OEUK’s 2025 Decommissioning Report highlights the resilience, innovation, and commitment of the UK offshore energy industry as it navigates the complex challenges of decommissioning while advancing toward net-zero ambitions. ?
Ricky Thomson, OEUK’s head of decommissioning, said:
'In 2024, annual decommissioning expenditure in the UK Continental Shelf (UKCS) surpassed the threshold of £2 billion for the first time. The industry is demonstrating its resilience by fulfilling its decommissioning obligations and fuelling activity across the UK’s world-class supply chain. Looking ahead, the continued success of the decommissioning sector will depend on its growth being managed strategically alongside sustained capital investment in ongoing oil and gas production rather than replacing it.
'Drawing on decades of North Sea experience, operators and suppliers are collaborating to control costs by developing innovative contracting models to decommission multiple assets using a campaign approach with technical solutions being deployed across all regions of the UKCS. Early engagement with the supply chain and advanced planning tools are helping to make the most of resources and manage peak decommissioning activity, as part of a co-ordinated strategy to strengthen resilience and deliver sector-wide value.
'OEUK’s 2025 Decommissioning Insight report highlights key trends shaping the next decade of decommissioning. Wells remain the largest cost driver, accounting for almost half of forecast expenditure, with projections for nearly 2,000 wells to be decommissioned by 2034. The number of subsea infrastructure removals is also set to escalate, with over 95,000 tonnes of subsea infrastructure including concrete stabilisation mattresses and large subsea manifolds plus 883 kilometres of pipelines planned for removal in the next decade.
'These activities will require innovative approaches, collaboration, and a responsive supply chain to meet the scale and complexity of the task ahead. Decommissioning is not just about removing infrastructure - it’s about creating a legacy of sustainability, innovation, and value for the UK offshore energy sector as the industry evolves. Together, we will secure and reinforce the UK’s position as the global leader in decommissioning.'
Key findings from the report include:
- Decommissioning accounted for 15% of total oil and gas expenditure in the UKCS in 2024, with projections indicating this share may exceed 30% by the end of the decade.
- Current forecasts suggest that decommissioning costs could surpass capital expenditure in oil and gas as early as 2028 if current investment conditions caused by the Energy Profit Levy (EPL), delayed licensing, and market uncertainty This presents significant implications for the operators and supply chain companies.
- Partly attributed to the EPL, there has been an increase in cessation of production decisions being brought forward resulting in higher decommissioning expenditure in the short term.
- In 2024 124 wells were decommissioned, including 78 platform wells, 40 subsea wells, and 6 exploration & appraisal wells. And 4,750 tonnes of subsea infrastructure were removed.
- 10 topsides (38,833 tonnes) and 12 substructures/jackets (10,924 tonnes) were dismantled and removed.?
The OEUK 2025 Decommissioning Report is available here.
Source: OEUK
