North Sea operators not moving fast enough with well decommissioning

DESPITE a record number of well decommissions in the North Sea in 2025, “activity needs to increase,” according to the industry regulator.

The North Sea Transition Authority (NSTA) has revealed several updates on well decommissioning in the region, with operators having spent a record £2.6bn ($35bn) on decommissioning 257 wells and abandoning 114 last year. This is up from work on 238 wells and the abandonment of 103 in 2024.

However, the regulator has warned that operators still have 500 wells in their backlog that are awaiting abandonment, on top of an additional 1,000 wells due for decommissioning in the next five years.

Dawn Robertson, global oil and gas director at Bureau Veritas, said: “Globally, operators are "reassessing everything from an energy security and energy sovereignty perspective" due to geopolitical unrest, and are increasingly attracted to life extensions rather than decommissioning by default.”

In reaction to the report, NSTA and 17 North Sea operators – including INEOS Energy Europe, Shell and Equinor’s Adura business, and Eni UK – have signed a charter to work together and accelerate well decommissioning.

The Wellhead severance charter is aimed at reducing the well decommissioning backlog and reducing the cost and time spent on the work.

With the charter, NSTA has proposed a switch in process from using rigs to plug wells to making vessels do more of the heavy lifting. The regulator says this switch could reduce costs and emissions for operators.

Pauline Innes, the NSTA supply chain and decommissioning director, said: “This initiative has the potential to be a win-win-win for operators, suppliers and taxpayers.

“By collaborating, we can tackle the backlog, lower the cost of well decommissioning, protect the marine environment and stimulate the offshore service sector.”

With the current backlog, the cost of remaining decommissioning activity stands at a staggering £43.4bn, due partially to “geopolitical instability” and competition over supply chain resources.