Decom conference will focus on reducing costs

Scotland’s energy minister will launch the annual Offshore Decommissioning Conference in St Andrews today.

Paul Wheelhouse said the event was the highlight of the decommissioning sector’s calendar and that the government would continue to support the industry.

More than 450 delegates are expected to attend the twoday conference at the Fairmont Hotel, organised by industry bodies Decom North Sea and Oil and Gas UK.

Speakers and guests will discuss initiatives aimed at helping the industry reduce the cost of decommissioning work.

In June 2017, the Oil and Gas Authority (OGA) revealed it would cost £59.7 billion to dismantle the UK North Sea and set the goal of reducing the figure by at least 35%.

This year, the OGA said the total has dropped to £55.7bn on a like-for-like basis and praised companies for rising to the challenge.

The UK taxpayer is expected to have to foot a sizeable chunk of the bill due to the availability of decommissioning tax relief. Oil companies build up credits on the taxes they pay during the production life of a field.

They can then use those credits to offset decommissioning costs once the well runs dry.

In August, Mr Wheelhouse pledged a further £5m for the third round of the Decommissioning Challenge Fund.

Mr Wheelhouse said: “I am delighted to be launching the decommissioning conference in St Andrews.

“I can see from those attending and those leading the sessions that it is going to be a stimulating and productive couple of days.

“Events such as this conference are essential to bring the industry together to share expertise, to bring about new partnerships, and to foster collaboration.

“I am pleased to say the development of capability in Scotland is truly outstanding and the Scottish Government will continue to work to support companies and infrastructure projects.”