Decommissioning Insight 2017

349 fields across the UK, Norwegian, Danish and Dutch Continental Shelves to 2025

on the Norwegian Continental Shelf per year £650 – £800 million

Forecast decommissioning expenditure over the next five years:

Supply chain companies must be able to compete in a global marketplace for decommissioning contracts on quality, efficiency and cost

In Summary T he primary objective for the UK industry remaining resources have been economically maximised. The OGA is targeting a 35 per cent reduction in total decommissioning costs on the UKCS by 2035 from the 2017 baseline expectation of £60 billion, and is working with industry to deliver this. Looking nearer term, operators forecast that £17 billion will be spent on decommissioning in the basin from 2017 to 2025. This is 4 per cent higher than the forecast for the same period last year, due to more projects being included in the report rather than increased cost estimates for existing projects. While 90 per cent of these projects are in their early scoping stages, the data reveal that around one quarter of the total UKCS well stock is anticipated to be plugged and abandoned over the period, accounting for almost half of the expenditure. As the industry strives towards efficient decommissioning, operators are increasingly adopting an approach to late-life asset management that incorporates operational and decommissioning activities in parallel as part of their strategic planning. A good example of this is the P&A of redundant wells before the field ceases production. The anticipated cost of well P&A has fallen across the UKCS for all well types as operators increasingly look to carry out such activity in a campaign approach, whereby multiple wells are grouped to increase efficiencies. £1.7 – £2 billion on the UK Continental Shelf per year £400 – £800 million on the Norwegian Continental Shelf per year £650 – £800 million total on the Dutch Continental Shelf Decommissioning activity is forecast on 349 fields across the UK, Norwegian, Danish and Dutch Continental Sh lves o 2025 Operators f recast that total decommissioning spend in the UK Continental Shelf will be £17 billion between 2017 and 2025 Almost 2,500 wells and government is for decommissioning to be carried out in a cost-effective, safe and environmentally sound manner, but only once 5. UK Continental Shelf Expenditure Forecasts are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK Operat rs forecast that total decommissioning spend in the UK Continental Shelf will be £17 billion between 2017 and 2025 reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeting a 35% Decommissioning activit is forecast on 349 fields across the UK, Norwegian, Danish nd Dutch Continental Shelves to 2025

total on the Dutch Continental Shelf

Over 200 platforms are expected to be removed in the North Sea from 2017 to 2025 The Oil and Gas Authority is targeting a 35% reduction in UKCS decommissioning costs by 2035 are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK Operators forecast that total decommissioning spend in the UK Continental Shelf will be £17 billion between 2017 and 2025 Almost 2,500 wells

5

The average forecast

unit

cost

for well plugging and abandonment has fallen across all well types and regions of the UK Continental Shelf

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