Decommissioning Insight 2016 - Oil & Gas UK

DECOMMISSIONING INSIGHT REPORT 2016

Southern North Sea and Irish Sea

• The overall forecast for pipeline decommissioning in these regions over the next decade at 3,426 kilometres is similar to a year ago, although deferral and spreading of activity has occurred.

• Some 1,600 kilometres of trunkline are forecast to be decommissioned over the next ten years in these regions, with high activity forecast in 2019, 2020, 2023 and 2024.

• Activity is expected to peak at 700 kilometres in 2024, of which just under 500 kilometres is trunkline.

• To achieve MER UK and avoid premature decommissioning, the OGA is in discussion with operators to assess the impact of this decommissioning activity on future production and whether alternative solutions are available.

Figure 27: Forecast of Pipeline Decommissioning Activity in the Southern North Sea and Irish Sea

800

Umbilicals Other Pipelines Trunklines

Increased Uncertainty in Forecasts

700

600

500

400

300

Total Length (km)

200

100

0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Source: Oil & Gas UK

Pipeline Decommissioning 2016 to 2025

Pipeline Decommissioning (Kilometres) 2016 to 2025

Total

200

3,426

Umbilicals Trunklines

46 21

443

1,603 1,380

Other pipelines

133

40