Deirdre Michie, chief executive, Oil & Gas UK said:
“The First Minister’s announcement today (8 Feb 17) of a new £5 million fund to support Scottish companies looking to take advantage of decommissioning sector opportunities is encouraging news for the many supply chain companies still struggling in the downturn. Oil & Gas UK looks forwards to engaging with the Scottish Government on how this fund will work once it becomes available in March.
“It’s important that the industry’s focus remains on maximising economic recovery of the UK’s oil and gas while recognising and managing the fact that decommissioning is part of the natural evolution of the UK continental shelf. Our forecasts suggest an average of £1.7 billion will be spent on decommissioning in the UK each year over the next ten years and so it is helpful that we should support the UK supply chain to develop its capacity to compete effectively.
“Looking forwards we must ensure key assets are not decommissioned prematurely and that industry continues to deliver decommissioning in a safe, environmentally sound and cost-effective manner with sufficient early planning and co-ordination to enable the UK supply chain to develop competitive industrial capability.”
Over the next ten years on the UK continental shelf (UKCS), around 95 platforms and over 7,000km of pipelines are planned for decommissioning, along with the plugging of approximately 1,500 wells. The estimated spend over this period is predicted to be at around £17.6 billion (in 2016 money). More figures and information can be found in Oil & Gas UK’s Decommissioning Insight Report 2016.