An aging asset doesn’t mean unmanageable, unprotable and inoperable. There is still potential to be realized from the U.K. Continental Shelf (UKCS) despite the challenges of the current climate. In terms of oil alone, it is estimated there are about 25 Bbbl to be recovered. Global demand for energy continues to escalate, and fossil fuels will carry on contributing to the mix.

The U.K. government also is committed to supporting the sector, as has been seen from its positive response to Sir Ian Wood’s 2014 industry report. First, however, there are some signicant hurdles to overcome, especially around the use of aging infrastructure approaching or operating beyond its intended design life.

The issue could not be more pressing for a sector that now nds itself in an era of low prices. According to Oil & Gas UK’s latest report, revenues fell to just more than $36 billion last year, the lowest since 1998.

Despite the familiar brutal conditions of the North Sea, the sector is in new territory because not only has infrastructure surpassed its original eld life following successful asset life extension, but late life operations, mothballing and decommissioning are now a focus. To compound matters, oil and gas companies in the North Sea have assets in their portfolios that are operating at various stages of their life cycle, requiring each asset to be managed on an individual basis.

There is no denying this has led to a challenge in how operators bridge the gap between late-life operations and cessation of production. Decommissioning is expensive in the current climate, with the total decommissioning expenditure on offshore assets over the next decade forecast to be $22 billion—$2 billion per annum, according to the Oil & Gas Decommissioning Insight 2014 report. During this phase of the life cycle, production gains shouldn’t be ignored as there are reserves that can be recovered; however, asset management techniques must be tailored and appropriately applied to ensure cost-effective operating.

Sir Ian Wood’s report and documents, such as the Health and Safety Executive’s “The Aging and Life Extension Inspection Program,” promoted awareness of the issues and risks associated with operating aging offshore plants. Independent technical authorities have an important role to play in promoting a change in the industry mindset to one of proactive late-life asset management.

Most operators are still resourced for elds operating at peak capacity and apply historic operating models; they haven’t reduced stafng levels or adjusted inspection and maintenance regimes in line with declines in production. This is a common major challenge in managing late-life asset operations.

With huge nancial investment involved in a marketplace of tighter margins, identifying where best to concentrate inspection, maintenance and other core operational activities will be vital to success. A commitment to late-life asset management proved hugely benecial in a number of high-risk, capital-intensive sectors such as aviation and transport. Such an approach finds innovative ways to maintain operations by focusing on cost delivery with limited investment to maximize resource recovery from aging assets and reduce risks. Key to this is identifying the critical assets and equipment that are required to achieve both prot and safety objectives and then determining how best to safeguard them.

The right strategies aside, the use of technology also will assist greatly. Software such as a fully integrated risk-based inspection solution can help address the issues caused by external factors such as corrosion, scaling and fatigue on an asset-by-asset basis, allowing operators to identify critical equipment, increase reliability and determine the optimum maintenance approach. In addition, better data management will help, translating an abundance of information into useful knowledge to support informed decision-making.

It is clear that industry conversations and collaboration between operators, service companies, veriers and regulators must begin as soon as possible to realize the full value of the UKCS.

In devising solutions, it is important to recognize that every business is unique and that agendas vary between the different companies operating in the region. Despite the current climate, the North Sea will continue to contribute to the U.K.’s growing energy needs and bolster the U.K.’s economy.

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