Over the past two years the pace of decommissioning in the UK has steadied as the sector becomes more efficient and gains in expertise. Decommissioning expenditure is expected to run at about £1.5 billion per annum over the next decade, 20 per cent lower than forecast in 2017, presenting the UK with a £15.3bn opportunity over the next decade.
At our second London OGUK Business Breakfast of 2019, Nils Cohrs, Head of Decommissioning at industry regulator The Oil & Gas Authority (OGA) will unveil the findings of the 2019 UKCS Decommissioning Cost Estimate Report. The annual report first published in 2017 tracks the progress towards a collective goal by industry, government and regulators to achieve a reduction of overall decommissioning costs by 35%.
Delegates will hear from Joe Leask, Decommissioning Manager at OGUK who will consider the need to re-use assets for Carbon Capture Usage and Storage (CCUS) and other ways to deliver value to the UK economy from decommissioning.
Our final speaker, Paul Davies, Chair of the CCUS Advisory Group, an industry body formed with BEIS as a member, to develop the commercial structure to underpin the rollout of CCUS in the UK, will speak to this as he discusses the work of the Group in developing innovative market-driven means to fund CCUS, which the Committee on Climate Change has said is critical to achieving a net zero economy. It is expected that BEIS will consult on a potential financial framework for CCUS in the second half of 2019.
The event will conclude with a panel session chaired by Mike Tholen, Upstream Policy Director at OGUK.