Decommissioning Insight 2017

DECOMMISSIONING INSIGHT 2017

5.8 Platform Removal Costs A platform’s weight has little effect on some of the standard overheads associated with removal, including removal preparation, vessel mobilisation, sea-fastening, transportation and load-in onshore. The smallest and lightest structures, commonly found in the southern North Sea and Irish Sea, can therefore have a much larger cost per tonne for topside removal. The overall cost per platform, meanwhile, is significantly lower in these regions. Looking at the graphs below and overleaf, there is a wide range in forecast removal costs per tonne across the UKCS. Platforms at the top of the range are the smallest, weighing less than 500 tonnes. In the central and northern North Sea, most platforms are expected to fall below £6,000 per tonne for topside removal and £8,000 per tonne for substructure removal, with just a few platforms at the high-end of the cost scale. There are a variety of factors driving the removal cost for the large, complex platforms found in these regions, including weather constraints, removal method, or the ease with which removal activity can be carried out as part of a campaign.

Figure 17: Historical Variation in the Removal Costs per Tonne for Topsides and Substructures in the Central North Sea and Northern North Sea and West of Shetland

14,000

Average Forecast Topside Removal Cost per Tonne Average Forecast Substructure Removal Cost per Tonne

12,000

10,000

8,000

6,000

4,000

2,000

Estimated Cost per Tonne (£ - 2016 Money)

0

2013 2014 2015 2016 2017

2013 2014 2015 2016 2017

Topside

Substructure

Source: Oil & Gas UK, Asset Stewardship Survey

Removal Cost per Tonne

2016 Survey Average

2017 Survey Average

Topsides

£3,600 £4,300

£2,800 £4,700

Substructures

38