UK-based demolition company DSM disclosed plans to create a facility to decommission redundant oil and gas rigs in Orkney, creating new oil and gas jobs.
According to media reports, the Birmingham-based firm is hoping to use Lyness on Hoy as a new base, which should create new jobs for local contractors and more income for the Orkney Islands Council that owns the site.
“This project has the potential to create significant employment, a range of business opportunities for local companies, and considerable economic benefits for Orkney as a whole,” Orkney Council Convener Steven Heddle told a local newspaper.
Oil and Gas Jobs Boost with North Sea Decommissioning
The company held discussions with the Orkney Islands Council (OIC) and visited Lyness to carry out an initial assessment.
Following the council’s agreement DSM can carry out further exploratory work to develop proposals and determine potential business for the facility, the company informed.
DSM Demolition’s Plans for Decommissioning Site in Orkney
“There will be a growing demand for oil and gas decommissioning facilities in the years ahead. Lyness and the natural deepwater harbour of Scapa Flow, with their location close to the North Sea, are ideally located to serve as a potential base for work of this kind,” the councillor stated further during the meeting.
Decommissioning Brings New Jobs to Orkney
DSM spokesman Graham Crowe told the BBC that rigs could be floated to Lyness after coming out of the North Sea and would then be brought onshore and reduced in parts before heading off to other oil fields, or could be cut up for scrap or recycling.
The importance of the decommissioning sector as become undeniable as more and more fields reach the end of their production lives.
Decommissioning of oil and gas facilities in the North Sea is expected to cost tens of billions of pounds and create hundreds of new jobs over the next quarter of a century.
The Brent field is one of the main examples of major decommissioning projects, while Aberdeen is also expected to become an important hub for the decommissioning sector in the North Sea.