UK North Sea Decommissioning Spending Hits Record £2.6 Billion

The North Sea oil and gas industry in the UK has seen a significant increase in decommissioning spending, with a record-high of £2.6 billion spent in 2025, according to the North Sea Transition Authority (NSTA). This figure represents an increase from the £1.3 billion spent on well decommissioning activity only last year.

The NSTA noted that well decommissioning remains the single largest component of forecast decommissioning expenditure on the UK Continental Shelf (UKCS), accounting for around half of expected costs to 2032.

With a backlog of approximately 500 wells awaiting final abandonment, operators need to speed up work on well closures and abandonment. The NSTA emphasized that activity levels will need to increase significantly if industry is to meet regulatory expectations and provide the certainty of work needed to attract and retain critical supply chain resources.