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Major funding for Scottish decommissioning

Some £4mn of funding has been announced to help maximise the economic benefit to Scotland from the decommissioning of North Sea infrastructure, following the success of previous projects. The money from the Decommissioning Challenge Fund is in addition to the £10mn committed in the first three rounds of the fund in a number of locations including Shetland, Kishorn, Aberdeen, Dundee, Leith and Hunterston. It will provide support for projects to enhance the decommissioning market and the supply chain in Scotland.

Announcing the funding, Scotland’s Energy Minister Paul Wheelhouse said: ‘Industry reports tell us that £15.3bn is forecast to be spent in the UKCS [UK Continental Shelf] between 2018–2027, with further market demand beyond this. This represents a great opportunity for Scotland’s supply chain.’

He continued: ‘Scotland’s energy strategy highlights the significant economic opportunities that decommissioning offers, and commits to enhancing our skills and capacity. As the industry continues to build on established capabilities and internationally recognised expertise, such as in well plugging and abandonment techniques, the fund plays a crucial role in supporting the future development of this growing industry.’

Commenting on the funding announcement, Mike Tholen, Upstream Policy Director, Oil & Gas UK,  said: ‘The Decommissioning Challenge Fund underlines the Scottish government’s ongoing commitment to the oil and gas industry as we look to harness decommissioning opportunities at home and indeed, globally. Although decommissioning only accounts for 8% of total spend in the North Sea, it is a growing market in which the UK has first mover advantage. This will not only provide the supply chain with a steady workflow in the UK, but these competitive capabilities are exportable to a global market.’

News Item details


Journal title: Petroleum Review

Countries: Scotland -

Subjects: Banking, finance and investment, Decommissioning

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