EP 19: Start to Finish: Outsourced Operations & Decommissioning

In this episode of Producing Confidence, host Melanie Toups sits down with Blake Habbit, Danos Decommissioning Operations Manager, and Luis Otero, Danos General Manager of Outsourced Operations and Decommissioning, to discuss what it takes to support offshore assets from start to finish. From late-life operations and operational ownership to decommissioning strategy, safety culture and workforce development, the conversation dives into the challenges — and opportunities — shaping the industry today.

Topics include:

• Operational ownership vs. traditional staffing
• Decommissioning offshore assets safely and efficiently
• Safety, planning and stop-work responsibility
• The growing demand for multi-skilled employees
• Building trust with customers through execution and integrity

Transcript

Melanie: 0:28

Hello and welcome to Producing Confidence. I'm your host, Melanie Toups, and today we're diving into a of our industry that plays a critical role: outsourced and decommissioning. It's the kind of work that requires trust, strong partnerships, and people who are willing to take real ownership every day. I'm joined today by Blake Habbit, Danos' Decommissioning Manager, and Luis Otero, Dan os General Manager of Outsourced Operations and Decommissioning. We'll talk about what this work really looks like, the that come with it, and what it takes to support our customers from start to finish. Blake, Luis, so glad to have you here. Let's get started.

Blake and Luis: 1:10

Thanks for having us, Mel.

Melanie: 1:11

So, Luis, uh, for employees who may not be familiar, what is Outsource Operations?

Luis: 1:17

Outsource Operations is a new division that we created at Danos last year. And the uh the the intent of it or the the focus and strategy for it is really going and providing kind of the next step in uh OM labor and oversight management of that labor for our beyond the traditional uh staffing models, and now we're uh that with onshore technical support to provide uh the customers with a little bit more oversight of what's going on in the and managing the day-to-day operations so they can focus on kind of long-term strategies.

Melanie: 2:00

Okay, interesting. Why are more operators turning to outsourced operations now instead of managing everything themselves?

Luis: 2:07

Yeah, so I think it's a value play. I think we will be able to deliver more value for our customers this model for multiple reasons. Uh and it depends on what type of asset uh or portfolio of assets are being transitioned into this type of model, right? We we have uh customers that are uh looking at using an outsource operations model for late life assets, so assets that are in the kind of the final years of their life, uh hoping to lower costs for that asset and extend the asset retirement And and by extending the asset retirement obligations, basically you're delaying uh uh a significant amount of capital that to be spent on decommissioning, uh, and that brings customers. We also have uh other customers out there that are looking operating models for brand new projects, right? So from the get-go, uh they're looking at a model where it has contractor penetration. And and again, we can supplement that OM labor in the onshore technical oversight uh to help the operator manage the operations for that asset. That onshore kind of oversight that we provide, it also allows us to integrate all the service lines that Danos brings to the table under one umbrella, which minimizes interfaces with the and within the customer.

Melanie: 3:34

you mentioned decommissioning. Um, Blake, let's go to you. Decommissioning is not really something that people outside this industry hear about often. What does that work involve and why is it so important?

Blake: 3:46

So there's multiple stages to decommission a platform. So we're gonna come in there and and make it safe. Typically, these assets are old and and and dilapidated, so to and hadn't been lived on for a while. Um, so we got to come in there and and ensure we can work on the assets. So we'll come in there and and make the platform safe to work. Then we're gonna de-inventory the platform and remove the um to remove that risk of anything going into the Gulf and an environmental impact. Then we'll come in and plug an abandoned the wells and then pull the conductors and the well heads out, and then we'll come in and prep for removal. So construction will come back out and prep the platform to be to safely remove it with a heavy lift vessel. And then we'll remove any pipelines that are involved with location and then come back and sight clear the entire, the lease, but the entire location to removing the debris from and minimize the environmental impact in the Gulf.

Melanie: 4:47

When y'all get there, you make it safe. What's involved with that? What do you do?

