Economic Report 2016 - Oil & Gas UK

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Figure 32: Decommissioning Expenditure
0.0
0.5
1.0
1.5
2.0
2.5
2010 2011 2012 2013 2014 2015 2016 2017
Annual Decommissioning Expenditure
(£ Billion - 2015 Money)
Historic Decommissioning Spend
Forecast Decommissioning Spend
Source: Oil & Gas UK
The recently published Decommissioning Strategy27 developed by the OGA and
industry, in conjunction with BEIS, seeks to transform this activity. The strategy
is predominantly targeting a total decommissioning cost reduction of at least
35 per cent by focusing on three priority areas:
• Cost certainty and reduction – driving targeted cost-efficiency programmes
including innovative and regional approaches with extensive and effective
knowledge sharing and best practice adoption.
• Decommissioning delivery capability – developing an efficient and
exportable low-cost and profitable decommissioning delivery capability
supported by a competent and efficient supply chain, a selection of business
execution models, all designed to appropriately allocate risks, align industry
participants and drive down costs.
• Decommissioning scope, guidance and stakeholder engagement – identifying and evaluating opportunities
to further optimise and define parameters for decommissioning scope and improve industry engagement with
the regulators.
More information on decommissioning will be available in Oil & Gas UK’s forthcoming Decommissioning Insight, due
to be launched at the annual Decommissioning Conference in November 2016.
27 The Decommissioning Strategy is available to download at
Late-life asset
management and
decommissioning
offers scope for
the UK supply
chain to diversify.