Co-creation of knowledge – an effective mechanism for managing decommissioning stakeholders
Aaron Tung
+ Author Affiliations
- Author Affiliations
Curtin University Oil and Gas Innovation Centre, Technology Park, Bentley WA 6102, Australia. Email: aaron.tung@postgrad.curtin.edu.au
The APPEA Journal 61(1) 48-57 https://doi.org/10.1071/AJ20026
Submitted: 18 November 2020 Accepted: 8 February 2021 Published: 2 July 2021
Abstract
Despite the fact that it has been 26 years since the events of Brent Spar, stakeholder impacts are still continuing to affect the performance of oil and gas decommissioning projects. If stakeholders are not well managed, not only can they have devastating consequences on project costs and schedules, but there may also be further social and environmental implications as well. On the flip side, if organisations can get it right, stakeholders can also bring about various benefits. An ongoing research project to enhance project managers’ understanding of the United Kingdom and Australian decommissioning landscapes found that knowledge creation through interactions between organisations and stakeholders has brought about benefits to various decommissioning projects, including the Maureen, Miller, and Brae decommissioning projects. The concept of co-creation of knowledge has been mentioned in many academic works to be an effective mechanism for managing stakeholders in the field of sustainable development, product development, and healthcare. However, the explicit links between co-creation of knowledge and decommissioning have yet to be drawn. This article proposes that co-creation of knowledge be adopted as a best practice to manage decommissioning stakeholders. By actively co-creating knowledge with stakeholders and extending the existing body of knowledge in decommissioning, the extent of alignment and trust between organisations and stakeholders are strengthened, creating long-term relationships that greatly improves the probability of stakeholder acceptance and approval.
Keywords: co-creation of knowledge, corporate social responsibility, decommissioning, management, oil and gas, organisation management, programme management, project management, projects, stakeholder engagement, stakeholder management, stakeholders, strategic management, sustainable development.
Aaron Tung is a joint PhD graduate from the University of Aberdeen and Curtin University under the prestigious Aberdeen-Curtin Alliance programme. Aaron’s research lies in the field of oil and gas decommissioning and focuses on the creation of stakeholder-oriented critical paths for offshore decommissioning projects in United Kingdom and Australia, in order to guide the management of future decommissioning projects. Aaron also has a Bachelor’s degree in Petroleum Engineering from Curtin University and recently completed an internship with Woodside Energy. Aaron is also an active member of the Society of Petroleum Engineers. |
References
Aarikka-Stenroos, L., and Jaakkola, E. (2012). Value Co-Creation in Knowledge Intensive Business Services: A Dyadic Perspective on the Joint Problem Solving Process. Industrial Marketing Management 41, 15–26.| Value Co-Creation in Knowledge Intensive Business Services: A Dyadic Perspective on the Joint Problem Solving Process.Crossref | GoogleScholarGoogle Scholar |
Ackermann, F., and Eden, C. (2011). Strategic Management of Stakeholders: Theory and Practice. Long Range Planning 44, 179–196.
| Strategic Management of Stakeholders: Theory and Practice.Crossref | GoogleScholarGoogle Scholar |
Ackermann, F., and Alexander, J. (2016). Researching Complex Projects: Using Causal Mapping to Take a Systems Perspective. International Journal of Project Management 34, 891–901.
| Researching Complex Projects: Using Causal Mapping to Take a Systems Perspective.Crossref | GoogleScholarGoogle Scholar |
Ahiaga-Dagbui, D. D., Love, P. E., Whyte, A., and Boateng, P. (2017). Costing and Technological Challenges of Offshore Oil and Gas Decommissioning in the UK North Sea. Journal of Construction Engineering and Management 143, 05017008.
| Costing and Technological Challenges of Offshore Oil and Gas Decommissioning in the UK North Sea.Crossref | GoogleScholarGoogle Scholar |
Alsudiri, T., Al-Karaghouli, W., and Eldabi, T. (2013). Alignment of Large Project Management Process to Business Strategy: A Review and Conceptual Framework. Journal of Enterprise Information Management 26, 596–615.
| Alignment of Large Project Management Process to Business Strategy: A Review and Conceptual Framework.Crossref | GoogleScholarGoogle Scholar |
Barrymore, S. J., and Ballard, J. (2019). Decommissioning – a Path Forward for Australia. The APPEA Journal 59, 25–33.