Blake: 4:51

So a lot of construction, typically these platforms have handrails, missing grating, open holes, unbarricaded areas. So we're gonna come in there and set equipment to work. We need to add handrails uh so we can work safely with and not unprotected edges. The grating, we need strong support to set equipment on and work off of. Uh new deck plating could be new boat landings to even access, swing ropes to even get on the location. So um a lot of that goes up front to to be able to just safely the platform. So yeah.

Melanie: 5:29

Does the decommissioning group perform all of those duties, do you guys call on other departments within Danos to like the construction group, or do you use other service lines?

Blake: 5:40

Yeah, so we we leverage our our inside partners, right? Our IND group. There could be a lot of valve work involved in this, a lot of obviously, with our performance partners. There's some things we don't do here that will outside source, uh like well work and heavy lift work, but our crews are generally from start to finish, in some way, shape, or form, Danos people supporting supporting these projects across multiple service

Melanie: 6:05

Why is decommissioning services important right now?

Luis: 6:10

You said so like like Blake alluded to earlier, right? So so some of these assets uh that we're decommissioning right now in the shelf that they're they're old, right? 30 plus years. Uh the assets and the wells, right? And and like Blake mentioned earlier, uh, these carry a certain risk. Uh so the reservoirs are still pressurized, there's still in those reservoirs, there's still hydrocarbons in some of the and all that poses environmental risk. Uh and and that risk continues to increase as times goes by, right? So that's why the government will issue asset retirement orders the uh for the lease operators to go and decommission these assets. Uh and and that's just for the shelf.

Speaker: 6:58

water assets that are also coming to age where where production has uh has stopped or is soon to stop, right? And uh and customers are are reaching out to start planning of these deep water assets.

Blake: 7:13

And and there's a lot more complexity in a deep water spa or rig uh with umbilicals and and and uh subsea wells, and it it's a lot more involvement and complexity than rather than uh your typical shelf asset.

Melanie: 7:30

What are the risks that are involved if it's not done right?

Blake: 7:33

Uh environmental impacts, you could have a spill, you could have toppling platforms if they're not addressed in a timely manner. Uh there's a lot of risk involved.

Luis: 7:44

I mean, ultimately safety, right? So the work that the Blake and the team are doing out in the field is is is high risk work, right? There's there's a lot of uh uh lifting operations going on. There's there's a lot of uh hot work, open flame work. Uh at times folks are working on on assets that again, the the the structure itself is not in its best form, right? So there's there's a lot of risks that are being taken to be to uh decommission assets in in that state. But but safety risks, both personal safety and process safety are present in all the operations that that Blake and the doing in the field.

Melanie: 8:22

Like decommissioning work, I could imagine you working with systems. There's a lot of unknowns. Like you said, it's it's platforms that maybe, like you said, file in bankruptcy. It's given back to what is it, the original lease owner.

Blake: 8:39

And the cases now, yeah, the original lease owners, uh, which are typically the majors who set these platforms years ago, are the ones that are are having to do this. Us providing the services that we do here at Dan Ollis, it's a partnership and and support of them to be able to do those types of activities.

Melanie: 8:58

And I could imagine that because this is the end of life, want you to move pretty quickly.

Blake: 9:05

Right. So nothing's coming in, no revenues coming in, it's all going So having a mindset of thinking outside the box with do with cutting costs, how to how to how to share cost amongst those are always key, key components to this to be able to the customer reduce that cost, because that's the biggest the thing. And then P and A in a well and removing the platform, and some heavy, heavy equipment that that has big costs behind it.

Melanie: 9:32

How do you go about protecting the people and the whenever you're dealing with that, knowing what you have to and do it quickly and at a lower cost?

Blake: 9:41

So I the safety culture is a big thing. Um we have daily safety meetings, we have multiple safety is a big key component. Keeps the the what they're doing fresh in their mind, the topic that they're doing, whether it's flesh and hydrocarbons, whether it's PA and wells, whether it's crane operations, whatever it be, um, just ensuring that we're delivering a message to keep guys safe and having that buy-in from the field, I think that safety culture is uh is huge and keeping the guys safe. And they they take ownership of that.

