Assisting The Crown Estate’s due diligence of infrastructure on the seabed

Client: The Crown Estate
Asset type: Pipelines, renewable power generators and cables
Location: UKCS

Client background:

The Crown Estate is an independent commercial business, created by Act of Parliament, with a diverse portfolio of UK buildings, shoreline, seabed, forestry, agriculture and common land. The business generates valuable revenue for the UK government and over the last 10 years has contributed £2.4 billion to the Consolidated Fund.

Project:

The Crown Estate was performing due diligence of the potential risk arising from infrastructure, owners' default or insolvency.

How Lloyd's Register helped:

LR has a proven track record in assessing, quantifying and managing risk. To help The Crown Estate perform due diligence of the risks associated with decommissioning and residuals, we applied our engineering expertise in decommissioning, pipelines, renewables, survey, geoengineering, legislation and risk management.

We produced a comprehensive report that:

  • Reviewed legislation
    • Included research into, and a summary of, the legislation and industry guidance that shapes the current decommissioning regime.
    • Identified additional legislative, international convention and industry guidance that could influence decommissioning in the future.
    • Described the outcome of the application of UK decommissioning legislation and industry guidance to pipelines, renewable power generators, power cables and telecommunications cables.
  • Identified components
    • Identified pipeline types present on the UKCS and routing to shore.
    • Identified the key components installed as part of an Offshore Renewable Energy Installations (OREI) development.
    • Identified cable types installed.
  • Expected Decommissioning
    • Provided a prediction of the likely decommissioning activities, and resulting degree to which apparatus will be left in place, for Offshore Renewable Energy Installations (OREI), cables and for pipeline sections from Mean High Water Mark (MHWM) out to 12nm offshore.
  • Identified Residuals
    • Identified which components, or parts of components could remain post decommissioning.
    • Reviewed long term monitoring plans.
  • Assessed Risks
    • Delivered expert insight into the factors that influence the decisions to remove or leave in-situ components during the decommissioning process.
    • Subsequently, defined the risks that may be presented by residual infrastructure.
    • Summarised how liabilities for risks are handled under the current legislation and guidance.

Results:

We helped The Crown Estate's due diligence of the risks associated with decommissioning and residuals.

Benefits:

  • Quantified risk
  • Increased stakeholder confidence

Client testimonial:

"The report is comprehensive and gives us a great technical insight to help us manage our portfolio".
Laurent Defraeye, Commercial Analysis Manager, The Crown Estate.

Decommissioning services for oil and gas

The move from late life management to the decommissioning of assets can be a daunting prospect, requiring robust planning. Lloyd's Register can help you navigate the complexities of this stage of your operations.

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