Decommissioning Insight 2019

4.2 The UK as a Global Hub for Decommissioning

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Figure 11: The Components of a Global Hub for Decommissioning

R E P U T A T I O N

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C A P A B I L I T Y

Academia

Operators

P r o j e c t s

Communica�ons

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Exports

Technology

Interna�onal Trade Organisa�ons

Government & Regulators

Supply Chain

E X P E R T I S E

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To be a global hub for decommissioning, the UK must focus on developing several areas:

Projects — At the core of any global hub is a continuous churn of projects. Operators, supply chain, regulators and government should work together to continually improve and become more efficient. As UK projects continue to turn over, the UK industry develops capability and expertise in decommissioning and most importantly builds a global reputation for doing so effectively. Operators — UK-based operators continue to work closely together, sharing learnings and discussing projects to ensure knowledge is filtered around the industry. The more connected our operators are, the more efficient our decommissioning projects can be. Supply Chain— The UK currently benefits from a supply chain growing in skills and experience in decommissioning. In addition to domestic companies, encouraging international companies to house their decommissioning capabilities in the UK and to develop centres of excellence here, is a key focus. This would enable the sector to bid for work on a global scale. The supply chain is adapting to the decommissioning market as capability and understanding are increasing. Companies and consortia are emerging specialising on the decommissioning market, providing either a full service or offering a segmented approach. Having a wide array of supply chain options to conduct decommissioning work scopes is beneficial to all, as it ultimately increases competition and makes the sector more efficient and better able to compete in the global market. While many operators will still see the benefit to develop their own in-house capability, many others will seize the opportunity to outsource enabling the concentration of skills in specialist businesses which can aggregate work and when coupled with continuity of scope, lead to cost reduction through economies of scale.

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