The Courier & Advertiser (Angus and Dundee)
Veolia picks up Buchan Alpha decom contract
NORTH SEA: Multi-million-pound deal will see vessel dismantled at Scottish yard
A multi-million-pound decommissioning contract for a major North Sea oil production plant has been handed to a Shetland-based yard.
Repsol Sinopec Resources UK has awarded the Buchan Alpha dismantling contract to Veolia’s Dales Voe site at Lerwick in a move that will create 35 local jobs.
The semi-submersible floating production vessel, which was originally a drilling rig, ceased operating last month.
It is one of the oldest and most productive platforms in the North Sea, having operated for 36 years and been responsible for the recovery of more than 150 million barrels of oil during its operational lifetime.
Repsol Sinopec declined to state the value of the decommissioning scheme when questioned yesterday.
However, the project will take 17 months to complete and the final bill is expected to run into the multi-millions.
“Buchan Alpha has made a huge contribution to the UK economy throughout its life, producing more than three times the volume of oil that was originally predicted,” Bill Dunnett, managing director of Repsol Sinopec Resources UK, said.
“We are pleased the decommissioning phase will create further sustained value for the UK supply chain and additional employment for Shetland, building a new model for full facility decommissioning in the UK.”
The project follows the recent lift and removal of Shell’s giant Brent Delta platform from its North Sea base.
It is being dismantled at Able’s Seaton Port yard on Teeside.
A new public private partnership, Dundeecom, has recently been established in Dundee in the hope of making the city a major centre for the decommissioning industry.
Upgrading works costing £10 million are now being carried out at Dundee Port to ensure the docks have the heavy lift capability and hardstanding needed to be a major player in the decom sector.
Veolia UK and Ireland senior executive vice-president Estelle Brachlianoff said: “We will be targeting a recycling rate of over 98% at the new Dales Voe decommissioning facility in Lerwick where we will work closely with our partners, Peterson and Lerwick Port Authority to boost the local economy.”