Decommissioning Insight 2016 - Oil & Gas UK

DECOMMISSIONING INSIGHT REPORT 2016

Norwegian Continental Shelf

• The average forecast unit cost for platform and subsea well P&A in Norway is £10 million and £16.1 million, respectively, for the projects included in the survey.

• These cost forecasts are substantially higher than on the UKCS, particularly for platform well P&A.

• The higher cost estimates on the Norwegian Continental Shelf could be due to a number of factors, including different regulatory regimes, higher vessel rates, or the maturity of the estimates. Operators have not indicated the AACE cost classification for estimates on the Norwegian Continental Shelf.

Figure 42: Variation in Well Plugging and Abandonment Cost Forecasts on the Norwegian Continental Shelf

30

Average Forecast Cost

Range in Cost Forecasts

25

20

15

10

5

Estimated Cost per Well (£ Million - 2015 Money)

0

Platform Well P&A

Subsea Well P&A

Source: Oil & Gas UK

Well P&A

2016 Survey Average

Platform wells Subsea wells

£10 million £16.1 million

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