In June 2018, the OGA published a report which provides a new cost estimate for offshore oil and gas decommissioning in the UK Continental Shelf (UKCS).
With a shared objective of industry and government to reduce decommissioning costs by at least 35%, the report shows industry’s progress towards the target of safely decommissioning all current and currently planned future offshore oil and gas infrastructure for less than £39 billion (in 2016 prices), and contains benchmarking of operators’ performance in cost reduction.
The updated assessment tracks progress since the OGA estimated a year ago, total UKCS decommissioning costs from 2017 onwards would be £59.7bn (in 2016 prices), and identifies a number of improvements.
The report shows that, in real terms, despite including more assets and infrastructure than the previous year, estimated costs from 2018 onwards are lower, at £58bn in 2017 prices.
An earlier cost esimate was also provided in the UKCS Decommissioning 2017 Cost Estimate Report, published in June 2017.