Decommissioning Insight 2019

DECOMMISSIONING INSIGHT 2019

4.1 Developing A Strategic Framework

OGUK believes that a strategic approach should be adopted, building a global decommissioning capability in three phases: 1. Excelling in the UK market: According to Wood Mackenzie estimates, 28 per cent of forecast global decommissioning expenditure is to be spent in the UK. In the immediate term, UK-based companies should therefore seek to maximise their share of the domestic decommissioning market, building on areas where a competitive advantage already exists and creating alliances with others where the UK lacks suitable capability. 2. Competitive regionally: I n the short term, the UK supply chain must take full advantage of the regional decommissioning market around the North Sea, much of which can be handled by UK facilities and using UK capability to its full extent. Forecasts suggest that 43 per cent of the global decommissioning expenditure is to be spent in the North Sea area with Denmark, the Netherlands and Norway all anticipating an extensive decommissioning portfolio over the ten-year window. 3. Targeted international ambition: In the longer term, the UK should pursue opportunities globally based on its reputation for delivering North Sea projects. It should also be recognised that some capabilities developed for the regional and North Sea market may not be as relevant internationally. Therefore, in developing as an international hub for decommissioning, it is essential to identify those areas (both activities and services) where the UK has an advantage when considered against local competitors.

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