North Sea decommissioning costs are looming on a scale not seen before anywhere in the world, Mamdouh G. Salameh, visiting professor of energy economics at the ESCP Europe Business School in London, told Rigzone.
“The North Sea is a mature oil and gas province. Output from the two main producers – the United Kingdom and Norway – has peaked and the remaining reserves to be exploited are smaller and/or more technically challenging than those developed in the past, thereby shrinking potential returns,” Salameh said.
“As several fields approach the end of their commercial lives, the decommissioning of offshore platforms and the accompanying bills are looming on a scale not seen before anywhere in the world,” he added.
Last month a Boston Consulting Group representative told Rigzone that North Sea decommissioning will be a “huge and expensive task”.
A BCG report released in March highlighted that an estimated 500 fixed installations must be removed from the North Sea, along with more than 500 subsea production systems. The plugging and abandoning of more than 10,000 wells is also anticipated.
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