UK North Sea operators deferring well P&A, report finds

Intervention activity rose last year across northern parts of the UK Continental Shelf (UKCS), according to the North Sea Transition Authority’s (NSTA) 2024 Wells Insight Report.

In the northern North Sea, there were operations on 102 wells in 2023 compared with 82 in 2022. While West of Shetland, nine wells underwent intervention, up from just two the previous year.

However, activity dipped in the Central North Sea, Southern North Sea and the East Irish Sea.

The report also shows the active well stock on the UKCS totaled 2,546 in 2023, down from 2,560 in 2022, with an attendant increase in the number of shut-in wells to 795, representing an all-time high of 31% (up from 742 in 2022). 

According to the NSTA, much of the shut-in wells could be restored to service. But without fresh investment in infrastructure or downhole interventions, many will likely be permanently decommissioned.   

The UK industry only achieved 70% of its planned well decommissioning activities with operators continuing to defer work.

Recently the NSTA opened investigations into missed deadlines as part of its drive to bring down the backlog of wells awaiting plug and abandonment (P&A). One major reason is to help sustain a workload for the supply chain. 

The report also found that last year UK offshore operators drilled 11 exploration wells, two of which were repurposed as producers, and five appraisal wells.

Total expenditure on exploration and appraisal drilling was £571 million ($751 million), more than double the figure for 2022, with half of this sum directed at wells in the Central North Sea and £104 million ($136 million) at wells West of Shetland.

The industry also spent £1.42 billion ($1.87 billion) completing 41 new development wells in 2023, led by activity in the Central North Sea at £678 million ($892 million).