Decommissioning Insight 2016 - Oil & Gas UK
Central and Northern North Sea and West of Shetland
Southern North Sea and Irish Sea
£4.7 billion (CNS) £2.1 billion (NNS and W o S)
Facilities ‘making safe’ and topside preparation Pipelines ‘making safe’
£89 million £1.5 billion £544 million
£192 million £104 million £503 million
£281 million £1.6 billion
Mattress decommissioning and other subsea infrastructure removal
Onshore recycling and disposal Site remediation
£94 million £21 million
£16 million £5 million
£110 million £26 million
6.2 Key Expenditure Metrics on the Norwegian Continental Shelf The Norwegian PetroleumDirectorate estimates that close to £1 billion will be spent on decommissioning in 2016 on the Norwegian Continental Shelf 30 and that annual expenditure will average at around £1 billion each year until 2020. A detailed breakdown of forecast expenditure by decommissioning component is not available for the Norwegian Continental Shelf, and operators have instead indicated the proportion of decommissioning expenditure associated with the following four categories for 10 out of 14 removal projects within the survey timeframe.
• Operator project management/facility running costs (owners’ costs) • Well P&A • Topside removal • Substructure removal 31
As on the UKCS, the largest category of expenditure is well P&A, which operators estimate to account for, on average, 56 per cent of the total forecast expenditure. Depending on the project, this component ranges from 33 to 75 per cent. Topside and substructure removal together are expected to account for 30 per cent of total expenditure on average, while owners’ costs come to 11 per cent.
30 See Norwegian Petroleum Directorate www.npd.no/en 31 For some projects, some expenditure is apportioned to other categories of activity in the Work Breakdown Structure, such as pipeline decommissioning, which are not captured here. Total expenditure was not provided.
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