Decommissioning Insight 2022

3.4 Well decommissioning Well decommissioning activity increases until 2028: Figure 7 shows the plan for decommissioning 2,102 wells on the UKCS over the next decade. This is up from the 1,782 forecast in the Decommissioning Insight Report 2021 . Activity increases from 2020 until 2024, dips in 2025 and resumes in

2026. Activity peaks in 2028 with 313 wells forecast, close to the 2019 total of 288. Following this well decommissioning trends become uncertain as we return to early 2020 levels of activity in 2029.

Figure 7 Well decommissioning in the UKCS

Figure 8 Estimated cost per well

14

350

Average = £7.89m Median = £7.63m

Platform Wells - Forecast

Average = £4.01m Median = £3.65m

Subsea Wells - Forecast

12

300

Average = £7.96m Median = £8.30m

Suspended Subsea Wells - Forecast

Average = £4.42m Median = £5.76m

Average = £7.81m Median = £7.77m

10

250

Average = £4.36m Median = £4.29m

8

200

Average = £2.56m Median = £2.43m

6

Average = £2.70m Median = £2.65m

150

Average = £2.76m Median = £2.93m

4

100

2

Number of wells to be decommissioned

50

Estimated cost per well for the UKCS (£ Million)

0

2020

2021

2022

2020

2021

2022

2020

2021 E&A

2022

0

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Platform

Subsea

Source: NSTA & OEUK

Source: NSTA & OEUK

DECOMMISSIONING INSIGHT 2022

15