Decommissioning Index

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Conclusions Public perception of the appropriateness of how the oil and gas industry applies itself to the decommissioning of structures at the end of productive life will influence the legislative requirements to which it is obliged to comply. This, in turn, drives the technical solutions available and the commercial consequences. The position today is a consequence of the issues of the past and it is important that the industry builds an improved licence to operate in the future from a robust and transparent response to external concerns that generates public confidence. Because of variable commercial factors, especially oil price, the oil and gas business is dynamic and decommissioning plans are very fluid. Continued investment extends productive asset life, maintaining economic activity but continually adjusting decommissioning forecasts. This uncertainty adversely affects the market place which provides the contractor workforce and technological capability needed to deliver cost effective decommissioning programmes. Another challenge will be how well the industry manages any legacy issues resulting from its implemented decommissioning programmes. It is likely that most structures will be removed and the final ‘footprint’ will be small, but anything that remains needs to have a minimum impact on the environment and other users of the sea. Ideally the economic legacy resulting from this industry’s successes and the management schemes put in place for any sea-bed residue will satisfy public expectations and leave a net positive legacy when the industry moves on from UK Waters.