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Figure 44: Historical Variation in the Removal Cost per Tonne Forecasts for Topsides
and Substructures in the Central and Northern North Sea and West of Shetland
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2011 2012 2013 2014 2015 2016
2011 2012 2013 2014 2015 2016
Topside
Substructure
Estimated Cost per Tonne (£ - 2015 Money)
Average Forecast Topside Removal Cost per Tonne
Average Forecast Substructure Removal Cost per Tonne
Range in Cost Forecasts
Source: Oil & Gas UK
Removal Cost per Tonne
2015 Survey Average
2016 Survey Average
Topsides
£3,300 per tonne
£3,000 per tonne
Substructures
£4,800 per tonne
£4,400 per tonne
Southern North Sea and Irish Sea
•
The average cost per tonne forecasts for both topside and substructure removal have both fallen by over
40 per cent to £2,600 per tonne compared with 2015 forecasts. This is because the new projects fall at the
low end of the range and there are lower forecast unit costs for topside and substructure removal reflected in
the majority of estimates.
•
This could be due to different assumptions about removal vessel day-rates. The supply of removal vessels in
these regions is greater than other areas of the UKCS because of the smaller size platforms enabling removal
by much smaller barges, driving down vessel rates more than those for large heavy-lift vessels required in the
other areas.
•
The large range in cost per tonne for both topside and substructure removal seen in the southern North Sea and
Irish Sea (see Figure 45 overleaf) is primarily due to varying approaches to platform removals. In these regions,
most operators plan to remove multiple platforms in one campaign, allowing mobilisation and other fixed
costs to be spread across the structures being removed. Projects at the bottom of the range are typically those
included in a batched approach, while those at the top of the range are largely planned as individual removals.
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