Luis: 10:18

Yeah, I have something else that I'm I think safety culture is important, like what Blake is saying, but I think something else that I think is very important and that I've seen Blake and his do really well. It comes down to planning. So the time and effort that that Blake and his and his team up front laying out a plan, risk assessing the plan, doing 3D of of what they're about to go execute in the field, taking that time up front leads to very good execution in the field, safe efficient. Uh so I mean that's something that I do need to recognize Blake his team for for the amount of time they spend planning work before they go to the field to execute. I think that's the key for success.

Melanie: 10:57

Yeah, sounds like it. I've seen some of those plans and they're very impressive.

Blake: 11:02

A lot of details in them.

Melanie: 11:03

Yeah, for sure. So, Luis, um, going back to outsourced operations, what's the difference between sending manpower to a job and taking ownership of a facility?

Luis: 11:17

In the Gulf of America, the the traditional OM models uh that have historically used, uh they have uh a certain contractor within their organization. hey, we we want X amount of uh uh technicians, either operators, mechanics, uh instrument technicians, electricians, and and will provide those those folks. But then when they get to the asset, they're working on their the direction purely of the operator, right? Uh either uh their their management systems, uh their procedures, they're setting the plans and the schedules. And then uh the other side of the spectrum, you have uh what's total asset management operating models, which is a model actually used in other basins like in the North Sea and other locations, but it really hasn't come to the Gulf of America And in the outsource operations model, what it's is it's to do is show the value of moving closer to that total asset model. Uh and we're we're providing an option with an OM model which us to integrate all of those service lines that we have at Danos to provide more value for the customer under one umbrella. Uh, a team in the office that's providing additional and direction to the offshore operations team for day-to-day to be able to address issues, campaign work, uh, multi-skill technicians so that we can do more with less POB. Uh, so that that integrated outsource operations model is there deliver value by doing that.

Melanie: 13:03

For somebody who's looking to join Danos or growing their here, what types of roles or skill sets are needed for operations?

Luis: 13:14

Yeah, and this is not just for outsource operations, but uh but for decommissioning as well and in other divisions and industries. I mean, I think that there's a huge demand for skilled labor. Uh, so operators, mechanics, electricians, instrument automation specialists. So all those crafts are going to be in high demand and will to be in high demand. We talked a little bit about decommissioning not being flashy and you're working yourself out of a job, but there is so much work out there, uh, and more decommissioning work that's coming way that that we are in we're in high demand for for scale labor like that. And that goes again for decommissioning, outsourced many of our other divisions.

Melanie: 14:00

Okay. What kind of mindset thrives with outsourced operations

Luis: 14:06

Huh. With type of mindset.

Melanie: 14:08

Yeah. I think you have to be like who succeeds in this environment.

Luis: 14:14

We like Blake was saying, we do a lot of things that are high I think you have to have people with really good integrity doing the right thing when nobody's looking. Right? Uh there's gonna be many times where where folks are in the field executing work, something changes, right? There's not a supervisor right there at the site. Uh, and and and we're relying on people making good decisions, and and for that, you you need to have high integrity, uh, where trying to do the right thing every single time when nobody's

Blake: 14:48

Yeah. To add to that, I think having having the intention of higher level skilled person managing those projects um is key. You gotta have somebody with a good head on their shoulders that can make quick and and methodical decisions on the fly.

Luis: 15:08

of get ourselves in trouble because uh we want to get things and are hesitant to stop work and and we have to move past that, right? We also need to recognize when is the right time to stop and and just go back and reassess.

Melanie: 15:20

Talk more about that.

Luis: 15:22

I mean, so so stop work is something that I know we at Danos a lot about it, and and many of the other uh operators and providers. I think for me personally, uh a lot of folks talk about stop work authority, and and for me, it goes way beyond that. It's about stop work responsibility. It's like every individual in the field it's accountable and they have the responsibility to stop work whenever they see that's not right. It's not about having the right, it's about having the and that duty.

Melanie: 15:49

Yeah, for sure. So if somebody who's already a Danos employee wants to this side of the business, what should they start developing in now?

