Economic Report 2018

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Allseas Pioneering Spirit lifts the Brent Delta topsides Photograph courtesy of Allseas

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Equally, numerous investments are being made in the development of technology to reduce the cost of well decommissioning, which represents proportionally the highest cost in the decommissioning scope. One example is the recent field trial by Spirit Energy, in conjunction with the OGTC, of the Interwell-designed ‘Thermite Plug’. This technology takes a radical approach to sealing a well bore at the end of its useful life by using molten rock, rather than conventional cement, to form a permanent seal. Progress – Regulations and Regulators The principal regulators in decommissioning are the Offshore Petroleum Regulator for Environment and Decommissioning (OPRED), which is under BEIS and is empowered under the Petroleum Act (1998), and the OGA, which was established under the Energy Act (2016). OPRED is responsible for approving the decommissioning programmes prepared by licensees. TheOGA, meanwhile, has a statutory duty to seek the optimum cost outcome in decommissioning, as well as approving Cessation of Production (CoP) applications. In parallel, the Offshore Safety Directive Regulator (OSDR) ensures that the statutory safety regulations are adhered to throughout decommissioning operations.

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