| Decommissioning – a Path Forward for Australia.Crossref | GoogleScholarGoogle Scholar |
Bennie, L. G. (1998). Brent Spar, Atlantic Oil, and Greenpeace. Parliamentary Affairs 51, 397–411.
| Brent Spar, Atlantic Oil, and Greenpeace.Crossref | GoogleScholarGoogle Scholar |
Blacklaws, J. K., Diplock, C., and Miller S. (2018). Decommissioning. In ‘Offshore Decommissioning Conference, St. Andrews, United Kingdom, 27 November 2018’. (Ed. DecomNorthSea.) (DecomNorthSea: St. Andrews, United Kingdom.)
BP (2011). Miller Decommissioning Programme. Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning.
Broughton, P., and Andenæs, E. (2002). Refloat of Maureen Alpha Platform. Paper presented at the Offshore Technology Conference, Houston, Texas, May 2002.
Chandler, J., White, D., Techera, E. J., Gourvenec, S., and Draper, S. (2017). Engineering and Legal Considerations for Decommissioning of Offshore Oil and Gas Infrastructure in Australia. Ocean Engineering 131, 338–347.
| Engineering and Legal Considerations for Decommissioning of Offshore Oil and Gas Infrastructure in Australia.Crossref | GoogleScholarGoogle Scholar |
Cleland, D. I. (1985). A Strategy for Ongoing Project Evaluation. Project Management Journal 16, 11–17.
Cope, C. (2019). Marine/Investigation Underway to Find Cause of Buchan Alpha Mishap. Press release, 3 November 2019. Available at https://www.shetnews.co.uk/2019/11/03/buchan-alpha-rig-breaks-free-in-strong-wind/ [Verified 16 November 2020]
Denney, D. (2006). Stage-Gate Project-Management Process in the Oil and Gas Industry. Journal of Petroleum Technology 58, 68–71.
| Stage-Gate Project-Management Process in the Oil and Gas Industry.Crossref | GoogleScholarGoogle Scholar |
Denzin, N. K. (2017). ‘Sociological Methods: A Sourcebook.’ (Routledge.)
Dubois, A., and Gadde, L.-E. (2002). Systematic Combining: An Abductive Approach to Case Research. Journal of Business Research 55, 553–560.
| Systematic Combining: An Abductive Approach to Case Research.Crossref | GoogleScholarGoogle Scholar |
Elkington, J., and Trisoglio, A. (1996). Developing Realistic Scenarios for the Environment: Lessons from Brent Spar. Long Range Planning 29, 762–769.
| Developing Realistic Scenarios for the Environment: Lessons from Brent Spar.Crossref | GoogleScholarGoogle Scholar |
Eskerod, P. (2020). A Stakeholder Perspective: Origins and Core Concepts. In ‘Oxford Research Encyclopedia of Business and Management’. Available at https://oxfordre.com/business/view/10.1093/acrefore/9780190224851.001.0001/acrefore-9780190224851-e-3
Eskerod, P., and Huemann, M. (2013). Sustainable Development and Project Stakeholder Management: What Standards Say? International Journal of Managing Projects in Business 6, 36–50.
| Sustainable Development and Project Stakeholder Management: What Standards Say?Crossref | GoogleScholarGoogle Scholar |
Eskerod, P., and Vaagaasar, A. L. (2014). Stakeholder Management Strategies and Practices During a Project Course. Project Management Journal 45, 71–85.
| Stakeholder Management Strategies and Practices During a Project Course.Crossref | GoogleScholarGoogle Scholar |
Eskerod, P., Huemann, M., and Savage, G. (2015). Project Stakeholder Management – Past and Present. Project Management Journal 46, 6–14.
| Project Stakeholder Management – Past and Present.Crossref | GoogleScholarGoogle Scholar |
Eskerod, P., Ang, K., and Andersen Erling, S. (2018). Increasing Project Benefits by Project Opportunity Exploitation. International Journal of Managing Projects in Business 11, 35–52.
| Increasing Project Benefits by Project Opportunity Exploitation.Crossref | GoogleScholarGoogle Scholar |
Fowler, A., Macreadie, P., Jones, D., and Booth, D. (2014). A Multi-Criteria Decision Approach to Decommissioning of Offshore Oil and Gas Infrastructure. Ocean & Coastal Management 87, 20–29.
| A Multi-Criteria Decision Approach to Decommissioning of Offshore Oil and Gas Infrastructure.Crossref | GoogleScholarGoogle Scholar |
Freeman, R. (1984). ‘Strategic Management: A Stakeholder Approach.’ (Boston: Pitman).
