Norway’s decommissioning market has the potential to be the second largest in the North Sea – after the estimated £47 billion UK market.
Oonagh Werngren, Oil & Gas UK operations director, said that while the Norwegian oil and gas industry is ‘less mature’ than the UK sector and decommissioning activity is in its infancy, 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.
She said: “We have worked together with the five key operators in the Norwegian North Sea to analyse data that reveals there will be 23 decommissioning projects, ranging from small subsea tie-backs to full-scale integrated platform removals, between 2015 and 2024.
“With the Norwegian Petroleum Directorate (NPD) estimating that decommissioning expenditure during this period could reach £12.5 billion, this represents a significant emerging business in the sector.”