UK offshore decommissioning costs decreasing, report finds

Offshore staff

ABERDEEN, UK – Britain’s Oil & Gas Authority (OGA) has lowered its estimate of decommissioning costs for oil and gas infrastructure on the UK continental shelf (UKCS).

The ‘UKCS Decommissioning - 2018 Cost Estimate Report’ outlines progress by industry and the UK government to date on cutting expenditure to less than £39 billion ($51 billion) in 2016 prices.

This covers all current and planned future UK offshore oil and gas infrastructure.

Last year the OGA estimated totalUKCS decommissioning costs from 2017 onwards at £59.7 billion ($78.2 billion) in 2016 prices.

Despite including more assets and infrastructure than the previous year, the latest report suggests the total for 2018 onwards is down to £58 billion ($76 billion) in 2017 prices.

06/28/2018