Luis: 16:02

Yeah, I mean, so we we talked about the uh the kind of the skills, right, associated with the crafts. Uh so whatever craft you're working in, there's definitely some skills that you have to develop and deepen within your And then there's soft skills around leadership uh that will be beneficial, uh, especially as you move uh later into your career. But uh, but but for somebody starting off, learn the core craft as much as you can. Yeah, that'll be the foundation for the rest of your

Blake: 16:38

Yeah, for decommissioning, a lot of the a lot of the personnel are specific to production operations because a lot of it's work. Um so having those highly skilled operators that can do the the Betsy compliance work, but also having a second skill set electric electrical or or INE or or doing working on NAVAID, kind of a dual role person, which we have several of those on projects. I think there's more demand for multi-skilled people, yeah, in this space and outsource operations because um they want to more with less, essentially. They want to to use the people the assets they got and do things with those those people to help reduce some of that of bringing on somebody else to do a different type of task. Right.

Melanie: 17:30

So what would you say separates a Danos employee on these from others in our industry?

Blake: 17:37

I would say living living by our values every day.

Luis: 17:40

You know, Mel, but for other side, uh I just recently joined back in October of last year. And I had done work with Danos for many years uh throughout my uh from the other side of the industry, uh from the operator side. Uh but when I when I walked in into the Danos building here, the headquarters, uh, my first day, there was something that I had seen and it shocked me. And it was our purpose up on the board. Uh and I think I think honestly that that's that's what all at Danos and what makes a difference. It's it's not just living by the by the by the values, like Blake was talking about, but it's it's honestly it's it's it's that which starts with honor God, right? So everything we do around here starts with how do we do our in a way in which we're honoring God. It goes from the leadership here to the guys in the field. And to me, that that's what makes a difference. That's that's a huge differentiator between us and and it genuinely, right? It's not it's not a sales pitch, it's not uh marketing It's it's who we are and and and and how we do our work.

Blake: 18:43

So a a quick example of that is uh we have daily safety meetings. We s either start or end each of those safety meetings with a I don't know too many others out there that would do that. Um that's a big thing. It was started from the beginning of one of our projects and it still carries on to this day. And we do not leave that meeting without opening or closing a prayer.

Melanie: 19:06

So yeah, Danos is a very special company in that way. That we really it's who we are for sure. Yeah, I agree with that, Luis. Um Blake. I know I know you a little bit more because like Louise said, he he came a few months ago. So you've moved up in the company. So you were in the field for a while, or you were in the um were in the account manager role for a while. So in your journey up to leadership, what lessons have you managing teams of these high risk and high complexity jobs?

Blake: 19:45

Well, first, understanding the scope from being in the field is is kind of key. One of the prerequisites, maybe I'd say, but being there when something goes wrong and they need help, you know, let them kind of figure it out kind of thing and and be there to support.

Melanie: 20:00

What advice would you give employees who want to step into a role?

Luis: 20:04

So for folks that want to step into leadership roles, I would that they they pick a leader that they really like and they They reach out and and use that individual or individuals as There's gonna be leaders that you're gonna work for that that you might not like their approach or their style, but that's also good because you'll learn what not to do or how not to do it. But yeah, but looking at at folks that that that you admire and you see as good leaders out there in the in the community or in work environment and and learning from them early on will be very valuable.

Blake: 20:42

Asking a lot of questions, understanding if it's if it's uh an role you want to go to, if it's an HSC role, you know, hone skill in and ask those questions, having that base to move to into a role like that is um is needed for sure.

Melanie: 21:00

Knowing a little bit about your journey here, you've come from a different side of the business. Talk a little bit about how you got here to decommissioning.

Blake: 21:08

So, yeah, I'm seven years here with Dan os, starting out as on production side and account manager. You know, I got into decommissioning about three and a project and really just kind of took a deep dive into that. You know, Dan Oss was really instrumental in getting that project off the ground. And I gained a lot of experience, specifically on the back learning how to uh, you know, set up contracts and and get things and vessels and everything kind of in place to be able to to go out and execute work, find the people, um, find the resources, assets, that kind of thing. So it I it it was some growth for me. Um and I kind of I kind of not to toot my own horn, but I in that, you know, kind of under pressure to be able to to um to execute that.

