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Growing market for decommissioning in Norway evident from Oil & Gas UK forecast

17 February 2016

Norway’s decommissioning market has the potential to be the second largest in the North Sea after the UK Continental Shelf, according to Oil & Gas UK’s first Norwegian Continental Shelf Decommissioning Insight report, which provides a forecast for the region over the next decade. The publication was launched on February 16 at the Norwegian Petroleum Society’s North Sea Decommissioning conference in Oslo.

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Oonagh Werngren, Oil & Gas UK’s operations director, said: “While the Norwegian oil and gas industry is less mature  than the UK sector and decommissioning activity is in its infancy, the report shows there are 12 concrete facilities, 19 floating steel facilities, 88 steel facilities and nearly 350 subsea systems in place, most of which will eventually require decommissioning. An estimated 3,000 wells will also need to be plugged and abandoned.

"Oil & Gas UK has worked together with the five key operators on the Norwegian Continental Shelf to analyse data that reveals there will be twenty three decommissioning projects, ranging from small subsea tie-backs to full-scale integrated platform removals, between 2015 and 2024. 

With the Norwegian Petroleum Directorate estimating that decommissioning expenditure during this period could reach NOK 160 billion (£12.5 billion), the activity represents a significant emerging business in the sector."

The Norwegian Decommissioning Insight is the latest in a series of documents Oil & Gas UK has published to help the industry prepare for forthcoming decommissioning projects and follows the publication of the latest annual UK Decommissioning Insight in 2015.

"While decommissioning activities are steadily growing, the industry’s efforts are focused on maintaining offshore production in the North Sea for as long as it’s safe and economically possible to do. To sustain the health of the sector, we must help an efficient decommissioning market emerge as part of, and alongside, the industry’s continued and sustained programme of capital investment in new developments," Werngren said.

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