Decommissioning the UK’s offshore oil and gas rigs and pipelines will cost more than £31.5 billion according to a new report from Oil & Gas UK.
The trade association looked at the plans of 27 operators in its membership for its annual Decommissioning Insight. It said a total of £10.4 billion will be spent on decommissioning assets on the UK Continental Shelf (UKCS) between 2013 and 2022.
The report is one of several documents by the group highlighting the need to prepare for decommissioning. They include a study of the UK’s pipelines infrastructure and a report on how to better estimate the costs of decommissioning by breaking down the process into phases.
The papers will be launched officially at the annual Offshore Decommissioning Conference in St Andrews.
Last month Oil & Gas UK said it had serious concerns over an expected drop in oil and gas production over the next few years.