Decommissioning Insight 2020

Figure 2: Forecast Expenditure Comparison, January and June 2020

Figure 3: Cumulative Decommissioning Expenditure Comparison

January Forecast

June Forecast

Difference

24

4 , 500

-13%

Actual Expenditure Forecast Expenditure at B eginning of 2020 For e cast Expenditure in June 2020

Year Start Estimate (£MM)

Current Estimate (£MM)

Difference (£MM)

Year

4 , 000

22

2020

1,470 1,306 1,179 3,955

1,080 1,197 1,164 3,441

-390 -109

3 , 500

20

500 Decommissioning Expenditure (£ MM ) 2021 2022 Total -27% 1 , 000 1 , 500 2 , 000 2 , 500 3 , 000

Reduced Spend Scenario 1 Reduced Spend Scenario 2

-15

18

-514

16

-8%

-1%

14

12

10

0

8

-500

(£Billion - 2019 Money)

6

-1 , 000

2020

2021

2022

Total

4

Source: OGA, OGUK

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Cumulative Decommissioning Expenditure

Source:OGA, OGUK

Figure 4: Forecast Activity Comparison, January and June 2020 Number of Platform Wells (quantity)

Number of Subsea Wells (quantity)

Substructure Mass to be Removed (tonnes)

Topsides Mass to be Removed (tonnes)

Length of Pipeline to be Decommissioned (km)

Pre 141

Post

% Pre 67% 25 90% 47 124% 28 90% 100

Post

% Pre

Post

% Pre

Post

%

Pre

Post 258 375 377

%

2020 2021 2022 Total

95 75

17 41 31 89

68% 25,570 22,861 89% 61,598 50,730 82% 514 87% 23,033 18,825 82% 81,465 89,695 110% 496 111% 22,415 24,435 109% 45,967 52,891 115% 375 89% 73,018 66,121 93% 189,030 193,316 102% 1,385 1,010

50% 76%

83 95

118 288

101%

319

73%

Work Deferred / Advanced

-375km *Including pipelines decommissioned in situ

-31 wells

-11 wells

-4,897 tonnes

+4,286 tonnes

DECOMMISSIONING INSIGHT 2020

11