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4.2 Regional Analysis
Figure 2 shows that of the £14.6 billion forecast decommissioning expenditure from 2014 to 2023, 43 per cent
(£6.3 billion) will be concentrated in the CNS, 33 per cent (£4.8 billion) in the NNS, and 24 per cent (£3.5 billion) in
the SNS and Irish Sea (IS). The higher proportion of expenditure in the CNS and NNS reflects the size and degree of
complexity of projects in these regions.
Figure 2: Total Forecast Decommissioning Expenditure on the
UK Continental Shelf by Year and Region from 2014 to 2023
0
500
1,000
1,500
2,000
2,500
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Forecast Expenditure (£ Million)
Northern North Sea
Central North Sea
Southern North Sea
Irish Sea
Increased Uncertainty in
Forecasts
Source: Oil & Gas UK
The majority of new projects captured in the survey are in the CNS area, where the expenditure has consequently
almost doubled on last year’s forecast (£3.3 billion in 2013). Most of these are subsea projects with a focus on well
P&A, although several platform removals have also been included for the first time.
4.3 Forecast Expenditure by Decommissioning Component
The WBS components that incur expenditure during decommissioning are determined by the nature of the
project. While a small subsea tie-back may only involve the P&A of a single well, decommissioning large complex
projects can incur expenditure in all WBS components. These larger programmes require significant overheads
for project management and operational costs, in addition to substantial engineering expertise, equipment
and personnel.
Operator project management costs span the entire decommissioning process and include: project management;
preparation of decommissioning programmes, studies and reports; and all related consultation and
stakeholder engagement.
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