Major Decom Players Combine to Create Platform for Next Generation Decommissioning

Three leaders in the Oil and Gas industry’s decommissioning sector have launched a new company: Fairfield Decom. Headquartered in Aberdeen, this new platform combines the knowledge of a highly experienced operator with the expertise and capabilities of the world’s leading offshore decommissioning contractors. Through this bold step, a unique late-life operations and decommissioning operator is created to provide an all-encompassing solution for ageing offshore oil and gas assets, primarily in the UK Continental Shelf (UKCS).

Fairfield Decom represents a major leap towards a more innovative and sustainable offshore decommissioning industry where customers will benefit from a new business model designed to reduce complexity and the number of contractual arrangements and deliver operational efficiency, cost-effectiveness and predictability, whilst contributing to the 35% cost reduction targets set by the Oil and Gas Authority (OGA). Fairfield Decom’s customers will have direct access to the expertise and assets of Decom Energy, Heerema Marine Contractors and AF Offshore Decom, with Fairfield Decom having the capability to manage, integrate and then execute end-to-end late life operations and decommissioning activities. This is what Fairfield Decom calls ‘next generation decommissioning’.

Heerema has over 50 years of experience in the offshore oil and gas and renewable industries, transporting, installing, and removing all types of offshore facilities, including fixed and floating structures in shallow, deep, and ultra-deep waters. AF Offshore Decom, a subsidiary of the Norwegian contracting and industrial group AF Gruppen, is a specialised contractor that has been developing and executing solutions for the removal and recycling of offshore installations for the past 15 years. Decom Energy is the first fully outsourced end-to-end, late-life and decommissioning operator in the North Sea with its subsidiary, Fairfield Energy, well-advanced in the decommissioning of the Greater Dunlin Area.

Graeme Fergusson, Managing Director of Fairfield Decom comments ”We have built a strong business relationship with Heerema and AF Offshore Decom as contracting partners in the Dunlin topsides removal and as alliance partners for integrated decommissioning business opportunities. The three companies have unrivalled experience in decommissioning and there is great alignment in terms of our responsible approach to business and our core values. Our operator background means that we understand what the E&P community wants – an integrated solution that is technically robust, commercially creative and that will deliver a safe, cost-effective and environmentally-sound solution.”

In support of the new venture, Koos-Jan van Brouwershaven, Heerema CEO comments “Heerema is proud to be part of this unique new venture. Three leaders in the global decommissioning market have joined forces, providing a smarter, cost-effective and more sustainable approach to decommissioning and recycling offshore structures. As an experienced offshore contractor, Heerema is continuously seeking opportunities to further strengthen our position in the international offshore market through innovation, pro-activity and reliability. Fairfield Decom is a great example of how we are achieving those ambitions.”

Highlighting the importance of the new company, Bengt Hildisch, Managing Director of AF Offshore Decom comments “AF Offshore Decom is very pleased to collaborate with partners who are aligned with our goals.  The establishment of Fairfield Decom represents an important step change in the decommissioning business model. It responds to the call from the UK Regulator, the Oil and Gas Authority, to create new business delivery models to reduce complexity to support the next generation of decommissioning.”

Fairfield Decom will not only access the expertise of the three companies but will rely heavily upon local talent and the supply chain in Scotland to support its business. Fairfield Decom is determined to be at the forefront of the drive to establish a thriving decommissioning hub in Scotland.  This ensures that it will not only be a major player at home, but will have the potential to access a global decommissioning market estimated to be worth more than $80 billion over the next ten years. What is clear is that those companies that are successful in decommissioning in the North Sea will have a competitive advantage in the global market.  It is Fairfield Decom’s ambition to be one of those companies.

* The venture was subject to the approval of the Norwegian Competition Authority.