Decommissioning Insight 2016 - Oil & Gas UK


Central and Northern North Sea and West of Shetland

Southern North Sea and Irish Sea



Owners' costs

£3.3 billion

£118 million

£3.4 billion


£4.7 billion (CNS) £2.1 billion (NNS and W o S)

Well P&A

£1.5 billion

£8.3 billion


Facilities ‘making safe’ and topside preparation Pipelines ‘making safe’

£760 million

£137 million

£897 million

£89 million £1.5 billion £544 million

£192 million £104 million £503 million

£281 million £1.6 billion

Topside removal


Substructure removal

£1 billion

Mattress decommissioning and other subsea infrastructure removal

£613 million

£149 million

£762 million


Pipeline decommissioning

£847 million

£193 million

£1 billion

Onshore recycling and disposal Site remediation

£161 million

£53 million

£214 million


£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 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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