Decommissioning Insight 2016 - Oil & Gas UK

DECOMMISSIONING INSIGHT REPORT 2016

Southern North Sea and Irish Sea • Nearly 400 wells are forecast for P&A in the southern North Sea and Irish Sea over the next decade, an increase of 122 on last year’s report due to 17 new projects for which estimates are now available.

• Sixteen of the new projects are platform removals with predominantly platform wells.

• The proportion of platform wells has therefore increased to 80 per cent from 73 per cent in the 2015 report.

• Twenty-one wells are forecast for P&A in 2016, with 40 fewer wells to be plugged and abandoned over 2016 and 2017 as some operators postpone decommissioning expenditure in the current climate to manage cash-flow.

• Activity from new wells will be concentrated towards the end of the survey timeframe.

• The peak year of activity has slipped from 67 wells in 2019 in last year's survey to 80 wells in 2020.

Figure 5: Number of Wells Forecast to be Plugged and Abandoned in the Southern North Sea and Irish Sea

90

Platform Subsea Development Suspended Subsea E&A Wells

Increased Uncertainty in Forecasts

80

70

60

50

40

30 Number of Wells

20

10

0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Source: Oil & Gas UK

Number of Wells 2016 to 2025

Proportion that are Platform Wells

396

80%

16