Decommissioning Insight 2016 - Oil & Gas UK

DECOMMISSIONING INSIGHT REPORT 2016

With the exception of one suspended subsea E&A well in the Norwegian Sea, all of the decommissioning activity over the next decade is located in the Norwegian North Sea region. As illustrated in Figure 39, the proportion of forecast expenditure attributed to each Work Breakdown Structure component varies significantly across the 10 out of 14 platform removal projects that provided data.

Figure 39: Total Forecast Decommissioning Expenditure on the Norwegian Continental Shelf by Work Breakdown Structure Component for Platform Removal Projects

80%

Average Forecast Cost

70%

Range in Cost Forecasts

60%

50%

40%

30%

Structure Category

20%

10%

0%

Proportion of Total Expenditure per Work Breakdown

Owners' Costs

Well P&A

Topside Removal

Substructure Removal

Source: Oil & Gas UK

Average

Range 3-32% 33-75% 6-33% 5-16%

Owners' costs

11% 56% 19% 12%

Well P&A

Topside removal

Substructure removal

58