Genter, S. (2019). Stakeholder Engagement in the Decommissioning Process. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2019.
Giacomarra, M., Crescimanno, M., Sakka, G., and Galati, A. (2019). Stakeholder Engagement toward Value Co-Creation in the F&B Packaging Industry. EuroMed Journal of Business 15, 315–331.
| Stakeholder Engagement toward Value Co-Creation in the F&B Packaging Industry.Crossref | GoogleScholarGoogle Scholar |
Goodwin, M. J., Muir, L. D., and Piasentin, F. (2017). Using the Alarp Principle to Significantly Reduce Offshore Decommissioning Costs. The APPEA Journal 57, 455–458.
| Using the Alarp Principle to Significantly Reduce Offshore Decommissioning Costs.Crossref | GoogleScholarGoogle Scholar |
Gordon, G., Paterson, J., and Usenmez, E. (2018). ‘UK Oil and Gas Law: Current Issues and Emerging Trends: Vol. I: Research Management and Regulatory Law.’ (Edinburgh University Press.)
Gordon, P. L., Poot, E. H., and O’Connor, G. S. (2019). Rigorous Decommissioning Decision Making with Strong Stakeholder Engagement Using Comparative Assessment. The APPEA Journal 59, 591–595.
| Rigorous Decommissioning Decision Making with Strong Stakeholder Engagement Using Comparative Assessment.Crossref | GoogleScholarGoogle Scholar |
Hardwicke-Brown, M. (1996). Confidentiality and Dispositions in the Oil and Gas Industry. Alberta Law Review 35, 356.
| Confidentiality and Dispositions in the Oil and Gas Industry.Crossref | GoogleScholarGoogle Scholar |
Henrion, M., Bernstein, B., and Swamy, S. (2015). A Multi‐Attribute Decision Analysis for Decommissioning Offshore Oil and Gas Platforms. Integrated Environmental Assessment and Management 11, 594–609.
| A Multi‐Attribute Decision Analysis for Decommissioning Offshore Oil and Gas Platforms.Crossref | GoogleScholarGoogle Scholar | 26415010PubMed |
Hughes, K., and Jagerroos, S. (2019). Must Haves for a Credible Comparative Assessment. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2019.
IOGP (2017). Overview of International Offshore Decommissioning Regulations. Report Number 584, International Association of Oil & Gas Producers.
Jagerroos, S., and Kayleigh, H. (2019). Emerging Decommissioning Trends in South East Asia – Local Interpretation and Implementation of Recently Updated Legislative Framework and Guidelines. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2019.
Kaiser, M. J. (2015). A New Approach to Decommissioning Cost Estimation Using Settled Liability Data. The Engineering Economist 60, 197–230.
| A New Approach to Decommissioning Cost Estimation Using Settled Liability Data.Crossref | GoogleScholarGoogle Scholar |
Kazadi, K., Lievens, A., and Mahr, D. (2016). Stakeholder Co-Creation During the Innovation Process: Identifying Capabilities for Knowledge Creation among Multiple Stakeholders. Journal of Business Research 69, 525–540.
| Stakeholder Co-Creation During the Innovation Process: Identifying Capabilities for Knowledge Creation among Multiple Stakeholders.Crossref | GoogleScholarGoogle Scholar |
Keeys, L. A., and Huemann, M. (2017). Project Benefits Co-Creation: Shaping Sustainable Development Benefits. International Journal of Project Management 35, 1196–1212.
| Project Benefits Co-Creation: Shaping Sustainable Development Benefits.Crossref | GoogleScholarGoogle Scholar |
Lammey, M. (2020). Greenpeace Returns to Brent Field to Protest against Shell’s Decommissioning Plans. Press release, 26 August 2020. Available at https://www.energyvoice.com/oilandgas/north-sea/260869/shell-greenpeace-brent-decommissioning/ [Verified 16 November 2020]
Langley, J., Wolstenholme, D., and Cooke, J. (2018). ‘Collective Making’as Knowledge Mobilisation: The Contribution of Participatory Design in the Co-Creation of Knowledge in Healthcare. BMC health services research 18, 585.
| ‘Collective Making’as Knowledge Mobilisation: The Contribution of Participatory Design in the Co-Creation of Knowledge in Healthcare.Crossref | GoogleScholarGoogle Scholar | 30045726PubMed |
Marathon Oil (2017a). Brae Alpha, Brae Bravo, Central Brae, West Brae and Sedgwick Combined Decommissioning Programmes. Report Number: 9000-MIP-99-PM-RP-00003-000, 102, Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning.
