Wells

Well plug and abandonment (P&A) activity represents ~45% of projected total decommissioning costs and is a uniquely technically demanding discipline.

Well P&A fits into decommissioning projects in various ways as P&A may be undertaken before, at or after cessation of production.

We expect well P&A to be undertaken in a cost-efficient, competent and fit-for-purpose manner that meets current regulations and industry guidelines. There are approximately 3,650 development wells on the UKCS to be plugged and abandoned as well as many partially suspended or partially abandoned wells that require final abandonment.

Wells P&A is covered by several regulations administered by the HSE and guided by Oil & Gas UK guidance. Based on the current number of wells (2015) the estimated cost pf P&A is c.£19 billion. The industry has challenged itself with finding and delivering a 35% reduction in this cost. Based on Oil & Gas UK's Insight Report 2015, cost targets for all well types have been defined.                                                                     

Oil & Gas UK
Insight survey 2015

2015 forecast costs
£m / well

Less 35% this becomes
£m / well

C&NNS PL wells

4.1

2.6

C&NNS E&A wells

7.8

5.1

C&NNS Subsea

9.9

6.4

SNS / IS platform

3.0

2.0

SNS / IS SS E&A wells

8.8

5.7

CSNS / IS wells

9.6

6.2

 

Assisting industry in achieving this £6.65bn target saving will be one of our key priorities.

Related links