“The First Minister’s announcement today 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.”
- ENDS -
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Notes to Editors
- 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.
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