Wireline Spring 2018

Oil & Gas UK | News Round-Up

12. Offering the latest in decommissioning intelligence An insight into how the North Sea decommissioning market will take shape over the next nine years is the focus of one of two new publications available from Oil & Gas UK. The Decommissioning Insight captures for the first time an even broader picture of The decommissioning opportunities across the North Sea in the UK, Norway, Denmark and the Netherlands from 2017-25. It reveals that alongside efforts to maximise economic recovery, the decommissioning market is growing steadily. The report should help operators planning to decommission assets and assist supply chain companies in understanding future demand for their services and expertise within a wider North Sea context. The second publication – the Steel Piled Jacket Report – provides an up-to-date overview of decommissioning offshore structures known as steel piled jackets and will be used within the framework of the OSPAR review of regulations for decommissioning this year.

Michael Tholen, upstream policy director at Oil & Gas UK, says: “These reports demonstrate the UK’s growing expertise in decommissioning and these capabilities

have been developing alongside the industry’s focus on more productive activities in oil and gas production. They highlight that there

is a very real opportunity for the UK’s decommissioning sector to develop competitive capabilities and become a champion of excellence in the global arena.” Decommissioning Insight – Facts and Figures, November 2017

Get your copies of the Decommissioning Insight and the report on Decommissioning of Steel

Piled Jackets in the North Sea Region at www.oilandgasuk.co.uk/publications.

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The North Sea Decommissioning Market i i i

£400 – £800 million on the Norwegian Continental Shelf per year £650 – £800 million £400 – illi t e r egia e tal S elf er year illi £400 – i l l

Supply chain companies must be able to compete in a global marketplace for decommissioning contracts on quality, efficiency and cost S ly c ai c a ies st e a le t c ete i a gl al arket lace for decommissioning c tracts ality, e cie cy a c st l i i l i l l la i i i li i

The fall in oil price has not caused a rush to decommission as companies look to extend or maintain field life by improving efficiencies T e fall i il rice as t ca se a r s t ec issi as c a ies l k t exte r ai tai el life y i r vi g e cie cies ll i il i i i i l i i l li i i i i

Decommissioning is a growing market in parallel with the drive to maximise economic recovery of resources ec issi i g is a gr i g arket in parallel with the drive t axi ise ec ic recovery of resources i i i i i i ll l i i i i i

£1.7 – £2 billion on the UK Continental Shelf per year Forecast decommissioning expenditure over the next five years: . £2 billi t e e tal S elf er year F recast ec issi i g expenditure ver t e ext ve years: l l mi i i i

The UK Continental Shelf currently has T e e tal S elf c rre tly as t e largest rt Sea issi i g arket re ec g its rela ve scale and life cycle stage U l l l l e i i i g i l l li l the largest North Sea decommissioning market reflecting its relative scale and life cycle stage ec

total on the Dutch Continental Shelf t tal t e tc e tal S elf l l l

Forecast Activity Across the North Sea

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Over 200 platforms are expected to be removed in the North Sea from 2017 to 2025 ver 200 la r s are ex ecte t e re ve i t e rt Sea fr 2017 t 2025 l i

Decommissioning activity is forecast on 349 fields across the UK, Norwegian, Danish and Dutch Continental Shelves to 2025 ec issi i g ac vity is f recast 349 el s acr ss t e , r egia , a is a tc e tal S elves t 2025 i i i i i l i i l l

Nearly 7,800 kilometres of pipeline are forecast to be decommissioned across the North Sea early 7,800 kil etres f i eli e are f recast t e ec issi e acr ss t e rth Sea l il i li i i

Almost 2,500 wells l st wells l ll

are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK are f recast t e l gge a a a e acr ss t e rt Sea t 2025, it re t a t -t ir s i t e l i i i

UK Continental Shelf in Focus

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Operators forecast that total decommissioning spend on the UK Continental Shelf will be £17 billion between 2017 and 2025 erat rs f recast t at t tal ec issi i g s e t e e tal S elf will be £17 bi between 2017 a 2025 l i i i l l will

Well plugging and abandonment is the largest category of expenditure at almost 50 per cent ell l ggi g a a a e t is t e largest categ ry f ex e diture at al st 50 er ce t ll l i i l i a l

Industry is striving to carry out decommissioning cost-effectively, while maintaining high safety and environmental standards I stry is strivi g t carry t ec issi i g c st-e ec vely, ile ai tai i g ig safety a e vir e tal sta ar s i i i i i i l il i i i i i l

The average forecast T e average f recast

reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeting a 35% re c i S ec issi i g c sts y 2035 T e il a as t rity is targe g a i i i i il i i

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46% % 6

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for well plugging and abandonment has fallen across all well types and regions of the UK Continental Shelf f r ell l ggi g a a a e t as falle acr ss all ell ty es a regi s f t e e tal S elf ll l i ll ll ll i l l

of total decommissioning spend from 2017 to 2025 will be concentrated in the central North Sea f t tal ec issi i g s e fr 2017 t 2025 ill e c ce trate i t e ce tral rt Sea l i i i ill i l

oilandgasuk.co.uk /decommissioninginsight . . i i i i i il

#ogDecomInsight I i

Download the infographics at http://bit.ly/DecomFacts.

SPRING 2018 | 9

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