The Offshore Partners is the initiator of the Green Octopus industry alliance
The consortium, comprises the Offshore Partners, KCI the Engineers, PricewaterhouseCoopers (PWC), Fraser Well Management and TNO. Green Octopus is an independent collaboration that is dedicated to decommissioning and re-use, with the appropriate capabilities right across the value chain.
The consortium provides a end-to-end solution in decommissioning. The integrated approach structures the process, manages the activities and enables operators to take the right decommissioning decisions. This includes technical solutions for well P&A as well as removal and recycling of infrastructure combined with a new developed contract strategy that allows for better fiscal and financial planning.
The solution works across four axes throughout the entire value chain:
- cost-savings and fiscal planning;
- synergetic advantages and increased buying power;
- risk mitigation and reduction of uncertainties;
- reduction and relief of liabilities.
This way we offer the operators a robust solution for cost-effective decommissioning in both the planning and structuring of the project, as well as during the operations and monitoring afterwards. However, in the run-up towards decommissioning the possibility of re-use in the renewable energy sector (CCS / Hydrogen) is assessed as well.
Green Octopus differentiates itself by being independent, as we are not acting as decommissioning contractor or equipment owner. Therefore, we can engineer the best technical and cost-effective methodology in decommissioning from the operators’ perspective and reach economies-of-scale on the basis of technical similarities, without having a specific preference for particular ‘own’ equipment.
Secondly, for reasonable economies-of-scale, collaboration between operators is required, but we see that operators are generally reluctant to share the often-sensitive information. Through Green Octopus we can anonymise data provided by the different operators to use in multi-asset campaigns whilst taking the interests of the parties into account. Thirdly, we structure the projects through a novel contractual framework that provides the proper financial and fiscal incentives, thus increasing the willingness to cooperate through cost advantages and the optimisation of tax, legal, capital and cash structure. Looking further at the financial aspects, our approach will lead to a thorough and trustworthy plan, which will make financing from third parties easier. Our systematic and holistic approach to the asset portfolio results in cost reduction and more effective mitigation of technical, financial and safety-related risks, as opposed to optimising each operator’s own portfolio. This is positive, not only for the operator, but for the Dutch tax-payer as well, as the Dutch government is a shareholder in many Dutch offshore assets.
Green Octopus is consortium lead by The Offshore Partners that provides a end-to-end solution in decommissioning for E&P Operators. The Offshore Partners provide for Project Management, Engineering, Financial and Fiscal Project Planning and Supervision during execution.