Marathon Oil (2017b). East Brae and Braemar Combined Decommissioning Programmes. Report Number: 9030-RRE-99-PM-RT-00001-000, 103, Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning.
Marfatia, F. (2019). Digitally Transforming Front End Decommissioning Planning. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2019.
Mauser, W., Klepper, G., Rice, M., Schmalzbauer, B. S., Hackmann, H., Leemans, R., and Moore, H. (2013). Transdisciplinary Global Change Research: The Co-Creation of Knowledge for Sustainability. Current Opinion in Environmental Sustainability 5, 420–431.
| Transdisciplinary Global Change Research: The Co-Creation of Knowledge for Sustainability.Crossref | GoogleScholarGoogle Scholar |
McLean, D. L., Bond, T., Partridge, J. C., Rouse, S., and Love, M. (2020). The Impact of Oil and Gas Infrastructure in Marine Ecosystems: A Global Vision for Informing Decommissioning Decisions. The APPEA Journal 60, 476–479.
| The Impact of Oil and Gas Infrastructure in Marine Ecosystems: A Global Vision for Informing Decommissioning Decisions.Crossref | GoogleScholarGoogle Scholar |
Milne, P. (2020). Woodside Abandons Abandonment for Echo Yodel. Press release, 18 June 2020. Available at https://www.boilingcold.com.au/woodside-shouts-abandon-abandonment-for-echoyodel/#:~:text=If%20Woodside’s%20argument%20that%20a,Australia’s%20oil%20and%20gas%20players [Verified 16 November 2020]
Mitchell, R. K., Agle, B. R., and Wood, D. J. (1997). Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts. Academy of Management Review 22, 853–886.
| Toward a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts.Crossref | GoogleScholarGoogle Scholar |
Moffat, K., and Zhang, A. (2014). The Paths to Social Licence to Operate: An Integrative Model Explaining Community Acceptance of Mining. Resources Policy 39, 61–70.
| The Paths to Social Licence to Operate: An Integrative Model Explaining Community Acceptance of Mining.Crossref | GoogleScholarGoogle Scholar |
Moore, W., Russell, H., and Halliwell, A. (2001). Maureen Decommissioning; the Story So Far. Paper presented at the Offshore Mediterranean Conference and Exhibition, Ravenna, Italy, March 2001. Paper OMC-2001-067.
OGUK (2015). ‘Guidelines for Comparative Assessment in Decommissioning Programmes.’ (Oil & Gas UK: United Kingdom.)
OGUK (2019). ‘Decommissioning Insight Report 2019.’ (Oil & Gas UK: United Kingdom.)
OPRED (2020). Decommissioning of Offshore Oil and Gas Installations and Pipelines. Press release, 23 January 2013, last updated 4 November 2020. Available at https://www.gov.uk/guidance/oil-and-gas-decommissioning-of-offshore-installations-and-pipelines [Verified 16 November 2020]
Othman, M., Omar, S., and Zain, M. (2019). Alternative Way of Decommissioning Offshore Facilities to Achieve Lower Cost. In ‘SPE Symposium: Decommissioning and Abandonment’, 2019, Kuala Lumpur, Malaysia’. Society of Petroleum Engineers: Kuala Lumpur, Malaysia.
Palandro, D., and Aziz, A. (2018). Overview of Decommissioning Option Assessment: A Case for Comparative Assessment. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2018.
Pera, R., Occhiocupo, N., and Clarke, J. (2016). Motives and Resources for Value Co-Creation in a Multi-Stakeholder Ecosystem: A Managerial Perspective. Journal of Business Research 69, 4033–4041.
| Motives and Resources for Value Co-Creation in a Multi-Stakeholder Ecosystem: A Managerial Perspective.Crossref | GoogleScholarGoogle Scholar |
PMI (2017). ‘A Guide to the Project Management Body of Knowledge’, 6th edn. (Project Management Institute.)
