The UKCS decommissioning challenge is significant. It will be expensive and span several decades. It must be carried out safely and with care to protect the environment. However decommissioning presents significant opportunities for innovation, cost reduction and development of UK skills and capability.
Estimates of scope, complexity and cost vary but there are over 250 fixed installations, over 250 subsea production systems, over 3,000 pipelines and approximately 3,650 wells, all of which must be decommissioned.
In accordance with the principles of MER UK, there is a need to significantly reduce decommissioning costs through increased efficiency and, more importantly, industry transformation.
Our Decommissioning Strategy summarises current cost projections, outlines efficiency improvements and transformative options that will support the delivery of MER UK and sets out three clear priorities:
1. Cost certainty and reduction
Driving targeted cost efficiency programmes including innovative and regional approaches with extensive and effective knowledge sharing and best practice adoption.
2. Decommissioning delivery capability
Developing an efficient and exportable low-cost and profitable decommissioning delivery capability supported by a competent and efficient supply chain, a selection of business execution models, all designed to appropriately allocate risks, align industry participants and drive down costs.
3. Decommissioning scope, guidance and stakeholder support
Working with BEIS and other relevant parties to identify and evaluate opportunities to further optimise and define parameters for decommissioning scope and improve industry engagement with the regulators.
OGA Decommissioning StrategyDownload PDF | 1439KB | 18 pages