Decommissioning Insight 2019

7.3 Well Decommissioning Cost Performance Throughout the years, Insight reports have seen generally improving trends for forecast cost performance in well decommissioning and removals. The figures below show how the expected averages and medians have changed over time for these respective activities within each Asset Stewardship Survey.

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Figure 26: Historical Variation in Well Decommissioning Cost Forecasts in the Central and Northern North Sea and West of Shetland

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Average Forecast Cost Platform Wells

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Average Forecast Cost E&A Wells

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Average Forecast Cost Subsea Development Wells

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15

5

10

5

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Estimated Cost per Well (£ Million - 2018 Money)

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2017 2018 2019

2017 2018 2019

2017 2018 2019

Platform

Subsea

E&A

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Source: OGUK, OGA

2017 Survey

2018 Survey

2019 Survey

Decommissioning – Cost per Well

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Average

Median Average

Median

Average

Median

Platform Wells

£4.20m £4.83m £4.19m £4.20m £3.43m £2.91m

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Subsea Wells

£8.25m £9.65m £9.33m £8.91m £8.38m £9.01m

E&A Wells

£7.41m £6.38m £5.02m £4.88m £4.59m £3.70m

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In the central and northern North Sea regions, the expected cost per platform well is £3.43 million. Subsea wells here have fluctuated at around £8.3 million, but the uncertainty range has reduced, while the expected averages and median costs per E&A well has also seen a year-on-year reduction.

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