North Sea operators are ‘running out of time’ to plug old oil wells

North Sea operators have been warned that if they continue to delay the decomination of oil and gas wells, they can be fined.

Industry Regulatory North Sea Transition Authority (NSTA) stated that the firms were “running out of time” to plug to deal with a backlog of over 500 wells.

Cost – Estimated at £ 41BN – is shared between the private sector and the taxpayer. It said that the cost of forward-ups will be 4BN £ 4BN.

Offshore Energy UK said that “policy instability” in the industry had created uncertainty, but said the region was still committed to decomming.

When an oil well comes to the end of his life, it is the responsibility of his operator to permanently decimation.

The NSTA began an investigation after identifying hundreds, which missed plugging the deadline.

It said that any delay in the supply chain is delayed by rig operators and others to work elsewhere to take their ships out of the North Sea.

The regulator said it would increase the cost in the long run.

If the backlog is not addressed, the NSTA said that decompositions may have more than 1,000 additional wells due to decominations by the end of the decade.

The Director of Paline Inse, NSTA’s supply chain and decomitioning urged the operators to work immediately.

He said: “Stark reality is that operators are running out of time to get caught up with backlogs as more contractors consider taking their rigs abroad, which harms the demand for supply chain and harm the ability to remain competitive.”

He said that the NSTA was ready to help the operators when necessary, but would be “difficult” on those who are constantly delayed.

In 2024, only 103 wells were decrected in the final abandonment stage, in which 223 wells were worked with some forms of work.

But 300 needs to be fully commissioned every year if the backlog is to be cleaned.

Industry body Oeuk said that businesses were actively advancing their decomization obligations, but it was a complex venture.

Decamping manager Ricky Thomson said: “In the environmental assessment process, policy volatility, including energy value levy and stop, has introduced significant uncertainty for the region, resulting in the delay and cost of the project.

“The region is working with the government to provide a steady regulator and fiscal structure to provide safe, efficient decomitioning for the UK economy, environment and long -term energy.”