No silver bullet to cut decommissioning costs
Tax breaks, new lifting vessels and cheap oil will help companies scrap their ageing North Sea infrastructure, but experts say there is no ideal solution.
The super-lift vessel Pioneering Spirit under construction in Rotterdam. (Allseas)
The North Sea is about to experience a boom in decommissioning old oil and gas platforms even as major hydrocarbon companies are seeking new ways to cut costs.
Although spending remains an issue, consistently low oil prices and a generous tax break from the UK government – which will provide relief on 75% of the costs of decommissioning old fields – are expected to trigger an unprecedented amount of decommissioning activity starting this year. It will be the first drive to tackle heavyweight platforms of the type used in the North Sea.