North Sea clean-up costs ‘likely to double’

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The UK government has under-estimated the country’s North Sea clean-up costs, which may double the expected price of decommissioning oil and gas.
LONDON, 2 May, 2018 – The UK’s North Sea clean-up costs – the price to be paid for decommissioning its oil and gas industry – will probably more than double, a British group says.
It says British children will face a bill for decommissioning the North Sea fossil fuel industry that is likely to be double the government’s estimate – £80bn, not the official target of £39bn.
The report’s authors identify three main reasons which they think explain why the industry may double its costs.
Risky assumptionThe first is that the UK government’s Oil and Gas Authority (OGA) uses something called a P50 figure in its 2017 Cost Estimate Report for North Sea decommissioning.
Source: North Sea clean-up costs ‘likely to double’