Expected spending on decommissioning of oil and gas facilities off the UK is down from earlier forecasts.
In an annual report, the trade group Oil & Gas UK projects spending of £1.5 billion/year during 2018-27, about 20% less than it forecast last year.
Although some of the decline reflects work delayed beyond the 10-year forecast period, OGUK says, “real-world decommissioning experience is also driving new efficiencies.”
This year, decommissioning accounted for about 8% of total spending by the oil and gas industry on the UK Continental Shelf.
Decommissioning is planned for 1,465 wells, about one fifth of the UKCS total, and topsides weighing a total of 605,000 tonnes.
OGUK expects 48% of UK spending on decommissioning to occur in the central North Sea, 30% in the northern North Sea, 15%, in the southern North Sea, and 7% west of the Shetland Islands.
Well plugging and abandonment will account for 49% of the forecast spending. Topsides and substructure removal will account for 13% of total spending, subsea infrastructure removal 11%, the costs of running facilities after production ceases just under 10%, and onshore disposal just over 2%.