Decommissioning Insight 2016 - Oil & Gas UK

7.2 Facilities Making Safe (UK Continental Shelf Only) The scope of work associated with ‘making safe’ is believed to be broadly similar across different platform types. Although activity will typically take longer on larger structures, the fixed costs will be similar, increasing the cost per tonne forecasts for smaller, lighter structures commonly found in the southern North Sea and Irish Sea. Many of the installations in the southern North Sea are smaller NUIs. NUIs require transport by helicopter or an accommodation vessel for a team to carry out ‘making safe’ activities, adding further cost.

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Expenditure at the lower end of the range is in line with those seen in the central and northern North Sea and �est of Shetland areas and is likely to be associated with larger, manned platforms.

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• The average cost per tonne for ‘making safe’ is £1,200 in the southern North Sea and Irish Sea compared to just £490 in the central and northern North Sea and �est of Shetland.

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• The range of cost per tonne forecasts has increased significantly since the 2015 report as new projects fall at the high end of the range.

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Figure 43: Historical Variation in the ‘Making Safe’ Cost per Tonne Forecasts for Topsides on the UKCS

3,500

6

3,000

2,500

7

2,000

1,500

8

1,000

500

Estimated Cost per Tonne (£ - 2015 Money)

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0

2015

2016

2015

2016

CNS, NNS, and W o S

SNS and Irish Sea

Source: Oil & Gas UK

Facilities 'Making Safe'

2015 Survey Average

2016 Survey Average

Central and Northern North Sea and West of Shetland Southern North Sea and Irish Sea

£440 per tonne

£490 per tonne

£990 per tonne

£1,200 per tonne

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