Decommissioning Insight 2018

DECOMMISSIONING INSIGHT 2018

8.2 Post-CoP OPEX When a producing facility is no longer economically viable, operators can apply to the OGA for cessation of production (CoP). Post-CoP OPEX refers to operational expenditure (OPEX) after CoP has occurred. In this application, operators are required to satisfy the regulator that all economic development opportunities relating to a facility have been exhausted (including alternative use) and that any infrastructure access considerations have been addressed. 7

CoP does not mean that all work on an installation is stopped. Activity on a facility will continue until all major hazards have been removed, e.g. isolation of wells, removal of hydrocarbons and final decommissioning activities are underway.

During this period of operations, operational expenditure continues, without economic gain from production. It is therefore desirable to minimise any activity on the platform after production has ceased.

Post-CoP OPEX activities and costs will include platform operational crew, deck crew, integrity management, inspection and maintenance activities and costs associated with continuing to operate the installation such as power, water, air etc.

Post-CoP OPEX accounts for just under 10 per cent, or £1.5 billion, of the decommissioning expenditure over the next ten years.

6 https://www.ogauthority.co.uk/exploration-production/production/cessation-of-production/

54