Decommissioning Insight 2018

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The spend over this next decade is almost 20% lower than forecasts made last year would have suggested. Reductions have been driven by improved productivity (including cost reduction, efficiency improvement and deflation) coupled with the movement of activity beyond 2027. This demonstrates that the decommissioning market is maturing and making significant inroads to deliver on its 35% cost reduction target DELIVERING ON EFFICIENCY

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Forecast unit well decommissioning costs are reducing across all areas of the North Sea, and have

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fallen by an average of

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Some individual projects have seen the average amount of days spent on well decommissioning

Forecast costs per tonne for the removal of topsides in the central and northern North Sea have,

while the cost of removal per tonne for a substructure in this area has 16% fallen by

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halve

throughout the lifecycle of a project

13%,

fallen by

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GLOBAL OPPORTUNITY The UK is the largest market for decommissioning spend over the next decade, representing one-third of expenditure across the top 12 markets

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The UK’s structured approach to decommissioning (as envisioned in the Work Breakdown Structure ) is setting a global performance framework

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[Wood Mackenzie]

Decommissioning on the UKCS offers first-mover advantage, which the UK’s supply chain can capitalise on, with the correct help Meeting, then beating, the 35% cost reduction target will be key to unlocking the global market, allowing the UK to position itself as an expert on a world scale

The UK is recognised as a global leader in decommissioning shaping the agenda technically,

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commercially, regulatory and environmentally

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