Decommissioning Insight 2019

DECOMMISSIONING INSIGHT 2019

Figure 27: Historical Variation in Well Decommissioning Cost Forecasts in the Southern North Sea and Irish Sea

16

Average Forecast Cost Platform Well

14

Average Forecast Cost E&A Suspended Well Average Forecast Cost Subsea Development Well

12

10

8

6

4

2

Estimated Cost per Well (£ Million - 2018 Money)

0

2017 2018 2019

2017 2018 2019

2017 2018 2019

Platform

Subsea

E&A

Source: OGUK, OGA

2017 Survey

2018 Survey

2019 Survey

Decommissioning – Cost per Well

Average

Median

Average

Median Average

Median

Platform Wells

£2.89m £3.31m £1.70m £1.72m £2.28m £2.33m

Subsea Wells

£5.01m £5.20m £5.35m £5.39m £5.42m £4.99m

E&A Wells

£4.97m £7.19m £2.29m £1.05m £2.45m £2.91m

Forecast averages and medians for well decommissioning in the southern North Sea region have remained relatively consistent over the past three years, however there have been minor uplifts in average costs per well across all well types when compared to last year’s report. The southern North Sea and Irish sea regions have seen a lot of well decommissioning activity over the past three years and experience is now driving these forecasts which convey a plateau in the region.

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