Decommissioning Insight 2019

Contents 1 Foreword 2 Key Findings

The UK Oil and Gas Industry Association Limited (trading as OGUK) 2019 OGUK uses reasonable efforts to ensure that the materials and information contained in the report are current and accurate. OGUK offers the materials and information in good faith and believes that the information is correct at the date of publication. The materials and information are supplied to you on the condition that you or any other person receiving them will make their own determination as to their suitability and appropriateness for any proposed purpose prior to their use. Neither OGUK nor any of its members assume liability for any use made thereof.

4 6 8

3 Decommissioning in 2019

3.1 3.2 3.3 3.4 3.5 3.6 4.1 4.2

2019 — A Busy Year for Decommissioning 9

UK Decommissioning in Context

12

Expenditure and Activity Overview 14

Ten-Year Expenditure Breakdown Ten-Year Regional Overview Ten-Year Regional Breakdown

17 19 22 25 26 27 30 32

4 The UK's Role in a Global Market

Developing a Strategic Framework

The UK — A Global Hub for Decommissioning Background and History Insight and Cost Trends in Decommissioning The Future — Challenges and Opportunities

5 A Decade of Decommissioning Insight

5.1 5.2

33

5.3

34 35

6 North Sea Activity

6.1 6.2

North Sea Well Decommissioning Activity 36

North Sea Topsides Decommissioning Activity

40

6.3

North Sea Substructures Decommissioning Activity Forecast UKCS Activity — A Detailed Snapshot Well Decommissioning

41 42 43 46 54 56

7 The UK in Detail

7.1

OGUK's vision is to ensure the UK Continental Shelf becomes the most attractive mature oil and gas province in the world with which to do business. Read all our industry reports at www.oilandgasuk.co.uk/publications

7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9

Well Decommissioning Cost Performance 51

Topsides Removal

Substructure Removal

Topsides and Substructure Decommissioning Cost Performance

56

Subsea Infrastructure Decommissioning 60 Survey Development and Methodology 63

Maturity of Estimates

64 65

8 Glossary

3