Decommissioning Insight 2018

Figure 9: Historical Variation in Well Decommissioning Cost Forecasts in the Southern North Sea and Irish Sea

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Average Forecast Cost Platform Well

Average Forecast Cost E&A Suspended Well

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Average Forecast Cost Subsea Development Well

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Estimated Cost per Well (£ Million - 2017 Money)

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2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

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Platform Wells

E&A Wells

Development Wells

Source: Oil & Gas UK, OGA

Well Decommissioning

2016 Survey Average 2017 Survey Average 2018 Survey Average

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Platform Wells

£2.32 million £8.18 million

£2.81 million £7.77 million £3.44 million

£1.70 million £5.35 million £2.29 million

Subsea Development Wells

Exploration and Appraisal Wells £7.44 million

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Forecast well decommissioning costs are seen to be decreasing, with step changes in almost all areas of the UKCS year on year. Across the data set and in operator interviews, well decommissioning has been identified as an area of success in cost reduction and in estimated ‘days per well’. These repetitive gains are being applied to yearly reported forecasts, contributing to this downward trend.

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