The Oil and Gas Authority has today (10 May 2021) published its new Decommissioning Strategy stressing that the market could face higher decommissioning costs if action is not taken to improve commercial practices.
The Strategy explains that there is instability in the UK decommissioning market due to fragmented ownership and fluctuations in commodity prices. Because of this instability, there is a risk of decommissioning becoming more costly to the operators, and thus to the Exchequer. If the development of a cost-efficient market is inhibited, opportunities for exporting UK expertise could also be missed.
The new Decommissioning Strategy focuses on four priorities:
– Planning for decommissioning:
– Commercial transformation
– Supporting energy transition from late life into decommissioning
– Technology, processes and guidance
Source: OGA.