ISO 9001 & UKAS Registered, Electron Beam Services in the United Kingdom ISO 9001 & UKAS Registered, Electron Beam Services in the United Kingdom

17/11/16
Trade association for the offshore oil and gas industry Oil & Gas UK has just published its latest Decommissioning Insight 2016 report, predicting that a gradual but steady increase in offshore oil and gas decommissioning in both the UK and in Norway will be seen over the coming decade.

The survey, the first to be carried out of decommissioning markets in both nations, confirms that this is a growing market, despite the fact that oil prices are low and continue to challenge the more mature North Sea offshore assets.

In 2015, total decommissioning expenditure across both countries was £2.1 billion, compared to just under £1.6 billion in 2015. The total amount expected to be spent on the UK Continental Shelf (UKCS) between now and 2025 is £17.6 billion, climbing from the £16.9 billion spent for 2015-2024.

Of the estimated £17.6 billion of decommissioning expenditure on the UKCS over the next ten years, more than 50 per cent of this market will be found in the central North Sea.

“The UK’s supply chain will need to focus on developing a high-quality, cost-efficient and competitive decommissioning capacity to make the most of the opportunity and provide a range of goods and services that can not only be deployed in the UK but also exported overseas,” the association’s upstream policy director Mike Tholen said.

Back in September, Oil & Gas UK’s Economic Report 2016 revealed that in the last 18 months the cost of extracting a barrel of either gas or oil from the UKCS has been cut to almost half its cost since 2014, while the industry also demonstrated a ten per cent hike in production.

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