Melanie: 21:56

So yeah. So I mean, part of the purpose here at Dan os is developing people. And that's an example right there. You know, you know, you took your opportunities and you asked questions, you found somebody who could be a mentor for you, and here you are, operations manager. So, Luis, what you most about where outsource operations and are headed over the next five years?

Luis: 22:22

So, what excites me the most is uh is the opportunity there for right? So again, outsource operations. Brand new division we established last year. Last year we had many inquiries from multiple operators looking for different operating models. And we're working through some of those opportunities. Hopefully, we'll be landing here one soon. And then hopefully it snowballs from there into other uh for us. But but with that growth, what it creates is creates opportunities for people to step in, develop, and grow their careers, field and here in the office. So that's what excites me is that opportunity for growth, not for Dinos as a company, but for all those individuals that will support the growth in the division.

Melanie: 23:06

So customers came to you with a challenge.

Luis: 23:09

Yeah.

Melanie: 23:10

And you took that and ran with it and developed the outsource operations division here.

Luis: 23:17

And we, it wasn't just me, right? We have a team of folks, and and and there was a lot of work that was done before I even joined Dano. So we have to recognize those folks that that put all that work I came in. But but yes, basically the the this started from a pull from the customers coming to us with a challenge and asking us to help um them solve it.

Blake: 23:40

And what's appealing for me, specifically in decommissioning, is the outsource model, uh late life assets. You know, using that model, like you said earlier, to extend the obligation to remove the facility, asset retirement but also have take that time and plan, properly plan to that asset. So you're extending the life. Um, I think these models go hand in hand with each other. And um, there's a lot of opportunity, I think, out there for to to to help help customers out and and solve those challenges and and in that space.

Melanie: 24:15

So yeah, for sure. I mean, when customers trust us to run their operations or out their assets safely, what does that responsibility mean you personally? Luis, we'll start with you.

Luis: 24:28

There's a commitment here to deliver for our customers. to efficient execution, right? So that we can deliver value for our customers and and by by that and and and building that trust, more opportunities will come for Danos to grow, continue to grow, and and for us to create for people to develop themselves. There's this trust that needs to be built based on us delivering upon the the challenge that has been presented to us.

Blake: 24:59

When you hear the the name Danos, customers tend to have that in a 79-year-old company that, you know, will do the right um, has done the right thing for many years, and um has the to be able to handle their operations uh in a safe and and and efficient manner.

Melanie: 25:19

As a leader, how does that help you manage your team?

Blake: 25:24

It makes me feel like I've chosen a right place to work. Again, it goes back to our values and and our purpose of God and developing great people and solving challenges for That's something we live and breathe every day, and it makes me feel good to be part of an organization that that has that

Melanie: 25:42

So, Luis, you mentioned that you came from the customer side and you are now the general manager here at Dan OS. Since you've been here, what's been the most proudest part being a Danos employee?

Luis: 25:55

So actually, so so we obviously, as a service provider, we win work, right? But I think the the the the proudest moment that I've had here the in the short time that I've been with Danos here over the about six months was some work actually that we walked away from uh because it wasn't it wasn't right for us, right? Uh the the way that it was being framed didn't fit with with values and the way we want to go about doing business. Like I said earlier, we've been a 79-year-old company and we to be here for another 79 years. And for that, we need to be intentional about what work we do the right framework. Uh, and when it's not right, uh and it's either going to put our people at risk or put the company at risk, then we just walked from it. And having the support from the leadership here at Danos when situation was presented to us, uh, and us walking away from it was was something that I feel really proud about.

Melanie: 26:51

Blake, what about you?

Blake: 26:53

a really good one, Louise. I'd say my proudest moment of working here in the last seven years was uh being nominated for employee of the year. That means that you know I I helped um serve our customers at a high level, and that's that's what we do here. And and to be recognized for that, it makes me proud to be a part of Danos.

Melanie: 27:14

That's the end of today's episode. Thank you to Luis and Blake for coming in today. Anything else you guys want to add before we head out?

Blake: 27:21

No, thanks for having us. It was fun.

Luis: 27:24

Yeah, thank you for having us, and thank you for the work that you and and your team does. I think it's pretty cool for us to have this open channel with the Dano's workforce and our customers. So wow, it's pretty cool.