Decommissioning Insight 2018

in UKCS

next decade

of decommissioning expenditure across the top 12 markets will be spent in the UKCS are expected to be decommissioned in the North Sea over the next ten years

billion is forecast to be spent on decommissioning in the UKCS by 2027

DECOMMISSIONING INSIGHT 2018

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5 Emerging Opportunities - Building an International Business

In Summary T he UK is emerging as a global leader in offshore With more than a decade of experience, the UK’s decommissioning supply chain has gained a competitive advantage based on its North Sea knowledge, which it should now seek to take full advantage of internationally. The UK decommissioning market has been shaped by the regulatory regime and the technical and commercial expertise that has been acquired in recent years. These high standards are helping to influence the approach other countries are looking to follow and knowledge of them can be used to our advantage. As a result, the UK is well positioned to make the most of a global decommissioning market of some $82 billion over the next decade. Quite how the UK internationalises its decommissioning capabilities is still being assessed and will, to an extent, depend on the market and location. The ‘call for evidence’ announced in Budget 2018 presents a great opportunity to focus on the areas where the UK excels and apply these internationally. Around the North Sea, the UK is poised to offer a full decommissioning service; however, looking more widely the industry may choose to focus efforts on specific high-end aspects of decommissioning such as operator costs, well decommissioning, removals and subsea infrastructure decommissioning. 2,379 wells unit cost are expected to be decommissioned in the North Sea over the next ten years 5,724 km of pipelines are slated for decommissioning by 2027 in UKCS Subsea infrastructure r moval accounts f r 11.3 per cent of forecast expenditure Unit well costs continue t fall acr ss all areas of the North Sea During 2017, the number of wells decommissioned rose above wells drilled for the first time Decommissioning on t e UKCS offers first-m ver adva ta e for the UK supply chain Subsea infrastructure removal accounts for 11.3 per cent of forecast expenditure Duri g 2017, th number of wells decommissioned rose above wells drilled for the first time decommissioning, particularly building on its technical and commercial strengths, as well as in project delivery.

The UK is the largest global market for decommissioning spend over the next decade 8% Decommissioning accounted for around 8 per cent of overall UKCS oil & gas industry expenditure in 2018 unit cost Unit well costs continue to fall across all areas of the North Sea

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2,379 wells Decommissioning will open new markets for the UK supply chain, a key component of Decommissioning on the UKCS offers first-mover advantage for the UK supply chain

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are expected to be decommissioned in the North Sea over the next ten years #1

Subsea infrastructure removal accounts for 11.3 per cent of forecast expenditure Meeting, then beating, the 35% cost reduction target will be key t unlocking he glob l market

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During 2017, the number

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