UK North Sea Decommissioning Hits Record £2.6 Billion in 2025 as Well Backlog Persists

The North Sea Transition Authority (NSTA) reported that decommissioning spending across the UK Continental Shelf (UKCS) reached a record £2.6 billion in 2025, up from £2.4 billion the prior year. This marks the highest annual expenditure to date, driven by increased activity on wells, platforms, and subsea infrastructure.

Well decommissioning accounted for the largest share, with operators spending approximately £1.3 billion on this activity alone. Work was completed on more than 250 wells, and over 100 reached final abandonment status. However, a backlog of roughly 500 wells awaiting final abandonment remains, prompting the NSTA to urge faster progress to meet regulatory timelines and sustain supply chain capacity.

Forecasts indicate that nearly half of remaining decommissioning costs will be incurred by 2032, with overall estimates for completing the programme standing at around £43.4-44 billion. Well plugging and abandonment is expected to comprise about half of expenditures through that period. Decommissioning spending is projected to surpass new capital expenditure (capex) from 2029 onward as the basin matures.

The NSTA's latest update emphasizes the need for accelerated well closures, with over 1,000 additional wells forecast for decommissioning in the next five years. Industry groups and operators have begun supporting initiatives like a well decommissioning charter to streamline processes and reduce costs.