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By Promote ShetlandJuly 21st 2025

Shetland’s potential as a future hub for the offshore decommissioning industry has been further boosted by the news a leading demolition and dismantling firm will set up base in Lerwick.

Positioned at the heart of the North Sea and North Atlantic offshore industry, Shetland has played a crucial role in the energy sector for generations.

That began with North Sea oil exploration in the 1970s, with expertise and experience built up over the decades. That now means that as many oil platforms reach the end of their life, Shetland is ready to play an equally crucial role – decommissioning offshore infrastructure.

Large oil platforms have already been brought into Lerwick Harbour for dismantling, and now one of Europe’s largest demolition companies has committed to setting up a new partnership based at Dales Voe, a key site in the town’s harbour.

Brown & Mason will work alongside Peterson Energy Logistics’ team in Lerwick to help the port enter a new phase of decommissioning. It will be the first time demolition experts Brown & Mason have worked in the sector, signalling how significant the industry is for Shetland, and how many large-scale projects are expected.

UK Operations Director at Brown & Mason, Richard Brown, said: “We are confident in the scale of opportunity and Dales Voe being the ideal location to launch our diversification into the offshore sector. As leaders in heavy industrial dismantling and trusted partners of the energy sector, we are excited to bring our significant expertise to support this market.

“We are committed to working with the local supply chain, alongside our in-house experts and established partner Peterson Energy Logistics.”

We are confident in the scale of opportunity and Dales Voe being the ideal location to launch our diversification into the offshore sector.

Brown & Mason chose Shetland because of the islands’ ideal location and proximity to hundreds of offshore oil assets in the UKCS North and Central North Sea region, which will reach end of life in the coming decades.

Other key factors included the experienced and ready local supply chain, sheltered deepwater access, and heavy-duty quayside infrastructure.

Dales Voe has one of the strongest quaysides in the UK, engineered to accommodate significant loads of up to 60 tonnes per metre squared, with a knife-edge linkspan loads of 800 tonnes per metre. This makes it ‘single lift’ ready and has previously accommodated topside and jacket projects.

The largest heavy lift vessel in the world, the Pioneering Spirit, has offloaded materials directly to the quayside at Dales Voe – something that is not possible elsewhere in the UK. There have also been skidded barge load-ins from its Iron Lady barge, which is only possible due to the depth capabilities of 12.5m and the geography of the site.

Captain Calum Grains, Chief Executive of Lerwick Port Authority, added: “In Lerwick, we have the capabilities and capacity to service the decommissioning industry. We are strategically located with the right assets and people to make this an incredibly efficient option for hundreds of offshore assets.

“Our track record handling these significant large-scale projects at Dales Voe includes the world’s largest construction vessel, Pioneering Spirit, first delivering the 14,200 tonnes Ninian Northern platform topsides, returning in April 2022 with the field’s 8500 tonne steel support jacket. Then returning for a third visit in 2024 to offload a cargo of materials direct to quayside for another North Sea project, which cannot be done elsewhere in the UK.”

'Important opportunity'

Peterson has had a base in Lerwick for two decades and employs around 75 people in Shetland working on a range of large, complex projects, with access to critical infrastructure.

Andrew Ellis, Commercial Director at Peterson Energy Logistics, said: “Decommissioning is an important opportunity for the island’s economy, and we are pleased to be working in partnership with Brown & Mason to offer operators expert, trusted, and innovative solutions to complex requirements.

“We're proud to be part of a strong local supply chain which has proven itself time and time again in terms of delivering services for the largest structures and projects for the energy industry. We are ready to welcome more large-scale projects to Dales Voe with Brown & Mason.”

Lerwick Harbour’s strategic location in the North Sea, with natural deep-water, creates solutions for large scale decommissioning projects and is perfectly poised to service the energy sector’s requirements. The port’s extensive facilities include over 4,500 metres of quays, including deep water berthing to 12.5m c.d., unique heavy-duty line loading at the quaysides, and substantial quayside working areas, open storage and laydown capacity.

We're proud to be part of a strong local supply chain which has proven itself time and time again in terms of delivering services for the largest structures and projects for the energy industry.

Dales Voe was identified in a government-commissioned, nationwide feasibility study as the optimal location for the UK’s ultra deepwater decommissioning facility which will facilitate direct offload from semi-submersible crane vessels and further enhance the UK’s competitiveness against overseas yards.

As well as decommissioning, the site is also available to support development projects in the oil and gas, offshore wind, and other sectors.

Learn about Shetland's diverse and thriving industries.