Decommissioning Insight 2018

decommissioning spend over the next decade

next decade spe d ov r th next decade

of decommissioning expenditure across the top 12 markets will be spent in the UKCS

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The UKCS in Detail

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In Summary T he primary objective for the UK industry and government is for decommissioning to be carried out in a cost-effective, environmentally sound and safe manner, but only once the maximum economic potential of resources has been met. The OGA and industry are together targeting a 35 per cent reduction in total decommissioning costs on the UKCS over time — based on the 2017 baseline expectation of £59.7 billion — and are working hard to deliver this. The data reveal that around one-fifth of the UK well stock is due to be decommissioned over the next ten years. As the industry strives towards efficient decommissioning, operators are reporting reduced rates in well decommissioning, with the average cost per well in the central and northern North Sea falling by around 16 per cent, and a 35 per cent average reduction in costs per well in the southern North Sea. Through to 2027, just over 950,000 tonnes of topsides are forecast to be removed from across the North Sea. Almost two-thirds of this is due to be removed from the UKCS. Over the same period just under 475,000 tonnes of steel piled jacket structures are tobedecommissioned — again just under two-thirds of these are in the UKCS. 2,379 wells are expected to be decommissioned in the North Sea over the next ten years Subsea infrastructure removal accounts for 11.3 per cent of forecast expenditure

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5,724 km of pipelines are slated for decommissioning 2,379 well are expected to be decommissioned in the North Sea over the next ten years 2,379 wells are expected to be decommissioned in the North Sea over the next ten years by 2027 in UKCS

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Unit well costs continue to fall across all areas of the North Sea Subsea infrastructure removal accounts for 11.3 per cent of forecast expenditure Subsea infrastructure removal acc unts for 11.3 p r c t of forecast expenditure

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Decommissioning on the UKCS offers first-mover advantage for the UK supply chain During 2017, the number of wells decommissioned rose above wells drilled for the first time During 2017, the numb r of w lls decommission rose above wells drilled for the first time

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During 2017, the number of wells decommissioned rose above wells drilled for the first time

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