Decommissioning Insight 2018

UKCS

decommissioning spend over the next decade 49%

Decommissioning accounted for around 8 per cent of overall UKCS oil & gas industry expenditure in 2018

DECOMMISSIONING INSIGHT 2018

of forecast expenditure up to 2027

7 International Activity

In Summary F ollowing on from the 2017 report, the 2018 Decommissioning Insight provides a joint activity forecast for four regions of the North Sea: the UK, Norwegian, Danish and Dutch sectors. Forecasts are provided for the next ten years, enabling operators and the supply chain to plan for decommissioning in the most cost- effective way. Almost 2,400 wells are expected to be decommissioned over the whole North Sea and west of Shetland region in the next ten years. Over 900 of these are located across the Norwegian, Danish and Dutch sectors. Norway, Denmark and the Netherlands are also forecast to remove 347,733 tonnes of topsides and decommission 195,067 tonnes of substructure over the next decade. In comparison, this international activity is less than the levels we see in the UKCS over the same period but is not insignificant. With much of the activities all over the North Sea occurring concurrently it is important that these regions work with each other to ensure work scopes can be conducted cost-efficiently, and lessons and experiences shared. Decommissioning will open new markets for the UK supply chain, a key comp nent of 203 fields in the UKCS are to undergo decommissioning activity over next decade Meeting, then beating, the 35% cost reduction target will be key to unlocking the global market The UK is recognised as a global leader in decommissioning shaping the agenda technically,

2,379 wells parallel with the drive to maximise economic recovery of resources are expected to be decommissioned in the North Sea over the next ten years Decommissioning is a growing market in

well costs to fall across eas of the rth Sea

5

unit

cost

Subsea infrastructure removal accounts for 11.3 per cent of forecast expenditure Over 950,000 tonnes of topsides are fore ast to be removed across the North Sea;

issioning on KCS offers r advantage for supply chain

c

#1

commercially, regulatory and environmentally;

over 605,000 tonnes will be from the UKCS

The UK is the largest global market for decommissioning spend over the next decade

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

firs

t

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

5,724 km of pipelines are slated for

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