The North Sea Transition Authority (NSTA) published its latest UKCS Decommissioning Cost and Performance Update on 13 August 2026.
It shows decommissioning remained a major activity across the UK Continental Shelf (UKCS) in 2025, with industry spending reaching a record £2.6 billion, reflecting continued progress in the decommissioning of wells, platforms and subsea infrastructure. Operators carried out decommissioning work on more wells than in the previous year, while topside and infrastructure removal activity also increased, demonstrating a continued commitment to meeting regulatory obligations and delivering safe and responsible decommissioning.
Despite this record level of expenditure, the estimated cost of completing the remaining UKCS decommissioning programme has reduced only marginally to £43.4 billion. While operators and the supply chain continue to pursue efficiencies, progress has been offset by inflationary pressures, market uncertainty, growing competition for specialist offshore resources and increasing demand from other energy sectors.
The period to 2032 remains a critical phase for UKCS decommissioning. Around £21 billion, almost half of the remaining forecast expenditure, is expected to be incurred during this period. Decisions taken now by operators, contractors and regulators will have a significant influence on the overall cost and efficiency of the programme, as well as the long-term competitiveness of the UK decommissioning sector.
Encouragingly, industry continues to demonstrate positive behaviours that support cost-effective decommissioning. Operators are increasing collaboration with the supply chain, exploring innovative commercial arrangements, trialling and adopting new technologies and establishing longer-term contracting strategies. In addition, 71% of the value of decommissioning contracts awarded during 2025 was secured by UK-based organisations, exceeding the ambitions set out in the North Sea Transition Deal and helping sustain the domestic capability required to deliver future activity.
Well decommissioning remains the single largest component of forecast UKCS decommissioning expenditure, accounting for around half of expected costs to 2032. In 2025, operators spent approximately £1.3 billion on well decommissioning activity, with work undertaken on more than 250 wells and over 100 reaching final abandonment status. While this represents an increase in activity, a backlog of approximately 500 wells awaiting final abandonment remains. With more than 1,000 additional wells forecast to be decommissioned over the next five years, 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.
The NSTA continues to support and challenge industry to improve performance. Alongside the use of regulatory powers where required, the NSTA is working with operators and the supply chain to improve visibility of future activity, encourage collaboration, accelerate the deployment of new technologies and develop more efficient approaches to well decommissioning. A new initiative focused on streamlining wellhead severance and removal activity aims to reduce costs, increase efficiency and release valuable rig capacity for earlier-stage well abandonment work.
The UKCS remains one of the most experienced offshore decommissioning regions in the world. The scale of activity forecast over the coming years presents a significant opportunity for industry to enhance productivity, strengthen the domestic supply chain and reinforce the UK’s position as a global centre of excellence for decommissioning. Realising that opportunity will require sustained collaboration, timely project delivery and a continued focus on cost efficiency across the sector.
Earlier cost estimates were also provided in the:
2025 UKCS Decommissioning Cost and Performance Update, published in July 2025
UKCS Decommissioning 2024 Cost and Performance Update, published in July 2024
UKCS Decommissioning 2023 Cost and Performance Report, published in August 2023
UKCS Decommissioning 2022 Cost Estimate Report, published in August 2022
UKCS Decommissioning 2021 Cost Estimate Report, published in July 2021
UKCS Decommissioning 2020 Cost Estimate Report, published in August 2020
UKCS Decommissioning 2019 Cost Estimate Report, published in July 2019
UKCS Decommissioning 2018 Cost Estimate Report, published in June 2018
UKCS Decommissioning 2017 Cost Estimate Report, published in June 2017