Closing UK’s wells could cost £30bn

The main financial opportunities will be for vessel operators and well servicing companies claims the report by Deloitte and Douglas-Westwood. Oliver Sanderson, analyst for Douglas-Westwood and the report’s author, said: […]

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By Tom Gibson

The main financial opportunities will be for vessel operators and well servicing companies claims the report by Deloitte and Douglas-Westwood.

Oliver Sanderson, analyst for Douglas-Westwood and the report’s author, said: “Our research clearly demonstrates that decommissioning activity will ramp up even further over the next decade. On average this represents a $1bn per year prize over the next 30 years. The anticipated level of decommissioning will provide a major business opportunity for the oil services industry – especially vessel operators and well service companies – and could be a significant boost to regional economies.”

The cost has arisen from estimates for closing the 260 gas and oil platforms on the UK continental shelf. The majority of decommissioning activity is predicted to occur between 2017 and 2027.