Odfjell Technology has opened a new workshop in Portlethen to meet decommissioning demand.
Odfjell Technology has taken up a lease on an Aberdeenshire workshop to meet the growing demand for plug and abandonment (P&A) activity.
The business told Energy voice that a “significant investment has been made in the implementation of new fishing and remedial and P&A product line.”
The firm also claimed that the new site is kitted out with “modern, fit-for-purpose infrastructure”.
Stuart Sutherland, Odfjell Technology country manager for the UK, said: “We are proud to invest in the infrastructure, technology and people that support our clients to deliver safe, efficient and sustainable projects across the North Sea.
“This expansion reflects our bold ambition and unwavering commitment to delivering the highest standards of service through a blend of proven expertise and innovative solutions.”
The new facility will have a headcount of 23 workers, with Odfjell Technology employing 478 both on and offshore across the UK.
In 2024, the business announced it moved into Aberdeen’s Prime Four Business Park alongside its sister company Odfjell Drilling. The move saw the firm relocate from the Granite City’s Bergen House in Altens.
Its headquarters spanned around 19,000 square feet on Prime Four’s lower ground floor, and at the time, Odfjell Technology said that its commercial relocation was Savills’ largest letting of 2023.
Odfjell must contend with P&A price flux
The firm said that its new Aberdeenshire workshop, located in the Badentoy Industrial Estate, will provide greater accessibility for its clients and partners.
In a company update, the firm said that the move “has strengthened its operational footprint in the North Sea”.
P&A is a hot-button topic within the UK energy market as the country’s production declines, and ageing infrastructure reaches the end of its life.
This year, analytics firm Westwood Global Energy forecast the UK will spend an extra £4.25 billion on shutdown activities due to stalled projects.
Westwood said that P&A activity in the UK will account for around half of the £20 bn-plus decommissioning bill set to come in the next decade.
Costs for such operations are set to climb to £4.06bn over the next ten years due to higher offshore rig day rates, Westwood argued.
Odfjell Technology claims market remains ‘buoyant’
Despite forecast price inflation, Sutherland described the market as “buoyant” has his firm hears “encouraging noises” from the North Sea Transition Authority and the trade body Offshore Energies UK.
The Odfjell Technology boss also said that there are “high levels of tender activity” in the market.
“However, the pace at which contracts are being awarded remains slower than expected,” Sutherland added.
“This lag in execution is a critical issue holding back progress and, ultimately, the supply chain’s ability to respond effectively.”
He argued that a core challenge for the P&A market is the “fragmentation” of multiple projects.
“This makes it challenging for companies like ourselves to commit to the advanced technologies and specialised equipment that would enable more efficient and cost-effective P&A operations, he explained.
“The lack of predictability and campaign planning at scale restricts innovation that would benefit the whole industry.”
Operators must collaborate to see ‘the full potential of the P&A market’
Sutherland said that “greater collaboration among operators is essential” if the industry wants to unlock the “the full potential of the P&A market”.
He called for firms to share details on capacity, timing, and project planning to “help de-risk investments” while ensuring that the right people are available when needed.
He continued: “There’s a real opportunity here for operators to align on timelines and work packages, which would build confidence in the market, strengthen the case for adoption of new technologies and create more sustainable conditions for the supply chain.
“Looking ahead to 2026, there is growing recognition of the need for a more coordinated approach to P&A which has reaffirmed our decision to invest in this new facility to support our North Sea operations.”
