A requirement to understand decommissioning costs is becoming more important as operators in maturing basins begin to make decisions on their oldest of assets. While definitive costs are still to be put on paper by operators, the supply chain, and trade associations alike, feel that cost uncertainty may be preventing some decommissioning projects from happening.
Oil & Gas UK’s most recent Decommissioning Insight Survey gave the oil and gas industry the best intelligence and insight into decommissioning costs yet. Between 2015 and 2024, Oil & Gas UK anticipate over £16.9 billion will be spent on decommissioning on the UK Continental Shelf (UKCS) alone – with 45% of the cost going towards the plugging and abandonment of wells. More insight into the costs outlined in the Decommissioning Insight Survey can be seen on our infographic.