Veolia Awarded UK Gas Decommissioning Contract

French firm Veolia’s UK subsidiary said January 10 it and partner Peterson have been awarded two platform decommissioning contracts for recycling at their facility in Great Yarmouth in eastern England. The work is expected to begin in spring 2017 when the platforms arrive onshore.

The contracts include the onshore receipt and disposal of offshore materials and several assets for a major gas producer. Neither the producer, names of assets, nor the value of the contract were disclosed in Veolia's statement. Work will cover disposal options for a number of production complex platforms, and surrounding satellite platforms, located around 40 miles off the coast of Great Yarmouth.  

Veolia and Peterson said June 2015 they would invest in a platform-breaking and recycling yard at Great Yarmouth to support the southern North Sea.

On January 9, the Financial Times and The Times reported that British taxpayers face a £24bn ($29.3bn) bill for decommissioning oil and gas fields in the North Sea, according to latest estimates from consultancy Wood Mackenzie. It’s an issue facing Britain's neighbours too. Denmark’s Tyra offshore field, which processes 90% of the country’s gas production, looks set to have its decommissioning brought forward to 2018-19.

Mark Smedley