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

6

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

Topside Removal

7

109 platforms 652,000 tonnes 527 topside modules

Substructure Removal

8

316, 272 tonnes 100 substructures

Topside Removal to be contracted – SNS and Irish Sea

9

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

Pipeline Decommissioning

10

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

Onshore Recycling and Final Disposal

11

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

13

£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

15

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

17

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