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Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Rigorous decommissioning decision making with strong stakeholder engagement using comparative assessment

Paul L. Gordon A D , Edward H. Poot B and Grace S. O’Connor C
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A Catalyze APAC Pty Ltd, GPO Box 4364, Sydney, NSW 2001, Australia.

B Catalyze APAC Pty Ltd, PO Box 5566, Wellington 6145, New Zealand.

C Catalyze Ltd, 42 Main Road, Colden Common, Hampshire, SO21 1RR, United Kingdom.

D Corresponding author. Email: paulgordon@catalyzeapac.com

The APPEA Journal 59(2) 591-595 https://doi.org/10.1071/AJ18276
Accepted: 12 March 2019   Published: 17 June 2019

Abstract

Improving the robustness of decommissioning decision making will provide greater confidence in the decision and ensure stronger commitment to its execution. This can be achieved by putting some key principles into practice, including comparing a wide range of options against each other using a ‘decision model’ and actively engaging stakeholders in the decision process. Comparative assessment (CA) is a helpful approach to supporting robust decision making. Implementing CA through multi-criteria decision analysis (MCDA) and decision conferencing is a powerful and proven way of putting such principles into practice. MCDA and decision conferencing involves ‘modelling’ the decision by articulating all outcomes (benefits, risks and costs – intangible and tangible) as a set of criteria and using a facilitated stakeholder group to evaluate options against one another. The group ‘scores’ options against the criteria, weights the criteria and then reviews the results, leading to a shared understanding of the issues and commitment to the way forward. CA has been widely used outside the oil and gas (O&G) sector for robust decision making; for example, the Royal New Zealand Airforce used CA to agree to the best solution for replacing their advanced pilot training capability. This led to clear, confident support for the preferred solution by the Treasury, and ultimately, cabinet ministers. CA is now starting to be used to support O&G decommissioning decisions, and one example is the use of CA by Shell and ExxonMobil to agree on the best course of action for decommissioning the storage cells of the Brent Delta platform.

Keywords: alternative, benefit, cost, decision, decision analysis, decision conference, decision modelling, MCDA, multi-criteria decision analysis, multi-stakeholder, option, options analysis, options evaluation, process, risks, social process, trade-offs, value.

Paul Gordon is CEO and Technical Director of Catalyze APAC. He is a highly accomplished business leader with over 15 years’ experience in consulting. He has worked in a wide range of sectors, including extensive work over the past 10 years with the defence sector in Australia, NZ, the UK and elsewhere. Paul has facilitated many key decision points for major programmes and strategic planning initiatives. Paul has a Master’s degree in Engineering (Information Engineering), from the University of Southampton, UK and a Certificate in Advanced Decision Skills, Facilitation and Analysis from the London School of Economics, UK. Paul has led senior client engagements with many large organisations in Australia and New Zealand, including the Australian Defence Force, the Department of Finance, the New Zealand Defence Force, the New Zealand Department of Conservation, Thales Australia, 3M, Woodside and Shell QGC.

Edward Poot has worked in, or with, the public sector for his entire career and has spent the last five years at Catalyze APAC primarily in New Zealand’s public sector in a wide variety of departments and agencies. Edward facilitates key decision points for major programmes and strategic planning activities and has previous work experience in government central agencies and ministers’ offices. Edward has a Master of Arts (dist.) in International Studies, Kings College, University of London, 2007, a Master of Public Policy (dist.) Victoria University, 1998, a Master of Science in Physical Geography, University of Auckland, 1988 and a Certificate in Co. Direction, New Zealand Institute of Directors, 2012. Edward has led senior engagements with many organisations in New Zealand, including the New Zealand Defence Force, Police, Ministry of Justice, Education Payroll, Department of Conservation, GCSB, Civil Aviation Authority and Victim Support.

Grace O’Connor is a Consultant at Catalyze Consulting UK. Her main roles include process design, data analysis, requirements gathering and tool design. She combines strong analysis skills developed in scientific research with a broad base of consulting experience and enjoys supporting organisations in applying best practice techniques to their portfolio management. Grace is a certified practitioner of Management of Portfolios and has recently worked to help embed project, programme and portfolio management at Army HQ. Grace has a PhD and MSc in Astrophysics.