Decommissioning Insight 2015

DECOMMISSIONING INSIGHT 2015

7.2.3 Average Cost per Tonne Forecasts for Making Safe The average cost per tonne forecast for ‘making safe’ of facilities is £440 in the CNS and NNS/WofS regions and £990 in the SNS and Irish Sea. The range of cost per tonne forecasts is broad in all regions, but especially in the SNS and Irish Sea. The scope of work associated with ‘making safe’ will be similar across different platform types. Activity will take longer on larger structures, but the fixed costs will be similar, increasing the cost per tonne forecasts for the smaller, lighter structures commonly found in the SNS and Irish Sea. The NUIs will also require transport by helicopter or an accommodation vessel for a team to carry out ‘making safe’ activities, adding further cost. Many of the installations in the SNS are smaller NUIs, contributing to the higher average cost forecasts and larger range. Expenditure at the lower end of the range is in line with those seen in the CNS and NNS/WofS areas and is likely to be associated with larger, manned platforms. Figure 16: Variation in the ‘Making Safe’ Cost per Tonne Forecasts for Topsides Split by Region

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

Estimated Cost per Tonne (£ Million - 2015 Money)

0

CNS and NNS/WofS

SNS and Irish Sea

Source: Oil & Gas UK

Central and Northern North Sea/West of Shetland

Southern North Sea and Irish Sea

Average cost per tonne

£440

£990

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