Web Alert: A new Decommissioning Fund for Scotland
News & Insights 1 March 2017
The Scottish Government has announced a new GBP 5 million fund aimed at supporting Scottish companies take advantage of opportunities in the decommissioning sector.
The Scottish Government has announced a new GBP 5 million fund aimed at supporting Scottish companies take advantage of opportunities in the decommissioning sector. The Decommissioning Challenge Fund is intended to support infrastructure upgrades and innovation in salvage and transport methods at Scotland’s ports and harbours.
It is estimated by Oil and Gas UK that around 95 platforms and over 7000 km of pipeline are planned for decommissioning in the UK continental shelf over the next 10 years. In addition, approximately 1,500 wells are to be plugged. The decommissioning spend over this period is estimated to be around GBP 17.6 billion.
There seems to be a clear move from the Government to support the decommissioning industry in Scotland. Last year, Scottish Enterprise and Highlands and Islands Enterprise launched a Decommissioning Action Plan which is aimed at helping Scotland remain at the forefront of the oil and gas industry and make the most of opportunities where they appear.
Although the main focus is still on maximising recovery in the North Sea, this is good news for this growing industry and comes as Shell plans to apply to begin decommissioning the Brent oil field. The fund will become available in March.