The cost of decommissioning the UK’s disused offshore oil and gas infrastructure has been cut by 25% in the past five years, according to the latest estimates published today by the North Sea Transition Authority (NSTA).
The NSTA’s Decommissioning Cost Estimate Report 2022 highlights how the industry has cut costs from the £59.7 billion estimated in 2017. The latest estimate, just published, puts the costs at £44.5 billion, a 25% reduction.
OEUK has already highlighted the scale of the work needed to decommission the UK’s legacy of offshore oil and gas infrastructure. Its recent Decommissioning Insight report described how the industry would be spending £16.6 billion this decade to recover 1.2 million tonnes of disused oil and gas installations and more in following decades.
Ricky Thomson, OEUK’s Decommissioning Manager, commented: “Back in 2017 the North Sea Transition Authority estimated that decommissioning would cost nearly £60 billion.
“Our industry has worked hard to reduce those costs and the latest estimates suggest we have cut them by 25% to £44.5 billion. This is a truly remarkable achievement, especially coming after the pandemic and recent economic volatility.
“We are applying the lessons learnt so we can continue to cut costs and boost safety before the new cost reduction target is announced in 2023.”