit in Aberdeen on Monday with industry leaders, trade unions and politicians from the UK and Scottish governments, Carmichael added: “Today’s summit was a good opportunity to get everyone around the table and discuss the challenges facing the North Sea oil and gas sector and how we can tackle them.
“I was greatly encouraged by the willingness of all to work together collaboratively to see the industry through the current downturn in prices.”
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