Oil and gas decommissioning in the North Sea - statistics & facts
With many oil and gas fields nearing depletion and an aging rig fleet to account for, decommissioning activity in the North Sea has become a growing business. No other country in the world is expected to spend as much on oil rig decommissioning as the United Kingdom. The country is forecast to plug more than 2,000 oil wells located offshore, far more than any other country operating in the North Sea.
Countries operating in the North Sea are not alone in their quest for decommissioning. The Asia-Pacific region is also dealing with a growing number of obsolete and inactive oil rigs, with decommissioning expected to pick up in Australia and Southeast Asia.
Platform wells account for majority of decommissions
Next to the UK, Norway and the Netherlands are also expected to reduce the number of their oil production sites in these waters. Platform wells, as the most common well type, will account for most of the dismantling. Decommissioning activity in the Netherlands is expected to see more than 400 oil and gas wells stripped until 2032. Whereas Norway’s decommissions in the North Sea are forecast to clock in at just over 300 units. In the United Kingdom, most decommissioning activity is expected to take place in the Central North Sea, where more than 400 subsea wells and 460 platform wells are set to be demolished. Currently, UK operators decommission more than 100 wells per annum.Decommissioning costs in the UK and abroad
As of 2023, the United Kingdom’s North Sea Transportation Authority has estimated total decommissioning costs to reach 40 billion British pounds, of which 7.6 billion was already spent between 2017 and 2022. It is expected that the decade from 2023 will see the greatest surge in decommissioning activity, with the government hoping to strengthen its acumen in this sector and potentially export its knowledge to other markets.Countries operating in the North Sea are not alone in their quest for decommissioning. The Asia-Pacific region is also dealing with a growing number of obsolete and inactive oil rigs, with decommissioning expected to pick up in Australia and Southeast Asia.
