Wireline Issue 42 - Summer 2018

Supply Chain | Resilience

Decommissioning Insight – Facts and Figures, November 2017

oning Insight ovember 2017 sight 7 ioning Insight November 2017 g Insight er 2017 n oil price has sed a rush to mission as nies look to maintain field improving ciencies The UK Continental Shelf currently has ket The UK Continental Shelf currently has

Sea Decommissioning Market

Surveying the decom landscape Oil & Gas UK’s Decommissioning Insight shows how the North Sea market will take shape over the next nine years, and captures a broader picture of the opportunities in the UK, Norway, Denmark and The Netherlands. Alongside efforts to maximise economic recovery, the decommissioning market is growing steadily. It reveals that: Supply chain companies must be able o compete in a global marketplace

£1.7 – £2 billion on the UK Continental Shelf per year Forecast decommissioning expenditure over the next five years: £400 – £800 million on the Norwegian Continental Shelf per year £650 – £800 million total on the Dutch Continental Shelf

The fall in oil price h s not caused a rush to decommission as companies look to extend or maintain field life by improving efficiencies £1.7 – £2 billion on the UK Continental Shelf per year Forecast decommissioning expenditure over the next five years:

The North Sea Decomm

The North Sea Decommissioning Mark t The Nor Sea Decommissioning Market

The North Sea Decom issioning Market

for decom issioning contracts on quality, efficiency and cost

The fall in oil price has not caused a rush to decommission as companies look to extend or maintain field life by improving efficiencies for decommissioning contracts n quality, e cy and cost Supply chain companies must be able to compete in a global marketpl c for decommission ng contracts on quality, efficiency a d cost Supply chain companies must be able to compete in a global marketpl ce

The fall in oil price has not caused a rush to decommission as companies look to extend or maintain field life by improving efficiencies Decommissioning is a growing market in parallel with the drive to maximise economic recovery of resources

The UK Continental Shelf currently has £400 – £800 million on the Norwegian Continental Shelf per ye r £650 – £800 million £400 – £800 million the Norwegian tal Shelf per year £650 – £800 million total on the Dutch Continental Shelf total on the Dutch Continental Shelf

The fall in oil price has not caused a rush to decommission as companies look to extend or maintain fi ld life by improving efficiencies

£400 – £800 million on the Norwegian Continental Shelf per year £650 – £800 million

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

Supply chain companies must be able to compete in a global marketplace for decommissioning contracts on quality, efficiency and cost £1.7 – £2 billion on the UK Continental Shelf per year Forecast decommissioning expenditure over the next five years: £1.7 – £2 billion on the UK Continental Shelf per year Forecast decommissioning expenditure over the next five years:

: mmissioning et reflecting its relative scale and e cycle stage The UK nental Shelf urrently has the largest North Sea

the largest North Sea The North Sea De mmi sioning Market

the largest North Sea £400 – £800 million on the Norwegian Continental Shelf per year £650 – £800 million The UK Continental Shelf currently has the largest North Sea decommissioning market reflecting its relative scale and lif ycle s age the largest North Sea decommissioning market reflecting its relative scale and life cycle stage total on the Dutch Continental Shelf

decommissioning market reflecting its relative scale and life cycle stage Forecast decommissioning expenditure over the next five years:

£400 – £800 million on the Norwegian Continental Shelf per year £650 – £800 million

decommissioning market reflecting its relative scale and life cycle stage

Supply chai must be abl in a global for decom contracts efficienc

The fall in oil price has not caused a rush to decommission as companies look t extend or mai ain field life by improving efficiencies

total on the Dutch Continental Shelf

Supply chain companies must be able to c mpete in global marketplace for decommissioning contracts £1.7 – £2 billion on the UK Continental Shelf per year

Activity Acro s he North Sea

Forecast Activity Across the North Sea Forecast Activity ross the North Sea

Forecast Activity Across the North Sea

Forecast Activity Acros

total on the Dutch Continental Shelf

ar

Almost 2,500 wells removed in the North Sea from 2017 to 2025 Almost 2,500 wells Over 200 platforms are expected to be

Over 200 platforms are expected to be removed in the North Sea from 2017 to 2025 Nearly 7,800 kilometres of pipeline are for cast to be decommissioned across the North Sea Almost 2,500 wells are forecast to be plugged an abandoned across the N rth Sea up to 2025, with more than two-thirds in the UK Decommissioning activity is forecast on 349 fields across the UK, Norwegian, Danish and Dutch Continental Shelves to 2025 Ov r 200 platforms are expected to be Over 200 platforms are expected to be removed in the North Sea from 2017 to 2025 Over 200 platforms are expected to be removed in the North Sea from 2017 to 2025 Nearly 7,800 kilometres of pipeline are forecast to be decommissioned across the North Sea Nearly 7,800 kilometres of pipeline are forecast to be decommissioned across the North Sea

a oning cast on s the UK, anish tinental 025 orwegian, Danish Dutch Continental Shelves to 2025 st 00 ls ecommissioning tivity is forecast on fields across the UK,

