Wood Mac: UKCS Decommissioning Activity, Spend Set to Rise

Around 140 fields could cease production in the UK Continental Shelf over the next five years, resulting in a ramp-up of decommissioning activity and spend, according to a new report from Wood Mackenzie.

The research firm stated that a high oil price has enabled operators to extend field life and delay decommissioning on the UKCS, but warned that the current low oil price will lead to a change in behavior. Wood Mackenzie forecasts that around 140 UKCS fields will cease over the next five years, even if oil prices return to $85 per barrel.

Fiona Legate, UK upstream research analyst for Wood Mackenzie, commented in a Wood Mackenzie statement:

"Seventeen fields are expected to be sanctioned over the next five years. In the current price environment there is a risk projects may be cancelled or delayed. We could start to see a shift away from work in new developments to decommissioning projects…We expect around £54 billion [$82 billion]…will be spent on decommissioning on the UKCS and anticipate it to be completed in the early 2060s. Decommissioning spend is expected to increase by over 50 percent by 2019 and will overtake development spend in the same year.”



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  Scottish Government Reveals New Subsea... (Jan 20)
 -  SOFF Secures Services Contract for Jan... (Jan 20)
 -  NPD Grants Lundin Permit for Appraisal... (Jan 20)
 -  Lion: AMT-1 Well Abandoned After Stuck... (Jan 20)
 -  Unite: Workers 'Deeply Unhappy' About ... (Jan 20)


Most Popular Articles

From the Career Center
Jobs that may interest you
Rockies Area Operations Manager
Expertise: Mud Engineer / Drilling Fluids|Well Servicing & Testing
Location: Denver, CO
 
Drilling Chokes Operator
Expertise: Field Service Tech|Well Servicing & Testing
Location: Odessa, TX
 
CFO/ Senior Financial Manager
Expertise: Accounting|Financial Analyst
Location: Carrizo Springs, TX
 
search for more jobs

Brent Crude Oil : $55.49/BBL 2.45%
Light Crude Oil : $52.42/BBL 2.04%
Natural Gas : $3.2/MMBtu 5.04%
Updated in last 24 hours