Decommissioning Insight 2016 - Oil & Gas UK

Figure 38 overleaf breaks down the total forecast expenditure of £17.6 billion by Work Breakdown Structure component proportion for different project types:

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• All UKCS projects • Subsea projects • Platform removal projects • FPSO vessel projects 29

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It is important to note that the graphs only include the breakdown of expenditure that falls within 2016 to 2025. Decommissioning projects can span many years and therefore some expenditure associated with a project may fall outside the survey timeframe. There are 13 FPSOs forecast to be decommissioned on the UKCS over the next decade, 12 of which are located in the central North Sea. Decommissioning a field serviced by an FPSO primarily involves subsea activity, although some expenditure is also associated with disconnecting the FPSO. Following disconnection, FPSOs are typically relocated or sold for reuse or recycling. These activities are reflected in the breakdown of expenditure seen in Figure 38. The total forecast decommissioning expenditure for fields serviced by an FPSO is £2.6 billion.

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29 Total expenditure for platform removal projects, FPSO projects and subsea projects is £17.3 billion. This does not equal total forecast expenditure because some projects do not fall clearly into one category and therefore have not been used to calculate the Work Breakdown Structure percentage for individual project types.

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