North Sea Decom Costs on a Scale Not Seen Before Anywhere in the World

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.

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.
Norman Caudle | Apr. 10, 2017
They earned the big money from the original sales of the oil so they should of saved a portion of those proceeds for decommissioning. That is part of the cost of production. They knew that expense was looming and should of prepared for it. Dont expect to place a big, late sur charge to cover the decommissioning on present sales to cover their short sidedness of the past.


Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  Greater Engagement Needed to Keep Oil,... (Aug 24)
 -  Oil, Gas Industry Facing Skills Gap (Aug 11)
 -  Scottish Labour Says Oil, Gas Must Be ... (Jul 7)
 -  Top 10 Highest Paying Oil Jobs for Gra... (Jul 7)
 -  OCA Invites Unions for Fresh Talks (Jul 6)


Most Popular Articles

From the Career Center
Jobs that may interest you
I&C Engineer
Expertise: Instrument & Controls Engineer
Location: Borger, TX
 
Chemist I
Expertise: Chemist
Location: Deer Park, TX
 
Automation Engineering Manager
Expertise: Electrical Engineering|Engineering Manager
Location: Houston, TX
 
search for more jobs

Brent Crude Oil : $56.86/BBL 0.76%
Light Crude Oil : $50.66/BBL 0.21%
Natural Gas : $2.959/MMBtu 0.30%
Updated in last 24 hours