Peterson, an international energy logistics provider, in partnership with Veolia, the UK’s environmental solutions provider, has today announced a £1 million ($1.6 M) investment in the development of a new decommissioning facility in Great Yarmouth, UK.
According to the press release, the new site in Great Yarmouth Port, operated with joint venture partner Veolia, and developed in cooperation with the Port, and with support funding from NewAnglia LEP, will provide operators in the Southern North Sea (SNS) with access to a full service decommissioning facility and Veolia-Peterson’s expertise and experience.
The investment, announced today, (June 17) at EEEGR’s (East of England’s Energy Group) Westminster reception, will create a facility located in the western terminal of the recently developed Outer Harbour at Great Yarmouth port, enabling topside, jackets and subsea equipment to be off loaded for dismantling and recycling.
The two companies say that this will provide operators with a facility within easy reach of the SNS thus minimising the risk and costs associated with transporting infrastructure. Due to be operational in July 2015, Veolia-Peterson expects to create up to seven new jobs initially, with this expected to increase in line with project requirements and market demand.
James Johnson, Decommissioning Manager, Peterson said, “As recently highlighted by industry body Decom North Sea, costs for decommissioning North Sea offshore assets over the next decade are forecast to be around £14.6billion. We have a real opportunity, working in collaboration with our partners, to establish Great Yarmouth as the centre for decommissioning for the SNS, delivering comprehensive, safe and cost effective decommissioning solutions.”
Ian Williams, Industrial Services Director at Veolia said: “This new decommissioning facility allows us to provide the oil and gas industry an even larger portfolio of facilities across the whole North Sea. Through our established track record and unrivaled experience in compliance and reuse we can help customers exceed their environmental targets.”
Peterson was awarded £70,000 from New Anglia LEP’s flagship Growing Business Fund, to help establish the new facility. The centre, based at the Outer Harbour, is located on one of six sites on the Great Yarmouth and Lowestoft Enterprise Zone.
Chris Starkie, managing director of New Anglia LEP said, “We are extremely pleased to have played a part in securing this new project for our vitally important energy coast. Our funding, together with future private investment from Peterson, will launch Great Yarmouth and surrounding areas as a major new hub for decommissioning activity in the Southern and Central North Sea, a significant emerging sector estimated to be worth £125m in the next ten years.”
Eliza O’Toole, Deputy Chair of Great Yarmouth Port commented, “We are delighted that Peterson chose to locate their new facility in the Outer Harbour and to both build on, and to take advantage of, the deeply established expertise both in the Port and its hinterland in servicing the SNS. The Port congratulates Peterson on their initiative and investment and welcomes this latest addition to the Port’s ongoing central role in supporting the SNS for decades to come.”
Colleen Walker, Chair of Norfolk County Council’s Economic Development sub-committee said, “This is a significant deal for both Eastport and for Great Yarmouth, and I am delighted the County Council has been able to provide key guidance in order to help this deal come to fruition. Decommissioning work will now take place at Eastport for many years to come – boosting employment opportunities locally, and reinforcing the East of England Energy Zone as the premier location for the energy sector.”
Cllr Graham Plant, the leader of Great Yarmouth Borough Council, said: “The fact that Peterson and other businesses continue to invest and expand within the borough – already a global capital for the energy sector – shows confidence in the borough, its expertise, supply chain and port facilities.
“The borough council was a key partner in the development of the Outer Harbour and in facilitating Veolia-Peterson’s decision to base its decommissioning operation there. As we celebrate 50 years of offshore operations from Great Yarmouth, I am delighted our partnership work is helping to create jobs, especially in this new, growing area of decommissioning.”