Decommissioning activity is forecast on 349 fields across the UK, Norwegian, Danish and Dutch Continental Shelves to 2025

Nearly 7,800 kilometres of pipeline are forecast to be decommissioned across the North Sea

Almost 2,500 wells

Almost 2,500 wells

Forecast Activity Across the North Sea

are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK

are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK Almost 2,500 wells

Decommissioning activity is forecast n 349 fields across the UK, Norwegian, Danis and Dutch C ntinental Shelves to 2025

Over 200 platforms are expected to be removed in the North Sea from 2017 to 2025 removed in the North Sea from 2017 to 2025 Nearly 7,800 kilometres of pipelin ar forecast to be decommissioned across the North Sea

Nearly 7,800 kilometres of pipeline are forecast to be decommissioned across the North Sea are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK

are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK

st to be abandoned orth Sea up more than in the UK

UK Continental Shelf in Focus

UK Continental Shelf in Focus

MONTROSE has steadily augmented its maritime infrastructure for the industry since an oil and gas service base was first established at the Angus town in the 1970s. The port effectively comprises two large quays, one on either side of the River South Esk as it reaches the North Sea, and the process of improvement has taken on extra impetus in recent years. Around £15 million has been invested in quayside upgrade work since 2010, including opening two new deepwater berths on the south quay in 2011, as well as deepening and strengthening two berths on its north quay. 46% Industry is striving to carry out decommissioning cost-effectively, while maintaining high safety and environmental standards Well pluggin and abandonment is the largest category of expenditure at almost 50 per cent of total decommissioning spend from 2017 to 2025 will be concentrated in the central North Sea 46% Well plugging an abando t is the largest category of expenditure at almost 50 per cent reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeti g a 35% ontinen al She f n Focus gging onment t category iture at per cent Similar enhancement work is starting this year on a further two berths on the north quay, taking the overall investment to well over £20 million. In this latest project, the quayside at the berths in question is being strengthened to 7.5 tonnes per > .co.uk /decommissioninginsight Well plugging and abandonment is the largest category of expenditure at almost 50 per cent Operators forecast that total decommissioning spend on the UK Continental Shelf will be £17 billion between 2017 and 2025 are forecast to be plugged and abandoned across the North Sea up to 2025, with more than two-thirds in the UK Well plugging and abandonment is the largest category of expenditure at almost 50 per cent of total decommissioning spend from 2017 to 2025 will be concentrated in the central North Sea issioning 7 to 2025 rated in rth Sea t tal decommissioning d from 2017 to 2025 l be concentrated in e central North Sea g 46%

Nearly 7,800 kilometres of pipeline are forecast to be decommissioned across the N rth Sea

UK Contin ntal Shelf in Focus

Industry is striving to carry out decommissioning cost-effectively, while maintaining high safety and environmental standards The Oil and Gas Authority is targeting 35% reduction in UKCS decommissioning costs by 2035 Well plugging and abandonment is the largest category Industry is strivi g to carry out decommissioning cost-effectively, while maintaining high safety and environmental standards cost maintaining high safety and environmental standards The av ra forecast unit Industry is striving to carry out decommissioning cost-effectively, while

The average forecast UK Continental Sh The average forecast

reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeting a 35% reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeting a 35%

reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeting a 35% 46% Industry is striving to carry out decommissioning cost-effectively, while maintaining high safety and environmental standards of total decommissioning spend from 2017 to 2025 will be concentrated in the central North Sea reduction in UKCS decommissioning costs by 2035 The Oil and Gas Authority is targeting a 35%

unit

The average forecast

cost

UK Continental Shelf in Focus

unit

of expenditure at almost 50 per cent Industry is striving to carry out decommissioning cost-effectively, while maintaining high safety and environmental standards for well plugging and abandonment has fallen across all well types and regions of th UK Continental Shelf unit cost for w ll plugging and abandonment has fallen across all well types and regions of the UK Continental Shelf

for well plugging and abandonment has fallen across all well types and regions of th UK Continental Shelf cost The aver for well plugging and abandonment has fallen across all well types and regions of the UK Continental Shelf #ogDecomInsight

The average forecast unit cost for well plugging and abandonment has fallen across all well types and regions of the UKCS

oilandgasuk.co.uk /decommissioninginsight

oilandgasuk.co.uk /decommissioninginsight

#ogDeco for well p abando fallen ac

25

The average forecast

#ogDecomInsi types and UK Conti

oilandgasuk.co.uk /decommissioninginsight

unit

oilandgasuk.co.uk /deco

Download the Decommissioning Insight at www.oilandgasuk.co.uk/ decommissioninginsight. Access Oil & Gas UK’s range of decommissioning literature at www.oilandgasuk.co.uk/ decommissioning-literature.

cost

oilandgasuk.co.uk /decommissioninginsight

#o

#ogDecomInsigh

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

W I R E L I N E | S UMMER 2018 | 3 1