Decommissioning Insight 2019

DECOMMISSIONING INSIGHT 2019

7.6 Topsides and Substructure Decommissioning Cost Performance

Figure 30: Historical Variation in Removal Costs per Tonne in the Central and Northern North Sea and West of Shetland

25,000

Average Forecast Topside Removal Cost per Tonne Average Forecast Substructure Removal Cost per Tonne

20,000

15,000

10,000

5,000

Estimated Cost per Tonne (£ - 2018 Money)

0

2017

2018

2019

2017

2018

2019

Topside

Substructure

Source: OGUK, OGA

2017 Survey

2018 Survey

2019 Survey

Removals – Cost per Tonne

Average

Median

Average

Median

Average

Median

Topside

£3,245

£2,875

£1,707

£2,258

£1,757

£1,977

Substructure

£3,817

£5,159

£2,817

£2,970

£2,764

£2,838

The forecast removal costs per tonne of topsides in the central and northern North Sea has stayed consistent with expectations in last year’s Insight report, but still indicates significant reductions from 2017. This year’s removal cost per tonne of topsides in this region is 54 per cent of that expected in 2017. There has been a year-on-year reductions since 2017 in the expected removal costs per tonne for substructures in this region with average removal costs for substructures at around 70 per cent of what was expected in 2017.

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