Decommissioning Insight 2019

wells OGA target reduc�on in decommissioning expenditure by 2035 against a 2016 baseline are expected to be decommissioned in the North Sea over the next ten years

ferring ac�vity CNS while d SNS regions

billion is forecast to be spent on decommissioning in the UKCS by 2028

billion will be spent per year on the UKCS up to 2027

– Facts and Figures

DECOMMISSIONING INSIGHT 2019

n increase penditure

7. The UK in Detail

34km of line to be missioned UKCS ext decade

The UK is the largest global market for decommissioning spend over the next decade 48% of UK expenditure is in the central North Sea

2,624 wells to be decommissioned in the North Sea Basin 1,630 of which are in the UKCS M&A deferring ac�vity in the CNS while NNS and SNS regions 49% Well decommissioning is the source of greatest cost, with of forecast expenditure up to 2027 see an increase in expenditure

In Summary The primary objective for the UK industry and government is for decommissioning to be carried out in an environmentally sound, safe and cost-efficient manner, but only once the maximum economic potential of resources has beenmet. TheOGA and industry together are targeting a 35 per cent reduction in the total costs of decommissioning, based on the 2017 baseline expectation of £59.7 billion. As a by-product of the OGA’s cost-efficiency focus, decommissioning estimates are also becoming more accurate, with more certainty in this year’s figures than ever before. Over the next decade the UK intends to decommission one-fifth of its total well stock, 20 per cent of the overall installations in the UKCS, and almost one-quarter of the pipeline infrastructure. With the industry striving towards becoming more efficient, decommissioning activity has increased for all infrastructure types whereas the overall expenditure is consistent — so operators are expecting to conduct more work for the same cost. The industry is learning to plan decommissioning work scopes strategically, aligning schedules to fit with the supply chain capacity. Up to 2025, around 12 platforms will be removed from the North Sea each year, a sustainable workload for the supply chain. 2,379 wells 10% Decommissioning now represents just under 10 per cent of the overall expenditure in the UK oil and gas industry Decommissioning will open new markets for the UK supply chain, a key component of

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203 fields in the UKCS are to undergo decommissioning ac�vity over next decade

During 2017, the number of wells decommissioned rose above wells drilled for the first �me 6,234km of pipeline to be decommissioned in UKCS over n xt decad Decommissioning is a growing market in parallel with the drive to maximise economic recovery of resources

well costs to fall across reas of the rth Sea

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

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Unit well costs con�nue to fall across all areas of the North Sea Steady workload of 12 topsides to be decommissioned per year in the UKCS up to 2025

issioning on KCS offers r advantage for supply chain

Mee�ng, then bea�ng, the 35% cost reduc�on target will be key to unlocking the global market

2,624 wells to be decommissioned in the North Sea Basin 1,630 of which are in the UKCS The UK is recognised as a global leader in decommissioning shaping the agenda technically,

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