Decommissioning Insight 2017

DECOMMISSIONING INSIGHT 2017

UK Northern North Sea and West of Shetland • Forecast activity in these regions has increased from 428 to 568 wells. The 140 additional wells all lie towards the end of the survey timeframe. This increase is primarily due to greater survey coverage rather than the acceleration of well P&A. • Large and complex decommissioning projects, which have long been in operators’ plans, are driving nearer-term activity (up to 2021). • Seventy per cent of wells (399) forecast for P&A are platform wells. • Year-on-year activity is at around 50 wells per year, until 2023 when a new wave of projects start, peaking at 153 wells in 2023.

Figure 3: Well P&A Forecast in the Northern North Sea and West of Shetland

180

Suspended Exploration and Appraisal Wells Subsea Development Wells Platform Wells

160

140

120

100

80

60 Number of Wells

40

20

0

2017 2018 2019 2020 2021 2022 2023 2024 2025

Source: Oil & Gas UK, Asset Stewardship Survey

Number of Wells

Proportion that are Platform Wells

Forecast Expenditure

568

70%

£2.6 billion

18