Decommissioning: the UK's US$66 billion headache

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about subscriptions

Already have subscription? Sign In

Further information

Contact us

Submit your details to receive further information about this report.

  • An error has occurred while getting captcha image
For details on how your data is used and stored, see our Privacy Notice.

Report summary

Decommissioning is arguably the single biggest issue in the minds of those interested in UK oil and gas right now, weighing on operators, oilfield services companies, prospective asset buyers and sellers. In total, Wood Mackenzie estimates future decommissioning spend from 2017 onwards at £53 billion (US$66 billion, 2016 terms) with £11 billion (US$19 billion) expected to be spent over the next five years. There are a number of uncertainties surrounding this market, from fundamental questions such as how much will it cost, when will it happen, through to what happens if someone defaults on their liabilities. There are, mercifully, some certainties in the decommissioning sector. The UK has stringent regulations that set out the obligations of what needs to be removed, how to handle companies defaulting on obligations and decommissioning relief deeds (DRD) which guarantee the rate of tax relief.

What's included

This report contains

  • Document

    Decommissioning: the UK’s $66 billion headache

    PDF 283.59 KB

  • Document

    Decommissioning: the UK’s $66 billion headache

    ZIP 398.28 KB

  • Document

    UKCS Decommissioning tax relief.xls

    XLS 229.50 KB

Table of contents

Tables and charts

This report includes 3 images and tables including:


  • Tax receipts 2009 - 2016
  • UK plc total decommissioning spend vs tax relief
  • Future UK abandonment tax relief (top 20 companies)

Questions about this report?

    • Europe:
      +44 131 243 4699
    • Americas:
      +1 713 470 1900
    • Asia Pacific:
      +61 2 8224 8898