The offshore oil and gas sector has been greatly affected by lower oil and gas prices, which has led to production being stopped at a number of wells and platforms, as lifting costs exceed revenues.
Decommissioning experience is very limited both with operators and extant contractors, leading to significant uncertainty about the future.
Struan Upstream can take advantage of uncertainty in the sector by taking ownership of production licences and facilities up to five years prior to Cessation of Production (CoP), producing oil and/or gas for the last years of the assets useful producing life, extending the life where economic and then decommissioning the facilities.
Struan Energy has extensive risk reduction and decommissioning expertise gathered not only from offshore oil and gas, but also from coal, nuclear and chemical plant.
The Struan Energy team have a great deal of E&P operations and decommissioning experience and have identified opportunities to maximise revenue through tight control of Opex and Abex. The company is currently in negotiation with a number of North Sea asset owners in order to identify and acquire producing assets that are nearing the end of their productive life and from which value can be realised through cost reduction.