UKCS Decommissioning - 2018 Cost Estimate Report
The estimated cost of decommissioning oil and gas infrastructure on the UK Continental Shelf (UKCS) has reduced from last year’s baseline, as detailed in the report 'UKCS Decommissioning - 2018 Cost Estimate Report'
With a shared objective of industry and government to reduce decommissioning costs by at least 35%, the report shows industry’s progress towards the target of safely decommissioning all current and currently planned future offshore oil and gas infrastructure for less than £39 billion (in 2016 prices), and contains benchmarking of operators’ performance in cost reduction.
The updated assessment tracks progress since the OGA estimated a year ago, total UKCS decommissioning costs from 2017 onwards would be £59.7bn (in 2016 prices), and identifies a number of improvements.
The report shows that, in real terms, despite including more assets and infrastructure than the previous year, estimated costs from 2018 onwards are lower, at £58bn in 2017 prices.