Decommissioning Insight 2015


The weight of a platform will have little effect on some of the expenditure associated with removal, including removal preparation, vessel mobilisation, sea-fastening, transportation and load-in onshore. This can result in a larger average cost per tonne forecast for topside removal for the smallest and lightest structures commonly found in the SNS and Irish Sea regions, compared to larger structures in the CNS and NNS/WofS regions. However, the cost per platform is significantly lower in the SNS and Irish Sea. The large range in costs per tonne for both topside and substructure removal seen in the SNS and Irish Sea is primarily due to the varying approaches to platform removals. Where possible, decommissioning is carried out in batches or campaigns to maximise efficiency gains and reduce costs. In the SNS and Irish Sea, several operators plan to remove multiple platforms in one campaign, allowing mobilisation and other fixed costs to be spread across the structures being removed. Projects at the bottom of the range are typically those included in a batched approach, while those at the top of the range are typically planned as individual removals. Figure 21: Historical Variation in the Removal Cost per Tonne Forecasts for Topsides and Substructures in the Southern North Sea and Irish Sea

Range in Cost Forecasts

Average Forecast Topside Removal Cost Per Tonne Average Forecast Substructure Removal Cost Per Tonne Average Forecast Topside and Substructure Removal Cost Per Tonne

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000

Estimated Cost per Tonne (£ - 2015 Money)


2012 2013 2014 2015

2012 2013 2014 2015

Topside and Substructure



Source: Oil & Gas UK

Removal Cost per Tonne

2014 Average

2015 Average


£4,000 £4,500

£4,600 £4,400


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