First offshore structure arrives at new Veolia and Peterson Dales Voe decommissioning facility.

The Repsol Sinopec Resources UK, Buchan Alpha oil production vessel, weighing 12,000 tonnes, arrived safely in Lerwick, Shetland on 12/13 August. Decommissioning of the facility is being managed by Veolia and Peterson and is believed to be the first major North Sea floating production vessel facility to be disposed of in Scotland.

The Buchan Alpha oil production vessel has arrived safely in Lerwick, Shetland for disposal.

A semi-submersible moored floating production vessel, weighing 12,000 tonnes, Buchan Alpha was built in 1973 as a drilling rig and converted for production purposes in Stornoway between 1978-80. The vessel commenced production in 1981 from the Buchan field, located in blocks 21/1A and 20/5A, and has subsequently also produced the nearby Hannay field. Production ceased, as planned, on 12 May 2017 having produced around 148mm barrels of oil.

The contract for disposal was internationally tendered and awarded to Veolia working with their strategic partner in decommissioning, Peterson, who have a proven safety and environmental track record in the decommissioning of oil and gas assets. The work will be carried out at the Dales Voe site in Lerwick. Buchan Alpha is believed to be the first major North Sea floating production facility to be disposed of in Scotland.

Scottish Government Minister for Business, Innovation and Energy, Paul Wheelhouse, said:

Off-station work on Buchan Alpha has been ongoing, with the primary objectives of cleaning, and reducing topsides weight in preparation for tow. It will initially be moored offshore Lerwick in deeper water where the thrusters will be removed to reduce the draught, allowing it to be moved to the quayside within the next few weeks.

Veolia will then begin the dismantling of the steel structure to maximize the recycling rate with the aim of achieving 98% recycling rates.

Estelle Brachlianoff, Senior Executive Vice-President Veolia UK & Ireland said:

"We are expecting a growth in the decommissioning market and the Buchan Alpha contract is a significant example of this type of the potential expansion of this sector in Scotland. These offshore assets will now be recycled to give them a second, third or even fourth life creating jobs and investment in the local economy.”

Sandra Laurenson, Chief Executive of Lerwick Port Authority, added:

“The arrival of Buchan Alpha is another significant milestone following more than a decade of decommissioning at Lerwick where Buchan is the largest project yet. Recent investment, extending the Dales Voe quay and laydown, and progressing plans for an ultra-deep-water quay as the UK solution to future requirements reflect our commitment to capability and competitiveness as a leader in the emerging decommissioning market.”

• Repsol Sinopec Resources UK is an oil and gas exploration and production company headquartered in Aberdeen and operating exclusively in the UK North Sea
• It is a joint venture between Repsol SA and Addax Petroleum UK Limited, a wholly-owned subsidiary of China Petrochemical Corporation (Sinopec Group). It arose from the acquisition, in 2015, by Repsol SA, of the global assets of the former Talisman Energy Inc, including its 51% equity interest in the joint venture, previously called Talisman Sinopec Energy UK
• Repsol Sinopec Resources UK has interests in 52 fields, of which it operates 41, on the UK Continental Shelf, with 12 offshore installations and two onshore terminals