Innovative AI technology from Aberdeen promises to transform North Sea oil decommissioning, presenting significant savings and increased revenue potential.
- Developers at Rahd AI have created a pioneering platform utilising data from over 15,000 oil wells to lower costs and improve tax receipts.
- The initiative, backed by six major energy firms, could reduce decommissioning expenses by up to 35%, aiming to save the UK £10bn.
- A pilot in Australia has demonstrated viable cost savings, with UK implementation potentially far exceeding government targets.
- Rahd AI’s work is supported by governmental and industrial collaboration, promising further optimisation in decommissioning processes.
Rahd AI, a developer based in Aberdeen, is at the forefront of transforming data from more than 15,000 oil wells into a comprehensive platform. This platform, designed to lower decommissioning costs and boost tax receipts, could save an estimated £10 billion in decommissioning the North Sea oil fields. Six of the world’s major energy companies, including Equinor and TotalEnergies, are collaborating on this rapid implementation programme. The goal is to cut the UK’s decommissioning bill by up to 35%, a significant step forward for the government dealing with one of its costliest challenges.
Rahd AI is a brainchild of Ventex, an Aberdeen-based climate tech venture studio. The company is led by Jake Stride, an accomplished energy tech specialist with a history at Microsoft and current membership on the board of Subsea Energy Australia. The platform they have developed is built on an impressive dataset, the largest of its kind, consisting of validated information from 15,000 wells globally. Sources include environmental statements, field plans, and government data, all structured via Rahd AI’s proprietary system before being fed into a sophisticated language model. This model forms the basis for expansive decommissioning plans applicable worldwide.
The technology, hailed as ‘game-changing’ by CEO Jake Stride, is anticipated to become the industry standard for decommissioning. It encourages collaboration where insights and recommendations are contributed and anonymised for secure sharing. The collective effort seeks to illuminate pathways to reduced decommissioning costs across this extensive data network.
Initial tests in Australia have already shown a 10% cost reduction, a promising start that the UK’s Net Zero Technology Centre and energy giants such as TotalEnergies and ConocoPhillips plan to replicate. The UK government’s aim is a 10% reduction in costs by 2026 and a 35% reduction by 2035. However, with Rahd AI’s innovative approach, the target could be met as early as 2027, offering several billion pounds in extra revenue.
The North Sea Transition Authority estimates the decommissioning of the UK Continental Shelf could range between £40-46 billion by 2050. Since decommissioning costs are deductible when calculating tax liabilities, any reductions directly benefit taxpayers through increased tax receipts. The National Audit Office projects a £24 billion cut to tax receipts due to reliefs over the decommissioning duration. If Rahd AI hits their 35% saving target, this could translate into over £8 billion in additional tax income for the UK Treasury and a further £2 billion saved for energy firms.
Steve Gray from Ventex highlights the all-encompassing capabilities of a Rahd AI-driven plan, from scheduling to pricing and mitigating service and technology dependencies. Stuart McLeod, also a managing partner at Ventex, notes that expanding the data pool enhances the platform’s efficiency, underlining the importance of collaboration among energy companies and support from government bodies, both domestically and in Australia. The more data Rahd AI acquires, the better equipped it becomes to streamline decommissioning efforts.
The collaboration between industry and government facilitated by Rahd AI stands to significantly optimise decommissioning, yielding economic benefits for all stakeholders.
