Decommissioning Insight 2017

Figure 18: Historical Variation in the Removal Cost per Tonne for Topsides and Substructures in the Southern North Sea and Irish Sea

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

5

2,000

Estimated Cost per Tonne (£ - 2016 Money)

0

2013

2014

2015

2016

2017

Topside and Substructure

Source: Oil & Gas UK, Asset Stewardship Survey

Removal Cost per Tonne Topside and Substructure

2016 Survey Average

2017 Survey Average

£3,900

£3,600

Approaches to Cost Reduction The market for heavy-lift vessels required for topside and substructure removals is well-established, particularly for platforms that can be removed by single-lift using smaller barges. As the market matures, vessels such as the Pioneering Spirit are being built to lift heavier loads 19 and the supply chain is increasingly offering integrated packages that combine different decommissioning activities into a single contract, often through consortiums of several companies that individually offer very different services. With topside and substructure removal and the associated preparatory work representing 21 per cent of total decommissioning expenditure on the UKCS to 2025, efficiency gains in this area will have a substantial impact in lowering the overall cost of decommissioning.

19 See www.allseas.com/equipment/pioneering-spirit

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