Outlook for the UKCS in 2005

New Developments

27 projects were given development approval in 2004, double the number in 2003. They consisted of 18 new field developments (12 liquids and 6 gas) and 9 incremental projects on existing fields (all liquids).

14 new fields were brought into production in 2004, comprising 8 subsea developments, 4 new platforms and 2 extended reach drilling developments. Figure 35 summarizes the new field developments that operators expect to bring onstream in 2005 and 2006. They are predominantly subsea developments and located in the Southern and Central North Sea.

Figure 35: Projected UKCS Field Developments 2005/2006

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Decommissioning

Industry continues to extend the economic life of much of the UKCS infrastructure through success in attracting incremental and new field developments. Figure 36 shows the projected timing of decommissioning of facilities in the UKCS over the next few decades based on existing plans. Total decommissioning costs on the UKCS range up to £15 – 19 billion based on DTI estimates. Industry is working with all stakeholders to extend the life of existing facilities which could delay commissions by 10-15 years from that shown in the figure.

Figure 36: UKCS Decommissioning Profile 2000 - 2030