A global consulting firm has created a “roadmap” for North Sea decommissioning, as operators become “seriously concerned” over its costs.
Boston Consulting Group (BSG) has developed the checklist for oil companies as the Oil and Gas Authority (OGA), seeks to reduce decom costs by 35% to a maximum of £39billion or less.
The consultants said there is “still a lot of space” to improve on decommissioning techniques and their six “levers” showcase what’s being done by leading operators in the North Sea and Gulf of Mexico.
It comes as the majority of firms are “uncertain” of their decom costs, and “have not yet demonstrated” that they are ready to translate their ambitions to actual reductions, according to BSG.
Philip Whittaker, one of the report’s authors, said that the overall decommissioning bill is less important than having a structure to overcome the challenge.