What is Phoenix Decom and who does the business support?
Phoenix Decom was set up to support UK oil and gas operators via their chosen vessel companies in receiving, processing and disposing of their subsea infrastructure from decommissioned assets.
Phoenix Decom is headquartered in Aberdeen but has a base in Shetland, operating from Lerwick Harbour decommissioning North Sea infrastructure. Managing director Craig Smith explains why investing in Shetland was the right decision and why there is more potential work to come.
How long has Phoenix been operating in Shetland and what attracted the business to the islands?
I have had a relationship with the supply chain, particularly the port authority, for several years including during my last employment. I pushed the previous company to take the plunge and invest in Lerwick due to its unique location for supporting the Northern North Sea assets.
When I started Phoenix, I knew that investing in Shetland would be one of my goals and I’m delighted to achieve this in a shorter timeframe than expected. This was down to the support from the port and the local supply chain who have made the transition far easier than it could have been elsewhere.
The experience in the islands is second to none, in my opinion.
This was down to the support from the port and the local supply chain who have made the transition far easier than it could have been elsewhere.
Shetland has a long association with the offshore energy industry. Does that deep experience and expertise put Shetland in a strong position to support the decommissioning of offshore installations?
Phoenix specialises in the waste side and with the abundance of experience in the islands, it puts Sheland in a very strong position to support the decom market.
Like other industries and other areas, the islands face the same challenge when sourcing good quality people to take on the current and future challenges.
With the decom work coming through the vessel companies, it must be recognised that if the asset/field is closer to the islands, then Lerwick will be the port that the vessel will want to offload at. If it sits closer to the mainland then the vessel would go to that port. There are many assets in the Northern part, providing opportunities for Lerwick and Shetland.
Phoenix Decom managing director Craig Smith. Phoenix Decom
As more projects need decommissioning, does that mean you anticipate working in Shetland for years to come?
Decom will be a growing market for many years, and our initial commitment to our lease is 11 years. That gives an idea of where we believe this will go.
How does the infrastructure and supply chain in Shetland support Phoenix and its staff to do the job effectively?
I have said openly at conferences when other ports have been present, that Lerwick in my opinion, of course, has challenges due to the location regarding weather and final disposal routes.
However, the assistance and support that is given in Lerwick lead the way in my view and that of my staff. Other ports don’t have the community feel and involvement of Shetland and particularly Lerwick.
The assistance and support that is given in Lerwick lead the way in my view and that of my staff. Other ports don’t have the community feel and involvement of Shetland and particularly Lerwick.
Shetland’s dynamic business community is thriving. What is it like to be part of that?
I am just glad that I’ve been lucky enough for the port to believe in what I see for the future of decom, especially in the Lerwick area.
I still see so many opportunities passing the islands and heading to the mainland when more could be done in Shetland. I’m hoping I can continue that discussion with the local supply chain to see more work done locally.
What is it like working in a place, that also boasts such spectacular locations, amazing wildlife, and vibrant communities?
Unfortunately, I haven’t had the chance to take the entire island in, yet, as it’s always been a case of working on the jobs. However, my colleague has had time during the latest projects to take in the flavour of the islands by visiting different parts of the Mainland and smaller islands. I plan to take my family up to experience this.
Why invest in Shetland? Discover more about the islands' entrepreneurs and skilled workforce by clicking here.
'Positive development'
Lerwick Port Authority developed a 2,200 square metre pad, built by Shetland company Hunter & Morrison, for Phoenix Decom's use, at the port's Greenhead Base.
Speaking during the construction phase, Port Authority Chief Executive, Captain Calum Grains, said: “It’s another positive development to have a new decommissioning contractor positioned at Lerwick, with the prospects for increasing activity in vessel arrivals and materials processed.”
It is the third licensed quayside decommissioning pad with environmental permits at the port, reinforcing Lerwick’s role as a leader in the market for decommissioning oil & gas structures from the North Sea and Atlantic.
Captain Calum Grains (left) and Phoenix managing director Craig Smith. Photo: LPA