By Angelina Rascouet

(Bloomberg) — The price of dismantling oil manufacturing amenities within the U.Okay. North Sea over the subsequent decade might be greater than beforehand forecast as extra fields are scheduled to halt manufacturing, in keeping with a gaggle representing the British business.

Decommissioning prices will rise to £16.9 billion ($25.7 billion) for the ten years to 2024, in contrast with final yr’s steerage of £14.6 billion, in keeping with an announcement from Oil & Gas U.Okay. Plugging and abandoning wells makes up the most important a part of the decommissioning prices, at about 46 %, the group mentioned.

“Over the next decade, 79 platforms are forecast for removal” within the U.Okay. continental shelf, Oil & Gas U.Okay. mentioned. That’s about 17 % of the 470 installations that may want decommissioning over the subsequent 30 to 40 years, it mentioned.

Crude has fallen greater than 45 % within the final yr, making some initiatives uneconomic and forcing producers to speed up the closure of fields. As many as 140 fields within the U.Okay. North Sea might shut over the subsequent 5 years, even when oil recovered to $85 a barrel, consultants Wood Mackenzie mentioned in September.

Maersk Oil is searching for approval from the U.Okay. Oil & Gas Authority to cease manufacturing from its North Sea Janice set up subsequent yr, the explorer mentioned in August.

©2015 Bloomberg News

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