Birmingham-based DSM Demolition has officially unveiled its plans to create a major development site on Orkney to take advantage of the emerging boom in North Sea oil and gas decommissioning work – a market estimated to be worth up to $50 billion by 2050.
If approved, the proposed facility at Lyness, on the east coast of Hoy, has the potential for a significant local jobs boost – employing scores, if not hundreds, of new workers – with further economic benefits to the area to come through the use of local suppliers and businesses.
It is anticipated that a formal Orkney planning application will be made at the end of this year with the facility scheduled to open in 2018 after DSM considered – and rejected – a number of other ports, including Aberdeen harbour.
With a growing number of North Sea oil and gas fields heading towards the end of their production lives, combined with the falling oil prices, decommissioning has presented a major economic opportunity for Scotland.
Industry analysts estimate that 144 rigs will be decommissioned between 2019 and 2026, accounting for a spend of between $44 and $51 Billion. Scottish First Minister Nicola Sturgeon has already said that Scotland can play ‘a leading role’ in the development of the decommissioning market.
DSM’s Graham Crowe said: “Our vision is for the Lyness site to become the exemplar decommissioning facility for the North Sea.
“The project has potential to create a significant number of local jobs and that local companies will secure further spin-off benefits from supplying support services.
”With over 25-years experience in decommissioning, we see the North Sea market – with its massive potential – becoming a major business stream for DSM for years to come.”