RockRose Energy (2019). Brae Alpha West Drilling Rig Decommissioning Programme. Report Number: 9020-RRE-99-DR-RP-00002-000, 103, Department for Business, Energy and Industrial Strategy, Offshore Petroleum Regulator for Environment and Decommissioning.
Rossman, A., Chance, B., and Ballman, K. (2000). A Data‐Orientated, Active Learning, Post‐Calculus Introduction to Statistical Concepts, Methods and Theory. In ‘Proceedings of the Section of Statistical Education, Joint Statistical Meetings’, 2000, American Statistical Association. Available at http://rossmanchance.com/scmt/JSMpaper00.htm
Saunders, M., Lewis, P., and Thornhill, A. (2016). ‘Research Methods for Business Students’, 7th edn. (Pearson: Harlow, England.)
Shaw, J., Seares, P., and Newman, S. (2018). Decommissioning Offshore Infrastructure: A Review of Stakeholder Views and Science Priorities. WAMSI, Perth, Australia.
Sommer, B., Fowler, A. M., Macreadie, P. I., Palandro, D. A., Aziz, A. C., and Booth, D. J. (2019). Decommissioning of Offshore Oil and Gas Structures – Environmental Opportunities and Challenges. Science of The Total Environment 658, 973–981.
| Decommissioning of Offshore Oil and Gas Structures – Environmental Opportunities and Challenges.Crossref | GoogleScholarGoogle Scholar |
Tanakasempipat, P. (2019). Thai Energy Ministry Sets March Target to Resolve Chevron Dispute. Press release, 8 October 2019. Available at https://www.reuters.com/article/us-thailand-chevron-idUSKBN1WN1IZ [Verified 16 November 2020]
Taylor, M. (2017). Our Energy Future: The Power of Collaboration to Transform Australia’s Energy Resources Sector. The APPEA Journal 57, 552–555.
| Our Energy Future: The Power of Collaboration to Transform Australia’s Energy Resources Sector.Crossref | GoogleScholarGoogle Scholar |
Thomas, A. (2019). Greenpeace Protestors Scale Shell’s Brent Platforms. Press release, 14 October 2019. Available at https://www.energyvoice.com/oilandgas/north-sea/209719/greenpeace-in-peaceful-protest-on-shells-brent-platforms/ [Verified 16 November 2020]
Tung, A. (2020a). A Comparison of Stakeholder Engagement Strategies for Offshore Decommissioning Projects in the United Kingdom and Australian Landscape. Paper presented at the Offshore Technology Conference, Houston, Texas, USA, May 2020.
Tung, A. (2020b). Design and Analysis of Stakeholder Oriented Critical Paths for Offshore Decommissioning Projects in the United Kingdom and Australian Landscape Using Mixed Methods. Paper presented at the Offshore Technology Conference, Houston, Texas, USA, May 2020.
Tung, A., and Otto, C. (2019a). Decommissioning Cost Reduction by Effective Planning of Decommissioning Projects Using Facility Removal Date as a Reference Point. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2019.
Tung, A., and Otto, C. (2019b). Lessons Learnt from OSPAR and the North Sea: The Importance of Establishing a Regional Decommissioning Agreement in the South China Sea Region. Paper presented at the SPE Symposium: Decommissioning and Abandonment, Kuala Lumpur, Malaysia, December 2019.
Walkup, G. W., and Ligon, B. J. (2006). The Good, Bad, and Ugly of Stage-Gate Project Management Process as Applied in the Oil and Gas Industry. Paper presented at the SPE Annual Technical Conference and Exhibition, San Antonio, Texas, USA, September 2006.
Waters, J. (2015). Snowball Sampling: A Cautionary Tale Involving a Study of Older Drug Users. International Journal of Social Research Methodology 18, 367–380.
| Snowball Sampling: A Cautionary Tale Involving a Study of Older Drug Users.Crossref | GoogleScholarGoogle Scholar |
Whittaker, P., Oudenot, E., and Vasquez, M. (2019). ‘Oil and Gas Needs Decommissioning Models That Work at Scale.’ (Boston Consulting Group: London.)
Yin, R. K. (2017). ‘Case Study Research and Applications: Design and Methods.’ (Sage Publications.)
