Oil & Gas UK Decommissioning Insight 2016 UK and …...Onshore Recycling and Disposal ......

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Oil & Gas UK Decommissioning Insight 2016 UK and Norwegian Continental Shelf

Karis Vieira

Business Adviser, Upstream Policy Team

Agenda

2

Background

Activity Forecast – UK and Norwegian Continental Shelves

Well P&A

Topside & Substructure Removal

Pipeline Decommissioning

Onshore Recycling and Disposal

Expenditure Overview

Forecast Unit Costs

Conclusions and Next Steps

Decommissioning Insight Background

3

Established 2010 in the

UK

Aggregated and

anonymised data

10-year forecasts

Improved annually

4

Agenda

5

Background

Activity Forecast – UK and Norwegian Continental Shelves

Well P&A

Topside & Substructure Removal

Pipeline Decommissioning

Onshore Recycling and Disposal

Expenditure Overview

Forecast Unit Costs

Conclusions and Next Steps

Well Plugging and Abandonment

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1,832 wells 25% of well stock 644 wells – CNS 362 wells – NCS

Topside Removal

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109 platforms 652,000 tonnes 527 topside modules

Substructure Removal

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316, 272 tonnes 100 substructures

Topside Removal to be contracted – SNS and Irish Sea

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83 topside modules 67 platforms 57 (85%) to be contracted

Pipeline Decommissioning

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close to 7,500 km 17% of total network 850 pipelines

Onshore Recycling and Final Disposal

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close to 1.1 million tonnes 34% - CNS 33% - NNS and WoS 18% - NCS 15% - SNS and Irish Sea

Agenda

12

Background

Activity Forecast – UK and Norwegian Continental Shelves

Well P&A

Topside & Substructure Removal

Pipeline Decommissioning

Onshore Recycling and Disposal

Expenditure Overview

Forecast Unit Costs

Conclusions and Next Steps

UKCS Forecast Expenditure

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£17.6 billion (2016-2025) 53%- CNS 47% - Well P&A £1.1 billion in 2015

Agenda

14

Background

Activity Forecast – UK and Norwegian Continental Shelves

Well P&A

Topside & Substructure Removal

Pipeline Decommissioning

Onshore Recycling and Disposal

Expenditure Overview

Forecast Unit Costs

Conclusions and Next Steps

Average Forecast Well P&A Costs

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Agenda

16

Background

Activity Forecast – UK and Norwegian Continental Shelves

Well P&A

Topside & Substructure Removal

Pipeline Decommissioning

Onshore Recycling and Disposal

Expenditure Overview

Forecast Unit Costs

Conclusions and Next Steps

Conclusions and Next Steps

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Providing greater market visibility enables operators and the supply chain to effectively plan for decommissioning.

Operators are not forecasting a rush to decommission.

Opportunity exists for a competitive supply chain.

Scope exists to expand and improve report

– Denmark and the Netherlands?

– Actuals

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