Identification and Assessment of Delivery Models Boundary Conditions The workgroup identified that the assessments of delivery models, should be bounded as follows: Include Late Life operations (from 6 years pre-CoP) Specific discussion on scope is excluded Specific discussion on regulations is excluded Importantly, the did not focus on specific elements of the decommissioning workscope, but took a high-level view of execution and business models, which could be applied in one or more elements of the decommissioning work breakdown structure. Current Environment Where are we now? – The workgroup agreed the following characterisation of the decommissioning sector: Market Fragmented limited collaboration in scope – E&P and development approach Traditional approach to contracting – Lack of Technology investment and planning uncertainty of scope and timing – Lack of timely visibility of demand for Decom services lack of schedule clarity – Decommissioning lack of confidence and transparency in estimates and hence the – ‘size-of-the-prize’ Low experience level and learning slowly Tier 1's Dominate - barrier to new thinking, new ideas Risk approach focus on risk management, not risk allocation – This evaluation set the scene for a discussion around potential execution models, with a short, medium and long-term evaluation of success including the following (full listing in Appendix A): Short Term Medium Term Long Term Simplified contracting and risk Emergence of Accountability for allocation models decommissioning and Empowered supply chain Specialist decommissioning liability management Cost and schedule transparency companies transferred to dedicated Bundling and campaign Regulatory change to stimulate agencies approach market innovation Mature decommissioning Change in long-term liability supply chain management Contractual clarity and acceptance
Identification and Assessment of Delivery Models Boundary Conditions The workgroup identified that the assessments of delivery models, should be bounded as follows: Include Late Life operations (from 6 years pre-CoP) Specific discussion on scope is excluded Specific discussion on regulations is excluded Importantly, the did not focus on specific elements of the decommissioning workscope, but took a high-level view of execution and business models, which could be applied in one or more elements of the decommissioning work breakdown structure. Current Environment – Where are we now? The workgroup agreed the following characterisation of the decommissioning sector: Market Fragmented – limited collaboration in scope E&P and development approach – Traditional approach to contracting Lack of Technology investment and planning – uncertainty of scope and timing Lack of timely visibility of demand for Decom services – lack of schedule clarity Decommissioning – lack of confidence and transparency in estimates and hence the ‘size-of-the-prize’ Low experience level and learning slowly Tier 1's Dominate - barrier to new thinking, new ideas Risk approach – focus on risk management, not risk allocation This evaluation set the scene for a discussion around potential execution models, with a short, medium and long-term evaluation of success including the following (full listing in Appendix A): Short Term Medium Term Long Term Simplified contracting and risk allocation Empowered supply chain Cost and schedule transparency Bundling and campaign approach Emergence of models Specialist decommissioning companies Regulatory change to stimulate market innovation Change in long-term liability management Accountability for decommissioning and liability management transferred to dedicated agencies Mature decommissioning supply chain Contractual clarity and acceptance
mer-uk-dtf-delivery-capablity-contracting-and-execution-model-workshops-v1.docx