Norway Decommissioning Pilot Study

In 2017, RESL embarked on a significant project with Petoro, a Norwegian state-owned oil company. The primary objective of this collaboration was to gain valuable insights into the complex landscape of decommissioning oil and gas installations, with a critical focus on decommissioning planning and cost estimation.

• UK, Norway, and Netherlands: RESL meticulously reviewed the prevailing decommissioning laws, regulations, and guidelines of these three key jurisdictions. This in-depth analysis provided a solid foundation for understanding the legal framework of decommissioning operations.
• Identification of Key Considerations: The review highlighted critical factors such as permitting requirements, environmental regulations, safety standards, and financial obligations, which are essential for successful decommissioning projects.

• Decommissioning Cost Estimation: RESL scrutinised historical data on decommissioning cost estimates and actual costs incurred in the UK. This analysis aimed to identify trends, variations, and potential cost drivers.
• Government Policies and Taxation: The team investigated the impact of government policies, taxation regimes, and funding mechanisms on decommissioning projects. Understanding these factors is crucial for accurate cost forecasting and financial planning.
• Liability and Risk Assessment: The review delved into liability frameworks and risk assessment methodologies to assess potential liabilities and develop risk mitigation strategies.

• Identification of Best Practices: By analysing past projects, RESL identified valuable lessons learned, including successful strategies, challenges encountered, and best practices for efficient and cost-effective decommissioning.
• Development of Rule-of-Thumb Costs: The team calculated high-level rule-of-thumb decommissioning costs based on installation type, size, and complexity. These estimates can serve as a valuable starting point for initial cost assessments.

The 2017 project with Petoro marked a significant milestone for RESL. By undertaking comprehensive legal reviews, analysing historical data, and identifying lessons learned, RESL contributed to a deeper understanding of the decommissioning process. The insights gained from this project can be applied to future decommissioning projects, enabling more accurate cost estimations, efficient planning, and effective risk management.