**North Sea Operators Face Pressure to Speed Up Well Decommissioning **
In the ongoing efforts to streamline and secure the cleanup of North Sea oil and gas legacy infrastructure, industry regulators have issued stern warnings to operators. The repetition of delays in well plugging and abandonment (P&A) work is reportedly driving up the estimated decommissioning costs on the UK Continental Shelf. This escalation is attributed to several factors, including increasing competition for rigs from overseas and mounting cost pressures[1][2][3].
To address these concerns, the North Sea Transition Authority (NSTA) has heightened its scrutiny of operators. Members of the NSTA’s Directorate of Regulation have initiated investigations into alleged failures to complete timely P&A in accordance with approved plans. **Pauline Innes, the NSTA’s Supply Chain and Decommissioning Director**, has written to licensees, urging them to accelerate well decommissioning activities. She has warned that any failure to comply will lead to regulatory action[1][2][3].
North Sea operators are legally required to decommission their platforms, pipelines, and wells once they cease production. This complex and expensive process necessitates thorough preparation and planning. Delays in decommissioning not only increase costs but also result in continued power usage and emissions from platforms that are no longer operational. The NSTA emphasizes that such delays are unacceptable and must be rectified promptly to maintain a clean and safe marine environment[1][2][3].
The current estimates suggest that operators could spend around £24 billion on decommissioning between 2023 and 2032, which is an increase of £3 billion from the previous year’s forecast. Despite this substantial investment, operators only achieved 70% of planned well decommissioning activities last year. This performance gap is attributed to some operators deferring their decommissioning plans in the hope that prices will drop in the future. However, such deferrals come at a cost, as they reduce the supply chain’s revenues and its ability to invest in required resources. Rig contractors are increasingly seeking more secure contracts in other regions, which could further drive up prices if left unchecked[1][2][3].
To mitigate these risks and ensure efficient decommissioning processes, the NSTA is spearheading a project to identify which wells will be ready for decommissioning between 2026 and 2030. This initiative aims to assess the supply chain capacity required for the work and promote multi-operator and multi-field decommissioning campaigns. Such an