Birmingham specialist set to capitalise on demise of North Sea oil
A BIRMINGHAM firm is set to invest millions creating a major development site on Orkney to take advantage of the expected boom in North Sea oil and gas decommissioning work.
The proposed facility at Lyness, on the east coast of Hoy, has the potential for a significant local jobs boost with further economic benefits to the area to come through the use of local suppliers and businesses.
Demolition and decommissioning specialist DSM said it had extensive experience in the decommissioning of steel structures in sensitive locations across the UK and the new plan would see it positioned as the leading onshore decommissioning company in Scotland.
With a growing number of North Sea oil and gas fields heading towards the end of their production lives, combined with the falling oil prices, decommissioning has presented a major economic opportunity for Scotland.
Industry analysts estimate that 144 rigs will be decommissioned between 2019 and 2026, accounting for a spend of between $44 and $51bn.
Scottish First Minister Nicola Sturgeon wants to see Scotland play a leading role in the development of the decommissioning market.
Graham Crowe, of DSM, said: “We see the North Sea market – with its massive potential – becoming a major business stream for the company for years to come.
“Our vision is for the Lyness site to become the exemplar decommissioning facility for the North Sea.
“The substantial, long-term opportunity provided by decommissioning offers an economic driver to provide employment and community benefits to Hoy and the rest of Orkney for many years.”
After exploring a number of sites along the east and west coasts of Scotland, DSM identified Lyness as an ideal location because of its existing harbour and safe, deep water anchorage, combined with access to the oil and gas fields through Scapa Flow.
The design of the facility will be undertaken following an extensive consultation.
It is anticipated that a formal planning application will be made at the end of this year with the facility scheduled to open in 2018.
