Status of our work
Since the beginning of our initiative in 2017 we have actively engaged with operating companies in the North Sea and particularly seeked to convince Shell, Total and BP to form an alliance to test together our concept. They eventually chose to do it between themselves. We know that they are making progress and hope that they will reach a viable agreement. This demonstrates the relevance of our proposal and the effect of the relationships, which we initiated between the parties on this idea in the beginning.
We pursued in parallel the promotion of the Clean Transition concept with other companies and noted that it could rapidly gain the support of smaller operators, who would be ready to follow the trend, and of non operating shareholders who are looking for a more reliable solution for the future.
We worked closely with a few well established engineering companies to assess how they could respond to scope aggregation, how this could fit within their business development plans and envisage how we could collaborate in defining a common solution. We are pursuing this effort whilst we also recognize that contractors are essentially seeking to mirror what operators need and that, unless those needs change (e.g. like in the form of aggregated scope) they are hesitant to change ahead of an uncertain market. A few Decom dedicated enterprises emerged recently but there is no proof yet that this new offering has had any major influence on what the operators eventually do. They will need scope aggregation to give them the necessary scale to blossom and succed. Clean Transition seeks to enable this scale, which in turn would foster innovative supply solutions.
We developed also a closer relationship with the regulators, particularly with the OGA in the UK with whom we have shared our vision and our analysis of the “blockers of change” and recommended to increase shareholders’ awareness on the value at stake. We believe that Financiers can have a strong influence in shaping a solution, which shall mitigate Decom risks and meet legal and societal obligations at materially lower costs.