Sharp Rise Seen in North Sea Decommissioning

Press Release
Wednesday, March 21, 2012

Decom North Sea (DNS), the organization which represents the North Sea’s oil and gas decommissioning industry, has welcomed changes in the budget which will boost the sector, leading to new jobs and investment in new equipment.
 
With annual decommissioning expenditure in the North Sea forecast to top £1billion within a few years and a total of about £35billion due to be spent over the next 20 to 30 years, DNS had called for the budget to provide long-term certainty. The forum has around 200 members, drawn from across the full spectrum of the industry, including operators and contractors. 
 
The Government announced it will introduce a package of oil and gas measures to secure billions of pounds of additional investment in the UK Continental Shelf, which includes a contractual approach to offer long-term certainty on decommissioning relief.
 
“The announcement has provided a set level of relief for operators, which will assist the whole industry - and particularly the smaller breed of operators working in the North Sea - and will encourage more asset sales with prospective buyers now being assured of Government support when the assets reach the decommissioning phase,” said DNS Chief Executive Brian Nixon. “We believe the budget will lead to operators being able to move forward with their decommissioning plans, which will in turn help to reassure the hundreds of supply chain companies and encourage them to consider investment in new equipment or tooling or to attract new staff.
 
Expenditure levels are forecast to rise steadily, from a current level of about £500million to over £1billion per annum within the next two to three years, perhaps reaching as many as 10 decommissioning projects each year. 
 
This is an increase on initial projections, which put the cost of decommissioning North Sea oil and gas facilities at between £24-30 billion within the same period to 2040 – and there is every chance the figure could rise again in future. When Norwegian, Danish and Dutch oil & gas facilities are included, the figure is expected to double.
 
Activity will ramp up in the coming years, requiring significant investment by the supply chain, and significant expenditure by operators and the Government, to ultimately remove more than 600 installations and associated infrastructure, around 5000 wells and close to 10,000km of pipelines.
 
“There are huge business opportunities for contractors, service specialists, equipment providers, technology developers, consultants and professional service companies from around the North Sea,” Nixon added.
 

 

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Aberdeen Harbour Installs Siklu Security Network

Aberdeen Harbour has extended its security solutions coverage using high-capacity backhaul from Siklu, the market leader in millimeter wave backhaul informs the Israel-based tech firm.

Chariot Oil & Gas 1H 2014 Interim Results

Chariot Oil & Gas Announce Interim Results for 1H 2014 Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, today announces

Salamander to Start Drilling in G4/50, Gulf of Thailand

Salamander announces that its Environmental Impact Assessment (“EIA”) for exploration drilling in the G4/50 licence, Greater Bualuang area, Gulf of Thailand, has been granted conditional approval.

Energy

Chariot Oil & Gas 1H 2014 Interim Results

Chariot Oil & Gas Announce Interim Results for 1H 2014 Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, today announces

Salamander to Start Drilling in G4/50, Gulf of Thailand

Salamander announces that its Environmental Impact Assessment (“EIA”) for exploration drilling in the G4/50 licence, Greater Bualuang area, Gulf of Thailand, has been granted conditional approval.

Inchcape Shipping Celebrates 25th Anniversary of ISS Greece

Inchcape Shipping Services (ISS), the world’s leading maritime services provider, has this month celebrated the 25th anniversary of its operations in Greece

News

BMT Nigel Gee To Launch Project L3 at Monaco Yacht Show

BMT Nigel Gee, a subsidiary of the BMT Group, will be launching its latest innovative design, ‘Project L3’ at the Monaco Yacht Show. Building on Nigel Gee’s

Naming of M/V “SITC SHANDONG” at CSBC Shipyard

The Naming Ceremony of M/V “SITC SHANDONG” was held yesterday in Keelung Factory of CSBC Corporation, Taiwan, by SITC International Holdings Co., Ltd. (SITC International) and CSBC Corporation,

Hiab's State-of-the-art Factory Opens in Poland

Hiab, part of Cargotec, celebrates today the official opening of its new state-of-the-art multi-assembly unit (MAU) in Stargard Szczecinski, Poland. The development

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1743 sec (6 req/sec)