Major Oil Rig Decommissioning Plans for Orkney

DSM Demolition, one of the UK’s leading demolition and decommissioning companies, has unveiled plans to create 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.

DSM – headquartered in Birmingham – has extensive experience in the decommissioning of steel structures in sensitive locations across the UK and, with the Lyness site, it intends to position itself 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 $51 Billion – and First Minister Nicola Sturgeon has already said that ‘Scotland can play a leading role in the development of the decommissioning market’.

DSM’s Graham Crowe said: “Our vision is for the Lyness site to become the exemplar decommissioning facility for the North Sea.

“The project has potential to create a significant number of local jobs and that local companies will secure further spin-off benefits from supplying support services.

“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.

“For DSM, with over 25-years experience in decommissioning work, we see the North Sea market – with its massive potential – becoming a major business stream for the company for years to come.”

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 extensive consultation with potential business clients in particular, oil field operators.

DSM aims to work closely with Orkney Island Council, local businesses and the Hoy and wider Orkney community to develop the concept.

All deconstruction works will be undertaken in a safe and environmentally friendly manner that protects local natural and built heritage sites – and DSM is committed to ensuring all procedures follow best practice standards.

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.