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DECOMMISSIONING INSIGHT REPORT

2016

58

With the exception of one suspended subsea E&A well in the Norwegian Sea, all of the decommissioning activity

over the next decade is located in the Norwegian North Sea region. As illustrated in Figure 39, the proportion of

forecast expenditure attributed to each Work Breakdown Structure component varies significantly across the

10 out of 14 platform removal projects that provided data.

Figure 39: Total Forecast Decommissioning Expenditure on the Norwegian Continental Shelf

by Work Breakdown Structure Component for Platform Removal Projects

0%

10%

20%

30%

40%

50%

60%

70%

80%

Owners' Costs

Well P&A

Topside Removal

Substructure Removal

Proportion of Total Expenditure per Work Breakdown

Structure Category

Average Forecast Cost

Range in Cost Forecasts

Source: Oil & Gas UK

Average

Range

Owners' costs

11%

3-32%

Well P&A

56%

33-75%

Topside removal

19%

6-33%

Substructure removal

12%

5-16%