Commodities
Home›Commodities›Energy›UK North Sea decommissioning spending hits record in 2…
UK North Sea decommissioning spending hits record in 2025
Well decommissioning is expected to account for about half of forecast UK Continental Shelf costs to 2032, while a backlog of about 500 wells still awaits final abandonment.
Decommissioning activity in the UK North Sea continued to expand in 2025, with industry spending reaching a record level of £2.6 billion, or $3.5 billion, the North Sea Transition Authority said in its annual decommissioning cost and performance update, according to OilPrice.
The NSTA said well decommissioning remains the largest driver of expected UK Continental Shelf decommissioning costs, making up around half of projected spending through 2032. The regulator also highlighted that nearly half of all decommissioning spending is expected to be made by 2032.
The watchdog noted a backlog of about 500 wells awaiting decommissioning and final abandonment, adding that operators need to speed up well closures. It also said that last year operators spent about £1.3 billion, or $1.75 billion, on well decommissioning, covering work on more than 250 wells and over 100 reaching final abandonment status.
Looking ahead, the NSTA forecast that decommissioning expenditure will overtake capital expenditure from 2029 onward as the basin matures and fewer new oil and gas projects receive approvals in recent years. OilPrice said this has been dubbed the regulator’s “decade of decommissioning.”