Arcadis : awarded large project by NAM to support clean-up of former gas extraction sites in the Netherlands

14 December 2023 - Arcadis (EURONEXT: ARCAD), a leading global design and consultancy organization for natural and built assets, has been awarded a large project by the Dutch Oil Company (NAM) to support the clean-up of approximately 800 former gas extraction sites across the Netherlands over the next 10-15 years. Arcadis will work as part of a closely integrated team with WellGear, a leading company in the closure of oil and gas wells, on the decommissioning program, which covers 350 locations and 1,750 kilometers of pipelines.

This latest appointment builds on Arcadis' longstanding relationship with Dutch-headquartered NAM, a 50:50 joint venture between Shell and ExxonMobil that is responsible for supplying 25% of the natural gas required by households and businesses in the Netherlands.

The work will involve the permanent closure of the wells up to a depth of 3.5 kilometers, which will be overseen by WellGear, with Arcadis responsible for the removal of all above-ground installations and horizontal pipelines, before the sites are restored to their original state and returned to the landowner. Arcadis' activities will include comprehensive planning of work preparation and permits, industrial cleaning of installations, dismantling, remediation of contaminated soil, and agricultural restoration.

The appointment will see the further integration of underground and above-ground work, ensuring activity is conducted in harmony with the surrounding environment.

Prior to developing the decommissioning plans, Arcadis, WellGear and NAM will also explore possibilities for site redevelopment in the context of the energy transition. Reusing capital assets is more sustainable than demolishing them.

Alan Brookes, CEO of Arcadis, said: "Rewiring the global economy for a net-zero future is a massive challenge and, given the joined-up nature of the energy transition challenge, a system-wide approach is vital. Great progress is being made in transforming the energy sector to move away from fossil fuels, but at the same time we need to address the complex, long-term, environmental challenges that remain at these former sites. Ensuring decommissioning is conducted safely, securely, and cost-effectively - and always with an eye to extending future useful life - is critical as we continue our sustainability journey."

NAM Director Johan Atema said: "Just like our gas and oil extraction, the cleanup of wells and sites should be done safely and with minimal inconvenience to the surroundings. Additionally, this is an activity that will be necessary not only in the Netherlands but worldwide in the coming decades. As a company from the northern Netherlands, we are happy to work together with WellGear and Arcadis to contribute to the development of regional knowledge and employment."

Sigo Tjeerdsma, CEO of WellGear, added: "In this extensive program, various areas of expertise from NAM, Arcadis and WellGear come together. We will organize the execution in consultation with stakeholders from the region. This is something that greatly appeals to us."